The global financial services market is one of the richest in the world and represents a lucrative sector for budding business people to get into. The industry is worth $22.5 trillion in 2021 and is expected to grow to $28.5 trillion by 2025. Innovators who have created their own payment platforms have reaped the rewards, and it’s not too late for others to follow suit. Online systems represent the future of transactions, but how would someone go about starting one?
Payment Platforms are Dominating the Internet
It wasn’t until recently that varied payment platforms became a thing. Visa and Mastercard were the dominant forms of performing cashless transactions for decades, but now other options have come from nowhere and risen like blooming flowers in spring. The key theme of the internet has been an abundance of choice, as users from all over the world have shown diverse opinions about what they prefer. This has been most apparent with payment platforms, and there are now offerings to suit almost anyone.
Online gaming sites use varied payment platforms to stand out from their competitors. Many players now go in search of instant pay-out casinos, where fast withdrawals are key. This can be done with advanced online payment platforms, including e-Wallets and cryptocurrencies. Old banking methods would typically take between seven and ten days to furnish players with their winnings, and this simply isn’t good enough for the modern internet user. Therefore, new-fangled payment systems have come about and helped to address this issue. These fresh and exciting options will soon render the more traditional methods obsolete, which is why it is still the perfect time for business-minded people to create their own payment platforms.
How did the Most Successful Ones Start?
PayPal is arguably the most successful payment system on the internet now, bringing in more than $20 billion in revenue in 2020. This helped it to earn 134th place on the 2021 Fortune 500, detailing the highest moneymaking corporations in the USA. The journey of this now ubiquitous payment platform has been gradual, and it has taken more than twenty years for it to achieve the global dominance it now enjoys.
PayPal is available in more than 200 countries, and it is surprising to think that it had such humble beginnings. It started in 1998 as Confinity, and originally specialised in security software. That business idea was a flop, though, so founders Peter Thiel, Luke Nosek, and Max Levchin changed tact and decided to develop an electronic payment system in 1999. The company merged with Elon Musk’s X.com in 2000 and became PayPal in 2001 before going public in 2002.
The major reason for PayPal’s success was its connection with eBay for more than a decade. It became a subsidiary of the world-famous online trading platform in 2002 and handled more than 70 per cent of auction payments until 2014. During this time, the company was able to establish itself as trustworthy and reliable. This helped it to achieve its incredible worldwide success after being spun off from eBay in 2015.
How Can You Start Your Own Payment Platform?
Aspiring businesspeople may look at the success of PayPal enviously, but there is still the potential to replicate its accomplishments in 2021. Setting up a payment platform is easier than you might think. By following a few simple steps, you can create your own offering. From there, though, it would be a case of having to embark on a clever marketing model to become the next PayPal.
To become a payment service provider, you need to host a gateway and integrate this with a payment processor. You would then need to develop CRM and pursue the licences with the relevant authorities. To make money from it, the best method is to take a small percentage from each transaction.
With some of the world’s best-known payment platforms having existed for more than a decade, it may feel like the ship has sailed on a venture like this. However, with the financial industry ballooning at an astonishing rate, it could still represent the perfect time to get an offering out there. To enjoy similar success to PayPal, it would have to be innovative, with a solid marketing plan.