Thursday, December 26, 2024

Remittances company wise sets up shop in India

Monday, May 31, 2021, 19:08
This news item was posted in Business category and has 0 Comments so far.

Mumbai: Global remittances company Wise launched its India operations to tap the $18 billion odd outward remittances market.The company is targeting individuals sending money abroad under the Reserve Bank of India’s liberalised remittances scheme (LRS) and later move on to facilitate outward payment transactions for businesses.It aims to bring down the cost of transfer where traditionally commercial banks and fintech players have a strong presence in this business. “The global average cost of sending US$200 is 6.5 per cent (of the total transaction value), according to a December 2020 World Bank Report, while the sustainable development goal objective is of 3 per cent,” said Kristo Käärmann, CEO of Wise. “So there’s still a long way to go and Wise is taking a step in that direction.”Commercial banks are the most popular channels in the outward remittance business and of late even some fintech players have entered this business, making this business more competitive.Quoting an independent analysis conducted by research firm Alderson Consulting, the company said that sending Rs 50,000 to the US costs just Rs 1,038.08 with Wise, but costs Rs 1,909 on average with banks.The company, formerly known as TransferWise, will facilitate outward transfers to 44 countries.

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