Designing cGMP Stainless Steel Process Systems
One of the most common questions I get from founders and small businesses is:
“How do I automate payouts in India — and can I also pay people abroad with the same system?”
If you’ve searched for answers online, you’ve probably seen names like Cashfree (cashfree.com), Razorpay (razorpay.com), or PayPal (paypal.com/in/home). They all offer payout services — basically APIs that let businesses send money to vendors, gig workers, or customers automatically.
But here’s the catch:
These payout services work only within India.
Why Payouts Are India-Only
This limitation isn’t because providers are lazy or don’t want more business. It comes down to RBI (Reserve Bank of India) regulations.
- If you’re an Indian-registered company, you can automate payouts only to Indian bank accounts or wallets.
- For international payouts, you run into compliance barriers under FEMA (Foreign Exchange Management Act). RBI simply doesn’t allow blanket API-driven payouts outside India.
That means if you’re running, say, a gig marketplace or SaaS platform in India, you can’t just plug in Cashfree and start sending automated payments to freelancers in the US or Europe.
What About Alternatives Like Payoneer or Wise?
Naturally, you might think: “Okay, can’t I just use Payoneer, Wise (formerly TransferWise), or Stripe?”
I’ve gone back and forth with all of them:
- Payoneer (payoneer.com)
- Wise (wise.com)
- Stripe (stripe.com)
The answer is the same: unless you’re a large-volume customer, they don’t support automated international payouts for Indian entities.
For very high-volume businesses, some providers might build custom arrangements. But for most startups or early-stage companies, it’s simply not an option.
Why This Is a Pain for Startups
If you’re building a product that requires payouts — for example:
- A gig platform paying workers
- A cashback or rewards app
- A marketplace that settles with sellers
— then your model is essentially capped at India-only unless you register abroad.
This is particularly frustrating because:
- Domestic payout APIs are fast and reliable. (Cashfree, RazorpayX, and Paytm Payouts are excellent for Indian flows.)
- But you hit a wall when trying to scale internationally.
So What Are Your Options?
Right now, Indian businesses have three paths:
- Stick to India-only payouts. If your user base is Indian, providers like Cashfree Payouts or RazorpayX are solid choices.
- Set up a foreign entity. If you absolutely need international payouts, many founders register in the US, Singapore, or UAE to unlock global rails. This isn’t cheap or simple, but it bypasses RBI’s restrictions.
- Negotiate as you scale. At very high volumes, providers like Stripe or Wise may accommodate you with custom solutions. For early-stage businesses though, this is out of reach.
Final Thoughts
The short version is: payout automation in India works beautifully, but only within India. If your business model requires paying people abroad, you’ll need to plan for either registering overseas or restructuring your payout logic.
It’s not the answer most founders want to hear, but it’s the reality under current RBI rules. Hopefully, this saves you the same week of research and dead-ends I went through.