#Types of Cross-Border Payments and Players in India

As an exporter, you will know that cross-border payments are the lifeblood of your business. You must understand the nuances of the different types of cross-border payments and players in India. When you accept international payments to India, the role that an international trade platform plays also becomes relevant.

Let’s explore what cross-border payments mean, who the players in India are, and how to approach them for maximum benefit.

When the entities making and receiving the payments are based out of different countries, these payments are referred to as cross-border payments. In the Indian export context, the exporter is based in India, and the purchaser will be abroad. Since these transactions have specific inward remittance guidelines and unique aspects, it is crucial to understand all the nuances. For instance, exporters must abide by the FEMA guidelines to accept payments for their international transactions.

What are the types of cross-border payments?

1. Bank or wire transfers: One of the most used networks for international bank transfers, SWIFT (Society for Worldwide Interbank Financial Telecommunications) facilitates crossborder payments. Transfers from one bank to another are considered safe and are used for large sums. However, these transfers can be expensive due to the foreign exchange margins and the fees levied by the banks

2. RTGS or Real-Time Gross Settlement: This system helps with instant fund transfers between banks and is often used for international transfers. In India, you can access this facility from banks that offer services related to cross-border payments.

3. Digital payment platforms: The rise of fintech has provided options like Wise and Paypal, which are digital platforms. These enable users to transfer money across borders with lower fees, making them attractive.

4. Debit and credit cards: Today, many business folks have access to international debit and credit cards via Visa, American Express, and Mastercard, which allow you to make international payments. These come in handy when speed is of utmost importance. However, you must pay the exchange rate markups and conversion fees to avail of this option.

5. Prepaid cards: Forex prepaid cards are preloaded with foreign currency that can be used to pay for global or cross-border transactions. BookMyForex and Niyo Global are two companies that provide these forex cards to facilitate international payments.

6. Demand draft or cheques: A cheque payment or payment through demand drafts is a declining trend for payment, but it is still used in some cases. However, these methods are slow and less efficient than their digital alternatives.

7. International money orders: This is another old-school payment method used to transfer smaller amounts, especially where the banking network is not well-developed.

Here are some key players in cross-border payment in India: banks, fintech companies, card networks, government platforms, and cryptocurrency platforms.

Players and What They Offer

Players	Names	What They Offer
Banks	State Bank of India HDFC Bank ICICI Bank Axis Bank	1. Remittance services 2. International wire transfers 3. Forex management
Fintech Companies	Paypal Wise Instarem Payoneer RazorpayX LeRemitt	1. Easy, digital cross-border payments 2. Transparent, low-cost global transfers 3. Competitive foreign exchange rates 4. Services for various players 5. Facilitates inward remittance with minimal effort
Card Networks	Visa Mastercard Rupay	1. Global payment support via credit and debit cards 2. Rupay collaborates with international networks.
Government Platforms	Export Credit Guarantee Corporation of India (ECGC) Reserve Bank of India( RBI) Exim Bank of India	1. Supports exporters with payment insurance and risk mitigation 2. Regulates foreign exchange and international remittances 3. Helps cross-border payments via lines of credit

Attractive terms, easy operation, and continuous support are some of the foundational pillars at LeRemitt. Our entire team works tirelessly to ensure we offer maximum support to exporters. To learn more, click here.