Wise Payments to Restart Customer Onboarding in India, Targeting $32 Billion Remittance Market

Wise Payments Ltd. is set to resume onboarding new customers in India for overseas remittances, aiming to capture a larger share of the expanding $32 billion market following recent upgrades to its infrastructure and regulatory approval from the Reserve Bank of India (RBI).

After temporarily halting new client registrations to enhance its systems, Wise is preparing to accept new users in the coming months, according to Shrawan Saraogi, Asia Pacific head of expansion at Wise. “India is a huge market for remittance,” Saraogi stated, emphasizing the firm’s focus on cross-border transactions that are currently dominated by traditional banks.

The outbound remittance market in India is primarily led by major banks like ICICI Bank and State Bank of India, largely due to strict capital controls, outdated payment systems, and high taxes that have limited fintech competitors. In the year leading up to March 2024, Indians sent approximately $32 billion abroad, an increase from $27 billion the previous year, with remittances primarily directed towards travel, education, and family support.

Since 2020, Wise has offered outbound payments from India but previously faced a transaction limit of $5,000, which has now been removed. Before accepting new users, Wise is upgrading its back-end processes to comply with tax and reporting requirements under its new Authorized Dealer 2 license, which includes a 20% tax on most individual outbound remittances.

India’s retail digital payments market is projected to reach $7 trillion by 2030, up from $300 billion in 2018, making it a prime opportunity for global fintech firms like Wise and Revolut. With an average fee of 65 basis points, Wise aims to deliver a faster, more affordable, and transparent service compared to traditional banks, bolstering its competitive position in the Indian market.