Global Cross Border Remittance

Today we will be covering a very interesting and one of the fastest growing opportunity i.e. Global Cross Border Remittance. In this space one may consider to start his/her venture and will majorly witness high-volume and low-value remittance payment.

What is Global cross-border remittance?

It refers to the transfer of money from one country to another and typically involves a financial institution or a money transfer service. It is a critical aspect of the global economy, as it -

• Facilitates international trade
• Helps support families and individuals living in different countries.

It can involve a wide range of currencies, exchange rates, fees and regulations, depending on the countries involved and the method of transfer used.

Indian Government Support

The government is running initiatives like the Money Transfer Service Scheme (MTSS) and is aimed at providing a convenient and cost-effective way for people to transfer funds across borders, particularly for migrant workers who need to send money back home. The MTSS has helped to increase the accessibility and affordability of money transfer services in India, especially for low-income individuals and those living in remote areas. It has also helped to reduce the reliance on informal channels for remittances, which can be risky and expensive.

How big is the Market ?

The World Bank projects that the global remittance market reached a level of 758 Billion $ in 2022 and is expected to reach 809 Billion $ in 2023. This growth is driven by factors such as

• increasing globalization
• rising migration
• advances in technology that have made cross-border payments easier, faster, and more affordable.

The market is dominated by a few major players such as Western Union, MoneyGram and TransferWise.

Few startups in this sector -

1. Remitly (https://www.remitly.com/): Remitly is a Seattle-based digital remittance company that was founded by an Indian entrepreneur.
2. InstaReM (https://www.instarem.com/): InstaReM is a Singapore-based fintech company that offers a digital platform for cross-border payments, including remittances, to over 100 countries.
3. NiYO (https://goniyo.com/): NiYO is a Bangalore-based fintech startup that offers a global banking platform for migrant workers, including a cross-border remittance service.
4. Airpay (https://www.airpay.co.in/): Airpay is a Mumbai-based payment gateway company that offers a range of payment solutions, including cross-border remittance services.
5. Razorpay (https://razorpay.com/): Razorpay is a Bangalore-based payment gateway company that provides a range of payment solutions for businesses, including cross-border remittance services. The company's platform allows businesses to make international payments in multiple currencies, with transparent pricing and fast transfer times.
6. Xendpay (https://xendpay.com/): The company offers a low-cost international money transfer service that allows users to send money to over 170 countries, with competitive exchange rates and no hidden fees.

One super interesting startup that we were able to find under this domain is - Global Collect which got acquired long back for 1.12 Billion $. This startup allows anyone to have a tailor-made online payment methods to each market – meaning the user can offer the best mix of payment methods by country, region and even device. So this solution allows local payments for international transactions.

Link: https://worldline.com/en/home/main-navigation/solutions/merchants/global-collect.html

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Vaibhav Mandhana, Flookup

[email protected] |?www.flookup.com