PayPal’s Indian subsidiary has received in-principle approval from the Reserve Bank of India (RBI) to function as a Payment Aggregator for Cross-Border Exports (PA-CB-E), a significant regulatory milestone. The move enhances the company’s ability to support Indian exporters, small businesses, and freelancers in accessing nearly 200 international markets through secure digital payment solutions. Amid rising export volumes and growing momentum in India’s cross-border trade, the RBI’s nod underscores the country’s commitment to fostering innovation and resilience in digital finance. PayPal, with over a decade of operations in India, now gains a broader mandate to localize, innovate, and expand its offerings.
Strategic Regulatory Approval Sets the Stage
PayPal Payments Pvt Ltd, a wholly owned subsidiary of U.S.-based PayPal Holdings Inc, has secured in-principle approval from the RBI to operate as a Payment Aggregator—Cross Border—Exports (PA-CB-E). The approval marks a critical regulatory step for the digital payments pioneer, aligning its India operations with the central bank’s framework for cross-border financial services.
This regulatory clearance enables PayPal to offer cross-border payment solutions within a more formalized and secure structure, allowing exporters and digital entrepreneurs to conduct transactions with greater confidence and compliance.
Empowering India’s Global Sellers
India’s export sector continues to demonstrate resilience, with outbound shipments valued at USD 73.8 billion in April 2025. Against this backdrop, PayPal’s enhanced role is timely and consequential. It enables Indian businesses—from MSMEs to freelancers—to expand into international markets through PayPal’s trusted platform that supports transactions in nearly 200 countries.
Nath Parameshwaran, Senior Director of Government Relations at PayPal India, called the RBI’s approval “a significant milestone,” citing it as a testament to India’s progressive regulatory vision and commitment to frictionless digital trade. He reaffirmed PayPal’s pledge to help Indian businesses scale globally through reliable, secure financial infrastructure.
A Decade of Innovation in Indian Commerce
Over the past 25 years globally—and more than a decade in India—PayPal has been a catalyst at critical junctures in the evolution of commerce. Its India presence has focused primarily on enabling small and medium-sized enterprises (SMEs) and independent professionals to enter and thrive in global trade corridors.
Abid Murshed, Head of Sales at PayPal India, emphasized the platform’s commitment to serving as a “reliable partner” in this transformation. “As trade dynamics evolve, we will continue to adapt, innovate, and offer our customers solutions that meet the ever-changing demands of international commerce,” he said.
Enabling Digital Transformation and Innovation
With the RBI approval, PayPal is now better positioned to enhance its suite of localized solutions—such as PayPal Checkout, PayPal Invoicing, and no-code checkout tools—tailored specifically for Indian sellers.
The regulatory framework also opens new pathways for product innovation and personalized customer experiences. These developments are expected to benefit a wide spectrum of stakeholders, from enterprise-level exporters to grassroots digital freelancers navigating international transactions.
Furthermore, the formalized aggregator status provides a foundation for PayPal to deliver greater consistency, transparency, and security across all cross-border transactions it facilitates in India.
Conclusion
The in-principle RBI approval affirms PayPal’s strategic role in India's digital trade ecosystem. As India positions itself as a global export powerhouse, secure and efficient digital payment infrastructures like PayPal’s will be critical in accelerating participation across geographies. With regulatory momentum and technological expertise on its side, PayPal stands poised to not only support Indian exporters but also shape the future of cross-border digital commerce in one of the world's most dynamic markets.
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