Archive for category: Business News

Wise Money Transfer Expands Global Operations After India Launch

The launch of Wise money transfer services in India shows that the UK-based remittance company is looking to expand its operations worldwide. The low-cost international money transfer service entered the Indian market with its Mumbai-based office that started services from the 1st of June, 2021. Wise money transfer has received approval from the Reserve Bank of India (RBI) to commence its services by partnering with a local bank. Therefore, it has partnered with RBL bank, allowing Indians to transfer money under the Liberalised Remittance Scheme (LRS).

Users from India will now be able to send money to 44 countries. This includes the US, the UK, UAE, Singapore, Malaysia, and some countries in the Eurozone. Furthermore, the service is available on various platforms like Android, iOS, and the web. Wise co-founder and CEO Kristo Käärmann says that this is a big step forward for Wise money transfer’s mission in easing global money transfers. Likewise, since Indians are becoming more international than ever, having a cheap and pleasant global money transfer service is crucial.

Company Background and History

Wise, formerly known as TransferWise, was founded by Kristo Käärmann, an Estonian financial consultant and businessman, and Taavet Hinrikus in 2011. Their revolutionary idea came as a result of constant frustration due to higher fees and bad exchange rates adopted by banks.

Wise money transfer has had a fair share of spotlight since its inception in 2011. It was already making headlines as one of the hottest tech startups in various magazines across the UK. In 2012, it was included in the top 100 startups in the UK by Startups.co.uk. Within 2015, it was inside the top 10 of CNBC’s Disruptor 50 list, which means it was constantly building a prosperous future.

Wise money transfer already had about 10 million euros in transactions during its first year of operation. Today, it allows holding and converting money in 54 currencies and sending money to 80 countries throughout the world. Likewise, it has more than 10 million customers throughout the world. Similarly, cross-border transactions exceed over 7 billion US dollars every month.

On 7th July 2021, it went public through a direct listing on the London Stock Exchange. The valuation was at 11 billion US dollars.

The Indian Remittance Market

India is one of the world’s largest players in the remittance market. Its inbound remittance recipient market is about 85 billion US dollars a year, which is the largest in the world. Similarly, the outbound remittance market is about 15 billion US dollars a year, which is still one of the largest. Most of the outbound market is covered by expenses in travel and abroad studies. According to Venkatesh Saha, Head of APAC and Middle East Expansion, Wise money transfer has a great opportunity to bring disruption in this less invested and less explored space.

Although inbound remittance processing is easy and free of hassles, the same is not true for outbound remittances. There was a great frustration that came with the hidden fees charged by banks. The intervention of fintech has brought some sense of transparency in this matter.

How Wise Money Transfer Works

Traditionally, people who wished to send money abroad could only do it with the help of a bank. Similarly, there were a lot of hidden fees involved in addition to high exchange rates.

Wise money transfer, on the other hand, is easy and comfortable, and more transparent than most other methods. Likewise, it works differently as compared to traditional cross-border transfer methods. First, Wise has its bank accounts in several countries in the world where it holds the local currency. Therefore, when you initiate a cross-border transfer, you pay with your local currency in Wise’s local account. With a small transaction fee and suitable exchange rate, Wise will release the corresponding amount in terms of local currency in the recipient country.

For example, consider that you are sending money from the UK (GBP) to your family in India (INR). First, you pay the required amount in terms of GBP in Wise’s British bank account and enter the recipient’s bank details. Wise will then communicate with its India-based bank account, convert the sum and release money in terms of INR.

Pros and Cons of Wise Money Transfer

As with any other money transfer service,  Wise money transfer also comes with its own sets of pros and cons. First, let us talk about the advantages of using this service. For smaller amounts, Wise trumps over other methods of money transfer with their very low fees. This is because they only use a small transaction fee in addition to a mid-market exchange rate. Similarly, their methods are transparent and you can check them out on the home page of the company website. As they are fully regulated, you need not worry much about the security of the transfer. Furthermore, creating a Wise account is very easy and you can do it online. Moreover, the transfer period is a couple of business days, which is quicker compared to some other methods.

