Airpay Payment Services has received the Reserve Bank of India’s approval to operate as a cross-border payment aggregator, giving it a complete set of licences under the unified payment aggregator framework. This development places the company among a small group of fully regulated entities that can manage domestic and international payments under a single compliant architecture. Airpay RBI cross-border approval nod arrives at a time when Indian exporters, SaaS firms, digital merchants and D2C brands are expanding their international presence and need a stable, compliant and fast payment infrastructure to support global transactions.
With this approval, Airpay RBI cross-border approval now holds licences across online (PA-O), physical/POS/QR (PA-P) and cross-border (PA-CB) segments. The company expects this expansion to increase processing volumes by 30 to 40 percent over the next six to twelve months. It also anticipates that cross-border payment flows will contribute more than 20 percent of its revenue, helped by a plan to onboard over 50,000 merchants, including exporters, D2C brands, subscription platforms and SaaS companies.
Founder Kunal Jhunjhunwala said the approval strengthens Airpay’s ability to support companies that are operating globally and need reliable payment systems. The RBI’s cross-border framework, which focuses on governance, escrow systems and forex compliance, is expected to reduce settlement risks for businesses.
Founded in 2012, Airpay has built a full-stack payment infrastructure across UPI acquiring, QR, payment links, PoS and merchant lifecycle management. This new authorisation moves the company closer to other full-stack players such as Razorpay, PayU, Easebuzz and Pine Labs. The development also reflects broader trends in fintech, where regulated cross-border payments are becoming a significant growth sector.
The Airpay RBI cross-border approval strengthens India’s growing fintech ecosystem by giving businesses a trusted, regulated partner for their global payments as international trade and digital commerce continue to rise.
1. Understanding the Airpay RBI cross-border approval
The Airpay RBI cross-border approval marks an important milestone for India’s fintech industry. The approval allows Airpay to operate as a cross-border payment aggregator, making it part of a limited group of companies permitted to process domestic and global payments on one regulated stack. The milestone also reflects the rapid shift of Indian businesses toward global markets as exporters, SaaS firms and digital brands expand their international footprints.
This move also comes during a period where startup news, tech news, industry trends and business transformation dominate India’s financial landscape. The approval fits within growing demands for disruptive tech, fintech innovations and full-stack payment solutions.
2. Background of Airpay and Its Journey
2.1 The Early Years of Airpay
Airpay was founded in 2012 as a digital payments platform aimed at solving acceptance and settlement problems for Indian merchants. The company started as a payment gateway serving early-stage startups, SMEs and retail businesses. Over the years, it added new services such as UPI acquiring, payment links and QR capabilities. Its journey mirrors the broader rise of Indian startups and the fintech ecosystem.
2.2 How Airpay Grew Into a Full-Stack Payment Provider
Airpay expanded into physical payment infrastructure, onboarding merchants using PoS devices and QR technology. As the company grew, it added merchant lifecycle management and enterprise collections, helping it serve large businesses and D2C brands. This growth came during a boom in venture-backed startups, fintech expansion, global funding and tech disruption across India.
2.3 Founders and Leadership
Founder Kunal Jhunjhunwala has been instrumental in shaping Airpay’s strategy, focusing on compliance-first growth. His leadership helped Airpay earn trust among enterprise clients and become a reliable player in India’s fast-evolving fintech market.
3. What Problem Does Airpay Solve?
3.1 Domestic Payment Fragmentation
Indian merchants often need multiple partners for online, offline and global transactions. This creates operational friction, compliance issues and settlement delays.
3.2 The Global Transaction Challenge
Companies that operate internationally need reliable payment channels. Many SMEs struggle with forex compliance, bank delays and unclear settlement processes.
3.3 How the Airpay RBI cross-border approval Solves These Issues
With this approval, Airpay becomes a single regulated platform for:
- Collections
- Payouts
- Settlements
- Domestic and international transactions
This reduces compliance burdens and increases transaction reliability.
4. Airpay’s Working Model
4.1 Multi-Rail Payment Infrastructure
Airpay integrates UPI, cards, net banking, QR, PoS devices and payment links into one ecosystem. This provides a unified payment experience for enterprises.
