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krip

Hong Kong’s first centralized credit card rewards platform

China
Market: Financial services
Stage of the project: Prototype or product is ready

Date of last change: 12.07.2020
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Idea

krip is Hong Kong’s first centralized credit card rewards platform. We solve a key pain point in the credit card sector: data inaccessibility. Current solutions are hard to use, single-bank focused, and scattered in rewards coverage. As a result, consumers cannot easily discover rewards, banks lose potential credit card revenues, and merchants yield low returns on marketing. krip solves this by centralizing and standardizing data from 22 banks to present 6,000 credit card rewards on one application. Our focus on data accessibility maximizes rewards awareness, creating economic value for all.

Current Status

Our original plan was to launch the beta version of our web application in Q1 2020, but due to the coronavirus outbreak, we decided to postpone beta launch to this summer. During this time, we conducted extensive testing to improve our product ahead of launch.

Prior to the coronavirus outbreak, we launched our landing page and achieved strong momentum solely via word-of-mouth, resulting in us receiving inbound inquiry from a reputable venture capital fund in Europe.

Market

Our target customers are the three main stakeholders in the credit card ecosystem: consumers, merchants and financial institutions, particularly retail banks and network companies.

krip is positioned as a complementary ecosystem enabler in the credit card market, bringing economic benefits to all three stakeholders. By creating a centralized credit card rewards platform, consumers benefit from easier access to rewards, merchants benefit from increased sales traffic, and financial institutions benefit from increased credit card transactions and brand awareness.

Our platform aims to drive a virtuous cycle by aligning the interests of all three stakeholders such that everyone benefits. To achieve this, we will work closely with financial institutions to identify core target consumer segments, and understand who can benefit the most from different types of credit card rewards, in accordance with each of the financial institutions’ product strategies.

Problem or Opportunity

With krip’s centralized rewards platform, banks and network companies can more effectively market their credit card rewards to consumers and increase awareness for their brands and credit card products.

In Hong Kong where US$75 billion of retail spending was transacted through credit cards in 2019, financial institutions rely on credit cards as a major revenue source. However, existing solutions are so difficult to use that consumers remain unaware of all the credit card rewards available to them.

Through krip, financial institutions will benefit from increased consumer awareness, which sets in motion numerous key revenue drivers. First, increased credit card transactions lead to growth in credit card revenues from interchange fees and other card-related fees. Second, more potential customers will consider applying for credit card products which will grow both consumer base and market presence. Third and most importantly, increased brand awareness allows financial institutions to more effectively integrate existing and new customers into their wider ecosystems. This leads to an increase in customer lifetime values by cross-selling and up-selling other financial products and solutions.

In a highly competitive credit card market, rewards serve as the most attractive marketing strategy to encourage sustained credit card usage. By refocusing the light on credit card rewards, krip helps financial institutions drive brand awareness to deliver long-term economic returns.

Solution (product or service)

krip is a platform that centralizes all credit card rewards in Hong Kong. Our platform allows users to search and explore thousands of rewards based on their credit cards for a personalized user experience. Users can also use krip to discover new credit cards, rewards and merchants.

These rewards currently remain hidden behind existing solutions that lack innovation and are difficult to use. We solve the pain point by centralizing credit cards, rewards and merchants data into one single backend database for structuring and standardization. This process lays the foundation for our frontend web application that is personalized for each user based on their credit cards. krip also features rewards recommendations and filter functions to help users explore rewards across multiple categories for a seamless user journey.

Our product aims to create a transparent credit cards ecosystem that delivers real economic benefits to consumers, financial institutions, and merchants.

Competitors

krip is Hong Kong’s first platform with a comprehensive, standardized and personalized database of credit card rewards across all banks. Currently, consumers can only digitally access credit card rewards through three avenues.

First, financial institutions offer in-house products for consumers to access their rewards. Although they have extensive rewards coverage, each financial institution’s product only covers its own rewards information. They are difficult to use and do not give users a personalized experience.

Second, comparison sites like MoneyHero offer credit card information but only specific to their features and sign-on bonuses. Only popular cards are included with limited coverage of rewards. In contrast, krip covers every single credit card along with each card’s entire suite of rewards.

Third, there are blogs and forums where consumers discuss credit card promotions. These platforms offer limited coverage with no meaningful structure, serving more as social platforms.

Advantages or differentiators

krip is delivering a first-of-its-kind product that offers many advantages compared to existing solutions in the market.

First, krip is the first platform to comprehensively cover all credit card rewards offered by all banks in Hong Kong. In a city where the average consumer carries three credit cards from multiple credit card issuers, we offer a one-stop solution for consumers to access all rewards they are entitled to.

Second, krip is personalized for each user based on the user’s credit cards. Our extensive database of 470+ unique credit cards ensures each user journey on our application is custom tailored for the individual user, thereby removing irrelevant information distracting to the user experience.

Third, our frontend web application is designed to be optimized for both desktop and mobile with filter options to help users explore the rewards database by categories, locations and reward types.

Finance

We have a two-phased strategy for revenue generation.

The first phase focuses on user attraction and retention through our web and mobile applications. Revenue generation will be driven through native advertisements in the form of search results ranking and impressions advertisements. This gives financial institutions and merchants the opportunity to market their credit card products and rewards directly to existing and new customers on a platform specifically designed to showcase their credit card rewards. Our applications are also integrated with data analytics tools to study detailed user behavior patterns to provide insights to our partners on how to better optimize rewards offerings to drive consumer awareness and credit card transactions.

The second phase focuses on partnerships with online platforms that can benefit from a comprehensive set of credit card rewards data to support their user attraction and retention strategies. This includes restaurant booking, cinema ticket booking, hotel dining, credit card comparison, travel and online retailer sites in Hong Kong. Rewards data will be provided to third-party partners via our proprietary set of API protocols. Revenue generation will be based on a software-as-a-service (“SaaS”) model, through a combination of tiered subscription pricing model and volume-based pricing model based on number of API calls.

Business model

Our development plan is comprised of two phases, each addressing a pain point specific to consumers and merchants.

In the first phase, our web and mobile applications deliver a B2C solution to consumers that increases their awareness of credit card rewards they have access to with their credit cards. We also plan to work with banks and network companies to explore integration opportunities to provide credit card rewards and promotions in real-time.

In the second phase, our proprietary API B2B solution delivers comprehensive credit card rewards data to third-party partners, who can use this information to attract and retain their own customers. For example, a restaurant booking platform like OpenRice can use this data to display restaurant-specific rewards that can be highly beneficial to their users.
Throughout our development plan, financial institutions will benefit from increased awareness from consumers and merchants alike, driving increased credit card usage and revenues.

Money will be spent on

Of the $155,000 we seek to raise, $110,000 will be used to hire a full-time CTO to lead our tech development and an operations & business development manager to lead our partnership initiatives. A further $22,500 will be spent on a co-working office space to support our team’s expansion. Finally, the remaining balance of $22,500 will be spent on product marketing and other administrative costs.

Offer for investor

We are offering common equity in exchange for funding.

Team or Management

Risks

Hong Kong is facing unprecedented macro headwinds in the form of the global coronavirus outbreak. It has had significant impact on retail businesses and may impact our success.

Incubation/Acceleration programs accomplishment

We have not participated in an incubation or accelerator program.

Won the competition and other awards

We have not participated in a competition.

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video