On the other hand, Wise money transfer has some disadvantages too. As of now, it supports only bank transfers or debit and credit cards. Therefore, you cannot use cash and cheque. Similarly, the person on the receiving side should also have a bank account. Furthermore, if you are transferring a huge sum of money, the transaction fee, which is a percentage of the total sum, can be a problem.

Stay Close with the Business World with Top World Business

In this blog, we came across the details of Wise money transfer services in India. We learned what this meant for the people of India and how it has eased the process of sending money abroad. Then, we learned about the background and history of the company and how it has always been in the spotlight as a game-changing, disruptive innovation. Likewise, we understood the basic status of the Indian remittance market and why this is a great opportunity for Wise. Similarly, we understood how cross-border transactions work and how they are easier with Wise.

Top World Business is a one-stop place for all the business news from every corner of the globe. Our aim is to keep you updated on recent and future business trends so you can use them to your advantage. Contact us if you have any further queries.

Suez Canal Blockage And Its Impact On The Global Economy

The Suez canal blockage, caused by the grounding of a 1300 feet container ship, is one of the most highlighted incidents of 2021. On March 23, 2021, Ever Given’s mammoth-sized vessel lay stuck across the narrow section on the canal’s south. For the next six days, hundreds of other container ships laid stuck in a queue leading to a massive loss of hundreds of millions of dollars.

The disruption came in the early morning of March 23, when strong winds battered the ship. The bow of the 220-kiloton ship was stuck in the eastern bank while the stern lay on the western bank. The Suez Canal Authority responded swiftly and worked closely with the experts in marine salvage operations. It took six days of towing and pushing, and dredging, and the ship was finally afloat on March 29.

Why Is the Canal So Important?

The Suez canal blockage has highlighted the importance of this busy channel on a global scale. But why is it so important? Entering into the service for the first time in 1869, this man-made waterway accounts for more than 12% of the global trade at present. Cutting through the African nation of Egypt, it connects Port Said in the Mediterranean Sea to Suez in the Red Sea. This allows for direct shipping between Europe, Asia, and the eastern parts of the United States.

Let us take an example. Consider a ship carrying crude oil from the Middle East to Europe. Without the Suez canal, the ship has to circle Africa’s Cape of Good Hope. The distance is an extra 6000 miles. The additional costs in fuel would be hundreds of thousands of dollars.

In addition to its value for global trade, it also has a long-standing history and relationship with Egypt. Egypt first nationalised the canal in 1956. As a result, attempts of invasions came in from the British, French, and the Israelis, forcing it to shut down from October 1956 to March 1957. Again, during the Arab-Israeli war in 1967, the canal was closed for eight years. Today, it is owned by Egypt’s state-owned body, the Suez Canal Authority. The authority generates more than 5 billion US dollars in revenue for Egypt’s government.

Impacts on the Global Economy

Oil Prices on the Rise

Following the Suez canal blockage, oil prices jumped more than 4% as fears grew that it would take weeks to refloat the blocking ship. Brent crude rose by 3.8% to 64.32 USD a barrel, following a 3.8% loss on the previous day. Likewise, US West Texas Intermediate (WTI) increased by 4.1% to $60.94 a barrel, following a drop of 4.3% the day before.

As of 2020, 1.74 million barrels of crude oil and 1.54 million barrels of refined oil products passed through the canal.

Manufacturing Delays in Europe

The Suez canal blockage will cause manufacturing delays in several industries, and Europe will mostly be on the receiving end. The blockage stuck raw materials and parts coming from Asia. For example, cotton being transported from India will cause manufacturing delays in the clothing industry. Similarly, a delay in petroleum products coming from the Middle East means a delay in the manufacturing of plastics and other materials. The automotive industry will also feel the impact as auto parts coming from China stay stuck in the sea.

