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Paymatic (M) Sdn. Bhd

Innovative Hybrid Business e-Payment Solution

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

Date of last change: 19.08.2021
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Idea

We are Innovative Fintech Solution provider, our focus area is digitizing cheque and process it in almost real time. Our proposal is an Innovative Hybrid solution, whereby from SME’s perspectives it will be “Manual Cheque” that will address their “Customary“ requirement, whereas from Bank’s perspective it will operates within the “e-Payment Eco-System”.

Current Status

HeiTech Padu Berhad owns 10% equity in Paymatic (M) Sdn. Bhd. as strategic and technology partner. HeiTech Padu Berhad is global and leading Malaysian ICT provider that specializes in developing ICT systems and infrastructure for government and commercial sectors.
Together we have developed an Working Prototype and able to show case how exactly the Paymatic Solution works.
We have a regulation challenges and to address it, we have submitted our application to Malaysian Productivity Corporation (MPC) for a facilitation process.

For more details please read this article.
https://www.thesundaily.my/local/npgrp-to-ensure-a-more-efficient-public-sector-service-delivery-ksn-FF8142531

Market

Paymatic Solution caters for Business or Corporate who has high Cheque volume usage.

Problem or Opportunity

The current system cost RM 6.80 to process one manual cheque and the total cost to the Banking Industry is RM 680 Million yearly and this is based on Inter-Bank cheque transaction only and it takes 2 days to process one cheque.

Whereas Paymatic Solution can process one cheque at the cost of RM 0.50 in almost ‘Real Time’. With only 20% adoption rate it will generate savings of RM326 Million for the Banks and SME’s yearly and in five years it can generate a massive savings of RM1.6 Billion. At same time this will accelerate the full-fledged e-Payment adoption rate among the SME’s and the potential take up rate can increase from 20% to 40%.

Paymatic Solution also will stop approximately 20 million people from going to and from the bank to deposit the cheque yearly, the increase in productivity, efficiency and spill over benefit are unquantifiable.

The estimated market size in Malaysian is RM680 Million, whereas in United States it is multi-billion dollar (USD) industry and our initial target is to capture fraction of it with our IP.

Solution (product or service)

One of the greatest challenges for Malaysia in achieving full-fledged e-Payment agenda is the strong resistances from SME’s, which are mainly due their “Customary” requirement that tend to continue using manual cheque for internal documentation, post-dating and multiple signatory.
The introduction of Paymatic Solution will be a game changer which will able to blend and fulfill the requirements of SME’s of their “Customary” practices and the need to forge ahead with nation’s e-Payment agenda.

Paymatic Solution will be by far the leading FinTech solution providing fully electronic cheque issuance and depository system as compared to even the best practices already in place at advanced nations such as U.S. and U.K. which only removes the usage of Cheque Depositing Machine (CDM) in this regard.

Paymatic Solution allows SME’s to print their own cheque just like how large corporation print in pre-printed cheque paper. The salient feature of Paymatic Solution is, it prints on blank A4 size paper with QR Code at SME's premises by login to current SME Internet Banking platform.

Once authorized signatory sign the cheque manually, digitally or combination of both it will be deposited via smart phone. This cheque will be processed almost in Real-Time, this will be the most efficient and lowest in cost of cheque processing. The cheque will be stored digitally and completely eliminates storage and logistic cost that normally arise from manual paper cheque processing.

Competitors

MITEK System -San Francisco – Nasdaq Listed
https://www.miteksystems.com/

Fiserv - Wisconsin, USA - Nasdaq Listed
https://www.fiserv.com/

Advantages or differentiators

The competitors provide Cheque Deposit solution captures the manual cheque and send the image for processing which only removes the usage of Cheque Depositing Machine (CDM) in this regard.

Whereas our Paymatic Solution provide end to end from Cheque generation until completion of the transaction and our product position is to provide as complimentary or additional features to this solution.

Finance

1. In US there are 4,375 Banks and process 14.5 Billion Cheques in 2018.
2. Our Target penetration rate is 1% and with that our estimated Revenue for 5 years is $228,947,356
3. In 2018 US Banks lost USD 39 Billion in Check Fraud and Paymatic Solution can address this.
4. Google is looking at offering Checking A/C Solution to the consumer.
5. US Federal Reserve is targeting to rollout a FedNow solution to “Speed up Cheque processing in 2023-24.”

Business model

1. Paymatic Solution can meet the market requirement and we have filed for IP (PCT).
2. With filed IP, we proposed the solution in one of the banks or go to US and participating various Accelerator program such as Wells Fargo https://accelerator.wf.com/
3. In US, we will position our solution that will provide as additional feature on their existing Mobile Cheque Deposit App and target the corporate cheque users only.
4. Our deployment strategy is to hand over our Source Code to the Banks once the agreement is signed for them to integrate with their exiting Mobile Cheque Deposit App.
5. This integration will be seamless and it will be @ Zero Cost and only $0.50 cents chargeable for every transaction.

Money will be spent on

1) Salary (CEO, COO, Sr. Program, Programmer & Intern) = RM 393,240
2) Office Co-Space = RM 6,000
3) 5 Laptops = RM 30,000
4) Company Secretarial Fee = RM 5,000
5) Application Hosting Cost = RM 6,000
6) Est. IP Cost - US, UK, Canada, Australia & Malaysia = RM 25,000
7) Misc, Marketing, Expansion & Traveling = RM 34,760

Offer for investor

Paymatic (M) Sdn. Bhd. valued @ RM2 Million and for Investment of RM500K we would like to offer 25% equity in the company.

Risks

There could be 2 risk elements
1) Zero adoption rate by the Banks & Business Customer
2) Emergence new Technologies

Incubation/Acceleration programs accomplishment

No

Won the competition and other awards

Participated in Tech Source Pitching event and won 2nd placing https://techsaurce.co/en

Invention/Patent

Filled Patent in Malaysia & PCT on January 2019
Filing for Entering National Phase in USA & CANADA for PCT completed on 8th July 2021
Filing for Entering National Phase in UK & AUSTRALIA for PCT completed on 8th August 2021

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Idea
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Finance
Invested in previous rounds, $
Business model
Money will be spent on
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Risks
Incubation/Acceleration programs accomplishment
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Invention/Patent
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