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idea📲end-to-end custom business solutions
specializing in enhanced iOS mobile performance
mobile enterprise management
© 2274 Inc. Intellectual Property All rights reserved
Elevator Pitch
• Mobile money is first and foremost a transaction-driven platform,
with cost and revenues tied to the movement of value.
• According to Ernest and Young, the Mobile Money Revolution is
here. We want to position our brand as the gold standard of mobile
money ecosystems.
• Transactions rule the world. We provide the rails on which to build
simple mobile commerce solutions.
© 2274 Inc. Intellectual Property All rights reserved
Problem & Value Proposition
• Consumers will soon expect mobile money to be accepted almost
everywhere. According to Mung Ki Woo, Executive Vice President of
Digital Platforms at Master Card 85% of global transactions = cash.
• 1% change in how transactions are conducted is worth billions.
© 2274 Inc. Intellectual Property All rights reserved
All mobile money deployments strive to encourage value to circulate on
their platforms. Value moving between different accounts hosted on the
same platform does not create transaction cost for the provider, and
can generate pure margins (all revenue and no cost.)
We aim to maximize digital transactions, while minimizing cash-based
transactions
© 2274 Inc. Intellectual Property All rights reserved
INCOMING
TRANSACTIONS
CIRCULATING
VALUE
OUTGOING
TRANSACTIONS
CASH IN
DISBURSEMENTS
A2A (BANK-TO-WALLET /
CROSS-NET P2P)
INTERNATIONAL
REMITTANCES
P2P
(ON-NET)
PAYMENTS
(C2B,B2B)
CASH OUT
AIRTIME
PURCHASES
BILL PAYMENTS VOUCHERS
A2A (BANK-TO-WALLET /
CROSS-NET P2P)
INTERNATIONAL
REMITTANCES
2274
™
© 2274 Inc. Intellectual Property All rights reserved
TRANSACTION
MODEL
TRANSACTION
COST
TRANSACTION
REVENUE
NOTES AND ASSUMPTIONS
INCOMING TRANSACTIONS
Cash-In
Bulk Payments (disbursements)
International remittances
A2A (bank-to-wallet)
A2A (P2P cross-net)
0.7%
0.0%
0.5%
0.4%
0.4%
0.0%
0.5%
0.0%
0.0%
0.0%
• Although agent commission for cash-in are usually tiered, 0.7% is an estimated average cost. Cash-in is
usually offered free of charge
• Cost of offering bulk payments is captured in non-transactions costs (mainly set-up cost) Yield revenues
from the fees charged to businesses / governments disbursements
• Incoming international remittance tend to be free for recipients.. The Operator incurs a cost from the partner
international money transfer entity. 0.5% estimated average cost
• Transferring value from a bank account is often free for customers. The operator incurs a cost from the
financial institution hosting the incoming funds.
• Transferring value from an alternate mobile account is often free for customers . The operator, however
incurs a cost from the mobile money provider hosting the incoming funds
CIRCULATING VALUE
P2P (on-net)
Payments (C2B, B2B)
0.0%
0.0%
1.5%
1.5%
• On-net P2P does not result in transaction cost to operators. Transaction revenue depends on pricing
strategy, but can be in the range of 1-1.5% of value transferred.
• C2B or B2B does not result in transaction costs for operators; the merchant or business usually pays
roughly 1.5% of the value transferred.
© 2274 Inc. Intellectual Property All rights reserved
TRANSACTION
MODEL
TRANSACTION
COST
TRANSACTION
REVENUE
NOTES AND ASSUMPTIONS
OUTGOING TRANSACTIONS
P2P (off-net)
Bill payments
Airtime purchases
International remittances
A2A (bank-to-wallet)
A2A (P2P cross-net)
Cash-out
1.0%
0.0%
0.0%
0.0%
0.0%
0.5%
1.0%
3.5%
0.5%
0.0%
5.0%
0.4%
2.0%
2.0%
• Off-net P2P (or vouchers) incur a transaction cost of 1% for operators on average, but usually also yield
transaction revenues higher than on-net P2P.
• Bill payments do not result in transaction costs. Transaction revenue usually come directly from the biller
• Airtime purchases do not incur transaction costs. Mobile money providers can be considered virtual airtime
distributors, but they do not incur revenue from mobile operator
• Outgoing international remittance do not result in transaction cost. However, the sender usually pays a relatively
high fee to transfer value internationally.
• Transferring value from the mobile wallet to a bank account usually does not result in transaction cost for
operators. A fee is sometimes charged to customers.
• Transferring value from the mobile wallet to an alternate mobile account may result in transaction costs for
operators/ A fee is sometimes charged to customers.