Container Shortage

A shortage of shipping containers was already a concern as demands for consumer goods went up during the pandemic due to the Suez Canal blockage. The empty containers that were to be returned to Asia were stuck, worsening the already existing concerns. As of now, we see a shortage of containers for goods being transported from India, China, and Indonesia to the rest of the world.

Congestion in Ports

Due to the Suez canal blockage, hundreds of ships were stuck in the process. When the canal was finally freed after six days, ships started flocking the ports of Europe in record numbers. This means the warehousing, trucking, and terminal operations in these ports will be naturally affected.

Preventing Similar Events in the Future

Maritime shipping is a key part of the foundation that makes the global economy tick. The Suez canal blockage has shed light on our negligence in the maritime shipping industry. Now, we have no other options than to learn from this incident, make necessary improvements, and prevent similar events in the future.

Rethinking the Size of Ships

The Suez canal blockage has brought concerns over the rapid increase in the size of ships carrying containers. Before the turn of the century, the largest ships in operation would carry a cargo of fewer than 8000 TEUs. Ever Given, the blocking ship that came into operation in 2018, carries more than 20,000 TEUs of cargo. This is one of the largest ships that sail the seas and oceans of the world at present. However, it does not end here. We are already talking about 25,000 TEU vessels and they are not very distant.

This dramatic increase in ship sizes is efficient and profitable for shipping companies, but it does bring problems. The mammoth-sized vessels operating today are the upper limit of what can fit in major shipping lanes of the world. If we do not keep track of these sizes, these problems will become more frequent.

Alternative Routes

When the global economy takes a hit due to a single ship, it is time to question the availability of alternative routes that are fairly cost-efficient. And, proposals are starting to pop up again. Israel is proposing the Ben Gurion canal project, which would be fairly as efficient as the Suez. Similarly, Russia is proposing the use of the Northern Sea Route along its Arctic coast.

Widening Narrow Lanes

One of the options to prevent a similar incident like the Suez canal blockage is the widening of narrow lanes. The canal authority is already planning to extend the southern section by 40m to the east. The expansion will take up to two years in case everything works normally.

All the Important Business Updates With Top World Business

In this blog, we came across the Suez canal blockage incident, which was one of the most highlighted events in 2021. First, we inspected the incident itself, looking for the causes to the disaster. Second, we saw the importance of the canal for global trade and economy and how it is more cost-efficient than other options. Then, we looked at the major impacts caused by the blockage in the global economy. Finally, we concluded with the ways to prevent such mishaps in the future.

Top World Business is a one-stop place for all the business news from every corner of the globe. Our aim is to keep you updated on recent and future business trends so you can use them to your advantage. Contact us if you have any further queries.

The Change in the Food Landscape: Breaking Down the Convenience Fee in Food Delivery Apps

Many restaurants have closed down because of the COVID-19. For the ones still operating, one lifeline available for them is food delivery.

If they choose to keep operating their business, most restaurant owners have no choice but to work with food delivery platforms to survive and make revenue.

But, there’s a catch: most customers remain oblivious of how many of these applications cost and prey on business owners as they charge restaurants for their services in the pretence of the customer convenience fee.

Food Delivery Exposed: The Hidden Cost Through Convenience Fee

Which? conducted a survey that investigated the costs of food from famous food delivery apps. It turns out that these convenient platforms are not one to be considered as the cheapest ways to purchase takeout food. The study compared the meal costs from five restaurants bought directly from the store and ordered from apps like Deliveroo, UberEats, and Just Eat.

Results highlighted that the takeaway cost 23% more on an app than walk-in purchases, with orders from Deliveroo the most expensive (31%), followed by UberEats (25%), while Just Eat orders are at 7%.

App Companies: “Commission Charges Are Fair”

In response, Deliveroo said they encourage restaurants to set the same delivery menu prices with the dine-in price they offer, and the commission charges are translated back into their business. The commission pays for the riders, customer services, and restaurant upgrades.

Meanwhile, Just Eat defends their rates as they align with their value delivery for their partners, which echoed the sentiments from UberEats that they are focused on providing the best food selection available for their customers.

