- Direct bank transfers can cost up to $30 per transaction, along with currency conversion charges, causing Indian freelancers to lose up to 25% of their income
- Aims to benefit 15 million Indian freelancers with cost-effective international payments
- Existing freelancers using the Razorpay platform in India can open an account in the US, UK, Australia, or Canada within 5 seconds, enabling the use of preferred banking networks like ACH, SEPA, SWIFT, and FPS
INDIA, Bengaluru – 24th June 2024: With an unwavering commitment to simplify money movement for businesses irrespective of size, Razorpay, India’s Leading Omnichannel Payments and Banking Platform for Businesses, today announced the expansion of its MoneySaver Export Account for Freelancer Professionals. This makes Razorpay the first Indian Payment Aggregator (PA) to offer international payments for freelancers.
This feature will now enable Freelancers to open a Smart Account in any country of their choice and accept payments locally via bank transfers on the Razorpay platform, all while benefiting from zero withdrawal fees. Razorpay aims to empower over 15 million Indian freelancers by saving them up to 50% in fees and commissions on international bank transfers.
India stands as the second-highest contributor to the global freelancer market. They primarily seek work through social media or online freelancing platforms. However, the payment options currently available to them are not seamless and cost-efficient. International payments for exporters largely rely on International Bank Transfers, with SWIFT being one of the primary modes. However, these transactions come at a significant cost, as per RBI reports, with approximately $13 spent on SWIFT charges for every $200 remitted. For freelancers, the challenges are even more daunting. Direct bank transfers can incur fees of up to $30 per transaction, along with additional currency conversion charges. This results in Indian freelancers losing up to 25% of their income.
To address the growing concerns of Indian freelancers around payments, Razorpay enables them to now open a MoneySaver Export Account in any country of their choice, completely free of hidden charges. This offers their global customers a seamless and cost-effective experience.
The MoneySaver Export Account adheres to the latest RBI guidelines, incorporating video KYC ensuring a safe and secure experience for freelancers. The account enables freelancers to receive international bank transfers from over 160 countries within 5 seconds, eliminating the need for additional paperwork. Additionally, the MoneySaver Export Account offers freelancers a single-click Digital FIRC (Foreign Inward Remittance Certificate) and incurs no withdrawal fees from online freelance marketplaces, unlike other solutions that currently charge $2 per withdrawal along with marketplace commissions of 20% for every $500 earned. This account can be created across the US, UK, Canada, Europe, and other priority export markets, enabling the use of preferred banking networks like ACH, SEPA, SWIFT, and FPS.
Commenting on the development, Rahul Kothari, Chief Operating Officer, Razorpay, said, “While India continues to grow as one of the fastest-growing markets for freelancers, it’s crucial to have seamless and a cost-efficient method to manage international money transfers securely and support this dynamic community with immense potential.”
Kothari added, “Freelancers face formidable challenges, particularly with direct bank transfers that can carry fees as high as $30 per transaction, compounded by additional currency conversion charges. As a result, they lose up to 25% of their income. By addressing these challenges, our solution aims to significantly reduce the burden of high transaction fees and currency conversion charges that freelancers often face, thereby empowering this community with the unparalleled benefit of seamless, border-free global banking. Our commitment to providing a reliable, hassle-free financial experience can now ensure that freelancers can focus on what they do best—delivering exceptional work to clients around the world.”
Razorpay has provided significant backing for export payments via its MoneySaver Export Account. Tailored specifically for exporters, the MoneySaver Export Account enables merchants to receive international payments through electronic funds transfer systems. This account, launched last year, has garnered substantial adoption, with over 15,000 exporters embracing its benefits so far. In addition, last year, Razorpay also introduced Forex Service for founders, which enabled Indian startups to effortlessly transfer globally raised funds to India, empowering them to navigate the international financial landscape with ease and thus maximize their Foreign Funding Inflow (FDI) to India.
