TABLE OF CONTENTS
- Business Idea
- Market Overview & Trends
- Customer Selection
- Market Adoption
- Target Customers
- Finance Options
- Project Implementation
- Revenue Overview
- Income Statement
- Cash Flow Statement
MARKET OVERVIEW & TRENDS
- The Buy Now – Pay Later (BNPL) has shown a strong growth and development during the past few years.
- According to Saleforce data, the use of BNPL platform during the 2021 cyber week has jumped 29% with respect to the same period of previous year.
- Paypal CEO Dan Schulman, Declared during a CNCB interview that stated that during the black Friday, the increase of BNPL orders through their payment platform was reported to be about 400% in comparison to 2020.
- 4% of the total expenditures in the US during the black Friday was made through BNPL services
- Paypal recently announced a plan to acquire a Japanese fintech company whose name is Paidy, a well-established company in the BNPL market, for $ 2.7 billion
- According to market research reported by CNBC, the usual upmarket consumer has a salary of at least $ 75,000 and has enough credit to be approved for a credit card, and they might be strongly attracted the predictability of the loan installments BNPL offers
- According to Statista.com, the BNPL market is expected to reach volumes around $ 124 billion in 2024
PROJECT IMPLEMENTATION
1) Design of the function to be implemented;
2) Identification of strategic partners:
• Travel partners:
• Consumer credit companies;
• Financial companies.
3) Verification of feasibility of the initiative:
• Business Plan development, The main expenses will be:
> IT systems
> Marketing
> Commercial activities for the launch of the service, including the database acquisition for the pre scoring of the customers and the commercial profiling
> Human Resources
The source of revenues will be based on kickback system, Thanks to agreements with financial companies, We World will receive the fees for loans originated. The kickback system will generate an average of a 7% fee also from tour operators, hotel and cruise lines,
• Confirmation of the partner’s interest:
• Identification of financial needs and return for investors.
4) Definition of the agreements with partners and vehicle company incorporation;
5) Multimedia Platform implementation: computer and operating systems necessary to design, implementation and management of IT platform such as: software, apps, database, graphic designers and social media accounts.
6) Implementation of the organizational structure for the start up of We World
7) Marketing: marketing activities are crucial for the development of brand awareness and the creation of agreements with travel and financial partners such as: advertising on social media, newsletter, events with industry influencers and partners in order to obtain a larger user acquisition.
Marketing activities wiH be divided in two categories:
7a) Marketing activities for We World — Viaggi a rate — TktEasy brands
• Create a strong brand awareness:
• Build a good brand reputation:
• Obtain a large user acquisition;
• Develop an intense public engagement;
• Preserve a long lasting user retention.
7b) Co-marketing activities
• Associate brand to already well-known players and operative in funding and tourism industries;
• Take advantage of other parties visibility and reputation;
• Benefit from partners’ target customers and market share.
8) Go Live
ADDITIONAL LINE OF BUSINESS
The idea of adding an additional business line has the purpose of expanding the firm’s business horizons.
As a matter of fact, the target audience for this additional activity has been identified in high-spending people, not only travelers.
Therefore, as the company’s name suggests, We World might function as an agglomerate of the most important worldwide luxury brands in the fields of electronics and fashion.
In fact, after an initial period of activity, We World will be able to build an internal database of clients’ spending average, geographical location, nationality, and age, in order to have a deep understanding of its clients’ behavioral attitudes.
As a matter of act, this activity will be essential in selecting the most appropriate brands and products for our clients.
The next step or even the complete revision of the business model, always following the logic of what has been explained so far, could be the start of We World Pay. A financial entity capable of providing consumer credit with a clearly innovative formula compared to the now traditional Klarna, Affirm, Afterpay, Scalapay, Sezzle, Zip etc.
At check out, the customer will be invited to choose the financing which better suits his needs with just few clicks more, and the We World proprietary software linked with the financing entity API will disclose the monthly instalment rate
We assume the principle that those who finance a purchase in 3 or 4 interest-free installments with Klarna or others do not solve any real problems of lack of liquidity, but only carry a nice marketing exercise; in the future, in our opinion, there will be an
ever-increasing percentage of people who will need to purchase more and more items, especially luxury goods, in installments and conscious to pay normal interest rates.
Those who propose We World Pay have studied the various trends of this market since 2001, the year in which Passepartout Italy registered the domain www.viaggiarate.it, precisely to launch a platform capable of booking and finance travel; but Italy is still not the best country for this type of activity, having in theory also an high percentage of non-payers.
It is clear that a platform like We World Pay capable of receiving good commissions from suppliers of consumer goods (on average from 3 to 5%) and from the spread between active and passive interest rates (easily around 10%) could generate frightening profits able to carry on both significant liquidity in a short time and reserves to cover any losses from bad payers.
A potential partner investor could count on ready software, market researches and highly skilled human resources from the banking system ready to embrace this worldwide limitless project
