How to start a Money Transfer Business in India – Low Investment, High Returns
The digitalization of payment methods in India has been revolutionized. Now, many opportunities are opened for entrepreneurs, especially in the money transfer services sector. If you set up a money transfer business with a proper strategy and even with minimal investment, you can get a good amount of profit.
What is a Money Transfer Business and How It Works
Money Transfer Business helps in allowing you to send and receive funds within India through trusted banking services.
The business works as a mediator between the people who deposit cash or transfer funds to an agent who processes the transactions through secure networks. IMPS (Immediate Payment Service) or NEFT (National Electronic Funds Transfer) are the networks used in this process. The service is essential for a large country like India, where rural families may lack access to various banking services.
As per govt. law, retailer need to do sender KYC verification at every transaction. The process is quite fast; it takes about a few hours to complete the transaction.
Required Infrastructure and Software
Setting up a money transfer business in India is quite cost-effective. The required infrastructure includes:
- Licensed Software Platform – you need to have an RBI-authorised money transfer application to start this business. It will have all the tools for agent management, KYC automation and real-time tracking.
- Basic hardware- You need a few of them, like computers, a POS device, biometric scanners and, along with that, a stable internet connection.
- Web/ Mobile Agent Portal – You need a user-friendly dashboard, tools to track the transaction reforms and automated reporting.
- Compliance Tools- Combine your system to carry out KYC verification and monitoring, which is required for long-term sustainability.
Benefits of Offering Domestic Remittance
If you want to operate efficiently, Ezeepay’s Domestic Money Transfer (DMT) platform is one of the best options for you. By using this, agents can easily transfer up to ₹50,000 in a single transaction. You won’t face any technical complications and it’s completely secure to use.
Customer benefits for using Ezeepay
- You can do funds transferred through IMPS and NEFT networks instantly.
- The process is transparent and Retailer will be charged just 1% as a transcription fee. This is the lowest in the industry.
- Easy transfers are available even to the rural and unbanked users via cash-to-bank transaction services.
- Get real-time updates and receipts for every transaction you do.
Role of Agents and Commission Structures
Agents play a major role in the money transfer business and provide last-mile connectivity and personal customer support. The major responsibilities include KYC verification, accepting remittance requests and providing transaction receipts. In return, you will get a commission for providing these services.
Commission structure –
Agents mostly get 0.25% to 1% of the transaction amount per remittance. Frequent transactions can increase your earnings and also provide you with additional incentives or bonuses. Masters can also earn from the overrides commission from your sub-agents.
With Ezeepay’s DMT platform, these commissions reach high levels due to its low customer cost but high transaction turnover. And Ezeepay already have multiple Gateways for this DMT service. This platform is beneficial for retailers, who use mostly money transfer service at there shop.
Best Practices for Growth in a Competitive Market
For entrepreneurs in the money transfer sector, you should adopt the following strategies, which have already proven to be successful.
- Partner for Compliance and Technology– Partners like Ezeepay offer regular updates and security measures.
- Focus on agent training– you need well-trained individuals who can understand compliance, technology and customer service, which is required for the growth of this money transfer business. Carry out workshops and certification programs for gathering qualified agents.
- Leverage Local Marketing– you need to expand your reach through hyper-local marketing, posters or through local language and reach a wide range of customers. This will help you expand your banking services all over the region.
- Bundle services – Customers are always attracted to a place where they can get access to multiple services. Gradually add a few other services, like Ezeepay, which provides 70+ essential digital services under one platform, including money transfers, bill payments, recharges, insurance, GST, and ITR filing.
- Prioritise customer experience– It is essential to resolve the customer’s disputes very quickly and maintain transparency throughout the process of money transfer. 24*7 availability as provided by Ezeepay brings customer satisfaction.
