India is the largest recipient of remittances in the world, with USD 71 billion sent last year.
A London-based Indian-origin entrepreneur has launched a unique “pay-what-you-want” money remittance service that abolishes compulsory fees.
India-born Rajesh Agrawal believes his Xendpay online platform will save customers in the developing world £60 million over the next five years.
India is the largest recipient of remittances in the world, with USD 71 billion sent last year. World Bank figures show global migrants last year sent home 250 billion pounds in remittances to developing countries – with an eight per cent increase predicted for 2014.
“It is a social imperative that the cost of sending money abroad is significantly reduced,” said Agrawal, who announced the launch here this week.
“The remittance industry takes far more than it needs to in profit and in doing so drains away a lot of money that would otherwise reach those in developing nations. By launching a no fees, best rate transfer service I hope to challenge and change this,” he added.
Under the Xendpay model, customers can send anything from 1 to 100,000 pounds and will be asked to “tip” what they want for the service – even if it’s nothing – and will also be given the best exchange rates usually reserved for multinational corporations.
“I set up Xendpay not to be the biggest or to make money but to make money transfer better and cheaper. I believe people will recognise the value in what we are doing both financially and socially and that as a result the discretionary ‘tips’ model will work,” explains Agrawal.
The Xendpay model has been accepted as a Clinton Global Initiative (CGI) Commitment to Action, with an objective to save people sending money through the platform. Established by Bill Clinton in 2005, the CGI convenes global leaders to create and implement innovative solutions to the world’s most pressing challenges.
Xendpay is part of the Rational Group of companies, which offers low-cost money transfer services which has made transfers worth over USD 5 billion of transfers since inception in 2005.