UPI vs Stablecoins vs Banks: Cheapest INR-AED & INR-SAR Remittances (2025 Comparison)
Khushi V Rangdhol Aug 01, 2025 07:12
In 2025, UPI, stablecoins, and traditional banks offer varied remittance options from India to the UAE and Saudi Arabia. UPI is cost-effective for receiving, stablecoins are fast and affordable for sending, while banks are reliable but expensive and slow.
Sending money from India to the UAE or Saudi Arabia has always been an expensive process, with high fees, poor exchange rates, and often long delays. However, with the rise of digital payment methods, new alternatives are now available that promise to make cross-border remittances more efficient and affordable. This article will compare three popular methods for remitting funds: UPI (Unified Payments Interface), stablecoins, and traditional banks, and evaluate their costs, speed, and accessibility for sending INR to AED (UAE Dirham) and SAR (Saudi Riyal).
UPI-Based Transfers: The Emerging Digital Method
UPI, India's real-time payment system, has already made a significant impact within India, and it is now beginning to extend its reach for international transactions. While UPI has primarily been used for domestic payments, it is gradually expanding its ability to handle international remittances. As of 2025, UPI allows recipients in India to receive funds from abroad, but sending money abroad via UPI is not yet fully operational for the general public.
Pros:
UPI is a cost-effective option for domestic transactions and is incredibly efficient, allowing for instant transfers within India. However, for international remittances, the full capacity of UPI is still in development.
Cons:
UPI can only be used for receiving funds in India and sending money abroad is still not supported. The cost of sending money through UPI will depend on the platform used and the intermediary banks involved, making it less efficient for international transfers.
Stablecoins: The Fast and Affordable Alternative
Stablecoins, such as USDC (USD Coin) or Tether (USDT), have emerged as a digital alternative to traditional bank transfers. These cryptocurrencies are pegged to a stable asset like the US dollar, providing a way to send money across borders with minimal fees and faster transfer times. For example, the UAE's regulatory framework is evolving to integrate stablecoins into remittance corridors, making it easier to send money from India to the UAE and Saudi Arabia using these digital assets.
Pros:
Stablecoins offer lower transaction fees compared to traditional banks and are faster, with transfers often completed in minutes. Additionally, stablecoins provide more favorable exchange rates as they are directly linked to the US dollar, making them an attractive option for cross-border payments.
Cons:
While stablecoins offer many advantages, they require both the sender and receiver to have cryptocurrency wallets. Furthermore, the cryptocurrency market is still volatile, and this could pose a risk if a large fluctuation occurs before the transfer is completed. Additionally, stablecoins are subject to regulatory scrutiny in certain jurisdictions.
Traditional Bank Transfers: The Traditional Option
Bank transfers remain a widely-used method for sending money abroad. UAE-based banks like Emirates NBD offer international money transfer services, allowing people to send money from India to the UAE or Saudi Arabia. However, these transfers are generally more expensive and slower compared to newer digital alternatives like stablecoins.
Pros:
Bank transfers are a well-established and trusted method for sending money, with no need for cryptocurrency wallets or additional setups. They are suitable for individuals who are more familiar with traditional banking services.
Cons:
Bank transfers can be expensive, with significant fees for international transactions. Moreover, they are slower than newer alternatives, often taking several days to process. The exchange rates used by banks are also less favorable compared to stablecoins, which could lead to additional costs.
Comparison of Fees, Exchange Rates, and Transfer Times (As of 2025)
Here’s a look at how each method stacks up in terms of transaction fees, exchange rates, and transfer times for INR to AED and INR to SAR remittances:
Conclusion
When it comes to remitting money from India to the UAE or Saudi Arabia, the best method will depend on your needs. If you are looking for a fast and inexpensive option for receiving funds in India, UPI is a good choice. However, for sending money from India, stablecoins represent the most affordable and efficient alternative, with lower fees and faster transfer times. Traditional banks remain a reliable option but come with higher costs and slower processing times.
As the financial landscape evolves, it's important to compare fees, exchange rates, and transfer times to choose the most suitable method. Stablecoins and UPI are likely to gain traction in the coming years as digital payment systems continue to grow, offering consumers more cost-effective and efficient ways to send money abroad.
Sources: Wise. (n.d.). "AED to INR Exchange Rates - Convert UAE Dirhams to Indian Rupees." Retrieved from Wise.com, Remitly. (n.d.). "Send Money to the United Arab Emirates from the US." Retrieved from Remitly.com, Circle. (2025, June 12). "Stablecoin issuer Circle targets UAE's $47bn remittance corridor." Retrieved from AGBi.com, Times of India. (2025, June 29). "Good news for UAE expats: No Dh26.25 fee for sending money to India, UK, 4 other countries, Emirates NBD clarifies." Retrieved from TimesofIndia.indiatimes.com
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