Collect Payments from India: The Complete Guide for Global Businesses, PSPs and Fintechs
Accepting payments from India is no longer a “nice to have” for global businesses and PSPs, it’s becoming a core growth channel that now requires a local, UPI‑first, RBI‑compliant strategy. Indian customers increasingly expect to pay in INR via UPI and other local methods, while foreign businesses want settlement offshore in hard currency and a simple way to stay within India’s new Payment Aggregator – Cross Border (PA‑CB) regime.
Why accepting payments from India matters now
India is one of the fastest‑growing digital economies, with UPI now accounting for around 80% of all digital payment transactions and a majority of e‑commerce volume. UPI processes well over 12–16 billion transactions a month and dominates NPCI’s overall payment volumes, making it the default way Indians pay for everything from groceries to streaming subscriptions.
UPI cross‑border transactions grew roughly 20x in one year, supported by NPCI International’s tie‑ups in markets like the UAE, Singapore, France and Mauritius. For global merchants, platforms and PSPs, this means Indian customers increasingly expect “local” UPI checkouts even when paying a foreign brand.
How payments from India to foreign businesses work
When an Indian customer pays an overseas merchant, the basic flow looks like this:
- Payer initiates a payment in INR via UPI, cards, netbanking or wallet at checkout.
- An Indian issuing bank debits the customer’s account or card in INR.
- A local acquirer or payment aggregator in India captures the transaction and, if cross‑border, routes it through a Payment Aggregator – Cross Border (PA‑CB) or other authorised channel.
- FX conversion happens via authorised dealers, and funds are settled in foreign currency (USD/EUR/GBP, etc.) into the foreign merchant’s or PSP’s offshore account.
Key challenges for foreign businesses, PSPs and fintechs
Regulatory complexity (RBI, FEMA, PA‑CB).
Cross‑border collections are now governed by a specific PA‑CB framework under RBI, which sets rules on who can aggregate cross‑border payments, what use‑cases are allowed, and how funds and data must flow. You also have to respect FEMA rules, permitted “current account” transactions and purpose‑code reporting.
Local presence vs “no local entity”.
Traditional advice was “incorporate in India, open a bank account, get GST, then go to a domestic PSP”, which slows go‑to‑market by months and adds ongoing tax and corporate compliance. PA‑CB‑based “no local entity” models now let many global merchants accept payments from India and settle offshore without setting up an Indian company, as long as they fit within RBI‑permitted use cases.
Fragmented local payment methods.
India is UPI‑first, with domestic schemes like RuPay and a long tail of netbanking and wallet options. Integrating all of these and reconciling payouts and refunds across methods can be heavy for foreign teams used to card‑first markets.
FX, pricing and fees.
Cross‑border MDRs, FX spreads, potential withholding tax exposure and settlement lags can all erode margins if you pick the wrong model or mis‑price India.
Risk and compliance.
KYC, AML, sanctions screening, fraud and chargebacks all need to be tuned for India‑origin traffic, which has its own patterns and regulatory expectations under RBI’s PA‑CB and payment aggregator directions.
Your main options to accept payments from India
a) Traditional cross‑border card acquiring via global PSPs
You integrate with a global PSP or acquirer. Indian customers pay with international cards, INR is converted to your settlement currency by the issuer or card scheme, and you are paid out like any other cross‑border card transaction.
Who it suits
Early‑stage India experiments, low India volume, or use‑cases where cards are already dominant (e.g., some B2B SaaS).
b) Setting up an Indian entity and using domestic PSPs
You incorporate in India, open a local bank account, then integrate a domestic PSP like Razorpay, PayU, Worldline, etc. Payments are acquired locally in INR and settled into your Indian bank account, from which you later repatriate funds abroad following RBI and tax rules.
Who it suits
Large, long‑term India plays where you want deep in‑market presence, local invoicing and perhaps on‑ground teams.
c) Using a licensed Payment Aggregator – Cross Border (PA‑CB) for “no local entity” collections
A PA‑CB is an RBI‑authorised payment aggregator that can acquire permissible cross‑border e‑commerce/current account transactions from Indian customers and settle them to foreign merchants, under a tightly regulated framework.
