How To Build Your Own E-wallet or Payment System In The Shortest Terms


The global market of online payments is one of the fast growing in 2015. According to the Royal Bank of Scotland research, an overall growth rate of global non-cash transactions is 7.6%. Among the top ten countries with the fast growing non-cash rates are Russia (33.4%) and China (37.7%). It is a large, growing, and profitable segment of financial services.

Non-banks transactions reached 20% of total non-cash payments. This segment includes closed loop cards, mobile payments, payment system providers (PSPs), digital wallets and virtual currencies.

It should be mentioned, that because of the attractiveness of this market hundreds of new payment system providers or simply E-wallets appear on the market every year. These companies are fighting for their percentage in the chain of on-line payments offering customers more favorable terms and conditions.

What is E-wallet system?

E-wallet (digital wallet) is a system, which allows use stock funds when needed. As it is a pre-loaded facility, consumers can buy a range of products from airline tickets to groceries without swiping a debit or credit card. There are many ways to top up E-wallet account (credit cards, POSs, terminals, P2P money transfers, etc…).

As usual, E-wallet provider earns money on commissions. It is one of the most popular and profitable finance products.

How to build your own E-wallet business?

At first, an entrepreneur has an idea of product he wants to start. However, what are the next steps before launching the first version of his product?

- Market research, business plan. Before starting a new business an entrepreneur should study the market tendencies, namely find out what solutions already exist on the market, what business models they use, what are their advantages and disadvantages, etc… This information would be useful for business plan of a new company.

- Team. It is a must to hire a team of professionals: CTO, senior, middle & junior engineers, system administrator, product manager and designers. It will also be imperative to monitor how well the team performs, pay competitive monthly salaries & rent an office.

- Money. Every business needs investment. An entrepreneur should decide where to get money. Will the company be self-invested or will it need third-party investments? There are a lot of Startup Accelerators that are looking forward to invest it interesting ideas. Extensive list of FinTech startup accelerators in US, Europe and Asia regions can be found here.

- Prototype. To develop first prototype of a product founder and his team will waste up to one year. It is a waste of time, which can be used for the first beta test, hypothetical testing or refutation. On the basis of these tests it will already possible to make changes to the product.

- License. According to the law, every payment system should have a license. Founder should keep full documentation package, make sure that the payment system meets all requirements of the law. In some cases, it also needs to be PCI DSS certified.

- First release of your FinTech product. An entrepreneur will invest up to 300,000 euros into the product to get a first release. Founder would spend up to 1 year without real interaction with potential clients.

The question of time is critical. The earlier you start the product, the better your chances are.

How it works as a technology?

Let’s take a look on how E-wallet technology works.

All FinTech Products have a lot in common under the hood.

In each FinTech product there is a transaction core with basic operations: balance on account, transfer, merge, split, top up, and withdraw. Every product offers a paradigm of an actor with specific role in the system. It could be a merchant, an individual, admin or someone else.

The core logic is always the same. Business rules are different.

Nonetheless all development teams are start from scratch and always reinvent the wheel.

One year of your awesome life is an exorbitant price for such Product.

How to save time and money?

To save time and money FinTech founder can use a pre-built back-end as a software basis instead of developing it with a dedicated team. All good things have already been developed. Sometimes it is not necessary to spend a lot of time reinventing the wheel, just buy an existing one, for example

It is a pre-fab module based framework for FinTech development that can be combined or connected with other systems (internal or external). This architecture helps to develop desired functionality. The system easily adapts to a chosen business model. Technology Stacks: Java Enterprise Edition, Enterprise Java Beans, Java Server Faces, Java Web Framework and PostgreSQL/Oracle DB.

As we’ve previously mentioned, FinTech founders spend up to 1 year & 300,000 eur for a first product release. allows them to save time and money on product development. E-wallet can be built on framework in 3 months instead of a year and 10 times cheaper.

Talk to your clients not to developers!