Fantom Confidential — 5. Fantom Pay Use Case Proposals

After thorough research and simulation of business opportunities and viability, we recognized that the model of Fantom Pay we had in mind previously was not sustainable in becoming a successful business.

Therefore, Fantom Innovation Team, after further consideration proposes two possible model in which we can integrate Fantom Pay.

1. The Buy Now, Pay Later Model


The Buy Now, Pay Later business model provides an opportunity for its users to purchase products now and pay for them in installments over a set period of time.

Unique Selling Points

  • Customers can access up to $1,000 credit within minutes, without a traditional credit check.
  • Customers can buy now, and pay in 4 installments, interest free.
  • Merchants can increase sales by providing an additional payment option.
  • Merchants can select specific goods for this payment segment.
  • Increase merchant sales: in 2017 AfterPay was responsible for 30% increase in merchant sales. AfterPay’s rapid success and adoption has been due to the direct and immediate sale growth that they have delivered to their merchant base.

Key Players in Australia in 2017 (All values in AUD unless specified)

Opportunities in the South Korean Market

Fashion Retailers

Customers can buy goods and pay later. In using FPay e-commerce plugin, a customer lands to the checkout, they can pay immediately or choose FPay to pay later. The customers can pay in fiat or in cryptocurrencies. In a physical store, the FPay mobile app will allow a customer to pay for goods using the FPay mobile app with crypto enabled payment solution and also the Buy now Pay later facility.

Target high-turnover fashion retailers, fashion franchises, and department stores use a similar go-to-market strategy as the Australian providers mentioned above with the goal of replicating their success milestones both in merchant acquisition and consumer spending as percentage of merchant revenue.

Pilot: 1 Fashion Retail Franchise with 50 stores


Average revenue per store (per year): $1M (based on Australian market data)

Combined store revenue: $50M

2 Year Market share goal: 5% of transactional value ($2.5)

FantomPay Pilot captures 5% of existing sales and new sales combined

Note: AfterPay increase their merchant sales by 30%

All values in this model are in AUD

The business model (revenue stream)

Commission from retailers 30 cents/transaction + 4–6% per sale from the merchant

Monthly fee from users ( $0 to $5 per user)

Late Payment Fees ( $5 to $10 per transaction)

Average spend per transaction: $100

Number of transactions: $2.5M/$100 = 25,000

Late payment fees: 10% of total revenue


We are also exploring (market opportunities) for a pay by installments model of bills, where instead of paying in lump sums or phoning providers to try and find alternative ways to pay off in installments, customers can pay off all their credit card providers and lump sum bills with crypto/fiat in installments via the Fantom Pay app. We are investigating majority pain points of these crypto bill paying off customers and their habits to find a niche product opportunity.

Buy Now Pay Later Market into Korea — Research Needed

Korean BuyNowPayLater competitors

What are the regulatory requirements?

What are the financial licensing requirements?

Are their credit limit regulation considerations

  • EG. Over $1000 = remittance license

Banking relationships

  • API integration?
  • Commercial/contractual relationship to access data, if accessing data?

Any other requirements?

Merchant requirements

  • POS
  • Physical or online?
  • Any legal and/or financial requirements

Consumer requirements?

  • Credit card and/or bank linked to BuyNowPayLater Provider

Research and create target merchant segments (physical & online)

  • Franchises : store numbers- 50–200; 200–400; 400–600; 600+
  • Department stores
  • Chain stores
  • Malls
  • Independent online stores

Identify revenue opportunities per target merchant segments based on their store(s) revenue as defined by

  • 1% client market share after 18 months
  • 5% market share after 36 months

Technology Requirements


  • Shopping platform
  • Shopping cart platform
  • Payment providers
  • Can it enable Bar-Code/Q-Code integration?


  • POS System & operators
  • List all current payment providers
  • Can it enable Bar-Code/Q-Code integration?
  • Can POS support phone tap to pay at counter

Note: This is After Pay process:

Risks and Limitations

Clamp down by authorities

Buy now pay later schemes which has been successful in Australia are coming under greater scrutiny by regulatory authorities such as in Australia where ASIC (Australian Securities Investment Commission) have flagged companies in that industry for close scrutiny. This potentially could lead to the limiting and or shutdown of such businesses. This needs further and ongoing investigation and collaboration with the relevant authorities and regulators in this industry.

