Anshul Sharma

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PA-CB (Payment Aggregator – Cross Border) is an RBI-regulated framework for entities that facilitate cross-border payments through e-commerce channels for permissible import and export transactions involving goods and services.

The RBI introduced the PA-CB framework through its October 31, 2023 circular, bringing entities that facilitate cross-border payments under direct RBI regulation. The framework was introduced under the Payment and Settlement Systems Act, 2007, along with applicable FEMA requirements.

<a></a>How Did the PA-CB Framework Replace the Earlier OPGSP Model?

Before the PA-CB framework, Online Payment Gateway Service Providers (OPGSPs) facilitated certain cross-border transactions through arrangements with Authorised Dealer (AD) banks. The October 31, 2023 framework brought eligible OPGSPs within the PA-CB regulatory framework, subjecting them to direct RBI authorisation and compliance requirements.

<a></a>What Are the Current PA Categories?

Under the RBI (Regulation of Payment Aggregators) Directions, 2025, issued on September 15, 2025, payment aggregators are classified into three categories:

PA-CBs are further classified based on whether they facilitate inward cross-border transactions, outward cross-border transactions, or both, subject to the applicable regulatory requirements.

Key compliance requirements for obtaining a PA-CB license:

A non-bank entity carrying out payment aggregator activities covered by the framework must obtain a Certificate of Authorisation (CoA) from the RBI. Therefore, businesses describing themselves as RBI-authorised PA-CBs should have the relevant RBI authorisation to undertake the activities covered by the PA-CB framework.

What Are the Sub-Categories of RBI PA-CB License?

Under the RBI's current framework, PA-CB activity is divided into inward (PA-CB-I) and outward (PA-CB-O) transactions, with some entities authorised for both.

A PA-CB-I authorisation covers eligible cross-border payments flowing into India. This is the relevant category for Indian freelancers, agencies and exporters that need to receive payments from overseas customers.

A PA-CB-O authorisation covers eligible cross-border payments flowing out of India to overseas merchants. It is relevant when an Indian business uses a platform to pay foreign suppliers or service providers.

Some payment aggregators hold PA-CB-I &amp; O authorisation, allowing them to facilitate eligible inward and outward cross-border transactions. RBI's authorised-entity listings use this notation for entities approved for both directions.

For Indian freelancers, agencies and service exporters receiving payments from foreign clients, PA-CB-I is the relevant sub-category because it covers eligible inward cross-border transactions.

Which Platforms Are on the RBI PA-CB List?

As of January 2026, 19 entities had received final RBI authorisation to operate as Payment Aggregators-Cross Border (PA-CB). The approvals came in distinct waves, starting in July 2024 and accelerating toward the end of 2025.

Cashfree Payments became the first PA-CB license holder on July 22, 2024. Amazon Pay India and Adyen India followed on July 25, both with inward authorisation, while IndiaIdeas.com (BillDesk) received approval for both export and import transactions on July 29.

Pay10 Services received PA-CB authorisation on November 6, 2024, with authorisation for both inward and outward transactions. Worldline ePayments India also received PA-CB authorisation for both directions.

The number of final approvals increased sharply toward the end of 2025. PayGlocal received authorisation for both inward and outward transactions on November 18, 2025. Pine Labs, Easebuzz, PayU Payments and Airpay followed in November. Razorpay received its PA-CB authorisation on December 2, while Paytm Payments Services received authorisation covering online, physical and cross-border payment aggregation in December. Mswipe Technologies was also among the December approvals.

<a></a>Wave 4: December 2025–January 2026

BriskPe received PA-CB-I &amp; O authorisation on December 26, 2025. Skydo received final PA-CB authorisation on January 9, 2026, and was reported at the time as serving 30,000+ MSMEs. Unlimit was also among the entities receiving final PA-CB authorisation during this period. These approvals brought the total number of fully authorised PA-CB entities to 19 by January 2026.

