OFX (formerly OzForex) is an Australian-founded international money transfer and FX company operating globally. It's used by businesses and individuals for competitive FX rates on international wire transfers. Indian businesses sometimes encounter OFX as an option for receiving or sending cross-border payments. This guide breaks down OFX's real cost structure.
What OFX Does
OFX provides:
- International money transfer at competitive FX rates
- Forward contracts and FX rate hedging
- Multi-currency accounts in some markets
- Business accounts for recurring international transfers OFX is primarily a money transfer service (outbound: sending USD from US to India, or GBP from UK to India). It's not primarily an inbound payment collection platform for Indian merchants.
OFX for Indian Businesses: Inbound Payment Reality
Receiving via OFX: Your international client would use OFX to send money to India. They'd create an OFX account, initiate a transfer, and OFX routes to your Indian bank as a wire.
You don't need an OFX account as the recipient. Your Indian bank receives a SWIFT wire. FIRA must be requested from your Indian bank manually.
OFX's FX rates: OFX applies a spread above mid-market rate. For USD/INR, OFX typically charges 0.4-1.5% spread depending on amount and OFX account tier. Better than banks but not zero like Playto Pay.
OFX fee to sender: Typically $0-$15 depending on amount and currency (your client pays this, not you).
OFX Real Cost: Hidden Elements for Indian Recipients
| Cost | OFX (Your Client Sends) | Playto Pay VBA |
|---|---|---|
| Your Indian bank incoming SWIFT fee | ₹500-2,000 | ₹0 |
| FX markup at your bank | ~1-2% | 0% |
| OFX spread (client-side) | ~0.5-1.5% | N/A |
| FIRA | Manual from bank | Auto per txn |
| Daily auto-settlement | ❌ No | ✅ Daily |
| Card acceptance | ❌ No | ✅ 4% flat |
When OFX Is Relevant for Indian Businesses
Sending money internationally (outbound): OFX is better than most banks for sending USD/GBP/EUR from India outward (paying international vendors, subscriptions, etc.). Competitive FX spread, reliable.
Receiving via client-initiated OFX transfers: Functional but you lose FX rate control (your bank converts, not OFX). FIRA is manual.
For inbound payment collection: Playto Pay VBA (1% flat, zero markup, FIRA auto, daily INR) is purpose-built for this use case vs OFX which is transfer-tool-first.
FAQ
What is OFX's real cost for Indian businesses? OFX charges sender 0.5-1.5% FX spread. Your Indian bank charges incoming SWIFT fee (₹500-2,000) + bank FX markup (1-2%) on conversion. Total effective cost is higher than Playto Pay VBA's 1% flat with zero markup.
Can Indian businesses receive payments through OFX? As SWIFT wire recipient, yes. OFX converts and routes to your Indian bank. Your bank does final conversion. No FIRA auto, no daily settlement, no card acceptance.
Is OFX better than Wise for receiving international payments in India? Both are sender-side tools. For comparison: Wise has lower FX spread (~0.7%) vs OFX (~0.5-1.5% range). Playto Pay VBA (zero forex markup, auto-FIRA, daily INR) is better than both for systematic inbound payment collection.