Earthport wins cross-border payments approval from Reserve Bank of India
(ShareCast News) - AIM-listed Earthport has received approval from the Reserve Bank of India for operating cross-border payment services for banks as it expands in the country.
Earthport could already make inbound payments into India for its overseas clients, and now with the central bank's approval it will also process outbound cross-border payments for banks on the sub-continent.
India is one of the fastest growing markets for cross border payments, reporting $266bn in exports and $396bn in imports for 2015-16, and received about $69bn of inward remittances.
Mohan Tanksale, chief executive of Indian Bank's Association said he believes that innovative business models with high levels of compliance and governance standards will play a key role in achieving the country's economic development agenda.
"With its unique business model, and a proven track record with some of the largest global financial institutions, I believe that Earthport can effectively contribute to India's fast evolving payments ecosystem."
Earthport chief executive, Hank Uberoi said it was engaged with several Indian banks in light of approval from the central bank and the Indian Bank's Association.
Earthport enables financial institutions, money transfer organisations and e-commerce businesses can make payments in the company's network of over 60 countries.
Meanwhile, the company's chief commercial officer Sajeev Viswanathan has decided to step down to pursue other interests and was replaced by Michael Steinhart on Thursday.
The company said Viswanathan has agreed to stay on with the company to launch and build its presence in India for the next several months.
Steinhart has over 20 years' experience selling to the financial services sector at IBM with significant management responsibility in New York, London, and Sydney, and was also president of Reuters America and built a financial services practice at Computer Sciences Corporation.
Shares in Earthport were up 2.86% to 18p at 1202 GMT.