The RBI regularly updates its authorised-entity information. Check the<a href="https://rbi.org.in/Scripts/PublicationsView.aspx?id=12043"> RBI's official authorised entities list</a> for the latest PA-CB status and authorisation category before choosing a provider.

What are the Risks of Using a Platform Not on RBI PA-CB List?

Using a cross-border payment platform that is not appropriately authorised can create legal and regulatory, financial and operational, and security and data risks for Indian businesses.

Skydo as a RBI PA-CB Compliant Platform for Indian Businesses

For Indian businesses looking for a regulated way to receive international payments, <a href="https://www.skydo.com/">Skydo </a>operates under the RBI’s PA-CB framework for inward cross-border transactions. Its features are:

Skydo is a platform suitable for Indian freelancers, agencies, service exporters, goods exporters and online sellers receiving international payments.

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SWIFT GPI (Global Payments Innovation) is a service launched in January 2017 to make cross-border payments faster, more transparent, and easier to track. It builds on SWIFT's existing messaging and correspondent-banking infrastructure instead of replacing it. With GPI, you get:

Also Read: <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT Money Transfer: Process, Fees, and Timeline.</a>

How Does SWIFT GPI Work for International Transfers?

SWIFT GPI works by associating each eligible cross-border payment with a Unique End-to-End Transaction Reference (UETR), which is a 36-character UUID when the payment is initiated.

The UETR remains associated with the payment message throughout its journey, thereby allowing participating banks to identify and track the transaction across the correspondent banking chain. Here is how it looks:

SWIFT reports that 75% of cross-border payments reach the beneficiary bank within 10 minutes. Nearly 60% are credited to end beneficiaries within 30 minutes, while almost 100% are credited within 24 hours, according to SWIFT's GPI performance data.

However, reaching the beneficiary bank does not necessarily mean the money has appeared in the recipient's account. SWIFT estimates that the last mile accounts for around 80% of a payment's total journey time. In India, local regulatory checks, foreign-exchange controls, manual processing, and other domestic banking requirements can contribute to this delay.

Bonus: If a payment arrives with a lower amount than expected, intermediary-bank charges may be one reason. Make sure you know the reasons why a certain <a href="https://www.skydo.com/blog/why-was-a-certain-amount-deducted-from-my-swift-payment">amount was deducted from your SWIFT payment</a>.

SWIFT GPI vs Traditional SWIFT Wire: What Actually Changes?

The core difference between a traditional SWIFT wire and SWIFT GPI is that both use the same underlying correspondent-banking network, but GPI adds end-to-end tracking, defined processing commitments, and greater fee transparency.

The main practical difference is visibility. A traditional SWIFT payment can move through several correspondent banks without the sender or recipient having a clear view of where it is or what has been deducted. GPI connects the payment to a UETR and provides participating banks with end-to-end tracking and confirmation.

Note that GPI's fee transparency does not mean that fees are fixed in advance. Each bank can still set its own charges. However, applicable deductions made during the payment journey become more visible to the parties tracking the payment.

One important change to the traditional SWIFT payment system is the completion of the ISO 20022 migration on 22 November 2025. The coexistence period between legacy MT messages and ISO 20022 messages for cross-border payments and reporting ended on that date, thereby making ISO 20022 the standard for cross-border payment instructions.

ISO 20022 uses richer and more structured payment data, which supports better reconciliation, automation, operational efficiency, and compliance. The ISO 20022 pacs.008 message is the modern equivalent of the legacy MT103 customer credit transfer message, although Swift's conversion services continue to support remaining legacy messages during the transition.

Bonus: Businesses looking to avoid the complexity of traditional SWIFT payments altogether can explore the <a href="https://www.skydo.com/blog/best-swift-payment-alternative">best SWIFT payment alternatives</a>.

