EXECUTIVE SUMMARY

EXECUTIVE SUMMARY Page 2 of 6

All rights reserved. The information contained in this document is confidential and may also be proprietary and
trade secret. Without prior written approval from Tracopay Limited no part of this document may be reproduced or
transmitted in any form or by any means, including but not limited to electronic, mechanical, photocopying or
recording or stored in any retrieval system of whatever nature. Use of any copyright notice does not imply
unrestricted public access to any part of this document.
EXECUTIVE SUMMARY Page 3 of 6

Basic Corporate Data

Name of Company: Tracopay Limited
Status: Incorporated in Kenya on 30
t h
April 2013
Registered Office: P.O Box 30333-00100
Nairobi, Kenya.
ICEA Building, 4
t h
Floor, Kenyatta Avenue
Land reference No: 209/8287
Company number: CPR/2013/100368





Contacts Samson Mutisya
CEO Tracopay
samson@tracopay.com
+254 722 80 33 84














EXECUTIVE SUMMARY Page 4 of 6

About Tracopay
Tracopay provides banks with a payment device that enables their clients to securely make retail
payments in a way that is faster and more convenient than using cash.
The payment device, whose technology is backed by patents, fits in a wallet since it is the size of
a credit/debit card and 4mm thick. The device is interactive, versatile and provides users with a
distinctive payment experience.
Tracopay provides an inclusive payment solution that can be used by individuals across
economic class and can inexpensively and conveniently be used to make payments in both
formal and informal business settings.
The Opportunity
In countries found in Asia, Middle East, Eastern Europe, Africa and Latin America, over 90% of
payments for goods and services are conducted in cash. For example in Kenya, a study
conducted by MasterCard last year, indicated cash accounts for nearly 75% of the value of
transactions, and more than 95% of transactions. As of March 2014, there was USD 10 billion of
currency and demand deposits in the Kenyan economy. Finding a way to monetize the millions
of cash transactions worth billions of dollars that occur every day in Kenya and in other countries
in the developing and emerging markets, presents an incredible lucrative opportunity.
The Solution
Tracopay has developed a payment device that can beat cash and is suited for the unique retail
environment found in developing and emerging markets. The payment solution makes it possible
to monetize the retail cash transactions that occur in developing and emerging markets.
Key features of the payment solution are:
Cash is simple and fast to use. Tracopays payment solution is also simple to use but
faster than cash. Users simply unlock the device using their index fingerprint, key the
amount to pay and then tap their payment device with another device or POS terminal.
Unlike cash, there is no need for counting currency, making calculations to determine
change or in some cases, looking for the right currency denomination as change.
When a user pays with cash, they are assured that the transaction will be completed
cash is reliable. Immediate connection to a remote server is not a requirement to effect
retail payments using Tracopays payment solution. The implication of this is that retail
payments are effected instantaneously each and every time. Users are not affected by
connection issues that sometimes make credit/debit cards or mobile payment solutions to
experience delays or worse, not effect retail transactions.
Users of Tracopays payment solution can make payments anytime and anywhere just
like in the use of cash. This is because the payment device facilitates to a certain degree
offline contactless payments. Users are not restricted on making retail payments where
and when a network connection is available. This makes Tracopays payment solution
EXECUTIVE SUMMARY Page 5 of 6

