PayPal Payments Secures RBI Approval for Cross-Border Operations

PayPal Payments, representing the Indian subsidiary of PayPal Holdings, has successfully obtained in-principle approval from the Reserve Bank of India (RBI) to function as a cross-border payment aggregator. This approval signifies a pivotal moment in the expansion of digital transactions in India.

Worldline ePayments Joins in Cross-Border Payment Approval

In a related development, Worldline ePayments India has also received a green light from the central bank to operate under the Payment and Settlement Systems Act, 2007. This license allows both companies to facilitate cross-border online transactions, enhancing the import and export of goods and services.

New Opportunities for Local Businesses

According to statements made by PayPal, this approval presents fresh possibilities for localized product innovations and better customer experiences. Furthermore, it provides improved access to PayPal’s extensive global payment network for a variety of sectors, including large enterprises, small businesses, and freelancers throughout India.

Recent Approvals in the Fintech Sector

Earlier in the year, Skydo, a company focused on cross-border payments, received similar in-principle authorization from the RBI to act as a Payment Aggregator-Cross Border (PA-CB) entity. Additionally, BRISKPE, a cross-border payments platform backed by PayU, also secured RBI’s in-principle PA-CB authorisation for exports in March.

Historical Context of Cross-Border Payment Regulations

In October of last year, the RBI mandated that payment aggregators involved in cross-border payments must secure distinct approvals. Prior to this shift, many payment companies operated under an Online Payment Gateway Service Provider (OPGSP) license for nearly a decade.