How to start a Payment Processing Company?

These days I'm looking for information on how to start a payment processing company and how much startup capital it'll require.

Since Paypal is not in my country and many people in my country are involved in ecommerce and info businesses but they face difficulties in getting payments for their sales, so I thought why not start something useful for them and for myself.

Although some use 2CO and Clickbank but majority don't use these services.

So I wanted to start a payment processing company on the model of 2CO.

Kindly share your expert opinions on my idea and how to best execute it.

Fing and agree with some acquirer VISA +MC. and acquiers for AMEX, DInner,..... if you need .
And write me please in case some acuirer will want to work with busher))

Hi! I working in payment processing company and I recommend you to start with some white-label solutions.

Good solution developed from zero whith ~100 connectors and all supporting features (anti fraud, chargeback system etc.) will cost you about $500K-$1M and ~ 1 year.

White label software will cost you 5$k-20k per month + licences + stuff + all operations expenses.

And I don't recommend to start it if your budget lesser than ~ $100k otherwise there will be a high risk of bankruptcy before you find first profitable clients.

Also you can get some free consultation with company's who working with selling payment software for other PSP's like https://akurateco.com/ or https://ikajo.com/. They have a lot of case's for PSP startups and can give you better calculation for starting budget directly for your region.

WinSerfer said:

Hi! I working in payment processing company and I recommend you to start with some white-label solutions.

Good solution developed from zero whith ~100 connectors and all supporting features (anti fraud, chargeback system etc.) will cost you about $500K-$1M and ~ 1 year.

White label software will cost you 5$k-20k per month + licences + stuff + all operations expenses.

And I don't recommend to start it if your budget lesser than ~ $100k otherwise there will be a high risk of bankruptcy before you find first profitable clients.

Also you can get some free consultation with company's who working with selling payment software for other PSP's like https://akurateco.com/ or https://ikajo.com/. They have a lot of case's for PSP startups and can give you better calculation for starting budget directly for your region.

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Where is a concept of white-label in accepting payments? If someone accepts payments for you, then this is their product. And you are his salesman. If someone passes an appointment to you, then this is your product. Where is the white-label here?

You need the advice of professionals, not regular people like us. Such companies require a shit ton of paperwork and legal formalities. Better look for answers offline.

lwza said:

Where is a concept of white-label in accepting payments? If someone accepts payments for you, then this is their product. And you are his salesman. If someone passes an appointment to you, then this is your product. Where is the white-label here?

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When you get a white label payment solution, you get the technologies which you gonna host on your own datatcenters. They won't receive payment on your behalf.

Depends on your country!

Let's have a look at Europe, there you first of all need to have a business plan, to check which licence can be right for you. There is an EMI Licence which gives you the allowance to create something like (Transfer)Wise, i believe Revolut started also with this licence. The initial capital requirements are 350k. There is another PI licence type, which has less initial capital requirements but also less "features". In Europe you don't need to create the next Service for this, also some Solution Provider in Germany, UK and Lithuania can help you to use their licence (Umbrella).

Canada & US will also have something like this, I'm sure.

Let's have a look at LATAM, there you will find people that not even have a Bank Account but I don't know why and was never that interested in this markets (yet).

The only important questions are this:

What do you want to solve? What is wrong with the actual situation in your country? How a client can give you money and a merchant will receive this money?

If you country anyway has a weak currency, why don't you open a local crypto exchange and exchange their currency against ADA and show both merchants and clients how to use this and also keep the coins safe?

Whatever you want to start, you will need enough capital or people that want to give you capital. Your solution will fight 2 battles: 1) merchants trusting you and using your solution. 2) clients trusting you and can use your service in their daily lives.

Setox said:

When you get a white label payment solution, you get the technologies which you gonna host on your own datatcenters. They won't receive payment on your behalf.

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Technologies of what ?
Scripting /soft for acceptance will prowide your acquirer.
Fraud tools + risk management accepts several online servisies for 500-1000 usd/month .
Datacenter ...... I don't see any big problem to lease it.
So again .... what is white label on payment acceptance business? Moreover

"will cost you about $500K-$1M and ~ 1 year. "

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The problem is NOT TECHNICAL

The problem is REGULATORY in nature

Most people looking into fintech know enough not to reinvent the wheel: they can just mod existing platforms or even go the whitelabel route...

The big issue is LOCAL BANK REGULATIONS

Sadly, if you live in a MONOPOLIZED or OLIGARCH-ruled country, you're shit out of luck

No matter how AWESOME your tech is, they'd still stick to the FUCKED UP STATUS QUO

More money for them and more money for their government handlers

This, in a nutshell, is why so many countries are POOR

It's the use of the government to PLUNDER the economy

lwza said:

Where is a concept of white-label in accepting payments? If someone accepts payments for you, then this is their product. And you are his salesman. If someone passes an appointment to you, then this is your product. Where is the white-label here?

Click to expand...

White label gives you autonomous software branded for business. So on this type of collaboration you will pay, based on the prices, some monthly fees for using software, being able to get a fast connection with many providers, set routing, cascading rules between the MIDs, set priorities, manage all flows.

So the main difference with a salesman is that you can change the company that offers white-label payment software, and save all your customers.

lwza said:

Technologies of what ?
Scripting /soft for acceptance will prowide your acquirer.
Fraud tools + risk management accepts several online servisies for 500-1000 usd/month .
Datacenter ...... I don't see any big problem to lease it.
So again .... what is white label on payment acceptance business? Moreover

Click to expand...

My comment wasn't about wether a whitelabel solution is cost effective or not ! but about its existence, i'm confused here, you've been asking wether a white label solution exist or not for payment processing, so that's why i intervened, well it does ! you answered your own question. Cheers

when you create one let me know, im interested.

when you create one let me know, I'm interested.

blackbeans said:

The problem is NOT TECHNICAL

The problem is REGULATORY in nature

The big issue is LOCAL BANK REGULATIONS

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Yes I think the main problem ic regulatory. Not local bank but cards companies (VSA, MC) generally. If you want to be acquirer.
Id not, you can be an agent of some processing It does not cost so much as written above. But it's good idea.
But this is not the main question. I asked what exactly does white lavel mean for processing in detail.
Many have written a bunch of clever words. And everything is off topic.

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