Razorpay’s offline payments unit, Razorpay POS, has received RBI approval to operate as an offline Payment Aggregator (PA-P), enabling the company to legally facilitate in‑store digital transactions across physical merchant locations in India. The licence strengthens Razorpay’s presence in the country’s expanding payments ecosystem and allows direct onboarding of brick‑and‑mortar merchants under RBI supervision.
Regulatory completeness across payment channels
With the PA‑P licence, Razorpay now holds the three principal RBI approvals required to operate across payment modes in India: online payment aggregation, cross‑border payment aggregation and offline payment aggregation. Together, these authorisations allow the firm to provide end‑to‑end payment solutions for online platforms, physical stores and international transactions.
This regulatory milestone places Razorpay among a limited number of fintech firms in India able to serve businesses across multiple customer touchpoints from a single integrated payments platform, reflecting its emphasis on compliance while scaling product offerings.
Implications for offline merchants
The PA‑P licence enables Razorpay POS to expand its offline merchant network and handle high‑volume, in‑store transactions for enterprises as well as small and medium businesses. Merchants can expect reliable transaction processing, faster settlements and the added confidence of operating within an RBI‑regulated framework.
Razorpay POS currently supplies a range of offline payment hardware and software — including smart POS terminals, mPOS devices, soundboxes and pin‑on‑mobile solutions — that accept UPI, card and contactless payments. The new licence is likely to accelerate adoption of these devices across retail, restaurants and service sectors, especially in urban and semi‑urban markets.
Strengthening omnichannel capabilities
As Indian businesses increasingly pursue omnichannel strategies, the ability to manage online and offline payments seamlessly becomes critical. The RBI approval permits Razorpay to offer a unified payments infrastructure connecting digital storefronts with physical checkout counters, improving transaction visibility and reconciliation for merchants.
For multi‑channel operators, this translates to a more consistent customer experience across touchpoints and operational efficiencies that support scaling across regions and store formats.
Broader impact on the fintech ecosystem
The RBI’s clearance of Razorpay POS underscores the regulator’s push to strengthen governance and stability in India’s payments landscape. Licensed payment aggregators must adhere to stricter compliance requirements on data security, merchant onboarding and settlement processes, which can enhance trust among merchants and consumers.
For Razorpay, the approval paves the way for deeper product innovation in offline payments and supports its longer‑term growth plans as digital payment adoption expands in physical retail across India.
