PayGlocal, a cross-border payments company, has secured in-principle approval from the International Financial Services Centres Authority to establish a wholly owned subsidiary as a Payment Service Provider in GIFT-IFSC. The authorization allows the company to offer account issuance, e-money accounts, cross-border money transfers, and merchant acquisition. This development provides PayGlocal with a regulated foundation to serve businesses operating across multiple international markets.
Scope of the Regulatory Approval
The IFSCA authorization grants PayGlocal permission to issue accounts, manage e-money accounts, conduct cross-border money transfers, and acquire merchants. These services provide the company with a regulated framework to serve businesses operating across international markets. The approval is an important step in PayGlocal's effort to expand its payment infrastructure beyond India.
Recent Regulatory Momentum
PayGlocal has been strengthening its regulatory position on multiple fronts. Last year, the company received final authorisation from the Reserve Bank of India to operate as a Payment Aggregator Cross Border for inward and outward transactions. It has also entered the United States after registering as a Money Services Business with the Financial Crimes Enforcement Network.
A Strategic Base in GIFT City
The GIFT-IFSC approval adds another layer to PayGlocal's global footprint by offering a regulated base in a financial hub. GIFT City will allow the company to develop payment capabilities for international businesses while it continues to build core technology and operations from India. This dual structure is intended to support cross-border demand more effectively.
Focus on Indian Merchants and Global Ambitions
According to PayGlocal, the immediate priority is to build capabilities that support Indian merchants wherever their customers are located. Over time, the company aims to support businesses globally by expanding into more markets and building local expertise. Its long-term focus includes developing strong local capabilities for cross-border collections, payments, and money movement across different regions.
Company Origins and Industry Reach
Founded in 2021 by Prachi Dharani, Rohit Sukhija, and Yogesh Lokhande, PayGlocal enables Indian and global businesses to accept payments across markets. The startup works with merchants in export, retail, travel, education, and software as a service. Its platform supports payments in more than 130 currencies and over 40 global and local payment methods.
Investor Backing
PayGlocal is backed by a group of notable investors that includes Tiger Global, Peak XV, formerly Sequoia Capital India, and BEENEXT. This investor support reflects confidence in the company's cross-border payment model. The new approval from IFSCA is expected to strengthen its growth trajectory in international markets and create new opportunities for merchant acquisition.
Sector Momentum at GIFT-IFSC
In 2024, IFSCA granted in-principle approval to Betafront Tech, Zinc Money, and GlomoPay to establish wholly owned subsidiaries as Payment Service Providers in GIFT-IFSC. These approvals indicate growing interest in GIFT City as a regulatory base for payment companies. IFSCA's payment services framework positions the hub as a potential international centre for Indian fintech firms.
Implications for Cross-Border Payments
PayGlocal's expansion into GIFT-IFSC aligns with a broader shift toward regulated infrastructure for cross-border payments. The ability to operate as a Payment Service Provider in a financial services centre can reduce friction for merchants and partners engaged in international trade. It also gives the company a foundation to introduce new products under a clear regulatory framework.
The IFSCA approval marks another step in PayGlocal's evolution from an India-focused payments provider to a regulated cross-border platform. With RBI and FinCEN authorizations already in place, the company is building a multi-jurisdictional foundation for international expansion. Its focus on merchant support, local capabilities, and regulated infrastructure positions it to compete more effectively in the global payments landscape.
Source: Entrackr