I ran across this in a Fintech chat room and thought it was interesting.
KindCard (OTC:KCRD) subsidiary Deb, Inc. (Pay With Deb) provides Businesses classified by acquiring Banks and Credit Card Processors as “High Risk” the ability to access Financial Services, providing universal payment access for all businesses creating a secure, compliant and competitive method to do business online and in-store!
Deb has built out a unique platform that includes (2) proprietary components, not found today combined together in the processing world, allowing consumers to securely to make purchases and merchants to settle transactions virtually eliminating disputes leading to chargebacks and card acquirers to shut down acceptance of credit card payments :
Deb “PayWithDeb” Wallet APP
This very secure wallet is available today in the Apple and Google Store for consumers to download and to make purchases wherever Deb is accepted . It has unique features allowing the consumer to quickly download the wallet just using their name, email address and phone # for the first transaction up to $500. After the first transaction the consumer is incentivized to complete a full KYC on Deb truly identifying them via iDScan and two-step authentication, technology that is used today by all Banks. Once completed the consumer can then load their Deb Wallet via ACH (directly from their bank account) and all major credit cards at no cost to them.
Value To Consumer:
-Secure quick method to load funds to make purchases online
-Consumer anonymity to where purchases are made
-Significant merchant discounts and promotions due to lower payment costs
- Simple online method to dispute a charge where goods or services are in dispute
Deb Merchant Closed Loop Platform
The PayWithDeb merchant closed loop proprietary platform is built from the ground up to allow merchants to download to their point-of-sale system or integrate to their online shopping cart seamlessly. This will allow them to accept the PayWithDeb App for purchases of goods and services as an alternative to the costly acceptance of all major credit cards at a significant savings.
Value To Merchants
-A more secure method of payment allowing for less online fraudsters
-Funds settlement to merchant account in less than 24 hours
-Less issues with consumer disputes/chargebacks since transactions are double authenticated quickly between merchant and consumer.
-Eliminates processor shut down of merchant due to fraud and chargebacks as Deb is the arbiter of all consumer/merchant disputes
Global Payment Revenues in 2021
What are the statistics for online shopping in 2023?
In 2023, an estimated 2.64 billion consumers will have completed at least one purchase online. The global ecommerce market growth rate peaked at 17.1% in 2021, and it's projected to maintain a growth rate of at least 8% over the next several years for a projected Global Payment market of $4.48 trillion by 2027
In 2022, there were 268 million online shoppers in the United States, this represents over 80% of American Consumers. This number is projected to increase to almost 285 million online shoppers in 2025.
A payment processor may label a merchant account as high-risk if they've determined your business account is at higher risk for chargebacks, fraud or a high volume of returns. The greater the risk, the harder it will be to ?nd a traditional bank or payment processing service provider.
However, there is no central authority or framework in the payments industry that determines the risk factors associated with a business. Instead, every bank and every payment processor have its own set of standards.
What is a considered high risk merchant in the eyes of the Payment processing industry?
Businesses from certain industries that innately carry higher risks may be automatically ?agged as high-risk businesses and be subject to signi?cantly higher processing charges. Here are a few examples of high-risk industries:
? CBD (Cannabidiol), e-cigarettes, and vape
? Guns and AmmoStun
? Credit repair
? Multi Level Marketing (MLM)
? Pawnshops
? Vitamin Supplements and Nutraceuticals
? Tech support
? Search Engine Optimization (SEO) services
Besides this, there are many other factors that could result in labeling a business as “high-risk”:
? Some processors could label you as “high-risk” if you are a new start-up business and have never processed payments before.
? Poor credit records or low credit scores for defaulting on loans, etc., are other signi?cant factors. If a processor has previously put you on the MATCH list, that could increase your risk perception as well.
? The same goes for businesses that have controversial product lines or operate on a slippery legal slope.
? Businesses that are overly dependent on international sales may also have high-risk scores. This is because of the relatively unpredictable economic dynamics abroad.
? Industries that are highly regulated by legislation or governments are also labeled “high-risk.”
80% of all U.S. online merchants are in the high-risk category and have been forced to pay exorbitant fees to V/MC/AMEX/ETC, for payment settlements. The average increase in cost to the “High Risk” merchant is 70%
Millennials and Gen Xers are the biggest online shoppers, with 67% of millennials and 56% of Gen Xers preferring to shop online versus in a brick-and-mortar store.
Another extremely dangerous concern for the High-risk merchant is the chance that their Payment Processor business is frozen or canceled for customer activities that expose the processor to greater risk than originally agreed to.
-Chargebacks
-Poor or illegal business practices
-Violation of FTC rules, laws, and regulations.
Frequently a merchant is not responsible for the issues that concern the processor yet their ability to accept payment is canceled.
Kindcard, Inc. (OTC:KCRD) Valuation (Estimates) for 2024.
Although Kindcard (OTC:KCRD) is a relatively new entrance to the High Risk payment processing market developers and management have tremendous experience and success in the market. Assumptions can be made on what the financial future holds for Kindcard, Inc. (OTC:KCRD) based on the industry averages and trends. The 2022 market for High Risk Payment Processing in the US is @ $41 billion and expanding at a CAGR 14.77% to reach $47 billion in 2024.
The high risk payment processing portion of this expected $47 billion is roughly 80%, making the Kindcard, Inc. (OTC:KCRD) market opportunity to be, again, roughly $37.67 billion in 2024.
Due to the abuse of Merchants in the High Risk Payment processing market that exposes merchants to sudden cancelations, unfair charge backs and an average increase in service fees of 70%, the Unique Pay with Deb service has had a tremendous acceptance rate by High Risk merchants.
Only time will tell what the average acceptance rate will ultimately be going forward but just assuming a .005% capture rate by Merchants needing better reliability and lower costs, the next few years can see an annual revenue potential of (Est.) of $1.88 billion.
AI
