The volume of international payments originating from India is rising annually, with some transactions taking place multiple times a month and involving substantial costs. In fact, according to 1Lattice data, about US$18 billion worth of outward remittances from India were recorded in the fiscal year 2020 (FY20), US$12 billion in FY21, and US$19 billion in FY22.
Thankfully, sending money overseas is more convenient nowadays with crypto payments. You can send crypto abroad any time using your smartphone, laptop, tablet, or desktop—no need to go to a bank, post office, money exchanger, or money transfer center.
In light of that, if you want to learn how to make international payments from India using Ka.app, a beginner-friendly crypto payment platform, this guide is for you.
Why Do Indians Send Money Overseas?
Just like the rest of the world, people in India send money abroad for various reasons. Some of the common ones are as follows:
1. Travel
International travel and leisure activities have constituted the largest portion of India's outward remittances in the past three years. Consumers spent $6.91 billion on travel in FY22, recovering from the setbacks faced by the tourism sector because of the conflict between Russia and Ukraine.
In the second quarter of 2023, international travel increased by nearly 40% compared to the previous year, with the amount soaring to US$4.078 billion. Some travel-related international payments are for tour packages, flights, and hotel accommodations.
2. Education
Approximately 750,000 students from India emigrated to study abroad in 2022. Hence, many Indian parents send tuition fees and allowances to their children outside the country. In FY22, education-related outward remittances exceeded $5.17 billion, marking a 35% increase from the $3.83 billion recorded in FY21.
Some of the most common countries Indians study in include the United States of America (USA), Canada, the United Arab Emirates (UAE), Australia, Germany, Singapore, and France.
3. Medical Treatment
Some Indians seek medical care abroad for various reasons such as more advanced treatment options, more specialised professionals, and privacy concerns to name a few. Some of the most common medical-related international payments include hospital bills, medication, check-ups, and the like.
4. International Shopping
Consumer shopping behaviour dramatically changed since the pandemic. More people are shopping online—in fact, the number of online shoppers in India is expected to reach 427 million by 2027. This increase in digital shopping activity goes beyond the country, and thus some Indians also make international payments for the things they buy online.
5. Family Maintenance
Another reason why Indians send money abroad is to provide financial support to their loved ones. For example, an Indian professional may send money to their retired parents living overseas to cover their expenses like food, housing, healthcare, etc.
6. Gifts
Indians also send money abroad as a gift. This segment witnessed an increase last year, with $2.34 billion worth of gift-related outward remittances in FY22, which was up by 47.28% from FY21.
7. Investments and Debt
International payments for equity and debt investments rose from $431.41 million in FY19-20 to $746.57 million in FY21-22. This surge is likely due to the heightened interest among Indian investors in opportunities to acquire stocks in American companies, foreign bonds, etc.
Why Use Crypto for International Payments?
Using crypto in making international payments has various advantages, including, but not limited to the following:
1. Lower Transaction Fees
Traditional international money transfers, such as with banks and remittance centers, usually involve high fees like service charges and currency conversions. Crypto, on the other hand, usually requires much lower transaction fees, depending on the platform you will use. In Ka.app, for instance, you can send crypto for free to other Ka.app users as long as they receive it in the same currency (e.g., sent in KASTA and received in KASTA).
2. Faster Transactions
International bank transfers can take several days to process. Meanwhile, you can complete crypto transactions within seconds to a few hours, depending on the platform or Cash App alternatives you will use. In Ka.app, you can make an international transfer within seconds.
3. Avoidance of Banking Limitations
Indians may face limitations and regulations when making international transfers through banks, including specific limits on the amount that you can send abroad. Crypto can bypass these banking restrictions, allowing you to send larger amounts without such constraints.
4. Accessibility
Accessing crypto platforms can be easier than traditional banking systems, especially for those living in remote or rural areas of India where banking services may be limited. Also, you can make a transaction as long as you have an internet connection.
5. Little to No Currency Exchange Issues
When using traditional international payment methods, currency exchange rates can significantly affect the amount that will be received by the person abroad. Cryptocurrencies can minimise this issue as they operate on a global scale and are not bound by the exchange rates of fiat currencies.
6. Enhanced Privacy and Security
Crypto transactions generally offer a higher degree of privacy and security. This is particularly appealing for individuals who prefer not to disclose their financial activities to banking institutions due to privacy concerns or fear of data breaches.
How to Send Money Overseas Using Ka.app
Here’s how you can make international payments from India using Ka.app:
- Sign up at https://my.ka.app/signup.
- Log in on the platform.
- Buy your preferred crypto.
- After buying crypto, go back to the home screen and click the send icon.
- Select the recipient.
- Choose the crypto you want to send.
- Enter the amount you want to send.
- Confirm the transfer by entering your PIN code.
- Double-check the transaction details.
- The person abroad will receive the payment within seconds.
The Bottom Line
Indians send money abroad for various reasons, with travel and education topping the list. If you prioritise cost-effectiveness, speed, and security in making international payments, sending crypto via Ka.app can make a great option.
To create a Ka.app account, click here.
FAQ
Is it legal to use crypto for payments in India?
Crypto payments are not governed by any central regulatory body in India. They’re not explicitly illegal, but there are no regulations, rules, or established guidelines for resolving disputes in crypto dealings either. Therefore, any trading or payment activities involving crypto are undertaken at one's own risk.
What are the tax implications of using crypto for international payments from India?
Crypto remittances can be subject to taxes in India. It's advisable to consult a tax professional for guidance on any tax liabilities and reporting requirements.
How do I track a cryptocurrency payment sent internationally?
Crypto transactions can be tracked through the blockchain network they operate on. Each transaction has a unique ID that can be used to monitor its status and completion.
What should I do if I encounter issues with a crypto transfer from India?
If you encounter issues, contact the customer support of the platform you used to send crypto. In the absence of regulatory oversight, resolving disputes can be challenging, so it's crucial to use a secure crypto platform with a reliable customer support team.