• Although agent commissions for cash-out are usually tiered. 1% is an estimated average cost. Customers ar
usually required to pay for this service, yielding transaction revenue for the operator.
© 2274 Inc. Intellectual Property All rights reserved
Revenue Model
• Ensure every line of service either breaks even or yield profits.
• Online-Transaction fees for merchant services. The US industry
standard (Square = 2.75%)
• Remittance of 100 USD on average using mobile money = 4 USD
• Exclusive Global Syndication Rights of Digital Media 22%-30%
• Global Production Incentives
© 2274 Inc. Intellectual Property All rights reserved
START-UP
EARLY STAGE
(1-2 YEARS)
HIGH GROWTH,
REMITTANCE-BASED
(4-5 YEARS)
MATURE, ECOSYSTEM-
BASED
(>5 YEARS)
DESCRIPTION
• Customer acquisition phase
• Provider focused on generating market
awareness
• Priority is basic foundation of mobile money
• At least 15% GSM base active mobile
money users (30 day)
• Network effects kicking-in
• One predominant use-case (e.g. P2P, bill
pay)
• At least 30% of GEM base active mobile
money users (30 day)
• High growth of bill payment and bulk
payment transactions
PROFITABILITY METRICS
• Highest cost categories agent commissions for
registration, agent on-boarding, and marketing
• Very little revenue at this point (>0.5% of total
MNO revenue)
• Negative net margins.
• Highest cost category agent
commissions
• revenue coming primarily from P2P and
cash-out
• Mobile money revenue approx. 5% of
total MNO revenue
• Modest, positive net margins
• Agent commissions compressed
• Revenue sources more diversified, less
from cash-out
• Mobile money revenue >15% of total
MNO revenue
• Healthy net margins
© 2274 Inc. Intellectual Property All rights reserved
DigitalMediaStreamingService Artist Distribution
2274.tv* 77 23
tidal.com 75 25
itunes.com 70 30
YouTube 55 45
* Independent Artist with revenues < $1M USD
Jay Z streaming service
Apple
Google
© 2274 Inc. Intellectual Property All rights reserved
Target Market Distribution
• Smartphone = power of computer connected to the internet in
every hand cannot be understated.
• we design the rails based on “2274” being a natural progression to
mix commerce and payments into the realm of ubiquitous
computing and the Internet of Things.
© 2274 Inc. Intellectual Property All rights reserved
Product Service Innovation
• Once connected, a single touch automatically places your order
and 2274 sends an order alert to your phone.
• Mobile Enterprise Management for Media & Entertainment
Professionals
• Paperless Production Processes (Green production services)
• Viral Expansion Loop based on financial inclusion outreach
• Near-real-time data & analytics on TheGlobalCurrency™
© 2274 Inc. Intellectual Property All rights reserved
The Ask
Seeking venture capital in
the range of $5M-$25M to
acquire customers, build
out a global distribution
network, and invest in the
system for the next three
years.
© 2274 Inc. Intellectual Property All rights reserved
Commercial Operating Network & IT Other
© 2274 Inc. Intellectual Property All rights reserved
COMMERCIAL COST
Customer acquisition cost (AC)
Agent and merchant AC
Shop and agent management cost
Marketing
• Agent Commissions, trade
• Internal or External workforce to on-board agents and merchants
• Internal or External workforce to manage agents + direct distribution cost
• ATL and BTL campaigns to promote service
OPERATING COST
Personnel
Technology
Fraud and settlement
General and administrative
Customer Care
• dedicated mobile money staff, excl. field marketing staff
• Platform maintenance and operating cost, energy, connectivity license fee
• Fraud, settlement, revenue assurance
• Procurement and supply chain, finance, management real estate
• Call center, processing and back office
NETWORK & IT Platform • Platform acquisition and evolution, set-up with aggregator
OTHER Shops and offices • Other capital expenditures required to set-up or improve the business
2 2 7 4 C o s t S t r u c t u r e
Competitive Matrix / Advantages
• 2274 becomes the ultimate endpoint for the notion of currency
• Eventually payments may become invisible. Instead of handing over
cash or card to person or machine, our mere presence will be able
to conduct a transaction for whatever service we desire. (2274 +
Apple Watch = "⌚ my C.A.S.H.™ )
• Our agents represent the human interface in the digitalization of
C.A.S.H.™ online
© 2274 Inc. Intellectual Property All rights reserved
Why me
• Statistics show that across the board in technology, entertainment, and
finance, offer a perspective in which 97% of market is consumers.
