Xendpay – moving money at lower cost

We get quite a few PR releases these days which is interesting, if a little time-consuming. The other day we were contacted about Xendpay, which struck me initially as outside our area of interest. On looking at it further though, it could be relevant, particularly for smaller firms on both the supply or buy side of transactions.  Xendpay is basically an on-line, low-cost money-transfer platform.

Xendpay.com, the online remittance platform which is aimed at reducing the cost of remittances, particularly for foreign workers sending money home, is one of the world’s leading and fastest growing independent foreign exchange transfer companies and has helped thousands of individuals to achieve a better foreign exchange rate and to make considerable cost savings by allowing them to make fee free transfers.

Birmingham City kit - don't they look lovely?

The parent company is RationalFX, who have operated in the foreign exchange market (more as a B2B firm) for some years. Both firms were founded by an Indian entrepreneur, Rajesh Agrawal,  who has won lots of awards.  “In 2011, Rajesh scooped the Young Entrepreneur Award at the 36th Asian Who's Who Awards”.

Now that’s not always a good sign  - remember Rok? Their MD won lots of awards...  And the fact that RationalFX are the shirt sponsors of Birmingham City football club isn’t exactly a plus point in my eyes, although it will please at least one of my good friends. (We understand they paid £27.50 for the sponsorship, including free pies*).

And what is interesting is how the firm is becoming a disruptive force in the market.  The principle of offering money transfers and payments across countries , using technology to undercut the banks, looks very sound. And it does mean that individuals transferring money to relatives, for instance, get to keep more of their wealth. And the same applies for small firms using the system.

Xendpay charge no transaction fee, making their margin purely on the currency rate, which is still very competitive compared to others.  We’ve done a couple of transfers to Ireland and the USA respectively - I had to go into the bank and fill in a form, then pay a transfer fee of around £20, plus of course the bank takes a hefty margin on the currency rate.

I liked the comment from Agrawal -  “We have been profitable from year one but there is no reason to overcharge for a service”, which is a view reflected through their services, and is a bit of a contrast to how financial services firms usually think.

So if RationalFX and Xendpay can provide a good service (and the word around the Internet looks very positive on that note), and significantly better value than the banks, then good luck to them – not withstanding Birmingham City!

* joke

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  1. Simon Gardner:

    Very interesting. I just signed up on Xendpay.com – no transfer fees as your say – and they are showing a Euro rate of 1.1721 for £3K – which is very good. And they don’t charge for paying by Debit Card (Ryanair take note!) I will keep an eye on them..

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