As of today, Google Pay users in the US can send money to GPay users in India and Singapore, Google said on Tuesday.
The company has partnered with Western Union and Wise, which have integrated their services into Google Pay. This is the first time that one of the cross-border payment companies has signed such an agreement.
Josh Woodward, Google Product Management Manager, told TechCrunch in an interview that the company is launching cross-border payment operations with India and Singapore and intends to expand globally by the end of the year.
"As with some Google products, we will try and find out," he said.
As part of the collaboration, the Western Union will boost cross-border payments on Google Pay in more than 200 countries, and Wise - formerly known as TransferWise - will extend support to more than 80 countries.
When Google Pay users in the US try to send money to someone in India or Singapore, they will be notified of the exact amount the recipient will receive. From the Google Pay app, users can also choose which payment provider - Wise or Western Union - they want to use and for how long the recipient will receive the money.
The transfer feature currently only allows Google Pay users in the US to send money to those in India and Singapore - not the other way around. Woodward said the company chose India and Singapore because of how vital it is in the world of remittances.
India was the largest remittance recipient in 2019, receiving more than $ 80 billion a year, according to the World Bank. The US, meanwhile, is the largest shipper. Finally, Google intends to allow cross-border remittances worldwide.
Also worth noting: Cross-border payments are only available for person-to-person payments. (For example, companies on GPay in the US cannot send money to individuals or businesses in India.)
Partnering with Google will help Wise and Western Union expand their presence in many markets and compete with, for example, PayPal, which has a wider scope. Wise and Western Union will bear the responsibility and the risk.
Western Union said recipients will not pay any fees and will receive the exact value in their local currency as selected by the user in the US. Wise said it will charge the real exchange rate and some additional transfer fees.
In both cases, Google will not charge customers extra. Also, until June 16, Western Union will offer unlimited free transfers when sending money with Google Pay and Wise will make the first free transfer - for new customers with transfers up to $ 500.
Source of information: techcrunch.com