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    DEXIT

    Uploaded by

    Ashish Dwivedi
    Dexit is an electronic payment system introduced in 2001 that uses RFID tags for low value transactions as an alternative to cash. It has yet to gain widespread adoption. The document analyzes opportunities for Dexit to target the growing electronic payment market, particularly for low-cost, high-frequency transactions. It proposes a pilot study in Toronto, followed by tests in Montreal and Vancouver if successful, to build awareness and usage among student and worker populations who could benefit from cashless, convenient transactions. Revenue options include licensing fees, equipment sales, and transaction fees. The goal is for Dexit to substitute cash for small purchases.

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    Download as PPTX, PDF, TXT or read online from Scribd

    DEXIT

    Uploaded by

    Ashish Dwivedi
    103 views13 pages
    Dexit is an electronic payment system introduced in 2001 that uses RFID tags for low value transactions as an alternative to cash. It has yet to gain widespread adoption. The document analyzes opportunities for Dexit to target the growing electronic payment market, particularly for low-cost, high-frequency transactions. It proposes a pilot study in Toronto, followed by tests in Montreal and Vancouver if successful, to build awareness and usage among student and worker populations who could benefit from cashless, convenient transactions. Revenue options include licensing fees, equipment sales, and transaction fees. The goal is for Dexit to substitute cash for small purchases.

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    Dexit is an electronic payment system introduced in 2001 that uses RFID tags for low value transactions as an alternative to cash. It has yet to gain widespread adoption. The document analyzes opportunities for Dexit to target the growing electronic payment market, particularly for low-cost, high-frequency transactions. It proposes a pilot study in Toronto, followed by tests in Montreal and Vancouver if successful, to build awareness and usage among student and worker populations who could benefit from cashless, convenient transactions. Revenue options include licensing fees, equipment sales, and transaction fees. The goal is for Dexit to substitute cash for small purchases.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    103 views13 pages

    DEXIT

    Uploaded by

    Ashish Dwivedi
    Dexit is an electronic payment system introduced in 2001 that uses RFID tags for low value transactions as an alternative to cash. It has yet to gain widespread adoption. The document analyzes opportunities for Dexit to target the growing electronic payment market, particularly for low-cost, high-frequency transactions. It proposes a pilot study in Toronto, followed by tests in Montreal and Vancouver if successful, to build awareness and usage among student and worker populations who could benefit from cashless, convenient transactions. Revenue options include licensing fees, equipment sales, and transaction fees. The goal is for Dexit to substitute cash for small purchases.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    DEXIT

    A Marketing Opportunity
    Group - 1

    Dexit - Overview

    Formed in 2001 CEO Renah Persofsky Provide an alternative to cash for low value transactions Introduced dexit tags to be used in conjunction with the reader using RFID Usage Low cost transactions Issue - how and who to target with their service?

    History of e-Cash

    1993 - Natwest and Midland bank found a company for capturing e-cash market

    About Mondex:

    Stored money as stand-alone e-info on a chip Payments could be made in person, via telephone or internet No signature or PIN required Could carry e-cash upto five currencies Flexibility to debit bank account or transfer e-cash stored on card

    Reasons for Failure


    Costly payment process Difficulty in linking it to royalty programs

    Scotiabank VisaCash card


    Favourable response from public High cost of hardware, hence nationwide rollout cancelled

    Electronic Payment Industry


    In 2002 market dominated by credit and debit card systems Cash remained the preferred choice for transactions Estimated market : Exhibit 3 Avg value of transactions lower than other countries and decreasing over the years : Exhibit 4 Market growing both by no of users and transactions : Exhibit 5 Ontario, Quebec and British Columbia are 3 greatest markets : Exhibit 6,7,8

    Why Dexit?
    Companys Perspective

    Consumers Perspective

    Merchants Perspective

    Growing Market Well suited for low value high frequency systems Smart checkouts Wider acceptance

    Faster than credit cards No more messing with coins Can track their transactions online Eliminates need for ATM withdrawls Better personal budgeting

    Lower cash-handling costs (both theft and shrinkage)


    Reduce line-ups Turn walk-aways into customers Reduced need to check for counterfeit money Faster Payments

    SWOT
    STRENGTH Reliable system Propriety system B2B and B2C target market Fast transactions WEAKNESS High consumer acquisition cost Expensive hardware for merchants High entry cost

    OPPORTUNITY Licensing of system (Royalties) Possibility to port the system to online sales Profit by substitute the cash market with e-cash so big competitors dont see it as a threat

    THREAT New entries Not yet reached critical mass (lack of awareness) Other technologies (mobile phones)

    Target Segment

    Approximately 17.6 million debit card users

    Ontario, Quebec, British Columbia are the top three markets for debit transaction
    Toronto, Montreal, Vancouver contributes to 30% of the respective provinces debit transactions

    Proposed Plan
    Pilot study Toronto If success Test in Montreal and Vancouver (As usage rates are high) If failure Try to understand the reason for failure and implement the changes

    Target customers

    Students (College Campus) Manual Labor who work for daily wages Industry workers (Blue and white collar) Hospitals Fast food restaurants and convenient stores Public Transportation (for getting tickets coin free/hassle free) Taxi Users Parking system

    Product Features

    In addition to keychain following forms could be introduced:


    Strip to be attached to items mostly carried ex. Mobiles, wallets Plastic cards I-cards

    Pricing Strategies

    Cost plus pricing Reasons:


    Low cost transactions High cost for infra and other costs ( 60%) Price based Differentiation from other potential competitors

    Promotion

    Posters in areas where low cost transaction takes place (near cash counters) Create a Buzz using the webpage by offering new attractive content everyday OOH Advertising, PR activities and focus on Viral/Guerilla Marketing rather than traditional advertising customer loyalty program - After every 20 transaction, get a coffee free at your favorite restaurant Trade promotion by offering equipment's free of cost to merchants to create a buzz within the merchant community

    Revenue Model - Options

    Merchants:

    Fees from merchants, based on a percentage of the transaction value.

    Organizations/Shops/Retailers:

    Licensing fees from organizations (royalties). Income from sales of Dexit point-of-sale terminals, RFID tags/readers

    Free offering in the initial stages and charging EMIs based on the number of transactiosn

    Customers:

    If Amount prepaid < $ 100 charge $ 2 as transaction fee Else Interest rates on prepaid accounts

    Future Plans

    Rollout nation wide marketing campaigns Partner with existing companies with have a large user base Create Mobile App (Emergence of smartphones)

    Thank You

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