Page 21 - demo Golden pond document

A2pay investment proposal 20

Future VAS Plans:

A2Pay will be adding the following initiatives over the next 12 – 18 month period in order to boost VAS
revenue per store.

1) Integrated Card Acquiring whereby the store owner will be able to accept Credit/Debit Card
payments and as a result the money accepted through this method could be conveniently used to top
up their pre funded wallet in order to vend more VAS. In addition this convenience for the consumer
should in general boost the store’s sales including VAS.
2) Merchant Rewards as mentioned above is a South African first and will incentivise the store owner to
sell VAS via the A2Pay system. Rewards will be highly attractive to store owner.
3) All in one Vouchers, whereby a consumer can purchase a white labelled A2Pay voucher and purchase
all VAS products available at store via cellphone. This voucher may also include a cross border money
transfer product. (Local Money Transfers are catered for in our current system).

Commercial Model:

A2Pay receive roughly 50% of the commission earned per VAS transaction and pass on 50% to the merchant in
order to remain competitive with other market players. With the introduction of the Merchant Rewards
programme bonus commissions will be replaced by rewards. This in addition to the intensive coaching module,
monthly promotional activity and new product development, A2Pay expects to grow the current monthly
average VAS turnover per store from R14 000 to R20 000 per store (R560 GP / Store) by March 2021. This can
improve further to R24 000 Turnover per store (R672 GP / Store) by March 2022. Once WiFi and Integrated
Card Solution is fully implemented, the targeted numbers should be easily exceeded.