ASX Fintech Company Launches into $1 Trillion Global Industry

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PUBLISHED: 11-06-2015 13:28 p.m.

14 minute read

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Fundraising is big business – globally.

Political parties, religious groups, aid agencies, and worthy causes such as military veterans and charities all raise mountains of cash.

We are talking over $1 trillion a year .

There’s only one problem...

The bureaucracy and red tape associated with current fundraising methods consistently erodes any funds raised.

By the time the raised money reaches its intended destination, up to 40% has been lost to handling fees, archaic processing methods and administration costs.


This is a systemic, global problem and no fundraising sector is immune.

In 2012, Obama and Romney raised over $1 billion each through political donations – it was the most expensive presidential election ever – how much did they actually end up with?

The trillion dollar fund raising industry is desperate for a financial tech solution to reduce these fees...

And we have identified one.

We have just added to our portfolio an ASX listed Fintech stock with a 100% owned proprietary platform that drastically reduces processing fees associated with any type of fundraising.

This platform allows anyone to donate funds via their mobile phone – charging micro amounts to their phone bill – and for only a fraction of the traditional processing fee.

The tech company takes a relatively tiny cut of the funds raised through its platform – a dramatic improvement for donors and beneficiaries compared to the current 40%.

That profit to our tech company soon starts to add up once vast sums of micro-payments in a $1 trillion industry start rolling in.

Everybody wins – except for those traditional methods of raising funds.

Why wouldn’t a group or user sign up to this ASX Fintech company’s platform, to have a vastly improved percentage of cash go to the place where they wanted it to go?

This ASX listed company’s platform is a high margin operation, the technology is globally scalable, and it can be re-branded to suit any kind of fund raising.

Our ASX listed company is set to launch its technology into the political fundraising market in the coming months.

The 2016 Presidential election is just around the corner, and this company could be front and centre to facilitate the big donations required...

It is THE ONLY PLAYER that can accept repeatable micro donations via a mobile phone bill in the $335BN US market, due to its first mover agreement with a direct billing aggregator and pending patents

Current global expansion plans see the company offering its digital platform in the US market, plus Africa and Australia over the coming months after its successful debut in the UK.

With access to billions of potential customers the world over, and a clear runway to market ensured by protective agreements and patents, this ASX listed fintech company is set to shake up the incumbent, slow moving global donor and fundraising market.

And the global launch is set to really take off in the coming weeks:

Activistic (ASX: ACU) is a fintech company that recently listed on the ASX via a reverse takeover of a dormant ASX listed shell Acuvax last month, following a $6 million capital raising.

ACU’s capital raising was oversubscribed 10 times – an indication of the demand for this company right now.

The company is now cashed up and ready to deploy its global roll out.

ACU’s technology connects donors to beneficiaries in the most efficient and transparent way we have seen.

This is achieved by seamlessly collecting the donor’s money via a mobile phone bill, and wiring that cash directly to the intended beneficiary. In this way, it guarantees the beneficiary at least 85%. ACU takes between 6-9% and rest goes to a payment aggregator.

Traditionally, administration and costs associated with marketing accounts for more than 40% of money raised for charities – leaving the intended beneficiary with at most 60%.

We believe groups using inefficient and expensive efforts to raise money would be getting increasingly interested about ACU’s potential to disrupt the usual practice, with a complimentary approach that provides a more transparent donation stream.

By using existing telecommunications systems and mobile phone billing, ACU allows anyone with a mobile phone to donate small amounts ($1, $2, $5 or $10) directly via their bill, or in the case of pre-paid users, a seamless deduction of their credit balance.

ACU’s tech solution allows donors to give in a much more convenient, transparent and bureaucracy-free way. Beneficiaries receive a larger proportion of donations due to drastically lower payment processing fees, now that payments systems have been removed from the equation.

Compare this to the existing framework – where donors make costly one-off donations, the vast majority of which is offline (door knockers, tin rattlers on the street, etc.), and the donor has no clue where their money went.

ACU wants to shake up how donors donate and how beneficiaries receive money, and it has the technology to do so.

