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Harvard Business School New Venture Contest
Representing South East Region
“Saving Millions of Immigrants
Billions in Money Transfer Fees”
2
P2P Cash Table of Contents
o FREE Money Transfer Introduction, Agenda Summary
o Traction/Testimonials- Global MasterCard Contract
o Problems- High Fees, Difficult Cash Pick-Up
o Solution- P2P’s 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?
3
P2P Cash Introduction
P2P Enables Immigrants to Send Cash Home to
their Families for Free
Cash
4
P2P Cash Agenda
P2P Target Market - Immigrants Sending over $500
Billion Home per year Globally.
P2P Nets ~ 1% of an average $500 transaction with a
Customer Acquisition Cost of $15; a 3 month Payback
We expect the Value of P2P for a Strategic Acquirer to
be over $1 Billion in 2-3 years
P2P has Revenue TODAY, plus the Global partners
and management team to capitalize on this opportunity
5
Free Global Money Transfer
“Saving Millions of
Immigrants Billions
in Money Transfer Fees”
P2P Cash is a “Free” Western Union,
delivering free global, mobile money
transfers using patent-pending digital
currency.
6
Recent Global Traction
Global Partners MasterCard & SWIFT
-Clear Cash Delivery to 3 Billion Bank Accounts
and 1.2 Billion Mobile Wallets in 63 Countries
P2P: Top-10 SWIFT Global Start Up past 2 Years
Live in Kenya – Largest Mobile Wallet Base
Vietnam Launch 4/15 – Top-5 US Transfer Market
7
Expert/Customer Testimonials
“P2P’s Instant Money Token is poised to potentially disrupt the
global payment system”
H. West Richards
Executive 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
8
Money Transfer Problems
Transferring Money is:
Time ConsumingVery Expensive
$50
Billion10% Fee on $500 Billion
transferred annually
Can take a day to get
to Western Union
9
Digital Currency Solution
IMT
• Cash Sent Directly to Mom’s Bank or Mobile Account
using Digital Currency (IMT*)
• Cleared Globally via SWIFT & MasterCard
• Free, Instant, Secure, Convenient
Instant Money Token
* Instant Money Token (IMT) - Patent Pending
10
Subscriber Acquisition
Total Addressable Market: 6 Billion CellphonesP2P Covers 50% (3+ Billion w/ SWIFT)
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)
11
Competitive Advantages
Best Price Point- FREE
Discount Competitors (TransferWise/WorldRemit)
Charge ~ 40% of Western Union
P2P Most Convenient
P2P Deposits Directly into:
2 Billion Bank Accounts (SWIFT)
1.2 Billion Mobile Accounts (MasterCard)
12
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
13
Revenue/Profit Model
Spread
2-6%
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
14
Financial Projections
Profit $M
Revenue $M$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
20152016
20172018
Profit $M
Revenue $M
2015 2016 2017 2018
Revenue ($M) $2.4 $23.2 $47.5 $135.0
Profit ($M) $0.8 $16.4 $37.3 $115.0
15
Profit /Valuation Analysis
First Year- $1.2M Marketing Spend Acquires 60,000
Subscribers @ $20*/ Acquisition, Sending $500/month
Each Sub Generates $60/Year Gross Profit or $3.6 M
Minus Fixed P2P Overhead and Salaries~ $2.5M
First Year Profit = $1M +/-
Valuation per Subscriber**
$300- Cash Transfer Revenue Value
$100- “BIG Data” Value- Micro-Insurance/Finance Offers
Total Subscriber Value= $400
*Worse Case ** Based on 5 Year Duration
16
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- 18-24 months
• $50M Required to Create Global Brand
• Compete with Competition
17
World Class Team
• Tom Meredith, CEO
Financial Services/Telecom Entrepreneur, MBA Harvard, Stanford Engineer
• Morris Mwanga, CTO
Built Kenya’s Largest Currency Exchange, CISSP Security Certified
• Kern Lewis, VP Marketing
American Express, World Savings Bank, Stanford, MBA Harvard
• Peter Carruthers, Director FX Operations
25 years FX Risk Mgmt Expert: Citi, Credit-Suisse, RBS; Fordham MBA
• Donald Chapman, VP Business Development
Financial Services Technology Executive, MBA Babson College
Advisory Board
• Leonard Schrank: Former CEO SWIFT
• Brian Smith: Former General Counsel MasterCard, Office Comptroller and
Currency (OCC)
18
Goals and Exit Strategy
Goals
Year 1- Cash Flow Breakeven 60K Subscribers
Year 2- 10 Countries with 600K Subscribers
Year 3- 63 Countries with 2.5M Subscribers
$1 Billion Buyout Valuation @ $400/Subscriber
Potential Acquirers:
Card Issuer Networks: MasterCard, VISA, Discover
Money Transfer: Western Union, MoneyGram, RIA
Processors: First Data, Global Payments, Elavon
Banks: Citi, Wells Fargo, Bank of America, HSBC, etc.
Harvard Business School New Venture Contest
Representing South East Region
“Saving Millions of Immigrants
Billions in Money Transfer Fees”
