Page 29 - demo Golden pond document

A2pay investment proposal 28

6.6. Ancillary Commercial Solutions:

6.6.1. WiFi Solutions:

A2Pay has engineered a reliable and cost effective WiFi solution in order to satisfy two main benefits.

1) Satisfying the store owner in attracting new customers while generating generous margins on
voucher sales.
2) Reducing Data operating costs per store in order to improve the License Fee GP per store.
Store owners will qualify for this solution for Free by either hitting a target on their VAS sales for a 3 month
period or alternatively have the ability to purchase the hardware at roughly R4 500 including installation.

GP margins will be highly lucrative for both store owner selling the prepaid vouchers and A2Pay. Margin could
be as high as 50% based on the piloted solution.
This solution will also be used as behavioural incentive in the A2Pay pathway platform in order to motivate.

An advertising solution has been integrated into the solution which will provide additional advertising
opportunities for brand to consumer. This has not been budgeted as yet, as we are still in pilot phase.

*see A2Pay WiFi Video

6.6.2. Business Services Solution:

Informal Retailers often act as mini internet café’s and provide much needed services such as print, copy and
scan. A2Pay has tested this model with an integrated solution to the A2Pay system and there is a definite
demand from store owners. A2Pay is busy developing an improved solution to be launched later in 2019.

Typically copies are charged at R2 per copy and R4 per scan. This equates to a 50% margin for A2Pay.
Multifunctional printers will be sold to the existing A2Pay base through A2Pay Financial Services.

*See Quick Tuck Shop video to view Business Services solution

6.6.3. Card Acquiring:

Research and an initial A2Pay pilot has indicated a major growth in Credit/Debit card transactions within the
informal retail market. This being linked to the correlation of unbanked consumers starting to receive bank
accounts from various industry players. Cashless payments are also seen as less of a risk to the store owner.

A2Pay has sourced a reliable partner who will provide an integrated card acquiring solution for the A2Pay
system. This partner as extensive experience in supplying banks and other industry players with card solutions.
The model would see A2Pay purchase card devices from the entity and sell them to store owners via the A2Pay