I expect E Wallet to be ready in a few months time, with linkage to the bank account using PayNow gateway (which I hope will be provided by the Association of Banks).
My business and marketing plan is:
a) Give an incentive to agents to sign up 5,000 vendors (i.e food stalls or retailers). The agent gets $25 for each vendor. Budget $150,000, including overheads.
b) Give an incentive to consumers to use E Wallet. They get $10 for spending the first $50. I plan to sign up 25,000. Budget $250,000.
c) The other upfront cost of setting up the operation, including computer system, is $300,000 (say), The total capital is $700,000.
d) The merchant pays 0.5% for each transaction but this is waived for the first 3 months. Average value of transaction is $10. they pay 5 cents. Each vendor handles an average of 50 transactions a day using E Wallet, so their fee is $2.50 per day (after 3 months).
The merchant spends $75 a month on E Wallet. I estimate that the cost of handling cash is 2% of sales, or $150 a month (based on sale of $7,500). So there is a productivity saving for the vendor.
e) The E Wallet company earns a revenue of $2.50 X 5,000 X 30= $375,000 a month. After paying salaries, marketing and other expenses, the margin is 20% (say) or $75,000 a month.
f) The initial investment can be recovered in 1 year. This should be a good business model.
I wonder if the ordinary people are interested to invest in this business? I may set up a social enterprise and allow the vendors and customers to take a share in the business. Just thinking.
