Xflow partners with HSBC to collect payments from Indian users for global businesses; here's why it is important

Xflow, a cross-border payments platform, on Friday announced a partnership with HSBC, in a move that will make it easier for global businesses to collect payments from Indian customers using cards, net banking and UPI for online and recurring payments.

The Xflow-HSBC collaboration was announced at Global Fintech Fest 2026, one of the world's largest fintech gatherings, in Mumbai. The partnership will allow businesses worldwide to leverage India's local payment infrastructure and provide Indian customers with a familiar checkout experience, without needing to set up an Indian entity or take on additional local regulatory requirements.

Why is it important?

The Xflow-HSBC partnership can prove significant for international merchants since collecting payments from India has proven very difficult for them in the past. Less than 70 per cent of international card transactions succeed in India, partly because many cards are not enabled for overseas spending. Recurring payments can face additional challenges due to India's data and mandate requirements.

Additionally, bank wire transfers can be slow, more expensive, and paperwork-heavy. These hurdles can cause global merchants to lose Indian customers at checkout.

What will the Xflow-HSBC partnership do?

The partnership aims to address these challenges by enabling cross-border payments to be processed using India's local payment infrastructure. Customers can pay using methods such as UPI and cards that they already use for domestic transactions. Simply put, cross-border payments are converted into local transactions for Indian buyers, allowing them to pay at checkout via UPI and cards.

UPI accounts for roughly 85 per cent of India's digital payment volumes, with the firm stating that transactions using local payment methods have a success rate of more than 95 per cent, potentially helping international merchants improve checkout conversions.

Benefit of Xflow-HSBC partnership

The benefit of Xflow and HSBC's partnership can be reaped by international businesses looking to access India's large consumer market without having to establish a local entity or navigate additional regulatory hurdles. The collaboration will also allow merchants to receive settlements in major currencies and send funds to destinations worldwide at competitive rates.

The solution could particularly benefit global companies operating in high-demand categories, including physical goods, SaaS, artificial intelligence (AI) and consumer technology, online travel and booking platforms, and edtech, especially those currently relying on international payment methods with lower success rates in India.

Xflow CEO's remarks on HSBC partnership

Ashwin Bhatnagar, Co-founder & CEO, Xflow, commented on the latest partnership with HSBC and said, "Collecting payments from India has always been harder than it should be, and global merchants lose customers because of it. With HSBC, we're making it possible for any international business to accept payments from Indian buyers as easily as a domestic merchant would, with local payment methods, high success rates, and compliance fully handled. Our mission is to make cross-border payments as seamless as domestic ones, and this is a major step towards that."

The partnership can likely remove some of the key barriers faced by international businesses in India, making cross-border payments faster and more seamless while giving global merchants a simpler way to tap into the country's growing digital consumer market.