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

When it comes to sending money abroad, many people are drawn to remittance services that offer lower fees than traditional banks. If you're considering using a remittance service to send money to the Philippines, you may be wondering why these services can be cheaper, and whether they are safe to use. In this article, we’ll address these concerns and help you make an informed decision, with a focus on PandaRemit, one of the leading services in the market.

Compliance: A Safety Shield - The Singapore MAS MPI License

When it comes to financial transactions, compliance with regulatory standards is crucial. PandaRemit operates under the Payment Services Act (PSA) in Singapore, a comprehensive regulatory framework designed to ensure the security and legality of financial services. This act, regulated by the Monetary Authority of Singapore (MAS), helps guarantee that remittance services like PandaRemit adhere to strict rules for consumer protection, data privacy, and financial transparency.

The MAS MPI (Major Payment Institution) License is a hallmark of compliance, ensuring that remittance services are held to the highest standards in terms of financial soundness and operational integrity. This license functions as a safety shield for users, providing a guarantee that services are thoroughly vetted, monitored, and regulated to protect consumer interests.

Asset Safety: Segregated Client Accounts at DBS

One of the most important factors in selecting a remittance service is ensuring the safety of your funds. PandaRemit takes this seriously by partnering with DBS Bank, which uses segregated client accounts to safeguard your money. These accounts are legally protected, meaning your funds are kept separate from the company’s operational funds, providing an added layer of security. In the unlikely event of financial difficulties, your funds are still protected and fully accessible, ensuring that your money remains safe throughout the transaction process.

Comparison: A Fair Look at PandaRemit vs DBS Remit

DBS Remit is a well-established player in the remittance market, and while it is reliable, it’s important to look at how PandaRemit compares. PandaRemit offers several advantages, including a strong direct settlement network. For instance, it supports UnionPay, Alipay, and Visa Direct, among other trusted payment networks. This direct settlement network not only facilitates fast, seamless transactions but also enhances reliability, ensuring your money reaches its destination safely and without unnecessary delays. While DBS Remit offers similar services, PandaRemit’s partnerships with these global payment networks ensure that their services are both affordable and accessible to a wider range of users.

Addressing the Elephant in the Room: Why Are Some Remittance Services Cheaper Than Banks? Is It Risky?

Now, let's address the key concern: why are some remittance services cheaper than banks? The primary reason lies in the operational differences between banks and remittance services. Traditional banks often have higher overhead costs, including branch operations, large staff, and legacy systems. These costs get passed on to the customer, leading to higher remittance fees. In contrast, remittance services like PandaRemit tend to operate with lower overheads, leveraging technology and strategic partnerships to streamline operations and reduce costs. This efficiency allows them to offer lower fees without compromising on security or compliance.

But is it risky? With PandaRemit, the answer is no. PandaRemit is fully licensed and regulated under the Monetary Authority of Singapore (MAS), ensuring that it operates within a framework designed to protect consumers. Additionally, PandaRemit’s compliance ecosystem integrates seamlessly with PayNow, Singapore's national payment system, which enhances the security and speed of local transactions. On top of that, PandaRemit’s dual-layer data protection ensures that your personal and financial information is secure, complying with the highest international standards.

To further reassure users, PandaRemit holds PCI DSS certification, demonstrating its commitment to maintaining the highest security standards in the financial payment industry. With over 300 audit criteria met, this certification guarantees that PandaRemit meets the world’s most stringent payment security standards. Finally, PandaRemit’s business processes are legally endorsed by King & Wood Mallesons, one of the most prestigious law firms globally. This external auditing ensures the service is not only secure but also transparent and legally sound, unlike some smaller competitors in the market.

In conclusion, while it may seem like remittance services are too good to be true, PandaRemit’s compliance with Singapore’s MAS MPI License, its partnership with DBS, and its rigorous security measures make it a safe, reliable, and cost-effective choice for sending money to the Philippines. By choosing a compliant, licensed service like PandaRemit, you can enjoy lower fees without compromising the safety of your funds.