PayPal, Worldline Get RBI Approval for Cross-Border Payments: All You Need To Know

Fintech major PayPal Payments, the Indian arm of PayPal Holdings, has received a nod in-principle approval from the Reserve Bank of India to operate as a cross border payment aggregator, according to an official company statement.

The Mumbai-headquartered fin-tech player Worldline ePayments India has also received approval to function as export-import payment aggregator – cross-border (PA-CB E&I). This authorisation enables the companies to facilitate cross-border online transactions.

Cross Border Payments Vertical Gets RBI Push

Reportedly, Ramesh Narasimhan, Chief Executive Officer (CEO) India, Worldline, informed Reserve Bank of India (RBI’s) nod projected the company’s strong compliance record.

Worldline has operated in India for over two decades. The company offers services ranging from acquiring solutions and payment gateways to in-store payments and bill collections. With the new licence, it aims to deepen its role in India’s growing cross-border commerce.

“This authorisation is a significant milestone in our journey. It affirms our long-term commitment to India’s digital payment ecosystem and our focus on providing secure, seamless, and regulated solutions,” he said.

Meanwhile, PayPal said the approval for cross-border payments allows access to fresh avenues  to enhance user experience and with localized product innovation, alongside broadening the fin-tech players payment network for large-scale enterprises, small businesses and freelancers in India.

Last October, the RBI had asked aggregators offering cross-border payments to avail an separate approval. Preceding this, payment firms had been operating an Online Payment Gateway Service Provider (OPGSP) licence.

The cross-border payment business is a massive avenue in this south Asian nation, as result of the high annual rate of remittance. India is considered a key centre for freelancers, and software service firms that handle global clientele.  Now, even non-bank payment companies can serve these business ventures.

According to India's apex bank RBI's norms, entities operating as PA-CB must follow strict guidelines when it comes to the following -customer due diligence, foreign exchange regulations, and settlement timelines. The regulator had introduced the PA-CB framework back  in 2021 to formalise and monitor the ongoing digital cross-border payment flows.