With UPI-enabled global checkouts, seamless compliance, and AI-driven automation, Cashfree is removing the friction in international ecommerce—positioning India as a cross-border retail powerhouse.
Global Goods, Local Barriers
From Korean beauty to London luxury, Indian consumers—especially in Tier II and III cities—are shopping globally more than ever. A recent Meta-Kantar study revealed that nearly half of India’s online shoppers made cross-border purchases in the past six months, driven by Gen Z and millennial aspirations.
Yet, checkout failures, currency confusion, and hidden charges continue to frustrate buyers and dissuade global sellers from targeting India.
Where the Checkout Breaks
For Indian consumers:
- International card payments often fail (up to 35–40% rejection rate)
- Foreign exchange (FX) markups and unclear customs duties increase total costs
- Lack of UPI or local payment options causes cart abandonment
For global merchants:
- Navigating India’s RBI and FEMA regulations is complex
- Onboarding requires local entities and licenses
- Settlement cycles are lengthy, hurting cash flow and operational agility
Cashfree’s Game-Changing Solution
In 2024, Cashfree Payments launched its Payment Gateway (PG) for International Merchants, a first-of-its-kind RBI-licensed offering under the PA-CB Imports framework.
Key highlights:
- Enables foreign merchants to accept INR payments via UPI, bank transfers, RuPay, Mastercard, and Visa
- No need to set up a local Indian entity
- Direct settlements to overseas accounts
- Fully compliant with RBI, FEMA, GST, AML/KYC norms
- AI-powered tools enable 85%+ checkout success, compared to ~60% on global card rails
Built for Indian Shoppers, Powered for Global Sellers
Cashfree’s platform mimics a domestic shopping experience, with:
- Local payment modes preferred by Indian users
- Transparent FX pricing and fee visibility
- No surprise markups or foreign transaction delays
- Checkout that works regardless of location or time zone
This design improves conversion rates, reduces abandoned carts, and increases customer trust—critical in a price-sensitive, digitally native market.
What Sets It Apart?
Unlike traditional global gateways, Cashfree:
- Absorbs chargeback dispute costs—protecting merchant margins
- Offers AI-driven invoice verification, with 98% of transactions auto-approved in under 2 minutes
- Supports asynchronous operations, aligning settlements and support across global time zones
This infrastructure helps global sellers launch in India within days, unlocking access to a market projected to exceed $753 Bn in cross-border ecommerce by 2033.
Real Impact: Success Stories
Startups and global merchants are already seeing tangible results.
“With Cashfree, we finally cracked the India market. UPI payments for cross-border transactions changed everything,” said Amit Patel, cofounder of Style Dotty, a global marketplace for beauty and fashion.
BoxPay, a cloud-based payments firm, echoed the sentiment:
“Cashfree eliminated regulatory barriers for our clients. We can now scale compliantly and quickly in India.”
This frictionless model is shifting India from a difficult market to a must-enter destination for international ecommerce brands.
The Bigger Picture: UPI Goes Global
Cashfree’s innovation marks a shift where India’s UPI, initially built for domestic digital payments, is now the rail for international commerce.
As ecommerce becomes borderless, Cashfree’s solution sets a precedent—where Indian fintech leads not only in building tech for India, but for the global consumer economy.
