Razorpay POS Receives RBI Approval for Offline Payment Aggregator License

Razorpay’s offline payments arm, Razorpay POS, has received approval from the Reserve Bank of India to operate as an offline payment aggregator under the Payment Aggregator-Physical (PA-P) framework, as per PTI report.  

The licence permits the company to process in-store digital payments and settle funds to merchants in line with regulatory requirements. 

Full Suite of Payment Licences 

With this approval, Razorpay now holds three key RBI licences: payment aggregator–online (PA-O), payment aggregator-cross-border (PA-CB), and payment aggregator–physical (PA-P).  

The cross-border licence was secured in December 2025, allowing the firm to facilitate both inward and outward international transactions alongside domestic payments. 

Implications for In-Store Transactions 

The PA-P authorisation allows Razorpay POS to scale its physical point-of-sale infrastructure and handle large transaction volumes.  

The company said the licence would support payments across sectors such as organised retail, consumer services, and small and medium enterprises (SMEs), where card swipes and QR-based payments are widely used. 

Offline Payments Business 

Razorpay entered the offline payments segment through the acquisition of Ezetap in August 2022.  

Its current hardware portfolio includes Android-based smart POS terminals, magnetic stripe POS (mPOS) devices, and soundbox products that provide real-time payment confirmations at merchant outlets. 

Payment Aggregator Framework 

Under RBI rules, a payment aggregator collects payments from customers through digital or physical channels and transfers the funds to merchants as per settlement timelines. 

The PA-P licence covers transactions made at physical counters, including card and QR payments, similar to approvals held by companies such as Paytm and Pine Labs. 

Read More: Razorpay IPO: Digital Payment Giant Invites Merchant Bank Bids; Plans to Raise Upto ₹4,500 Crore! 

Conclusion 

The RBI approval adds offline aggregation to Razorpay’s existing regulatory permissions and expands its operational scope across payment channels, as in-store digital transactions continue to grow in India. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.