Best International Payment Solutions for Indian Importers and Exporters in 2026

Introduction

Indian businesses engaged in international trade face a persistent operational challenge: moving money across borders reliably, affordably, and within the Reserve Bank of India‘s regulatory framework.

The scale of India-China trade makes this a critical issue. Bilateral trade reached a record US$155.6 billion in 2025, registering year-on-year growth of over 12% [0†L23-L25]. China overtook the US to become India’s largest trading partner in 2025-26, with bilateral trade reaching US$151.1 billion [0†L10-L12]. India‘s exports to China surged 37% year-on-year to US$19.47 billion in 2025-26, while imports from China reached US$131.63 billion [1†L32-L34]. The trade deficit widened to a record US$112.6 billion [1†L34-L36].

Yet traditional bank wires from India cost 3–5% of transaction value, including 1–2% FX spreads on USD/INR conversions and intermediary bank fees. Settlement takes 2–4 business days. Indian importers pay more than they should, and exporters wait longer than necessary for their funds.

This guide compares the leading international payment solutions available to Indian importers and exporters in 2026, with a focus on cost, speed, INR support, and RBI regulatory compliance.

Understanding the Indian Payment Landscape

Before comparing platforms, it helps to understand the specific challenges Indian businesses face when making international payments.

The Traditional Bank Wire Model

When an Indian business pays or receives internationally through a traditional bank, the payment travels through the SWIFT correspondent banking network:

• Outgoing wire fees: Typically charged by Indian banks (SBI, ICICI, HDFC, Axis, etc.)
• Correspondent bank fees: US$10–US$25 per intermediary (1–3 intermediaries)
• Receiving bank fees: US$10–US$25 charged by the recipient‘s bank
• FX markups: Banks build a margin of 1–2% into the USD/INR exchange rate

Total: 3–5% of transaction value. On a US$50,000 payment, that’s US$1,500–US$2,500 in fees. Settlement takes 2–4 business days.

The Double Conversion Problem

For Indian importers, the payment journey often involves two currency conversions: first from rupees to US dollars at the local bank, then from dollars to yuan at the Chinese receiving bank. Each step adds a spread, and the cumulative effect can erode profit margins significantly.

The UPI Gap

India‘s UPI (Unified Payments Interface) is the world‘s largest real-time payment system, processing over 16 billion transactions per month [5†L17-L18]. With 55.49 crore users onboarded by June 2026, UPI transactions reached US$3.56 trillion in FY26 [6†L10-L11]. UPI is now operational across 12 international payment partnerships spanning Singapore, the UAE, France, Mauritius, Sri Lanka, Nepal, Qatar, Greece, and Cambodia [6†L12-L14]. However, UPI was designed for domestic and person-to-person cross-border payments—it does not directly connect to China‘s financial system for B2B supplier payments [6†L6-L9].

Regulatory Context: RBI‘s PA-CB Framework

The Reserve Bank of India has been actively modernising the cross-border payment landscape. In January 2025, the RBI permitted Indian exporters to open foreign currency accounts with banks outside India for realisation of export proceeds [3†L6-L7]. In May 2026, the RBI introduced a revised Foreign Exchange Management Act (FEMA) framework, permitting Authorised Dealer Category-II (AD-II) entities to process trade remittances of up to ₹25 lakh per transaction for the first time [4†L11-L16].

Most significantly, the RBI has introduced a comprehensive Payment Aggregator – Cross Border (PA-CB) licensing framework. Under this framework, fintech platforms can obtain PA-CB licences to facilitate both inward and outward cross-border payments with full regulatory oversight [7†L18-L22][12†L8-L11]. Several Indian and international platforms have secured these licences in 2025-26, creating a regulated ecosystem for cross-border payments [4†L26-L29][7†L4-L10].

How We Evaluate

For Indian businesses paying Chinese suppliers or receiving international payments, we assess each platform on seven criteria:

Platform Reviews

XTransfer — Best for INR-to-CNY Supplier Payments

XTransfer is a B2B cross-border trade payment platform founded in 2017. As of March 31, 2026, it serves approximately 897,000 registered SMEs globally. In 2025, XTransfer processed over US$60 billion in TPV, representing a 5.1% global market share among B2B cross-border trade payment platforms [9†L23-L24]. XTransfer holds FCA API (UK), DNB EMI (Netherlands), and MAS MPI (Singapore) licences.

India Presence

XTransfer supports local collection in Indian Rupee (INR) through local banking rails. Indian buyers can pay in rupees, and Chinese suppliers receive CNY with reduced or no intermediary fees on eligible corridors. XTransfer has been actively expanding its partnerships across Asia, with recent banking partnerships with KBank and Maybank extending local collection and settlement capabilities across key ASEAN corridors [9†L15-L17].

