Cashfree Initiates Pilot Program for Cross-Border Payments

Cashfree Payments, a leading payment gateway provider, has partnered with prominent brands such as Swiggy, Nykaa, BookMyShow, Redbus, Zepto, Nature’s Basket, and Vedantu to enable seamless transactions for international customers. These partnerships signify Cashfree’s growing role in facilitating cross-border payments, especially for merchants in India catering to clients abroad. With the support of the Reserve Bank of India (RBI) through a cross-border payments license, Cashfree is rolling out its pilot program with a select group of merchants.

Launch of Cashfree’s Pilot Program for International Payments

Cashfree Payments has initiated a pilot program to test its cross-border payment solutions with a handful of sizable merchants. According to Akash Sinha, CEO of Cashfree Payments, this pilot will conclude by the end of the year, providing valuable insights for a full-scale rollout. Through this initiative, Cashfree aims to enable foreign-based customers to make purchases on Indian platforms more easily and efficiently, offering a significant step toward broadening Indian e-commerce’s international reach.

Key Benefit for Users: Supporting RuPay and UPI for International Transactions

One of the critical advantages of Cashfree’s new cross-border payment initiative is its support for RuPay credit and debit cards, as well as the Unified Payments Interface (UPI). Currently, these platforms are not recognized for international purchases, making cross-border transactions challenging for users. By supporting RuPay and UPI, Cashfree will cater to a growing segment of international customers who use these payment platforms. This development will allow them to transact in India, thus expanding accessibility to Indian goods and services.

Cashfree’s Focus on Import and Export-Oriented Merchants

Cashfree Payments is tailoring its services to meet the needs of both import and export-focused merchants. This targeted approach aligns with the needs of diverse business types, from small SaaS (Software as a Service) providers to larger e-commerce players. SaaS companies, in particular, stand to benefit as international transactions above $10,000 often incur high credit card fees. By offering a more cost-effective payment alternative, Cashfree enables these companies to handle larger transactions seamlessly.

Flexible Payment Options for Retail and Business Customers

The Cashfree platform offers flexible options for different types of customers. Retail users have the choice of using international payment gateways or locally issued cards to make payments. For business users, Cashfree provides additional options such as SWIFT or wire transfer for higher-value transactions. These varied payment methods cater to both domestic customers using international platforms and international clients accessing Indian goods and services, including digital products and OTT platforms.

PA-CB License and Its Role in Cross-Border Transactions

Cashfree Payments holds the unique distinction of being the first company to secure the Payment Aggregator Cross-Border (PA-CB) license from the RBI. This license enables Cashfree to offer payment services specifically for the export-import sector, simplifying transactions for both buyers and sellers engaged in international trade. Other major players like BillDesk, Amazon Pay, and Adyen have also received this license, underscoring the growing interest in cross-border payment solutions in India.

India’s Growing Remittance Market and Cashfree’s Role

As highlighted in the Economic Survey 2024, India is projected to receive $129 billion in remittances by 2025. The PA-CB license positions Cashfree and other payment aggregators to tap into this lucrative market by enabling wallet-based payments and using proxy identifiers, such as QR codes, to receive payments without sharing bank details. These features make it easier and safer for international clients to transact in India, contributing to India’s thriving remittance landscape.

Additional Features of PA-CB License Services

The PA-CB license offers several other services aimed at facilitating international payments. Payment aggregators can provide credit facilities to customers, allowing them to make instant payments to sellers. Furthermore, companies can use payment links to receive funds or enable recurring cross-border transactions. By providing these services, Cashfree is enhancing convenience for international clients, making India’s payment landscape more competitive on a global scale.

Statements from Industry Leaders

Cashfree’s collaboration with leading brands and the adoption of cross-border payment solutions reflects a significant advancement in India’s digital payment ecosystem. Atul B Lall, Vice Chairman and Managing Director of Dixon Technologies, expressed his excitement about this partnership, emphasizing the impact of local manufacturing on India’s digital economy. Sandy Motley, Vice President of Fixed Networks at Nokia, also highlighted the potential of this collaboration to drive India’s digital transformation and further improve connectivity across the nation.