Electronic money is a popular medium of exchange today. Many people use digital wallets making thousands of transactions in dozens of electronic currencies on a daily basis. But sometimes they find themselves in need of another currency in another payment system. This is what e-currency exchangers are there for, and their relevance is rising in proportion to electronic payments industry growth. All this means that electronic currency exchange is a great way of making a profit. In this article we are going to talk about how to launch an electronic currency exchanger.
You have most likely heard of such payment systems as PayPal, Skrill, Neteller, and so on. Each system has internal currencies, for example PayPal USD, Skrill WMZ, Neteller EUR, etc. Internal currencies do not naturally convert among themselves, but e-currency exchange services have wallets in numerous payment systems and currencies, and assist users with converting those "inconvertible" units of money in exchange for a portion of the processed amount.
Learn about the procedure of creating a legal entity, since your future entrepreneurial activities should be properly formalized in order to avoid potential issues with authorities. Try to make sense of the legal frameworks that regulate transactions in electronic currency, attain the required certificates for payment systems and licenses.
What you also need is a script, an engine for your exchanger to make it come alive. The website must work impeccably, this is why you will need a high-quality engine and a reliable user data protection mechanism. Script, design and hosting constitute the bigger part of the entire investment. Design should be convenient, attractive and eye-catching.
Select what currencies and payment services will be integrated into the exchanger. Make appropriate partnership deals outlining the terms of your cooperation. Usually, commission payments vary between 1% and 5%. However, in the beginning, staying within 2-3% of the exchanged amount is recommended.
In order to carry out transactions, you'll need wallets in several payment systems. The more you have, the more market share you can cover. The wallets will be put to use during exchange operations, so at this stage you should formulate a pricing policy for yourself as well as your clients. You should have sufficient amounts of accessible reserves so that your service could stay operational 24/7.
Exchanger promotion, drawing attention and earning client trust. Affordable prices work like a charm, users will be deeply impressed upon their first visit. Create a presence on forums dedicated to currency exchange. Partner with other services, first and foremost, with exchanger monitors, such as OKchanger. If you set truly affordable prices, expect a deluge of people coming from the monitors.
In the electronic currency exchange business, only 2 options are considered serious: creating a script from scratch and purchase (renting) of a pre-made high-quality solution. Free scripts are not safe and lack reliability.
The more prestigious, but complicated and expensive option is developing software from scratch. It takes time to find good programmers (freelancers or full-time staff), and a beefy wage budget. The full development cycle takes a year, more or less.
In comparison with the previous option, buying a pre-made solution is the more affordable and quick alternative. There are many different kinds of such solutions, one full license costs a couple of thousand dollars on average, monthly subscription—several hundred. This way, the exchanger will be fully operational in just a couple of months.
The electronic payments industry is gaining steam, which in its turn fuels demand for electronic currency exchange services. Anyone can launch an exchanger. The most important part is doing everything the right way and having sufficient capital.