Whalesbook
Fintech firm Infibeam Avenues has received final authorization from the Reserve Bank of India (RBI) to operate as an offline payment aggregator. This license permits the company to handle in-store card and QR-based transactions through POS devices, significantly expanding its operational capabilities beyond its existing online payment services.
Infibeam Avenues has been granted the final authorization by the Reserve Bank of India (RBI) to function as an offline payment aggregator. This significant regulatory approval allows the company to officially process and manage in-store payments made via card or QR codes using Point-of-Sale (POS) devices. This authorization will enable Infibeam Avenues to deploy and manage POS machines across various merchant locations under its well-known CCAvenue brand.
The company has been actively strengthening its offline presence, notably with the launch of its SoundBox Max device last year, which supports payments through UPI, cards, and QR codes. Infibeam Avenues already holds an online payment aggregator license, alongside licenses for Prepaid Payment Instrument (PPI) and Bharat Bill Pay, demonstrating a comprehensive suite of payment solutions.
Infibeam Avenues anticipates that this new license will substantially aid in expanding its merchant network as more businesses adopt POS systems for their operations. The company reported processing a substantial INR 8.67 Lakh Crore in transactions across its payments and platform businesses in FY25, serving over 10 million merchants in India and internationally.
This latest approval follows a series of recent regulatory achievements. In October, its subsidiary, IA Fintech, obtained an in-principle Payment Service Provider (PSP) license from the International Financial Services Centres Authority (IFSCA) at GIFT City. This PSP license will empower IA Fintech to offer services like escrow, cross-border money transfers, and merchant acquisition for international clients operating out of GIFT City.
Infibeam Avenues has also been strategically restructuring its business to concentrate more on payments and Artificial Intelligence (AI). Earlier this year, it transferred its e-commerce platform to its subsidiary, Rediff.com, for INR 800 Crore, and raised INR 350 Crore through a rights issue in Q2 FY26 to bolster its AI capabilities. Furthermore, its entity RediffPay secured a Third-Party Application Provider (TPAP) license from the National Payments Corporation of India (NPCI).
Financially, Infibeam Avenues reported strong performance in Q2 FY26. Its consolidated profit after tax grew by 43% year-on-year to INR 67.7 Crore, while its operating revenue surged by 93% to INR 1,964.9 Crore.
Impact
This RBI authorization is a significant positive development for Infibeam Avenues, opening up new avenues for revenue generation and market penetration in the offline retail space. It enhances the company's competitive positioning and is expected to drive future growth, especially as India continues its digital payment adoption journey. The expansion into offline payments complements its existing online services, creating a more robust and integrated offering for merchants.
Rating: 8/10
Difficult Terms Explained:
Offline Payment Aggregator: A company authorized by the central bank to facilitate payments for merchants at physical locations, enabling them to accept electronic payments through devices like POS terminals.
POS devices: Point-of-Sale devices, commonly known as card machines or payment terminals, used by businesses to process card, QR code, or other digital payments.
UPI: Unified Payments Interface, a real-time payment system developed by the National Payments Corporation of India (NPCI) that allows users to transfer money between bank accounts instantly.
QR codes: Quick Response codes, a type of two-dimensional matrix barcode that can be scanned by smartphones to access information or initiate transactions.
Prepaid Payment Instrument (PPI): A financial product that stores money electronically and can be used to make payments for goods and services, such as digital wallets.
Bharat Bill Pay: An integrated bill payment system in India that allows customers to pay their utility bills, school fees, and other recurring bills through a network of agents and online platforms.
In-principle license: A preliminary approval granted by a regulatory authority, indicating that the applicant meets the basic requirements but must fulfill certain conditions before a final license is issued.
Payment Service Provider (PSP): An entity that provides a range of services related to the processing and facilitation of electronic payments, often operating across different jurisdictions.
Escrow services: A legal arrangement where a neutral third party holds funds or assets temporarily until specific conditions of a contract are met, ensuring security for both buyer and seller.
GIFT City: Gujarat International Finance Tec-City, a special economic zone and India's first international financial services center, designed to attract global financial services firms.
Third-Party Application Provider (TPAP): An entity licensed by NPCI to offer services on the UPI platform through its own applications, enabling seamless digital transactions.
Consolidated profit after tax: The total profit earned by a company and its subsidiaries after accounting for all expenses, taxes, and other deductions.
Operating revenue: The income a company generates from its primary business activities before deducting operating expenses.
