How to get your own payment gateway company with White Label Payment Gateway

 If you want to enter the payment market, but are unaware of what is the best way for you. So, this article would provide you with great help in start your own payment gateway business with a white label payment gateway. And it will sort things out about the payment gateway industry. And business starting ways available.

Why start a payment gateway business?

The payment gateway business is one of the typical industries. That managed to gain an extra boost from the COVID pandemic. In many countries, a cashless economy is on the rise. But because of lockdown restrictions, online payments got fueled worldwide. The requirement of staying safe at home forced customers. Towards online purchases instead of buying from physical stores. And in this way, the payment gateway business increased prosperously.

 

In 2020-2021, some industries struggled too much to make ends meet. And on the other hand, the payment gateway market breaks the headlines with many big deals. Let us name a few, Worldline’s $8.6 billion acquisition of Ingenico. Hit the headlines by creating the largest acquirer and payment gateway in Europe. $5.3 billion Nexi’s acquisition of SIA, For being first in having an ambitious goal of becoming Europe’s largest payment gateway.

 

As it is becoming more and more competitive, the worldwide online payment market is still attracting new people to join it. Expectations are that it will grow at a CAGR of 19.4% from 2021 to 2028. If you are interested in joining this growing business, you should proceed to the next section of this article.

What are the ways to start your own payment gateway business?

There are two ways to start your own payment gateway business and enter the payment gateway market.

• The first way is to develop your payment software. But it is a courageous path that will require a lot of money, time, and resources.

• The second one is to choose a white-label model. And this means you will have to buy ready-made payment software. And resell it to merchants by your brand name and on your terms.

Let us move towards the first way: to develop your software from scratch.

 

In all businesses, before taking any action. It is more important to research the market first and draw a business plan. And mentioning what your functionality and services would be. And how much you will charge and how you want to attract your clients. When you are done with it, the time is to move ahead.

 

First, you will have to register your business. And trademark according to jurisdiction requirements.

 

• Become a partner with a bank and get an account for your activity.

• Then you will have to acquire a domain name and the equipment required. You can purchase it, rent it, lease it, and it depends on your funds.

• Then you will need to hire a development team who will build the payment software.

• Then design your payment solution and develop it. It looks like a small step in the whole process, but actually, it will be an essential part of your resources. Your success depends on its quality.

• Then you will require a decent server infrastructure. And security appliances as you proceed with the development.

• As in this payment business, you want to deal with card transactions processing, and it should be PCI DSS certified.

• So you will need to become a partner and integrate with banks. Gateway systems, payment gateway, processors, and other resources to make your offering competitive.

 

To complete this whole process, you will need more than a year to do all these steps and then launch the MVP (Minimum Viable Product). After that, you will need to deal with maintenance, support, and updates, also passing regular security and financial audits. For promoting your product and making it sustainable. You will also be required to hire marketing, sales, legal support specialists.

Let us discuss the shortcut that is working with a white label payment gateway solution.

 

White label payment gateway solution is more than ten times faster way to start your own payment gateway business. And the reason behind this is you will have advanced payment software from the start. Without spending money, time, and other resources on developing one.

 

In this situation, the process of market research becomes essential for you. Because you will need to find a decent and trustworthy solution provider to start working with. We, Gatewayeast would be delighted to show you the process of our white label payment gateway. Seeing how it works and get answers to all your queries from our specialists will help you to make a well-informed decision.

Now left with business registration and bank account opening steps. But instead of performing all other steps. All you need to do is just when you have settled on the white label payment gateway solution. It is integrating it and directly onboarding your merchants.

 

And keeping your software updated and stable will be taken care of by your service provider. Improving your resources for business development and starting to attract new clients.

How much can it cost in starting a payment gateway business?

It is not that easy to estimate the cost of a self-developed payment solution. It depends on various factors, like the features you want for your solution. Like equipment prices, salaries, regulatory framework, etc. By making a rough estimate, it can be between $250K to $1M or can exceed more.

This figure contains basic MVP-making steps, like registration, domain, hosting, design. And development, licensing, certifications, and security appliances.

 

But in the white label model, the service provider sets the price. And you will know it in advance by looking at their website or you can ask them for a quote.

What are the risks and challenges of a PSP business?

• Except for the business’s attractiveness and profitability. Payment companies can face these challenges, like:

• Standing with the pace of innovation in the industry. To stay competitive. It is more important to innovate and increase functionality. And offering decent and versatile services.

• Security maintenance is a crucial part when it comes to payments.

• Chargebacks and fraud prevention.

• Complying with all rules and regulations.

 

The rise in these challenges may also affect you. Which depends on the payment business model you will be going to choose. So choose wisely, and please don’t hesitate to contact Gatewayeast for any assistance.