Xendpay, the first Pay-What-You-Want money transfer service, which reportedly offers quick, low cost and secure cross-border money transfers, has received regulatory approval from the Reserve Bank of India (RBI) to commence operations in India.
Xendpay currently offers the Pay-What-You-Want money transfer service across 205 countries in 49 currencies and 1,056 currency pairs. It is available across desktop, tablet, and mobile devices. Xendpay India will offer online money transfers to private individuals in line with RBI payment guidelines.
RBI data shows that remittance from India to foreign countries has grown more than three times, a staggering $4 billion (€3.4 billion), in the fiscal year ending March 2016. However, international money transfers through traditional banks and money transfer companies are expensive, inclusive of hidden fees and unfavourable exchange rates. Many individuals who rely on sending money abroad to their friends and families such as migrants find their hard-earned income is lost due to money transfer fees.
More than 60% of payments made via Xendpay are for family support reasons (such as to pay for overseas education, living expenses, bills) with the rest of the figures constituting travel payments, overseas property investments, leisure, health and migration. By providing a wholesome service at remarkably competitive rates, Xendpay aims to challenge the market norm by utilising disruptive technology to enable safe, quick and easy online global money transfers.
The London based fintech firm was co-founded by Paresh Davdra (CEO) and Rajesh Agrawal (now deputy mayor of London for Business) with the vision to bring down the cost of remittances and to introduce transparency in an industry renowned for hidden costs and marked-up rates. Xendpay is part of the Rational Group of Companies, which has made transfers in excess of $10 billion (€8.48 billion) since its inception in 2005.
Speaking about the expansion plans to India, Paresh Davdra, CEO & co-founder of Xendpay says: “India is deeply embedded in our roots, especially with Rajesh having been born and brought up in Indore, before he moved to London in 2001. It is a country that is currently at the forefront of the global economy, with a large proportion of the population engaged in international business which involves the transfer of money to overseas countries.
“We aim to empower every individual in India by providing them an easier, quicker, cost effective alternate to conventional money transfer services. We aim to offer the best exchange rates, with an unparalleled customer service and we are confident of capturing a substantial market share for outbound remittance from India,” Davdra adds.
Xendpay’s socialising of the money markets led to it being recognised as a “social cause” and a Clinton Global Initiative Commitment to Action. The company pledged to save customers $100 million (€84.79 million) in fees over a five year period, helping the families of migrants back home to access better education and social wellbeing.
Paresh Davdra continues: “We founded Xendpay with the vision to bring friends and families closer to each other and to help migrant communities support their families and friends overseas. By providing a platform in major remittance markets like India, this allows individuals to transfer money across borders with no additional fees. The mission of Xendpay is very close to our hearts, as it represents an extension of our commitment to help communities around the world.”
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