global innovation (gi plan)

idea📲end-to-end custom business solutions

specializing in enhanced iOS mobile performance

mobile enterprise management

© 2274 Inc. Intellectual Property All rights reserved

Elevator Pitch • Mobile money is first and foremost a transaction-driven platform,

with cost and revenues tied to the movement of value.

• According to Ernest and Young, the Mobile Money Revolution is here. We want to position our brand as the gold standard of mobile money ecosystems.

• Transactions rule the world. We provide the rails on which to build simple mobile commerce solutions.


http://www.2274.com/2015/411.html

Problem & Value Proposition

• Consumers will soon expect mobile money to be accepted almost everywhere. According to Mung Ki Woo, Executive Vice President of Digital Platforms at Master Card 85% of global transactions = cash.

• 1% change in how transactions are conducted is worth billions.


All mobile money deployments strive to encourage value to circulate on

their platforms. Value moving between different accounts hosted on the

same platform does not create transaction cost for the provider, and

can generate pure margins (all revenue and no cost.)

We aim to maximize digital transactions, while minimizing cash-based

transactions


INCOMING TRANSACTIONS

CIRCULATING VALUE

OUTGOING TRANSACTIONS

CASH IN

DISBURSEMENTSA2A (BANK-TO-WALLET /

CROSS-NET P2P)INTERNATIONAL REMITTANCES

P2P (ON-NET)

PAYMENTS (C2B,B2B)

CASH OUT

AIRTIME PURCHASES

BILL PAYMENTS VOUCHERS

A2A (BANK-TO-WALLET / CROSS-NET P2P)

INTERNATIONAL REMITTANCES

2274™


TRANSACTION MODEL

TRANSACTION COST

TRANSACTION REVENUE NOTES AND ASSUMPTIONS

INCOMING TRANSACTIONSCash-In

Bulk Payments (disbursements)

International remittances

A2A (bank-to-wallet)

A2A (P2P cross-net)

0.7%

0.0%

0.5%

0.4%

0.4%

0.0%

0.5%

0.0%

0.0%

0.0%

• Although agent commission for cash-in are usually tiered, 0.7% is an estimated average cost. Cash-in is

usually offered free of charge

• Cost of offering bulk payments is captured in non-transactions costs (mainly set-up cost) Yield revenues

from the fees charged to businesses / governments disbursements

• Incoming international remittance tend to be free for recipients.. The Operator incurs a cost from the partner

international money transfer entity. 0.5% estimated average cost

• Transferring value from a bank account is often free for customers. The operator incurs a cost from the

financial institution hosting the incoming funds.

• Transferring value from an alternate mobile account is often free for customers . The operator, however

incurs a cost from the mobile money provider hosting the incoming funds

CIRCULATING VALUE

P2P (on-net)

Payments (C2B, B2B)

0.0%

0.0%

1.5%

1.5%

• On-net P2P does not result in transaction cost to operators. Transaction revenue depends on pricing strategy, but can be in the range of 1-1.5% of value transferred.

• C2B or B2B does not result in transaction costs for operators; the merchant or business usually pays roughly 1.5% of the value transferred.


TRANSACTION MODEL

TRANSACTION COST

TRANSACTION REVENUE NOTES AND ASSUMPTIONS

OUTGOING TRANSACTIONSP2P (off-net)

Bill payments

Airtime purchases

International remittances

A2A (bank-to-wallet)

A2A (P2P cross-net)

Cash-out

1.0%

0.0%

0.0%

0.0%

0.0%

0.5%

1.0%

3.5%

0.5%

0.0%

5.0%

0.4%

2.0%

2.0%

• Off-net P2P (or vouchers) incur a transaction cost of 1% for operators on average, but usually also yield

transaction revenues higher than on-net P2P. • Bill payments do not result in transaction costs. Transaction revenue usually come directly from the biller

• Airtime purchases do not incur transaction costs. Mobile money providers can be considered virtual airtime distributors, but they do not incur revenue from mobile operator

• Outgoing international remittance do not result in transaction cost. However, the sender usually pays a relatively

high fee to transfer value internationally.

• Transferring value from the mobile wallet to a bank account usually does not result in transaction cost for operators. A fee is sometimes charged to customers.

• Transferring value from the mobile wallet to an alternate mobile account may result in transaction costs for operators/ A fee is sometimes charged to customers.

