What is a money transfer operator? How remittance companies work
By SendPay Business · · 2 min read
A money transfer operator (MTO) is a company that sends money from one person to another, usually across borders, without either of them needing to use the same bank. Many serve families sending money home to relatives abroad.
How it works
- The sender pays the MTO in cash, by card or by bank transfer.
- The MTO converts the money into the receiving currency.
- Its partner in the other country pays out to a bank account, a wallet or for cash collection.
- Behind the scenes, the MTO settles with its partners in bulk rather than moving each payment separately.
How MTOs make money
Most charge a transfer fee, add a margin to the exchange rate, or both. Comparing the amount the recipient actually gets is the simplest way to compare providers.
What it takes to start one
Money transfer is regulated almost everywhere, so an MTO needs a licence or registration, or to work under a licensed partner, plus identity and anti-money laundering checks, and payout partners in the countries it serves.
Where SendPay fits
SendPay Transfer platforms let you launch a money transfer app under your own brand, powered by licensed partners. It is free to design and preview, and you only pay when you publish. SendPay tells you in writing which licences apply to your platform before you pay.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What could a money transfer business earn?
Work out monthly profit from transfer fees and an exchange rate margin, after your costs.
Money transfer business calculator →What is a remittance?
Money sent home to family abroad. The guide explains it.
What is a remittance? →How much does a transfer really cost?
The free calculator adds the fee and rate markup.
Money transfer cost calculator →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.