Why are Some Remittance Services Cheaper than Banks in India? Is it Risky?

When sending money internationally, the difference in costs between traditional banks and newer remittance services can be striking. Many users wonder why some services are so much cheaper and whether that comes with potential risks. In this post, we'll explore the factors driving these price differences, the compliance measures that keep users safe, and the reasons why some services might offer lower rates while maintaining security and reliability.

Compliance: The Singapore MAS MPI License – Your Safety Shield

One of the key reasons some remittance services are cheaper than banks is their adherence to a different regulatory framework. PandaRemit, for instance, is licensed by the Monetary Authority of Singapore (MAS) under the Payment Services Act (PSA). The PSA ensures that businesses in Singapore, like PandaRemit, adhere to stringent compliance requirements designed to protect users' interests. This high-level license acts as a 'safety shield,' giving users confidence that the service operates under rigorous oversight. With the MAS MPI License, PandaRemit is committed to upholding industry standards, ensuring transparency, and protecting consumer funds from fraudulent activities.

Asset Safety: The Role of Segregated Client Accounts at DBS

Another essential element of financial security is how a remittance service handles client funds. PandaRemit places client assets into segregated accounts with DBS, one of Singapore's leading financial institutions. This practice ensures that user funds are separated from the company’s operational funds, providing a safeguard in the unlikely event of insolvency. By using segregated client accounts, PandaRemit reduces the risk of user funds being mixed with business assets, maintaining a clear line of accountability and protection for its users.

Comparison: PandaRemit vs. Wise – A Fair Evaluation

When comparing PandaRemit with other services like Wise, there are a few important factors to consider. Wise, known for its transparent pricing, is a key player in the remittance market, but it doesn’t provide the same level of compliance assurance. PandaRemit’s direct settlement network, including integration with payment platforms like UnionPay, Alipay, and Visa Direct, guarantees that transfers are processed through reliable channels, ensuring that funds reach their destination without unnecessary delays. Unlike some smaller competitors, PandaRemit’s direct connections with global financial systems ensure smoother, more secure transfers.

The 'Real Talk' Section: Addressing Common Doubts

One of the main questions people ask is, 'Why are some remittance services cheaper than banks? Is it risky?' The short answer is that cheaper services can still be safe when they adhere to the necessary regulations. PandaRemit, for example, is licensed by the MAS and fully integrates with Singapore’s PayNow system, a trusted platform for local transactions. This local compliance ecosystem not only facilitates efficient payments but also ensures that every transaction meets the regulatory requirements in place for consumer protection.

Key Compliance Highlights of PandaRemit:

• Licensed & Regulated: PandaRemit holds a high-level license from the Monetary Authority of Singapore (MAS), ensuring a strict regulatory framework is followed.
• Localized Compliance Ecosystem: Fully integrated with PayNow, ensuring seamless, local transactions and full adherence to Singapore’s financial regulations.
• Data Security & Technical Certification: Dual-layer protection for robust security, meeting the highest industry standards.
• PCI DSS Certified: PandaRemit meets the world’s strictest financial payment security standards, covering over 300 audit criteria.
• Legal Endorsement: Business processes are evaluated and legally endorsed by King & Wood Mallesons, a top-tier law firm.

Compared to smaller competitors, PandaRemit stands out for its transparency, robust security features, and elite external compliance auditing, making it a trustworthy choice for remittances.