Money transfer company Wise is set to re-enter India’s lucrative remittance market, estimated at $32 billion, after temporarily halting new customer sign-ups in the country. The London-based firm paused onboarding in recent months to enhance its infrastructure, a move prompted by the company’s recent acquisition of a licence from the Reserve Bank of India (RBI). This licence enables Wise’s customers to send larger sums of money abroad.
With the infrastructure upgrade complete, Wise plans to resume signing up new customers in India within the next few months. The company aims to capitalize on the country’s significant cross-border payment needs, which are currently dominated by banks. The RBI’s data highlights the potential of this market, showing that Indians sent $32 billion overseas in the year leading up to March 2024, an increase from $27 billion the previous year. These transfers are primarily for travel, education, and family-related expenses.
Systems ramp up
Earlier this year, Wise announced an increase in its investment in payment infrastructure. The company believes that this investment will help it reduce transaction fees by improving payment processing efficiency, thereby advancing its goal of becoming a global leader in the cross-border payments industry.
The cross-border payments sector faces several challenges, including high transaction fees, fluctuating exchange rates, and security concerns, which can deter customers and impact revenue. Recent data indicates that American merchants lost at least $3.8 billion in revenue due to failed cross-border payments in the year prior to the report.
To mitigate such issues, businesses expanding internationally are advised to strengthen partnerships with payment service providers (PSPs), enabling them to access advanced tools and expertise that facilitate more efficient and reliable cross-border transactions.