The SWIFT GPI Tracker is a secure, cloud-based tracking system that provides participating financial institutions with visibility into the status and progress of GPI payments. It uses the UETR as the common reference for identifying and tracing a payment throughout its journey.

The Tracker brings together payment-status information, timing data, fee information where available, and delivery or credit confirmations, all linked to the same UETR.

UETR stands for Unique End-to-End Transaction Reference. It is a 36-character string formatted according to the UUID standard, for example, xxxxxxxx-xxxx-4xxx-yxxx-xxxxxxxxxxxx.

The UETR is generated when the payment is initiated and is passed through the payment chain unchanged. This allows participating banks to identify the same transaction throughout its journey rather than assigning a different tracking reference at each stage.

Note that UETRs are not limited to GPI transactions. Since the 2018 SWIFT Standards Release, relevant SWIFT payment messages must carry a UETR regardless of whether the bank is a GPI member.

UETR can be regarded as a courier tracking number for your money. It gives banks a common reference for identifying and tracing the payment as it moves through the banking chain.

As participating banks process a payment, relevant status updates and confirmations are made available to the GPI Tracker against the UETR. Banks can access Tracker information through supported interfaces, including APIs, depending on their implementation.

The Tracker can provide status information such as whether a payment is in progress, rejected, on hold, delivered, or credited. For example, ACSC (Accepted Settlement Completed) indicates that the account with the servicing institution has been credited.

GPI also supports the transmission of remittance information through the payment chain without alteration. This helps to preserve invoice references and payment notes as the transaction moves between banks.

The GPI Tracker is primarily a bank and financial-institution tool. End recipients such as Indian exporters and freelancers do not access the underlying Tracker directly through a public portal. They can see GPI tracking information only when their bank or financial service provider makes that information available through its own portal or service.

<a></a>What UETR Means for Indian Recipients

For Indian exporters and freelancers receiving international payments, the UETR is one of the most useful references for tracing a delayed payment. The recipient can give the UETR to their bank, which can use it to identify and trace the payment through the banking chain.

For compliance and reconciliation, Indian businesses may also receive separate inward-remittance documentation such as an FIRA from their bank. The FIRA and UETR serve different purposes, and hence, should not be treated as a replacement for the bank's remittance documentation.

You can ask your foreign client to share the UETR when the payment is initiated. Having the reference from the start makes it easier to trace the payment if a delay occurs.

Also Read: <a href="https://www.skydo.com/blog/is-ifsc-and-swift-code-same">Are the IFSC and SWIFT code the same</a>?

SWIFT GPI has several limitations around correspondent banking, payment costs and transparency, and access to tracking data.

GPI improves how a payment is tracked, but the underlying correspondent banking process can still introduce delays and dependencies.

GPI makes charges during the payment journey more visible, but it does not eliminate intermediary fees or give senders control over what individual banks charge.

GPI tracking is primarily designed for participating financial institutions, which means end recipients do not automatically get direct access to the Tracker.

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What Does It Mean to Streamline International Payments?

Streamlining international payments means reducing the time, cost, and manual work involved from sending an invoice to receiving and reconciling the payment. That includes the payment itself as well as the compliance and record-keeping that follow.

For an Indian exporter, this usually involves three parts:

Speed is only one part of the equation. Predictability matters too. Knowing the fee before a payment arrives, having the required documentation generated without repeated follow-ups, and being able to reconcile the payment easily can make the entire process simpler, even when the settlement time itself does not change.

<a></a>A 5-Step Workflow to Streamline International Payment Collection

A streamlined process connects payment collection with the documentation and reconciliation that follow it.

If chasing SWIFT copies and calculating the net amount after bank deductions is still part of your routine, <a href="https://www.skydo.com/">Skydo</a> brings payment collection and remittance documentation into one workflow. With virtual accounts, flat-fee pricing, zero hidden charges and automatic FIRA generation, the process requires minimal manual follow-up.

Why Do International Payments Feel Complicated for Indian Businesses?

