Credencial Payments, an international company that implements technological and payment method processing solutions, has everything a Fintech may need to develop their business covered. That includes, among others, the development of digital wallets, integrations with all suppliers, hosting the app in application stores, security, and business networking.

“The pandemic reveals to us the acceleration of digitalization, that people who did not use digital media before now do so, and those who barely used them have increase the frequently with which they do so. In this context, the market remains attractive for the generation and launching of new projects. This is valid for digital services of banks, Fintechs and e-commerce.” explained Credencial’s Manager of Marketing and New Businesses, Jorge Larravide.

“In this sense, competition is growing, and the more mature apps, with greater functions, better offers/discounts and better user experience win.” he added.

A digital wallet, at its most basic, is a Mobile Application that has as a main goal to operate a digital money payment method in place of physical money.

“Following the analogy, a “leather” wallet may contain cash, plastic debit or credit cards, credentials, identification documents; a virtual wallet, in concept, allows to group a person’s diverse payment methods: bank accounts, digital accounts, credit cards.” Commented the Credencial executive.

Within the digital wallet’s basic function are sending money between individuals (P2P9 and the payment of purchases at businesses, for example, by scanning the merchant’s QR code.

There are two types of Digital Wallets:

1. Digital Wallets linked to bank account, of the CBU type (“Clave Bancaria Uniforme”, “Single Bank Code” in Spanish).
2. Digital Wallets linked to Fintech digital accounts, of the CVU type (“Clave Virtual Uniforme”, “Single Virtual Code” in Spanish).

The three steps to launch your own Fintech

For Larravide, who from Credencial can observe the back end of Fintechs, if an entrepreneur wishes to launch a start-up with the goal of having their own wallet, the steps would be:

1. Identify the business model: What kind of digital wallet to I want to develop, what market am I going to focus on, what resources do I have for the project and how do I monetize it?
2. Develop the App: Here there are at least two options: a) Develop everything inhouse hiring product and mobile development specialists or b) Acquire a tested solution, that is, search for a supplier of customized wallets like Credencial to put “my brand” facing the market and in that way accelerate the time to market.
3. Payment Methods Ecosystem: the digital wallet must be inserted in the Digital Payments Ecosystem in order to be able to grow. This has several implications, such as the integrations with other services that expand the value proposition, for example, the vast majority of users will value the wallet allowing them to pay taxes, recharge their transport card, recharge mobile phone credit, etc. Many of these services are provided by other companies, and the wallet could connect to them. The other relevant point is for there to be a business network that accepts payment through this wallet (payment method acceptance). These systems can be closed (my wallet’s brand can only send money to or make purchases in businesses of the same brand) or they could have an open model that allows the interaction of diverse wallets with diverse businesses all with different wallet brands.

“In order to develop an innovative product, the combination of novel and disruptive ideas, technology, financing and talent is required to carry it out. I believe that Argentina, in its region’s context, has everything to develop the most innovative projects in payment methods technology and from Credencial we aim to leverage those developments”, concluded Larravide.