Singapore Patent No. 164153 <ul><li>The invention will allow a consumer to purchase anything sold online at a discount, by matching the consumer with a credit cardholder who needs cash. The credit cardholder will make a purchase for the consumer using his credit card, and in exchange, the consumer will make a cash transfer to the cardholder that is less than the price paid by the credit cardholder to pay for the Consumer’s chosen transaction. </li></ul><ul><li>Using the invention the consumer receives an item he wants at a discount (i.e. for the amount transferred to the cardholder), and the cardholder receives cash at his credit card’s purchase interest rate instead of the card’s higher “cash advance” rate. Further, the cardholder may be able to receive the cash at a cost lower than his credit card’s minimum cash transaction fee, when the difference between the cash transferred to the cardholder and credit card purchase is less than the credit card’s minimum transaction fee. </li></ul><ul><li>The licensee earns a commission on funds transferred to the cardholder. Other fees (e.g. membership fee) may be charged to both the consumer and cardholder. </li></ul>
Pay Flow Sequence <ul><li>Legend </li></ul>Information Value Licensee 1. 2. Consumer Consumer Online Merchant Online Merchant Credit Cardholder Credit Cardholder Item Info, Terms, and $ transfer Agreement on Terms
Pay Flow Sequence Continued <ul><li>3. </li></ul>5. 4. Consumer Consumer Consumer Online Merchant Online Merchant Online Merchant Credit Cardholder Credit Cardholder Credit Cardholder Cardholder pays for item using credit card Item Ships The Licensee, after confirming payment, transfers $ < than credit card purchase to Credit Cardholder
Pay Flow Sequence Continued <ul><li>6. </li></ul>Consumer Credit Cardholder Online Merchant The Licensee remits a portion of the money deposited back to the consumer, and keeps a portion for itself.
Market <ul><li>Stage 1: Pay Day Loan Customers online that have *Credit Cards. </li></ul>Pay Day Loan Customers Credit Cardholders *57% have a major credit card. Est. Over 40 Billion in payday loans annually. Source “Community Financial Services Association of America” (CFSA), www.cfsa.net
Market <ul><li>Stage 2: Credit Cardholder’s online who want a loan. </li></ul><ul><li>Proxy Number = “cash advance” credit card transactions. </li></ul>Loan Seekers Credit Cardholders Online
Marketing/Distribution <ul><li>Create a pool of potential borrowers (credit cardholders) from payday loan customers, by offering loans for less than what they are currently paying. </li></ul><ul><li>Advertise that by using Licensee’s pay services, you can “Buy anything online for less”. </li></ul><ul><li>Establish consumer accounts to make online payments. When a consumer wants to make a purchase – Licensee will auction out the “purchase price” to credit cardholders who want a loan, and match consumers with cardholder/borrowers. </li></ul><ul><li>Online merchants will accept payments using Licensee’s payment service, because purchases will operate like a regular online credit card purchase. When a consumer’s purchase price is not matched with a cardholder’s bid, the purchase can be paid for by an EFT, resulting in a greater payout to the online merchant. </li></ul>