MobiKwik is targeting a significant expansion in merchant payments to compete with Pine Labs, alongside launching lending services through its newly acquired non-banking financial company license, following its Q4 FY26 financial results.
- Plans to quintuple offline PoS device deployment by FY28
- Targets 10-20% market share in offline merchant payments
- NBFC license enables faster, independent lending operations
What happened
During the Q4 FY26 earnings call, MobiKwik announced plans to scale its merchant payments business sharply, challenging market leader Pine Labs. The company aims to increase its offline presence by deploying five times more soundboxes and electronic data capture devices over the next two years, targeting a tenfold revenue growth by FY28. Currently serving nearly 5 million merchants across online and offline formats, MobiKwik is focusing on specific offline segments: mom-and-pop stores, oil and gas outlets, and organized retail.
Why it matters
The merchant payments sector provides MobiKwik an opportunity to generate revenue through merchant discount rates (MDR) and device rental fees, unlike zero-MDR consumer payments dominated by UPI. This business model offers healthier margins and lower direct competition, making it an attractive area for diversification. By capturing 10-20% market share in selected merchant categories, MobiKwik looks to establish a strong foothold against established players like Pine Labs, Paytm, and Razorpay.
What to watch next
Key indicators to monitor include MobiKwik’s pace of PoS device deployment and its success in acquiring offline merchants in the identified target segments over the next 18-24 months. Tracking revenue growth and market share shifts in the merchant payments space will reveal how effectively the company can challenge incumbents like Pine Labs in a highly competitive ecosystem.
In the lending segment, observers should follow the transition timeline from the LSP model to the NBFC structure, including the launch of lending products under co-lending partnerships. The company’s ability to leverage the NBFC status for improved credit underwriting and faster product launches will be critical for sustaining growth and enhancing customer retention.