Razorpay gets approval to offer cross-border payments

Razorpay has received a payment aggregator – cross border (PA–CB) license from the Reserve Bank of India.

The Bengaluru-based fintech firm can now facilitate both inward and outward cross-border payments.

Razorpay offers payment solutions to global and Indian businesses, including platforms such as Airbnb, Agoda, Shopify, Klook, and Hostinger.

With the new license, Razorpay can support Indian businesses accepting payments in over 130 currencies, and enable global companies to accept local payment methods in India without setting up a local entity.

Razorpay provides payment options such as UPI, RuPay, EMIs, netbanking, and other local methods through a single integration.

🔗 Source: Razorpay

🧠 Food for thought

Implications, context, and why it matters.

Reserve Bank of India (RBI) Payment Aggregator Cross Border (PA–CB) framework stays selective

Razorpay joins Amazon Pay and Adyen 1. Cashfree and BillDesk also hold approval 1. RBI says only authorised firms can start operations 2.
The framework replaced the Online Payment Gateway Service Provider (OPGSP) system in October 2023 3. Applicants need ₹15 crore net worth at application 3. Existing providers must hit ₹25 crore by March 31, 2026, while new non-bank firms have until the end of year three after approval 3.
PA–CBs come under RBI oversight and must run Know Your Customer (KYC) checks on merchants 3. For import transactions over ₹2.5 lakh per unit, they also vet the buyer 3.
Razorpay can process cross-border payments up to ₹25 lakh per unit for goods or services 3. This goes beyond the old cap under OPGSP 3.

Global payment platforms can reach India’s ₹10.8 lakh crore e-commerce market with PA–CB partners

Checkout and payment orchestration vendors (software that routes transactions across multiple payment processors and methods) can partner with PA–CB licensees 1. Merchants can offer Indian payment methods without setting up local entities 1.
India’s e-commerce market hit ₹10.8 lakh crore ($125 billion) in 2024 4. Forecasts put it at ₹29.9 lakh crore ($345 billion) by 2030 at 15% compound annual growth rate (CAGR) 4.
PA–CB now allows import of services along with goods 3. SaaS firms and digital service providers can reach Indian buyers under this route 3.
Quick commerce (ultrafast delivery services) is growing at 70–80% CAGR 4. The direct-to-consumer (D2C) market could cross ₹8.7 lakh crore in 2025 4.