How it works
- Indian customers pay you using UPI, domestic cards, netbanking or wallets in INR at checkout.
- The PA‑CB handles local acquiring, FX conversion via authorised dealers, purpose‑code tagging, e‑FIRA/FIRC and reporting.
- Net settlement reaches your offshore account in currencies like USD or EUR, typically via a single integration.
Who it suits
Global SaaS, marketplaces, travel, EdTech, digital goods and platforms that want to receive payments from India without local entity overhead but still need UPI‑led cross‑border collections and RBI‑compliant cross‑border payments from India.
d) Embedded model for PSPs and fintechs (white‑label / partner integration)
If you are a global PSP, acquirer or fintech, you can integrate a PA‑CB provider like EximPe as an infrastructure layer. This lets you expose “accept payments from India” and UPI cross‑border collections to your own merchants via your existing APIs and dashboards.
Operating model comparison
Why UPI‑led cross‑border collections are becoming default
UPI has become the backbone of Indian digital payments due to its instant, mobile‑first UX, near‑zero consumer fees and widespread acceptance across 500M+ users and millions of merchants. For many Indians, if you don’t support UPI at checkout, you simply “don’t feel local”.
As UPI goes global through links in markets like the UAE, Singapore, France and Sri Lanka, cross‑border UPI enables a powerful combo - customers pay in INR using familiar UPI apps, while global merchants settle in foreign currency via regulated corridors. This often delivers higher authorisation rates and lower overall cost than pure international card rails, translating into better conversion and lower cart abandonment for foreign brands.
How EximPe helps global businesses, PSPs and fintechs accept payments from India
EximPe is a cross‑border payments infrastructure provider that has received final Payment Aggregator – Cross Border (PA‑CB) authorisation from the Reserve Bank of India, allowing it to directly facilitate collections from Indian customers via UPI and other local methods with settlement into offshore accounts. EximPe is among a small group of PA‑CB licence holders and one of the few that achieved this without a prior domestic payment aggregator licence.
Core value propositions for foreign merchants, PSPs and fintechs:
- Accept in UPI, netbanking, cards and other local India payment methods from Indian customers without creating an Indian entity, via EximPe’s PA‑CB‑based “no local entity” model.
- Settlement into offshore accounts in major currencies (e.g., USD and EUR) with purpose‑code tagging, e‑FIRA/FIRC and compliance handled.
- One connection for global merchants, PSPs and fintechs to add India as a source market, or to embed India into their own PSP stack.
- Built on licensed Indian payment infrastructure under RBI’s latest Payment Aggregator Cross‑Border (PA‑CB) licence and related payment aggregator directions.
If you’re a global company, PSP or fintech exploring how to receive payments from India without setting up a local entity, EximPe can help you evaluate the right model and go live quickly.
FAQs
Can I accept UPI payments from India without registering a company in India?
Yes, for many digital goods and services use cases, you can accept UPI payments via a Payment Aggregator – Cross Border (PA‑CB) partner that is authorised by RBI, without setting up a local Indian entity.
How are funds settled when I use a PA‑CB provider?
Your PA‑CB partner acquires the payment locally in INR, manages purpose codes and FX conversion via authorised dealers, and then settles net funds into your offshore bank account in currencies like USD or EUR on agreed cycles.
Which India payment methods can I offer as a foreign merchant?
Depending on the partner, you can typically offer UPI, domestic cards (including RuPay), netbanking and sometimes wallets, all presented as local India payment methods even though you are a foreign merchant.
What kind of businesses are allowed to receive cross‑border payments from India?
RBI’s PA‑CB framework focuses on permissible current‑account transactions, especially e‑commerce payments for goods and services, certain high‑risk categories or capital‑account flows remain restricted, so you need to confirm eligibility with your PA‑CB and advisors.
What are typical fees for accepting payments from India?
Pricing usually combines a percentage MDR plus FX spread and sometimes a per‑transaction fee, with UPI often cheaper than international card rails, exact fees vary by sector, volume and risk profile rather than being one fixed rate.
