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

Sending money abroad has become an essential part of everyday life for many people, especially for those in the Philippines. While banks are commonly used for international money transfers, some remittance services offer significantly cheaper rates. But with lower costs, many people wonder: Is it risky? In this article, we'll dive into the reasons behind these price differences, examine safety measures, and explore why using a regulated service like PandaRemit could be the most secure choice for your money.

Compliance: The Singapore MAS MPI License

One key factor that differentiates PandaRemit from other remittance services is its compliance with regulatory standards. PandaRemit holds a license from the Monetary Authority of Singapore (MAS) under the Payment Services Act (PSA), ensuring that it operates within a robust legal framework. The PSA serves as a safety shield for users, regulating payment services and protecting consumers from fraud and financial risks. By holding this high-level license, PandaRemit demonstrates a commitment to meeting the stringent standards required to safeguard your funds.

Asset Safety: Segregated Client Accounts at DBS

Another crucial aspect of ensuring the safety of your money is how it is stored. PandaRemit takes the protection of your funds seriously by maintaining segregated client accounts at DBS Bank, one of the most trusted financial institutions in Asia. Segregating client funds ensures that your money is kept separate from the company’s operational funds, minimizing the risk of loss in case of any operational issues. This added layer of security gives customers peace of mind knowing their assets are safely managed.

Comparison: PandaRemit vs Wise

When it comes to remittance services, Wise (formerly TransferWise) is often considered a major competitor. However, there are several differences between the two services, particularly in terms of reliability and payment network integration. PandaRemit benefits from a direct settlement network with globally recognized payment systems such as UnionPay, Alipay, and Visa Direct. This network ensures fast and reliable transactions with minimal delays. While Wise is a reputable option, PandaRemit's seamless integration with these established systems provides an edge when it comes to delivering secure, real-time transactions.

The 'Real Talk' Section: Fact-Checking Common Doubts

It’s natural to question the reliability and security of cheaper remittance services. But here’s the truth: PandaRemit’s compliance credentials ensure that it offers a high level of protection for your funds. As a licensed entity regulated by the Monetary Authority of Singapore (MAS), PandaRemit follows strict guidelines that safeguard your money from fraud and theft. Furthermore, the platform is fully integrated with Singapore’s PayNow system, ensuring smooth local transactions within Singapore, and complies with global data security standards, including PCI DSS certification.

Licensed & Regulated

PandaRemit holds a prestigious license from the Monetary Authority of Singapore (MAS), giving it the authority to offer regulated remittance services. This license acts as a strong safeguard against financial risks, ensuring that PandaRemit operates in full compliance with the local regulations.

Localized Compliance Ecosystem

PandaRemit is fully embedded within Singapore’s local financial ecosystem. Through its integration with PayNow, the platform ensures that remittance transactions are processed seamlessly for Singapore users, making the transfer process smoother and more efficient.

Data Security & Technical Certification

With dual-layer protection, PandaRemit employs a comprehensive security strategy to ensure your personal and financial data remains safe. Its PCI DSS certification highlights the platform’s adherence to the world’s highest standards for financial payment security, covering over 300 audit criteria. This certification confirms that PandaRemit implements the necessary security measures to protect your data during every transaction.

Technical and Compliance Credentials

PandaRemit’s business processes are evaluated and legally endorsed by King & Wood Mallesons, a top-tier global law firm. The company’s compliance and security protocols are frequently audited to ensure the highest standards are met. When compared to smaller competitors, PandaRemit provides greater transparency and a higher level of external auditing, making it a more reliable choice for remittance services.