International Payments For Indian Businesses: A Complete Guide

Businesses in India that focus solely on domestic customers are leaving hundreds of billions of dollars on the table. In 2024-25, India’s total exports reached a record 825 billion USD, highlighting the global demand for Indian products.

Beyond major markets such as the US, the UAE, and the UK, countries across Africa, Latin America, and the Middle East are increasing their imports from India. India’s total trade with the Latin American and Caribbean region reached 35.73 billion USD in 2023–24. The country also became the UAE’s second-largest trading partner, accounting for around 9% of the UAE’s total trade. This is a clear sign that Indian businesses have more global opportunities today than at any point in the last decade. 

Despite this momentum, many Indian merchants hesitate to expand globally due to limited awareness, fraud concerns, and, most importantly, the complexity of international payments. However, accepting international payment markets is easier y than ever.

International payments in India: A quick overview

International payments in India are money transfers from a merchant to a customer, client, or partner outside the country, typically denominated in a currency other than the Indian Rupee (INR). A domestic transaction, when paid in a foreign currency, is also legally treated as an international payment, even if both the payer and the payee are based in India.

International payments vs domestic payments

One of the primary differences is that international payments involve a foreign currency and require its conversion into INR, which are processed through intermediaries, such as banks, payment processors, or credit unions.

Additionally, domestic transactions in India are primarily processed via UPI (digital payments), IMPS or NEFT (bank transfers), or credit card networks such as Visa, Mastercard, and RuPay. They also settle faster and incur fewer charges.

International payments can be made through various methods, depending on customer preferences in a given region. For example, consumers in Latin America primarily use credit cards and Pix, while consumers in the Asia-Pacific region rely heavily on digital wallets.

With businesses competing on price and exclusive deals, the only way to stand out is to offer customers their preferred payment option, even if they’re highly local. This not only helps reduce cart abandonment but also leads to more loyal customers, ultimately improving the bottom line.

To decide which payment methods to offer, answer two questions:

1. Which markets are you planning to expand to?
2. Which payment methods do customers in these countries use the most?

Then use this table of the most common payment methods used for accepting international payments in India.

How can Indian businesses offer international payment methods to global clients?

Working with a global payment processor is the easiest way to provide a range of payment options to customers outside India.

A third-party payment processor serves as a single access point to multiple payment methods. Through a single integration and commercial relationship, Indian businesses can accept domestic and international payments and operate in different countries without building separate systems for each.

Additionally, the processor handles payment routing, currency conversion, compliance checks, risk management, settlement, and unified reporting, significantly reducing operational burden and speeding up global expansion.

What are the challenges of accepting international payments in India?

The ability to accept international payments allows Indian businesses to participate in global commerce. This means access to higher-value customers, especially in markets such as the US, UK, EU, and the Middle East, where average order values tend to be higher. 

International payments also help businesses diversify revenue and reduce dependency on domestic demand cycles. That said, cross-border transfers present several challenges.

Higher costs

Receiving payments from foreign customers subjects Indian businesses to several mandatory charges.

Businesses should pay a Merchant Discount Rate (MDR) on international card payments,​​  typically ranging from 1% to 3%. Additionally, banks and payment providers may each charge a fee and apply foreign exchange conversion margins, thereby increasing transaction costs.

For outward remittances under the Liberalised Remittance Scheme (LRS), Tax Collected at Source (TCS) may also apply if transactions exceed specified thresholds.

Longer settlement times

International payments typically pass through intermediary or correspondent banks before reaching the Indian business’s account. Each intermediary may apply checks, fees, or local regulatory requirements, which can delay settlement.

As a result, cross-border payments may take several days, and in some cases weeks, to be credited, which can affect cash flow and disrupt business operations.

Greater risk of fraud and chargebacks

International transactions are mostly card-not-present payments. They also go through several intermediaries, which increases the risk of fraud and payment reversals compared to domestic payments.

Payment reversals, such as chargebacks, not only result in revenue loss but also require significant time and administrative effort. If chargeback ratios exceed thresholds set by card networks, Indian businesses could face increased fees or even restrictions on their payment accounts.

Complex regulatory requirements

International payments in India are subject to strict regulatory oversight under the Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) guidelines.

Businesses must tag each transaction with the correct RBI purpose code and submit proof of receipt, such as an FIRC (Foreign Inward Remittance Certificate) or FIRA (Foreign Inward Remittance Advice), for export invoicing, audits, or export-related benefits.

Inaccurate documentation or non-compliance can lead to delayed settlements, audit complications, and potential loss of incentives. However, managing this documentation manually is time-consuming, particularly as transaction volumes grow.

How to overcome these challenges and accept international payments in India?

1. Choose a trusted international payment processor

The right international payment processor can help businesses overcome a majority of the challenges associated with cross-border transactions. So begin by choosing a payment processor that checks the following boxes:

• Built for cross-border transactions: Ensures smoother payments and reduces the risks of payment failures
• Support the local payment methods that target customers use: Improves conversion rates
• Has a transparent pricing model and FX fees: Helps control costs and makes revenue forecasting more predictable
• Can handle multi-currency payments: Removes the complexity of managing multiple foreign accounts
• Offer settlement in INR: Simplifies accounting, cashflow management, and tax reporting
• Maintain compliance with international and Indian payment regulations: Reduce regulatory risk, and enable faster settlements and smoother reconciliation.

