Cashfree Payments targets SMB growth with trust, cross-border solutions, and AI

From transactions to trust-building

Cashfree Payments began in 2015 when digital payments were still new in India, and businesses approached them with caution, according to YourStory. The company initially focused on simplifying online transactions to make them more accessible.

As digital commerce grew, Cashfree Payments introduced features like instant refunds and settlements to enhance convenience for both consumers and businesses. Akash Sinha, Co-founder and CEO, told YourStory that the next growth opportunity lies in supporting the increasing number of SMBs entering the digital ecosystem.

For these businesses, payments are not just about collecting money but also about building trust with first-time customers. Sinha emphasized that the right payments partner can bridge the trust gap, which is critical for young or unfamiliar brands.

Reducing friction at checkout

Cashfree Payments has developed tools to address challenges SMBs face in converting customer interest into completed purchases. Checkout 360, for example, offers features like saved addresses and payment methods to simplify the checkout process.

Affordability options such as EMI, buy-now-pay-later (BNPL), and targeted offers are also part of the strategy to make products accessible and encourage repeat transactions. The goal is to reduce friction throughout the customer journey, not just at the point of payment.

Lowering barriers for early-stage businesses

Cashfree Payments launched a zero-MDR (merchant discount rate) initiative to waive payment gateway fees for new businesses until they reach Rs 20 lakh in sales. This move aims to remove cost barriers for entrepreneurs still refining their business models.

Additional support includes next-day settlements and a dedicated account manager to help businesses navigate refunds, settlements, and scaling challenges. These features are designed to let founders focus on product development and customer acquisition.

AI and the future of commerce

Sinha highlighted the potential of AI to help SMBs automate repetitive tasks, particularly in recovering abandoned payments. Instead of relying on large support teams, an AI agent could identify why a customer dropped off and offer alternative payment options, turning AI into a revenue recovery tool.

The concept of "agentic commerce" was also discussed, where consumers delegate shopping tasks to AI agents. This shift would require businesses to adapt their payment infrastructure to support both consumer-facing AI agents and automated business operations.

Enabling cross-border growth

Cashfree Payments supports cross-border payments for Indian merchants selling overseas and international businesses entering India. Sinha identified ecommerce and travel as key sectors where this capability could reduce friction for businesses looking to expand globally.

The company aims to simplify processes like setting up overseas entities and managing multiple currencies, helping Indian SMBs think beyond local markets.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Cashfree Payments’ focus on trust-building, cross-border solutions, and AI-driven automation reflects a broader trend: payment infrastructure is evolving from a utility to a growth enabler for SMBs. For Indian founders, this signals an opportunity to leverage tools that reduce friction, improve conversion rates, and expand reach without heavy upfront investment. The zero-MDR initiative, in particular, could be a useful option for early-stage startups testing product-market fit. Meanwhile, the emphasis on cross-border payments aligns with the growing ambition of Indian businesses to operate internationally, though founders will need to assess whether Cashfree’s solutions meet their specific regulatory and operational needs.

Key takeaways

• For Indian SMBs, payment infrastructure is no longer just about processing transactions but about building trust, reducing friction, and enabling growth beyond local markets.
• Zero-MDR pricing and next-day settlements can help early-stage startups manage cash flow and focus on product and customer acquisition.
• Cross-border payment support may lower barriers for Indian businesses looking to expand globally or attract international customers.
• AI-driven automation in payments could help SMBs with limited resources improve conversion rates and operational efficiency.