Remittance as a Service (RaaS)

Remittance-as-a-Service (RaaS), also known as Money Transfer as a Service (MTaaS), is an innovative approach that facilitates seamless entry into the remittance and money transfer industry for new businesses. By partnering with established, licensed service providers, RaaS allows these new entrants to leverage the existing infrastructure and licensing, thus enabling them to white-label the services under their own brand. This collaboration not only expedites the development and launch of new products and services but also ensures compliance with the stringent regulatory requirements that govern the industry.

One of the significant advantages of RaaS is that it lowers the barriers to entry for businesses looking to enter the remittance market. By utilizing the licensing and infrastructure of established service providers, new entrants can avoid the time-consuming and costly process of obtaining their own licenses and setting up their infrastructure from scratch. This not only reduces initial capital expenditure but also allows businesses to focus on developing and refining their product or service offerings, ultimately accelerating their time-to-market.

Another key advantage of RaaS is that it fosters innovation and competition within the remittance and money transfer industry. As more businesses enter the market, they bring new ideas, technologies, and business models, ultimately benefiting both consumers and the industry as a whole. Additionally, RaaS promotes collaboration between new entrants and established service providers, resulting in mutually beneficial partnerships that drive further innovation and growth. Overall, RaaS serves as a catalyst for positive change within the remittance and money transfer landscape, paving the way for a more accessible, efficient, and competitive industry.

If you want to start a money transfer service geared for person-to-person transfers across borders (cross-border payments), then remittance-as-a-service (or RaaS) might be the best starting point for you.

Remittance-as-a-Service or RaaS is a term that was coined by Faisal Khan (our CEO & Co-founder) in 2013. The quest was to find a legal method to offer white-label remittance services to startups and incumbents alike for the US market (which is fiercely guarded, complex, and expensive to operate in). Like Software as a Service (or SaaS), remittance-as-a-service refers to the whole money transfer business offered as a monthly payable service.


The following is the brief business definition of the service:

Remittance-as-a-Service is an all-encompassing solution that allows ISOs (Independent Sales Organizations) and Incumbent MTOs (Money Transfer Operators) alike to offer a managed services to their clients under a white-label offering where all aspects of the regulatory aspects, such as licenses and compliance are covered by the PLH (Principal License Holder) that is sponsoring you for the program.

Disclaimer: Not a legal definition.

Who Is This For?

Startups who would like to start a money transfer (remittance) business but do not have the necessary bandwidth (capital & time) to get licenses and would like to be able to get a fully white-label solution under their brand name.

Also, for incumbents in the same territory or from outside the United States, who would like access to the US money transmitter licensing market, but do not have the capital and time to invest in obtaining the additional money transmitter licenses in all the other states.

Offered in the Following Countries:

United States Canada
Europe United Kingdom

Program Details

Please go through the following program pages that highlight more information on the given subject.

  1. What is Money-Transfer-as-a-Service (MTaaS)
  2. What is Remittance-as-a-Service (RaaS)?
  3. Backstory on Remittance-as-a-Service
  4. API, Mobile or Web
  5. Pre-Requisites
  6. Crypto or Not
  7. Sample Correspondent Agreements
  8. Understanding Custody of Funds
  9. How to submit a detailed Flow of Funds (FoF)?
  10. Frequently Asked Questions for Remittance-as-a-Service
  11. Due Diligence (DD) Documents Requirement
  12. Payment Schedule for Remittance-as-a-Service
  13. Draft Referral Agreement
  14. Shall We Test Your Knowledge On Money Transfer?
  15. Detailed Pictorial FAQ (Frequently Asked Questions) About Our Remittance-In-A-Box Solution (Outdated)
  16. Your own Money Transmitter Licenses versus Remittance-as-a-Service


Without a license, you would be unable to take custody of funds or insert yourself into the flow of funds. Processing by your preferred payment service provider would not be entertained unless you, yourself, are not a licensed PayFac (Payment Facilitator).


Having a reasonable understanding of the money transfer market. The program assumed you know the nomenclature, business vernacular, and the intricacies of the business. You can test your general knowledge about the money transfer/remittance industry by taking this Quiz.

This page was last updated on February 26, 2024.

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