• Entertainment Industry Professional (Bachelor of Arts in Cinema and
Television with Electronic Media Management specification #CSUN13)
• USC Marshall School of Business, Office of Executive Education
Certificate Financial Success for Diverse Businesses 2013
• Apple Inc. Certified Developer July 2016
© 2274 Inc. Intellectual Property All rights reserved
Global Innovation (GI Plan)

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Global Innovation (GI Plan)

  • 1. idea📲end-to-end custom business solutions specializing in enhanced iOS mobile performance mobile enterprise management © 2274 Inc. Intellectual Property All rights reserved
  • 2. Elevator Pitch • Mobile money is first and foremost a transaction-driven platform, with cost and revenues tied to the movement of value. • According to Ernest and Young, the Mobile Money Revolution is here. We want to position our brand as the gold standard of mobile money ecosystems. • Transactions rule the world. We provide the rails on which to build simple mobile commerce solutions. © 2274 Inc. Intellectual Property All rights reserved
  • 3. Problem & Value Proposition • Consumers will soon expect mobile money to be accepted almost everywhere. According to Mung Ki Woo, Executive Vice President of Digital Platforms at Master Card 85% of global transactions = cash. • 1% change in how transactions are conducted is worth billions. © 2274 Inc. Intellectual Property All rights reserved
  • 4. All mobile money deployments strive to encourage value to circulate on their platforms. Value moving between different accounts hosted on the same platform does not create transaction cost for the provider, and can generate pure margins (all revenue and no cost.) We aim to maximize digital transactions, while minimizing cash-based transactions © 2274 Inc. Intellectual Property All rights reserved
  • 5. INCOMING TRANSACTIONS CIRCULATING VALUE OUTGOING TRANSACTIONS CASH IN DISBURSEMENTS A2A (BANK-TO-WALLET / CROSS-NET P2P) INTERNATIONAL REMITTANCES P2P (ON-NET) PAYMENTS (C2B,B2B) CASH OUT AIRTIME PURCHASES BILL PAYMENTS VOUCHERS A2A (BANK-TO-WALLET / CROSS-NET P2P) INTERNATIONAL REMITTANCES 2274 ™ © 2274 Inc. Intellectual Property All rights reserved
  • 6. TRANSACTION MODEL TRANSACTION COST TRANSACTION REVENUE NOTES AND ASSUMPTIONS INCOMING TRANSACTIONS Cash-In Bulk Payments (disbursements) International remittances A2A (bank-to-wallet) A2A (P2P cross-net) 0.7% 0.0% 0.5% 0.4% 0.4% 0.0% 0.5% 0.0% 0.0% 0.0% • Although agent commission for cash-in are usually tiered, 0.7% is an estimated average cost. Cash-in is usually offered free of charge • Cost of offering bulk payments is captured in non-transactions costs (mainly set-up cost) Yield revenues from the fees charged to businesses / governments disbursements • Incoming international remittance tend to be free for recipients.. The Operator incurs a cost from the partner international money transfer entity. 0.5% estimated average cost • Transferring value from a bank account is often free for customers. The operator incurs a cost from the financial institution hosting the incoming funds. • Transferring value from an alternate mobile account is often free for customers . The operator, however incurs a cost from the mobile money provider hosting the incoming funds CIRCULATING VALUE P2P (on-net) Payments (C2B, B2B) 0.0% 0.0% 1.5% 1.5% • On-net P2P does not result in transaction cost to operators. Transaction revenue depends on pricing strategy, but can be in the range of 1-1.5% of value transferred. • C2B or B2B does not result in transaction costs for operators; the merchant or business usually pays roughly 1.5% of the value transferred. © 2274 Inc. Intellectual Property All rights reserved
  • 7. TRANSACTION MODEL TRANSACTION COST TRANSACTION REVENUE NOTES AND ASSUMPTIONS OUTGOING TRANSACTIONS P2P (off-net) Bill payments Airtime purchases International remittances A2A (bank-to-wallet) A2A (P2P cross-net) Cash-out 1.0% 0.0% 0.0% 0.0% 0.0% 0.5% 1.0% 3.5% 0.5% 0.0% 5.0% 0.4% 2.0% 2.0% • Off-net P2P (or vouchers) incur a transaction cost of 1% for operators on average, but usually also yield transaction revenues higher than on-net P2P. • Bill payments do not result in transaction costs. Transaction revenue usually come directly from the biller • Airtime purchases do not incur transaction costs. Mobile money providers can be considered virtual airtime distributors, but they do not incur revenue from mobile operator • Outgoing international remittance do not result in transaction cost. However, the sender usually pays a relatively high fee to transfer value internationally. • Transferring value from the mobile wallet to a bank account usually does not result in transaction cost for operators. A fee is sometimes charged to customers. • Transferring value from the mobile wallet to an alternate mobile account may result in transaction costs for operators/ A fee is sometimes charged to customers. • Although agent commissions for cash-out are usually tiered. 1% is an estimated average cost. Customers ar usually required to pay for this service, yielding transaction revenue for the operator. © 2274 Inc. Intellectual Property All rights reserved
