Global payments bank Banking Circle will now handle cross-border transactions and settlement flows for South Korean payment service provider PayGate.
The Banking Circle and PayGate partnership provides the South Korean firm with virtual accounts and access to major currency payment rails, including USD, EUR, and GBP.
PayGate currently processes collections and disbursements for global payment providers and manages transactions for over 3,000 South Korean merchants.
The South Korean won is a restricted currency, which creates structural friction for providers managing cross-border flows.
Firms often face limited offshore settlement capabilities, fragmented treasury operations, and high administrative costs.
The integration addresses these issues by delivering integrated foreign exchange tools and single-platform settlement for PayGate’s clients.
“Partnering with Banking Circle is a significant step in simplifying how we manage cross-border transactions between South Korea and overseas,”
said Park So Yeong, CEO at PayGate.
Park added that using the platform will improve the firm’s global treasury management capabilities and strengthen its payment offerings for domestic merchants.
Expanding South Korean access
The agreement marks Banking Circle’s first partnership with a South Korean payment service provider, extending its financial infrastructure into the market.
Mishal Ruparel, Chief Commercial Officer at Banking Circle, noted that currency restrictions add complexity to an otherwise mature payment sector.
“Bringing PayGate onto our platform is the first step to establishing our presence in Korea and building the foundation for a more connected payments network, allowing payment providers and merchants to operate easily across borders,”
Ruparel said.
PayGate plans to use these new virtual account capabilities to expand its collection services for Korean merchants operating internationally.
Featured image credit: Edited by Fintech News Hong Kong, based on image by freelancerparvej via Freepik