Which banks are best suited for companies running international e-commerce stores?
Banking
Asked by Question Bot11/Oct/20121 answer
1 Answer
F
Faisal Khan
Answered 11/Oct/2012
Building an online cash equivalent, may seem interesting and easy whilst standing in front of a whiteboard with a marker, but deploying such a solution out in real-life is anything but easy.
For starters, the BACS (see http://www.bacs.co.uk/) could possibly be used as a ported mobile app to do (in a near sense) of what Dwolla does. Traction (acceptance) will always be your main challenge. In addition to this, FSA would be looking through your business model with a very fine toothcomb, and many ambitious business plans of such nature, have been struck down by them.
It all comes down to trust. People (consumers) are more willing to do a transaction on a network they can associate with and trust. New startsups face a Herculean task in this arena. Brand association!
What you need are anchor clients and a financial institution to back you on this. Easy as it may sound, selling such an idea and actually taking it a step forward, doesn't always yield success.
I personally feel the flat rate model holds a lot of value, but the truth is, it would be very difficult to compete and sustain it in the long run, until and unless you have a very large user base, and your transaction volumes are large enough to make it profitable for you to sustain operations.
For starters, the BACS (see http://www.bacs.co.uk/) could possibly be used as a ported mobile app to do (in a near sense) of what Dwolla does. Traction (acceptance) will always be your main challenge. In addition to this, FSA would be looking through your business model with a very fine toothcomb, and many ambitious business plans of such nature, have been struck down by them.
It all comes down to trust. People (consumers) are more willing to do a transaction on a network they can associate with and trust. New startsups face a Herculean task in this arena. Brand association!
What you need are anchor clients and a financial institution to back you on this. Easy as it may sound, selling such an idea and actually taking it a step forward, doesn't always yield success.
I personally feel the flat rate model holds a lot of value, but the truth is, it would be very difficult to compete and sustain it in the long run, until and unless you have a very large user base, and your transaction volumes are large enough to make it profitable for you to sustain operations.