Peak XV-Backed PayGlocal Receives RBI Nod To Operate As Online Merchant Payments Firm

Joining the crew of fintech operators who have obtained the payments licence in the country, Bengaluru-based cross-border payments startup PayGlocal has reportedly received the online payment aggregator licence approved by the Reserve Bank of India (RBI).

As per ET’s report, PayGlocal, being an international payments-focused startup, has also applied for a cross-border payments licence, which is still being processed by the central bank.

The Tiger Global-backed payments startup received in-principle approval from the RBI for a payment aggregator (PA) licence in November last year.

Founded in 2021 by Prachi Dharani, Rohit Sukhija and Yogesh Lokhande, PayGlocal is a technology-led platform that enables cross-border payments. It allows merchants to accept and collect payments from customers outside India in their local currency.

The startup has raised over $17 Mn in funding so far from investors, including Tiger Global and Peak XV Partners.

The development comes at a time when most fintech and payments companies are jumping in for the PA licence, as becoming a PA could soon come with increased regulatory scrutiny on startups, and higher burden of compliance as well as increased cost of due diligence.

In the last six months, companies including Hitachi Payment Services, Worldline ePayments India, SabPaisa, Groww Pay Services, Innoviti and Infibeam’s CCAvenue have received their PA licence from the central bank.

Meanwhile, Bengaluru-based fintech startup Cashfree Payments was the first entity to secure the payment aggregator cross border (PA-CB) licence, in July. Following that, BillDesk, Amazon Pay India, and Adyen also received the RBI approval to operate as cross-border payment aggregators.