Synopsis
Cross-border digital payment firms are increasingly targeting Gift City for growth, seeking Payment Service Provider (PSP) licenses to cater to international travelers and businesses. Companies like Razorpay, Cashfree, and Skydo are exploring this route to offer multi-currency wallets and streamline import-export flows, complementing existing RBI licenses.Listen to this article in summarized format
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Large payment aggregators such as Razorpay and Cashfree, along with cross-border specialists like Skydo, NRI-focused fintech Belong and banking services startup Decentro, are evaluating the payment service provider (PSP) licence issued by the International Financial Services Centres Authority (IFSCA), which oversees Gift City on the outskirts of Ahmedabad, said the people cited above. To power card payments through these payment accounts, IFSCA is working with Visa, they added.
IFSCA data until December 2025 shows that three entities have already been granted PSP licences, with Belong among those that have secured approvals.
Financial services firms across segments are applying for Gift City licences to build products targeted at exporters. Payment firms are following wealth managers and stock brokers who earlier moved for the Global Access Provider (GAP) licence. Wealth startup IndMoney and international investing platform Vested Finance are among the GAP licence holders.
Industry executives said the Gift City route is emerging as complementary to the Reserve Bank of India’s payment aggregator cross-border licence. This aligns with a broader strategy among payment firms to deepen their presence in cross-border transactions, improve margins and expand beyond domestic payments into import-export flows.
The PSP framework at Gift City allows companies to offer multi-currency wallets, similar to forex cards issued by banks. Exporters can accept payments in foreign currency without converting them into rupees and also make overseas payments using these wallets.
“Large payment firms are pursuing this licence to expand their business scope. Gift City is gaining traction and most major fintechs want a presence there,” said the founder of a digital payments startup.
Razorpay confirmed the development but declined to share details.
A Cashfree spokesperson said the company has not yet applied for a PSP licence at Gift City but is actively working towards it. The spokesperson added that the offering would complement its existing cross-border payment aggregator business.
"The initiative enables issuance, acquiring and money movement use cases by licensed Gift City entities, including non-INR cross-border transactions, subject to their regulatory alignment and technical enablement," said a Visa spokesperson responding to ET's queries.
Movin Jain, cofounder of Skydo, said the company plans to use its Gift City entity to build new products for Indian and global startups and small businesses.
Belong, which focuses on non-resident Indians, is leveraging the licence to streamline fund flows from overseas into Indian financial markets.
The startup is targeting the 35 million NRIs and overseas citizens of India who collectively channel about $45 billion into India annually, largely into mutual funds and fixed deposits.
“With digital onboarding, foreign currency-denominated deposits and tax-exempt India-focused funds, Gift City offers a more streamlined and tax-efficient route for NRIs to participate in India’s growth story,” said Ankur Choudhary, cofounder of Belong.