International payments feel complicated for Indian businesses because they involve more than simply receiving money. Fees can vary, settlement can take time, compliance can require additional documentation, and the payment may pass through multiple banks and reporting systems before it is fully reconciled. Apart from this,

<a></a>Traditional Bank Wire vs. Modern Payment Aggregator

Consider a $5,000 payment from a US client to an Indian IT services agency. Here is how the difference can occur:

Tool Required to Streamline International Payments in 2026

Indian exporters need three types of tools to make international payments simpler in 2026; namely, virtual accounts for receiving money, transparent payment pricing, and automated compliance support. Together, they can reduce payment friction, make costs easier to predict and cut down on manual paperwork.

Additionally, FIRA should also be available automatically with the transaction where applicable, rather than requiring the exporter to contact the bank separately after every payment. This is where choosing an ideal <a href="https://www.skydo.com/blog/payment-gateway-for-international-payments-india">payment gateway for international payments in India</a> becomes a necessity.

What Are the Hidden Costs Eating Into Your International Settlements?

International settlements can cost more than the fee shown upfront. Foreign exchange (FX) spread markups, intermediary bank deductions, and receiving-bank charges can all reduce the amount an Indian exporter ultimately receives.

The receiving bank can add another charge. In addition to fees on the sender's side, Indian banks may apply charges for receiving an international wire. Due to the <a href="https://www.skydo.com/blog/international-bank-transfer-fees-freelancers-india">international bank transfer fees</a>, both these types reduce the amount that ultimately reaches the exporter.

The impact becomes significant as payment volume grows. On a $5,000 invoice, a 3% combined cost from FX spread and intermediary deductions means $150 lost on a single transaction. At 10 such payments a month, that adds up to $1,500 in potential costs. This is why exporters and freelancers need to ensure <a href="https://www.skydo.com/blog/avoid-hidden-international-transaction-charges">how to avoid hidden international transaction charges</a>.

How Does Compliance Fit Into the International Payment Workflow?

Compliance is part of the international payment workflow and not something to handle after the money arrives. For Indian exporters, keeping remittance records, export documentation, GST records, and payment details aligned can help prevent delays, open EDPMS entries and reconciliation problems.

For export payments, the Authorised Dealer (AD) bank plays a key role in reporting and documentation. The exact compliance requirements vary by the type of export and transaction, but the payment and its supporting records need to remain traceable.

How Does Skydo Help Streamline International Payments in 2026?

Skydo brings payment collection, transparent pricing, remittance documentation, and export compliance support into one platform for Indian freelancers, exporters, and agencies. Instead of managing each part of the international payment process separately, users can handle receiving payments and the related documentation in one place.

With <a href="https://www.skydo.com/">Skydo</a>, you know the cost upfront. It uses flat-fee pricing of:

There is no FX spread or intermediary deduction on Skydo's side, so the transaction cost is clear before the payment arrives. Additionally,

Skydo also has an India-based support team available through WhatsApp, calls, and text, so users can get help without visiting a bank branch. Moreover, there is no monthly fee or platform subscription charges. You pay when you receive a payment.

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Trade credit is a commercial arrangement whereby a seller allows a buyer to pay for goods or services after supplying the goods to them. With trade credit, the buyer is not under ‌pressure to make immediate payment, and therefore, can manage their cash flow better. While the seller uses it as a strategy to increase sales volume.

The seller provides ‌trade credit based on common payment terms. Some of these common payment terms include Net 30, Net 60, and Net 90. This means the buyer must pay the full invoice amount within 30, 60, or 90 days of the invoice date, respectively.

For example, an Indian exporter supplies goods worth $10,000 to a US customer on Net-60 terms. Until the exporter receives payment within the next 60 days, that $10,000 stays on the exporter’s books as a trade receivable. For the customer, it is a trade payable.

