Traditional banks have historically dominated international payments. But they often come with high fees, slow processing times, and hidden charges. Xflow provides a modern alternative for Indian entrepreneurs, funded start-ups, and exporters across industries, including ITeS, managing international transactions. Here we break down how Xflow compares to banks.
Xflow vs banks: A comparison
Xflow provides efficient payment solutions that are often more flexible and cost-effective than traditional banking methods. Xflow has partnered with RBI-authorized banks to ensure compliance and safety in international money transfers.
| Feature | Xflow | Traditional banks |
|---|---|---|
| Transparent FX rates | Mid-market rate with no hidden mark-up fees–it’s as transparent as it gets | Banks offer IBR rates, which may vary from bank to bank and include additional costs, which are often hidden |
| Hidden charges | No additional costs | Yes, and these costs are passed on to users in the form of mark-up fees or value of services, etc |
| Processing time | 1 business day | 3-5 business days |
| Compliance | 100% RBI and FEMA compliant with FREE eFIRA for every withdrawal. Users can easily download eFIRA in 24 hours after the withdrawal | Banks typically take 1 or same business day to process FIRC requests. However, it requires manual efforts, making it a cumbersome process for the users |
| Third-party Integrations | Xflow is now available on popular marketplaces like Zoho Books | No such access |
| Intuitive Dashboard | Yes | No |
| Flexibility | Partial withdrawal | No |
Why choose Xflow?
Xflow provides a modern alternative that offers transparent fees, faster processing, automated eFIRA support and other features like transfer pricing, real-time FX, mid-market rates and more.
Xlfow offers: Mid-market rates
Why it matters: Significant cost savings, greater transparency, and reduced risks associated with currency fluctuations
Business impact: Save up to 50% on FX costs
Xflow offers: Local payment methods
Why it matters: Users can offer their customers their preferred local payment methods like ACH, FedWire for faster settlements
Business impact: Improves efficiency and ease of payment for the clients, improving business relations
Xflow offers: Fast settlement
Why it matters: Funds settled within 1 business
Business impact: Improves cash flow and operational efficiency
Xlfow offers: 100% digital workflow
Why it matters: Less manual work or no branch visits
Business impact: Saves time (an estimation of up to 3-5 hours) per transaction setup
Xflow offers: Automated compliance
Why it matters: eFIRA is auto-handled. Users can download the eFIRA within 24 hours of the payment withdrawal
Buiness impact: Eliminates manual compliance work
Xflow offers: Third-party integration
Why it matters: Seamlessly connects to accounting systems like Zoho Books
Business impact: Ensures seamless transaction of cross-border payments from third-party marketplaces
How does Xflow work compared to banks?
Xflow aims to simplify cross–border payments for businesses like ITES services, funded start-ups and more. Xflow’s approach is largely driven by:
1. Customer-first: Since its launch, Xflow has adapted itself to the needs of customers and regulatory changes in India and abroad to ensure seamless, affordable and secure international payments.
2. Transparency: Xflow ensures customers have full visibility of currency conversion rates, even before transactions occur. This openness is appreciated by merchants and strengthens trust in the ecosystem.
3. Digital-first strategy: Xflow offers a technology-driven infrastructure that ensures an agile operational framework and puts complex processes like compliance on auto-pilot.
In contrast, banks largely rely on legacy system architecture and a brick-and-mortar infrastructure to address compliance and other documentation requirements–all slowing down the process.
What are the key benefits of using Xflow?
Xflow is built for funded startups, ITeS and exporters of all sizes. It provides seamless and faster ways to collect payments globally:
1. Faster cross-border transactions
Traditional methods often take several days to process international payments due to the involvement of multiple intermediaries. Xflow simplifies transactions, making sure businesses receive their funds quickly with minimal delays.
2. Savings of up to 50% on FX costs
Banks often charge high forex markups and hidden fees. Xflow provides upfront, transparent pricing with competitive exchange rates and cashback on transactions, reducing overall costs.
