Thomas Cook India has announced partnership with FINO PayTech, a banking correspondent that has been granted in-principle payments bank license by the Reserve Bank of India (RBI). This is the first time that a leading foreign exchange company has tied up with a payment bank to provide and facilitate ease in outward remittance transactions, and provide additional foreign exchange products and services to customers in Tier I to VI markets.
As per RBI’s report, Indian outward remittances increased by almost 200 per cent (from US$1.32 billion registered in the previous financial year ended March 31, 2015 to US$ 3.81 billion for the 11 month period ended February 2016), led by outflows for studies abroad and for maintenance of close relatives. Hence, Thomas Cook India’s strategic collaboration with FINO PayTech serves to tap into this opportunity, and catalyse growth for the industry.
Additionally, Thomas Cook India’s internal research has revealed that a large consumer segment of India’s Tier II + markets follow traditional banking options for outward remittances, whether for studies abroad or maintenance of close relatives based overseas, etc. Thomas Cook’s partnership with FINO PayTech, hence aims to open a new channel of payment transfer to middle and rural India; additionally providing this growing segment access to Thomas Cook’s foreign exchange products and services. This collaboration also serves to expand Thomas Cook India’s footprint in Tier I to VI markets.
Mahesh Iyer, chief operating officer, Thomas Cook India, said, “At Thomas Cook India, we recognise the multi-fold growth rate of the outward remittance market and our alliance with FINO PayTech is hence a pioneering initiative to leverage the powerful potential emerging from Tier II to VI markets. Our collaboration also serves to extend Thomas Cook’s footprint across middle and rural India while empowering customers with outward remittances to more than 120 countries via innovative money marts.”
Commenting on the association, Rishi Gupta, managing director and CEO, FINO PayTech, said, “Remittances, both inward and outward, will be a key product offering for FINO as a payments bank. Our tie up with Thomas Cook is therefore a strategic fit as we look to expand our product bouquet. We already have strong presence in the domestic remittance space, which is growing at 50 per cent YoY and offer international remittance cash out services. We are pleased to partner with Thomas Cook as it allows us to offer outward remittance services to our target customer base spread across Tier I to Tier VI locations, thereby completing the entire remittance bouquet offerings.”
