singapore patent no. 164153
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Copyright 2008Copyright 2008
Singapore Patent No. Singapore Patent No. 164153164153
““Buy anything online for Buy anything online for less.”less.”
Copyright 2008Copyright 2008
Pay Flow OverviewPay Flow Overview
Consumer
Credit CardholderOnline
Merchant
Credit Card Purchase
Cash < Credit Purchase
Item/ServiceSelected by the Consumer
Patent Licensee
Copyright 2008Copyright 2008
Singapore Patent No. 164153Singapore Patent No. 164153 The invention will allow a consumer to purchase The invention will allow a consumer to purchase anything anything soldsold online at a online at a
discount, by matching the consumer with a credit cardholder who needs discount, by matching the consumer with a credit cardholder who needs cash. The credit cardholder will make a purchase for the consumer using cash. The credit cardholder will make a purchase for the consumer using his credit card, and in exchange, the consumer will make a cash transfer to his credit card, and in exchange, the consumer will make a cash transfer to the cardholder that is the cardholder that is less thanless than the price paid by the credit cardholder to the price paid by the credit cardholder to pay for the Consumer’s chosen transaction. pay for the Consumer’s chosen transaction.
Using the invention the consumer receives an item he wants at a discount Using the invention the consumer receives an item he wants at a discount (i.e. for the amount transferred to the cardholder), and the cardholder (i.e. for the amount transferred to the cardholder), and the cardholder receives cash at his credit card’s purchase interest rate instead of the receives cash at his credit card’s purchase interest rate instead of the card’s higher “cash advance” rate. Further, the cardholder may be able to card’s higher “cash advance” rate. Further, the cardholder may be able to receive the cash at a cost lower than his credit card’s minimum cash receive the cash at a cost lower than his credit card’s minimum cash transaction fee, when the difference between the cash transferred to the transaction fee, when the difference between the cash transferred to the cardholder and credit card purchase is less than the credit card’s minimum cardholder and credit card purchase is less than the credit card’s minimum transaction fee. transaction fee.
The licensee earns a commission on funds transferred to the cardholder. The licensee earns a commission on funds transferred to the cardholder. Other fees (e.g. membership fee) may be charged to both the consumer Other fees (e.g. membership fee) may be charged to both the consumer and cardholder.and cardholder.
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Pay Flow SequencePay Flow Sequence
LegendLegendInformation
Value
Licensee
1. 2.Consumer Consumer
Online Merchant
Online Merchant
Credit Cardholder
Credit Cardholder
Item Info, Terms, and $ transfer
Agreement on Terms
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Pay Flow Sequence ContinuedPay Flow Sequence Continued
3.3.
5.
4.
Consumer
Consumer Consumer
Online Merchant
Online Merchant Online
Merchant
Credit Cardholder Credit
Cardholder
Credit Cardholder
Cardholder pays for item using credit card
Item Ships
The Licensee, after confirming payment, transfers $ < than credit card purchase to
Credit Cardholder
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Pay Flow Sequence ContinuedPay Flow Sequence Continued
6.6. Consumer
Credit Cardholder
Online Merchant
The Licensee remits a portion of the money deposited back to the consumer,
and keeps a portion for itself.
Copyright 2008Copyright 2008
MarketMarketStage 1: Pay Day Loan Customers Stage 1: Pay Day Loan Customers
online that have *Credit Cards.online that have *Credit Cards.
Pay Day Loan
Customers
Credit Cardholders
*57% have a major credit card. Est. Over 40 Billion in payday loans annually. Source “Community Financial Services Association of America” (CFSA), www.cfsa.net
Copyright 2008Copyright 2008
MarketMarket
Stage 2: Credit Cardholder’s online who Stage 2: Credit Cardholder’s online who want a loan.want a loan.
Proxy Number = “cash advance” credit card Proxy Number = “cash advance” credit card transactions.transactions.
Loan Seekers Credit Cardholders
Online
Copyright 2008Copyright 2008
Online CompetitionOnline CompetitionCredit Card IssuersCredit Card Issuers
Obtain $ at card’s purchase interest rate•Obtain $ > card’s
cash limit• Cost < Card’s min
transaction fee
Customer need: CashCredit Card
Offering
LicenseeLicensee’s Strategic
Advantage
Copyright 2008Copyright 2008
Offline CompetitionOffline Competition
Payday Loan CompaniesPayday Loan Companies
• Online Convenience• Available Credit > payday loan max• Lower Transaction Cost
Customer need: Cash
Payday Loan Offering
LicenseeLicensee’s Strategic Advantage
Copyright 2008Copyright 2008
Marketing/DistributionMarketing/Distribution
Create a pool of potential borrowers (credit cardholders) from Create a pool of potential borrowers (credit cardholders) from payday loan customers, by offering loans for less than what payday loan customers, by offering loans for less than what they are currently paying.they are currently paying.
Advertise that by using Licensee’s pay services, you can “Buy Advertise that by using Licensee’s pay services, you can “Buy anything online for less”. anything online for less”.
Establish consumer accounts to make online payments. When a Establish consumer accounts to make online payments. When a consumer wants to make a purchase – Licensee will auction out consumer wants to make a purchase – Licensee will auction out the “purchase price” to credit cardholders who want a loan, and the “purchase price” to credit cardholders who want a loan, and match consumers with cardholder/borrowers.match consumers with cardholder/borrowers.
Online merchants will accept payments using Licensee’s Online merchants will accept payments using Licensee’s payment service, because purchases will operate like a regular payment service, because purchases will operate like a regular online credit card purchase. When a consumer’s purchase price online credit card purchase. When a consumer’s purchase price is not matched with a cardholder’s bid, the purchase can be is not matched with a cardholder’s bid, the purchase can be paid for by an EFT, resulting in a greater payout to the online paid for by an EFT, resulting in a greater payout to the online merchant. merchant.
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