Money transfer fintech Wise is poised to challenge banks in India’s $32 billion remittance market after receiving a new license from the Reserve Bank of India (RBI).
The UK-based company has temporarily halted the acceptance of new customers in India as it improves its infrastructure in line with the new license, which enables users to send larger sums of money overseas. Previously, outbound payments from India via Wise were limited to $5,000 per transaction. The new license necessitates upgrades to their back-end processes to meet tax and reporting regulations, as reported by Bloomberg.
Outbound remittances from India reached $32 billion in the year ending March 2024, an increase from $27 billion the previous year.
Shrawan Saraogi, Asia Pacific head of expansion at Wise, stated, “We will be primarily focusing on cross-border movement that’s currently almost entirely done by banks.” He added, “We believe we can be a significant player in that market by providing a product that is fast, affordable, and transparent.”