3. Simple, digital, and hassle-free
Setting up cross-border payments with banks involves extensive paperwork, branch visits, and complex compliance checks. Xflow makes it easy with a 100% digital, hassle-free onboarding process.
4. Compliance without the complexity
Managing RBI and FEMA regulations can be difficult and time-consuming. Xflow ensures full compliance by handling documentation and tax filings, so businesses can focus on growth.
5. Built for businesses scaling internationally
Unlike banks, Xflow integrates directly with business workflows and third-party marketplaces like Zoho Books to seamlessly automate payment processes.
6. Bespoke customer experience
Customers can comfortably use Xflow’s intuitive Dashboard to withdraw funds, download eFIRA and more, with minimum or zero support. Xflow ensures the journey is seamless and quick.
Who should use Xflow?
- Indian businesses and service providers receiving international payments
- Startups and service exporters working with global clients
- SaaS companies handling foreign currency transactions
- Funded companies with global headquarters managing cross-border financial operations in India
How a global ITeS company optimized cross-border payments
Company Overview
Industry: IT & IT-Enabled Services (ITES)
Location: Mumbai, India
Clients: US, UK, and European consumers
Challenges: High fees, slow processing times, currency fluctuations, compliance complexities and revenue loss
Scenario 1: Using a traditional bank for international payments
Process:
- A US-based customer purchases goods worth $2,000 The payment moves through multiple intermediary banks before reaching the ITES company’s Indian bank
- The company waits 4–6 business days for the funds to be credited
- The Indian bank deducts a $40–$50 SWIFT fee, along with an FX markup of 3–4%
- Currency fluctuations during the waiting period reduce the final amount received
- Additional compliance checks further delay access to the funds
The final amount received post-deduction
$2,000 - (1.5% FX markup + SWIFT fees + currency fluctuation losses) ≈ $1,920.75
Time taken: 4–6 days
Additional hassle: Manual paperwork (FIRC, tax compliance, reconciliation issues)
Scenario 2: Using Xflow for international payments
Process:
- The US customer pays $2,000 using local US banking rails (ACH or local payment methods)
- Xflow converts the payment at near real-time exchange rates with minimal markup
- The funds are credited to the company’s Indian account within 1 business day
- Compliance, tax documentation, and reconciliation are automatically handled by Xflow
The final amount received post-deduction
$2,000 - (~1% fee) ≈ $1,980
Time taken: 1–2 days
Additional benefits: No manual paperwork, better FX rates, automated compliance, and reduced currency fluctuation risk
Outcome comparison
| Feature | Traditional banks | Xflow |
|---|---|---|
| Amount received (for $2,000) | ~$1,920 | ~$1,980 |
| Processing time | 4–6 days | 1 business day |
| Fees & FX markup | 3–4% + SWIFT fees + currency fluctuation losses | ~1% |
| Ease of use | Manual process, paperwork | Automated |
| Compliance & tax | Requires FIRC, manual tax filing, reconciliation issues | eFIRA auto-handled |
As a global business, receiving payments in US dollars was often challenging due to high transaction fees and complex processes. With Xflow, the 1% transaction fee has significantly reduced our costs, making international payments seamless and cost-effective. The platform is user-friendly, reliable, and has helped streamline our cash flow. Xflow has empowered us to focus on scaling our business without worrying about payment hassles. Highly recommended for B2B businesses dealing with international transactions
-Neeraj Krishnamoorthy, Director and Cofounder - TeachEdison
FAQs
1. Is Xflow safe for international transactions?
Yes, Xflow is 100% RBI and FEMA compliant, ensuring full regulatory adherence. Your transactions are secure, transparent, and legally compliant.
2. How does Xflow offer better exchange rates than banks?
Traditional banks add multiple fee components like SWIFT charges, FX markups, and more, making forex transactions expensive. Xflow offers transparent pricing with mid-market rates and no hidden fees, ensuring cross-border payments are affordable.
3. Do I need to handle compliance and tax documentation?
No, Xflow simplifies compliance by providing eFIRA, saving you from manual paperwork.
4. How quickly will I receive my payments?
With Xflow, payments are credited within 1 business day.
