New Delhi: On Wednesday, the business banking and Payments platform, Razorpay introduced a MoneySaver Export Account designed especially for small and medium-sized exporters. Exporters now have the option to register an account in any of the more than 160 countries worldwide and receive payments locally using the Razorpay platform, saving on expensive transfer fees, chargebacks, and unsuccessful charges.
The launch assumes significance amid growing exports from India and “serving markets such as the US, Middle East, Canada, and Europe, among others that witnessed exports of $63 billion; an 8 per cent growth from 2022,” Razorpay said.
It’s significant because exporters commonly employ international bank transfers, which comprise more than 50% of their cross-border payments. Currently, most Indian firms may only accept payments into their Indian bank accounts, which entails a variety of fees, including SWIFT fees of $13 on every $200 sent, according to the report.
India’s annual exports account for $750 billion. “Even if 10% of the overall payments happen via bank transfers, the SWIFT charges alone can accumulate to a staggering $5 billion. There is a pressing need to overhaul the traditional remittance systems, which are archaic in terms of tedious paperwork, non-transparent fees and time-consuming onboarding processes,” the company noted.
The account can be opened and accessed by exporters via the Razorpay dashboard. The OPGSP compliant account ensures that every payment made through the Razorpay platform is supported by an electronic Foreign Inward remittance statement that can be accessed with just one click.