How to Start a Payment Processing Company in 2022 – Ikajo International

Are you considering joining the payment marketplace, but not surely what ’ s the best way to do it ? We hope this article would serve as a capital start compass point for you, sorting things out about the payment process industry and occupation models available .

Why start a payment work commercial enterprise ?

payment march is one of those rare industries that managed to gain an extra boost from the COVID-19 pandemic. While being already on the rise due to the gradual switch to a cashless economy in many countries, on-line payments got fueled by lockdown restrictions cosmopolitan. The necessitate to stay safe at base forced consumers to make purchases on-line alternatively of going to physical stores. In its turn, it resulted in the payment march business getting increasingly golden .
In 2020-2021, while some industries struggled to make ends meet, the payment processing market hit the headlines with major deals. To name a few, Worldline ’ s $8.6 billion acquisition of Ingenico, which ended up creating the largest acquirer and requital central processing unit in Europe. Or $5.3 billion Nexi ’ randomness skill of SIA, with the first one having an ambitious finish of becoming Europe ’ sulfur biggest payment supplier. And of course, we have to mention Stripe, a company that closed the latest fund round this March, which values it at a stagger $95 billion. Having a $ 36 billion valuation in spring 2020, the company grew about threefold in a class !
Though becoming more and more competitive, the ball-shaped digital requital grocery store is still energetic, attracting fresh players to join it. It is expected to grow at a CAGR of 19.4% from 2021 to 2028. If you ’ re looking to join this growing diligence, proceed to the following separate !

What are the options ?

There are three ways to enter the requital processing market and start your own business .
The first one is developing your own payment software or product. It ’ s a identical brave path, requiring lots of time, money, and resources .
Another choice is choosing a white label model, intend you buy a ready-made payment software from a seller and offer it to merchants under your stigmatize and on your conditions .
And there ’ s one more way to go for those who ’ d like to make money without development – the affiliate model. You ’ ll sign a abridge with a PSP to bring them newly clients for a honor you agreed upon. It ’ s an excellent choice for networking pros, but today we ’ ll focus on the first two that allow getting the sense of the payment business better .

Going the hard way : build requital software from abrasion

As with any other business, before taking any further action, it ’ second essential to research the market and craft a business plan, figuring out what your functionality and services will be, how much you ’ ll charge, and how you ’ re going to attract clients. once you ’ ra fix, it ’ south time to act :

  • Register your business and trademark according to your jurisdiction requirements .
  • Partner with a bank and get an account for your action. That ’ s where your business plan will come in handy !
  • Acquire a domain name and the equipment needed. You can buy it, rent it, or lease it, depending on your funds .
  • Hire aDevelopment team who ’ ll build the requital software .
  • Design your payment solution and develop it. It seems like a bantam little step in the list, but in fact, it will account for the largest parcel of your resources. Your success largely depends on its quality !
  • You ’ ll need a decentserver infrastructure and security appliance as you proceed with the development .
  • As a payment business dealing with card transactions march, you ’ re topic to

    PCI DSS certification .

  • Partner and integrate with banks, payment providers, gateways, systems, processors, and other solutions to make your offering competitive .

All in all, you ’ ll need more than 2 years to complete all the steps and launch the MVP ( minimum viable product ). next, you ’ ll have to deal with maintenance, support, and upgrades, arsenic well as passing even security and fiscal audited account. To promote your product and make it sustainable, you ’ ll besides have to hire legal, marketing, sales, and accompaniment specialists .

Taking a shortcut : make with a white label solution

White label payment solution is more than twelve times faster way to start a requital business. That ’ s because you ’ ll have advanced requital software from the depart, without having to spend money, clock time and resources on developing one .
In this scenario, the market research gradation becomes vitally crucial for you because you need to find a robust and trustworthy solution provider to work with. We ’ five hundred be delighted to show you a demonstration of our white pronounce payment work. Seeing how it works and getting answers to all your questions from our specialists will help you make a intelligent decision .
What besides remains on you are business registration and bank account opening steps. But rather of all other steps, all you have to do once you ’ ve settled on the blank label payment solution seller is integrating it and onboarding your merchants .
Keeping the software up to date and stable will be taken manage of by your solution supplier, sparing your resources for business development and attracting new clients .

How much does it cost to start a payment action clientele

It isn ’ metric ton easy to estimate expenses for a self-developed payment solution. It depends on numerous factors, from the features you want your solution to have, to equipment prices, salaries, regulative framework, etc. By rough estimates, it can be from $ 250k to $ 1M or more. This figure includes basic MVP creating steps, such as registration, world, host, design and development, security appliances, license, and certifications .
In the white label model, the solution provider sets the monetary value, and you ’ ll know it in gain by looking at the seller ’ s web site or asking them for a quotation mark. For example, the price for Ikajo ’ s blank label requital gateway starts from 5000 $ .
As for the affiliate model, it won ’ thymine cost you anything except for time and campaign. You ’ ll barely have to find a supplier with a partner course of study and bring them clients to earn a certain percentage. Of course, unlike the inaugural two options, it doesn ’ t make you the owner of a payment company .

Main risks and challenges of a PSP business

Despite industry ’ sulfur attractiveness and profitableness, payment companies besides face certain challenges, such as :

  • Keeping up with the pace of initiation in the industry. To remain competitive, it ’ sulfur important to innovate and expand functionality, offering robust and versatile services .
  • Maintaining security, as it is all-important when it comes to payments .
  • Preventing imposter and understate chargebacks.
  • Complying with regulations. It ’ s specially burdensome for cross-border businesses .

The extent to which these challenges may affect you depends on the payment business exemplary you ’ ll choose. Choose wisely, and don ’ thymine hesitate to contact us for aid .

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Category : Finance

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