7 Steps to Starting a Cross Border Payments Company

So you have decided you would like to start a cross border payments company, whether this is a wallet, a money transfer company like a remittance business or a business to business company, whatever the path you choose, here are the 7 needed steps to make your idea go live.

1. Speak the Language

There are various nuances and terminologies used in the money transfer / cross-border payments space. You are expected to know of it. It is the equivalent of going to a restaurant and asking what are fries. Okay, what do they taste like? Okay, can I buy one fry? What is Pepsi? or what is a burger? What do you mean with cheese? I’m sure you get the point. Questions like these will frustrate everyone. Spend time learning the terminologies, definitions and a bit of how it works.

I’m on a quest to put out 500-750 videos over the next 1-2 years to explain all these things, but till then, Youtube and Google are your friends.

Here’s a link to my list of explainer videos: How To Setup A Money Transfer Business Playlist

2. Fill out the Regulatory Coverage Form

This form basically is a one-pager on your business idea. It captures:

  • Who you are?
  • What you are trying to achieve?
  • Type of Business you indent to carry out
  • What geographies do you intend to work with?
  • How ready (or not) are you?
  • Some information on your transactions and,
  • A bit of information on your compliance.

You can fill in the form here: Licensing Regulatory Coverage Questionnaire (takes about 10-15 minutes to completely fill it out)

3. Set up a call & Quote

I’ll include a method on how to schedule a call (it is in the description below). On the call, we go over your application. It takes 30 minutes.

We may have questions and/or require clarifications from you.

4. Term Sheet Consideration

The next step is to understand what you are willing to pay for a solution and if there is indeed a provider out there for you This is called a term sheet consideration.

Here’s the link to the form: Term Sheet Consideration

Watch these two videos to understand what is a term sheet.

5. Quote

Once that is done, we will most likely go a project readiness evaluation and provide a quote to you.

6. Referral Agreement & Deposit

Once you have decided to forge ahead, sign the referral agreement and place the appropriate deposit payment as required by the referral agreement.

7. Introduction to Program Manager & License Holder

The last step is the introduction. We will introduce you to the Program Manager and the License Holder.

Here you will sign an NDA with them and then 5 (or 6) things will run in parallel:

  • Due diligence
  • Sandbox API Access / Technology understanding and access
  • Contract Draft (assess the legal binding)
  • The flow of fundsFlow of Funds Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. /transaction set / KYC / compliance questions
  • Correspondent tie-ups, processing & delivery networks
  • Commercials.

All of this from start to finish takes about 6-to-8 weeks.

Ready to launch your money transfer business? Schedule a call with us by using the link below.

To get help with a European EMI License, contact us below.

This page was last updated on December 14, 2021.