Meracord is allowing businesses to leverage its money transmitter platform and state license portfolio, a move to help startups navigate the complex and expensive regulatory environment surrounding transmitting funds.
Meracord can now appoint agents, or companies that can conduct money transmitting activities, on its behalf. The agent company will continue providing their service to customers, while taking advantage of Meracord's compliance infrastructure.
"We recognize the difficulty companies face in this fast-paced world associated with compliant money transmission and emerging technology," says Linda Remsberg, president and CEO of Meracord, in an Aug. 7 press release. "I know firsthand that this is a grueling, expensive and time-consuming process. Now with our ability to appoint agents, companies that work with Meracord will benefit from our expertise and achieve this level of compliance."
The company plans on appointing agents within the financial technology and emerging payments space, including companies that provide stored-value products and virtual-currency businesses.
Virtual currency players, especially those that provide services for bitcoin users, have been eyeing this type of shared compliance. Bitcoin businesses are having difficulty complying with the current money transmitter regulations, based on the roadblocks caused by Fincen guidance that classified them as money services businesses.
Banks have unexpectedly closed some Bitcoin businesses' bank accounts because of the risk associated with money services businesses. Partnering with an existing player that focuses of compliance might make banks less anxious about working with virtual-currency handlers.
Meracord currently process payments in all 50 states. Through its application programming interface, Meracord enables companies to create reserve accounts and execute payments and disbursements.