Page 27 - demo Golden pond document

A2pay investment proposal 26

Automating The Process – Phase 2

As an evolved and more automated phase of phase 1, A2Pay has started to scope a system ordering portal for
Retailer and Supplier. The portal would give both respective parties the necessary tools to improve their
business processes and profitability.

Merchant / Store Portal:

1) Store Owner has access to a portal on the A2Pay Machine / A2Pay Smartphone Application whereby
they can view Wholesaler/Supplier pricing, promotions and stock availabilities. Merchant receives
best possible pricing.
2) Store Owner can place an order with the chosen supplier via the portal and either collect stock or
receive delivery based on a Minimum Order Quantity (MOQ)
3) Payment will be as per the agreement with supplier and could be prepayment or payment on
delivery. This however would all be done electronically via the store’s A2Pay wallet.
4) Store Owners will load their A2Pay wallet in the following ways
a. EFT from an existing bank account if applicable
b. Credit/Debit Card sales accepted from the store
c. Credit offered by A2Pay Financial Services
d. Depositing Cash at an ATM or Formal Retailer
Wholesaler/Supplier Portal:

1) Wholesaler/Supplier receive access to a web portal whereby they load stock items available with
respective pricing.
2) Wholesaler/Supplier has the ability to push an advert to the A2Pay Advertising Portal (charged per
page advertised).
3) Wholesaler/Supplier will receive orders via the portal with an A2Pay delivery note. Meaning that once
the delivery/collection of stock takes place, a barcode on the delivery note is scanned and stock is
automatically loaded to their A2Pay system in store.
4) The wholesale/supplier will receive prefunded order via the A2Pay wallet

Commercial Model:

A2Pay would have the opportunity to receive revenue in the following areas.

• Advertising revenue from wholesaler/supplier (Advertising Portal)
• Rebate of 3% -5% from supplier/wholesaler on any stock ordered through the portal. Enterprise
development funding from suppliers could also be used (Social upliftment programme)
• Financial services loan interests.

Rebate Revenue:

Based on the April 2021 (FY2022) forecast and 40% of stores ordering stock via the A2Pay buying group
solution. The turnover on stock order would equate to R60million / month and a 3% rebate on these orders
would provide R1,8 million per month or R21,6 million per annum. This amount would increase with the