You might confuse trade credit with a bank loan; they are different. In trade credit, the seller gives the buyer time to pay for specific goods already delivered. In a bank loan, a bank provides cash that the buyer can use for any business purpose. They can use it for both domestic and international transactions, covering physical goods and professional services.

Trade credit begins when the buyer and seller agree on a specific credit period and payment terms. After they sign the agreement, the seller supplies the goods or delivers the services and issues an invoice that mentions the payment date.

The buyer receives the delivery without making any payment, but is contractually obligated to pay the total amount by the due date. The seller records the payment as a trade receivable in their books. If the buyer delays payment, the seller follows up and uses contractual remedies such as charging late-payment interest or suspending future orders.

Because the seller agrees to take on the buyer's default risk, they perform a credit evaluation before agreeing to these terms. They validate a buyer’s credibility using trade references, bank references, or third-party data from agencies like Dun &amp; Bradstreet to assess past payment behavior.

Once the credit limit and terms are approved, the seller fulfills the order. But if the buyer’s risk profile exceeds the seller’s threshold, the seller holds the order.

The invoice includes ‌payment terms like payment timeline and discount percentage for early payment.

If you’re an Indian exporter, you must also know the following conditions:

Practical example of trade credit in action:

A Bangalore-based SaaS agency signs a Net-60 contract with a UK client for £8,000 of product development work. The agency delivers the project on January 1 and issues the invoice the same day. Payment is contractually due on March 1.

During those 60 days, the agency is using its own money to pay employees and cover server costs. When the client pays, the funds arrive in the agency’s Indian bank account in GBP, then the bank converts GBP to INR. By the time the agency can use the money in hand, the total duration extends well beyond the 60-day contractual period.

Note: The RBI rolled back the 15-month repatriation window to 9-month in June 2026. This means, under the FEMA obligations, you must realize the export proceeds within months from the shipment date.

Open-account terms, net payment terms, instalment payments, bills of exchange, promissory notes, and deferred-payment letters of credit are the types of trade credit. Choosing the right type depends on the trust level between the seller and the buyer and the regulatory requirements of the countries involved.

In India, the RBI has specific rules for trade credit for imports into India. Under the RBI framework, trade credit is financing for imports through two sub-types:

These are regulated categories under RBI guidelines and are distinct from the general commercial meaning of trade credit used by exporters.

Recording trade credit depends on choosing between two primary accounting methods: cash accounting and accrual accounting. Based on the choice, the profitability and cash availability figures also shift.

Cash accounting records transactions only when actual payment occurs. So you get a simple view of actual cash movements, which makes it easier to track what is in the bank. However, it does not reflect the true financial position because credit transactions remain invisible. On paper, your business looks less profitable than it actually is during periods of high sales on credit.

Accrual accounting records transactions when they are incurred, i.e. at the time goods or services are delivered. For trade credit, this means the seller records the invoice as a trade receivable the moment he raises it. This method accurately represents a business's financial position and complies with Generally Accepted Accounting Principles (GAAP). You need more precise record-keeping, but you know the actual gap between revenue earned and cash received.

Larger businesses adopt accrual accounting because it provides a more complete financial picture and is required for regulatory and audit compliance.

For Indian exporters, accrual accounting is relevant. Revenue from a Net-60 international contract is recognized on the invoice date, but the cash does not arrive for at least 60 days. This creates a gap that the business has to manage to pay its own bills in the meantime.

Here’s a table to help you understand how a transaction and payment is recorded based on accrual accounting, assuming a trade credit of Net-60:

What Is the Difference Between Trade Credit, Export Credit and Trade Credit Insurance?

The differences between trade credit, export credit, and trade credit insurance are based on their applicability. Once you know the differences, you will know how each of these tools is effective in both protecting and growing your business.

Trade credit: It is the additional time the seller gives to the buyer to make the payment. The buyer receives the goods or services now and pays later, as per the agreed terms. The seller records the outstanding amount as a trade receivable.

