PayPal Payments Private Limited, the Indian arm of Nasdaq-listed PayPal Holdings Inc. (PYPL), has secured in-principle approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator for Cross Border Exports (PA-CB-E). This move allows PayPal to continue offering digital payment solutions to Indian merchants conducting global trade, under a regulated framework.
The RBI's approval marks a significant milestone for PayPal, solidifying its role in the growing cross-border payments ecosystem in India. According to Nath Parameshwaran, Senior Director of Government Relations at PayPal India, this regulatory clearance reflects the maturity of India’s financial ecosystem and its commitment to enabling seamless international transactions.
“As India strengthens its position as a global export hub, PayPal is committed to empowering Indian businesses through secure and scalable digital payment platforms,” Parameshwaran added.
India’s merchandise exports reached $73.8 billion in April 2025, underscoring the country’s increasing momentum in global commerce. A large portion of this growth is driven by MSMEs, freelancers, and e-commerce sellers, many of whom rely on platforms like Amazon, Etsy, and eBay to reach international customers.
PayPal has historically served these segments, enabling them to receive payments from buyers across more than 200 countries, helping them grow beyond borders.
Abid Murshed, Head of Sales at PayPal India, emphasized the company’s long-standing role in supporting digital commerce. “PayPal has been innovating through every major shift in global commerce for over 25 years,” he noted. “Our presence in India for more than a decade has allowed small businesses and freelancers to access secure and trusted payment infrastructure.”
Despite winding down its domestic payments business in India in 2021, PayPal has remained focused on outbound cross-border transactions, and this new approval aligns with that core strategy.
PayPal’s regulatory milestone comes amid heightened activity in India’s cross-border payments sector. Several fintech and global players have recently received similar approvals from the RBI, intensifying competition.
On July 22, 2024, Cashfree Payments, a Bengaluru-based fintech firm, was approved to operate as a Payment Aggregator for both Export and Import Cross Border Payments (PA-CB-E&I). Following closely, Amazon Pay India and Adyen India, the local arm of the Dutch payments firm, received authorization under the Import-only (PA-CB-I) category.
This influx of players highlights the rapidly growing demand for digital export-import payment services, especially among SMEs and digital-first exporters.
In addition to larger firms, several emerging Indian startups are developing infrastructure to support exporters, especially in regions and sectors traditionally underserved by banks. Notable entrants include GoBrisk Technologies (BRISKPE) and Skydo Technologies, both of which are helping MSMEs in India receive international payments efficiently and cost-effectively.
These startups are increasingly critical in facilitating international trade for freelancers, D2C brands, and SaaS exporters by providing simpler onboarding, transparent fees, and real-time settlement capabilities.
With the RBI’s in-principle approval, PayPal has reinforced its long-term commitment to the Indian market—specifically the growing base of exporters and cross-border sellers. The company confirmed that it has no plans to re-enter the domestic payments market, choosing instead to deepen its expertise and services in the outbound payments domain.
Operating in over 200 countries and regions, PayPal remains a trusted global payments leader, and this latest development strengthens its positioning in one of the world’s fastest-growing export economies.