TapChange™
Revolutionizing Microtransactions
Every cent counts.
Business Plan
Executive Summary
TapChange™ is a lean, scalable platform enabling instant microtransactions via NFC and QR-code technology. We empower creators, gig workers, and small businesses to thrive in a cashless economy.
- Innovative payment solution for the gig economy
- Seamless integration with existing payment systems
- Targeting a $235.7 billion market by 2028
- Projected 24x revenue growth in 5 years
Market Opportunity
The digital payments market is experiencing rapid growth, presenting a significant opportunity for TapChange™.
- Current market size (2023): $116 billion
- Projected CAGR: 15.2%
- Estimated market size by 2028: $235.7 billion
With the growing trend of digital transactions and the increasing demand for efficient micropayment solutions, TapChange™ is well-positioned to capture a significant portion of this expanding market.
Competitive Advantage
- NFC-enabled devices for seamless transactions
- Low-friction payment flows optimized for micropayments
- AI-driven lean operations for cost minimization
- Targeted niche marketing strategies
Comparative Analysis
Payee Retention
Payee Retention for Micropayments (in $)
Platform Revenue
Platform Revenue Comparison (in $)
Key Insights
- TapChange™ Efficiency: We intentionally retain less per transaction compared to competitors, allowing for higher payee earnings.
- Micropayments Advantage: Our earnings structure is optimized for micropayments, with a significantly lower take on small transactions compared to other platforms.
- Apple Pay Contrast: Apple Pay's standard fee structure results in the highest platform earnings but the lowest (sometimes negative) payee retention for micropayments.
- Balanced Approach: Our model demonstrates a balance between platform sustainability and maximizing value for users, particularly in the micropayments space.
Financial Overview
Revenue Streams
Revenue Streams
- Transaction Fees: 5.5% per transaction
- Subscription Revenue: $10/month (starting Year 3, 10% of customers)
- NFC Device Sales: $5-$15 each
Key Metrics
- Average Transaction Value (ATV): $2.00
- Transactions per Customer per Month (T/C/M): Starting at 100, increasing 10% annually
- Customer Growth: From 10,000 in Year 1 to 120,000 in Year 5 (65% CAGR)
- New Customer Acquisition: 10,000 to 40,000 per year
- Cost per Acquisition (CAC): Starts at $30/customer, decreases to $20/customer by Year 5
Operational Costs
- Payment Processing Fees: 1.5% of Gross Volume + $0.01 per transaction
- Cloud Infrastructure: Starting at $5,000/month, doubling annually
- Compliance and Security: $50,000 annually
- Development and Maintenance: $180,000–$420,000 annually
- AI-Supported Customer Service:
- Initial setup costs: $30,000 in Year 1
- Ongoing costs: $8,600–$21,000/month depending on customer growth
- Marketing and User Acquisition: CAC starting at $30, decreasing to $20 by Year 5
5-Year Financial Projections
| Year | Customers | T/C/M | Total Transactions (M) | Gross Volume ($M) | Total Revenue ($M) | Total Costs ($M) | Profit ($M) |
|---|---|---|---|---|---|---|---|
| 1 | 10 | 100 | 12 | 24 | 1 | 1 | -0 |
| 2 | 25 | 110 | 33 | 66 | 4 | 3 | 1 |
| 3 | 50 | 120 | 72 | 144 | 9 | 4 | 5 |
| 4 | 80 | 130 | 125 | 250 | 15 | 7 | 8 |
| 5 | 120 | 140 | 202 | 403 | 24 | 10 | 13 |
Traction Plan
Our strategic roadmap for growth and scaling TapChange™ over the next 5 years.
Timeline
Year 1
MVP Launch
Year 2
Growth
Year 3
Scaling Y1
Year 4
Scaling Y2
Year 5
Scaling Y3
User Growth
Revenue and Profit Projection
Key Milestones
- MVP Launch: Achieve 10,000 active users and $1.32M in revenue
- Growth Phase: Expand to 25,000 users and reach $3.63M in revenue
- Scaling Year 1: Hit 50,000 users and $8.52M in revenue
- Scaling Year 2: Grow to 80,000 users and $14.69M in revenue
- Scaling Year 3: Reach 120,000 users and $23.62M in revenue milestone
Investment Opportunity
Investment Ask
Seeking $750K for 10% equity
Join us in revolutionizing microtransactions and shaping the future of digital payments.
Use of Funds Breakdown
| MVP Development & Infrastructure | 150,000 | 20% | AI-supported development, cloud infrastructure setup (AWS), and integration of payment processing systems. |
| Marketing & User Acquisition | 200,000 | 26.7% | Digital advertising, influencer partnerships, referral incentives, and campaigns targeting creators and gig workers. |
| AI-Supported Customer Service | 100,000 | 13.3% | Setup costs for AI-powered chatbots ($30,000) and 6 months of ongoing AI operational costs ($70,000). |
| Salaries for Core Team (4 Staff) | 150,000 | 20% | First 6 months at $50,000 per person annually (4 staff) to manage operations, marketing, and development; transitions to $100,000/year post-revenue. |
| Compliance & Security | 100,000 | 13.3% | Ensuring PCI DSS, KYC, and AML compliance; fraud detection and data encryption; annual audits. |
| Contingency Fund | 50,000 | 6.7% | Reserved for unforeseen expenses or scaling needs. |
| Total | 750,000 | 100% |
Key Points
Focus on Scalability
A significant portion of funds is allocated to marketing and infrastructure to support early growth and scaling.
Lean Operations
Salaries and AI-based customer support costs remain efficient while ensuring high-quality operations.
Market Penetration
The marketing allocation drives user acquisition, targeting underserved niches for rapid adoption.
Compliance and Trust
Robust investment in compliance ensures secure, reliable transactions, critical for customer and investor confidence.
Tech Stack*
Front-End & User Interaction
- React.js for web interfaces
- React Native for mobile apps
- Next.js for server-side rendering
- Redux for state management
- Material-UI for UI components
- Apple Pay/Google Pay SDKs
- QR Code Generator
- Accessibility (WCAG 2.1 compliant)
Back-End & Data Management
- Node.js & Express.js
- GraphQL for flexible API queries
- PostgreSQL via AWS RDS
- Redis via AWS ElastiCache
- Sequelize ORM
- JWT & OAuth2 for auth
- Webhooks for real-time updates
Cloud Infrastructure
- AWS Lambda for serverless functions
- AWS API Gateway for API management
- AWS S3 for static asset storage
- AWS CloudFront for content delivery
- AWS ECS for containerization
- AWS SQS for message queuing
- AWS WAF for web app protection
- AWS Route 53 for DNS management
Security & Compliance
- AES-256 encryption at rest
- TLS 1.3 encryption in transit
- Quarterly security audits
- PCI DSS, GDPR, CCPA compliance
- Multi-factor authentication (MFA)
- Regular security training
Analytics & Monitoring
- Google Analytics for usage patterns
- Mixpanel for funnel analysis
- New Relic for performance monitoring
- AWS CloudWatch for infrastructure
- Sentry for error tracking
DevOps & CI/CD
- Git & GitHub for version control
- GitHub Actions for CI/CD
- AWS CodePipeline for releases
- Terraform for infrastructure as code
- Docker for containerization
Scalability & Performance
- AWS Elastic Load Balancing
- Auto-scaling groups
- Redis for caching
- Database read replicas
- Database sharding
Future Tech Considerations
- Blockchain (Ethereum/Hyperledger)
- AI/ML with AWS SageMaker
- IoT integration for smart devices
- Expanded payment integrations
- Accounting software APIs
*possible service providers