Easy-to-use mobile app offering a follow-up service of off-line cash exchanges/short-term peer-to-peer microcredit within communities of mutually-trusted people, with real-time clearing of mutual obligations and designated-time direct-debit net settlement.

1. Project

2. Vision
Easy-to-use mobile app offering a follow-up service
of off-line cash exchanges/short-term peer-to-peer
microcredit within communities of mutually-trusted
people, with real-time clearing of mutual
obligations and designated-time direct-debit net
settlement

3. Principle
Within a circle of trusted friends, there
are often off-line exchanges of cash
Punctual Man, I’m short of cash –can
illiquidity you advance me?
OK guys, let’s not split hairs
Convenience here, I’ll foot the bill, you’ll
pay me back later
Wouldn’t it be great to have a system to keep track of these
exchanges and automatically settle mutual imbalances?

4. People choose friends and form circles of
mutually trusted people
1 existing social networks
Pick up trusted friends from
2 Import…
3 mutually trusted friends
Each circle is composed of
A’s Facebook Friends
• B• R Circle 1
• C• D
A C Circle 2
B’s Facebook Friends
• A • R
• C• J D
B
C’s Facebook Friends E
• A  • E  • F
• B  • D
F
D’s Facebook Friends G
• C• F  • Y Circle 3
• E• X
Note: C and F happen to belong to two
Etc. different circles

5. Friends make off-line exchanges of money
To whom did you just hand
out money?

6. Notifying
Hey. Just handed
9.7 you
$
= 5.3 + 3.4 + 1
0
Can you
Salma
confirm?

7. Acknowledging
On Salma’s phone…
The system records the
transaction and
recognizes an obligation
from Salma to You
Push notification
[Name of platform]
Hey. Just handed you Other
9.7$ You mutual
Can you confirm?
friend
YES NO 9.7
Salma

8. Within a circle, mutual obligations are centralized and
cleared in real time
Time Event Social graph Real-time clearing per circle
0 A D A C F C F
C
F G
B E B E D G
1 • A hands 3 to B A C F -1 C +2 F
A D +3
• E hands 1 to C C
• F hands 2 to G 3 1 -3
F G -2
E 2 B E +1 D G
B
2 • B hands 2 to C A C F -1 C +2 F
A C D +3
-2
3 1 -1
2 F G -2
E 2 B E +1 D G
B
3 • E hands 5 to D A C F -3 -1 C +2 F
• E hands 3 to F A C D +3
5 -2
3 -1 -5
1 G -2
2
B E 3 F
2 B E +9 D G
4 • C hands 4 to A A C F -3 -1 C +2 F
A 4 C D -1
5 +2
3 -1 -5
1 G -2
2
B E 3 F
2 B E +9 D G

9. At a designated time, the system automatically settles
the mutual obligations per circle
Circle 1 Circle 2 Circle 3
A -1 +2 C F -3 -1 C +2 F
-1 +9 -5
-2
B E D G
C is net creditor in circle 1: +2 C is net debitor in circle 2: -1
No cross-circle clearing possible to avoid situation where a net creditor’s refund depends on the
solvability/liquidity of someone n degrees of trust away
Direct debit agreement
When subscribing to the platform, users agree to a direct debit framework whereby they
authorize the payee (the platform) to collect the amount due directly from the payer’s account.
Settlement
At settlement time, the platform debits the net debitors’ bank accounts and makes money
transfers to the net creditors

10. Settling
Monthly settlement… 4
Collects amount due
7
Money transfer
Sends amount due 2
Creditor-bank direct debit
Net debitor’s Platform’s Net creditor’s
agreement (“contract”)
bank bank bank
Sends Credits Orders
Debits net In other words, it’s a system of
amount platform’s money Net creditor’s
debitor’s bank short-term,account transfer
due peer-to-peer bank account is
account
3 1 microcredit 6
5 refunded
8
Platform-debitor direct debit
Net debitor agreement (“mandate”) Platform Net creditor
Owes to
Lends to
Circle 1
• A’s account is debited by 1
A -1 +2 C
• B’s account is debited by 1
-1 • C’s account is credited by 2
B

11. Weaknesses
1. Risk of counterparty illiquidity/insolvability
 But, hey: - They’re small amounts
- They’re friends/trusted people
2. Business model easily reproducible
 But, hey, which business model is not?
3. What if off-line pre-DTNS* settlement?
 It’s just like any other loan –just don’t forget to notify
it on the platform
4. Won’t I look like a skinflint?
* Designated-Time Net Settlement

12. Appendix

13. B2C SEPA Direct Debit Mandate – Template
Mandatory fields
 Unique mandate reference
 Name, address, postal code, country of residence of debtor
 Debtor’s IBAN number
 BIC code debtor bank
 Creditor company name
 Creditor’s identifier
 Address, postal code, country of the creditor
 Type of payment
 Contract Reference
 Signature place and time and signatures
Creditor can decide on the format
The dematerialised Mandate-related information is
transmitted by the Creditor Bank to the Debtor
Bank as part of each Collection, in one single flow