Source: BS
Context:
Airpay Payment Services has received RBI approval to operate as a cross-border payment aggregator, completing its authorizations under the unified Payment Aggregator (PA) framework.
Full-stack PA License: Airpay can now operate as a payment aggregator across:
- Online payments
- Physical (POS) payments
- Cross-border transactions
What Are International Payments?
International payments (cross-border payments) refer to money transfers between entities in different countries. These transactions can be:
- Business-to-Business (B2B): Companies paying suppliers abroad.
- Business-to-Consumer (B2C): Companies paying freelancers or employees overseas.
- Consumer-to-Business (C2B): Individuals paying foreign merchants (e.g., online shopping).
- Remittances: Money sent by individuals to family in another country.
International payments are more complex than domestic ones due to foreign exchange regulations, currency conversion, settlement systems, anti-money-laundering (AML) norms, and compliance with international banking standards.
RBI Criteria to Operate as an International Payments Aggregator
To provide cross-border payment services, the RBI requires entities to:
- Obtain PA License: Must already be licensed as a Payment Aggregator (PA) under the Unified Payments Interface (UPI) / PA framework.
- Foreign Exchange Compliance: Adhere to Foreign Exchange Management Act (FEMA), 1999 for currency conversion and outward/inward remittances.
- Risk & AML Framework: Implement robust fraud detection, anti-money laundering (AML), and Know Your Customer (KYC) systems.
- Capital Adequacy & Governance: Maintain adequate capital buffers, net-worth requirements, and strong corporate governance.
- Technology & Security Standards: Ensure secure, real-time, and interoperable payment infrastructure, protecting sensitive financial data.
