Wise Payments Ltd., a London-based fintech firm, is set to resume onboarding new customers in India for overseas remittances, targeting a market that has reached $32 billion. The company had temporarily halted new client sign-ups to overhaul its infrastructure following the acquisition of a license from the Reserve Bank of India (RBI), allowing for increased international transfer limits. Wise plans to recommence customer registration within the next few months, according to Shrawan Saraogi, Head of Asia Pacific Expansion.
Saraogi highlighted India’s substantial remittance market, noting that Wise will concentrate on cross-border transactions predominantly handled by banks. Traditional financial institutions, such as ICICI Bank and State Bank of India, have historically dominated this sector due to stringent capital controls, outdated payment systems, and high taxes that have constrained the influence of fintech competitors.
Data from the RBI indicates that Indian remittances amounted to approximately $32 billion for the fiscal year ending March 2024, a rise from $27 billion the previous year. These payments were primarily for travel, education, and family support.
Since 2020, Wise has facilitated outbound payments from India through a bank partnership, previously limited to $5,000 per transaction. This cap has been removed as Wise upgrades its systems to align with tax and regulatory requirements under the Authorized Dealer 2 license. Notably, India imposes a 20% levy on most individual outbound remittances.
India’s retail digital payments market is projected to grow to $7 trillion by 2030, up from $300 billion in 2018, driven by a surge in digital transactions, which accounted for about 46% of all payments in 2022.
Global fintech firms, including Wise and Revolut, are navigating complex regulatory landscapes to capitalize on this growth. Revolut, which obtained an RBI Prepaid Payment Instruments license in April, is preparing to launch its services in India. Wise, with significant revenue contributions from Asia-Pacific, aims to offer a competitive, transparent, and cost-effective remittance solution.
