Shares of One MobiKwik Systems Ltd. gained as much as 8% on Tuesday, May 26, after the company received in-principle approval from the Reserve Bank of India to operate as a Payment Aggregator – Physical (PA-P) under the Payment and Settlement Systems Act, 2007. According to the latest exchange filing, the stock climbed 7.50% to hit a day high of ₹205.60, before settling at ₹201.26 with gains of 5.28%. As per the company's BSE filing, the approval enables the company to deepen its offline merchant payments business across India and marks an important milestone in MobiKwik's evolution as a full-stack fintech platform. The stock was trading at ₹201.26, holding on to gains despite being off the day's high. Commenting on the RBI's approval, MobiKwik co-founder, MD and CEO Bipin Preet Singh said that "offline merchant payments are emerging as one of the strongest growth drivers within India's digital economy." He added this is especially true in under-penetrated markets beyond urban India, emphasizing that the PA-P approval strengthens their capacity to scale merchant payments infrastructure nationwide.
Co-founder, MD and CEO Bipin Preet Singh announced that the PA-P approval strengthens the company's ability to scale merchant payments infrastructure across the country and sets up for 10x growth in merchant business by FY28. As reported by the latest exchange filing, the company currently supports a network of 4.9 million merchants through offerings such as UPI QR, Soundbox and EDC machines. The company has identified small businesses, oil & gas outlets and organised retail as key focus segments over the next 18–24 months, with plans to materially expand its market share across each segment. The PA-P license strengthens the company's ability to build a compliant and scalable offline payment infrastructure in partnership with banks. The company aims to significantly ramp up Soundbox and EDC deployments to meet its stated goal of 10x growth in merchant business by FY28.
The company cited industry estimates from Redseer that peg India's offline merchant payments gross merchandise value opportunity at $1.8 trillion to $2 trillion by FY28. According to the latest exchange filing, MobiKwik said offline acquiring offers stronger monetisation opportunities through MDR, subscription and device rental economics compared to consumer payments. Unlike consumer payments that largely operate on zero-MDR rails, offline acquiring offers stronger MDR opportunity, subscription and device rental economics, while also facing relatively lower competitive intensity. The group had earlier received a Payment Aggregator – Online (PA-O) licence through subsidiary Zaakpay around a year ago, strengthening its omnichannel merchant payments capabilities across both online and offline commerce. MobiKwik believes this business creates long-term monetisation opportunities through merchant engagement and utilising transaction data to enable merchant credit distribution.
The stock trades at ₹201.26, representing a 15.33% decline over the last six months, as per the latest exchange filing. In its exchange filing, the company added that the PA-P licence strengthens its ability to build a compliant and scalable offline payment infrastructure in partnership with banks. The approval represents a significant milestone for the fintech company's expansion into the offline merchant payments segment, with the company planning to increase merchant acquisition and improve payment infrastructure, especially in smaller cities and under-served markets. According to the exchange filing, MobiKwik said it is India's largest digital wallet, offering a wide range of payment and financial products, positioning it well for its offline merchant payments expansion strategy.
