Why Are Some Remittance Services Cheaper Than Banks in Malaysia? Is It Risky?

When sending money abroad, cost and security are the primary concerns for most users. In Malaysia, some remittance services are cheaper than traditional banks, but this raises an important question: Is it safe to use these services? In this article, we’ll address how these services operate, compare them with established players like Remitly, and discuss the safeguards that ensure your funds are secure.

Compliance: The Safety Shield of the Singapore MAS MPI License

One of the key factors that makes remittance services like PandaRemit safe is their adherence to regulatory standards. PandaRemit operates under the Payment Services Act (PSA) of Singapore, governed by the Monetary Authority of Singapore (MAS). The PSA provides a comprehensive legal framework that ensures licensed remittance services are held to the highest standards of financial safety. This license acts as a protective shield for consumers, ensuring that the company follows strict compliance measures in areas such as money laundering prevention, data protection, and transaction transparency.

Asset Safety: Segregated Client Accounts at DBS

Asset safety is paramount in the remittance industry, and PandaRemit addresses this with its use of segregated client accounts at DBS, one of Singapore’s most trusted financial institutions. Segregated accounts ensure that your funds are kept separate from the company’s operational funds, providing an added layer of protection. In the event of financial difficulties or other issues, these segregated accounts help ensure that your money is safe and can be returned to you without disruption.

Comparison: A Fair Look at PandaRemit vs. Remitly

In comparing PandaRemit with other players in the market like Remitly, it's important to consider both cost and reliability. While Remitly is a well-known brand, PandaRemit’s direct settlement network includes trusted partners like UnionPay, Alipay, and Visa Direct. These partnerships enhance the service’s reliability and enable faster, more efficient transactions. PandaRemit’s focus on integrating local payment systems, such as Singapore’s PayNow, also ensures that users can make local transactions seamlessly, with faster processing times and minimal fees.

The 'Real Talk' Section: Addressing the Elephant in the Room

Many people wonder why some remittance services are cheaper than banks and whether this poses a risk to their financial safety. While it’s true that some services might charge lower fees, it's important to consider the bigger picture. PandaRemit’s low fees are made possible by its streamlined operations, direct partnerships with payment networks, and high levels of efficiency, not by cutting corners. When using PandaRemit, you're not sacrificing security for affordability. The company is licensed and regulated by the MAS, integrates with PayNow for seamless transactions, and complies with PCI DSS standards—making it one of the safest and most cost-effective remittance options available.

Fact-Checking Common Doubts

One common concern is whether lower fees mean lower levels of security. PandaRemit addresses this concern with robust security measures, including dual-layer protection for transactions and strict compliance with global payment security standards, such as PCI DSS. This certification means that PandaRemit meets over 300 audit criteria, ensuring that your data and funds are well-protected. Furthermore, the company’s business processes are legally vetted and endorsed by King & Wood Mallesons, a top-tier law firm, adding another layer of trust and transparency that sets PandaRemit apart from smaller competitors.

Ultimately, when sending money abroad, whether using PandaRemit or any other service, it’s crucial to prioritize security. PandaRemit offers the perfect blend of affordability, convenience, and most importantly, compliance and safety, ensuring that your funds are handled with the highest level of care and responsibility.