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Tom Meredith [email protected]
Winner Harvard Business School New Venture ContestSouth East Region
“Saving Millions of Immigrants Billions in Money Transfer Fees”
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Table of Contents
o FREE Money Transfer Introduction
o Global MasterCard Contract
o Problems- High Fees, Difficult Cash Pick-Up
o Solution- Instant Money Token (IMT)
o Marketing- Customer Acquisition Strategy
o Competitive Advantages
o Revenue/Profit Model and Analysis
o Financial Projections/Capital Required
o Experienced Management Team
o Exit Strategy- VISA or MasterCard?
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P2P Cash Introduction
P2P Enables Immigrants to Send Cash Home to their Families for Free
Cash
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P2P Cash Summary
Target Market - Immigrants Sending over $600 Billion Home per year Globally.
P2P Nets ~ 1% of an average $500 transaction with a Customer Acquisition Cost of $15
- 3 month Payback
Value of P2P for a Strategic Acquirer- $1 Billion in 2-3 years
P2P has Revenue TODAY, plus the Global partners and management team to capitalize on this opportunity
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Free Global Money Transfer
“Saving Millions of Immigrants Billions in Money Transfer Fees”
P2P Cash is a “Free” Western Union, delivering Free Money Transfers directly to Billions of accounts using patent-pending digital currency technology.
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Recent Global Traction
Global Partners: MasterCard & SWIFT-Cash Delivery to 1.2 Billion Bank/Mobile
Wallets and 3 Billion SWIFT Bank Accounts
P2P: Top-10 SWIFT Global Start Up past 2 Years
Live in Kenya – Largest Mobile Wallet Base
Vietnam Launch – Top-5 US Transfer Market
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Expert/Customer Testimonials
“P2P’s Instant Money Token is poised to potentially disrupt the global payment system”H. West RichardsExecutive Director American Transaction Processors Coalition
“I just wanted to say thank you very much for your great service. My brother and I have been transferring money to Equity bank in Kenya for the last one month and we are very happy with the instant service at ZERO fee. I will definitely recommend my family and friends to get on board. Thank you again for your great service.”Peter N. - P2P Cash Customer
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Money Transfer Problems
Transferring Money is:
Time ConsumingVery Expensive
$50 Billion
10% Fee on $500 Billion transferred annually
Can take a day to get to Western Union
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Digital Currency Solution
IMT
• Cash Sent Directly to Mom’s Bank or Mobile Account using Digital Currency (IMT*)
• Globally Cleared via SWIFT & MasterCard• Free, Instant, Secure, Convenient
Instant Money Token
* Instant Money Token (IMT) - Patent Pending
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Subscriber Acquisition
Total Addressable Market: 6 Billion CellphonesP2P Currently Covers 50%
Focus: Top 5 US Destinations = 50% Market Mexico, India, China, Vietnam, Philippines
Subscriber Acquisition Cost = $15(50/50 Blend: Social Media@$10 + Affiliate@$20)
Subscriber ROI= 2,000%(5 Years @ $60/year Revenue)
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Competitive Advantages
FREE - Best Price PointDiscount Competitors (TransferWise/WorldRemit) Charge ~ 20-50% of Western Union
Most ConvenientP2P Deposits Directly into:
2 Billion Bank Accounts (SWIFT)1.2 Billion Bank/Mobile Accounts (MasterCard)
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Competitive Advantages
*- Patent Pending**Potential MasterCard Locations
IMTs WU/MG TransferWise
User Transfer Fees Zero 10% 2-5%
Direct Mobile Wallet Deposit Yes Limited No
Secure Token Technology Yes* No No
Integrated Mobile Wallet Yes No No
Retail Locations* 26M** 0.5M No
Pre-Paid Mobile Top Ups Yes No No
White Label Mobile Wallet Yes No No
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Revenue/Profit Model
Spread2-6%
Partners
P2P
P2P Buys Currency at Wholesale Bank Rate, Delivers to Recipient at Retail Rate
Wholesale/Retail Currency Spread is 2-6%, Varies Country to Country
P2P Splits Currency Spread 50/50 with Bank and Distribution Partners
P2P Nets ~ 1%
Revenue
BuySell
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Financial Projections
20152016
20172018
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
Profit $M
Revenue $M
2015 2016 2017 2018
Revenue ($M) $1.9 $36 $114 $327
Profit ($M) $(1.6) $25 $88 $262
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Cash Raised and Required
• Raised to Date – $1.7M Generating Revenue • $2.5M Series A Term Sheet in Hand
• Valuing P2P @ $30M• Use of Funds
• 50% SEM, Digital and Affiliate Marketing• Top 5 Markets: Mexico, India, China,
Philippines, Vietnam• Future Funding- 18-36 months
• $25-30M Required to Create Global Brand• Compete with Competition
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World Class Team
•Tom Meredith, CEOFinancial Services/Telecom Entrepreneur, MBA Harvard, Stanford Engineer
•Morris Mwanga, CTOBuilt Kenya’s Largest Currency Exchange, CISSP Security Certified
•Kern Lewis, VP Marketing American Express, World Savings Bank, Stanford, MBA Harvard
•Peter Carruthers, Director FX Operations25 years FX Risk Mgmt Expert: Citi, Credit-Suisse, RBS; Fordham MBA
•Donald Chapman, VP Business DevelopmentFinancial Services Technology Executive, MBA Babson College
Advisory Board•Leonard Schrank: Former CEO SWIFT
•Brian Smith: Former General Counsel MasterCard, Office Comptroller and Currency (OCC)
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Subscriber Marketing Goals
Subscriber Marketing Goals
Year 1- Cash Flow Breakeven 75K Subscribers
Year 2- 10 Countries with 600K Subscribers
Year 3- 63 Countries with 2.5M Subscribers
Year 4-100 Countries with 4.6M Subscribers
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Subscriber Based Valuation
$1.8B Subscriber Based Valuation:
4.6M Subscribers @ $400*/Subscriber$1.8 Billion Valuation
*Valuation per Subscriber
$300- Cash Transfer Revenue Value $100- “BIG Data” Value- Micro-Insurance/Finance Total Subscriber Value= $400
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EBITDA Valuation Analysis
EBITDA* Valuation Analysis
P2P Cash Year 4 EBITDA = $262 MX
High Growth Company Earnings Multiple = 15
Estimated Valuation Year 4 = $3.9 Billion
*Earnings before Income Taxes, Depreciation and Amortization
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$2 - 4 Billion Exit Strategy
Buyout Valuation Range:
Subscriber Model $400 @ 4.6M Subs= $1.8 B
Hi Growth EBIDTA Model: 15 @ $262M= $3.9 B
Potential Acquirers:Card Issuer Networks: MasterCard, VISA, DiscoverMoney Transfer: Western Union, MoneyGram, RIAProcessors: First Data, Global Payments, Elavon
Banks: Citi, Wells Fargo, Bank of America, HSBC, etc.
Tom Meredith [email protected]
Winner Harvard Business School New Venture ContestSouth East Region
“Saving Millions of Immigrants Billions in Money Transfer Fees”