ACU’s global launch will see it offer a number of different white-label and Activistic branded products to suit a variety of market segments, built on the company’s proprietary technology platform:

  • One Cent: this product is already operating in the UK, and connects mobile phone users to the UK charity of their choice – a small trial run (with limited marketing spend) resulted in a take up significantly higher than the industry average through such marketing campaigns.
  • Veterans Call: US citizens will be able to donate to support projects aiding returned armed personnel. Veterans’ affairs have the largest media coverage and sector exposure in the US.
  • Church Call: Religious giving in the USA is more than US$100 billion a year. This app will assist religious groups in securing recurring monthly donations as well as acting as a communication tool to their members.
  • Patriots Call: With the pending US election, each political party is desperate to gain a tech edge and attract new funding from party supporters – ACU can provide this via their tech platform and reach out to party donors, collecting their donation much simpler. Importantly for political groups, it could also provide an extremely powerful communication tool through its donating members on the app with a ‘call to arms’ to vote in a particular region requiring support.

Having already been tipped as a ‘Speculative Buy’ by eagle-eyed market watcher, John Beveridge, in the Herald Sun and with its existing app, One Cent flying high in the UK, ACU is already getting its skates on in terms of spreading the word.

Source: Herald Sun

ACU wants to see its technology grace every continent, especially in countries that have high mobile phone penetration. Importantly, there is no limit to the scale across countries ACU can achieve, as it doesn’t infringe on any Financial Services Regulations as it operates directly through the mobile phone bill.

$335 BN US Market, $1 Trillion Globally

With an estimated US$200 billion donated annually by individuals and another US$135 billion by companies, the US is by far the largest ‘giving’ market globally.

According to ‘Giving USA’, approximately 32% (over $100 billion) of all donations are intended for religious organisations – which plugs ACU’s ‘Church Call’ app directly into the main vein when it launches later this year.

Currently just 6.4% of all donations are undertaken online, representing a significant market opportunity for ACU:

Traditional donation methods lack transparency and are generally one-off in nature. These methods are not interactive and cost too much when traditional middle men get involved.

In the same way that cars replaced horses because they are more robust, convenient and cheaper, we believe online donations are likely to outpace offline at some stage in the future because they are more transparent, convenient and cheaper.

According to independent research, online donations are growing at 13% per year compared to offline donations, which are growing at a more modest 5%.

Eventually, the online market will outgrow its offline counterpart but there is some way to go with online donations only making up less than 10% of the overall total so far...

With scalable global revenue generation via anyone with a mobile phone between the ages of 13 and 90, ACU is tapping into a vast market.

A market that ACU appear to have entered at the right time, just before take-off...

Reciprocate to Accumulate

ACU is embarking on a global roll out of its technology over the coming months, and to cleverly protect its market position, it has signed agreements with mobile billing aggregators, Mobile Giving Foundation (USA), TxtNation (Africa) and OpenMarket (UK).

Mobile billing aggregators basically collect individuals’ cash and transfer to intended recipients in bulk.

Mobile billing aggregators ensure companies like ACU don’t have to negotiate individual deals with each telecoms provider, but can rather do a bulk agreement covering the whole lot in one go.

ACU is in pole position in the micro payment donor industry given its relationships with the above direct billing aggregators and telecoms providers, which provide the company with clear runways into Asia, North America, Africa, the UK and Australia.

Without any outright competition, ACU could soon take these markets by storm.

ACU have unique, protected, access to the $335BN US market

As the only mobile billing aggregator in the US today, the agreement with Mobile Giving Foundation (MGF) provides ACU with a clear and strong entry to the US market.

ACU have access to the only conduit that reaches all US mobile phone users regardless of the network they are on

The same type of deal has been agreed with aggregators in UK, so direct market access to these key regions is assured.

MGF have gone a step further and provided ACU with the ability to use their own charitable status and access to its own charitable trust as an affirmation of ACU’s ideology and strategy.

This type of co-operation between a charitable group and a commercial company is uncommon, and indicates that the MGF believes in ACU’s idea and strategy.

The transparency that it is received through being listed on the ASX is also a big part of the credibility ACU receives from potential charities looking to partner with the company.

ACU’s tie-up with MGF has effectively short-circuited the US market entry process for ACU and paves the way for a successful launch of both ‘Veterans Call’ and ‘Church Call’ apps later this year.

Meanwhile, additional agreements across Asia and Africa mean the company can gain access to 85 million potential new users in Asia and 80 million in Africa.

Bundled together, all of ACU’s potential partnerships will give the company exposure to hundreds of millions of people in over 150 countries

With this level of exposure, combined with a product that has a proven track record to date, working out the blue sky potential of this company becomes a lot easier.

