Stripe Goes Invite-Only in India Amid Regulatory Changes

California-based payments giant Stripe has announced a significant shift in its operations in India, moving to an “invite-only” model temporarily. The decision is attributed to the evolving regulatory landscape in the country, which has posed challenges for Stripe in providing swift launches and seamless onboarding processes for new users.

In a statement addressing the move, Stripe highlighted the dynamic nature of India’s regulatory environment and its commitment to delivering a consistent user experience globally. However, the current regulatory constraints prevent Stripe from ensuring quick and easy onboarding for new users in India.

Effective immediately, new businesses in India seeking to join Stripe’s platform will no longer be able to sign up directly through the company’s website. Instead, they must request an invitation to gain access to Stripe’s services.

The shift underscores Stripe’s focus on catering to larger customers with established relationships, aligning its operations with the stringent Know Your Customer (KYC) norms mandated for domestic payment aggregator firms by the Reserve Bank of India (RBI).

Nitesh Singhal, founder of fintech consultancy Aryaa Advisors, weighed in on Stripe’s strategic move, emphasizing the challenges posed by KYC requirements in the domestic payment landscape. Singhal highlighted the allure of cross-border payments for Stripe, noting its potential for higher margins compared to domestic transactions.

Singhal further noted Stripe’s positioning as a significant player in cross-border payment aggregation, particularly as new regulations governing cross-border trade take effect.

Stripe plans to reopen its services to a broader audience in India by the second half of 2025, following necessary infrastructure upgrades to align with regulatory requirements.

In a blog post addressing the changes, Stripe acknowledged the temporary nature of the shift to an invite-only model in India. The company emphasized its commitment to supporting a select number of businesses, with a particular focus on facilitating international expansion.

Regarding the verification process, Stripe has instituted stringent measures to comply with RBI guidelines. These include verification of payout bank accounts used for settlement purposes and additional KYC details for sole proprietorship firms not registered.

The announcement comes after Stripe began slowing down onboarding new users in India since December 1 last year, alongside a thorough review of existing accounts.

Stripe’s Indian arm, operational since 2016, obtained final approval from the RBI to function as a payment aggregator in January. Stripe India accounts enable users to accept international payments in over 135 foreign currencies.