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

With the rise of digital financial services, the cost of sending money across borders has come under scrutiny. For those sending remittances to India, many are curious as to why certain services offer lower fees compared to traditional banks. But is a lower cost necessarily a risk? In this article, we will dive deep into the factors that determine remittance fees, address concerns about safety, and highlight how PandaRemit stands out with its regulatory and security frameworks.

Compliance: The Safety Shield of Remittance Services

One of the most important aspects of choosing a remittance service is understanding its regulatory framework. In Singapore, remittance providers like PandaRemit are governed by the Payment Services Act (PSA), overseen by the Monetary Authority of Singapore (MAS). This law regulates payment services such as electronic money, domestic and cross-border money transfers, and more.

For consumers, the PSA acts as a safety shield, ensuring that the services they use comply with strict financial regulations. This regulatory oversight means that services like PandaRemit are required to meet high standards for transparency, consumer protection, and operational reliability.

Asset Safety: Ensuring Your Funds Are Secure

When sending money internationally, one of the biggest concerns for users is ensuring that their funds are kept safe. PandaRemit addresses this concern through its partnership with DBS, a leading financial institution in Singapore. The funds you transfer through PandaRemit are held in segregated client accounts at DBS, ensuring that your money is kept separate from the company’s operating funds.

By using segregated client accounts, PandaRemit offers an added layer of security, ensuring that even in the unlikely event of financial instability, your funds are fully protected and can be accessed without delay.

Comparison: PandaRemit vs. Remitly

When comparing PandaRemit to competitors such as Remitly, it’s important to consider both cost and reliability. While both services offer competitive fees, PandaRemit takes a more thorough approach to ensure that its operations are underpinned by a robust and reliable network.

PandaRemit is integrated with trusted payment networks like UnionPay, Alipay, and Visa Direct, which allows for direct settlements to recipients. This means that funds are delivered quickly, securely, and directly to the recipient’s bank account or e-wallet without unnecessary intermediaries, a key advantage over other services like Remitly.

Addressing the Elephant in the Room: Is It Risky?

One common concern among users is whether choosing a cheaper remittance service like PandaRemit exposes them to greater risk. The fear that low fees might mean less security or reliability is a natural one. However, PandaRemit’s compliance and security measures make it a trustworthy option.

PandaRemit is fully licensed by the Monetary Authority of Singapore (MAS)PCI DSS certified, meeting the highest global standards for financial payment security.

Additionally, PandaRemit’s business processes are legally endorsed by King & Wood Mallesons, a top-tier law firm. This external auditing and legal validation ensure that PandaRemit is not only secure but also transparent and accountable to its users.

Conclusion: Confidence in Your Remittance Choice

When sending remittances to India, it’s important to balance cost with security. While some services might offer lower fees, the regulatory framework and asset protection mechanisms in place are critical to ensuring that your funds are safe. PandaRemit’s compliance with MAS regulations, its integration with secure payment networks, and its use of segregated client accounts at DBS all contribute to making it a reliable, safe, and efficient choice for remittance services.