Mumbai, April 6 -- Travel- and foreign-exchange-focused fintechs such as Niyo, Scapia, BookMyForex and Thomas Cook India are facing a double hit from the war in West Asia, and from the persistent weakness in the Indian rupee-both forex usage and remittances have fallen.

Most users are opting to carry higher cash amounts than to rely on cards and prepaid wallets, as they become more cautious about travel, even to regions outside the Gulf Cooperation Council. Also, they are increasingly opting to withdraw cash in part or in full from forex cards and wallets upon arrival at the destination, rather than continue holding balances.

The war has also disrupted business payment flows and cross-border settlements, as several local banking operati...