Payment App

How Much Does It Cost To Start A Payment App? (In 2024)

Pat Walls

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Updated: October 8th, 2024

Looking to start a payment app?

But curious about:

how much it costs to start a payment app?
what are the typical payment app startup costs?
or the actual cost of starting payment apps?

Well, we have the data to prove it, supported by real payment apps and how much they actually cost to start.

Let's go over it.

What is the average cost of starting a payment app?

Based on our data reported by actual payment app founders, the average cost of starting a payment app is between $50 and $600,000.

Additionally, our data shows that the the median startup costs for a payment app are around $124K.

Remember, though, not all payment apps are the same - and neither are people's budgets. It's important to distinguish between different levels or types of payment apps

Real World Examples: How much does it cost to start a payment app?

We asked real payment app founders and business owners how much it actually cost to get started?

Here is what they said:

Ryan Scherf

Founder of Payment for Stripe ($60K/month)

"Because we bootstrapped everything and worked in our spare time, we had no costs, only time."

Ryan Scherf is the founder of Payment, an app built on top of the Stripe payment gateway that allows users to collect in-person payments.

Read this case study

Read by 23,570 founders

David Nandwa

Founder of HoneyCoin ($1K/month)

"I initially bet on myself by putting $1,000 of my own money into the business to provide liquidity for instant settlements, it was either this or focusing on raising money first to provide liquidity to our users."

David Nandwa is the founder of HoneyCoin, a payments app that helps creators monetize their audiences and manage cash and crypto all in one place.

Read this case study

Read by 7,578 founders

Austin Mac Nab

Founder of VizyPay ($1.7M/month)

"Joining forces with my neighbor and Managing Partner Frank Pagano and a silent partner, we fully bootstrapped or invested $197K of our own money into VizyPay, with the goal of building programs and services that catered to the needs of small business owners."

Austin Mac Nab is the founder of VizyPay, a FinTech business that started in 2017 providing innovative payment processing solutions to small businesses across rural America.

Read this case study

Read by 8,622 founders

Vladimir Kuiantsev

Founder of Akurateco ($100K/month)

"However, the visionary and mastermind behind the project didn’t abandon the idea, and from 2018 to 2020, his team worked on creating the software and deploying the infrastructure. When the minimum viable product (MVP) was ready, we reconvened and agreed to launch the software into commercial operation."

Vladimir Kuiantsev is the founder of Akurateco, a payment software provider for fintech companies that developed a white-label payment gateway starting in 2020.

Read this case study

Read by 5,404 founders

Jannik Flor Borg

Founder of Factofly ($150K/month)

"Getting to the point of having a product ready enough for launching and a working system probably cost around €50k."

Jannik is the co-founder and CEO of FactoFly, a platform that helps freelancers, side-hustlers, and gig workers manage their business administration.

Read this case study

Read by 3,443 founders

Enjoyed reading these real world examples?

Our platform is full of case studies of successful payment apps that you can learn from.

Starting a payment app - what you should know:

Getting a clear understanding of the nuances involved in starting a payment app can help manage costs effectively.

Licensing and Regulatory Compliance

Ensuring compliance with financial regulations and obtaining the necessary licenses can be expensive and time-consuming. Costs can range from $30,000 to $100,000 depending on your jurisdiction. For instance, in the United States, you'll need licenses in each state you operate, along with potentially federal licenses which can result in higher cumulative costs.

Development Costs

The development expenses for a payment app can vary significantly depending on the complexity and scope of your project. A basic MVP (Minimum Viable Product) could cost you between $50,000 to $150,000. More advanced features like multi-currency support, fraud detection algorithms, and advanced analytics can raise the cost to $300,000 or more.

Security Measures

Implementing strong security measures is non-negotiable and can be costly. Basic SSL/TLS certificates could cost around $100 per year, but investing in comprehensive security protocols, including encryption and real-time fraud monitoring, can range from $20,000 to $50,000 annually. Regular security audits, required to maintain compliance, can add an additional $10,000 to $30,000 per year.

Ongoing Maintenance and Updates

Post-launch, you must allocate funds for continuous maintenance and updates. This includes server costs, which can range from $500 to $5,000 per month depending on your user base and data storage needs. Regular updates to keep the app up-to-date with operating system changes and user feedback can cost $1,000 to $10,000 per month.

Marketing and Customer Acquisition

Acquiring users for your payment app requires a robust marketing strategy. Initial marketing campaigns, including digital ads, influencer partnerships, and promotional offers, may require an initial outlay of $20,000 to $50,000. On-going customer acquisition costs (CAC) can range from $20 to $100 per user, depending on your strategies and market competition.

Carefully planning and budgeting for these facets can help you launch a payment app successfully while managing costs.

Potential Costs of Starting a Payment App

Starting a payment app involves a variety of costs that can range widely depending on the scale, complexity, and region. Below is a detailed breakdown of potential costs.

Category	Description	Estimated Cost (USD)
Domain Registration	Cost for securing a domain name for your app's website.	$10 - $50 per year
Website Hosting	Cost for hosting your website. This can vary based on hosting provider and plan.	$10 - $300 per month
App Development	Costs associated with hiring developers or development agencies.	$50,000 - $250,000+
UI/UX Design	Investment in UI/UX design to ensure a user-friendly interface.	$5,000 - $25,000+
Backend Development	Server-side development for handling user data, transactions, etc.	$30,000 - $150,000+
Security Measures	Costs for implementing SSL, encryption, and other security protocols to safeguard user data.	$1,000 - $10,000+
Compliance & Legal	Ensuring the application meets financial regulations and acquiring necessary licenses.	$10,000 - $50,000+
Payment Gateway Fees	Setting up and integrating payment gateways such as Stripe, PayPal, etc.	$0.30 per transaction + 2.9% fee
Cloud Services	Costs for using cloud service providers like AWS, Google Cloud, or Microsoft Azure.	$500 - $5,000 per month
Third-Party APIs	Fees for utilizing third-party APIs for various functionalities such as geolocation, email, etc.	$100 - $1,000 per month
Marketing & Advertising	Budget for promoting your app through various marketing channels.	$10,000 - $100,000+ per year
Customer Support	Expenses for setting up and managing customer support.	$3,000 - $15,000 per year
Maintenance & Updates	Ongoing costs for updating and maintaining the app post-launch.	$5,000 - $20,000 per year
Miscellaneous Costs	Other potential costs such as office space, utilities, and administrative expenses.	$5,000 - $50,000+