Virtual Money Transfer Operator – How does it work?

What exactly is a Virtual Money Transfer Operator (VMTO)?

Virtual Money Transfer Operator?

This is a question that is asked of me many times. A virtual money transfer operator is no different (in concept) from a Virtual Mobile Network Operator or like an entity that is a white-labelled affiliate selling web hosting.

The concept is pretty straightforward and hinges on the understanding of three things, that a Virtual Money Transfer Operator must abide by:

  • The do not get to touch the funds. The flow of funds is such that only licensed Banks and MTO/MSB get to touch the money.
  • The agreement is one based that of an Affiliate.
  • The Licensed MSB provides a White-Labeled platform for you to operate on (that includes the whole nine yards, from compliance to regulatory coverage, to payment processing, to KYC, etc.)

Being an VMTO allows you to enter a market for which you may not directly be licensed for, but rather you piggy-back on the license of an existing MTO in the market you are trying to enter.

I made this brief presentation that highlights how a VMTO works (please give a minute or two for the presentation to load). The copy of the presentation can be downloaded from here: Virtual Money Transfer Operator – VMTO

If you are interested in exploring the possibility of becoming a VMTO, get in touch and let’s talk.

This page was last updated on December 8, 2020.

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