1.1 The Problem
Digital payments are expected to be a US$3.6 Trillion industry in 2018, growing at a CAGR of 13.5%
through 20221. The majority of this growth is a result of a surge in digital content and e-commerce,
however, the market is changing quickly as commerce shifts to smartphones, the number of consumers
in emerging markets overtake developed markets, and blockchain technology decentralizes everything.
The incumbent stores for content and commerce have failed the small independent sellers with their
The top 1% of content developers dominate 94% of the total revenues on Apple app store;
App and e-commerce store fees and marketing fees leave merchants with less than 50% of net revenues;
Most app stores and e-commerce stores only accept international credit cards however this excludes
the largest and fastest growing regions and emerging markets, representing up to 85% of the world’s
App stores and e-commerce sites have unfair policies for merchants: 2 weeks to 3 months to get paid
on sales; the only payment methods available are PayPal and bank transfers, chargeback fees, high
foreign exchange charges, and bad debt fees passed through.