The fintech world is in full swing! The sector has seen an explosion in fund-raising over the last 2 years, with record amounts that make people dream. Buybacks are also a fast-growing source of income. There’s never been a better time to launch a fintech… But how can you launch a fintech easily and quickly? E-Pay Space reveals some of its secrets.
1. Clearly define the products and services
offered by your fintech
Physical or virtual prepaid cards. Customised E-wallets? Mobile payment? Online kitty? Virtual IBAN? Incoming or outgoing transfers? Automated savings? Contactless payment?
Automated notification? Debiting? etc.
Each service and each function must be defined in as much detail as possible at the start of the project. The clearer your overall vision of your future financial offer (even if it will of course evolve over time), the faster you’ll be able to build it. List all the services you want to offer your future users, prioritise them and make sure they are consistent.
A word of advice: make drawings!
Draw cash flows from A to Z. From the moment it enters your environment to the moment it leaves in the form of payment. For example, if the customer has a virtual card, how will he recharge it? Will the money arrive immediately on the card or rather on an e-wallet? Once the money is on the e-wallet, will customers be able to top up their virtual card via a mobile application? Once the money is on the card, will he be able to make payments on a website? If so, will they benefit from cashback or loyalty points paid directly into their e-wallet? etc. Once you’ve finalised your flow chart with your list of services and functionalities, you’ll already have a clearer vision of your future fintech. This exercise not only allows you to make choices, but also to define the extent of your offer.
An example of an e-wallet diagram here.
2. Have a clear target
Individuals or professionals? Which country (and therefore which currency)? What nationality?
We can’t teach you anything by focusing your attention on the fundamental importance of defining your target. Whether professional or private, the field of possibilities remains immense, and the prospects of rapid profitability are always possible. Businesses are becoming increasingly digital and mature when it comes to payment issues. Increasingly, they are equipping themselves with innovative payment tools to streamline their processes or to provide their customers with disruptive new services. Similarly, the general public is seeing a boom in mobile and online usage. The user experience as we know it is increasingly rapid and less frictional. The search for omnichannelity and instantaneous exchanges is key. Choosing your target from a financial point of view also means defining your recruitment path. Indeed, you must comply with European identity verification rules before providing a payment service.
Here’s a word of advice: make sure your user journey is a smooth one! Identify your target’s typical persona, then define their customer journey through your websites, mobile applications and/or physical points of sale. Break down the process step by step, to simplify enrolment as much as possible (KYC, KYB, registration, account activation, etc.).
To find out more: what is a KYC?
3. Call on a Programme Manager to launch your fintech!
To be fast, you need to be well accompanied!
Many people make the mistake of trying to do everything themselves. Sometimes, however, it’s cheaper, safer and quicker to have things done by experts, especially in the Fintech world. Today, if your project is clear, precise and you know exactly what you need, the key to speed is to call on a Programme Manager like E-Pay Space. This role is special in that it involves Fintechs creating programmes for Fintechs. These are tailor-made infrastructures designed for the rapid market launch of payment solutions (in particular
white-label payment solutions). So, when you call on this type of company, you capitalise on a partner’s licenses, technical expertise and infrastructure, and benefit from its ecosystem for issuing payment instruments, managing funds and transferring money. Not only does this type of company accelerate the development of your solution, but it also enables you to centralise all your payment contacts in a single partner, thus considerably simplifying the creation process thanks to high-level technical and legal support.
A word of advice: choose certified trust structures, with data hosted in Europe. Qualify their ability to offer a complete set of services including: payment mediums (prepaid cards, e-wallets), enrolment processes (KYC, KYB), inbound and outbound money transfers and ready-to-use website delivery.
4. Hire developers
Back office and front office web developers capable of developing and integrating websites, mobile applications and, above all, connecting them to APIs. Example: if you have an “order a payment card” button on your mobile application, you’ll need to connect the “Order” button to a payment card issuing order with your issuer.
A final word of advice: don’t hesitate to ask for tests! APIs are generally easy to test and share.
This is just a brief overview of the different stages involved in setting up a fintech project. With the right experts, you’ll be taken through every step in great detail.