Your Own Money Transmitter Licenses Versus Remittance-as-a-Service

What Is More Cost Effective? Owning a License or Sponsoring One?

How much do money transmitter licenses cost (nationwide)? Take a guess. Now even if you multiple that number x10, you’re probably still not even close to the actual amount. We asked over a dozen specialists like lawyers, consultants, compliance specialists and industry brokers on how much (in their opinion) does a money transmitter license cost? The condensed results can be seen below.

Obtaining money transmitter licenses in the United States is no easy feat. So how much does a money transmitter license cost? Well, the costs vary from state to state, but all in all it takes in millions of dollars and is a process that can take up to two years.

Money Transmitter License Cost: Apply Versus Sponsorship

Indicated below in the two tables are estimated costs of sponsorship versus applying/owning your own money transmitter licenses. Your mileage may vary according to the complexity of your project including transaction set, risk assessment and geography.

Licensing Expenses For Year 1

EXPENSES (YEAR 1)ApplySponsor
Surety Bonding @ $ 8,000,000 at 1.5%$120,000$0
Net Worth (over all)$1,000,000$0
Application Fees$75,000$0
License Fees$30,000$0
Compliance Officer$120,000$0
GAAP Audit$15,000$0
FISA Audit$12,000$0
Compliance Program$75,000$0
Compliance Audit #1$20,000$0
Compliance Audit #2$20,000$0
Transaction Management System Audit$25,000$0
Attorney Fees (application)$125,000$0
Legal Opinion Fees$25,000$0
Technology Audit #1$25,000$0
Technology Audit #2$25,000$0
One-time Cost$0$15,000
Annual Sponsorship Fees (paid monthly)$0$45,000
Miscellaneous Expenses$25,000$0

Licensing Expenses for Year 2

As the licensing process takes nearly two years to complete, there are some recurring expenses you will have to incur in Year 2. So for purpose of a budget, you need to take the money transmitter license cost for both Year 1 and Year 2 into consideration.

See the estimated financials for Year 2 below.

EXPENSES (YEAR 2)ApplySponsor
Surety Bonding @ $ 8,000,000 at 1.5%$120,000$0
Compliance Officer$120,000$0
Renewal Fees for Licenses$40,000$0
Audits (Various, including Compliance)$75,000$0
Systems (Subscription Fees)$25,000$0
Annual Sponsorship Fees (paid monthly)$0$45,000
Travel & Miscellaneous Expenses$20,000$0

This page was last updated on November 28, 2022.

Share with others...