- International Payments product suite to contribute to over 20% of Razorpay’s overall payments revenue by 2025
- Company expects to serve over 1-2 Lakhs businesses by end of 2025 (currently 10,000 businesses)
- Existing merchants in India can open an account in the US, UK, Australia, or Canada through the Razorpay platform within 5 seconds, adhering to all guidelines set by RBI
INDIA, Bengaluru – 26th July 2023: In an industry-first move that aligns with its commitment to making international money movement simpler, safer, and seamless, Razorpay, India’s Leading Full-Stack Payments and Banking Platform for Businesses, has announced the launch of its MoneySaver Export Account. This product will enable Indian exporters to now open a Smart Account in any country of their choice and receive payments locally via bank transfers on the Razorpay platform. This will be India’s First Smart Account to offer 50% savings on international bank transfers for exporters, and help save them from high transfer costs, chargebacks and payment failures.
India has witnessed rapid emergence as a global exporter, serving markets like the USA, Middle East, Canada, and Europe, among others and witnessed exports of $63 Bn; an 8% growth from 2022. Exporters use international bank transfers frequently, accounting for more than 50% of their cross-border payments.
Currently, India’s annual exports account for $750 Bn. Even if 10% of the overall payments happen via Bank Transfers, the SWIFT charges alone can accumulate to a staggering $5 Bn. There is a pressing need to overhaul the traditional remittance systems, which are archaic both in terms of tedious paperwork, non-transparent fees as well as time-consuming onboarding processes.
When it comes to export payments, high transfer costs is one of the main concerns for businesses, others include challenges around chargebacks and transaction failures. For instance, imagine an Indian textile merchant, looking to sell their goods in a London-based store. The London-based store will prefer to pay in GBP (Great Britain Pound), and through a local bank account, because an international bank payment will mean the store owner will also have to pay transfer charges. Secondly, local banking presence adds a certain degree of trust and comfort for foreign businesses, which is crucial for an Indian business looking to grow and scale across borders. Currently, Indian businesses can mostly receive payments only in their Indian bank account, which would mean a plethora of charges, including SWIFT charges of $13 on every $200 remitted.
Hence, each time an Indian business wants to start exporting globally, they first need to plan and account for their payment process, instead of focussing on business expansion. They need a bank account in every country they want to business in, to build local trust and comfort. There is also a need for more transparency in fees, particularly for SMEs.
With an intent to solve these payment concerns of Indian exporters, Razorpay enables exporters to now open a MoneySaver Export Account in any country of their choice and is entirely free from any hidden charges, providing their global customers with a seamless and cost-free experience.
This account can be easily opened and accessed via the Razorpay dashboard. It takes an exporter only ~5 seconds to get started with receiving international bank transfers across 160+ countries via the MoneySaver Export Account, without any additional paperwork. A 100% OPGSP (Online Payment Gateway Service Provider) compliant solution, MoneySaver Export Account ensures that each payment on Razorpay platform is backed with a single-click electronic Foreign Inward Remittance Statement, readily available on the Razorpay dashboard.
Commenting on the launch, Rahul Kothari, Chief Business Officer, Razorpay said, “The Indian export landscape is expected to exceed $1.6 Tn, at approximately 48% of our nominal GDP of $3.4 Tn. This high trade-to-GDP ratio is only set to grow in the coming years; which is why we decided it was time for us to ease the hurdles exporters face when it comes to money movement. We are thrilled to have seen an incredible early adoption of the MoneySaver Export offering, and support over 10,000 exporters already. This reinforces our belief that the market seeks a solution that simplifies international bank transfers without the hassle of maintaining multiple accounts in different countries. With Razorpay’s MoneySaver Export Account, our aim is to democratize the international banking landscape, providing access to such a solution for all businesses thus empowering India’s export businesses to become truly global and grow disproportionately”, he added.
One of Razorpay’s customers, Chirag Mehta, CEO, Satrang Technologies said, “For foreign bank transfers, one of the key challenges is the hidden charges. With Razorpay, we received an affordable solution that allowed us to go-live fast, and enabled our customers to be able to pay us in USD. Razorpay MoneySaver Export Account has helped us reduce costs for our business.”
With its focus on building the country’s fintech infrastructure, Razorpay has endeavored to bring innovative and seamless payment solutions to over 10 Million businesses. The company’s razor-sharp focus on building India’s financial backbone has made it the preferred platform for growing Indian businesses to scale their business not just in India, but also in international territories.