PayPal Gets RBI Green Light to Operate as Cross-Border Payment Aggregator

The Reserve Bank of India (RBI) has given PayPal Payments Pvt Ltd (PayPal), the Indian division of PayPal Holdings Inc., in-principle permission to function as a Payment AggregatorCrossBorderExports (PA-CB-E).

According to a statement from the company, this is a significant turning point in PayPal's activities in India and its ongoing assistance for Indian small businesses, allowing safe cross-border payments to about 200 markets.

India's Exports Reached USD 73.8 Billion

The decision coincides with India's exports hitting USD 73.8 billion in April 2025, highlighting the growing strength of international trade.

The RBI's in-principle PA-CB-E approval is a major milestone for PayPal, according to Nath Parameshwaran, Senior Director of Government Relations at PayPal India. It demonstrates the robustness of India's regulatory framework and the advancements made in the direction of safe, simple cross-border transactions.

He added further that the PayPal is still dedicated to providing Indian companies with reliable digital payment solutions as the country develops into a major exporting hub.

PayPal is working to make international selling easier for Indian small businesses with a growing range of locally tailored products, including PayPal Checkout, PayPal Invoicing, and No-Code checkout solutions.

PayPal Connect India’s Small Business with Global Commerce: Murshed

Over the past 25 years, PayPal has demonstrated its ability to innovate at each significant turning point in the business world, according to Abid Murshed, Head of Sales at PayPal India.

Murshed went on to say that the organisation has been in business in India for over ten years, providing reliable and secure payment options that allow freelancers and small enterprises to engage in international trade.

PayPal supports its clients as they grow into new trade corridors and satisfy changing global customer expectations as trade dynamics change, bringing with them both new opportunities and challenges.

PayPal said that the in-principle clearance enables it to continue providing cross-border payment services in a regulated environment, giving Indian merchants more security, consistency, and transparency in their international transactions.

According to the statement, this creates new opportunities for localised product developments, better customer experiences, and easier access to PayPal's worldwide payment network for Indian freelancers, small businesses, and major corporations.

How PayPal Operates?

Founded in March 2000, PayPal is an American online retailer that focuses on online money transfers. By allowing users to connect their PayPal accounts to their personal bank accounts and credit cards, the company speeds up payments and transfers compared to traditional methods of money transmission.

PayPal's main source of income is the transaction fees it charges customers and businesses on a per-transaction basis.

 A number of additional activities and transaction types, such as cross-border transactions, currency conversions, expedited money transfers to clients' bank accounts or debit cards, and cryptocurrency transactions, all generate fees for the digital payments platform.