2. WHO WE ARE
Tracopay provides financial institutions with
proprietary mobile payment technology to enable
their clients to securely make everyday micropayments in a way that is faster and more
convenient than using cash
3. MARKET OPPORTUNITY
•
Mobile users in emerging markets are already using their mobile phones
to make person-to-person money transfers.
•
However, the mobile payment solutions in existence are cumbersome and
time consuming when used to make merchant payments (only 0.6% of the
value transacted through mobile payment platforms in emerging markets in
2012 was attributed to merchant payments).
•
What if we enabled these users to securely make merchant payments with
ease, speed and convenience? We will be able to monetize the over 90%
of everyday micropayments done with cash.
4. TRACOPAY’S SOLUTION
•
Tracopay’s mobile micropayment solution is easy-to-use and fast–It
does not involve numerous and cumbersome steps and keying in of ‘till
numbers’. Confirmation of transactions is instantaneous.
•
The solution can inexpensively and conveniently be used to make
payments in both formal and informal business settings.
•
Users of the solution will have a ready and convenient low-cost access
to funds like in the use of debit cards.
•
The solution does not tie users to a single network—A user can
conveniently and inexpensively make cross network mobile money
transactions.
•
Users can make payments for goods and services even if the mobile
network is down or experiencing delays.
•
Users with feature or smart phones can use the mobile payment
solution (everyone can use it).
5. SALES AND MARKETING
• Tracopay’s mobile payment will be channeled through
banks thus leveraging on their existing customer base and
infrastructure/resources to distribute and advertise the
solution.
• Most users in emerging markets are familiar with personto-person transfers thus we will exploit this familiarity as
an anchor to introduce consumers to Tracopay’s solution.
• We will position ourselves as a low cost payments solution
provider that enables users to conveniently and intuitively
make all and any payment(s).
• Tracopay will penetrate the market easily and quickly
since there are no adoption costs associated with the
mobile payment solution
6. COMPETITION
We will enable banks to out-compete Mobile Network Operators
(MNOs) and to dominate the mobile payments market, since:
We facilitate everyday micropayments with ease and speed
unlike MNO micropayment services which are cumbersome
and time consuming.
We offer all payment services offered by MNOs but at a
lower cost since our revenue base is larger.
Our micropayment solution is able to penetrate market
segments that MNO micropayment services cannot i.e.
public sector transportation, street merchandise vendors and
other small scale informal businesses.
There is no need for mobile agents thus users do not need to
spend time to make the occasional trips to agent outlets or
incur costs to cash-out.
Tracopay provides banks with the tools to compete with
MNOs. Banks will earn 40% of the transaction revenue
generated in Tracopay’s payment ecosystem—A revenue
stream banks will be ready to defend.
7. BUSINESS MODEL
•
Tracopay has a diversified income stream: i) Micropayments-1% of the
transaction amount charged to consumers and 1% charged to merchants
ii) Fund remittances-simple graduating scale iii) Bill Payment-flat fee iv)
Online Payment-flat processing fee.
•
The main revenue stream for Tracopay will be from licensing its
proprietary technology to financial institutions around the world. Tracopay
expects to earn a minimum of 5% of the revenue its licensees make from
the payment innovation.
•
Tracopay will operate in Kenya for one to two years. It will then license its
proprietary technology to banks in emerging markets—Nigeria, South
Africa, Brazil, Mexico, India and China. To penetrate developed markets, it
will consider partnering with Visa or MasterCard.
8. FORECAST-KENYA
Year 1
Year 2
Year 3
Year 4
Year 5
# of Customers
2,283,463
7,449,942
8,269,437
8,449,777
8,634,050
Sales (USD M)
1.89
27.04
78.59
110.67
131.34
Expenses (USD M)
14.73
29.25
58.32
76.72
88.88
EBITDA (USD M)
(12.84)
(2.21)
20.27
33.95
42.46
9. FORECAST-GLOBAL
Year 1
Year 2
Year 3
Year 4
Year 5
# of Customers
2,283,463
7,449,942
Sales (USD M)
1.89
27.04
194.60
2,223.34
5,925.57
Expenses (USD M)
14.73
29.25
58.32
76.72
1,955.11
EBITDA (USD M)
(12.84)
(2.21)
136.28
2,146.63
3,970.45
444,559,516 1,202,768,544 1,512,652,783
10. THE TEAM
•
Samson Mutisya- Chief Executive Officer
Samson has a financial background and has worked as a money market dealer,
equity analyst and also as a micro-finance rating analyst. He has a bachelors in
International Business Administration (magna cum laude), finance concentration.
