In this competitive era of entrepreneurship, where most of the revenue streams are dwindling and uncertain, it has become challenging to find a successful business model that does not demand heavy capital investment.
There are hardly a few industries that offer assured profits in low investments. The money transfer business/ Money transfer agency franchise is one such business model that has been blooming many folds and has witnessed a constant rise.
How does the business of Domestic Money Transfer work in India?
Domestic money transfer is a business where any citizen can go to the DMR agent or any authorised fintech agent to transfer their money from one part to another part of the country. This is a cash to Account transfer service, where the sender needs only a unique phone number to send the money to the bank account.
Here the DMR agent uses IMPS or NEFT for the bank-to-bank transfer or uses any money transfer Fintech portal for cash-to-account transfer for which they earn a lucrative commission. This service is used by migrant workers to send money to their families back home.
How to choose the right money transfer portal to start your business with?
The following are the factors that individuals should look for, before associating themself with any money transfer franchise:
Charges
One should definitely study the charges that the FinTech portal takes for the franchisee as well as per transaction.
It is very difficult to make good profits if your portal is charging a lot on every transaction.
Customer-friendly UI
The portal should be easy to use and should be available in the language that you are comfortable with.
Good commission
The main aim of starting the money transfer franchise is to make good profit. You should study and compare the prices that each portal offers before starting your franchise with them.
Support and grievance redressal
The Money Transfer business requires monitoring and support. Thus, you should thoroughly check and opt for a Money Transfer portal that has a good support and grievance redressal on call.
What is the market size of the Money Transfer business in India?
According to the latest report of 2023, the market of money transfer business is about 130 crore with about 90 million users of it; making this a prominent business model in India.
According to a survey, on average, a money transfer agency makes 20,000 to 30,000 rupees as their commission per month.
Any person can start their own Money Transfer transfer franchise with a minimum investment or for free if they have a retail outlet or any mode to reach their targeted audience.
