In the previous video, we discussed What is Remittance-As-A-Service (RaaS)? In this video, I will explain what some of the price points are. How much does it cost to put together such a turn-key solution for remittance-as-a-service or money-transfer-as-a-service!
Hello, My name is Faisal Khan. I am a banking and a
There are many plans for it and there’s probably a plan that might just fit your requirement. However, there is a certain barrier to entry. There is a basic price that you have to meet. The plans vary from region to region. North America has different pricing from Canada, different pricing for
On transaction fees expect to pay between 25, 30 cents, 40 cents on the low side; 50 cents as an average; one dollar as the high. And on the volume fee you are expecting to pay anywhere from 35 40 basis points on the low side; 50 to 60 basis points in the middle; and as high as 80 or 90 maybe even 1 percent 80 90 basis points is a little higher, but in certain cases for certain corridors, that may just be the base price. Setting it up as a broker, I charge anywhere from 20 – 25 thousand dollars to do this per territory per region. If this is something that you know you are thinking about these are the costs that you need to take into consideration.
There is one other cost you need to take into consideration well, two other actually. One is the cost of prefunding. We need to prefund, so you may be looking at twenty five thousand dollars or fifty thousand dollars per beneficiary country. Typically in a RaaS arrangement you are allowed up to three or four or five beneficiary countries. If you want to fund all five, expect 25 thousand dollars times five: a hundred and twenty five thousand dollars is expected of you. And then the RaaS provider would also like to see your marketing budget. So, you need to budget for that maybe two, three or five thousand dollars per month in your marketing efforts. And those are some of the numbers, in a very rough way, that you may want to know as far as RaaS pricing is concerned.
Be forewarned it is dependent on the territories that you’re looking at; it is dependent on the corridors; it is dependent on the length of the contract; it is dependent on many many other factors as to who is willing to provide you with regulatory coverage who is willing to come as a sponsoring licence holder to say listen I want it I want to work with this guy. But typically I’ve given you the price. Between 5000 to 10000 in one time fees; between 15 hundred to 3500 monthly fees with 2500 being the average; between 35-45 basis points on the low side, 80 90 basis points on the high side; 50 to 60 basis points on an average and twenty thousand dollars for putting it together.
That is the price for RaaS. If you have any more questions or comments feel free to ask below. I have also linked to the previous video I made for “What is remittance as a service” in case you don’t know what I’m talking about, that is also in the description below. Till next time have a good one, speak later.