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Payment Partners, Inc.
Investment Pitch
July 2014
1Confidential
Investment Summary
• Payment Partners, Inc. is seeking a Series A round of $275,000
to support the realization of company goals
• Capital will be used towards expansion of marketing efforts,
deepening of the executive management team, and the
launch and marketing of website platforms already in
development
• Expected 5 year IRR of 40%+
2Confidential
Overview
• Pay4Stuff addresses organizational needs for
payment collection for all school, club,
recreation and other group activities
• A series of products will serve specific
community niches with Pay4Stuff.com as an
umbrella site incorporating all products
3Confidential
The Problem
4Confidential
The Problem
• The electronic payment of fees and the collection of
information for community groups in the U.S. is
disjointed.
• Parents pay by check, cash, or credit card for each
activity, and will submit paper, electronic or no
registration, signatures, waivers or permissions by mail,
in person, electronically or transport by backpack,
depending upon the activity or organization.
• This can be as many as hundreds of transactions per year
via different modalities.
5Confidential
The Solution
• Pay4SchoolStuff provides a multi-tiered, multi-
featured all-in-one platform for the collection
from parents of any payment and information
by schools and school-affiliated groups (PTA’s,
Booster Clubs, etc.)
• Customization, e-mail capabilities, a robust
database, and automated controls are
included for a one-time set-up fee.
6Confidential
The Solution
7Confidential
• Payment Partners, Inc. (PPI) incorporated in
Virginia in 2008
• Based in Falls Church
• Pay4SchoolStuffOnline piloted in 2009
• 150,000th in transaction in 2013
• 50,000+ Customers in Database
• Recognized in March 2013 as one of
Washington’s most promising emerging growth
companies
Pay4Stuff.com
• Cloned products specific to community group
markets will roll out in 2015, with
Pay4Stuff.com slated for early 2016
• All parent account holders will log onto
Pay4Stuff.com to complete transactions for all
child activities in one location—schools,
Greek, social, recreation, scout, swim and
sports organizations
8Confidential
Opportunity and Market
• Only an estimated 15-20 % of total payment
volume—$1 billion per day--is paid online
• Existing companies offer payment processing
(Paypal, Wepay, EZPay) or communication tools
(Constant Contact), but do NOT offer both in a
full service product to meet organizational needs
• Pay4Stuff seeks .5% of total market volume by
2019 and monetization of customer account
database beginning in 2016
9Confidential
Opportunity and Market
Confidential 10
Estimated Annual Group Volume - 2013
Market Est. Volume
Est. Population
Served
K-12 Schools $25-30 Billion 60 Million
Faith-Based $15-20 Billion 150 Million
Recreation $10-15 Billion 70 Million
Social $8-10 Billion 40 Million
Greek $8-10 Billion 30 Million
Other $6-10 Billion 60 Million
Total $72-95 Billion 410 Million
Sources: Pan-Hellenic Council, Payment Eye, 2013 Credit Card Industry Whitepaper
Technology
• PPI platforms are created using MySQL
• All products are 256-bit Secure Sockets Layer
encrypted, provided by GoDaddy
• Certified by TrustWave for compliance with
PCI DSS
• Authorize.net is back-end payment processor
currently but other processors with reduced
cost are in play
11Confidential
Unique Competitive Advantages
Pay4Stuff products are the only platforms
available on the market today to offer
organization leaders:
• The opportunity to customize their menu, control what,
when and how their items appear.
• Access for numerous stakeholders--to the same menu for
parents--with different logins and revenue streams
• Dozens of subcommittees or organizations from the
same institution the ability to provide items on one
seamless menu….parents go to one place!
12Confidential
Unique Competitive Advantage
• Pay4Stuff.com will allow parents to go to
one website and register, sign up, give
permission to and receive
communications from all
organizations/activities/clubs/groups that
all of their children--of any age—
participate in
13Confidential
Competitive Landscape
• Highly fragmented market with many processing
companies and related products compete in each
of these community group markets
• Most products in the school realm focus on lunch
payments or integrate with existing school district
software
• Pay4Stuff products seek to consolidate 501c3 and
community group payment/information needs to
help parents efficiently manage their children’s
activities and organizations manage their affairs.
