singapore patent no. 164153

Copyright 2008Copyright 2008

Singapore Patent No. Singapore Patent No. 164153164153

““Buy anything online for Buy anything online for less.”less.”


Pay Flow OverviewPay Flow Overview

Consumer

Credit CardholderOnline

Merchant

Credit Card Purchase

Cash < Credit Purchase

Item/ServiceSelected by the Consumer

Patent Licensee


Singapore Patent No. 164153Singapore Patent No. 164153 The invention will allow a consumer to purchase The invention will allow a consumer to purchase anything anything soldsold online at a online at a

discount, by matching the consumer with a credit cardholder who needs discount, by matching the consumer with a credit cardholder who needs cash. The credit cardholder will make a purchase for the consumer using cash. The credit cardholder will make a purchase for the consumer using his credit card, and in exchange, the consumer will make a cash transfer to his credit card, and in exchange, the consumer will make a cash transfer to the cardholder that is the cardholder that is less thanless than the price paid by the credit cardholder to the price paid by the credit cardholder to pay for the Consumer’s chosen transaction. pay for the Consumer’s chosen transaction.

Using the invention the consumer receives an item he wants at a discount Using the invention the consumer receives an item he wants at a discount (i.e. for the amount transferred to the cardholder), and the cardholder (i.e. for the amount transferred to the cardholder), and the cardholder receives cash at his credit card’s purchase interest rate instead of the receives cash at his credit card’s purchase interest rate instead of the card’s higher “cash advance” rate. Further, the cardholder may be able to card’s higher “cash advance” rate. Further, the cardholder may be able to receive the cash at a cost lower than his credit card’s minimum cash receive the cash at a cost lower than his credit card’s minimum cash transaction fee, when the difference between the cash transferred to the transaction fee, when the difference between the cash transferred to the cardholder and credit card purchase is less than the credit card’s minimum cardholder and credit card purchase is less than the credit card’s minimum transaction fee. transaction fee.

The licensee earns a commission on funds transferred to the cardholder. The licensee earns a commission on funds transferred to the cardholder. Other fees (e.g. membership fee) may be charged to both the consumer Other fees (e.g. membership fee) may be charged to both the consumer and cardholder.and cardholder.


Pay Flow SequencePay Flow Sequence

LegendLegendInformation

Value

Licensee

1. 2.Consumer Consumer

Online Merchant

Online Merchant

Credit Cardholder

Credit Cardholder

Item Info, Terms, and $ transfer

Agreement on Terms


Pay Flow Sequence ContinuedPay Flow Sequence Continued

3.3.

5.

4.

Consumer

Consumer Consumer

Online Merchant

Online Merchant Online

Merchant

Credit Cardholder Credit

Cardholder

Credit Cardholder

Cardholder pays for item using credit card

Item Ships

The Licensee, after confirming payment, transfers $ < than credit card purchase to

Credit Cardholder


Pay Flow Sequence ContinuedPay Flow Sequence Continued

6.6. Consumer

Credit Cardholder

Online Merchant

The Licensee remits a portion of the money deposited back to the consumer,

and keeps a portion for itself.


MarketMarketStage 1: Pay Day Loan Customers Stage 1: Pay Day Loan Customers

online that have *Credit Cards.online that have *Credit Cards.

Pay Day Loan

Customers

Credit Cardholders

*57% have a major credit card. Est. Over 40 Billion in payday loans annually. Source “Community Financial Services Association of America” (CFSA), www.cfsa.net


MarketMarket

Stage 2: Credit Cardholder’s online who Stage 2: Credit Cardholder’s online who want a loan.want a loan.

Proxy Number = “cash advance” credit card Proxy Number = “cash advance” credit card transactions.transactions.

Loan Seekers Credit Cardholders

Online


Online CompetitionOnline CompetitionCredit Card IssuersCredit Card Issuers

Obtain $ at card’s purchase interest rate•Obtain $ > card’s

cash limit• Cost < Card’s min

transaction fee

Customer need: CashCredit Card

Offering

LicenseeLicensee’s Strategic

Advantage


Offline CompetitionOffline Competition

Payday Loan CompaniesPayday Loan Companies

• Online Convenience• Available Credit > payday loan max• Lower Transaction Cost

Customer need: Cash

Payday Loan Offering

LicenseeLicensee’s Strategic Advantage


Marketing/DistributionMarketing/Distribution

Create a pool of potential borrowers (credit cardholders) from Create a pool of potential borrowers (credit cardholders) from payday loan customers, by offering loans for less than what payday loan customers, by offering loans for less than what they are currently paying.they are currently paying.

Advertise that by using Licensee’s pay services, you can “Buy Advertise that by using Licensee’s pay services, you can “Buy anything online for less”. anything online for less”.

Establish consumer accounts to make online payments. When a Establish consumer accounts to make online payments. When a consumer wants to make a purchase – Licensee will auction out consumer wants to make a purchase – Licensee will auction out the “purchase price” to credit cardholders who want a loan, and the “purchase price” to credit cardholders who want a loan, and match consumers with cardholder/borrowers.match consumers with cardholder/borrowers.

Online merchants will accept payments using Licensee’s Online merchants will accept payments using Licensee’s payment service, because purchases will operate like a regular payment service, because purchases will operate like a regular online credit card purchase. When a consumer’s purchase price online credit card purchase. When a consumer’s purchase price is not matched with a cardholder’s bid, the purchase can be is not matched with a cardholder’s bid, the purchase can be paid for by an EFT, resulting in a greater payout to the online paid for by an EFT, resulting in a greater payout to the online merchant. merchant.

singapore patent no. 164153

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