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Indian fintech players applying for int'l payment licenses

27 Mar 2024

Razorpay, Cashfree and new fintech providers like Skydo and PayGlocal among those applying for RBI's Payment Aggregator-Cross Border (PACB) license.

In 2023, Indian fintech startups processed $10 billion worth of transactions of the $250 billion goods and services exports registered by small and medium sized businesses. These financial services providers were earlier given an online payment gateway service provider license, identifying them as technology providers to Indian banks.

Indian fintechs expect a margin of 2.5-4% per international card transaction compared to 1% domestically. Average ticket size for B2B global transactions is estimated to be $5,000.

The Reserve Bank of India (RBI) introduced the PA-CB license in October 2023 to regulate emerging international payments businesses.

Razorpay recently shifted its base from Singapore to India. It is now building an international payments gateway and will then graduate to large ticket vendor payments for account based transactions. Cashfree will initially focus on B2C payments only. Pay Glocal will facilitate B2B transactions for software and services businesses and existing goods exporters.

Source: ET Prime

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