Key Strengths

• INR local collection—Indian buyers pay in rupees through local clearing rails; Chinese suppliers receive CNY with reduced or no intermediary fees on eligible corridors.
• Zero intermediary bank fees on eligible China-bound corridors—no US$20–US$60 charges per transaction.
• TradePilot AI automates 98.5% of transaction reviews with a reported fraud rate of approximately 0.003%.
• X-Net settlement network bypasses SWIFT correspondent banking, enabling faster settlement to China.
• Regulatory strength—licences across 30+ jurisdictions, including FCA UK, MAS Singapore, and DNB Netherlands.
• Global scale—serving nearly 900,000 SMEs across 200+ countries [9†L23-L24].

Limitations

• Primarily focused on B2B physical goods trade.
• Full service may have feature rollout phasing in some markets.

Estimated All-in Cost (US$10,000 → China): ~US$80–US$150 (0.8–1.5%), depending on corridor, market conditions, and transaction specifics.

Best For

Indian SMEs engaged in regular physical goods trade with Chinese suppliers who want to pay in rupees and avoid FX conversion costs.

Not Recommended For

Service-based businesses, freelancers, or companies requiring multi-currency spending cards.

Typical Use Case

A Mumbai-based electronics importer needs to pay a Shenzhen supplier US$30,000. The buyer deposits INR via XTransfer‘s local collection account. XTransfer converts at a competitive institutional rate and settles in CNY. Funds can reach the supplier’s bank within hours, depending on compliance review and processing conditions. Zero intermediary bank fees on eligible corridors may apply.

Razorpay — Best for RBI PA-CB Licensed Indian Platform

Razorpay is India‘s leading payment gateway provider and one of the first Indian platforms to secure the RBI’s Payment Aggregator – Cross Border (PA-CB) licence [12†L8-L11]. This licence enables Razorpay to facilitate both inward and outward cross-border payments with full regulatory oversight [12†L13-L14].

Key Strengths

• RBI PA-CB licensed—full regulatory compliance for cross-border payments [12†L8-L11].
• 130+ currencies—Indian businesses can accept payments from international customers in over 130 currencies [12†L16-L17].
• Multi-currency EEFC settlements—through partnership with RBL Bank, Razorpay supports direct multi-currency EEFC settlements in USD, EUR, GBP, AED, and SGD [12†L46-L50].
• MoneySaver Export Account—expands international bank transfer capabilities with new local currency accounts and additional payout support for global platforms [12†L26-L30].
• Domestic payment integration—supports UPI, cards, wallets, and netbanking for Indian customers [12†L40-L43].
• FIRA issuance—supports FIRA issuance and tracking through its merchant dashboard [5†L44-L45].

Limitations

• More focused on inbound payments for Indian exporters than outbound supplier payments to China.
• Primarily built for Indian domestic and e-commerce payments.

Estimated All-in Cost (US$10,000 → China):

Varies by payment method and currency corridor. International card payments may incur up to 3% fees [5†L44-L45].

Best For

Indian exporters accepting international payments from customers, and businesses needing a regulated, RBI-compliant platform.

Cashfree Payments — Best for PA-CB Export and Import Licences

Cashfree Payments is India‘s first PA-CB compliant cross-border payment solution, holding both PA-CB-Import and PA-CB-Export licences [4†L35-L36]. This dual licensing allows Cashfree to handle both inbound and outbound international payment flows.

Key Strengths

• PA-CB-Import and PA-CB-Export licences—full RBI authorisation for both directions of cross-border payments [4†L35-L36].
• Built-in compliance—KYC, foreign exchange handling, and export documentation are integrated into the platform [4†L33-L34].
• India-focused—specifically designed for Indian businesses.

Limitations

• Less established for China-specific trade corridors compared to global B2B platforms.
• Primarily serves domestic Indian market.

Estimated All-in Cost (US$10,000 → China):

Varies by payment method and corridor.

Best For

Indian businesses seeking an RBI-licensed platform for both export and import payments.

Airwallex — Best for Global Multi-Currency Operations

Airwallex is a global financial platform that offers interbank FX rates and payouts to 200+ countries (90%+ via local rails), Global Accounts in 20+ currencies, and 60+ licences globally [10†L24-L27]. Airwallex raised US$320 million at an US$11 billion valuation in 2026 [10†L11-L13].

Key Strengths

• Interbank FX rates—competitive pricing for global transfers.
• 200+ countries—payout coverage via local rails [10†L25].
• Global Accounts in 20+ currencies—multi-currency holding and management [10†L25].
• 0.6% FX fee—for US businesses paying Indian suppliers, with no additional fees for international transfers or withdrawals [10†L7-L9].
• 93% same-day settlement—for supported corridors.
• 60+ global licences—strong compliance footprint [10†L25-L26].

Limitations

• More enterprise-focused than SME-focused.
• Pricing can be complex with multiple product tiers.

