Business Idea

Start A Payment App

About

Starting a payment app requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell payment app, or selling payment app online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a payment app ➜

Key stats

market size
$79.3B
revenue (monthly)
$520K
starting costs
$37.5K
gross margin
37%
avg product price
$1
time to build
10 months
growth
SEO
business model
E-Commerce
time investment
Side project

About

Starting a payment app requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell payment app, or selling payment app online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a payment app ➜

Key stats

market size
$79.3B
revenue (monthly)
$520K
starting costs
$37.5K
gross margin
37%
avg product price
$1

 

time to build
10 months
growth
SEO
business model
E-Commerce
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $10 $2,100
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $500 $5,000
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
App Creation Costs $1,099 $20,099
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $2,750
Other Expenses $0 $800
Total Startup Costs $7,603 $66,243

Successful Businesses

Business URL Rank
Alipay global.alipay.com #28
ADP adp.com #389
Skrill skrill.com #2,925
Crypto.com crypto.com #3,703
App Annie appannie.com #3,761
The shortcut to shopping klarna.com #3,765
PhonePe: UPI Payments, Investment, Insurance, Recharges, DTH & More phonepe.com #8,074
Citrus consumers.citruspay.com #8,643
PayFast South Africa payfast.co.za #9,353
paysafecard paysafecard.com #12,742
Online Recharge on FreeCharge freecharge.in #14,794

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Meaningful business connections You never know who you will meet as a payment app. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Unlimited income potential With starting a payment app there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Amazing perks and discounts Working in the payment app comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
Cons Description
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Low margins The gross margins for your payment app are typically around 37%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the payment app, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a payment app, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
High overhead expenses With starting a payment app, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Partnerships

    A partnership is a formal agreement between two or more entities to oversee business operations and share profits and liabilities.

    Creating strategic partnerships with an existing business can be a huge win for a startup.

    This is considering that a partnership creates a new slate of future options for your startup.

    On the other side, pursuit of partnerships could suck up a ton of time, and bunch of resources, and fail to materialize.

    Therefore, entrepreneurs need to do proper research and evaluate the possibilities of achieving success through partnerships.