India’s GIFT City Push Gains Momentum As Decentro Secures PSP Licence

Bangalore, May 29: India’s efforts to position GIFT City as a global financial hub are gaining traction as fintech firms increasingly look to the International Financial Services Centre for cross-border payment operations and international financial services.

In the latest development, Bengaluru-based fintech infrastructure company Decentro has received final approval for a Payment Service Provider PSP, licence from the International Financial Services Centres Authority IFSCA. The approval makes it one of the few fintech players operating in the regulated payments space within GIFT City.

The development comes amid growing interest in GIFT City as India attempts to build a financial ecosystem capable of competing with established global centres such as Singapore and Dubai. Policymakers have been positioning the Gujarat based financial hub as a gateway for international banking, fintech services and foreign capital flows.

Rising Focus On Cross Border Payments

The approval also reflects the increasing demand for streamlined cross border payment systems among Indian businesses expanding overseas and global firms entering India.

Cross border payments remain a major challenge for businesses due to fragmented banking systems, currency conversion costs and compliance related complexities. Industry estimates suggest the global cross border payments market could be worth nearly $200 trillion, making it one of the fastest growing segments within financial services.

Under the licence, Decentro plans to offer services including multi currency account infrastructure, merchant onboarding, international collections and escrow based transactions for businesses operating across different markets.

Industry observers say the rise of regulated payment infrastructure within GIFT City could help Indian fintech firms expand beyond domestic markets while reducing dependence on overseas financial centres for international transactions.

GIFT City’s Expanding Ecosystem

Over the past few years, GIFT City has attracted banks, fintech companies and financial institutions looking for regulatory flexibility and international connectivity. According to official estimates, hundreds of firms are currently operating within the ecosystem across banking, insurance and financial technology sectors.

Experts believe regulatory approvals for payment and financial service providers could play a crucial role in strengthening India’s fintech ecosystem and improving the ease of doing business for companies with global operations.

The latest approval also signals how Indian fintech firms are gradually shifting focus towards building infrastructure for global financial operations rather than remaining limited to domestic digital payments.

While GIFT City is still in a developing stage compared to established international financial hubs, industry stakeholders believe continued regulatory support and growing business participation could accelerate its role in global finance over the coming years.