Identifying the primary rivals of Wise in the Indian market.
In the dynamic world of international money transfers, pricing for corridors to and from India is a crucial factor to consider. Here's a breakdown of key aspects to help you make informed decisions when sending or receiving money.
The Indian government has been actively promoting the use of UPI, the country's instant payment system, to support its 32 million-strong diaspora worldwide. In 2023, UPI processed an impressive 117.6 billion transactions, while India's outbound remittances under the Liberalised Remittance Scheme (LRS) reached $31.7bn in the 12 months leading up to March 2024.
Several well-known remittance players, such as MoneyGram, Remitly, and Ria, are still receive-only in India, while online money transfer operators like BookMyForex have emerged to serve Indian users. The landscape is further enriched by Indian banks launching their own mobile apps and digital remittance offerings, creating stiff competition.
To compare remittance prices, focus on the following factors:
- Exchange Rates: The difference between the mid-market rate (the real exchange rate) and the rate offered by the provider is crucial. Some providers like Wise use the mid-market rate with no markup, while others add a margin on top, increasing your costs.
- Transfer Fees: Check fixed fees and whether they vary based on amount or speed of transfer. For example, Currencyflow offers zero fees with a very small exchange rate margin, while Wise charges around $39.22 USD for transfers but provides faster services.
- Transfer Speed: Some companies send money instantly or within one business day (Wise is an example), while others take longer. Speed can affect cost and convenience.
- Payment and Delivery Methods: Fees and speeds can differ depending on methods used (bank account, cash pickup, mobile wallet). Also, consider whether there are fees for the recipient or intermediary banks.
- Minimum and Maximum Transfer Limits: Companies like Wise have minimum amounts with fees starting from 0.43%, while OFX usually requires a minimum transfer of $1000 but no fees.
- Hidden Costs: Account for potential markups, correspondent bank fees, or unfavorable exchange rates that increase total cost.
To perform a practical comparison, use live comparison tools specifically for USD-INR or INR-USD transfers provided by websites like moneytransfers.com or Xe. Calculate the total cost by entering the amount you want to send and note the exchange rate, stated fees, and estimated delivery time. Compare providers like Currencyflow, Wise, OFX, banks, and others to find the best combination of low fees, competitive exchange rates, and good speed.
Consider the transfer direction (to India or from India) because fees and rates can differ. In summary, comparing remittance prices for India transfers involves checking exchange rates (preferably mid-market rates or close), transfer fees, speed, payment methods, and any additional charges by using live tools and reviewing provider details carefully.
While major remittance players are experiencing growth in Europe, the US, and Asia, India continues to see domestic banks leading in outbound remittances. International travel was the top remittance purpose, accounting for $17bn, followed by maintenance of close relatives ($4.6bn), gifts ($3.6bn), and studies abroad ($3.5bn). Wise and Revolut, among others, continue to show interest in the Indian remittance market.
However, it's important to note that remittances from India may be subject to high taxation. People sending money abroad must pay a 20% tax on remittances over INR 700,000 ($8,340), excluding education and medical remittances.
[1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4] [5] [Source 5]
- The increasing popularity of UPI, a business technology initiative by the Indian government, has fostered finance opportunities for its large diaspora, fostering more efficient international money transfers and contributing to the growth of the overall Indian finance sector.
- In the dynamic landscape of the Indian remittance market, understanding the cost-effectiveness of various service providers, particularly with respect to exchange rates, transfer fees, speed, and payment methods, is crucial for both individuals and businesses looking to send or receive funds, especially considering potential tax implications.
