Business Model

Paystack derives its income from its users, who use the platform for bill payment and Tax refund options. It deducts a fee of 1.4% from every bill payer. And for tax refunds, Paystack gathers revenue by deducting 2% of the actual tax refund amount returned by the Government at the end of the year.

The potential customers of Paystack for bill payment, as per the data from Market Adoption, is estimated to be around 40.3 million, combining all the bill payers from the USA, Australia and India. Total direct debit transactions made in the USA, Australia and India are $20billion, $1 billion and $1.1billion respectively which collectively results in 22.1 billion. The target revenue of paystack is estimated to be 2.21 billion which is 10% of total direct debit transactions of the USA, Australia and India. Paystack’s revenue per year is calculated as 1.4% of Target revenue which results in $30.9 million. The annual revenue being $30.9 million the estimated average revenue per user is $0.8.

For the tax refund feature of Paystack, the total taxpayers accumulated to be around 274 million with 200 million taxpayers from the USA, 14 million from Australia and 60 million from India. 10% of the total taxpayers that is 27.4 million is the target taxpayers of Paystack. And the target revenue from the target customers is estimated to be around $385 million, that is $240 million revenue from the USA, $75 million from Australia and $70 million from India. And the estimated average of revenue that is gathered per user is $14

Bill payment Potential customers = 40.03M from the data of Market Adoption Total direct debit transaction = 22.1B (USA -20B , AUS -1B , IND -1.1B) Target revenue (10% from total direct debit transactions) = USA=2B + AUS=100M + IND=110M = 2.21B Revenue per year = $30.9M (1.4% of Target Revenue) Average Revenue per user = $0.8

Tax Refund Total taxpayers = 274M (USA = 200M, AUS = 14M, India - 60M) Target tax payers (10% of total taxpayers) = 27.4 M Target revenue = 385M (USA - 240M, AUS - 75M, IND - 70M) Revenue per user = $14