India opens cross-border doors for PayPal, Worldline with RBI’s nod

By Gloria Methri

In a significant development for India’s cross-border payments ecosystem, the Reserve Bank of India (RBI) has granted in-principle approval to PayPal and Worldline to operate as cross-border payment aggregators (PAs). The authorisation will enable the two global players to facilitate outbound payments from India, including for purposes such as eCommerce purchases, business payments, education fees, and travel.

The move aligns with the RBI’s 2021 guidelines, which require payment aggregators facilitating cross-border transactions to obtain regulatory approval, ensuring better oversight, consumer protection, and secure payment processing.

PayPal’s approval represents a major step forward in its ambition to re-establish a foothold in India’s growing digital payments space. The company had previously shut down its domestic payment services in India in 2021, focusing solely on cross-border trade. With this nod, PayPal will be better positioned to cater to small businesses, freelancers, and exporters looking for streamlined international payment solutions.

Worldline, a European payments provider with a strong presence in India through its acquired entity, Ingenico, also received the in-principle clearance. The firm processes millions of transactions monthly and has been expanding its footprint across merchant acquiring, digital payments infrastructure, and omnichannel solutions in India. The cross-border PA licence is expected to strengthen further its offering to Indian merchants seeking global outreach.

The RBI’s decision is part of a broader push to formalise and regulate India’s outbound remittance flows, which have seen sustained growth driven by increased digital adoption, cross-border eCommerce activity, and the rise of the gig economy. According to RBI data, India’s outward remittances under the Liberalised Remittance Scheme (LRS) touched nearly $30 billion in FY24, a jump from previous years.

While the in-principle approvals do not equate to full authorisation, they are an essential milestone. PayPal and Worldline must now comply with additional regulatory and technical conditions before receiving the final licence to commence operations.

This development not only strengthens the role of global FinTechs in India’s evolving financial landscape but also signals the central bank’s commitment to enabling safer, compliant, and innovation-friendly cross-border payment frameworks.