One of the biggest challenges of operating payments based business where you are either an intermediary or holder of stored value
The United States is one of the most rigorous (read: strict) licensing geographies in the world. If you plan to sign-up a US resident as a customer, you had better be prepared, for the US law states that you need to be a money services business and would need to have the requisite money transmitter licenses in the United States.
Countries like Canada, UK and the various countries in the EU EEA (European Economic Area) also subscribe to this theory. If you are going to pick up customers from their territory, you ought to be licensed.
Not everyone can afford to dole out $100,000s to get licenses. Many-a-times, small startups and individuals who have stellar payments related ideas, simply cannot afford the licensing fees. What are they to do?
Well, the word that may come to your mind is to rent a license. However, professionally, in the banking and payments world, we rarely use that word. The word ‘rent’ is frowned upon by the regulators.
The correct words would be: You’re looking for license regulatory coverage for your business.
Some pertinent ones with respect to the regulatory cover are listed below:
What is Bank-led Sponsorship?
Licensing: Agent vs. Program Manager
What is an ISO and What does it do?
How will you operate? As a license holder or as an ISO?
What is Remittance-as-a-Service (or RaaS)?
To learn more, please fill out the contact form and choose “Want to learn more about License Regulatory Coverage”.
This page was last updated on November 27, 2020.