Xpress Money, a global money transfer brand which currently operates in the cash-to-cash remittances market, plans to get into other channels for money transfer.
The company is looking to offer remittance facility through channels such as cash-to-account and cash-to-mobile on getting requisite approvals from the Reserve Bank of India.
According to Sudhesh Giriyan, head of Xpress Money Business, as per RBI’s Money Transfer Service Scheme (MTSS), the company is currently permitted to operate only in the cash-to-cash segment.
“We are in talks with the RBI. Once it gives us a go-ahead, we will launch these services,” he said.
In 2011, India received remittances worth $66.13 billion. Of this, nearly $15 billion was through the cash route.
The company holds a 10 per cent share in the cash-to-cash market, he said.
“The average ticket size is small for cash remittances and they primarily come from countries such as United Arab Emirates, Qatar and Oman,” he said.
The entry into other channels will help the company grow its business and tap in a big way the markets of, among others, North America, Europe and Australia which largely operate through the cash-to-account channel.
The average ticket size in this channel is nearly four-to-five times higher than by way of cash remittances.
Xpress Money is also eyeing a 30 per cent growth in remittances business this year.
The depreciating rupee and the recent increase in the inward remittance limit will aid the growth, he said.
Source: The Hindu Business Line
By: Shobha Roy