Online Payments: How can I create a Dwolla-style payment service in another country?
Payments
Asked by Question Bot05/May/20131 answer
1 Answer
F
Faisal Khan
Answered 05/May/2013
The first place to start is with your country's Financial Regulator.
Research, read-up and inquire, what are the rules and the law governing introduction of new payment systems. Chances are that any new payment system you roll out or deploy would be regulated in some manner. Some may require you to be a designated payment system or a money service institution, etc. Most central banks have some sort of a published document on the payment systems under their jurisdiction. You might want to refer to that. Also, see what sort of statistical information you can get out, on the number of transactions and the value of the transactions that run on the existing payment networks. This should be your primary task at hand.
Your next logical step is to look at various payment systems already present in your country and how you can improve upon them (using the Dwolla model). Is there an EFT switch you can take advantage of. What about an ATM network? or a Direct Debit Switch? Is there a possibility of working around it (to save costs) by leveraging direct connectivity or connectivity to alternative payment systems? This needs to be explored.
The technology part is just an enabler here. Don't focus too much on it. Try to get the transaction and process flows worked out. You may eventually have to partner up with a bank for this (to help you with the risk/liability and banking license requirements).
Depending on your country, you may or may not be able to juxtapose the Dwolla model 100%. You may have to conform to the local/geographic ground realities of the market you operate in.
Your primary goal is to seek a partner (read: bank) with whom you can trial (beta) this idea of yours. This would most likely be the hard part. Banks are very conservative and reserved. They may not be that easy to break in to (no pun intended).
If you have your anchor players to work with, the next logical step is to code it and deploy it as a beta and see how it works.
Needless to say, SWOT and Feasibility studies on your idea needs to be worked out to have a better view of the commercials and the merchantability of the product itself.
Research, read-up and inquire, what are the rules and the law governing introduction of new payment systems. Chances are that any new payment system you roll out or deploy would be regulated in some manner. Some may require you to be a designated payment system or a money service institution, etc. Most central banks have some sort of a published document on the payment systems under their jurisdiction. You might want to refer to that. Also, see what sort of statistical information you can get out, on the number of transactions and the value of the transactions that run on the existing payment networks. This should be your primary task at hand.
Your next logical step is to look at various payment systems already present in your country and how you can improve upon them (using the Dwolla model). Is there an EFT switch you can take advantage of. What about an ATM network? or a Direct Debit Switch? Is there a possibility of working around it (to save costs) by leveraging direct connectivity or connectivity to alternative payment systems? This needs to be explored.
The technology part is just an enabler here. Don't focus too much on it. Try to get the transaction and process flows worked out. You may eventually have to partner up with a bank for this (to help you with the risk/liability and banking license requirements).
Depending on your country, you may or may not be able to juxtapose the Dwolla model 100%. You may have to conform to the local/geographic ground realities of the market you operate in.
Your primary goal is to seek a partner (read: bank) with whom you can trial (beta) this idea of yours. This would most likely be the hard part. Banks are very conservative and reserved. They may not be that easy to break in to (no pun intended).
If you have your anchor players to work with, the next logical step is to code it and deploy it as a beta and see how it works.
Needless to say, SWOT and Feasibility studies on your idea needs to be worked out to have a better view of the commercials and the merchantability of the product itself.