Money Transfer Business - Remittances - Faisal Khan LLC

Money Transfer (Remittance) Business

Money Transfer, or Remittances Business accounts for US$ 600+ Billion worth of transfers every year. Despite the COIVD19 times, eventually, long-term the value transferred every year will only increase.

The reason you’re on this page is because you’re looking at the ability of getting started in this business somehow and are trying to navigate the complex space. Trying to make heads and tails of this maze of complex jargon, ever-confusing regulations, licensing woes, compliance, access to banking, payment processing and in general just to understand the general nomenclature of this business.

You’ve ended at the right place.

Over the last few years, we have literally published 1,000s of articles, Q&As, podcasts, videos, how-to’s, etc. to help the cross-border payments community learn the intricacies and nuances of the “as-a-service” business model.

At present we offer help in getting setup with the money transfer business in four distinct geographies:

  • United States
  • Canada
  • United Kingdom
  • European Union (EEA – European Economic Area).

Understanding Remittance-as-a-Service

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 be able to offer white-label remittance services to startups and incumbents alike for the US market (which is fiercely guarded, complex an expensive to operate in).

At the time, circa 2012, white-labeled money transfer services were literally non-existent. The ones that were available, were simply out of reach of vast majority of startups and incumbents, even banks from emerging markets, due to the prohibitive pricing structure that was available at the time.

If you wanted to enter the United States market for remittance-as-a-service (or money transfer-as-a-service), the odds were stacked against you, unless of course you had deep pockets.

Even if you did, the manage to get going, the results were short-lived. In 2013, the United States government, particular the Department of Justice, launched something called Operation Choke Point (see Wikipedia Entry). This led to the start of the banks de-risking process, which many attribute with Barclays UK that started closing down the accounts of money transfer operators (the most infamous case of that of money transfer operators sending money to Somalia).

This really got us thinking, surely that has to be a better way to service the international money transfer market?

We literally worked diligently for over two years refining what we eventually became to call ‘remittance-as-a-service’. Many doors were shut on our face, many emails and calls went unanswered, but we did not stray from our mission. After 127 (yes, you read that right), 127 rejections, we were finally able to piece together what we aiming for. A packaged solution, that encompassed licensing, compliance, AML, banking, payment processing and white-label web presence for the money transfer market.

No wonder the quote, “The dream is free. The hustle is sold separately.” was something we could resonate with.

This page was last updated on November 15, 2020.

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