(Image Source: Skydo)
Skydo received final approval from the Reserve Bank of India to work as a Cross-Border Payment Aggregator. This license lets the company process overseas payments for small and medium businesses without exporters needing separate approvals or complex bank accounts for each deal.
The RBI created these payment aggregator rules in 2023 to organize companies that handle international money transfers. Skydo is now among the first group of firms cleared to operate under this system. The approval means standardized processes for customer checks and payment settlements for cross-border business.
What Skydo Cross-Border Payment Services Do
How the Payment System Works
With the RBI license, Skydo can sign up exporters and importers directly. Payments settle into regular Indian bank accounts in rupees within one or two business days. Businesses no longer need Import Export Codes or special foreign currency accounts for transactions.
The service covers these main features:
- Payments settle to INR accounts in T+1 or T+2 days
- Standard customer verification follows RBI rules
- Accepts dollars, euros, pounds, and UAE dirhams
- Connects with UPI, NEFT, and RTGS for incoming funds
- Automatic reports go to RBI’s financial monitoring unit
Transaction costs drop 60-70 percent compared to bank wire transfers. This happens because intermediary bank fees disappear and settlements happen faster.
Who Skydo Works With
Skydo mainly serves small and medium businesses doing e-commerce exports, manufacturing sales overseas, and service exports. The platform links with sites like Amazon, eBay, and Etsy. It also handles business-to-business trade payments. Current yearly transaction volume passes $500 million for over 50,000 small businesses.
Before this license, Skydo faced growth limits under different export rules. The full approval removes those restrictions and opens general trade payments beyond just online sales.
What the RBI License Means for Skydo
Competition with Banks
Skydo can now directly challenge big banks that offer trade payment services. The company offers faster customer signup (5 minutes instead of 2-3 weeks), clear pricing, and connections to accounting software like Zoho and Tally. Banks charge 1-3 percent plus extra fees; Skydo aims for 0.5-1 percent total cost.[5]
Skydo also offers its payment system to banks as a white-label service. Early deals exist with Federal Bank and RBL Bank.
Growth Plans After Approval
Skydo expects transaction volumes to triple to $1.5 billion by end of 2026. The company raised $15 million in recent funding from Lightspeed Venture Partners. This cash covers operations for two years. Hiring plans include 100 people in compliance and sales across Delhi, Bangalore, and Mumbai.
Expansion targets UAE and Singapore for payment processing. These locations serve the $100 billion trade between India and Middle East countries.
RBI Rules Skydo Must Follow
The RBI requires payment aggregators to meet these standards:
- Minimum net worth of 50 crore rupees (Skydo has 75 crore)
- Yearly technology security checks
- Maximum $10,000 per transaction at first
- Anti-money laundering registration
- 3 percent capital buffer on outstanding amounts
Skydo completed an 18-month approval process with three RBI reviews of technology, management, and finances. The central bank tested the system with 5,000 business clients.
Cross-Border Payment Market Size
India processes $250 billion in overseas payments each year. Small and medium businesses handle 40 percent of volume but use digital services for only 10 percent of deals. Banks control 85 percent of the market; newer companies hold 15 percent but grow 80 percent yearly.
Other firms like Wise, PayPal, and Razorpay work under similar RBI rules. More guidelines on sending money overseas should come in early 2026.
Skydo’s license shows RBI balancing new technology with banking system safety. Small businesses gain easier access to international payments and lower costs.