Export credit: This refers to financing provided to an exporter to support the transaction. This includes <a href="https://www.skydo.com/blog/pre-shipment-credit">pre-shipment finance</a> or post-shipment finance. In pre-shipment finance, a bank provides a working capital loan to help the seller take care of procurement and packaging. In post-shipment finance, the seller presents their shipping bill and invoice to the bank, and the bank advances 80% to 90% of the amount instantly.

Trade credit insurance: This is an insurance policy that protects the seller from the risk of non-payment by a buyer. It takes care of credit risk by covering losses from buyer insolvency or protracted default.

Trade finance: Trade finance is a broader category that includes all these instruments, plus letters of credit, bank guarantees, and invoice discounting used to facilitate trade.

Let’s understand how these work together for an Indian exporter:

What Are the Advantages and Disadvantages of Trade Credit?

Trade credit offers advantages and disadvantages for both the buyer receiving it and the seller offering it.

Advantages for buyers (the foreign client in an export context):

• They don’t have to make the payment immediately, which frees up their working capital

• After receiving the goods, the buyer can use or resell the goods before paying.

• They can use their own money for procurement. No dependence on banks.

• Gives buyers greater purchasing flexibility with established suppliers.

• If they pay early, the seller might give them a discount.

Advantages for sellers (the Indian exporter):

• Exporters can be more competitive; foreign clients prefer suppliers who offer deferred terms.

• They can attract new customers and retain existing ones

• Support larger orders and repeat business.

• Strengthens long-term customer relationships through trust

Disadvantages and risks for sellers (Indian exporters):

• The buyer may delay payment or default entirely.

• The exporter has already incurred the cost, but has to bear the cash flow pressure until the buyer pays.

• Recovering overdue payments from foreign buyers is costly, time-consuming, and complex across jurisdictions.

• A USD or GBP receivable can change in INR value before payment is received. The exporter may receive less than expected.

• The exporter might face late fees or contractual consequences if they’re also a buyer on the other side of a supply chain.

• The average late fee for delayed payments is 1.5% per month. If the buyer doesn’t pay on time, trade credit becomes expensive quickly.

• Inability to pay on time damages the buyer's credit score or rating and hurts supplier relationships.

• The short-term nature of trade credit means it is not a substitute for long-term financing needs

After raising an invoice, how fast the payment reaches your Indian bank account is a separate problem. If you are already waiting 60 days for a foreign client to pay, you cannot afford slow settlement or surprise deductions on top of that. Skydo gives you real-time visibility, a free FIRC for every inward payment, and a flat fee.

<a href="https://www.skydo.com/">Visit Skydo</a>

What Is Trade Credit Insurance and Do Indian Exporters Need It?

Trade credit insurance protects a seller against financial losses caused if the buyer fails to pay for goods or services delivered on credit. It is more relevant for exporters using open-account or deferred-payment terms because the exporter carries the buyer’s credit risk for the entire duration of the credit period.

Trade insurance covers commercial risks like buyer insolvency or default. Some policies also cover political risks, such as war, revolution, or new government restrictions that prevent the buyer from transferring funds.

Trade insurance allows exporters to offer credit terms with greater confidence and protects their working capital during long cycles. It also helps exporters manage exposure to overseas buyers whose financial health is difficult to assess from India.

Indian exporters do not automatically need trade credit insurance just because they offer payment terms. Whether it makes sense for your business depends on:

ECGC (Export Credit Guarantee Corporation of India) is the primary provider of export credit insurance in India. They offer products designed to cover export receivables risks.

How Does Skydo Help Indian Exporters Manage Trade Credit Payments?

Skydo simplifies receiving international payments once the trade credit period ends. While Skydo does not provide the credit itself or insure the receivables, it operates on the payment-receipt side. It ensures that once a client pays; the funds reach the exporter quickly and at a predictable cost.

<a href="https://www.skydo.com/">Manage your international payments with Skydo</a>