• Although agent commissions for cash-out are usually tiered. 1% is an estimated average cost. Customers ar usually required to pay for this service, yielding transaction revenue for the operator.


Revenue Model• Ensure every line of service either breaks even or yield profits.

• Online-Transaction fees for merchant services. The US industry standard (Square = 2.75%)

• Remittance of 100 USD on average using mobile money = 4 USD

• Exclusive Global Syndication Rights of Digital Media 22%-30%

• Global Production Incentives


START-UP EARLY STAGE (1-2 YEARS)

HIGH GROWTH, REMITTANCE-BASED

(4-5 YEARS)

MATURE, ECOSYSTEM-BASED

(>5 YEARS)

DESCRIPTION• Customer acquisition phase • Provider focused on generating market

awareness • Priority is basic foundation of mobile money

• At least 15% GSM base active mobile money users (30 day)

• Network effects kicking-in • One predominant use-case (e.g. P2P, bill

pay)

• At least 30% of GEM base active mobile money users (30 day)

• High growth of bill payment and bulk payment transactions

PROFITABILITY METRICS• Highest cost categories agent commissions for

registration, agent on-boarding, and marketing • Very little revenue at this point (>0.5% of total

MNO revenue) • Negative net margins.

• Highest cost category agent commissions

• revenue coming primarily from P2P and cash-out

• Mobile money revenue approx. 5% of total MNO revenue

• Modest, positive net margins

• Agent commissions compressed • Revenue sources more diversified, less

from cash-out • Mobile money revenue >15% of total

MNO revenue • Healthy net margins


Digital Media Streaming Service Artist Distribution

2274.tv* 77 23

tidal.com 75 25

itunes.com 70 30

YouTube 55 45

* Independent Artist with revenues < $1M USD

Jay Z streaming service

Apple

Google © 2274 Inc. Intellectual Property All rights reserved

http://tidal.com

http://itunes.com

Target Market Distribution

• Smartphone = power of computer connected to the internet in every hand cannot be understated.

• we design the rails based on “2274” being a natural progression to mix commerce and payments into the realm of ubiquitous computing and the Internet of Things.


http://2274.com

Product Service Innovation• Once connected, a single touch automatically places your order

and 2274 sends an order alert to your phone.

• Mobile Enterprise Management for Media & Entertainment Professionals

• Paperless Production Processes (Green production services)

• Viral Expansion Loop based on financial inclusion outreach

• Near-real-time data & analytics on TheGlobalCurrency™


http://2274.com

The AskSeeking venture capital in the range of $5M-$25M to acquire customers, build out a global distribution

network, and invest in the system for the next three

years.


Commercial Operating Network & IT Other


COMMERCIAL COST

Customer acquisition cost (AC)

Agent and merchant AC

Shop and agent management cost

Marketing

• Agent Commissions, trade

• Internal or External workforce to on-board agents and merchants

• Internal or External workforce to manage agents + direct distribution cost

• ATL and BTL campaigns to promote service

OPERATING COST

Personnel

Technology

Fraud and settlement

General and administrative

Customer Care

• dedicated mobile money staff, excl. field marketing staff

• Platform maintenance and operating cost, energy, connectivity license fee

• Fraud, settlement, revenue assurance

• Procurement and supply chain, finance, management real estate

• Call center, processing and back office

NETWORK & IT Platform • Platform acquisition and evolution, set-up with aggregator

OTHER Shops and offices • Other capital expenditures required to set-up or improve the business

2 2 7 4 C o s t S t r u c t u r e

Competitive Matrix / Advantages• 2274 becomes the ultimate endpoint for the notion of currency

• Eventually payments may become invisible. Instead of handing over cash or card to person or machine, our mere presence will be able to conduct a transaction for whatever service we desire. (2274 + Apple Watch = "⌚ my C.A.S.H.™ )

• Our agents represent the human interface in the digitalization of C.A.S.H.™ online


Why me• Statistics show that across the board in technology, entertainment, and

finance, offer a perspective in which 97% of market is consumers.

• Entertainment Industry Professional (Bachelor of Arts in Cinema and Television with Electronic Media Management specification #CSUN13)

• USC Marshall School of Business, Office of Executive Education Certificate Financial Success for Diverse Businesses 2013

• Apple Inc. Certified Developer July 2016


global innovation (gi plan)

Small Business & Entrepreneurship