Sure. TransferWise is not the only provider in town for great transfers. If that were the case, everybody else would had packed up and gone home. That is clearly not the case. It all depends on the corridor(s) in question and what type of money transfer service is being offered. TransferWise has its fair share […]
Depending on where in the world you may be, you would most likely be classified as a money transfer operator or money services business. This means, you are now dealing with money in a way, that most likely requires you to be registered with state/provincial authorities as well as federal authorities, in addition to being […]
It depends: It is either pre-funded, i.e. arrangements are made to have enough money on the other side, so that when a payment is made, the money is taken out of the available balance and paid for. The other arrangement is credit (which has a counter party risk factor higher than the pre-funded one). In both cases, […]
No. Both Western Union and MoneyGram are two independent companies. They do not have a single controlling company on top of them.
It doesn’t! (unless of-course you are operating a 100% cash only money transfer network – an example of which I do not know of). To understand how cash is transferred between countries, read this answer: Faisal Khan’s answer to Where do currency exchanges get their currency? To understand how money transfer works between countries, including remittances, […]
Typically no. RTGS is usually used by banks in a country to go large settlements amongst themselves. It is pretty much a localized system. In many countries the RTGS is run by the central bank or by a semi-autonomous body. The clearing of funds with the RTGS are all based on local currency.
What’s the safest and securest way to transfer money from the Philippines to the US, by wire transfer, online, or through bank, etc.?
Bank transfers are usually the safest. In your reference you cited, wire-transfer, online or through bank. All these are essentially the same. The only difference is, if the service is being provided by the bank itself (like BDO, etc.) or by an non-banking financial institution (like Xoom or TransferMate, etc.).
What is the average monthly revenue that an independent sales organization (ISO) is expected to bring in for a small and medium-sized principal license holder? What are the average commission rates earned by an ISO? Is it a flat fee?
This depends on the corridor and the margins on the corridor. Typically, a PLH (Principal License Holder) will be raking in about 20–25 basis points, and would a minimum. So for every $1 Million processed, the PLH takes about $ 2,000 in income. Anything above and beyond is the pricing set by the ISO (typically […]
What do you think about an Uber model for remittance? An app where money senders in opposite direction get matched and do local money exchange. The exchange is insured against default by digital assets on the blockchain.
What you are describing is some I wrote a paper on way back, called the Uberization of Money Transfer. (Read here: The Uberization of Money Transfer – Faisal Khan). Let’s start with the basic notion. Yes, it seems logical that independent PLHs (Principal License Holders) would benefit from a grand alliance of sorts. Think about how Oyo Hotels, AirBnB, […]
In all the developed-to-developing countries route. So all your Top 25–30 countries that receive remittances, also have very well established hawala/hundi routes. This is a natural by-product. It exists because invariably, there will be a grey channel demand. But they also exist for a reason most people tend to forget. Capital outflow restrictions in the […]