Update: Turns out Transferwise also has its Texas License… TransferWise, the online money transfer company started by ex-Skype cofounders: Taavet Hinrikus and Kristo Käärmann and has the venture capital backing of Sir Richard Branson got its first money transmitter license, issued by the State of Maine. TransferWise was previously piggy-backing on PreCash’s license, until PreCash decided […]
Is Over Regulation Killing the Industry? Money Service Businesses (MSBs) are one of the most regulated entities in the financial services vertical. In the United States the regulations are even more stringent. Yet, today, most MSBs are being denied banking access, as they are deemed risky. The industry term used by banking institutions is to […]
Calling Card Money Transfer Model Here is a presentation that describes (roughly) the model of how a calling card distribution company would work with a licensed money transfer company to get into the remittance business. The goal is to leverage the distribution network and the Dollar value on the calling card to enable MSBs to extend […]
Remittance Money Transfer Business A lot of people ask me how they can get into the remittance money transfer business. What are all the steps involved? What does the ecosystem look like? How should one start? etc. I decided to publish a mini-primer (for free) on How to Setup a Remittance Money Transfer Business. You can click […]
Introduction Remittance industry is not that difficult to enter into, once you understand the basics (which would be true for any other business as well), then you can, with relative confidence, ease into the business. It is also important to understand that money transfer is a serious business as far as the law is concerned. […]
Bank De-Risking MSBs In my previous posts [Can’t find MSB Friendly Banks? Go ahead, scream. No one is listening -and- The Sandstorm that is blanketing the operations of money transfer companies] I discussed on how the whole paradigm shift that is happening in banking with respect to de-risking is sending ripples in the money transfer […]
De-risking is a huge issue for MSBs and MTOs. Banks have been closing accounts, left, right and center, ridding themselves of all MSB / MTO related clients. I’ve written extensively on this: Can’t find MSB Friendly Banks? Go ahead, scream. No one is listening. The Sandstorm that is blanketing the operations of money transfer companies.
There is a lot of excitement in the industry after PayPal announced it was buying the remittance company Xoom. A lot many people have asked, how will this play out? What is my opinion of it? Well, here it is, feel free to disagree. I won’t talk much about PayPal + Xoom, I think it […]