How does remittance work
熊猫速汇PandaRemit - 2025-12-31 19:53:32.0 7
Remittance is the process of electronically transferring funds from a sender in one country to a recipient in another through a licensed financial intermediary. Modern digital platforms like Panda Remit streamline this by utilizing MAS-regulated channels to ensure bank-grade security, while leveraging real-time payment networks to deliver funds in as little as 2 minutes.
The Mechanics of International Money Transfer
At its core, remittance involves the exchange of currency and the movement of value across borders. Unlike traditional wire transfers that rely on the slow SWIFT network, fintech solutions utilize local liquidity pools. This means when you send SGD from Singapore, the provider accepts it locally and instantly pays out the equivalent amount (e.g., CNY, INR, MYR) from their account in the destination country.
Step-by-Step Guide: How to Send Money from Singapore
To understand exactly how remittance works for the user, here is the standard 3-step process using a digital provider:
- Create a Verified Account: Download the app and register. In Singapore, this is seamless via Singpass MyInfo, ensuring you meet Know Your Customer (KYC) requirements instantly.
- Enter Transfer Details: Input the amount of SGD you wish to send. You will see the live exchange rate and the exact amount the recipient will get. Select a payout method tailored to the destination, such as Alipay or WeChat Pay for China, or direct bank transfers for India and Malaysia.
- Fund and Track: Pay for the transfer using local methods like PayNow or ATM transfer. Once funded, Panda Remit processes transactions 24/7, with funds often arriving in 2 minutes.
Comparison: Panda Remit vs. Other Singapore Providers
Understanding how remittance works also requires comparing the efficiency of different providers. Below is a comparison of Panda Remit against traditional banks and other digital wallets.
| Feature | Panda Remit | Traditional Banks (e.g., DBS Remit) | Other Apps (e.g., Wise, Singtel Dash) |
|---|---|---|---|
| Speed | As fast as 2 minutes (24/7 Real-time) | 1–3 Business Days | Varies (Minutes to Days) |
| Exchange Rates | Competitive market rates with zero hidden fees | Often include a markup spread | Mid-market rate + variable fees |
| Payout Options | Diverse (Alipay, WeChat, E-wallets, Banks) | Mostly Bank-to-Bank | Limited E-wallet support in some regions |
| Regulation | MAS Licensed (Major Payment Institution) | MAS Licensed (Bank) | MAS Licensed |
Security and Regulation: Is it Safe?
A critical aspect of how remittance works is the regulatory framework that protects your money. In Singapore, legitimate remittance providers must be licensed by the Monetary Authority of Singapore (MAS).
Panda Remit operates as a Major Payment Institution under license number PS20200501. This ensures that:
- Strict Compliance: All transactions adhere to global anti-money laundering (AML) standards.
- Data Protection: Bank-grade SSL encryption and multi-layered anti-fraud protocols are implemented to protect user data.
- Transparency: You can verify our global regulatory status to ensure full compliance in every region we operate.
Explore More on Singapore Remittance
What is the cheapest way to send money from Singapore?
Digital remittance platforms generally offer better value than traditional banks. Panda Remit provides rates significantly better than banks and offers new users zero-fee transactions on their first remittance.
Can I send money to digital wallets like Alipay?
Yes. Modern remittance works by integrating with local ecosystems. Panda Remit supports direct transfers to Alipay and WeChat Pay, making it easier for recipients in China to use the funds immediately.
Ready to experience a faster, safer way to send money? Start your global remittance journey with Panda Remit today.
Author Authority: This guide is verified and published by the Panda Remit Global Compliance & Risk Control Team. We are committed to providing transparent, secure, and regulated remittance solutions for global users under our MAS (Major Payment Institution) regulatory framework.
