Razorpay reportedly scales back offline payments

India-based payments firm Razorpay has reportedly scaled back plans to expand its offline payments business, sources said.

Razorpay’s point-of-sale terminal base is about 600,000 units handling US$10 billion to US$15 billion in annual gross merchandise value, up from roughly 500,000 terminals and about US$10 billion when it bought PoS provider Ezetap in 2022.

The PoS unit may have generated about 2.3 billion rupees (US$23.8 million) in FY25, or roughly 6% of Razorpay’s revenue.

Meanwhile the company processes more than US$180 billion in annual GMV across its business.

The pullback comes as Razorpay prepares for an IPO and focuses on its online payments business, while rivals including Pine Labs, Paytm, and BillDesk continue to build offline capabilities.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Offline payments are turning into a software contest

Rivals like Pine Labs, Paytm, and BillDesk are adding offline payment tools. Pine Labs has also made a bigger shift.
About 71% of Pine Labs revenue now comes from Software-as-a-Service (software as a service (SaaS)) and other technology services, which moves it beyond point-of-sale (PoS) devices 1.
That setup needs less capital spending. Lower hardware and depreciation costs have helped Pine Labs post three straight profitable quarters 2.
The change fits India’s hard PoS economics. Zero-fee Unified Payments Interface (UPI) payments squeeze margins, while low-cost QR codes at 352 million dwarf 8.9 million PoS terminals 3.

Razorpay’s reset marks a new phase for Indian fintech

Razorpay’s pullback looks tied to pre-IPO discipline instead of broad expansion.
Public market investors now favor steady growth with profits, as fintech valuations sit below earlier highs 4.
Razorpay is centering on more profitable online payments. Pine Labs is chasing profit through software infrastructure for large companies and banks worldwide 1.
That split suggests Indian fintech is moving away from market share grabs toward business models that can keep earning ahead of listings 4.