suited for countries in emerging and developing countries where network connections can
be unreliable and in some areas nonexistent.
Use of cash does not require a POS terminal. With Tracopays payment solution, users
can make retail payments even if the merchant does not invest in a POS terminal. For
example a street vendor can use their personal device to accept electronic paymentsthe
customer simply needs to tap their device with the street vendors device. This is made
possible because the payment device can both accept and make electronic payments. This
is particular important especially for developing and emerging markets where majority of
retail payments resemble person to person use cases. However note that an individual can
also tap their payment device with a POS terminal.
To further enhance the attractiveness of Tracopays payment solution over cash, users will be
able to view on the go their transaction history, quickly know their balance by the press of a
button, set reminders and alerts for important bills or payments and easily reverse transactions.
Users also dont need to memorize USSD codes, PINs or phone, pay bill or account numbers.
Furthermore, we intend to have a loyalty scheme to enhance customer engagement and usage.
Note the payment device can also facilitate person-to-person money transfer, remote/bill
payments and online payments. These are value added services that make the payment solution a
complete solutiononce you have the device, you will not need any other payment solution.
Sales and Marketing
The first individuals to adopt this solution will be those living in urban areas who are open to
adopting new technologies and who have bank accounts. Once this market segment is saturated
banks will then shift their focus on recruiting individuals in rural areas who are often late
adopters of technology and usually do not have bank accounts. The unbanked may not use
banking services often but they do make retail transactions and the payment device enables
banks to monetize this opportunity via transaction fees.
We will position ourselves in the market, as a low cost payment solution provider that brings
convenience to the lives of users by enabling them to reliably make a wide range of payments
with ease and speed. To ensure the solution penetrates the market quickly, we intend to minimize
adoption costs by issuing the devices preferably at zero cost or at a highly subsidized price (the
device cost between USD 11 to USD 20 and its cost can be recouped via levied transaction fees).
Competition
There is no electronic payment solution that can beat the efficiency of cash in developing and
emerging markets. This is why over 90% of retail transactions in many countries in these regions
are still done with cash. Thus Tracopays, competitor is cash. Cash is an efficient payment
solution. However using our proprietary technology, we have created an easy to use solution that
has the qualities of cash but more convenient, versatile and faster to use. Furthermore we provide
unparalleled user experience that cash or any other payment solution cannot offer. This way we
will be able to make users over time, to stop using cash and to start using Tracopays payment
device.
EXECUTIVE SUMMARY Page 6 of 6

Business Model
Every type of transaction that occurs within Tracopays payment ecosystem is charged a
transaction fee. Given the range of payment types facilitated by the device, Tracopay has a
diversified income stream.
Given our strong functional patents which were drafted by a top global patent attorneys firm, we
intend to license our technology in developing and emerging countries like Nigeria, South
Africa, Brazil, Mexico, India, Indonesia, Turkey and China . Licensing income will be the main
revenue stream for Tracopay. Tracopay expects to earn a minimum of 10% of the revenue its
licensees generate from the payment innovation. To penetrate developed markets, we will
consider partnering with Visa, MasterCard, PayPal, Square or even Google.
Financial
We have developed a conservative financial model that considers population and economic
growth, individual incomes, inflation and Tracopays business parameters. Find below key
metrics from the model. The figures only reflect Tracopays core business which is the
facilitation of retail payments. Therefore the figures do not reflect Tracopays money transfer,
bill/remote payment and online businesses.
Kenyan operations

ARPU: Average Revenue per User
Global operations (South Africa, Nigeria, India, Brazil, Mexico and China only)

ARPU: Average Revenue per User.

Conclusion
The founders of Tracopay are Samson Mutisya, Rodney Ocholla and Robert Muchiri. We have
worked together perfecting the innovation for over two years. The innovation is backed by
patents which have been drafted and filled by Ehrlich & Fenster which is one of the top global
patent attorneys firm. After a bidding process, we selected Svep Design Centre to design,
develop and oversee the manufacture of the payment device. Atsec an information security firm
will ensure the hardware and software of the payment system is certified and secure. Two major
financial institutions are keen to adopt the payment solution and we are currently in talks with
them. We are looking to raise USD 1.3 M from investors to develop the payment device, conduct
a concept study and launch in the market.
Year 1 2 3 4 5
Revenues (USD M) 1.28 20.08 63.54 99.51 129.65
EBITDA (USD M) (12.54) (3.80) 17.24 34.50 48.81
Number of users 2,283,463 7,449,942 8,269,437 8,449,777 8,634,050
ARPU (USD) 1.42 3.69 7.76 11.88 15.16
Year 1 2 3 4 5
Revenues (USD M) 1.28 20.72 207.83 1,655.58 4,641.66
EBITDA (USD M) (12.54) (3.15) 161.53 1,590.57 4,560.82
Number of users 2,283,463 53,890,357 412,247,376 827,082,947 1,046,976,065
ARPU (USD) 1.42 2.30 5.17 22.77 47.13