14Confidential
Market Strategy
• Addition of Marketing/Sales Executive
• Monetization of each website through
commission partners and advertising space and
revenue potential of customer database
• Marketing through online ads, trade shows, local
media spots, print ads, targeted e-mail
distributions
• Local account representatives will be expanded
nationwide and coordinated by regional
marketing team
15Confidential
Financial Roadmap
• Pay4SchoolStuff will net $30K profit in 2014-
15 school year on a 10% increase of gross
revenues with no marketing or acquisition
costs, and reduced operating expenses
• Series A investment will provide capital
necessary to develop management team,
expand marketing efforts, and launch new
products
16Confidential
Financials ($000’s)
0
5
10
15
20
25
$100
$50
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2010 2011 2012 2013 2014* 2015* 2016* 2017*
Millions
Thousands
Operating Costs
Marketing Expense
Net Profit
Gross Revenues
17Confidential
The Team
• PPI is currently lead by Jay Bass, Founder and
President
• Additional Staff include developer, marketing
and social media coordinator, two account
executives
• Team will expand with investment round to
include Sales/Marketing V.P., Strategic
Consultant V.P., and Business/Accounting V.P.
18Confidential
Current Status
• Pay4SchoolStuff has increased throughput
volume by over 400% in four years with very
limited marketing resources and minimal staff
• The last two years have shown revenue
increases of 25% each year and corresponding
net profit increases of 25%
• Planned launches of cloned websites in the
next 24 months
19Confidential
Summary
• Unique e-commerce and e-management platforms
provide full service tool to community organizations
• Series round to support expansion and realization of
management team, support infrastructure,
marketing strategies, and business plan
• Marketing and revenue potential of extensive
customer account database is expected source of
large revenue stream
• Company goal is to sell business in 4-6 years
20Confidential

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Pitch workingcurrentcust

  • 1. Payment Partners, Inc. Investment Pitch July 2014 1Confidential
  • 2. Investment Summary • Payment Partners, Inc. is seeking a Series A round of $275,000 to support the realization of company goals • Capital will be used towards expansion of marketing efforts, deepening of the executive management team, and the launch and marketing of website platforms already in development • Expected 5 year IRR of 40%+ 2Confidential
  • 3. Overview • Pay4Stuff addresses organizational needs for payment collection for all school, club, recreation and other group activities • A series of products will serve specific community niches with Pay4Stuff.com as an umbrella site incorporating all products 3Confidential
  • 5. The Problem • The electronic payment of fees and the collection of information for community groups in the U.S. is disjointed. • Parents pay by check, cash, or credit card for each activity, and will submit paper, electronic or no registration, signatures, waivers or permissions by mail, in person, electronically or transport by backpack, depending upon the activity or organization. • This can be as many as hundreds of transactions per year via different modalities. 5Confidential
  • 6. The Solution • Pay4SchoolStuff provides a multi-tiered, multi- featured all-in-one platform for the collection from parents of any payment and information by schools and school-affiliated groups (PTA’s, Booster Clubs, etc.) • Customization, e-mail capabilities, a robust database, and automated controls are included for a one-time set-up fee. 6Confidential
  • 7. The Solution 7Confidential • Payment Partners, Inc. (PPI) incorporated in Virginia in 2008 • Based in Falls Church • Pay4SchoolStuffOnline piloted in 2009 • 150,000th in transaction in 2013 • 50,000+ Customers in Database • Recognized in March 2013 as one of Washington’s most promising emerging growth companies
  • 8. Pay4Stuff.com • Cloned products specific to community group markets will roll out in 2015, with Pay4Stuff.com slated for early 2016 • All parent account holders will log onto Pay4Stuff.com to complete transactions for all child activities in one location—schools, Greek, social, recreation, scout, swim and sports organizations 8Confidential
