International Payments · Remittance

I have signed my first client (with 30,000 users), now what?

Graeme Lewis [LION]

July 3rd, 2016

Trying to build a startup I find you tend to go from solving one massive headache to finding the next headache needing to be solved. I developed an itch I had to scratch when I worked for a large telco and was tasked with managing their implementation department. We launched a Mobile Wallet for the telco and my eyes bugged out at the scale possible. My path has been a bit of a windy road. The short story is I have now signed a contract with a client in Uganda. The objective is to deliver a remittance payment flow, allowing small transfers (<$100) to be made instantly and within properly regulated partners.

For the risk averse readers, the compliance has been solved first. End to end we follow strict Anti Money Laundering and Know Your Client processes.

We know our niche market pretty well. We have heaps of research supporting the model I want to deploy.

My question is really where the heck do I go now? I have a few options that some sound advice from the forum here might help me with.

1) I can implement the contract using a white label pay wall for next to nothing and wait for revenue to build.

or

2) I can try to find an established partner who can enhance the product and potentially fund faster expansion. I have two potential partners lined up, both operate their own Wallet platforms and want to expand in Central Africa.

My contract I mentioned will deliver 70c per transaction to me. There are 30,000 customers my client has who are all remittance recipients. Prior to this contract, these people only had access to traditional money transfers(Banks, Western Union). Our product will save the customer $9 on every $10 transfer sent (competitors charge $9.99 per transfer).

I realise the best for me long term would be to own everything. This is a fast expanding market and I don't want to miss the chance to be one of the bigger players in time if I can achieve that.

Perhaps a better question is, What is my contract worth, and can I raise funds against it?

Thank you in advance and don't be afraid to offend. I prefer straight blunt talk. Life's too short - get to the point :D
More than 65% of new companies fail because they lack funding. In this course, you’ll learn common fundraising mistakes, how to nail an elevator pitch, how to craft a killer pitch deck, where to source investments from, and all about term sheets and convertible notes.

Aleksey Klempner

July 3rd, 2016

Your email bounced here is mine
AK at CTO dot LA



Chicke Fitzgerald

July 4th, 2016

@graeme I have a family owned major player (I know that sounds contradictory) that I would highly recommend.  They are the largest issuer of dynamic payment systems (non-plastic) for MasterCard.  It is a husband and wife team.  I am happy to make the intro and you can see if it is a fit.  They are amazing to work with and have significant global infrastructure.    chicke at solutionz dot com

Aleksey Klempner

July 3rd, 2016

Do you have financials and company  presentation deck ? Can I see those?

Graeme Lewis [LION]

July 4th, 2016

@Irwin Stein, you're right. Instant cash flow would be great. My thinking is this is a "bankable" contract and since it has tangible value, I should be able to find someone who is in the right field and who has an appetite. A few people I have already spoken to have placed a value on what they see it being worth, but then they are not the ones putting their hands in the pockets to pay, they're just colleagues at this point.

Ideally, instead of boostrpapping this, I want to capitalise the business so we have a bit more marketing strength.

In month 12 I've projected $80k gross revenue and it grows 5% month on month from there on.

@Peter Kestenbaum, although I'd own less, probably very little if I go with a big company - it is my preferred route. My clients have qualified demand for wallet infrastructure. To try and build from scratch would mean we miss the chance to grab more market share. So I'd much rather partner. I have one preferred partner who has a blockchain wallet, linked to payment cards etc.

Graeme Lewis [LION]

July 3rd, 2016

@Aleksey Klempner thank you - yes I do. Can I send you a mail with the info. My email is graeme at myaltocash dot com

Irwin Stein Very experienced (40 years) corporate,securities and real estate attorney.

July 3rd, 2016

You can implement using a white label pay wall for next to nothing and you ask "what is my contract worth?" Of course you can raise funds against it, but how much could you need? If the 30,000 are making multiple monthly payments you have instant cash flow. What am I missing?

Peter Kestenbaum Advisor, Investor, Mentor to Emerging firms

July 3rd, 2016

Graeme I just coached someone through one of these mobile focused solutions.. voice for IOT devices.. strongly recommend you seriously consider getting an established player with infrastructure and substance to front for you. Besides the go to market speed and client support and regulatory advantages you can structure an agreement that can focus on some particular personal needs you might desire. It's going to be less lucrative but the probability of success might be worth it