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International money transfer is a huge and competitive industry. Before 2020, the industry was booming. The amount of cash migrants from low-and middle-income countries sent home to their friends and family reached a record $548 billion in 2019 but is projected to decline 14 percent by 2021 due to worldwide shutdown for COVID pandemic.
Migrants and their families from low income or mid income countries who rely on remittance, they are heavily hit by the pandemic. They also don’t have access to digital platforms. Facilitating digital remittances would require improving access to bank accounts for mobile remittance service providers as well as senders and recipients of remittances.
However, digital transfers are breaking down borders for foreign migrant workers of high/middle income group countries, during the pandemic. Large companies like Western Union, Moneygram, gaining mostly from their digital business in 2020. Also, fintech startups like Transferwire, RIA, giving a strong competition to the traditional ones in term of digital innovations and customer base.
In post Covid world, a structural change in the international money transfer market can be seen. People are expected to be more comfortable and absorbed by the digital platforms. By reducing the number of middle men in process of transferring, digitization brings contactless payments, fast timings and lower fees.
When historical trend of remittance flow is observed, a crisis expectedly reduces the flow of remittance as people loose jobs, then the aftermath the crisis the flows rebound sharply as people overcome. Lastly, remittances once again come to an average level like before the crisis. But also, COVID19 is surely much more severe than any other crisis happened. Still in the long run migration flow is expected to increase significantly as well as remittance. The wide income gap between high- and low-income countries (i.e., 54:1) will drive the growth of remittance market.
Since IndusInd Bank and NPCI have partnered to make cross-border money transfers possible using the beneficiaries’ UPI IDs, Indians can now receive remittance money from their abroad sources much more easily.
By doing this, sending money won’t require you to remember your bank account information. IndusInd Bank announced in a statement that it has partnered with NPCI to provide its money transfer operator (MTO) partners with real-time cross-border remittances to India utilising UPI IDs.
With this effort, IndusInd Bank has become the first bank in India to use UPI for international transfers or remittances from NRIs.
According to this agreement, the MTOs will link to the NPCI’s UPI payment systems via the IndusInd Bank channel for cross-border payment validation and settlement into beneficiary accounts. IndusInd Bank has initially begun using DeeMoney using UPI to send foreign inward remittances (FIR) to Thailand. Money transfers and currency exchange services are provided by DeeMoney, a Thai provider of financial solutions.
One can effortlessly send money by adding the Indian beneficiaries’ UPI IDs to the DeeMoney website. For cross-border payments via UPI, IndusInd Bank stated that it also has plans to add more partners in a number of other nations in the near future.
It’s a huge step in streamlining the functionality of remittances because people living abroad may now easily transfer money to a beneficiary by adding their UPI IDs, rather than having to remember their bank account information.
Enabling overseas remittance using UPI is a significant step toward enhancing its utilisation as a platform and will significantly increase NRIs’ adoption of it worldwide.
Using UPI, the effort will make remittances for overseas travellers considerably easier and more effective.
MakeMyTrip’s fintech branch, TripMoney, has acquired a majority share in forex services firm BookMyForex. BookMyForex’s portfolio of services, which includes currency exchange with real-time exchange rates, multi-currency prepaid forex cards, cross-border remittances, and other ancillary goods, will be rolled out soon for the benefit of MakeMyTrip and Goibibo clients, thanks to this funding.
Customers in numerous cities across India will be able to get their forex needs met through BookMyForex’s broad network of partners, which includes chosen banks and reputable exchange providers.
The purchase of a majority stake in BookMyForex is in keeping with our strategic goal of creating a travel super app with a full range of services for discerning travellers.
Faering Capital, as well as the company’s founders and promoters, will continue to invest in BookMyForex.
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