Compliance

Building Trust at Scale: How RegTech Standards Are Shaping the Future of PSPs

Neha Chowdhury

• 4 min read
Building Trust at Scale: How RegTech Standards Are Shaping the Future of PSPs

As global commerce accelerates, the infrastructure that powers it must evolve too, not just for speed and scale, but for safety and trust. At the heart of this evolution is Regulatory Technology (RegTech) — a field quietly transforming how businesses meet compliance requirements in real time.

At Glomo, we see RegTech not as an add-on, but as a core pillar of modern payments. Especially for enterprises operating across borders, regulatory interoperability and smart automation are essential to reduce risk, accelerate transactions, and scale with confidence.

What Is RegTech?

RegTech refers to the use of software and data systems to simplify and strengthen regulatory compliance. It plays a key role in processes such as:

Rather than relying on manual processes or post-facto checks, RegTech allows companies to integrate compliance directly into their operations, making it proactive, auditable, and scalable.

Why RegTech Matters in Cross-Border Payments

Cross-border B2B payments now exceed $150 trillion annually. As businesses expand into multiple markets, they need payment infrastructure that supports:

  • Fast, transparent settlements
  • Multiple currencies
  • Varying documentation requirements
  • Diverse local regulations

Traditional compliance methods are no longer sufficient. Real-time payments require real-time compliance and RegTech enables exactly that.

By embedding verification, sanctions checks, and regulatory workflows directly into the transaction lifecycle, RegTech ensures global transactions remain compliant without slowing down the flow of capital.

The Complexity of Global Regulation

One of the most significant challenges in enabling seamless cross-border payments is the highly fragmented nature of financial regulation. Here’s what makes the landscape so complex:

1. Country-Specific Regulatory Frameworks

Each country maintains its own regulatory authority and compliance expectations for payments, financial activity, and data handling. PSPs must account for multiple jurisdictions simultaneously.

Examples include:

  • RBI (Reserve Bank of India): Regulates cross-border remittances, export-import settlements, and foreign investment flows under FEMA (Foreign Exchange Management Act).
  • MAS (Monetary Authority of Singapore): Oversees digital payment token services and cross-border fund transfers under the Payment Services Act (PSA).
  • FCA (Financial Conduct Authority – UK): Requires PSPs to be authorized or registered, and follow stringent AML (Anti-Money Laundering) and safeguarding regulations.
  • FinCEN (Financial Crimes Enforcement Network – USA): Mandates that Money Services Businesses (MSBs) report large transactions, perform customer due diligence, and monitor for suspicious activity.

Each of these authorities may have unique onboarding norms, KYC (Know Your Customer) processes, transaction thresholds, and reporting requirements, complicating global operations for fintechs and enterprise users alike.

2. Global Regulatory Frameworks and Watchdogs

In addition to local regulators, businesses must align with global financial standards and frameworks aimed at preventing illicit activity and ensuring consistency. Key frameworks include:

  • FATF (Financial Action Task Force): A global intergovernmental body that sets standards for AML/CFT (Countering the Financing of Terrorism). FATF regularly issues “grey lists” and recommendations that countries and financial institutions must act on.
  • Basel III (Bank for International Settlements): Sets international banking regulations on risk management, capital adequacy, and liquidity. While primarily for banks, its principles often extend to PSPs managing cross-border exposure.

Failure to adhere to these frameworks can result in fines, blacklisting, or reputational damage.

3. Sector-Specific Regulatory Overlays

Enterprises across industries — particularly in exports, IT services, and SaaS — often face domain-specific regulations.

  • Exporters in India must comply with RBI reporting norms via EDPMS (Export Data Processing and Monitoring System).
  • US-based software companies may need to file reports under OFAC (Office of Foreign Assets Control) guidelines, especially when operating in sanctioned geographies.
  • Digital platforms may need to address tax reporting obligations like DAC7 (EU) or Form 1099-K (US) when settling cross-border revenue.

These sectoral rules add another layer of complexity, especially for businesses that scale internationally.

4. Evolving Data Protection Laws

Cross-border payments involve sensitive user and transaction data, which falls under increasingly strict privacy regimes. Examples include:

  • GDPR (General Data Protection Regulation – European Union): Sets rules on data collection, transfer, and consent. Applies even if your business is not based in the EU, but serves EU clients.
  • DPDP (Digital Personal Data Protection Act – India): Establishes consent frameworks, localization norms, and data processor accountability for companies handling Indian user data.
  • CCPA (California Consumer Privacy Act – USA): Mandates transparency around how customer data is collected and used, with rights for access and deletion.

When data flows across borders, companies must ensure encryption, localization compliance, and contractual safeguards — or risk penalties and customer backlash.

Several developments are driving the RegTech ecosystem toward greater efficiency and coordination:

ISO 20022

This global messaging standard is transforming how payment information is transmitted between banks, PSPs, and regulators. It enables richer data, better reconciliation, and improved fraud detection. Glomo supports ISO 20022 to ensure compatibility with global payment networks.

FATF Travel Rule Expansion

The Financial Action Task Force has expanded expectations for sharing sender and receiver information, even in low-value payments. This promotes transparency and deters illicit finance. Glomo has embedded these requirements into our real-time verification workflows.

API-Driven Compliance

Modern PSPs must be able to plug into enterprise systems — from ERPs to treasury tools — while maintaining compliance. Glomo offers secure APIs for real-time onboarding, transaction screening, and regulatory reporting, helping clients stay in sync with evolving global frameworks.

Why Glomo Built for Compliance from Day One

We work with scalable, multi-market enterprises that expect not just operational efficiency but regulatory certainty. For us, RegTech is not a bolt-on. It’s the foundation on which secure, compliant, and scalable payment infrastructure is built.

Whether it’s navigating emerging payment corridors, complying with regional licensing frameworks, or supporting enterprise audits, we see compliance as a strategic enabler, not a barrier.

Final Thoughts

As global payments become faster and more interconnected, compliance must do the same. RegTech enables this shift by automating the checks, balances, and transparency required to operate at scale.

For enterprises navigating multiple markets, and for PSPs serving them, investing in standards-based, interoperable RegTech is essential.

To learn more about how Glomo integrates compliance into every payment flow, explore our platform or reach out to our team.