Licensing and regulatory requirements

This will vary from country to country and requires further investigation. This should include costs of any such license(s) into a full financial model of the chosen path.

Customer need

This will vary from country to country and requires further investigation. While it has had a huge uptake in Australia this may not be the case in other countries.

Cost vs benefit

Costs including any licenses as noted above need to be included in a full financial model to determine viability of the selected business.

2. Fantom Tertiary Student Credit Rating

One of the growing challenges of students is accessing credit for personal care and home loans.

In our research into the success of the Buy Now Pay Later model, one of the core drivers to their exponential growth was the ability for their customers to access credit without undergoing a credit check.

Access to credit is a core drivers to economic prosperity but one of the major hurdles for students to access for covering their university related expenses and daily living costs. Additionally, and possibly even more important is the need for students to have sufficient credit history to apply successfully for loans once they leave university and enter the workforce.

The opportunity we have identified is to create a credit-agency specifically targeting the student market and incorporating the Fantom Pay mobile payment solution as the core mechanism to implement this solution.

Students will connect their existing bank accounts to Fantom Pay and any and all expenses paid using Fantom Pay will earn them points towards their credit rating. Fantom Pay becomes the ‘must-have’ app for students wanting to build a credit score.

By partnering with all on-campus merchants, and off-campus university partners we will be entering a student-market place with a compelling use case for quick adoption.

Revenue Streams

In addition to merchant fees, we could include:

  • Referral Fees to loan applications (partner with bank/lender)
  • Personal & car loans during university
  • Home loans
  • Affiliate revenue from commercial partnerships
  • Credit score reports and other value added internal features

Use Case

  • Students could even process all of their student payments, during and/or post university, including FEE Help via the app, to help improve their credit score
  • Promoting a regular user as benefits are tangible

Pilot Cases

Fantom has partnerships with Universities in both Australia and Korea

  • Australia: University of Sydney
  • South Korea: Yonsei University

*Average Spending includes:

i. On-Campus F&B, books, resources, entertainment, union fees, facility use

ii. Off-campus Uni-Partner goods & services

All values in the table are in AUD

Further Study Required

How many students know about credit systems, their benefits, want to use it or are using one.

Existing student credit rating/report agency or business

  • List any published partnership with banks and money lenders
  • List all credit rating agencies and related credit businesses

Credit score business (eg:

Peer to Peer Lending

Small personal loans targeting student and youth markets

  • List all required credit rating licenses — government, financial, other- what do we need to operate
  • Any credit agency related associations
  • University research

Student numbers on & off campus

Is there any student union? If so, is it compulsory?

Number of on-campus merchants

  • student fees & associated costs

Student fees — Total annual amount (government data) break down by university (if published)

School fee providers — parents, government, or University loan system, other

How are fees paid — Pay As You Go, Annually, Quarterly, Post-Graduation against salary, other

  • Student Fee loans providers — list

Risks and Limitations

Clamp down by Authorities

Being a new type of credit agency affecting students, there could be issues with authorities if not operated and meeting regulations of the country.

Licensing and Regulatory requirements

This will vary from country to country and requires further investigation. E.g. In South Korea what are the requirements for becoming a credit agency. This should include costs of any such license(s) into a full financial model of the chosen path.

Customer need

This will vary from country to country and requires further investigation. Do students really need this service or are they already well serviced by existing channels?

Educational ( inc. Tertiary) Institution requirements

This will vary from country to country and requires further investigation. What do these institutions require of such agencies?

Merchant requirements

This will vary from country to country and requires further investigation. What do merchants require of such credit agencies?

Cost vs benefits

Costs including any licenses as noted above need to be included in a full financial model to determine viability of the selected business.

Fantom Confidential Series was intended to show our commitment to transparency. We felt that releasing our internal memos and documents were a way of sharing not only our good results but our trial processes as well.

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