4.2 Merchant Lifecycle Management
The company supports:
- Onboarding
- Risk assessment
- KYC
- Settlement
- Dispute handling
This full-stack model matches industry demands for startup platforms offering end-to-end solutions.
4.3 Cross-Border Payment Processing
With the new PA-CB licence, Airpay can now:
- Accept payments from foreign customers
- Settle funds to Indian merchants
- Handle outward remittances under regulation
The compliant structure reduces settlement risks and forex-related issues.
5. Revenue Model of Airpay
- Transaction Fees: Airpay earns revenue through merchant discount rates, settlement charges and channel fees.
- Enterprise Solutions: Large businesses pay for integrated payment solutions and risk management tools.
- Cross-Border Payments: New revenue streams come from:
- Forex markups
- Cross-border transaction fees
- Subscription models for SaaS and global D2C merchants
This aligns with growth strategies seen among successful startups in fintech.
6. Funding and Financial Growth
Although Airpay has not publicly disclosed major funding rounds, it has grown sustainably. Its expansion into global payments signals a strategic shift toward higher-margin services. This matches broader industry trends among emerging startups and venture-backed startups focusing on stability and regulatory compliance.
7. Industry Trends Driving This Approval
- Growth of Cross-Border E-commerce: Indian exports in D2C brands, handicrafts and digital subscriptions are rising.
- SaaS Expansion from India: India is a major SaaS hub. Global collection systems are a core need.
- Regulatory Push for Compliance: The RBI wants all payment flows under strict governance. The PA-CB framework brings clarity to merchants and aggregators.
- Fintech Competition: The industry includes Razorpay, PayU, Pine Labs and Easebuzz. With this approval, Airpay joins a regulated elite group.
8. Competitor Landscape
8.1 Direct Competitors
- Razorpay
- PayU
- Pine Labs
- Easebuzz
These companies also hold multi-category RBI licences.
8.2 Indirect Competitors
- Banks
- International gateways
- Forex platforms
- Payment processors like Stripe (limited by regulations in India)
The Airpay RBI cross-border approval helps Airpay differentiate itself as a full-stack domestic and global payment provider.
9. Impact on Indian Businesses
- Exporters and Traders: They get fast settlements and reduced compliance risks.
- SaaS and Subscription Companies: Recurring payments from global customers become smoother.
- Digital Brands and D2C Startups: International expansion becomes easier under a regulated framework.
- SMEs: They gain access to global markets with minimal operational overhead.
10. Regulatory Context: Understanding the PA-CB Framework
- RBI’s Goals: The RBI wants transparent, reliable and compliant cross-border flows.
- Key Requirements
- Escrow management
- Forex compliance
- Governance structures
- Settlement timelines
- Merchant Benefits: The framework brings clarity, reduces risks and supports business growth.
11. Market Opportunity and Growth Potential
- India’s Cross-Border Market Boom: India’s cross-border digital commerce is rising. Exporters and online brands are scaling quickly.
- Fintech Ecosystem Expansion: More Indian startups are using tech innovations, disruptive tech and growth strategies to move global.
- Airpay’s Future Scale: 30–40% processing volume growth and 20% revenue contribution show massive potential.
12. Learning for Startups and Entrepreneurs
- Importance of Regulation: Startups must comply early to build trust and scale responsibly.
- Solve Real Problems: Airpay succeeded because it fixed payment issues for SMEs and enterprises.
- Build Long-Term Infrastructure: Sustainable growth comes from solving merchant pain points, not chasing trends.
- Understand Industry Trends: Cross-border commerce, fintech expansion and digital payments show where future ideas lie.
- Focus on Trust: Startups that invest in compliance win long-term partnerships.
FoundLanes
foundlanes.com highlights major stories shaping the Indian and global startup ecosystem. This approval for Airpay reflects rising fintech innovation, cross-border commerce and the growing demand for compliant payment systems. As Indian businesses expand overseas, platforms like The Startups News will continue to share insights, founder stories, startup news, global funding updates, and tech disruption trends that help entrepreneurs stay ahead.