fintech cross border payments

In response to the growth of regional and cross-border e-commerce, dLocal said today that it has expanded its cross-border payment platform to India. The San Francisco-based fintech firm also said it opened an office in New Delhi.

The company said with an office in the country, it now “enables global e-merchants to accept and remit payments to India using all the locally relevant payment methods thus reaching hundreds of millions of connected consumers, contractors and freelancers who are accelerating the digital transformation in India.”

The expansion in India comes as a growing number of consumers peruse online marketplaces for a variety of products and services. Cross-border payment platforms such as what dLocal offers facilitates the process on both sides of the transaction by allowing the seller and purchaser to pay and be paid in their local currency.

DLocal said launching in India reduces “numerous payment-related barriers between global merchants and local consumers who use the Internet to buy anything from physical goods to SaaS products to local advertising.” The company noted that all the “locally relevant payment methods in India, including locally issued credit cards, debit cards and bank transfers” can be accommodated.

“The platform also supports unified payments interface (UPI), the latest initiative by India’s Central Bank geared at boosting e-commerce and enabling instant bank payments,” the company added.

Other features of the platform include making it easier to disperse mass payments to local contractors and freelancers based in India “by enabling global e-merchants and marketplaces to easily transfer funds into their Indian freelancers’ local bank accounts with the same ease as they already do this in the U.S.”

The outsourcing of contractors and freelancers from other countries along with allowing foreign workers to immigrate to the U.S. on work visas has been under scrutiny this past year as President Trump urges companies to shift labor investments and increase the number of American jobs. But a recent Harris Poll revealed that U.S. companies are on track to bring in 21 percent more foreign workers on H1-B and L-1 visas this year. And data from the U.S. Department of Labor and Forrester Research showed that across all sectors the number of outsourced jobs has increased from about 100,000 in 2000 to over 3.3 million today.

This past June, Alibabas Jack Ma delivered a keynote address at the companys Gateway conference in Detroit. He touted the importance of globalization and said due to online marketplaces it will only continue to grow. And it will include more individual sellers as well as small- to mid-sized business from across the globe. Ma told attendees that “global buy and global sell will happen in the next 10 years. If you want a coconut from Thailand, in 72 hours you’ll receive it.”

Sebastián Kanovich, chief executive officer of dLocal, said India presents “incredible market opportunities for online merchants and marketplaces” and with his firm’s payment solution “they don’t need to operate a local entity in India nor navigate India’s fragmented and complex payment ecosystem. Instead, they can focus on marketing and merchandizing of their products.”

To Ma’s point, the dLocal cross-border platform “allows merchants to accommodate the local payment preferences of individuals and [small to mid-sized business], alleviates tax burdens and payments settlement and reduces the risks of currency exchange fluctuations.”

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