Remittance as a Service (RaaS)

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.

1. What is Money-Transfer-as-a-Service (MTaaS)
2. What is Remittance-as-a-Service (RaaS)?
3. Backstory on Remittance-as-a-Service
4. Remittance as a Service (RaaS) Cheat Sheet
5. Remittance as a Service (RaaS) Solution
6. Comparison Table (Starter, Pro & Enterprise)
7. The Process
8. API, Mobile or Web
9. Pre-Requisites
10. Crypto or Not
11. Sample Correspondent Agreements
12. Understanding Custody of Funds
13. How to submit a detailed Flow of Funds (FoF)?
14. Starter Package
15. Pro Package
16. Enterprise Package
17. RaaS Pricing Options – What is your monthly total?
18. RaaS Total One-time & Monthly Cost Calculator
19. Frequently Asked Questions for Remittance-as-a-Service
20. Sample Payout Corridor & Rates
21. Sample Calculations Where $250 is being remitted
22. Sample Calculations Where $500 is being remitted
23. Sample Calculations Where $1,000 is being remitted
24. Due Diligence (DD) Documents Requirement
25. Revenue Modeling Sheet for Remittances
26. Payment Schedule for Remittance-as-a-Service
27. Draft Referral Agreement
28. Shall We Test Your Knowledge On Money Transfer?
29. Detailed Pictorial FAQ (Frequently Asked Questions) About Our Remittance-In-A-Box Solution (Outdated)
30. Your own Money Transmitter Licenses versus Remittance-as-a-Service
31. Remittance-as-a-Service (RaaS) Forms
32. Get Started with 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:

1. Choose a package: Client Interest Form: RaaS (Remittance-as-a-Service) Pricing Packages Form
2. Fill out the List of US must-have states and payout countries
3. Fill out the License Regulatory Coverage Questionnaire

COMMENTS/NOTE

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REFERENCES/CITATIONS

• Remittance as a Service (RaaS)
• How to start a money transfer business

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This page was last updated on January 13, 2022.