Can I use an aggregator on the Starter plan and use the aggregator to payout to multiple countries (more than the allowed number)?
No. That would be violating the spirit of the offering. You would have to upgrade your plan.
Do aggregators have to be approved and if so, how long does that take?
Yes, aggregators have to be approved. They would go through the same due diligence as a correspondent tie-up would and they too would need to sign a correspondent tie-up contract with the principal license holder. The approval times depend on the complexity of the tie-up and the organizational setup of the payout partner (banks are much more slower than money transfer operators). Assume 1-3 months.
How do I tell the payout partner in my beneficiary country to have a correspondent tie-up with the solution provider?
If you have a licensed payout partner, you would need to tell them, that you are willing to bring international remittances business to them, however, the US counterpart has requested to have a correspondent tie-up agreement (or payout agreement) with the payout partner and in this case would like to get in touch with you, i.e. the payout partner.
How many beneficiary countries can I have?
Depending on the package you choose, the number can vary from one to many. Please see the Remittance-as-a-Service (RaaS) Comparison table for more information.
Can we make payments into China?
We will need approval for China payout after we complete the due diligence of both the customer and their payout partner (if that is the case).
Can we pay directly into a bank account into Nigeria (for the payout partner)?
This depends on the solution provider. Some are okay with direct payments (SWIFT) into Nigerian bank accounts, some are not. It varies as per the banking partner they have. Please inquire. Payout into Nigeria is approved, however, direct wire to a Nigerian A/C could be an issue from the originating bank end.
Can my daily limit corresponds to the reserve amount I have with the Payout provider in settlement Country and Not in the US if the PLH is using the same correspondent tie-up or Payout Provider in settlement Country?
If you have an agreement with a payout partner in a specific country, say Payout Partner ABC in Country X, and the US Solution Provider “also” happens to work with Payout Partner ABC in Country X, then the question you are asking if your deposit with Payout Partner ABC would correspond to the daily limit that is set by the US Solution Provider.
The answer to this is – it depends. If the Payout Partner ABC in Country X will intimate to the US Solution Provider that they will not require any pre-funding from US Solution Provider for purposes of the payouts done on your behalf – then the US Solution provider could waive the limit entirely or make the limit equal to the deposit that the Payout Partner ABC in Country X is will to cover you for.
What happens under a RaaS program when you want to use a specific provider in the beneficiary country?
There are two options you can exercise:
Option A: The PLH (Principal License Holder) may already have an existing relationship with a settlement & payout partner in the beneficiary country, so which brings us to two further cases:
(i). You like their rates/network, and decide to carry on, or,
(ii). You do not like their rates/network and decide not to carry on with their existing provider and ask them to reconsider option (B).
Option B: You can request the PLH to establish a new correspondent tie-up with the preferred partner you would like them to work within the beneficiary country. Please ensure this during the time of your negotiation with the partner. PLH reserves all rights not to enter into an agreement, however, in most cases they oblige if you have a solid case.
In the Pro or Starter package, can I increase the number of payout countries?
You cannot increase the payout countries until 90 days of being up and running. After 90 days you can request for a review.
What is the procedure to use our own payout partner in the payout country?
This is something that is asked of us a lot. Please refer to this frequently asked question: Who is providing the payment rails to the countries we plan to send money to?
For which country/countries is remittance-as-a-service (RaaS) available?
The new and revised pricing packages for RaaS are currently only available for the United States. We will be expanding this to Canada, the United Kingdom, and Europe as well in the coming months.
If a RaaS Client themselves are a licensed money transfer company in say Europe and they have extensive agreements with all the payout countries (in say Africa), will the principal license holder agree to sign an agreement with the European Money Transfer Operator? Yes or No? If Yes, please explain.
Yes, they will have to go through the DD process and enter into a Payer Agreement.
Given the above scenario, where the European partner is responsible for the payout, is pre-funding still required? (not the reserve, but the pre-funding?) Yes or no?
Yes. However, the pre-funding will be managed by the MTO by paying out the transactions in advance. If they themselves are the MTO that is payout out, then pre-funding is not required?
If I opt for my own payout partner who also happens to be an aggregator, are the country limits still applicable to us?
Yes, the country limits would still be applicable and in order to increase the country limits, you can simply upgrade your package and pay the difference.
What are the restrictions in using an aggregator?
In order to use an aggregator of your choice, you must have the aggregator sign a correspondent tie-up agreement with the solution provider.
When we use an aggregator, do we need to get the payout countries approved?
Yes, all payout countries must be approved by the solution provider. Without such an approval, you risk ceasing your account.
Can we use an aggregator for our payouts?
Yes, you can, however, as cited before, your aggregator must have a correspondent tie-up agreement with the US solution provider (i.e. principal license holder) and also obtain an approval (no objection certificate) for all the countries for payouts.
Can we propose our own payout provider?
Yes, in order for that to happen, please be cognizant of two things. The solution provider may (or may not) accept your request for a correspondent tie-up. Though in most cases they will, they do have the option of saying no to you. Secondly, any pre-funding done would have to be borne by you.
Typically a correspondent tie-up agreement takes anywhere from 3-6 weeks to be completed. Depending on the workload (on either side) this could be longer. Such timelines must be taken into account.
The correspondent tie-up is a formalized process and a contract. It is not something that can be rushed. The following two videos below help you understand how the process works.
The due diligence (DD) documents for a payout partner vary from solution provider to a solution provider.
Watch these videos for a better understanding about correspondent tie-ups.
- What is a Tri-Party Correspondent Tie-Up Agreement?
- What is a Correspondent Tie-Up & Why it is necessary?
You can read up more about the due diligence documents here.
Can money be sent outside the USA?
Yes. The money can indeed be sent outside the US, but only to the bank account designated and in the name of the payout partner, with whom the US solution provider has a correspondent agreement signed with.
Which payout countries are available at present?
At present, the list of payout corridors and their rates can be seen here: Payout Corridor Rates.
As always, you can opt to bring in your own payout partner, but you must go through the process of becoming a correspondent tie-up with the US solution provider.
Payout Partner Provided – Is this only in the case of a white-labelled offering?
All instances of remittance-as-a-service are white-labelled by de facto. The payout partner is simply the settlement process in which the solution provider is working (i.e. the countries in which they are working and the specific types of payouts they are able to do). Whether or not you opt for API and build your own app, or use the solution providers white-labelled app, has no bearing on the payout corridor. They are offered as-is.
The list of payout corridors can be seen here: Payout Corridor Rates.
Can we propose our own payout provider? How long does due diligence take, Are there any extra costs associated? What is required of us and from the payout provider?
Yes, you can propose your own payout partner. As pointed out in the FAQ, the process can be anywhere from 3 weeks to 6 weeks (depending on how busy the solution providers are). The due diligence can easily take 3-4 weeks. Usually, there are no costs involved.
A sample of the due diligence documents requirement can be seen here.
This page was last updated on December 28, 2020.