RAAS – Remittance as a Service
Have you been thinking about how to get started as a money transfer operator? Most entrepreneurs are thinking how they can legally launch a money transfer service from USA to a country (or countries) of their choosing?
Here are some of the salient features (proposed) of a white-labeled money transfer solution (or Remittance-as-a-Service – RaaS) model:
I’ve been speaking to a PHL (Principal License Holder) who holds Money Transmitter Licenses in various US States.
- They are licensed in about all 50 US States
- They are available to provide a white-labelled service for remittances.
- This would include the countries you are looking for in say Africa, South Asia, GCC, South East Asia or Latin America.
- The white-label service would be on your domain.
- As an option, with tie-up with a 3rd party, PLH provides the following on the US side of things:
- Web Platform (IT/Software)
- Payment Processing
- Bank Accounts
- On-boarding KYC
- You will be doing the marketing of the service (the PLH would take care of on-boarding and processing).
- As the Client legally belongs to the PLH, we can make a provision in the contract that the client data also be shared with you.
- You will have to provide a Bank (or Banks) or MTOs in the receiving countries.
- You would also be responsible for arranging the pre-funding that is required on the beneficiary side (at the Bank or the MTO you bring to the table).
- The Bank/MTO will sign an agreement directly with the Principal License Holder.
- The Model is based on a very low Revenue Share.
- The RaaS has a low monthly recurring cost.
- You could be up and running in 30 Days or Less.
- This is a non-exclusive arrangement.
Our professional fee for arranging this partnership is US$ 20,000 (one-time).
US$ 5,000 is payable up-front, and the balance US$ 15,000 payable once you sign-up with PLH.
At present, the ability to use and/or integrate your own app, and/or your own processor and/or bank in the US and/or modify the existing flow and/or or any other structural or operational changes, is not on the table for developing countries or emerging markets. Such options are only open for developed markets (for example G20 nation member).
The arrangement right now is for US-Outbound Remittances for those settling into emerging markets / developing countries. For these MTOs, Netting off is not allowed in this arrangement, and is something that could be considered at a later stage.
This page was last updated on December 24, 2019.