Digital payments for SME exporters: Payments and banking platform for businesses Razorpay on Wednesday launched a MoneySaver Export Account specifically for small and mid-size exporters. The facility allows exporters to open an account in any country (out of more than 160 countries) and receive payments locally via the Razorpay platform in order to save from high transfer costs, chargebacks and payment failures. The facility offers 50 per cent savings on international bank transfers for exporters.
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.
Importantly, exporters use international bank transfers frequently which accounts for more than 50 per cent of their cross-border payments. 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, it said.
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India’s annual exports account for $750 billion. “Even if 10 per cent 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 both in terms of tedious paperwork, non-transparent fees as well as time-consuming onboarding processes,” the company noted.
Exporters can open and access the account through the Razorpay dashboard. The account is OPGSP (Online Payment Gateway Service Provider) compliant to ensure that each payment on Razorpay platform is backed with a single-click electronic Foreign Inward Remittance Statement.
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“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,” said Rahul Kothari, Chief Business Officer, Razorpay in a statement.