2. Complete KYC & RBI compliance

Before international payments can go live, Indian businesses must complete mandatory KYC and regulatory checks. This typically involves submitting incorporation documents, PAN details, proof of address, authorised signatory information, and bank account details. These requirements are driven by RBI and FEMA regulations and apply to all businesses receiving foreign payments.

Failure to do so may result in cross-border payments being held or rejected by banks or payment networks due to missing or incomplete information.

Additionally, businesses must ensure that the global payment processor they choose holds the appropriate licenses, such as the payment aggregator and payment gateway (PA-PG) licence and the RBI’s cross-border payment aggregator (PA-CB) licence, to ensure smooth domestic and international operations.

3. Integrate the payment processor

Once verification is complete, businesses can create a merchant account with the payment processor and, using the provided API credentials and technical documentation, connect the payment gateway to their website, app, or checkout flow.

From the processor’s dashboard, businesses can also enable and configure all required payment methods, including domestic and international options.

While many processors provide developer-friendly APIs and plugins, integration may still require some technical knowledge. If internal resources are limited, businesses can rely on the processor’s onboarding team or technical support to ensure a smooth, secure integration.

4. Test & start receiving payments

Once everything is set up, businesses should test all payment methods before going live. This means running end-to-end test transactions, either manually or using a sandbox and testing tools to ensure the checkout experience works smoothly for international customers. 

Analyse payment authorisation, settlement timelines, FX conversion, fees charged, and transaction visibility on the dashboard. Additionally, testing helps identify bugs, security gaps, or performance issues that could affect customer experience or compliance. Resolve any problems that surface during this stage, and repeat the tests before going live.

Even after the launch, continuous monitoring is essential to ensure that transactions remain secure, compliant, and operationally efficient.

The best international payment processors for businesses in India

Selecting the right international payment processor is one of the most important decisions for Indian businesses planning their expansion. With so many options, this can be challenging. To help, we have carefully chosen three of the most widely used payment processors in India.

Unlimit

Founded in 2009, Unlimit is a global fintech company providing the world’s largest portfolio of financial technology solutions. Businesses have access to more than 1000 payment methods through a single integration. They hold local licenses in 13 regions, including the RBI’s PA-CB licence in India. This helps eliminate intermediaries, reducing processing costs and accelerating settlements.

Unlimit’s global coverage spanning the EU, India, Africa, LATAM, and APAC makes it easier for Indian businesses to scale seamlessly across borders. Additionally, features such as payment links, instalment payments, and subscription payments ensure every business model can accept both domestic and international payments without needing multiple providers or complex setups.

Pros

• Supports over 150 currencies and 1,000 payment methods, including local preferences, such as Pix in Brazil, and SPEI in Mexico
• A flexible pricing model that can be tailored to fit business needs and budget
• A unified dashboard provides insights into transaction data across markets and payment methods
• Regional support teams that understand local regulations and payment practices for quick issue resolution
• PCI DSS compliance, encryption, tokenisation, and advanced fraud detection tools for secure transactions.

Considerations

• Since the pricing is customised based on geography, risk profile, and volumes, businesses may not see a flat rate instantly
• Certain features, such as subscriptions or EMI payments, aren’t available in all regions
• Due to their broad portfolio of regions, currencies, and payment methods, businesses may need initial guidance in determining the relevant payment options for their target markets
• Unlimit’s payment processing solutions are designed for businesses and not individuals looking to send money abroad. Companies requiring personal remittance solutions may need a different provider.

Cashfree

Cashfree is one of India’s leading full-stack payment platforms with a PA-CB licence from the RBI. Their broad payment infrastructure primarily covers domestic and major international payment methods.

With Cashfree, Indian businesses can accept payments in major currencies, such as USD, EUR, GBP, AUD, and CAD. The sign-up process is paperless and straightforward, and the partnership comes with no hidden charges.

Cashfree’s user base consists of Indian exporters, SaaS companies, and e-commerce brands looking to scale globally while keeping operations simple.

Pros

• Dedicated account managers for each user
• Provides monthly FIRC reports, reducing accounting and regulatory burden
• Issue e-FIRAs within 24 hours after settlement
• Settlement in INR, usually within two business days
• Reliable customer support that resolves problems promptly and efficiently.

Considerations

• Accepting payments in currencies beyond the major ones requires Cashfree’s Global SWIFT Account, which supports around 30 currencies
• Lack direct integrated payment methods, and even essential payment methods in major markets, such as Pix in Brazil or POLI in Australia
• Although the API is clean and well-documented, advanced integrations can be challenging.

Razorpay

Razorpay began as a strong domestic payment gateway, but now holds a PA-CB licence from the RBI and helps Indian businesses accept international payments. The platform supports all major global payment methods. It offers a competitive fee model of up to 3% on international card payments and up to 1% on international bank transfers.

Beyond the basic features, Razorpay also offer payments through links and QR codes, which are particularly useful for SaaS, subscription, and service-based businesses. Their user base includes renowned Indian brands such as Air India, Flipkart, and Policy Bazaar.

Pros

• Best-in-class security through tokenisation, encryption, and Thirdwatch
• Quick and easy to set up and start accepting payments
• Developer-friendly APIs and plugins for easy integration
• A single unified gateway for accepting domestic and international payments
• Live chat support and a knowledge base library are available 24/7.

Considerations

• Lack of directly integrated payment methods in major markets, such as LATAM and Africa
• Some businesses report difficulties in getting international payment features enabled
• For large-scale or high-volume international payments, fee and FX margins must be carefully evaluated
• Success rates for international cards and specific payment methods may vary by issuing country
• Requires additional approval and extensive integrations with certain digital wallets.

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