Photo - CPS
22898

CPS

Spain
Market: Telecommunications, Trade, Blockchain, Crypto currency
Stage of the project: Prototype or product is ready

Date of last change: 04/10/2018
Min investment
$  250.000
7
Total required
$ 5.000.000
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- is looking for investment

Idea

CPS provides transaction processing on Blockchain for Merchants, that significantly reduce cost for accepting cashless payments. Unlike competitors, with CPS Merchants don't need to pay up to 30% of their margin. We are like VISA for the future of payments, where bank cards are replaced with phones, intermediates like Banks become outdated, TelCos start operating as financial providers for their Subscribers who would be able to get all financial services directly from their mobile accounts.

Current Status

We have already developed MVP, which allows Customers make payments through web-widget and track their transactions using web-wallet. For Merchats - get a consolidated information in their personal area.
MVP includes:
- Core Blockchain network on Hyperledger Fabric v1.0,
- Set of web-services for connect Telcos an Merchants
- Blockchain explorer for track payment transactions
- Web UI for Merchants and Customer with authorisation mechanism and personal area
- Simple solution for transactions confirmation

We still have not launched business operations, but we are preparing to launch our business:
- We’ve verified our business model, communicating with Merchants, Operators and Customers
- We’ve got feedback from expert community by participating in Blockchain exhibitions
- We’ve been finalists in start-up battles in Russia, Ukraine and Kazakhstan, what helped us to enhance network
- We’ve prepared document packs for different audiences
- We are developing channels with our community: Facebook, Telegram, Twitter, BitcoinTalk
- We are discussing project pilot with all major mobile operators in CIS
- We’ve launched Partner program to streamline our bus dev with Mobile Operators, who starts working in South Africa, Singapore and USA.

We hope all above will let us launch a pilot in H1 2018 and then streamline and scale our operations!

Market

Global market overview:
Global e-commerce market size in 2015 was USD 1.5 trillion and is expected to rise to USD 4 trillion in 2020. At the same time, card purchase volume is about 20 trln USD in 2015 and will increase to 55 trln USD in 2025. Global payment revenue was USD 1.5 trillion in 2015 and should reach more than 2 trillion in 2020.
According to Boston Consulting Group and Statista payment industry is about to experience a huge shift towards mobile payments:
• Mobile share of total ecommerce is expected to increase to 48,5% of total e-commerce by 2020 from 23.6% in 2015.
• Proximity (contactless) payment is jumped from near 0 in 2013 to 100 bln in 2016 and expected to reach 800 bln in 2021
• Merchant mobile payment acceptance network will grow 10X by 2020.
Please find more details in "White papar" chapter 4.

Problem or Opportunity

With every 100 $ revenue eCommerce and even offline Merchants have to pay up to 3 $ fees to be able to accept card payments from VISA or Mastercard. Small companies finally lose up to 30% of their margin to intermidiates like banks, payment processors, providers etc just for transferring their money into their accounts. So it is not surprisingly that near 60% of Merchants still accept only cash because of huge fees.

Solution (product or service)

CPS could disrupt payment industry and dramatically change a way how are we dealing with our financial institutions and mobile operators. Moreover CPS will benefit all related parties.

BENEFITS FOR MERCHANT: GROW YOUR MARGIN
• 1 % TRANSACTION FEE. Times cheaper than current rates. No token volatility risks and conversion fees, existing in current cryptocurrency based payments
• NEW CUSTOMERS. Every smartphone owner is your client
• INCREASE ARA. Increase average receipt amount by offering micro-loans to the customer

BENEFITS FOR CUSTOMER: ALL FINANCIAL SERVICES IN YOUR PHONE
• EASY. Pay for anything; transfer money locally and abroad, same with cryptocurrency; deposits and loans
• FAVORABLY. Use micro loans for immediate payments. Deposit money and receive earnings
• INNOVATIVE. Participate in crowdfunding with cryptocurrency to fund merchants

BENEFITS FOR TELCO: TRANSFORM INTO CRYPTOBANK
CPS will help mobile operators not to become Nokia, Yahoo or Polaroid, thrown out of the market CPS together with Operators will open new era in telecommunications: era of easy financial services. CPS will open the gate into the market 20 times larger than telecommunications. Operator will get chance to transform from stagnating connectivity providers into the leader in new financial markets.

Please find more details in "White papar" chapter 3.

Competitors

We are competing with well-known traditional payment system such as Visa, Mastercard, Paypal and new generation of payment providers working with cryptocurrency such as BitPay, Monetha, UTtust. It is one of the markets with high probability to be disrupted in nearest future, so Blockchain projects in this area very interesting for investors and for example Monetha and UTrust raised 20-30 mln USD on their ICOs despite of very limited audience for their potential services.

Advantages or differentiators


Traditional payment solutions have enormous merchant fees and suffered from a high rate of fraud, with credit card chargebacks being a major pain for merchants. On the other hand solutions in crypto payments were lacking in their ability to provide Buyers payments in traditional fiat currency, what decrease potential market to few millions on cryptocurrency holders and couldn’t be considered for most Merchants as tangible target audience. More details about competitive analysis you could find in chapter 6 "Platform Market fit" of White Paper.
Please find more details in "White papar" chapter 6.

Finance

Please find detailed P&L here:
https://drive.google.com/open?id=14eG6jqK4gnxCQDu7rHqv_zfoxoV9w5h6

Business model

We identified different revenue sources depending on project timeline:
• Short term revenue source is commission paid by Merchants for acquiring service.
• In the mid-term we will launch CPS Finance products and add revenue stream from Microloans (interest rate paid by Customer).
• In the long term, when we will reach sufficient customer base we could run CPS B2B products such as Marketplace, Advertising and Application and establish new revenue source from Corporate Clients who would like to reach our base.

Money will be spent on

- We are self-funded during first phase, where we will:
1. Start operations with simple product CPS Change web version to start generate traction
2. Create CPS Payments MVP (back & merchant's private area)
3. Sign Letter of understanding with 1st Telco to insure investors that we are backed with Telco
- Funds raised on closed presale round will be spend to:
1. Start operations CPS Change as integrated service for Telco (1 telco)
2. Launched pilot with telco CPS Payments according to local regulations
3. Launched marketing ICO campaign (optional, preffered way is closed sale for institutional investors)

Offer for investor

We are looking for long-term partners who could support us in this early stage, not only with funding, but mostly with:
- Contact & introduction to venture & crypto funds
- Business development with Telecom companies
To ensure possibility of raising sufficient funds and scaling after business model will prove success with 1st Telco operator.
For such early partners we could propose attractive token based model as well as participation to the equity.

Risks

- Mobile carriers would be reactive and will loose posibiliy to beign leaders in MFS
- Goverments will resist crypto adoption
- Huge competitors like VISA will protect their markets by acquisition of yuong players

Incubation/Acceleration programs accomplishment

Brightland Innovation Factory, Blockchain & AI, Spring 2018, Netherland

Won the competition and other awards

Startup Battle #97, Kharkiv, Ukraine, 3rd place
Startup Battle #100, Almati, Kazakhstan, 3rd place
Startup Battle #102, Saint Petersburg, Russia, 3rd place

Photos

Photo 1 - CPS

Product Video

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Idea
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Problem or Opportunity
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Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
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Product Video
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