Currently, he is pursuing an MBA finance.
•
Rodney Ochola-Chief Technology Officer
Rodney is a co-founder of Sicreso, a firm that offers software consultancy
services to SMEs. He has a deep understanding of programming, circuit design,
machine networking and penetration testing. Rodney has a background in
Electronics and Computer Engineering and is currently pursuing a second
degree in Computer Science.
•
Robert Muchiri-Chief Strategy Officer
Robert is also a co-founder of Sicreso. As a self taught trader, he has traded
financial derivatives for over six years. Robert has a bachelors in International
Business Administration (cum laude distinction), marketing concentration.
11. STATUS AND MILESTONES
•
We have created a computer simulation which simulates all aspects of the
payment solution. This proves the solution is feasible.
•
An expert on payment systems from Ehrlich & Fenster (one of the top
patent firms in the world) has evaluated our solution and recommended an
application for seven patents.
•
We have had constructive discussions with Kenya Commercial Bank and
they are awaiting a demo of the solution to make a final decision on being
Tracopay’s developmental partners.
•
Held preliminary talks with IBM, they are interested in a partnership to
create the payment solution. We will engage them once the provisional
patents are secured.
•
Next milestones: 1) Finalize on raising seed funding. 2) Secure provisional
patents. 3) Develop prototype payment solution. 4) Get service
endorsements from banks. 5) Secure Series A funding. 6) Go commercial.
Notes de l'éditeur
We have created a detailed and comprehensive financial model that takes into consideration population, economic growth, individual incomes, inflation and Tracopay’s business parameters. The key assumptions of our model are:To estimate average monthly incomes we use GDP per capita as a proxy.Consumers will gradually increase the proportion of their income that they spend through our payment solution to 50% over a period of 3 years.Reach our peak market share which is 31% of individuals between the age of 15-64 (~1.58 billion customers) after seven years of operation.In our model we make revenue projections for micro-payments and peer-to-peer funds transfer services for our Kenyan operations. For international markets, we make revenue projections for only micro-payments. These are the payment services which we could have a strong basis on which to make projections. It would have been difficult to make revenue projections for international remittances, bulk payments, online payments and bill payments.Globally, our model predicts the everyday micro-payment market to be worth USD 41.6 trillion dollars in 2014. This market will grow at 7% per year given current population and economic growth rates. This assumes GDP capita as the average income for individuals and a savings rate of 20% which is the global average.For Kenya, the everyday micro-payment market will be worth KES 1.81 trillion (USD 20.85 billion) in 2014 and it will grow by 4% per year given current population and economic growth rates. This assumes GDP capita as the average income for individuals and a savings rate of 4% which was the household savings for the year 2012.
We have created a detailed and comprehensive financial model that takes into consideration population, economic growth, individual incomes, inflation and Tracopay’s business parameters. The key assumptions of our model are:To estimate average monthly incomes we use GDP per capita as a proxy.Consumers will gradually increase the proportion of their income that they spend through our payment solution to 50% over a period of 3 years.Reach our peak market share which is 31% of individuals between the age of 15-64 (~1.58 billion customers) after seven years of operation.In our model we make revenue projections for micro-payments and peer-to-peer funds transfer services for our Kenyan operations. For international markets, we make revenue projections for only micro-payments. These are the payment services which we could have a strong basis on which to make projections. It would have been difficult to make revenue projections for international remittances, bulk payments, online payments and bill payments.Globally, our model predicts the everyday micro-payment market to be worth USD 41.6 trillion dollars in 2014. This market will grow at 7% per year given current population and economic growth rates. This assumes GDP capita as the average income for individuals and a savings rate of 20% which is the global average.For Kenya, the everyday micro-payment market will be worth KES 1.81 trillion (USD 20.85 billion) in 2014 and it will grow by 4% per year given current population and economic growth rates. This assumes GDP capita as the average income for individuals and a savings rate of 4% which was the household savings for the year 2012.