The most appealing business with the lowest barrier of entry is considered a payment service app, including instant loan services and comprehensive data and credit ratings.
The company aims to control and own its established payment services channel fully.
About payment services
Hundreds of upcoming local and global tech companies enter the payment services market each year. Bringing in non-traditional players offering payment services is one of the most attractive business models for fintech companies.
Firstly, the high service costs charged in the past have contributed to this. Cross-border transaction fees, standard transaction fees, renting POS systems, and currency exchange rates are among the many fees under scrutiny. Secondly, the barrier of entry for fintech companies is relatively low if they utilize the credit card companies’ gateway system. Most of the payment system technology is processed through the giant credit card company’s gateway system, to which all fintech companies have equal access. Payment gateways act as a middleman between the customer and the Merchant, ensuring transactions are completed promptly and securely. In this way, payment gateways and processing companies enable the completion of online transactions and securely facilitate the processing of online payments. Thirdly, few markets have opened the banking system to new payment service providers by introducing open banking regulations and directives.
The upcoming non-traditional fintech players will generate novel consumer choices offering competitive selections against established market players. The current focus of non-traditional fintech companies is not to try to operate like a conventional bank but rather to identify the most attractive surplus services. In addition, the fintech titans build splendid consumer relations, often in partnership with established banks that do not consider the long-term implications of their actions.
The masterplan
User experience, trust, benefits, and cost are fundamental drivers for charming the consumer’s digital wallet at the point-of-purchase. Consumers will show their power by selecting the most attractive and cost-effective financial services choices.
The modules in the first phase were as follows:
- How to go to market, key players, technical setup, and the service systems
- Operational plans and financial statements
- The company’s database and data security
- Vision, mission and values
- Registration of customers in the database
- How to build a strong business foundation
Focus on payment services
Payment services include assisting customers with purchasing goods, where an instant loan service can initiate the purchase. An instant loan is a short-term loan intended for individuals who find themselves with a sudden cash-flow issue that limits their purchases. It’s a win-win situation because the customer can afford the purchase, and the Merchant gains higher sales revenue. The purpose of an instant loan is to meet a short-term personal need for capital, and the principal amount is paid back with interest by a specified date.
Outcome
The process was put on hold due to the complexity of stakeholders, who did not feel ownership. Later, the master plan was reactivated, updated, and introduced through a complete and successful market installation.