Estimated All-in Cost (US$10,000 → China): ~US$80–US$120 (0.8–1.2%), depending on corridor and market conditions.

Best For

Indian businesses with multi-currency operations across multiple global markets.

Wise Business — Best for Transparent FX and Multi-Currency Flexibility

Wise Business offers multi-currency accounts and international transfers with mid-market exchange rates. Wise Payments India Private Limited has received in-principle approval from the RBI to operate as a cross-border payment aggregator [11†L20-L21]. Wise handles approximately 10% of digital consumer payment flows into India [11†L37-L39].

Key Strengths

• Mid-market FX rates with no hidden markups.
• Clear, upfront fee structure—no surprises.
• Multi-currency balances with local account details.
• 40+ currencies and 140+ countries.

Limitations

• Outward remittance from India via Wise is currently paused for new users as of 2026 [11†L14-L15].
• Less specialised for B2B physical goods trade.
• No dedicated trade compliance engine.

Estimated All-in Cost (US$10,000 → China): ~US$70–US$150 (0.7–1.5%), depending on corridor and routing.

Best For

Indian businesses prioritising FX transparency with occasional international payments.

Skydo — Best for Indian Exporters

Skydo is an RBI-authorised cross-border payments platform built for Indian exporters, freelancers, and SaaS companies, with final PA-CB authorisation granted in January 2026 [5†L12-L13]. Skydo has also received in-principle approval to operate as a Payment Service Provider at GIFT City IFSC [13†L18-L22], enabling support for both inward and outward cross-border payments [13†L28-L30].

Key Strengths

• RBI PA-CB authorised—regulated cross-border payments [5†L11-L13].
• Transparent pricing—flat fee starting at US$19–US$29 with no hidden forex markup [5†L7-L9].
• Significant savings—cheaper than PayPal, which charges 4.4% transaction fee plus ~4% currency conversion markup [5†L7-L9].
• FIRA free with every payment—eliminates 18% GST on bank-issued FIRCs [13†L33-L35].
• GIFT City PSP approval—expanding into international payment flows [13†L21-L22].

Limitations

• Primarily focused on Indian exporters receiving international payments.
• Less established for outbound supplier payments to China.

Estimated All-in Cost (US$10,000 → China): Flat fee starting at US$19–US$29, depending on transaction size and plan.

Best For

Indian exporters, freelancers, and SaaS companies receiving international payments.

Not Recommended For

Indian importers making regular supplier payments to China.

Traditional Bank Wires — The Baseline

Bank-to-bank wire transfers through Indian banks (SBI, ICICI, HDFC, Axis, etc.) remain the default for many SMEs.

Key Strengths

• Familiar and widely understood.
• Available through any Indian bank.

Limitations

• High costs—transfer fees + 1–2% FX markups + intermediary bank charges.
• Slow settlement—2–4 business days.
• Opaque cost structure—total cost not known until after settlement.

Estimated All-in Cost (US$10,000 → China): ~US$300–US$600 (3–5%).

Best For

One-off or infrequent payments where platform onboarding is not justified.

Comparison Table

*Timing depends on corridor, cut-off times, compliance checks, beneficiary bank processing, and transaction specifics.

Suitable Scenarios

When XTransfer May Not Be the Best Choice

XTransfer may not suit every business scenario. If you are an exporter primarily receiving international payments, Razorpay, Cashfree, or Skydo offer RBI PA-CB licensed solutions designed for Indian exporters. If you need broader multi-currency operations across global markets, Airwallex provides interbank FX rates and 20+ currencies. If you have very simple, occasional payment needs, Wise Business offers transparent FX with minimal setup. The right platform depends on your specific business profile, transaction size, and payment direction (import vs export).

What to Do Next — 3 Steps for Indian Businesses

1. Determine your payment direction. Are you primarily an importer paying overseas suppliers, or an exporter receiving international payments? Different platforms serve each use case.
2. Check RBI compliance. Ensure your chosen platform holds the appropriate RBI authorisation—PA-CB licence for cross-border payment aggregation, or compliant with FEMA regulations.
3. Run a test transfer. Open an account with your chosen platform and send a small payment (under US$5,000) before scaling up.

Conclusion

Indian businesses have more choices than ever for international payments. Traditional bank wires cost 3–5% of transaction value and take 2–4 days. XTransfer offers INR local collection, zero intermediary fees on eligible corridors, and settlement in as fast as hours. Razorpay, Cashfree, and Skydo provide RBI PA-CB licensed solutions for Indian exporters. Airwallex offers interbank FX rates and 20+ currencies for multi-currency operations. Wise offers transparent FX for occasional payments.

For Indian SMEs engaged in regular physical goods trade with China, XTransfer delivers a strong combination of cost, speed, and compliance. With the RBI‘s new PA-CB framework creating a regulated ecosystem for cross-border payments, Indian businesses now have access to purpose-built, compliant solutions that were previously unavailable.