Fintech
Stripe curbs its ambitions in India over the regulatory situation
Stripe, the world’s most valuable fintech startup, said Friday it will temporarily switch to an invitation-only model for signing up new accounts in India, calling the move “a difficult decision” as it navigates the country’s evolving regulatory landscape.
In a statement published on its website, Stripe said businesses in India will no longer be able to register new accounts through the company’s website and will instead have to request an invitation. The YC-backed startup, which competes with Cashfree and Razorpay in the country, will now focus on supporting a select number of businesses, particularly those focused on international expansion.
“The regulatory landscape in India continues to evolve, and our goal is to offer the same experience in India that we aspire to offer to all our users around the world,” Stripe said in the statement. “For example, allowing all new users to launch quickly with easy onboarding is a core Stripe feature that we can’t promise in India today.”
Stripe did not specify which regulatory change affected the company. The Reserve Bank of India, the country’s central bank, has introduced a series of stringent policy changes over the past two years that have impacted several financial services companies and startups.
The change is unlikely to have a material impact on Stripe’s profits given that the startup has limited operations in India and, for that matter, many Asian markets.
Stripe said it will remain committed to the Indian market for the long term and is working to build the infrastructure needed to support more users in the country by the second half of 2025.
Businesses in India planning to use Stripe for payment processing will need to explore alternative options in the meantime. Existing users will not be affected, Stripe said.