Market Validation
USA
| Bill Payment | Total Direct Debit transactions | 20 billion |
| Target Revenue(10% of total Direct debit Transactions) | 2 billion | |
| Revenue per year(1.4%) | $28 million | |
| Tax Refund | Total taxpayers | 200 million |
| Target taxpayers(10% for three years) | 20 million | |
| Target Revenue (20M * $12) | $240 million |
The estimated revenue per user per year through tax refunds is $12.
In the USA, there is a Total Direct Debit Transactions of 20 billion for bill payment services, out of which 2 billion are considered Target Revenue. While the revenue generated per year from the target customers alone amounts to $28 million which is 1.4% of our target revenue in initial years.
For the tax credit function, there are 200 million eligible taxpayers in the USA, out of which 20 million are target customers for Paystack. Revenue from each target customer is approximately $12 dollars, then Paystack stands to earn around $240 million from this segment.
Australia
| Bill Payment | Total Direct Debit transactions | $1 billion |
| Target Revenue(10% of total Direct debit Transactions) | $100 million | |
| Revenue per year(1.4% from target revenue) | $1.4 million | |
| Tax Credit | Total taxpayers | 14 million |
| Target taxpayers(10% for three years) | 1.4 million | |
| Target Revenue (1.4M * $54) | $75 million |
The estimated revenue per user per year through tax refunds is $54.
In Australia, there is a Total Direct Debit Transactions of $1 billion, with $100 million being Target Revenue. While, the revenue generated per year from the target customers alone amounts to $1.4 million which is 1.4% of our target revenue in initial years.
For the tax credit function, the total number of taxpayers in Australia is 14 million, with 1.4 million being target customers for Paystack. Revenue from each target customer is approximately $54 dollars, then Paystack stands to earn around $75 million from this segment.
India
| Bill Payment | Total Direct Debit transactions | $1.1 billion |
| Target Revenue(10% of total Direct debit Transactions) | $110 million | |
| Revenue per year(1.4% from target revenue) | $1.5 million | |
| Tax Credit | Total taxpayers | 60 million |
| Target taxpayers(10% for three years) | 6 million | |
| Target Revenue (6M * $11) | $70 million |
The revenue generated per target customer is $11.
There is a Total Direct Debit Transactions of $1.1 billion in India, with $110 million being Target Revenue. While, the revenue/year from each user of the target customers amounts to $1.5 million which is 1.4% of our target revenue at the early phase.
For the tax credit function, the total number of taxpayers in India is 60 million, from which Paystack holds 6 million as target. Revenue from each target customer is approximately $11 dollars, then Paystack stands to earn around $70 million from this segment.
Total Revenue of Paystack
Total Revenue of Paystack in the USA
The total revenue for Paystack per year in the USA for bill payment feature is estimated to be around $28 million USD which is 1.4% of our target revenue. The target revenue of Paystack is 10% of the total direct debit transactions that is 10% of 20 billion which results in the value of 2 billion.
The target revenue estimated for Paystack in the USA for the tax refund feature is $240 million USD with a revenue of $12 USD per target taxpayers. The target taxpayers for Paystack at the initial stage is around 10% of the total taxpayers in the USA; that is 10% of 200 million taxpayers which is 20 million taxpayers.
Total Revenue of Paystack in Australia:
The total revenue of Paystack per year in Australia is obtained from the target revenue, which is 10% of the total direct debit transactions, which is 10% of $1 billion USD, or $100 million USD. From this target revenue, Paystack’s revenue is estimated to be around $1.4 million USD, which is 1.4% of the target revenue.
For Tax refund, the target revenue is estimated based on the number of target taxpayers in Australia, which is 10% of the total taxpayers in the country. The target taxpayers are 1.4 million, which is 10% of the total taxpayers in Australia. With this data, Paystack is estimated to earn a revenue of about $75 million USD, with a revenue of $54 USD per user.
Total Revenue of Paystack in India:
For the bill payment feature provided by Paystack, the revenue that is estimated to be generated by Paystack is around $1.5 million, which is 1.4% of the target revenue. The target revenue of Paystack is 10% of the total direct debit transactions, which results in 10% of $1 billion USD or $110 million USD.
The target revenue of the Paystack for Tax refund depends on the amount of taxpayers targeted by Paystack. Out of 60 million taxpayers in India Paystack targets a mass of 10% taxpayers that is 6 million taxpayers for an initial stage of 3 years. And the revenue from the target taxpayers would be around $70 million USD with a revenue of $11 from every customers.