Xflow vs Banks: The smarter way to manage cross-border payments

Traditional banks have historically dominated international payments. But they often come with high fees, slow processing times, and hidden charges. What if there's a faster, more transparent, and cost-effective alternative out there?

Xflow provides a modern alternative for Indian entrepreneurs, funded startups, and exporters across industries, including ITeS, who need to manage international transactions seamlessly. It supports international payments in over 140 countries and serves a thriving customer base of more than 7,000 businesses. 

With its transparent pricing model, you can rest easy knowing zero hidden fees are eating into your funds. In fact, with Xflow, you get to save 50% of foreign exchange (FX) costs compared to traditional banks. 

Here, we break down how Xflow compares to banks. And why it might just be the smarter, faster way to manage your global payments.

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.

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.

• Xflow 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 day

Business impact: Improves cash flow and operational efficiency

• Xflow 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: e-FIRA is auto-handled. Users can download the e-FIRA within 24 hours of the payment withdrawal 

Business 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

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.

Xflow is built for funded startups, ITeS and exporters of all sizes. It provides seamless and faster ways to collect payments globally. Here are some significant advantages for businesses who choose to settle international payments with Xflow:

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 upto 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

To understand how Xflow is transforming cross-border payments for businesses and how it differs from banks, let's take this real-world example of an ITeS company. This company was grappling with multiple challenges in receiving international payments: delays, high fees, and complex compliance requirements. That changed when they partnered with Xflow. With Xflow, they found a faster, smarter, and more cost-effective way to manage global transactions.

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:

1. A US-based customer purchases goods worth $2,000 The payment moves through multiple intermediary banks before reaching the ITES company’s Indian bank
2. The company waits 4–6 business days for the funds to be credited
3. The Indian bank deducts a $40–$50 SWIFT fee, along with an FX markup of 3–4%
4. Currency fluctuations during the waiting period reduce the final amount received
5. 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:

1. The US customer pays $2,000 using local US banking rails (ACH or local payment methods)
2. Xflow converts the payment at near real-time exchange rates with minimal markup
3. The funds are credited to the company’s Indian account within 1 business day
4. 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

Use our FIRA Calculator to see how much your bank is actually charging you for every international payment. Just upload your FIRA (Foreign Inward Remittance Advice) document, and you'll get a transparent, line-by-line view of what you’re really being charged for so you can compare it directly with Xflow’s zero-surprise pricing.

Xflow presents a smarter and better alternative to traditional banks for cross-border payments. An alternative that puts control back in your hands and helps you scale globally without drowning in fees or delays.

Ready to level up your international payments? Make the switch to Xflow and experience the difference. Sign Up now!

-Neeraj Krishnamoorthy, Director and Cofounder - TeachEdison