The company said that the service comes as an extension of the existing multi-currency banking facility and will facilitate reduce export costs by up to 8%. Merchants get local account details in the US, UK, and Europe, which means the buyers only have to do a local transfer to the exporter's account.
According to Winvesta, India's cross-border flows are over USD 800 billion annually and the company wants to enable micro, small, and medium enterprises (MSMEs) to bring home more of what they earn overseas.
Under the system, businesses receive virtual accounts in over 30 currencies, including USD, GBP, and EUR. The accounts serve as collection accounts for service exporters to receive payments, which are then converted to INR and deposited into their Indian bank accounts the same day. Winvesta says it supports payment collections from over 180 countries.
The company also stated that its collection accounts have a one-time refundable setup fee of USD 6.5, with no monthly fees. There are also no fees to collect money in the accounts or to withdraw funds to an Indian bank. Foreign funds are converted to INR at a ‘low spread’ of 1.50% from interbank rates and with significant volumes, these rates could fall further.
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