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Requirements for starting a payment gateway business like payfast
- Thread starter zelo
- Start date
InTheCube
Expert Member
Step 1: Use as many payment gateways as possible, to see how they all work, to get ideas of how your own payment gateway should work. Use it as a regular end-consumer. This means doing online purchases from many different sites.
Step 2: Use a few payment gateways for your own online shops. See how it works, what issues there are, and think of how you can improve on it.
Step 3: Approach the banks, and gather more info. You will definitely need to partner with one or more, if not all the major banks, to roll out a payment gateway.
Step 4: Develop your gateway, test it, and start selling it.
You can't simply develop a payment gateway, without having any experience with them at all. You also need to have a solid understanding of how online shops and online commerce operates, which is why I think you need to have good experience running a few online stores before you even try to develop your own payment gateway. Kinda like trying to design your engine, but you've never even driven a car before. (Of course, I'm making a lot of assumptions about you. Perhaps you know these things already.)
You will need to understand how to accept various types of payments (credit card, cheque/debit card, EFT, Paypal, and other common payment methods). You will also need to partner with loyalty programmes like eBucks, uCount, Discovery Miles, etc, to get sufficient market penetration of your gateway. You will also need to focus heavily on security, SSL, Verified by Visa, OTPs, etc.
I'd say you've got a mountain ahead of you, but it is definitely possible if you have the drive, resources and funds to commit to such a venture.
Step 2: Use a few payment gateways for your own online shops. See how it works, what issues there are, and think of how you can improve on it.
Step 3: Approach the banks, and gather more info. You will definitely need to partner with one or more, if not all the major banks, to roll out a payment gateway.
Step 4: Develop your gateway, test it, and start selling it.
You can't simply develop a payment gateway, without having any experience with them at all. You also need to have a solid understanding of how online shops and online commerce operates, which is why I think you need to have good experience running a few online stores before you even try to develop your own payment gateway. Kinda like trying to design your engine, but you've never even driven a car before. (Of course, I'm making a lot of assumptions about you. Perhaps you know these things already.)
You will need to understand how to accept various types of payments (credit card, cheque/debit card, EFT, Paypal, and other common payment methods). You will also need to partner with loyalty programmes like eBucks, uCount, Discovery Miles, etc, to get sufficient market penetration of your gateway. You will also need to focus heavily on security, SSL, Verified by Visa, OTPs, etc.
I'd say you've got a mountain ahead of you, but it is definitely possible if you have the drive, resources and funds to commit to such a venture.
Last edited:
100% certain - You're going to need to be PCI compliant.
90% sure - You're going to have to register as a financial institute.
I presume you're going to need a lot of capital backing.
You're going to have people trying to hack you.
You're going to have to buy expensive insurance for when people do hack you.
You're going to have people really hack you.
You're going to be DDOS'ed.
You're going to have to do a lot of reading and pay a lot of expensive lawyers.
You're going to have sleepless nights.
You're going to have to deal with refunds and scamming.
Probably some 'advanced accounting' audit would be needed.
I think the development side could be the least of the time and effort spent in this so be prepared for a long haul.
90% sure - You're going to have to register as a financial institute.
I presume you're going to need a lot of capital backing.
You're going to have people trying to hack you.
You're going to have to buy expensive insurance for when people do hack you.
You're going to have people really hack you.
You're going to be DDOS'ed.
You're going to have to do a lot of reading and pay a lot of expensive lawyers.
You're going to have sleepless nights.
You're going to have to deal with refunds and scamming.
Probably some 'advanced accounting' audit would be needed.
I think the development side could be the least of the time and effort spent in this so be prepared for a long haul.
Last edited:
Necropolis
Executive Member
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This is the biggest hurdle you are going to face - it is going to cost an arm and a leg and take a long, long time to pass a PCI DSS audit.
I'm not too clear with PCI compliance, I know'of' it but not 'about it'.
I do know Amazon are PCI-DSS Compliant but that probably only covers the technology infrastructure.
Also I don't think this will give you PCI Certification, only compliance with which you can get certification.
Again - this is my though process and not 'how it is'.
VG008
Senior Member
semaphore
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Went through this process already.
You will get audited.
You will need a parntering bank to clear and accept.
You will need to get a bankserv LD code
You will need to register as a third party payment provider
You will need to register a payments provider
You will need robust systems with ample security.
All the above costs a lot of money and takes a very long time to setup, took us a few months. That being said the market is pretty saturated these days with payment providers, so there is really nothing revolutionary that you will be able to offer (sorry).
You will get audited.
You will need a parntering bank to clear and accept.
You will need to get a bankserv LD code
You will need to register as a third party payment provider
You will need to register a payments provider
You will need robust systems with ample security.
All the above costs a lot of money and takes a very long time to setup, took us a few months. That being said the market is pretty saturated these days with payment providers, so there is really nothing revolutionary that you will be able to offer (sorry).
semaphore
Honorary Master
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No. The biggest hurdle is going to be a bank actually taking you seriously without ample financial backing, and i mean ample.
naeem
Expert Member
let me guess, and forgive my cynicism 
OP saw the $'s when one gets a small % or few rands on every transaction, and then saw how eCommerce is growing and figure. "hey, here's an easy way to make fat stacks yo!"
Like the others said. You need lots of $'s, lots of experience and some rocksolid contacts at the banks. it helps if you have a foot through the door already. But being a total stranger to the industry... not gonna happen.
OP saw the $'s when one gets a small % or few rands on every transaction, and then saw how eCommerce is growing and figure. "hey, here's an easy way to make fat stacks yo!"
Like the others said. You need lots of $'s, lots of experience and some rocksolid contacts at the banks. it helps if you have a foot through the door already. But being a total stranger to the industry... not gonna happen.