Why Offline Payments Still Matter in India’s Digital Push
While India’s digital payments ecosystem is often associated with online checkouts and UPI apps, a large share of merchant transactions still happen at physical counters. For small retailers, restaurants, and SMBs, reliable in-store payment acceptance remains critical, especially across semi-urban and underserved regions where offline-first commerce dominates.
What the RBI Authorisation Enables
Goa-based payment aggregator InstiFi has received authorisation from the Reserve Bank of India to operate as an offline payment aggregator, effective January 8, 2026. The approval allows the company to offer Point-of-Sale (POS) terminals and Sound Box–enabled static QR payment solutions to merchants across India.
With this licence, InstiFi can now support card-based and digital payment acceptance at physical locations, expanding its services beyond online collections into in-store transactions.
Building a Unified Payments Platform
InstiFi had earlier secured RBI authorisation to operate as a Payment Aggregator – Online on June 3, 2025, after which it went live with merchant onboarding and digital payment services. The offline approval enables the company to offer a unified platform where merchants can manage both online and offline collections under a single compliance framework.
Commenting on the development, Prakash Ravindran, CEO and Director of InstiFi, said the authorisation validates the company’s compliance-first approach and long-term vision to build secure and accessible payment infrastructure for businesses operating across channels.
Who Stands to Benefit
The offline payments licence positions InstiFi to serve small and medium businesses, retailers, and enterprises that rely on physical payment acceptance. This includes merchants in Tier 2 and Tier 3 markets, where POS machines and sound-based payment confirmations play an important role in daily operations.
Evergreen Insight: Hybrid Payments Are Becoming the Norm
As India’s commerce landscape blends online discovery with offline fulfilment, payment aggregators that support both environments are better placed to scale sustainably. Regulatory approvals for offline payments are emerging as a key moat in the competitive fintech landscape.
Founder Takeaway
For fintech founders, InstiFi’s RBI authorisation highlights a clear signal: compliance-led expansion into offline infrastructure remains a strong opportunity as India’s merchant base continues to digitise at the point of sale.
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