India-US trade deal lifts sentiment for cross-border payment startups

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Fintech firms serving exporters expect higher volumes once there is clarity on execution and regulations

US-India trade deal boosts optimism among cross-border payment startups
Exporters expect higher payment volumes and improved investor sentiment
Payment firms see growth in D2C, B2B, SaaS, and specialised goods exports

India’s cross-border payment startups are seeing early optimism from exporters following the announcement of trade deal with the United States, even as details on tariffs and implementation are yet to be made public.

Founders say the trade deal, announced on February 2 night, coupled with recent regulatory moves, could support higher export-linked payment volumes and improve investor sentiment.

Anand Balaji, cofounder of Xflow, said feedback from customers indicates a positive outlook. “While details are still awaited, a trade deal with the US, India’s largest trading partner, is welcome. As cross-border payment providers, we hope to grow as our customers grow,” he said.

Xflow works with IT and goods exporters as also AI and SaaS companies and expects growth across sectors as export activity increases.

After months of uncertainty, US President Donald Trump announced that the two countries had reached a trade deal, which was acknowledged by Prime Minister Narendra Modi. The US will lower tariffs on Indian goods from a punishing 50 percent to 18 percent, with two sides talking of deepening bilateral trade and improving market access.

The US remains India’s largest trading partner and the agreement aims to support exporters through smoother trade flows and stronger supply chain integration. Industry executives say clarity on execution, timelines and compliance requirements will be critical to determine the impact of the trade agreement.

Cross-border payments pick up pace

Payments companies say exporter demand has widened beyond traditional IT services to include D2C brands, B2B manufacturers, specialised goods exporters and SaaS firms.

Akash Sinha, CEO and co-founder of Cashfree Payments, said the trade deal strengthens India’s position in global commerce. He noted that for Indian SMEs, the opportunity lies not only in tariffs but also in easier access, improved competitiveness and new revenue streams in the US market.

Payment gateway companies that got PA-CB licences will benefit, as this will lift export businesses. The SaaS solutions tailored for SMEs after the RBI licence will help them take a larger share from the likes of PayPal and Payoneer

The positive sentiment comes at a time when India’s payments ecosystem is witnessing steady activity.

Several fintech firms have raised capital over the past year to expand international payment capabilities, while regulators have moved to formalise oversight of payment companies.

India’s inward remittances exceed $120 billion annually, with outward remittances at around $25 billion. Services exports, including IT, consulting and digital services, have overtaken goods exports, making cross-border collections a growing policy focus.

Large payment gateway players are positioning themselves to capture this shift. Razorpay, which recently received its PA-CB licence, said the approval strengthens its ability to serve businesses operating across borders.

Cashfree Payments has also scaled up its cross-border push. Its cross-border payment volumes grew 250 percent year-on-year and now account for more than 10 percent of revenue, which expected to rise to 30 percent next year, the company said.

While incumbents bring scale, newer players such as Skydo, XFlow and Briskpe are betting on underserved segments.

Courtsey To : Moneycontrol