Launching a payment service is a difficult but promising task. There are many nuances in this area, but a successful start depends on four basic decisions.:

1️⃣Choosing a business model

2️⃣ Target audience identification

3️⃣ Enabling payment methods

4️⃣ Choosing a processing platform

Let's look at them in more detail so that you can avoid mistakes and build a sustainable business.

Before proceeding to the technical part, it is necessary to understand what role your service will play in the payment ecosystem. There are two possible options:

• Processing center center (Processor) – performs an exclusively technical function, connecting merchants with payment systems. The money goes through the service, but they don't linger on his accounts. All calculations take place directly between online stores and banks or payment systems.
• Billing account Aggregator – not only transfers payments, but also independently accepts funds into their accounts, and then distributes them among merchants.

If your service operates according to the aggregator model, it is important to consider:

✔ The need to obtain a license from a payment organization, which requires time and resources.

✔ Increased complexity of accounting and mandatory financial audits.

✔ Lengthy registration process (up to 12 months) and significant startup costs.

The processor model allows you to start faster and with fewer regulatory requirements.

The mistake of many startups is trying to reach everyone at once. However, a payment service should be aimed at a clearly defined audience. Answer three questions.:

• Who is your client? (e-commerce, SaaS, marketplaces, etc.)
• Where does he work? (domestic market, international activities)
• What kind does he need payment instruments?

The more accurately you define the portrait of your audience, the easier it will be to choose payment methods and a processing platform.

VISA and Mastercard cards are the basic solution, but not the only one. In different countries, customers prefer local payment instruments. For example:

• In the Baltic states – BankLink (online bank transfers).
• In the UK – Ukash (prepaid vouchers).
• In the CIS, there are electronic wallets and a Fast Payment System (SBP).
• In Central Asia:
• Kazakhstan – Kaspi Pay, Halyk Pay, Qiwi Kazakhstan, Kassa 24.
• Uzbekistan – Payme, Click, Uzcard, HUMO.
• Tajikistan – Korti Milli, Alif Mobi, Express Pay.
• Kyrgyzstan – Elkart, MBANK, Oh!Money.
• Turkmenistan – Altyn Asyr, Millikart.
• In Azerbaijan – MilliÖN, eManat, Portmanat, Hesab.az .
• In Georgia – TBC Pay, OPPA, PayBox, eMoney, Unipay.

Adding local payment methods makes the service more attractive for businesses in each specific region.

The processing platform is the technological basis of the payment business. It must be reliable, secure, and support the necessary payment methods. There are three approaches to choosing it:

, Developing your own platform

✔ Full control over the code and functionality.

Long and expensive development (from 6 months).

Mandatory PCI DSS certification.

, Purchase of a ready - made solution

✔ Quick launch.

, High cost (starting from hundreds of thousands of dollars).

Limited customization options.

, Rent a White-Label platform (SaaS)

✔ Minimal startup costs.

✔ Ready-made PCI DSS certification.

✔ Connection in 1-2 months.

White-Label solutions allow newcomers to the market to offer customers a high-quality payment service without having to create it from scratch.

Before launching the payment service, answer four key questions:

✔ Which business model is best suited?

✔ Who will be your clients?

✔ Which payment methods are important for your audience?

✔ Which processing platform should I choose?

The more carefully you think about these aspects, the faster and more successful you will be able to enter the market.

, The original article is published on the eComCharge website.