PayPal Secures RBI Approval for Cross-Border Payment Operations
PayPal Payments Pvt Ltd, the Indian subsidiary of PayPal Holdings Inc, 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 significant regulatory endorsement is expected to enhance PayPal’s capabilities in facilitating secure cross-border payment solutions for Indian exporters. With this approval, PayPal aims to empower small businesses and freelancers in India, enabling them to access around 200 international markets more effectively.
Significance of RBI Approval
The RBI’s in-principle approval is a pivotal milestone for PayPal, underscoring the strength of India’s regulatory framework and its commitment to fostering seamless cross-border transactions. Nath Parameshwaran, Senior Director of Government Relations at PayPal India, emphasized that this approval aligns with India’s vision of becoming a global export hub. He stated that PayPal is dedicated to providing Indian businesses with reliable digital payment solutions, which are crucial as the country enhances its position in international trade.
This development comes at a time when India’s export performance is robust, with outbound shipments reaching USD 73.8 billion in April 2025. The approval is expected to further bolster this momentum, allowing Indian exporters to navigate the complexities of global trade more efficiently.
Empowering Small Businesses
PayPal has been actively working to support small businesses and freelancers in India for over a decade. The company has introduced various localized solutions, including PayPal Checkout and PayPal Invoicing, aimed at simplifying international commerce for micro, small, and medium enterprises (MSMEs). Abid Murshed, Head of Sales at PayPal India, highlighted the company’s commitment to standing by its customers as they adapt to shifting trade dynamics and explore new opportunities.
The approval from the RBI will enable PayPal to continue offering cross-border payment services within a regulated environment. This ensures greater transparency, consistency, and security for Indian merchants engaging in global transactions. By facilitating easier access to international markets, PayPal aims to empower Indian enterprises of all sizes to thrive in the global economy.
Future Prospects and Innovations
With the RBI’s approval, PayPal is poised to explore new avenues for product innovation and enhance user experiences for its customers in India. The company plans to broaden access to its international payment ecosystem, which will benefit Indian businesses looking to expand their reach. This strategic move is expected to create new opportunities for local product development, ultimately leading to improved services for users.
As PayPal continues to evolve its offerings, the company remains focused on meeting the changing needs of its customers. The approval signifies a commitment to fostering a secure and efficient payment landscape, which is essential for the growth of Indian exporters in the competitive global market.
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