In a move poised to benefit an estimated 15 million Indian freelancers, Razorpay, a prominent omnichannel payments and banking platform, has expanded its MoneySaver Export Account to encompass international payment services. This initiative marks a significant development within the Indian fintech sector, specifically targeting the pain point of high costs associated with international bank transfers for freelancers.
Traditionally, international payments for freelancers have relied on direct bank transfers, which can incur significant fees of up to $30 per transaction. On top of this, currency conversion charges add another layer of cost, potentially leading to a loss of up to 25% of a freelancer’s income.
Razorpay’s MoneySaver Export Account offers a solution to these challenges. By leveraging their platform, freelancers can expect reduced fees, streamlined currency conversion, and a more efficient process for receiving international payments. This translates to retaining a larger portion of their earnings, ultimately empowering them financially.
Freelancers can open accounts in just seconds within major countries like the US, UK, Canada, and Australia. This eliminates the traditional hurdles and allows them to leverage preferred banking networks like ACH, SEPA, SWIFT, and FPS for their transactions. However, the real benefit lies in the zero withdrawal fees. Freelancers can receive local payments directly through bank transfers on the Razorpay platform, bypassing any additional charges that might affect their earnings.
This focus on cost reduction and efficiency is particularly relevant to India’s booming freelance market. As the second-largest contributor to the global freelancer market, many Indian professionals rely on online platforms to find work. However, current payment solutions are often inefficient and expensive. For instance, according to RBI reports, traditional methods like SWIFT transfers can cost around $13 for every $200 remitted. These high fees and currency conversion charges can significantly reduce a freelancer’s income.
Razorpay’s MoneySaver Export Account steps in to bridge this gap. By offering a cost-effective and user-friendly solution, Razorpay empowers Indian freelancers to retain a larger share of their earnings and compete more effectively in the global marketplace.
Firstly, opening a MoneySaver Export Account is a breeze. Freelancers can set up accounts in various countries within seconds without hidden charges. This ensures a transparent and affordable experience from the start.
Secondly, the account streamlines transactions. Freelancers can receive payments directly into their accounts from over 160 countries within seconds. This eliminates the delays and paperwork hassles often associated with traditional methods.
Security remains a top priority. The account follows the latest Reserve Bank of India (RBI) guidelines and utilizes video KYC for secure transactions.
The MoneySaver Export Account further streamlines the process by providing a single-click Digital Foreign Inward Remittance Certificate (FIRC). This eliminates the need for additional paperwork, saving valuable time and effort.
Razorpay’s MoneySaver Export Account is a comprehensive solution designed specifically for Indian freelancers. It offers a secure, affordable, and user-friendly platform that empowers them to retain a larger portion of their income and thrive in the competitive global freelance market.
“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,” Rahul Kothari, Chief Operating Officer at Razorpay said.
Razorpay has already supported export payments through its MoneySaver Export Account, which over 15,000 exporters have adopted since its launch last year. Additionally, the company introduced a Forex Service for founders, enabling Indian startups to transfer globally raised funds to India, thus maximizing their Foreign Direct Investment (FDI) inflows.
