Razorpay secures RBI approval for cross-border payments

By Vriti Gothi

Indian FinTech firm Razorpay has secured authorisation from the Reserve Bank of India (RBI) to operate as a cross-border payments aggregator, marking a significant regulatory milestone for the company and reinforcing its position in India’s international payments ecosystem.

The approval enables Razorpay to expand its regulated role in facilitating cross-border transactions for Indian merchants as well as overseas businesses operating in the country. Under the licence, Indian businesses using Razorpay can continue to accept payments in more than 130 international currencies, supporting global customer bases without relying on multiple payment service providers.

At the same time, the authorisation simplifies market entry for international brands looking to sell in India. Overseas companies will be able to accept local payment methods, including the Unified Payments Interface (UPI), without the need to first establish a local corporate entity. This is a notable development in a market where regulatory and operational requirements have historically acted as a barrier for foreign firms seeking to tap into India’s fast-growing digital economy.

Razorpay is already the largest non-bank player in India’s cross-border payments segment and supports a range of global and domestic brands, including Airbnb, Agoda, Klook, Shopify, Sabyasachi and IndiGo. The company said the RBI approval strengthens its ability to scale cross-border payment services while helping businesses expand internationally with greater speed and reduced friction.

From a sector perspective, the development reflects the RBI’s broader push to bring cross-border payment flows under clearer regulatory oversight, even as transaction volumes continue to rise. India has seen rapid growth in eCommerce, SaaS exports and platform-led international trade, increasing demand for a compliant, multi-currency payment infrastructure that can handle both inbound and outbound flows efficiently.

The licence also underscores the growing strategic importance of UPI in cross-border commerce. While UPI has primarily been a domestic payment rail, enabling foreign merchants to accept UPI payments without local incorporation could accelerate its adoption as a preferred payment method for international brands targeting Indian consumers.

For Razorpay, the approval provides regulatory certainty at a time when FinTech firms are facing heightened scrutiny around licensing, compliance and operational resilience. It positions the company to deepen relationships with global merchants and enterprise clients, while reinforcing its role as a key infrastructure provider in India’s evolving cross-border payments landscape.

As regulators continue to balance innovation with risk management, developments such as this are likely to shape how international payment platforms operate in and out of India in the coming years.