Send Money to India & Singapore with Google Pay US

Google Pay Expands International Money Transfers

Google Pay users located in the United States are now able to remit funds to GPay users in India and Singapore, marking Google’s initial foray into the global remittances market, as announced on Tuesday.

Strategic Partnerships

This new capability is enabled through collaborations with Western Union and Wise, both of whom have seamlessly integrated their services within the Google Pay platform. Josh Woodward, Google’s Director of Product Management, shared with TechCrunch that the rollout begins with India and Singapore, with plans for worldwide expansion before the year concludes.

“Our approach, consistent with many Google products, involves thorough testing, learning, and iterative improvements before scaling the feature,” Woodward explained.

Global Reach of Payment Providers

Western Union will facilitate cross-border payments via Google Pay to over 200 countries. Meanwhile, Wise – previously known as TransferWise – will extend support to more than 80 countries.

When a Google Pay user in the U.S. initiates a money transfer to an individual in India or Singapore, they will be presented with the precise amount the recipient will receive. Within the Google Pay application, users can select their preferred payment provider – either Wise or Western Union – and view the estimated delivery timeframe.

Initial Rollout and Key Markets

Currently, the remittance functionality is limited to Google Pay users in the U.S. sending money to recipients in India and Singapore; reverse transfers are not yet supported. Woodward indicated that India and Singapore were selected due to their significant role in the global remittances landscape.

According to the World Bank, India was the largest recipient of remittances in 2019, exceeding $80 billion. The U.S. remains the leading sender of remittances globally. Google’s ultimate goal is to enable fully reciprocal cross-border remittances on a worldwide scale.

It is important to note that this cross-border payment feature is presently restricted to person-to-person transactions. Businesses utilizing GPay in the U.S. cannot send funds to individuals or businesses in India, for example.

Competitive Landscape

This partnership will allow both Wise and Western Union to broaden their market presence and more effectively compete with established players like PayPal, which, despite its extensive reach, has encountered challenges in gaining traction within India. The liability and risk associated with these transactions will be borne by Wise and Western Union.

A recent Citi report indicates that approximately 250 million individuals globally transfer over $500 billion in cross-border remittances annually. However, the sector is poised for innovation. “The existing fees are excessively high; it’s concerning that a solution hasn’t been implemented sooner,” analysts at Citi observed. The global average cost of sending money is approximately 6.5%.

Fees and Promotions

Western Union has stated that recipients will not incur any charges and will receive the full amount in their local currency, as specified by the sender in the U.S. Wise will charge the prevailing exchange rate plus transfer fees, which will vary depending on the destination country. (“To determine the exact cost, simply locate a friend on Google Pay, select Wise as your partner, initiate a payment, and enter the desired transfer amount,” Wise suggests.)

Google itself will not impose any additional fees on customers. Furthermore, Western Union is offering unlimited free transfers through June 16th when using Google Pay, and Wise is providing a free first transfer for new customers up to $500.

Shelly Swanback, President of Western Union Product and Platform, commented, “The ongoing pandemic continues to significantly impact communities, customers, and colleagues, particularly in Asia and Latin America. This convenient channel will assist individuals in continuing to support one another during these challenging times as they explore new ways to pay and transfer money globally.”

Recent Developments

This announcement follows Google’s recent redesign of the GPay app in the U.S. and its expansion into banking services, including checking accounts offered through lenders such as Citi.