  • 9. Opportunity and Market • Only an estimated 15-20 % of total payment volume—$1 billion per day--is paid online • Existing companies offer payment processing (Paypal, Wepay, EZPay) or communication tools (Constant Contact), but do NOT offer both in a full service product to meet organizational needs • Pay4Stuff seeks .5% of total market volume by 2019 and monetization of customer account database beginning in 2016 9Confidential
  • 10. Opportunity and Market Confidential 10 Estimated Annual Group Volume - 2013 Market Est. Volume Est. Population Served K-12 Schools $25-30 Billion 60 Million Faith-Based $15-20 Billion 150 Million Recreation $10-15 Billion 70 Million Social $8-10 Billion 40 Million Greek $8-10 Billion 30 Million Other $6-10 Billion 60 Million Total $72-95 Billion 410 Million Sources: Pan-Hellenic Council, Payment Eye, 2013 Credit Card Industry Whitepaper
  • 11. Technology • PPI platforms are created using MySQL • All products are 256-bit Secure Sockets Layer encrypted, provided by GoDaddy • Certified by TrustWave for compliance with PCI DSS • Authorize.net is back-end payment processor currently but other processors with reduced cost are in play 11Confidential
  • 12. Unique Competitive Advantages Pay4Stuff products are the only platforms available on the market today to offer organization leaders: • The opportunity to customize their menu, control what, when and how their items appear. • Access for numerous stakeholders--to the same menu for parents--with different logins and revenue streams • Dozens of subcommittees or organizations from the same institution the ability to provide items on one seamless menu….parents go to one place! 12Confidential
  • 13. Unique Competitive Advantage • Pay4Stuff.com will allow parents to go to one website and register, sign up, give permission to and receive communications from all organizations/activities/clubs/groups that all of their children--of any age— participate in 13Confidential
  • 14. Competitive Landscape • Highly fragmented market with many processing companies and related products compete in each of these community group markets • Most products in the school realm focus on lunch payments or integrate with existing school district software • Pay4Stuff products seek to consolidate 501c3 and community group payment/information needs to help parents efficiently manage their children’s activities and organizations manage their affairs. 14Confidential
  • 15. Market Strategy • Addition of Marketing/Sales Executive • Monetization of each website through commission partners and advertising space and revenue potential of customer database • Marketing through online ads, trade shows, local media spots, print ads, targeted e-mail distributions • Local account representatives will be expanded nationwide and coordinated by regional marketing team 15Confidential
  • 16. Financial Roadmap • Pay4SchoolStuff will net $30K profit in 2014- 15 school year on a 10% increase of gross revenues with no marketing or acquisition costs, and reduced operating expenses • Series A investment will provide capital necessary to develop management team, expand marketing efforts, and launch new products 16Confidential
  • 17. Financials ($000’s) 0 5 10 15 20 25 $100 $50 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2010 2011 2012 2013 2014* 2015* 2016* 2017* Millions Thousands Operating Costs Marketing Expense Net Profit Gross Revenues 17Confidential
  • 18. The Team • PPI is currently lead by Jay Bass, Founder and President • Additional Staff include developer, marketing and social media coordinator, two account executives • Team will expand with investment round to include Sales/Marketing V.P., Strategic Consultant V.P., and Business/Accounting V.P. 18Confidential
  • 19. Current Status • Pay4SchoolStuff has increased throughput volume by over 400% in four years with very limited marketing resources and minimal staff • The last two years have shown revenue increases of 25% each year and corresponding net profit increases of 25% • Planned launches of cloned websites in the next 24 months 19Confidential
  • 20. Summary • Unique e-commerce and e-management platforms provide full service tool to community organizations • Series round to support expansion and realization of management team, support infrastructure, marketing strategies, and business plan • Marketing and revenue potential of extensive customer account database is expected source of large revenue stream • Company goal is to sell business in 4-6 years 20Confidential