The Business Case for BitMinutes

ICOs have come under considerable scrutiny over the last few months, as the number of initial coin offerings exploded and their valuations exhibited considerable volatility. In response, countries are stepping up regulation and marketing channels like Google and Facebook are banning ICO marketing campaigns. Both impulses are designed to protect consumers, and to protect the marketing channels themselves!

Too many ICOs have no strong business case behind them. There is no “there” there when you open the hood and inspect the engine. There is no good answer for “Why will my cryptocurrency be worth anything in two or three or ten years?”

At BitMinutes we welcome the increased scrutiny. We invite you to look under the hood, because our ICO supports a strong mission with a solid business plan. Our FinTech solutions are also already in motion, gaining traction in the marketplace.

McKinsey Confirms Marketplace Potential

In a recent article on McKinsey Quarterly, Management Consultant McKinsey & Co. offered a template for measuring the potential for profitably raising financial inclusion for two billion under-served people globally.

“Meeting the mobile money needs of the unbanked in emerging markets is a vast opportunity. To succeed, providers need a clear view on what drives mobile money economics, and an innovative mind-set.”

This is the same opportunity we saw four years ago when we started the development of BitMinutes as a token of exchange. And they see a tremendous market size, which translates into significant opportunities for new or established players to profitably run a digital financial service venture in these markets.

“Digital finance has the potential to reach over 1.6 billion new retail customers in emerging economies and to increase the volume of loans extended to individuals and businesses by $2.1 trillion. The providers of these products stand to gain by having access to potential new revenue streams, and to increase their balance sheets by as much as $4.2 trillion, in aggregate.”

BitMinutes is an early entrant into this huge market with our FinTech solutions, which makes us an early sailor on this blue ocean of opportunity.

*We have already embedded blockchain-based BitMinute solutions into a fee-free money transfer operation for US outbound remittances to East Africa, Mexico and Southeast Asia.

*We have the basic infrastructure ready to build a network of trusted agents (“TAN Agents”) who would be the “feet on the street” in these underserved communities.

*Corner stores or stalls would be converted into Corner Banks with the addition of a trained TAN Agent with a smartphone to provide “branch services” in place of dedicated brick-and-mortar banks.

*Middlemen who skim proceeds would find it hard to inject their hands into transactions that travel through the cloud from financial provider to customer through their mobile wallet.

McKinsey also asks the questions that interested partners (and purchasers of BitMinutes) should be asking as they assess joining our mission:

How will the mobile money value chain work in practice?

In our case, that question becomes “How will the Trusted Agent Network (TAN) operate in practice?”

*The key in each country is the partners with whom we have been forging agreements. Retailers who already have locations across each country are natural partners as TAN Agents.

*As was seen in the M-Pesa launch in Kenya, the recruitment of TAN Agents by other TAN Agents will also play a key role in making each country’s roll-out a success.

*Also, strategic relationships with established financial services providers enables rapid scale deployment and growth, as the TAN model solves for “last mile” issues.

What do we know about consumer behavior?

We know a fair amount, actually. The consumer side of the M-Pesa phenomenon provides a useful profile of potential behavior patterns, and the growth of prepaid airtime minutes as their increasing use as an informal currency (albeit within each mobile provider’s ecosystem) tells us that having a universal, formal currency tied to prepaid minutes, as BitMinutes are, could very quickly be adopted as a standard in driving consumer financial purchases and activity into the formal sector.

McKinsey also predicts that there will be economies of scale for providers who make the necessary investments in IT to provide digital financial services through mobile phones. Their estimate of a $1.5 million annual budget for maintaining an IT backbone after it is built represents a real opportunity for us. We have already built large parts of that backbone, and predict that we can deliver it for less than that McKinsey estimate.

This is critical to long-term profitability. The digital financial service delivery model is inexpensive to build and maintain. This is the real advantage we have over brick-and-mortar providers.

Each country will end up with a unique solution based on the partners within each that are willing to pursue the opportunity using BitMinutes’ technology.

“Success requires broad marketing and distribution, management of an agent sales force, systems and analytics, rapid product development, and financial intermediation…Today, no single type of provider — banks, MNOs, or Internet providers — has all of these skills.”

This is the market opening through which BitMinutes enters the stage…

Why will BitMinutes succeed in this blue ocean of opportunity?

For two key reasons:

*This is our core business. For other players financial inclusion is in competition with other opportunities that might generate better short-term returns. As McKinsey notes, “companies will look to participate in mobile money only in those ways that provide higher returns than the other opportunities that they have to grow their businesses.”

*We have a number of partners who are already working with us, or in negotiations to work with us, to provide the technology backbone that will raise the ROI of delivering financial services to these edge-of-the-financial-network communities.

We are incredibly pleased to have such a sound, well-thought-out analysis from a respected organization like McKinsey validate our mission.

If you are interested, read the report in more detail, and respond to us with questions that may arise. We want to answer all concerns and open issues for anyone interested in learning more.

Find us, our white paper and other information at

Clap, share, comment as you see fit. We look forward to the responses we may get. Thanks for reading!

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