New Delhi, Nov. 27 -- India's cross-border payments space, long constrained by clunky bank processes and SWIFT rails, is being rewired. A year after the Reserve Bank of India (RBI) introduced its payment aggregator-cross border (PA-CB) licence, fintechs such as BriskPe, Xflow and Skydo are building regulated pipes for export and import flows. And their growth prospects have funders lining up fresh capital to grow that business.

The shift could be decisive, as small businesses seek faster, cheaper and more predictable settlements. Fintechs could intermediate 15-20% of India's estimated $1.6 trillion cross-border flows within five years, up from low single-digits today, say the founders and analysts Mint spoke with.

While a handful of lar...