However, this seems otherwise as most people surveyed by Which? complained that as they used delivery apps for food takeout and grocery delivery amidst the pandemic, there were late arrivals of food that sometimes were already cold or missing items on their orders.

Adam French, a “Which?” consumer rights expert, suggested that customers fancy food takeouts. They should be aware that the convenience they get from using delivery apps also comes with a hidden “convenience fee” cost.

Food Delivery: The Pricing Breakdown

As a consumer, understanding the cost of food you eat may be confusing. What does the convenience fee for food delivery look like? To know more about the premium price you are paying, here’s a quick breakdown for you:

You are paying for:

• The menu item, which is the actual food you want to eat.
• The Service fee, which is the fee for the company service.
• The Sales Taxes, which are taxes on your order based on local taxation laws.
• The Delivery Fee, which is the price you pay for having food delivery.

But, an article from The Wall Street Journal states that there are cases wherein the increased cost of delivery came from the restaurants themselves. These higher prices are said to be necessary measures to cover their restaurant expenses as these food delivery platforms cost them a big chunk of their revenue.

Despite costly prices, what makes food takeout platforms famous among consumers? Take a look below.

Why Consumers Choose Food Delivery Apps

Personalization and Customization

Instead of spending time and craning your neck in front of the menu, technology makes everything easier through one-touch food delivery apps. Most of the apps use AI functions, which suggest specific features perfect for different users, for example, lactose-intolerant individuals.

Diet and Nutrition

Better food options are attractive to consumers than fixed menus confined to a smaller pool of choices from individual restaurants.

These are more helpful to those with particular diets and need nutritional data and search functionality to count calories. Some apps also have in-app integrations with health and fitness-tracking apps and popular diet plans.

Pictures and Reviews

Food delivery apps also incorporate food pictures and customer reviews. Most restaurants also hire professionals for photographs, which helps a lot in attracting potential buyers.

Premium Offerings & Rewards

Similar to choosing Netflix and Spotify subscriptions, users can pay extra for premium food service, which allows them to rush orders and skip the long line outside. Instead of exposure to hazards of the COVID 19 virus, there is a feeling of comfort that the delivery driver brings items to your front door. Another loved feature is the loyalty awards given by these platforms, including discount vouchers or free delivery slips, which tap into the power of loyalty and rewards.

Conclusion: Is Convenience Fee Worth it?

Consumer behaviour shows that they are willing to pay premium fees for their convenience. Thus, the food industry is starting to take advantage of this.

Next time you consider ordering food for takeout, keep in mind that it will be naturally expensive, as you’re paying for someone to bring food to your door.

But if you’re trying to keep an eye on your spending and would like to support local restaurant owners more, before you add to the cart and check out on your favourite delivery app, consider the idea of picking your food up yourself instead.

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Promoting Vaccination for Employees As an Employer

After the fast development of vaccines in multiple countries, we are finally starting to contain the coronavirus pandemic. In the more developed countries, vaccination campaigns have shown great results. However, underdeveloped and developing countries are still a long way behind in acquiring and vaccinating their citizens. After the deadly second wave in India, vaccine exports have been halted, and dependent countries are in a panic.

The thing with COVID-19 is that it is a global challenge. New variants will keep popping up until everyone is safe. Thus, vaccinating everyone should be the biggest priority in the world right now.

Furthermore, the private sector has a vital role in controlling the pandemic. Unvaccinated workers are more susceptible to contracting and transmitting the virus to others. Since there is more closeness and contact in the workplace, employers have to promote vaccination for employees to keep everyone safe.

How Employers Can Promote Vaccination For Employees

Since the workplace is a meeting point of hundreds of people with different backgrounds and thinking, employers have a part to play in ensuring safety. Not everyone is wholeheartedly open to vaccinating themselves, and there might be several reasons behind this. Most importantly, you should not directly force your employees to vaccinate by ridiculing their beliefs. So, how do you tell your employees to vaccinate themselves if they are adamant about it? We will discuss some of the ways in the following sections.

