Only the most transparent remittance operator is trusted by clients

Remittance operators that offer online money transfer to India from USA expect a great surge in the business in the coming years. There has been a phenomenal growth in the number of transactions both volume wise and value wise in the recent years. Financial experts say that the future of remittance industry is bright, but with a few riders.

It goes without saying that offering competitive rates for remittanceto India is a distinguishing aspect. According to the latest convention of remittance operators held in Switzerland in 2015, transparency will be the only way forward. As the technology becomes easily available to everyone, it doesn’t remain a game changer.

What is the meaning of transparency in this business?

Well, the term transparency is quite ambiguous, and it can be interpreted in several ways. What do the experts mean about money transfer business? As per business stalwarts, it means that the customer has to be well-informed about everything which is relevant for him, e.g. fees and charges applicable, details of service, money transfer rate, transaction time, and exchange rate margin.

Initially, it might be a daunting task for remittance operators because they do not have a system established to transfer money to India. However, it will become a routine thing after a few years as everyone will follow the same path.

It has been observed that in spite of stringent regulations, still there is a big gap between the actual cost of money remittance and what customers perceive. They get a surprise at the end of the transaction when the payout is less than expected. Business leaders feel that it is not the right way of doing business. Hence, transparency is more than required.

Remittance costs are declining every year

Statistics proves that the cost of remitting money is declining gradually. However, it doesn’t bring the profitability down as the number of transactions shows an increasing trend. The economy of scale governs the sector. New age technology and innovative techniques simplify the procedure, and more people find it practical to remit to India.

The use and popularity of the Internet increases worldwide and penetration of handheld devices makes the remittance fast and convenient. How to send money to India is not a daunting question now.

Experts say that user education is still a big challenge. People don’t know about several charges while initiating money transfer and often receive a “bill shock”. Use of intricate financial jargon confuses them sometimes. All these issues will have to be eradicated by making the process fully transparent. It will be the only success mantra!

Money remittance business acquires new heights of competitiveness

 

MoneyTransfer to India business is much larger than people think. According to the reports, more than 500 Billion USD were remitted last year, and the figure seems to touch 600 Billion USD mark in the coming years. It is quite obvious that competitiveness is the essential quality when a remittance agency wants to capture a large business chunk. The market is still growing, and it offers equal opportunity to everyone. In this scenario, only those will survive who offers best of the services. As new companies emerge on the scene with a new approach to customer-handling and servicing, people enjoy a transparent and fair pricing.

Information Technology changes the competitive landscape

Conventionally, the industry was managed by old-fashioned money exchange stores that offered manual methods of money transfer. The speed of transaction was slow, and there were issues with reliability and accuracy of money exchange. The emergence of online payment and popularity of handheld devices has fully transferred the situation. Now it is a matter of few clicks, and you send money to India or any corner of the world. The average cost of money transfer has dropped significantly, and availability of remittance operators have made the competition fierce.

Survival of the fittest is the rule

Experts say that a remittance operator offering services to Send Money Online can’t succeed in maximizing profits unless it works on a comprehensive strategy. It has to look into the interests of all stakeholders. When it meets the expectations of customers, money exchange agents, government and regulating authorities, and the workforce; then only profitability gets improved. It is needless to say that a well-planned business plan brings high levels of agility and smartness in the approach.

Two types of money transfers

• Bitcoin: It becomes a valuable tool for serving the sector not covered by banks yet. As the technology improves and it meets regulatory requirements, the use of Bitcoin increases. It is the best way to manage frequent money transfers of small denomination. The industry will grow phenomenally by covering the unexplored niche.
• Alternate money transfer: It is a typical “banking by phone” transfer service that doesn’t have the limitation of using Smartphones. In countries where more concentration of normal handsets prevails, the method becomes quite useful. It is popular in India, and the government is also promoting it by offering license to payment banks.

Responding to the dynamism of money remittance is a challenge, but it is quite achievable by enhancing competitiveness. When it comes about survival, operators that offer the best way to transfer money to India from USA will survive.