How costly is it to launch a payments or mobile wallet startup?
Payments
Asked by Question Bot08/Apr/20141 answer
1 Answer
F
Faisal Khan
Answered 08/Apr/2014
The answer is: it depends.
It depends on your transaction set, the product offering, the country in which you would like to deploy the wallet, the card schemes you might/might-not want to associate with the wallet, the regulator angle and the banking partner (that you would need).
If this is an offering, i.e. you are looking to provide the mobile wallet as a public offering, the cheapest price I have seen for a 50,000 wallets deployment is about US$ 300,000. This is in a developing county, with subsidized rates. The cost is for a card-scheme attached wallet and cost of operations for one year with a lot of freebies thrown in by the banking partner and the wallet provider.
Without these subsidies, the cost for 50k wallets for 12 months of operations can easily touch the US$ 750,000 mark.
In the developed world, this cost hinges closer to the US$ 1.5/2.0 Million mark.
Security is usually outsourced or you go work with a provider that already has the prerequisite security in place and is able to host your wallet.
It depends on your transaction set, the product offering, the country in which you would like to deploy the wallet, the card schemes you might/might-not want to associate with the wallet, the regulator angle and the banking partner (that you would need).
If this is an offering, i.e. you are looking to provide the mobile wallet as a public offering, the cheapest price I have seen for a 50,000 wallets deployment is about US$ 300,000. This is in a developing county, with subsidized rates. The cost is for a card-scheme attached wallet and cost of operations for one year with a lot of freebies thrown in by the banking partner and the wallet provider.
Without these subsidies, the cost for 50k wallets for 12 months of operations can easily touch the US$ 750,000 mark.
In the developed world, this cost hinges closer to the US$ 1.5/2.0 Million mark.
Security is usually outsourced or you go work with a provider that already has the prerequisite security in place and is able to host your wallet.