Due to regulatory changes, US payments giant Stripe will be available in India by invitation only

California-based payments giant Stripe has temporarily switched to an invite-only service in India, citing the changing regulatory environment in the country and its current inability to offer quick launches and easy onboarding for new users.

Stripe’s move is in line with the stringent Know Your Customer (KYC) standards for domestic payment aggregator companies, which requires them to overhaul their existing KYC practices.

“The regulatory landscape in India is constantly evolving and our goal is to provide the same experience in India that we want to offer to all our users around the world. “For example, enabling all new users to get up and running quickly and easily onboard is a core feature of Stripe which we cannot promise in India today,” the company said.

Effective immediately, new businesses in India will no longer be able to sign up for a Stripe account through the company’s website and will instead need to request an invitation.

Compliance with RBI rules

The latest findings indicate that Stripe is limiting its PA business to larger clients with long-term relationships to ensure that companies are complying with RBI norms.

“Cross-border payments have a higher margin than domestic payments. Domestic business in India is a high-risk, low-reward business, and KYC vulnerabilities can cause companies to fail. Stripe will do well by leveraging its strengths in international acquisitions and exclusively powering Indian companies focused on the international market,” said Nitesh Singhal, founder of fintech consultancy Aryaa Advisors, which focuses on cross-border payments. Singhal was previously head of UPI for the Axis Bank.

He further added: “This prioritization shows their aspiration to be a big player in the intermediation of cross-border payments (PA-CB) once the new cross-border trade regulations come into force.”

According to Stripe, it plans to reopen its services to the wider public by the second half of 2025, once necessary infrastructure upgrades are completed.

“We have made the difficult decision to temporarily offer our services in India by invitation only… For now, we will only be able to support a select number of companies with a focus on international expansion,” the company said in a blog post.

“Stripe may choose to have a waiting period rather than deal with the hassle of immediate onboarding. Currently they and most gateways seem to accept companies with Pvt. Ltd. or its equivalent that wishes to accept international payments. Many accounts created before the guidelines were introduced did not comply with the current KYC requirements and will therefore be closed,” says the founder of the payments company.

Strict verification

Stripe began “slowing down” onboarding of new users as of December 1 last year, in addition to carefully reviewing currently registered accounts.

According to sources, the company suddenly closed multiple accounts run by a single user and asked them to create new ones.

In an April 18 email seen by Moneycontrol, Stripe said it is making some changes to the way it onboards new users in India to comply with RBI guidelines.

“We would like you to know that Stripe is making some changes to the way we onboard new users in India to ensure that our long-term product offerings and onboarding processes are in line with the specific needs of businesses in India,” the email said.

The company ordered verification of bank accounts for withdrawals used for settlement purposes along with proof of business activity in the case of unregistered sole proprietorships.

Moreover, additional KYC details such as Permanent Account Number (PAN), email addresses and company titles of those opening the account, URLs containing the terms and conditions of the service provided, including refund and return deadlines, have also been made mandatory.

Stripe’s Indian unit, present in India since 2016, received final approval from the RBI in January to operate as a payment aggregator (PA). Stripe India accounts allow users to accept international payments in over 135 foreign currencies.