Payments firms PayPal and MoneyGram are planning to raise their share in the remittance market in India, reported Economic Times.

At $79bn, India’s remittance market is considered as the largest worldwide.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The report revealed that Kerala, Uttar Pradesh, and Bihar get the highest inflows from West Asia, while Punjab and Maharashtra receive more inflows from the US, UK, and Canada.

At $16bn per year, the US to India remittance market is one of the biggest globally, says PayPal that is currently targeting Indian NRIs.

Recently, PayPal’s remittance arm Xoom raised its money transfer limit between Canada and India to C$75,000 ($56,257.5). The previous cap was C$15,000.

PayPal business development and marketing manager Nasar Agboatwala said: “Indian customers have traditionally sent money back home for use cases, such as upkeep of houses or paying off home bills. However, we are looking to target the market at the higher end.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Agboatwala further said: “There are whole groups of Indians abroad looking to take advantage of investment tools in purchasing Indian real estate.

“Some NRIs are also looking to pay off their student debt or sending huge chunks of money before getting married, for example. We want to facilitate these transactions.”

Meanwhile, MoneyGram told the news agency that the remittance to GDP ratio will decrease from the existing figure of 2.7% to 2.3% by 2020 and 2% by 2021.

MoneyGram APAC head Anil Kapur said: “Remittance inflows, especially personal remittance, have a strong correlation to macro-economic factors in the country of employment.

“A fall or surge in oil prices, visa and emigration policies can impact the employment status. Beyond these factors, we do witness surges during festivals or periods of rupee depreciation.”