A lot of great things have been happening at NetCents HQ this year. The team has been busy signing new merchants and partners, launching what we lovingly refer to as our Merchant Gateway 2.0, getting ready for our crypto credit card launch this summer, amongst a number of major projects.
But that’s not what we want to talk to you about today. We want to give you a bit of insight into a business development strategy that we’ve been working on over the past several months. As you may be aware, we hired three new team members to join our business development team. They’ve been brought on to bring to fully launch what we’ve been testing.
At this point, let me guess, you’re yelling at your computer screen to get to the point. Well, ask and ye shall receive.
Over the past 5-months, we’ve been trialling several business development strategies. Through this testing, we’ve identified multiple markets that go hand in hand with crypto payments. Through our partners and current merchants, we’ve been able to identify these markets that have given us little to no resistance to crypto payment adoption.
Out of the five identified markets that we’ve tested in-depth, we’ve selected two to focus our direct merchant sales team to go after and capture. With the initial testing and early adopters that we’ve onboarded, we’ve already seen a large jump in our processing volume. We’ve seen a 40 – 80% month over month increase in processing volume every month this year since February when we started testing this strategy.
With the addition of these newly identified markets, in addition to the Partner and merchant adoption we have underway, we are projecting that we will continue to see a month over month processing growth of at least 40% each month for the remainder of the year. This represents a 4,100% yearly growth rate in our processing volume (and puts us on track to be processing $2,000,000 USD per month by Q1 2020) and is very achievable given our year to date success. Year to date, we’ve already tripled our monthly processing volume.
We’re not going to be giving away all of the details of this new strategy, we need to keep some things close to our vests to retain our competitive advantage. The last thing we would want to see is others in the space continue to use our updates as a roadmap for their strategy:)
Speaking of competitors, we support any company continuing to sign merchants and starting to bring household name brands to the table to begin accepting cryptocurrency. This helps bring awareness to the industry and continues to help move the needle closer to mainstream adoption, but it’s not where our focus is placed.
Why not you ask?
It’s all about investment vs. reward. These household name brands do not drive instant processing volume, requires far too long for full integration and launch, and saps a lot of internal resources and attention for what amounts to a single news cycle of attention. These companies are brilliant for awareness, but when weighed against the resources and time that needs to be committed to gain any commercial benefit, the ROI isn’t there. Yet.
With the strategy we’re launching in the markets that we’ve identified. Markets that are underrepresented and in need of alternative payment options. We can realize instant processing volume that will allow us to achieve our anticipated 4,100% year over year processing volume growth rate.
This is the foundation that will allow the rest of our plan to be developed upon.
You might be asking yourself what’s the rest plan? Well we won’t tell you everything, but we do want to give you a sneak peek into some of it.
You are fully up to speed on the launch of our upcoming credit card program, correct? Well, what no one has put together is what our long-term plan is for it. Where the real value is for us.
Well, it’s time that we let the cat out of the bag. It’s a big data play. Yes, we are thrilled to allow NetCents users to spend their cryptocurrency in real-time at nearly 40 million merchants, worldwide, who accept Visa. But the real value for us, as a company, is in the live aggregated data that we receive from these transactions.
The aggregated data, merchant and industry level data, that we are able to collect will give us actual insight into how people want spend their cryptocurrency when there are no limitations put in place to where and how they can spend their cryptocurrency. NetCents, and the overall industry, will no longer be reliant on assuming where people want to spend their cryptocurrency or focus on industry verticals and merchants who happened to be early adopters and gained crypto market share as a result of lack of options available to cryptocurrency holders. This is a key piece of information, real hard data, that has been missing. With the NetCents cryptocurrency card program, we will now have access to hard data, with actual merchant and industry statistics.
Along with this information, we are able to increase merchants average order size. Since we have been processing merchant transactions, we have been able to accumulate a lot of data in regards to cryptocurrency transactions, including average transaction size. Through this data collection, we are able to show that cryptocurrency transactions are an order of magnitude higher than traditional credit card transactions. The average credit card transaction varies between $67 to $80 per transaction. With our processing merchants, our average transaction size is $113 USD, a 40 – 68% higher average transaction size. The overall credit card statistics are aligned with our current processing merchants data – cryptocurrency holders spend more money than credit card holders.
That brings us to how we will use this data. We will now be able to approach merchants directly with actual data to present to them on how much cryptocurrency is spent with them (or their competitors) without them even knowing it. These are numbers that will allow us to penetrate verticals and merchants who have been hesitant to adopt cryptocurrency as a payment option.
Along with actual spend information, our payment solution has multiple benefits for the merchant when they accept cryptocurrency directly through NetCents. We are able to decrease their merchant transaction fees over traditional payment methods, eliminate chargebacks, increase their average order size, and directly open them up to the multi-hundred billion dollar cryptocurrency market.
When we are able to present this, the choice to the merchant is obvious. This is truly a Win. Win. Win. Situation for NetCents, merchants, and cryptocurrency holders.
The foundation that we are laying now with these strategies that are beginning to bear fruit, will be the foundation that mass adoption stands upon.