Google Pay users in India can directly receive money in their wallets from users in the United States.

Google on May 11 announced that its GPay users in the US will now be able to send money to people using the app in India and Singapore. Google has entered into a partnership with remittance services firms Western Union and Wise.

However, the remittance feature doesn’t allow a vice-versa transaction.

As per Telecom Talk, the company has plans to expand this worldwide by the end of 2021.

How Will This Work?

As per Google, it has partnered with market leaders Western Union and London-based Wise to integrate their services into GPay. This is the first instance when both the firms have inked a deal for cross-border payments.

According to this partnership, Western Union will power cross-border payments via Google Pay in more than 200 countries, while Wise will be supporting the services in over 80 countries.

When a user in the US attempts to send money to someone in India, they will be informed about the exact amount that will be sent to the recipient. The GPay user can also choose the provider as well as the duration for the payment to be processed.

As per both the Google partners, Singapore and India were chosen due to their overall importance in the world.

India was the largest receiving country for remittances in 2019 with over $80 billion sent to the country, as per the World Bank.

Will There Be Any Charges?

Google will not levy any fees, with Western Union providing an option of free transfers till June 16. Wise has decided to make the first transfer free for new customers on transactions of up to $500.

Western Union has stated that the exact value in their local currency on a given day will be remitted to the GPay user in India and Singapore.

Wise’s charges of the foreign exchange rate and transfer fees will depend on the country.

Google's foray in the $470-billion remittance market marks a further step by it to expand its financial services offering, competing with the likes of PayPal in India.

Wise was launched in 2011 with an aim of making international money transfers cheaper and easier, while Western Union has a sprawling global network of physical locations.

(Edited by : Shoma)

First Published:May 12, 2021 11:19 PM IST