Skydo Gets RBI Approval for PA-CB Licence: A Big Boost for India’s Cross-Border Fintech

India’s fintech ecosystem achieved a key regulatory milestone as Skydo received final authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator–Cross Border (PA-CB). This approval is significant because it allows the Bengaluru-based platform to expand regulated cross-border payment services for Indian exporters, with a special focus on MSMEs (Micro, Small and Medium Enterprises) and small businesses looking for smooth, compliant, and faster international collections.

RBI Licence: What It Means and Why It Matters

The PA-CB licence is granted under RBI’s evolving regulatory framework for payment systems. With this final approval, Skydo becomes one of the first fintech firms in India to secure authorisation in this category. This is important because cross-border payments involve sensitive areas like foreign exchange transactions, compliance checks, and documentation, making RBI supervision critical for building trust.

For exporters, this authorisation is expected to increase confidence among overseas clients and partners, since payments can now be processed through a regulated and compliant platform. It also strengthens India’s overall digital payment ecosystem by improving transparency, monitoring, and legal compliance.

Strong Support for Exporters, Freelancers and MSMEs

Skydo currently serves more than 30,000 MSMEs, startups, and freelancers across 50+ Indian cities. The platform enables exporters to accept payments in 32+ foreign currencies, allowing overseas buyers to pay locally while the exporter receives funds smoothly in India.

One major attraction is Skydo’s flat-fee pricing model along with no markup on live mid-market forex rates, which helps exporters avoid hidden charges. It also promises faster settlement cycles, which is especially useful for small businesses dependent on regular cash flow.

Additionally, Skydo offers instant compliance documentation through integrations with partner banks—making international transactions easier and less time-consuming.

Product Expansion and Global Payment Corridors

After the RBI authorisation, Skydo plans to expand across more global trade routes and strengthen its services. It has already enabled local payment acceptance in complex markets such as Africa, showing its focus on difficult but high-potential corridors.

Skydo also provides tools like invoicing, payment reminders, analytics dashboards, ledgering, and integration with ERP and accounting systems, helping exporters manage cash flow and track collections more efficiently.

Important Facts for Competitive Exams

• PA-CB stands for Payment Aggregator–Cross Border.
• RBI regulates payment systems under the Payment and Settlement Systems Act, 2007.
• Cross-border payments require compliance under FEMA (Foreign Exchange Management Act).
• MSMEs are a key pillar in India’s foreign trade policy and export growth.

Funding and Growth Targets

Skydo recently raised $10 million in Series A funding, led by Susquehanna Asia Venture Capital, with participation from Elevation Capital. With this, its total funding has reached $20 million. The company has set a strong growth target of achieving $5 billion in annualised payment volumes by 2027, showing the rising demand for regulated digital export payment solutions.