RBI Grants In-Principle Approval to PayPal and Worldline for Cross-Border Payment Aggregation

In a major development for India’s fintech and digital payments landscape, the Reserve Bank of India (RBI) has granted in-principle approval to PayPal Payments and Worldline ePayments India to operate as cross-border payment aggregators (PAs) under the Payment and Settlement Systems Act, 2007. This move is set to boost India’s position in global trade and freelance payments by enabling smoother online cross-border transactions.

Why in News?

The RBI’s recent approval marks a significant shift in the regulation of cross-border payment services. Previously, these services were operating under the Online Payment Gateway Service Provider (OPGSP) framework. However, in October 2024, the RBI mandated that all cross-border PAs must seek separate authorization. PayPal and Worldline are among the first to receive this crucial in-principle nod.

Key Highlights

  • Regulatory Approval: RBI granted in-principle approval to:
  • PayPal Payments Pvt Ltd (India arm of US-based PayPal Holdings)
  • Worldline ePayments India (part of France-based Worldline Group)
  • Authorization Under: Payment and Settlement Systems Act, 2007
  • Previous Regime: Companies operated using OPGSP licence for nearly a decade.

Background & Objectives

  • October 2024 Directive: RBI required all non-bank cross-border PAs to obtain separate authorization.
  • Need for Regulation: The aim is to bring transparency, accountability, and security in cross-border digital payments.

Target Users,

  • Freelancers
  • SMEs and Startups
  • Exporters of software and services
  • Import-export merchants

Strategic Importance

  • India – World’s Top Remittance Recipient:
  • Received over $125 billion in remittances in 2023.
  • Global Outreach: Enables Indian businesses to leverage PayPal’s international network.
  • Boost to Digital Trade: Enhances India’s capabilities in cross-border e-commerce and B2B transactions.
Summary/Static Details
Why in the news? RBI Grants In-Principle Approval to PayPal and Worldline for Cross-Border Payment Aggregation
Law Involved Payment and Settlement Systems Act, 2007
Reason for Approval To regulate and secure cross-border online payments
Target Beneficiaries Freelancers, small businesses, exporters, importers
Previous Framework Online Payment Gateway Service Provider (OPGSP) Licence
Shivam

Recent Posts

Bhutan Queen Mother Honoured with 22nd Upendra Nath Brahma ‘Soldier of Humanity’ Award 2025

In a significant recognition of humanitarian leadership and cross-border goodwill, Gyalyum Ashi Dorji Wangmo Wangchuck,…

8 mins ago

Goldman Sachs Raises India’s CY26 GDP Growth Forecast to 6.9%

In a positive outlook for the Indian economy, Goldman Sachs has upgraded India’s GDP growth…

21 mins ago

Which City is known as the Wool Capital of the World? Where it is Located?

Did you know that one city in the world built its identity around soft, warm…

23 mins ago

Walmart Becomes World’s First Retail Company to Reach USD 1 Trillion Market Value

In a historic milestone for the global retail industry, Walmart Inc. became the world’s first…

26 mins ago

IOC Elects First Female Member from Iran, Marking Historic Moment in Olympic Governance

In a historic development for global sports governance, the International Olympic Committee (IOC) has elected…

40 mins ago

RBI Imposes ₹18.76 Lakh Compounding Fee on One 97 Communications for FEMA Violations

In February 2026, the Reserve Bank of India (RBI) imposed a compounding fee of ₹18.76…

46 mins ago