I am Nitin Garg Founder of BR Softech PVT LTD - an Award-winning mobile game development company. We are armed with 180+ geeks & 2753 clients worldwide, I have driven by the spirit of entrepreneurship and dream to build a billion-dollar-company.
The popularity of money transfer businesses like Revolut is no longer a hidden secret. Ever since we know how to start a money transfer business, it has enabled us to provide users with online banking and money transfer services using their mobile devices.
That’s the ultimate reason why over 70% of people in the United Kingdom favor online money transfer over cash.
Hence, the increased demand for online money transfer tools, enabling entrepreneurs to become a part of this highly profitable business venture with the help of a payment gateway app clone script development.
In this blog, we will talk about every different perspective of how to start a money transfer business in the UK.
Therefore, let’s go over that.
Table of Contents
What is Online Money Transfer Business in the UK?
Online money transfer business involves the transfer of money from one person to another person. Depending on the situation, this money transfer could happen within the same country or cross-border international payments.
When compared to traditional banking where you need to visit the bank to transfer the money. Online money transfer business serves websites, software, or apps that are available to the user at all times and let them make the payment online anytime to anywhere in the world.
As far as security is concerned. Money transferred over the internet is protected by high secure layered coding. In simple words, money sent online goes through multiple security measures, hence the scope of fraud activities is less than .1 percent.
READ MORE >> Know More About Paytm Payment Gateway Integration
How the Online Money Transfer Market is Evolving in the UK?
At the time of Covid-19, when the global economy was going through the worst phase, and many businesses were forced to shut down. Online money transfer mobile apps like Revolut have become the economy of the $33 billion that too alone in the United Kingdom.
As per the recent report published by Statista.com, the transaction value of the digital payment system is expected to hit the market cap of $108,908 by the end of the year 2021.
Additionally, that same report said that this transaction value would grow by 11.7% annually by 2025, hitting the mark of $166,373.
Image Credit: Statista
By the end of the year 2025, more than 15.6 million users are expected to make payments using online money transfer platforms such as PayPal, Venmo, Western Union and so many others to name.
Find Out What the Mobile Money Transfer Business Model Involves
Here is how an online money transfer business in the UK generates revenue.
1. Transaction Discounting Rate (TDR):
The amount of the TDR is derived from the total transaction value for each transaction processed through the payment gateway. This transaction discounting rate can differ depending on the mode of payment i.e. credit card, debit card, mobile wallet, net banking, or any other mode of payment. Apart from charging certain TDR, some online money transfer mobile apps also ask for a fixed subscription fee in exchange for their services.
2. Charges on Cross-Border Payment
In this case, the payment gateway charges a higher TDR as multiple currencies are involved in the transaction.
3. Set-up Cost
Any business that seems interested in using your online money transfer mobile app to receive payments from their customers, can charge them a set-up fee.
4. Maintenance & Support Fees
In addition to TDR and set up costs, the money transfer mobile app also costs you a certain amount in maintenance & support fees.
Success Stories Top 3 Online Money Transfer Businesses Apps From UK
First, let’s look at the success stories of the top 3 online money transfer business apps from the UK before answering the question of how to launch a money transfer business app in the UK.
Revolut, a London-based financial technology company founded in 2015, has raised an investment fund of $800 million, making it the largest fintech startup in the UK. With this large investment, Revolut is now valued at $33 billion.
The Fintech Times estimates that the number of Revolut users will grow to 15 million by 2021 from the 6 million recorded in the year 2019.
Wise, formerly TransferWise, was founded in 2011 in London and is witnessing unprecedented success in the UK.
As per CNBC, Wise has a community of more than 3 billion active users that are transferring more than $2.3 billion with each passing day.
BPCE, one of France’s biggest banks, is setting up a joint venture with Wise. The partnership will result in an increase of 15 million users for Wise.
WorldRemit is an international money transfer startup with headquarters located in London, and the United Kingdom.
WorldRemit was founded in the year 2010 and with continuous growth, it is facilitating online money transfer services in more than 130 countries along with the support of over 70 currencies.
A Crunchbase report says WorldRemit has raised $175 million in funds, which boosted the company’s value to $668 million.
How to Start a Money Transfer Business App in the UK?
In this guide, we will show you how to develop a business app for money transfer in the UK.
1. Discovery and Competitor Analysis Phase
Before you get your hands on the money transfer app development, you should spend some time getting an idea about your target audience and competitors. You need to gather as much information as possible to come up with customer-focused app development solutions.
Apart from customers, you also need to analyze your competitors to learn what strategies they are following to strengthen their position in the market. Also, pay attention to the latest trends to bring the most innovative solutions to the market.
2. Project Planning and Evaluation
At this stage, you need to figure out what features and functionalities you want to add to your money transfer business app. Here is a list of some of the core features that you need to include in your money transfer website development or app development.
Utility Bill Payment
The biggest aid of online payment apps is that they reduce the need for paying utility bills physically. Having this feature in your app or website will allow your customers to make payments for their utility bills with one signal click.
This is one of the core features of the online money transfer app which enables users to send and receive money.
The user needs to enter the password or OTP every time they attempt to make a transaction. This ensures no one except the authorized person can make the transaction.
This feature helps to keep track of every transaction in one place.
Notification and Alert
This feature keeps the user notified about all the actions taking place on the money transfer business app.
International Money Transfer and Currency Exchange
This feature lets the user transfer money internationally and the recipient will receive the money within the next few minutes or seconds.
If you are thinking of expanding your money transfer business internally, then it is worth considering adding multiple languages to your app.
3. Prototyping & Development
This is one of the most important phases of money transfer website and app development. During this phase, website developers and mobile app developers envision your idea and see how it will operate.
The prototype presents you with a few glimpses of the website and mobile application before the actual development process takes place. Once the prototype is approved by the client, the developers begin to develop the application by using the approved programming language, framework, and technologies.
4. Testing & Deployment
Testing is another important stage that comes into existence after the money transfer app development solutions are accomplished. The team of quality analysts tests every different aspect of development on different parameters including loading speed, reliability, size, and so on. The testers also test the security of the application to make sure it remains free from hacking and other fraudulent activities.
Cost to Start Your Own Money Transfer App Business
The cost of starting your own money transfer app business in the UK would be in the window of $15,000 to $35,000. However, this is just an estimated cost, the actual cost can differ depending on the number of features, complexity, required team size, legal cost, marketing, and so many others.
To get an idea of the actual cost of the payment gateway app development, it would be great to have a personalized discussion with a payment gateway development company like BR Softech. Depending on your requirement, they will provide you with the actual cost of the development.
How BR Softech can Help You Set Up Your Online Money Transfer Business App?
As you know the demand for online money transfer business is on the up-surge. A wide community of people favors safe, convenient, and effective money transfer apps or software to make the transaction. However, the creation of such money transfer business apps requires careful planning, knowledge, and an expert team of developers.
Find highly skilled money transfer app & web developers at BR Softech who don’t back down from a challenge and can handle the complexity of the development with professionalism. Feel free to reach out to us anytime Get in Touch