Infibeam Avenues receives in-principle approval to operate as payment service provider at GIFT-IFSC

Infibeam Avenues Ltd on Tuesday announced that the International Financial Services Centres Authority (IFSCA) has granted in-principle approval to its subsidiary, IA Fintech IFSC Private Ltd (IA Fintech), to operate as a Payment Service Provider (PSP) at the Gujarat International Finance Tec-City – International Financial Services Centre (GIFT-IFSC). This approval allows IA Fintech to offer digital payment and cross-border financial services, including escrow account operations, cross-border money transfer facilitation, and merchant acquisition.

GIFT-IFSC, located in Gandhinagar, Gujarat, is a special economic zone (SEZ) and international financial hub. The IFSCA, a regulatory body established by the Government of India, oversees financial products, institutions, and services within the GIFT-IFSC or SEZ ecosystem.

Digital Settlement Infrastructure

Infibeam Avenues Fintech's PSP framework aims to streamline transactions through digital settlement infrastructure, offering near-instant, cost-effective, and transparent cross-border transactions, it said in an official statement. Currently, many firms within GIFT-IFSC use traditional correspondent banking arrangements for international payments, which can take up to 36–48 hours and incur higher costs.

“We are delighted with this approval and deeply grateful to the IFSCA for their trust in our fintech capabilities,” said Mr Vishal Mehta, Chairman and Managing Director, Infibeam Avenues Ltd. “This opportunity marks an important expansion of our business, creating a new and high-potential revenue stream that can meaningfully contribute to our overall growth.”

The GIFT-IFSC ecosystem includes over 16 Alternative Investment Funds (AIFs), 75 broker-dealers, 16 bullion trading entities, 23 aircraft leasing companies, 9 ship leasing firms, 118 qualified jeweler firms notified by IFSCA, and 94 fund management firms. These enterprises represent a significant market for IA Fintech's services. GIFT-IFSC is expected to capture over USD 500 billion in financial opportunities across various sectors.

Upon obtaining final authorization and meeting statutory requirements, IA Fintech will be permitted to provide escrow services, enable cross-border remittances, and facilitate merchant payment processing and settlement.

Disclaimer: This article was generated using AI tools and has undergone editorial review for clarity and coherence.