Global online money transfer service Wise is reportedly set to resume onboarding new customers for international remittances in India. Bloomberg.
The fintech company temporarily suspended new registrations to overhaul its infrastructure after receiving a license from the Reserve Bank of India, allowing users to send more funds overseas.
From 2020 onwards, wise The company has been facilitating international remittances from India through partnerships with banks, but previously the transaction amount was limited to US$5,000 per transaction.
The restrictions have now been lifted, a Wise spokesperson confirmed.
Before onboarding new customers, Wise is upgrading its back-end processes to ensure compliance with new Authorized Dealer 2 licensing requirements, including tax and reporting obligations.
India currently imposes a 20% tax on most personal remittances abroad.
Shrawan Saraogi, head of expansion for Asia Pacific at Wise, said the company plans to resume customer onboarding in the coming months.
Saraogi highlighted that India has huge potential in the remittance market and said Wise aims to grab a larger share of the international payments sector currently dominated by large banks such as ICICI Bank and State Bank of India.
India’s overseas remittance market has seen strong growth, with $32 billion sent in the 12 months to March 2024, up from $27 billion a year earlier, according to data from the Reserve Bank of India.
Remittances were primarily used for travel, education and family support.
Y’s Asia-Pacific business will account for about one-fifth of the company’s global revenue for the fiscal year ending March 2024, making it its second-largest region after Europe excluding the UK.
With fees as low as 65 basis points on a global average, Wise has positioned itself as a competitive alternative to traditional banks in India.
Saraogui said Wise aims to establish a strong presence in the market by providing efficient, price-competitive and transparent services.
