Fintechs eye gains from cross-border payments

Easier RBI norms end dependence on banks, open up the market

- AYANTI BERA

FINTECH FIRMS ARE preparing for a major expansion in cross-border payments after RBI began issuing licences under its new Payment Agegregator—Cross Border (PA-CB) framework.

It has replaced the earlier OPGSP (online payment gateway service providers) structure and gives non-bank payment firms direct regulatory approval to handle international collections and payouts, removing longstanding dependence on banks and opening a significantly larger business opportunity.

Razorpay, Cashfree Payments, Pine Labs, PayGlocal, Skydo, BriskPe and Exim Pe are among the firms that have secured the authorisation, which executives say, is already changing how they operate. Under the previous model, banks had to apply to RBI on behalf of fintechs, and any withdrawal of the partnership meant the fintech lost its authorisation instantly.