Page 6 - demo Golden pond document

A2pay investment proposal 5

An overview of the commercial value of these revenue streams is included in this proposal and links to various
A2Pay videos are available at the end of this proposal.

3. The Merchant – (Informal Retailer/Spaza)

In terms of our Jobs Fund model, the cost of acquisition of the Informal Retailer is high. This investment is
necessary in order to ensure that a sustainable business is created. There is a high barrier to entry as no one
has cost effectively penetrated and serviced this market with a full business management solution. Critical
factors to success include:

• Quality Site Selection
• Advanced and intuitive technology and hardware
• Proven onboarding and adoption process including ongoing coaching and mentoring.
• Continued support

The coaching methodology (a job creation operation in itself) coupled with the technology (which is designed
around solving specific business pain points) strives for a conversion moment where the skills transferred and
the business tool becomes integral to the success of the merchant’s operation. This conversion moment is
evidenced through behaviour and is indicative in the adoption. Which includes:

• Face to face and group coaching coupled with technology training
• FMCG training and basic financial literacy
• Marketing / goal setting / customer care / HR

Once A2Pay achieves the conversion and can measure behaviour, A2Pay introduces a Pathways Platform to
the merchant – see illustration below. This is a purpose built smartphone application which takes the
merchant on a journey using on-app and off-app activities (integrated into the A2Pay backend). This allows the
merchant to plot their future through incremental steps towards financial inclusion. Pathway milestones
include:

• Merchant Rewards
• WiFi hotspot
• Card acquiring
• Consumer Rewards
• Access to Loans
• Bulk Buying
• Becoming a Financial Hub

All these factors ensures that the merchant’s business is sustainable and retained on the A2Pay platform.