Razorpay POS Gets RBI Approval to Operate as Offline Payment Aggregator

India’s fintech landscape has taken another major step forward as Razorpay POS, the offline payments division of fintech giant Razorpay, has received authorization from the Reserve Bank of India (RBI) to operate as an Offline Payment Aggregator (PA-P). This approval allows Razorpay to expand its in-store payment services and strengthen its position in the country’s rapidly growing digital payments ecosystem.

With this latest authorization, Razorpay now holds all three key RBI licences required to operate across the digital payments value chain.

What is the PA-P (Offline) Licence?

The Payment Aggregator – Physical Point of Sale (PA-P) licence from the RBI permits companies to facilitate offline, in-store digital transactions for merchants. This includes enabling payments through POS machines and other physical devices used at retail counters.

By obtaining the PA-P licence, Razorpay POS is now officially authorized to onboard merchants, process card and digital payments, and manage settlement flows for offline transactions, all while meeting RBI’s regulatory and security standards.

Razorpay Now Holds Three Major RBI Licences

With this development, Razorpay has achieved a significant regulatory milestone. The company now possesses:

• Online Payment Aggregator Licence – for processing digital payments on websites and apps
• Cross-Border Payment Aggregator Licence – granted in December 2025, allowing international transaction processing
• Offline Payment Aggregator (PA-P) Licence – enabling in-store digital payment services

Holding all three licences gives Razorpay a comprehensive presence across online, cross-border, and offline payment segments, making it one of the few fintech firms in India with such broad regulatory approval.

Expansion of In-Store Payment Infrastructure

The PA-P licence will help Razorpay POS significantly expand its offline payment infrastructure. This includes handling high-volume transactions in sectors such as:

• Large retail chains
• Small and medium enterprises (SMEs)
• Restaurants and hospitality businesses
• Local retail stores and service providers

With India witnessing rapid growth in digital adoption even at physical stores, this move positions Razorpay to capture a larger share of the offline digital payments market.

Razorpay POS Hardware Solutions

Razorpay POS already offers a range of payment hardware devices designed to support secure and seamless in-store transactions. These include:

Android Smart POS Devices

Advanced point-of-sale machines that run on Android and support multiple payment modes, including cards, UPI, and wallets.

mPOS (Mobile Point of Sale)

Compact card-swiping devices that can be connected to smartphones or tablets, ideal for small businesses and mobile merchants.

Soundbox Devices

Audio-enabled devices that provide instant payment confirmation for UPI and other digital transactions, improving transparency and trust for merchants.

These devices are built to ensure secure, compliant, and efficient payment processing in line with RBI regulations.

Industry Significance

The RBI’s approval reflects the regulator’s continued focus on strengthening compliance and security in digital payments. For Razorpay, this licence enhances its credibility and allows it to offer end-to-end payment solutions to businesses of all sizes.

As more consumers shift to cashless and contactless payments, especially through UPI and cards, the demand for reliable offline payment infrastructure is rising. Razorpay POS is now better positioned to meet this demand and support India’s transition toward a digitally empowered economy.

Leadership Perspective

Commenting on the development, Shashank Kumar, Managing Director and Co-founder of Razorpay, highlighted the company’s commitment to building a strong and compliant payments ecosystem that serves both online and offline merchants across India.