How to implement a serial bank card

The choice of an online payment platform depends on many factors. It includes a set of necessary functions, ease of integration, the architecture of the solution in general, and much more. But the first thing fintech companies should consider when choosing a platform for launching a card program is their budget. The most money is spent on software development. At the initial stage, it is worth deciding if you are ready to spend money to create a unique product or if it is enough to choose a high-quality ready-made solution to achieve your goals.

Preparing to choose a solution

Before you start negotiating with online platform companies, you need to think and prepare the following points:

1. The business plan of the product. It must include a step-by-step development and implementation of the platform. It should be scheduled for at least three years. It is important to specify all the necessary services.
2. Budget. It is essential to immediately limit the maximum available amount you can allocate for software development and its operation for at least three years.
3. Personnel. A technical consultant should handle the development of the solution and customization. It is necessary to take care of the availability of such a staff unit.

As soon as all the prerequisites are in place, you can start looking for a company that develops platforms for card production. They can be initially compared on price, but the cost of implementing and using the platform for 2-3 years should be considered. The initial price will give a partial picture of the costs incurred.

Suppose you estimate the costs of maintaining the platform over several years. In that case, a solution that was initially cheaper will become very expensive over the years of use. New feature integration and customization may be more affordable in more costly solutions. This approach to estimating solution costs will allow you to evaluate offers from different providers and options for deploying a banking platform from a single vendor.

Let’s take a closer look at the costs of developing and deploying a banking platform.

Software

The direct costs of purchasing software include:

• The software itself and its installation.
• Monthly maintenance.
• A subscription fee for use.

The amount of these fees depend on the type of system deployment. There are two such options:

1. SaaS. There is a separate installation fee for each specific solution. The software subscription fee may depend on the number of allowed transactions, which means you have to consider the future expansion of your business when making your calculations.
2. Software license. The license includes installation and maintenance fees under the License Agreement.

Development and customization

Having a precise plan according to which you plan to refine and expand your software, you will be able to forecast the cost of additional software customization and other additional developments.

The cost of customization is much higher than customizing off-the-shelf solutions. With customization, the cost over 2-3 years can exceed the price of all software at the start. The developer may also offer several services for free or as a gift to other services.

Integration

Every business is different, so some companies may need to modify ready-made solutions. When calculating the cost, you need to consider the cost of developing additional integrations that are not included in the standard service package. When evaluating the capabilities of the proposed online platform, pay attention to whether it has the following integrations:

• with AML/KYC;
• with banking institutions;
• with payment systems;
• with the issuers of payment cards;
• with liquidity providers;
• with CRM.

If any of these integrations still need to be included, they must be paid for additionally. With them, the platform will work properly and efficiently.

Software updates are paid by the hour. It is your technical advisor who makes a preliminary calculation of the number of integrations, taking into account the features of the platform and the needs of the company.

Updates

The cost of software updates can be included in the monthly subscription fee or charged separately. It should be discussed with the service provider individually, and hosting costs should be added to this amount. But they may also be included in the system deployment fee.

Updating the software in the future

Businesses are evolving, so their software needs to be designed to expand and add new integrations. At the outset, it is difficult to plan precisely what refinements will be required for a few years and in what direction the business will evolve. The budget for the purchase of the online platform should include a reasonably large sum for unforeseen and unaccounted-for costs. The final price should also include the hiring of IT staff who will maintain the platform.

At the planning stage, it isn’t easy to account for all the possible costs of launching your banking platform. But if you decide to expand the capabilities of your business, try to choose a software provider based not only on the cost of its services but also on the quality of its delivery. Choose the software that will best meet your company’s and its customer’s requirements, and the benefits it receives will fully recoup all the costs incurred.

Author MAKSIM SKRIPNIK

Content, demand gen and SEO professional. Talking about fintech, finance, banking and also spreading the word about Wallester Get in touch!