Shares of One Mobikwik Systems, the parent company of digital wallet platform Mobikwik, experienced a significant surge in Tuesday's afternoon trade on May 26, 2026. The stock climbed nearly 8%, hitting a day high of Rs 205.60, following an announcement that the company secured an in-principle approval for its Payment Aggregator - Physical (PA-P) license from the Reserve Bank of India (RBI).
RBI Approval Boosts Offline Merchant Strategy
The in-principle approval from the RBI is a pivotal development for Mobikwik, enabling the company to substantially deepen its offline merchant payments business throughout India. This milestone reinforces Mobikwik's strategic evolution towards becoming a comprehensive full-stack fintech platform, offering both payment and financial services to consumers and merchants.
Mobikwik currently supports a vast network of 4.9 million merchants through various offerings, including UPI QR codes, Soundbox devices, and Electronic Data Capture (EDC) machines. With the new license, the company aims to aggressively scale its Soundbox and EDC deployments, targeting a tenfold growth in its merchant business by the fiscal year 2028 (FY28).
Strategic Focus and Market Opportunity
The company has identified small businesses, oil & gas outlets, and organized retail as three key strategic focus segments for the next 18-24 months. Mobikwik plans to materially expand its market share within each of these areas, capitalizing on the vast potential of the offline merchant payments sector.
Bipin Preet Singh, Co-founder, MD & CEO of Mobikwik, stated, "Offline merchant payments are emerging as one of the strongest growth drivers within India's digital economy, particularly across under-penetrated markets beyond urban India. This PA-P approval strengthens our ability to scale merchant payments infrastructure across the country and sets us up for 10x growth in merchant business by FY28."
Industry estimates, including those from Redseer, project the merchant payments Gross Merchandise Value (GMV) opportunity in India to reach an impressive $1.8-2 trillion by FY28. Unlike consumer payments, which often operate on zero-MDR (Merchant Discount Rate) rails, offline acquiring presents stronger MDR opportunities, along with potential for subscription and device rental economics. This segment also faces comparatively lower competitive intensity.
Mobikwik believes that expanding its offline business will create long-term monetization opportunities through enhanced merchant engagement and the utilization of transaction data to facilitate merchant credit distribution. This latest approval complements the Payment Aggregator - Online (PA-O) license that its subsidiary, Zaakpay, received approximately a year ago, further strengthening Mobikwik's omnichannel merchant payment capabilities across both online and offline commerce.