Monetary Incentives

One of the first things employers can do to promote vaccination for employees is to provide monetary incentives. This is because times are hard as we tread through a recovering economy. Many people will find great relief if they can get some monetary benefits while simultaneously protecting themselves against the virus. Many companies in the United States are providing financial benefits in terms of cash, rewards, and gift cards. For example, Amazon offered up to $80 to its employees working on the front line. Likewise, it is also offering $100 to new hires who have already been vaccinated against COVID-19. Similarly, Target is offering to pay its employees free Lyft rides to and from vaccination sites.

Paid Time Off

Paid time off is a great way to promote vaccination for employees. This is because workers are worried about losing their jobs if vaccination and the recovery that follows it takes too long. For example, in the United States, workers, mostly Black and Hispanic, are positive about vaccinating if they get a paid time off. Therefore, governments are also encouraging private firms with incentives so that they do not lose profit while paying employees during leave. US President Joe Biden signed such a tax credit that would enable businesses with fewer than 500 employees to pay for time off for vaccination. On the positive side, this also shows that businesses care about the safety and well-being of their employees.

On-Site Vaccination Sites

On-site vaccination sites can be a great way to encourage your employees to get vaccinated. If your workers are fearful about getting vaccinated, this will help increase their confidence. Likewise, people who find it hard to get to vaccination sites and wait in lines will also greatly benefit from this program. On the other hand, you as a business can save time and money that could be lost due to larger leave periods.

Communicate With Care and Inspiration

When you are promoting vaccination for employees, make sure you do not go all out forcing everyone. First, you must accept that you will have both types of employees. There will be people who would be itching to get that dose and be safe as soon as possible. However, there will also be some skeptics. Therefore, you must use indirect methods that reward the vaccinated and inspires the unvaccinated. For example, you could hold a session informing about the importance of getting vaccinated. Similarly, you could put myth-busting posters that provide truth and clarity over the rumours of dangerous and fatal side effects.

Why Employers Should Promote Vaccination For Employees

Health and Safety For All

One of the primary reasons why you should promote vaccination for employees is to maintain good health and safety for everyone. Your employees are your most important asset who ensure the daily working of your organization. If some mishap occurs at the workplace because of your negligence, the consequences can be severely damaging. On the other hand, you cannot force your employees adamant about getting vaccinated as it is not legally required.

Increase in Productivity

Companies that are serious about vaccination for employees will see an increase in productivity in comparison to others. This is because when your employees have a feeling of safety, they will work without any worries. On the other hand, if an unvaccinated employee catches the virus, you might have to shut down the workplace again and again. Similarly, for people with a weak immune system, a workplace with unvaccinated workers can be stressful and dangerous.

Building Public Trust

When businesses promote vaccination for employees, it will build public trust in the importance of vaccination itself. Without solid public trust, we cannot meet the success targets and reach herd immunity. Due to several rumours and myths, we are seeing that governments only cannot build enough trust among people. With the right communication methods on top of attractive incentives, businesses can come forward to fill this void.

Flow with the Business World with Top World Business

In this blog, we discussed why vaccination for employees is crucial if we want to play our part in reducing the ill effects of the pandemic. Likewise, we understood how companies could play a crucial role in building public trust and support the government has been targetting. We also saw why vaccination for employees is a great way to increase and improve productivity in the workplace. Similarly, we talked about the different ways in which employers can promote vaccination.

Top World Business is a one-stop place for all the business news from every corner of the globe. Our aim is to keep you updated on recent and future business trends so you can use them to your advantage. Contact us if you have any further queries.

Face Mask Business this COVID-19 Paved Way to Success for These Entrepreneurs

The year 2020 is a silent one. Lockdowns imposed, people forced to stay in their houses, and to wear masks to avoid the transmission of the COVID-19 virus. Economies have crippled and turned into recessions as business operations halted. No one knows when this global pandemic will stop and we will continue living our lives in the old normal. But it seems like we are going to live with it, as to what these model entrepreneurs did to their businesses.

