Tracopay provides a mobile payment solution that enables secure micropayments between customers and merchants. Their solution aims to digitize the majority of cash-based micropayments in emerging markets. Tracopay will generate revenue by charging small transaction fees and licensing their proprietary technology to financial institutions globally. They have conducted preliminary market research and technology simulations, discussed partnerships with banks and technology companies, and are seeking seed funding to develop prototypes and secure patents to bring their solution to market.

1. Samson Mutisya
CEO
P.O Box 30333-00100, Nairobi Kenya, ICEA Building, 4th
Floor, Kenyatta Avenue
samson@tracopay.com
+254 722 80 33 84
www.tracopay.com

2. WHO WE ARE
Tracopay provides financial institutions with
proprietary mobile payment technology to enable
their clients to securely make everyday micropayments in a way that is faster and more
convenient than using cash

3. MARKET OPPORTUNITY
•
Mobile users in emerging markets are already using their mobile phones
to make person-to-person money transfers.
•
However, the mobile payment solutions in existence are cumbersome and
time consuming when used to make merchant payments (only 0.6% of the
value transacted through mobile payment platforms in emerging markets in
2012 was attributed to merchant payments).
•
What if we enabled these users to securely make merchant payments with
ease, speed and convenience? We will be able to monetize the over 90%
of everyday micropayments done with cash.

4. TRACOPAY’S SOLUTION
•
Tracopay’s mobile micropayment solution is easy-to-use and fast–It
does not involve numerous and cumbersome steps and keying in of ‘till
numbers’. Confirmation of transactions is instantaneous.
•
The solution can inexpensively and conveniently be used to make
payments in both formal and informal business settings.
•
Users of the solution will have a ready and convenient low-cost access
to funds like in the use of debit cards.
•
The solution does not tie users to a single network—A user can
conveniently and inexpensively make cross network mobile money
transactions.
•
Users can make payments for goods and services even if the mobile
network is down or experiencing delays.
•
Users with feature or smart phones can use the mobile payment
solution (everyone can use it).

5. SALES AND MARKETING
• Tracopay’s mobile payment will be channeled through
banks thus leveraging on their existing customer base and
infrastructure/resources to distribute and advertise the
solution.
• Most users in emerging markets are familiar with personto-person transfers thus we will exploit this familiarity as
an anchor to introduce consumers to Tracopay’s solution.
• We will position ourselves as a low cost payments solution
provider that enables users to conveniently and intuitively
make all and any payment(s).
• Tracopay will penetrate the market easily and quickly
since there are no adoption costs associated with the
mobile payment solution

6. COMPETITION
We will enable banks to out-compete Mobile Network Operators
(MNOs) and to dominate the mobile payments market, since:

We facilitate everyday micropayments with ease and speed
unlike MNO micropayment services which are cumbersome
and time consuming.

We offer all payment services offered by MNOs but at a
lower cost since our revenue base is larger.

Our micropayment solution is able to penetrate market
segments that MNO micropayment services cannot i.e.
public sector transportation, street merchandise vendors and
other small scale informal businesses.

There is no need for mobile agents thus users do not need to
spend time to make the occasional trips to agent outlets or
incur costs to cash-out.

Tracopay provides banks with the tools to compete with
MNOs. Banks will earn 40% of the transaction revenue
generated in Tracopay’s payment ecosystem—A revenue
stream banks will be ready to defend.

7. BUSINESS MODEL
•
Tracopay has a diversified income stream: i) Micropayments-1% of the
transaction amount charged to consumers and 1% charged to merchants
ii) Fund remittances-simple graduating scale iii) Bill Payment-flat fee iv)
Online Payment-flat processing fee.
•
The main revenue stream for Tracopay will be from licensing its
proprietary technology to financial institutions around the world. Tracopay
expects to earn a minimum of 5% of the revenue its licensees make from
the payment innovation.
•
Tracopay will operate in Kenya for one to two years. It will then license its
proprietary technology to banks in emerging markets—Nigeria, South
Africa, Brazil, Mexico, India and China. To penetrate developed markets, it
will consider partnering with Visa or MasterCard.

8. FORECAST-KENYA
Year 1
Year 2
Year 3
Year 4
Year 5
# of Customers
2,283,463
7,449,942
8,269,437
8,449,777
8,634,050
Sales (USD M)
1.89
27.04
78.59
110.67
131.34
Expenses (USD M)
14.73
29.25
58.32
76.72
88.88
EBITDA (USD M)
(12.84)
(2.21)
20.27
33.95
42.46

9. FORECAST-GLOBAL
Year 1
Year 2
Year 3
Year 4
Year 5
# of Customers
2,283,463
7,449,942
Sales (USD M)
1.89
27.04
194.60
2,223.34
5,925.57
Expenses (USD M)
14.73
29.25
58.32
76.72
1,955.11
EBITDA (USD M)
(12.84)
(2.21)
136.28
2,146.63
3,970.45
444,559,516 1,202,768,544 1,512,652,783

10. THE TEAM
•
Samson Mutisya- Chief Executive Officer
Samson has a financial background and has worked as a money market dealer,
equity analyst and also as a micro-finance rating analyst. He has a bachelors in
International Business Administration (magna cum laude), finance concentration.
Currently, he is pursuing an MBA finance.
•
Rodney Ochola-Chief Technology Officer
Rodney is a co-founder of Sicreso, a firm that offers software consultancy
services to SMEs. He has a deep understanding of programming, circuit design,
machine networking and penetration testing. Rodney has a background in
Electronics and Computer Engineering and is currently pursuing a second
degree in Computer Science.
•
Robert Muchiri-Chief Strategy Officer
Robert is also a co-founder of Sicreso. As a self taught trader, he has traded
financial derivatives for over six years. Robert has a bachelors in International
Business Administration (cum laude distinction), marketing concentration.

11. STATUS AND MILESTONES
•
We have created a computer simulation which simulates all aspects of the
payment solution. This proves the solution is feasible.
•
An expert on payment systems from Ehrlich & Fenster (one of the top
patent firms in the world) has evaluated our solution and recommended an
application for seven patents.
•
We have had constructive discussions with Kenya Commercial Bank and
they are awaiting a demo of the solution to make a final decision on being
Tracopay’s developmental partners.
•
Held preliminary talks with IBM, they are interested in a partnership to
create the payment solution. We will engage them once the provisional
patents are secured.
•
Next milestones: 1) Finalize on raising seed funding. 2) Secure provisional
patents. 3) Develop prototype payment solution. 4) Get service
endorsements from banks. 5) Secure Series A funding. 6) Go commercial.