Google Pay users in the U.S. can now send money to GPay users in India and Singapore, Google said on Tuesday, making its first push into the remittances market.
The announcement comes months after Google redesigned the GPay app in the U.S., and made a push into banking services with checking accounts feature from lenders such as Citi.
Intermediaries
The American multinational technology company has partnered with Western Union and Wise for this move, Both the firms have integrated their services into Google Pay.
With this new approach, it is the first time that cross-border payments firms have inked such a deal.
Google is also planning to expand the initiative worldwide by the end of the year.
About Partnership deed
According to the partnership, Wise will extend the support in over 80 countries, while Western Union will power cross-border payments on Google Pay in over 200 countries.
How it will work?
In the transactional process, when a Google Pay user in the US will attempt to send money to someone in India or Singapore, he or she will be informed about the exact amount that the recipient will receive.
Following this, the sender will get an option in the Google Pay app to choose which payments provider — Wise or Western Union — he/she is willing to use.
Also, it would help the sender track the transactional details and the duration for the recipient to receive the money.
Apart from person-to-person payments, the cross-border payments is not available.
Additional Charges
Western Union had mentioned that it would not charge any receivers and they would get the exact value in their local currency as chosen by the user in the US.
However, Wise said that it would charge the actual foreign exchange rate and additional transfer fees, that would vary from country to country.
has said that it would not levy any fee to customers till June 16, Western Union will offer unlimited free transfers when sending money with Google Pay, while Wise will make the first transfer free for new customers on transfers up to $500.
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