  • 8. Revenue Model • Ensure every line of service either breaks even or yield profits. • Online-Transaction fees for merchant services. The US industry standard (Square = 2.75%) • Remittance of 100 USD on average using mobile money = 4 USD • Exclusive Global Syndication Rights of Digital Media 22%-30% • Global Production Incentives © 2274 Inc. Intellectual Property All rights reserved
  • 9. START-UP EARLY STAGE (1-2 YEARS) HIGH GROWTH, REMITTANCE-BASED (4-5 YEARS) MATURE, ECOSYSTEM- BASED (>5 YEARS) DESCRIPTION • Customer acquisition phase • Provider focused on generating market awareness • Priority is basic foundation of mobile money • At least 15% GSM base active mobile money users (30 day) • Network effects kicking-in • One predominant use-case (e.g. P2P, bill pay) • At least 30% of GEM base active mobile money users (30 day) • High growth of bill payment and bulk payment transactions PROFITABILITY METRICS • Highest cost categories agent commissions for registration, agent on-boarding, and marketing • Very little revenue at this point (>0.5% of total MNO revenue) • Negative net margins. • Highest cost category agent commissions • revenue coming primarily from P2P and cash-out • Mobile money revenue approx. 5% of total MNO revenue • Modest, positive net margins • Agent commissions compressed • Revenue sources more diversified, less from cash-out • Mobile money revenue >15% of total MNO revenue • Healthy net margins © 2274 Inc. Intellectual Property All rights reserved
  • 10. DigitalMediaStreamingService Artist Distribution 2274.tv* 77 23 tidal.com 75 25 itunes.com 70 30 YouTube 55 45 * Independent Artist with revenues < $1M USD Jay Z streaming service Apple Google © 2274 Inc. Intellectual Property All rights reserved
  • 11. Target Market Distribution • Smartphone = power of computer connected to the internet in every hand cannot be understated. • we design the rails based on “2274” being a natural progression to mix commerce and payments into the realm of ubiquitous computing and the Internet of Things. © 2274 Inc. Intellectual Property All rights reserved
  • 12. Product Service Innovation • Once connected, a single touch automatically places your order and 2274 sends an order alert to your phone. • Mobile Enterprise Management for Media & Entertainment Professionals • Paperless Production Processes (Green production services) • Viral Expansion Loop based on financial inclusion outreach • Near-real-time data & analytics on TheGlobalCurrency™ © 2274 Inc. Intellectual Property All rights reserved
  • 13. The Ask Seeking venture capital in the range of $5M-$25M to acquire customers, build out a global distribution network, and invest in the system for the next three years. © 2274 Inc. Intellectual Property All rights reserved
  • 14. Commercial Operating Network & IT Other © 2274 Inc. Intellectual Property All rights reserved
  • 15. COMMERCIAL COST Customer acquisition cost (AC) Agent and merchant AC Shop and agent management cost Marketing • Agent Commissions, trade • Internal or External workforce to on-board agents and merchants • Internal or External workforce to manage agents + direct distribution cost • ATL and BTL campaigns to promote service OPERATING COST Personnel Technology Fraud and settlement General and administrative Customer Care • dedicated mobile money staff, excl. field marketing staff • Platform maintenance and operating cost, energy, connectivity license fee • Fraud, settlement, revenue assurance • Procurement and supply chain, finance, management real estate • Call center, processing and back office NETWORK & IT Platform • Platform acquisition and evolution, set-up with aggregator OTHER Shops and offices • Other capital expenditures required to set-up or improve the business 2 2 7 4 C o s t S t r u c t u r e
  • 16. Competitive Matrix / Advantages • 2274 becomes the ultimate endpoint for the notion of currency • Eventually payments may become invisible. Instead of handing over cash or card to person or machine, our mere presence will be able to conduct a transaction for whatever service we desire. (2274 + Apple Watch = "⌚ my C.A.S.H.™ ) • Our agents represent the human interface in the digitalization of C.A.S.H.™ online © 2274 Inc. Intellectual Property All rights reserved
  • 17. Why me • Statistics show that across the board in technology, entertainment, and finance, offer a perspective in which 97% of market is consumers. • Entertainment Industry Professional (Bachelor of Arts in Cinema and Television with Electronic Media Management specification #CSUN13) • USC Marshall School of Business, Office of Executive Education Certificate Financial Success for Diverse Businesses 2013 • Apple Inc. Certified Developer July 2016 © 2274 Inc. Intellectual Property All rights reserved