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PayGlocal has received in-principle approval to establish a payment services subsidiary in GIFT City. The Bengaluru-based company plans to use the entity for cross-border transfers, account services and merchant payments. The clearance adds to its existing regulatory permissions in India and the United States.
The International Financial Services Centres Authority (IFSCA) has given PayGlocal in-principle approval to set up a wholly owned subsidiary as a Payment Service Provider in GIFT-IFSC. The company said the proposed entity would serve businesses operating in international markets.
The approval covers account issuance, including e-money accounts, cross-border money transfers and merchant acquisition. Merchant acquisition enables businesses to accept payments. PayGlocal has not announced when the subsidiary will begin operations or whether it has secured final authorisation.
PayGlocal plans to develop international payment services through its GIFT-IFSC entity while continuing its technology and operational work from India. The proposed subsidiary would give it a base for those services once it receives the required approvals.
The GIFT City approval follows PayGlocal’s final authorisation from the Reserve Bank of India last year to operate as a Payment Aggregator-Cross Border. That authorisation covers inward and outward payments under the RBI framework.
PayGlocal has also registered as a Money Services Business with the US Financial Crimes Enforcement Network, known as FinCEN. The registration forms part of its expansion into the US market. It is separate from the IFSCA approval for the proposed subsidiary.
Prachi Dharani, PayGlocal’s co-founder and chief executive, said the company aims to make cross-border money movement simpler for businesses. “PayGlocal is building something from India that can become a trusted part of how businesses transact with the world,” she said. Dharani also said the company wants cross-border payments to feel as simple as domestic payments.
PayGlocal said its next phase will focus on helping Indian merchants reach customers overseas. It also plans to enter more markets and develop local options for collecting payments, making payments, and moving money across borders. The company did not name those markets or provide a launch schedule.
Founded in 2021, PayGlocal serves businesses in exports, retail, travel, education and software services. Its products include multi-currency accounts and payment gateways. It also offers ways for international merchants to accept payments from customers in India through UPI, cards and netbanking.
The company says its platform supports more than 130 currencies and over 40 global and local payment methods. PayGlocal has not specified which of those services the proposed GIFT City entity will offer when it begins operating.
