If you want to start a money transfer service, that is geared for person-to-person transfers, across borders (cross-border payments) then remittance-as-a-service (or RaaS) might be the best starting point for you.
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, and expensive to operate in).
CLASSIFICATION
All-in-One, service offering that is subscription-based.
DEFINITION
The following is the brief business definition of the service:
Remittance-as-a-Service is an all-encompassing solution that allows ISOs (Independent Sales Organizations) and Incumbent MTOs (Money Transfer Operators) alike to offer a managed services to their clients under a white-label offering where all aspects of the regulatory aspects, such as licenses and compliance are covered by the PLH (Principal License Holder) that is sponsoring you for the program.
Disclaimer: Not a legal definition.
WHO IS THIS FOR?
Startups who would like to start a money transfer (remittance) business, but do not have the necessary bandwidth (capital & time) to get licenses, and would like to be able to get a fully white-label solution, under their own brand name.
Also for incumbents in the same territory or from outside the United States, who would like access to the US money transmitter licensing market, but do not have the capital and time to invest in obtaining the additional money transmitter licenses in all the other states.
PROGRAM DETAILS
Please go through the following program pages that highlight more information on the given subject.
- What is Money-Transfer-as-a-Service (MTaaS)
- What is Remittance-as-a-Service (RaaS)?
- Backstory on Remittance-as-a-Service
- Remittance as a Service (RaaS) Cheat Sheet
- Remittance as a Service (RaaS) Solution
- Comparison Table (Starter, Pro & Enterprise)
- The Process
- API, Mobile or Web
- Pre-Requisites
- Crypto or Not
- Sample Correspondent Agreements
- Understanding Custody of Funds
- How to submit a detailed Flow of Funds (FoF)?
- Starter Package
- Pro Package
- Enterprise Package
- RaaS Pricing Options – What is your monthly total?
- RaaS Total One-time & Monthly Cost Calculator
- Frequently Asked Questions for Remittance-as-a-Service
- Sample Payout Corridor & Rates
- Sample Calculations Where $250 is being remitted
- Sample Calculations Where $500 is being remitted
- Sample Calculations Where $1,000 is being remitted
- Due Diligence (DD) Documents Requirement
- Revenue Modeling Sheet for Remittances
- Payment Schedule for Remittance-as-a-Service
- Draft Referral Agreement
- Shall We Test Your Knowledge On Money Transfer?
- Detailed Pictorial FAQ (Frequently Asked Questions) About Our Remittance-In-A-Box Solution (Outdated)
- Your own Money Transmitter Licenses versus Remittance-as-a-Service
- Remittance-as-a-Service (RaaS) Forms
- Get Started with RaaS
Ready to sign-up for RaaS?
RESTRICTIONS
Without a license yourself, you would not be able to take custody of funds or insert yourself into the flow of funds. Processing by your preferred payment service provider would not be entertained, unless you, yourself are not a licensed PayFac (Payment Facilitator).
GEOGRAPHIC REGION
Available only in the United States for those who would be classified as an MSB (Money Services Business) and would be required by the state regulator to obtain MTLs (Money Transmitter Licenses) in order to conduct business in the state. Additional countries would be added. Please check with us.
PREREQUISITES
Having a reasonable understanding of the money transfer market. The program assumed you know the nomenclature, business vernacular, and the intricacies of the business. You can test your general knowledge about the money transfer/remittance industry by taking this Quiz.
YOUTUBE
Playlist on YouTube on How to Setup a Money Transfer Business (164 free videos to help you learn).
DOWNLOADS/MEDIA
- Revenue Modeling Google Sheet for Remittances – Simplex Version https://bit.ly/revenuemodelsimplex
- Revenue Modeling Google Sheet for Remittances – Complex Version https://bit.ly/revenuemodelcomplex
Simply make a copy of these sheets and you can then work on them.
PRICING CODE
See 7001 thru 7036 on this page.
SEE ALSO
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FORMS
The following forms are applicable to RaaS:
- Choose a package: Client Interest Form: RaaS (Remittance-as-a-Service) Pricing Packages Form
- Fill out the List of US must-have states and payout countries
- Fill out the License Regulatory Coverage Questionnaire
COMMENTS/NOTE
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REFERENCES/CITATIONS
DOWNLOAD THIS PAGE AS A PDF
Click here to download.
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This page was last updated on January 13, 2022.