Obopay, a leading provider of mobile and instant payment solutions for market-leading brands, today announced the availability of Obopay Licensed Payment Services for Partners.
Obopay Licensed Payment Services for Partners is a new offering that enables partners to leverage Obopay's money transfer licenses throughout the U.S. and its expertise in compliance to accelerate bringing their own differentiated payment solutions to market.
With Obopay Licensed Payment Services for Partners, Obopay extends agency agreements to its partners and ensures compliance with applicable state and federal regulations. Partners can also take advantage of Obopay's connections to a broad range of payment networks, as well as its risk management, compliance and settlement capabilities that enable companies to deliver additional unique services under their own brands.
"The Payments market is quite complex and requires expertise in compliance and working with state and federal regulators to ensure proper licensing, oversight and controls," said Chris Martin, EVP of Operations and Chief Compliance Officer, Obopay. "To obtain money transfer licenses and maintain them in good standing takes a large investment in time, money and specialized people. By working with Obopay, our partners significantly reduce their time to market and are assured of meeting all applicable regulatory requirements."
Money transfer licenses are regulated at the state level, and are required in the U.S. for companies that are not financial institutions themselves yet seek to move money between people or hold value on their behalf. Money transfer licenses also allow companies to process interbank payments across banks and payment networks.
Companies seeking licenses need to apply for them within each state in which they seek to operate. To obtain licenses; however, millions of dollars in surety bonds or reserves on deposit are required by State regulations, and it can take six to eighteen months or more to obtain money transmitter licensing. An ongoing effort from highly specialized personnel and infrastructure is required to keep licensing in good standing. Corporate officers and investors of the company applying for licensing often need to divulge significant amounts of personal data as part of the process. Due to these barriers, only a small number of companies hold money transfer licenses in the U.S.
Obopay is a money services business, maintaining money transfer licenses in all required states throughout the U.S., and is registered with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department. The company makes significant investments to maintain its licensing and has a dedicated team of experts that work with our partners to ensure the compliance of each of their programs.
In addition, Obopay also has active Anti-Money Laundering (AML) and transaction-fraud detection programs. Obopay's security and compliance procedures are regularly audited by industry leading financial services providers, mobile operators, third party auditors and state regulators. Enabling partners to take advantage of Obopay's licensing and compliance expertise through this agency relationship is a natural extension of the company's solutions for partners.
Partners can take advantage of Obopay's Licensed Payment Services for Partners as a standalone offering, or can also leverage Obopay's other complimentary offerings that are based on its licensing and its broad and unique connections to payment networks including Obopay Disbursements, and Obopay's Mobile Money for Banks.
"Obopay has developed a significant asset through its investment in licensing and compliance expertise," adds Martin. "These enable us to serve as a trusted service provider for industry leading partners and deliver them unique and differentiated services accelerating their time to market."