More than 200,000 small businesses were closed during the first year of the pandemic in the US alone, while some are still in the process of closing down. However, some ideas have actually flourished. Kalle Simpson, Abby Meadow, David Zisman, and David Halbout, understood that they needed to think differently and look for a good opportunity to stay afloat. They resorted and transitioned into a business that could benefit a lot of people; mask-making.

Donations to Profit

Kalle Simpson’s newly opened Manhattan headquarters of Discover Night selling luxury pillows and pillowcases experienced difficulties during the pandemic. With limited contact and the state-imposed lockdown, the business halted operations and transactions to give way for public health emergence.

Kalle’s business reached borderline, retailers panicked and cancelled orders, but this did not stop her from pursuing success. She transitioned to donating and making masks to suffice the shortage of masks and personal protective gears in the health sector.

As requests for donation grew, Ms Simpson created a sustainable solution for her business by gaining profit by making and selling reusable masks. Furthermore, for every sale, she would donate one. Discover Night gained attention from different sectors, especially the U.S. Postal Services which made her business the official face mask business supplier for USPS.

As for Abby Meadow, she made her way through with her Etsy business which made backpacks and leather pencil cases. She became an instant mask-maker overnight as her Mail Carrier asked if she was making masks. With her Etsy shop and creativity, she put up designs of masks for her face mask business store, Infusion, which sells about hundreds of three-layered masks. Abby sustained Infusion by making people better equipped during the pandemic and shall do so as long as people need it.

Both women sustained their enterprises regardless of how small or new they are. The in-kind donations of masks made their branding stronger. They had a great vision to help and thus, gained a living out of it.

Transitioning Businesses into Mask-making

In order to make new fashion trends, we innovate our senses into what is popular and game-changing. In the case of Daniel Zisman, the pandemic took a toll on his clothing business. Proper Cloth, a custom-shirt company, leapt into a hot niche available in the current trend; tailored masks. His company used only high quality threaded fabrics, cotton, and silks for making health safety masks out of fashionable materials. Thus, proper Cloth’s sales rose up against its revenue despite the pandemic’s limitations.

On the other hand, it is tough in the transition from a heavy workforce business into mask-making. David Halbout, a custom furniture maker, had but a small income before the pandemic. His business halted its operations simply because no one was interested in buying furniture in the middle of a global health crisis. With collaborative efforts along with his textile artist wife, Natalie d’Idris, the couple decided to transition their business to face mask business making as seeing the demand for protective gears at its peak. Certainly, for David and Nathalie, survival amidst the pandemic was the most important priority.

Helping Through Donations

The occurrence of the pandemic revealed the communal action collective groups have, a helping hand. These enterprises, regardless of how small or big they might be, shall take action for the society to survive and at the same time, gain profit out of it. Kalle and the rest of the aforementioned owners are among many nonprofits and companies helping to fight the pandemic.

Donations are conducted like relief efforts, money, masks, and such that could benefit the community like JBL, Ergatta, and alike. This is a charity effort done by businesses amid the shortages of masks and the need to use them to protect themselves from the virus.

Flexibility of Businesses

These entrepreneurs not only showed capabilities within their talents but also resiliency and flexibility. Transitioning to an unknown industry such as mask-making made these aforementioned businesses stronger and flexible within fields.

These are demonstrations of how businesses can still thrive with flexibility and resilient capabilities in times of crises.

In a post-pandemic society, most businesses are thinking of reopening and realigning their businesses as per their interests. This will boost the local and national economy as services and products are now available for customers, as well as investors.

Small businesses credit local communities as transactions are close and enough for localities to resort to. Indeed, the pandemic took a toll on different industries in our economy.  Huge impacts have struck the global economy as lockdowns were imposed, but we are to adapt to this new normal and move on with our lives. Now that businesses are recovering from the pandemic, we shall continue this practice until it lasts.

So, did you like our coverage on our face mask business? You can keep on following us for the latest business news and happenings.