Page 22 - demo Golden pond document

A2pay investment proposal 21

6.5. Data

Overview:

A2Pay’s point of sale system records ALL retail transactions whether VAS or General Grocery Items being sold
in the Informal Retailer. Each transaction is time and date stamped and stored in the A2Pay virtual cloud. It’s
said that “Data is the New gold” and this is especially the case in the so called informal retail market where
FMCG brands and banks are desperate to gain these insights. A2Pay can view basket size, time of sale, basket
quantity, selling prices, stock availability per store, cost prices per store.

South Africa is measured to have roughly 2500 modern trade supermarkets and 140 000 Traditional Trade
(Informal retail – Spaza’s). It is estimated that these stores contributed retail sales of R70.5bn per annum as
reported in March 2017
A2Pay’s point of sale system has the ability to load any grocery item using a barcode. A2Pay has with loaded
over 15 000 S.K.U items sold through any Informal Retailer to the back end. This simplifies the process of
loading an item to the system with product description, barcode, store cost and selling prices. Every item thus
sold through the store is scanned similarly to any formal retailer. The A2Pay system also has the ability to track
non-barcoded items such as hot food, lose cigarettes, single sweets etc.

Transactional data is uploaded to the A2Pay cloud every 15 minutes including stock volumes

A2Pay receives transactional data for over 1300 stores selling general items in Gauteng, KZN, Eastern Cape and
Western Cape and brands have already shown a very keen interest in gaining access to this data. Over
R35million in retail sales (excluding VAS) was sold through the A2Pay platform in August 2019. By March 2023
retail sales sold through the A2Pay platform is expected to exceed R1.8billion per annum.

6.5.1. Data Insights Market –
(Primary Market Insights)

Overview:

Up until this point there has been no alternative to receiving live transactional data. The only existing business
offering a similar service is AC Neilson, however the monthly research is said to be inaccurate and extrapolated
from a small sample of stores measured by researchers on the ground. Few businesses have tried to gain this
lucrative transactional data by installing their own technologies, however none have been successful to date
due to the high expense and complexity of executing within the informal retail market.

As a result of A2ays execution there is now a major opportunity for A2Pay to sell this transactional data to
Supplier Brands within the South African market.
Hence Primary Market Insights – www.primarymarketinsights.co.za - was established in March 2018 as a
joint venture between A2Pay and Executrac (an informal trade FMCG research specialist) with the objective of
selling transactional data to FMCG Brands/Suppliers.