It's the story of an evolving India-one where small businesses, freelancers, and exporters are making their mark in the global marketplace. But behind every success story is a challenge. For many Indian exporters, navigating the world of cross-border payments has been a daunting task. High fees, payment delays, and regulatory hurdles often stand in the way of realizing their global ambitions.
In this backdrop, Bengaluru-based Skydo, a cross-border payment company, has emerged as a key player aiming to simplify these challenges. With in-principle approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator-Cross Border (PA-CB), Skydo is poised to transform how Indian exporters handle their international transactions.
Let's dive into this unfolding story and understand the technical aspects that are reshaping cross-border payments.
A Helping Hand for Exporters: Payment Aggregators
Imagine you're a small business owner selling handmade products to customers worldwide. Receiving payments from these customers involves complex systems and hefty transaction fees. This is where Payment Aggregators (PAs) come into play.
A PA collects payments from buyers on behalf of sellers, ensuring the money reaches the seller's account efficiently. In the international arena, Payment Aggregators-Cross Border (PA-CB) specialize in facilitating transactions between buyers and sellers across countries.
Skydo's recent approval from RBI as a PA-CB means it can now help exporters like you receive payments seamlessly from foreign clients, removing a significant roadblock for small and medium enterprises (SMEs).
Behind the Scenes: In-Principle Approval
Every major journey begins with a first step. For Skydo, that step was securing in-principle approval from the RBI. This preliminary nod allows the company to start preparing its infrastructure and processes to meet the regulator's final conditions. Once fully approved, Skydo will join the ranks of established players like Amazon Pay and Cashfree Payments.
Skydo's Partnership with Amazon: A Gateway to Global Opportunities
Skydo's collaboration with Amazon is another game-changer. With Payment Service Provider (PSP) approval, Skydo can process payments for Indian exporters participating in Amazon's Global Selling program. This partnership ensures that Indian sellers can reach international customers without worrying about payment complexities.
For example, a textile exporter from Surat can now easily sell to customers in Europe or the US, receiving payments quickly and securely through Skydo's platform.
The Backbone of Compliance: EDPMS
Exporters often struggle with compliance, especially when it comes to tracking payments and documentation. The RBI's Export Data Processing and Monitoring System (EDPMS) is a platform designed to address this issue.
Skydo simplifies EDPMS compliance by offering tools that automate the process, ensuring exporters can focus on growing their business rather than getting bogged down in paperwork.
Beyond Payments: Comprehensive Solutions for Exporters
Skydo's vision extends far beyond just payments. The company plans to offer services like:
- Credit Solutions: Helping exporters access financing to fulfill large orders.
- Tax Compliance Tools: Simplifying GST and other tax requirements.
- Treasury Services: Managing currency fluctuations and optimizing cash flow.
These offerings form a complete financial ecosystem tailored to the needs of exporters.
A Vision for Growth
Since its inception in 2022, Skydo has already served over 12,000 exporters, processing $250 million in payments annually. Its ambitious plans include scaling payment volumes tenfold within two years, supporting import payments, and expanding trade corridors globally.
For instance, an exporter dealing with multiple markets like Southeast Asia, Europe, and Africa can rely on Skydo to handle payments, tax compliance, and even foreign currency management-all from a single platform.
Empowering SMEs and Freelancers
India's growing community of SMEs and freelancers is also set to benefit. By providing foreign virtual accounts, Skydo enables businesses to receive payments directly in foreign currencies. This eliminates the need for intermediaries, reducing costs and speeding up transactions.
Take the example of a freelance graphic designer in Bengaluru working for clients in the US and UK. With Skydo, the designer can invoice clients in dollars or pounds and receive payments directly, without worrying about conversion delays or high fees.
The Future of Cross-Border Payments
The journey of simplifying cross-border payments is far from over, but companies like Skydo are leading the way. By leveraging technology, regulatory approvals, and strategic partnerships, they are empowering Indian businesses to compete on a global stage.
As Skydo and others continue to innovate, the dream of a truly borderless marketplace for Indian exporters is becoming a reality. Whether you're a seasoned exporter or a freelancer taking your first steps into the international arena, the future of cross-border payments promises to be smoother, faster, and more accessible than ever before.
This isn't just the story of one company-it's the story of how India is embracing the world. The question now is: Are you ready to join the revolution?
CAclubindia