Africa roll out to start in Nigeria

Outside of developed markets, ACU has support from aggregated biller ‘TxtNation’ to support its activities in emerging markets such as Africa.

ACU is lining up a deal with a church group in Nigeria that will plug ACU’s platform into a network of over 72 million people, from which ACU can make a fee on each transaction.

Credit cards are not widespread in Nigeria – but mobile phones are. This represents a large opportunity for ACU – and it’s happening now.

85 million Asians to be exposed to ACU’s technology

It’s also worth noting the strong Asian base that ACU are working from when they launch into this region in the coming months, allowing the deployment of the ACU technology to a mass market.

ACU have signed a Memorandum of Understanding with YuuZoo in Singapore that provides access to more than 85 million registered users and 800 million TV viewers in 164 countries.

Generally giving is currently restricted in Asia due to limited access to credit cards and other banking methods – ACU can change all of this, as individuals can give small amounts on a recurring basis via their mobile phone.

Our Track Record

Did you see our Next Tech Stock article on Ziptel (ASX:ZIP) $1.7 Trillion Telco Market: ASX Tech Company Weeks Away From Global App Launch ?

ASX:ZIP has been up as high as 530% since we first released our article:

Source: Etrade Australia

The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Widespread global platform deployment in the coming months

Via the wide ranging application of this technology, combined with what we believe to be a unique business model with protecting patent registrations, the company has managed to ensure first mover advantage in all territories it operates in.

At the current time, ACU stands at the precipice of rolling out its service on a global scale and will be pushing hard on raising its exposure over the coming months.

There’s an App for That

ACU is facilitating its ambitious plans by rolling out mobile phone apps via Apple’s App Store and Google’s Play Store ensuring maximum coverage.

Its flagship app, ‘One Cent’ is already live in the UK with ‘Veterans Call’ and ‘Church Call’ expected to go live in the US later this year.

In Australia, ACU has announced the Royal Flying Doctor will be its official launch partner, with a white label app to be released in coming months.

In addition to its standard services, ACU plans to offer a ‘Managed’ service to organisations that want to utilise ACU’s platform, with the aim of creating an annuity stream of donating in a 21 st Century way.

In other words, ACU is keen to establish a regular schedule of donations over time for each donor, using apps on mobile phones.

ACU will market its customised platforms such as ‘Church Call’ and ‘Patriots Call’ as Software as a Service (SaaS) thereby potentially generating additional revenue via subscription and royalty fees.

On your Marks. Get Set. Click.

In effect, users of ACU’s technology are given the opportunity to donate directly to the recipient therefore avoiding a commonly found pet peeve in the 21 st Century: bureaucracy.

Using its proprietary micro-payments platform, ACU allows users to make regular donations via their mobile phone – a fresh, transparent approach and a trailblazing, novel way to donate money.

The straightforward process and small donation amounts also mean users are more likely to donate on a repeat basis, delivering what charities and other fund raising dependent organisations love to see: regular donors – allowing for much easier budgeting.

For donors, a small regular donation is all they want to make but are often put off by how burdensome signing up to a charity can be...

With technology brought to market by ACU, all charges go directly onto the phone bill, which removes the need for any payment systems, card payments or even a bank account.

The simplicity of ACU’s solution means millions of people in the developing world that are under-banked will now be able to make payments for various causes and organisations.

With over 90% of donations currently being done ‘offline’ via cash, debit card or cheque, it could be time for the giving industry to finally join the online revolution.

The added benefit of ACU’s tech solution is that donors and recipients can continue their relationship after a donation has been made via interactive tools providing information and feedback about where donor money is going and what it is being spent on – even daily updates are available.

Our Track Record

Did you see our Next Small Cap article on Rumble Resources (ASX:RTR) So You Think Sirius Is Big? $5M ASX Explorer Drilling in Weeks ?

ASX:RTR has been up as high as 160% since we first released our article:

Source: Etrade Australia

The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

In the Land of the Giving, Every Donator is King

ACU’s recent listing and market demand for the IPO shows that this emerging fintech company is on the right track.

The size of the market ACU are in requires repeating – it’s a $1 trillion global industry, and it’s currently stuck over 94% offline!

With patent protection in key markets, the company can now take advantage of a poorly functioning existing donating ecosystem, addressing the inefficiencies within it like never before.

With a platform that can reach more people and facilitate more funds reaching their destination, it really does seem that in the donation industry, ACU’s tech solution could spark a revolution.


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