Eazychange Contactless Technology

 Chukwudi Anene is professionally trained in advertising and public relations with over 8 years experience in integrated marketing communications. He gained vast knowledge in e-commerce through his career with Jumia Services 3PL, the biggest e-commerce platform in Nigeria.  He is the CEO/founder of Eazychange Tech Limited alongside other co-founders, a fintech company that has developed a unifying e-payment solutions that critically addresses the challenges associated with cash payments for public transport and SME's in Nigeria. He led his team to Wema Bank's hackathon competition in 2019 and emerged the overall winner. 

He also participated in various community based volunteer trainings known as "Yalilearns" through the platform of Young African Leaders Initiative. His competence includes, integrated marketing, design thinking, whitespace mapping, brand and business strategy, market analytics, high-level enterprise strategy, Innovation design, brand storytelling, content development, product launch etc.

Nigerian citizens usually encounter the challenge in making payment with cash in public transports, parking lots, super markets and local markets due the scarcity of lower denomination bank notes. This problem leads to conflicts related to fighting, delays, forfeiture, rejection of mutilated notes and merging balance with strangers usually arises.
Reference: https://www.thecable.ng/high-c...
https://www.pulse.ng/news/loca...

To solve this problem Eazychange Tech Limited developed an NFC payment terminal for merchants and contactless card for paying customers. The solution helps customers pay to merchants with just the tap of a card thereby avoiding balance issues with cash payments and enabling reliable and seamless payments. Our technology does not rely on mobile network or data to function.

Our project objective is to provide the solution that helps resolve more conflicts for the banked and the unbanked group. Our contactless card also helps in curbing the spread of Covid-19 by reducing contact in cash exchange.

Our project objective is to provide an alternative electronic contactless solution that users can rely on for micro fees settlement when cash payment fails. 1 out of every 5 transactions fail due to lack of lower denomination or rejection of mutilated notes, especially in transportation sector.

The factors of the problem related to my project is that we built a payment system dedicated to lower denomination transfers. We are aware that other bank transfer methods exist but we want to bring seamless payment closer to the people at micro level. Our charges are cheaper, doesn't delay and works with the speed of light without mobile network or data.

Our research shows that Nigerians withdrew N4.7 trillion through ATMs in 2016 with 41.8m ATM Card users. The dispensing format of the ATM machine is mainly based on higher denominations only. There is no sign of changes for this format because all citizens were mandated to withdraw money from their accounts electronically. Based on the fact that the Central Bank of Nigeria does not produce lower denominations in large quantity and the production cost is higher than the value of the lower notes, the ATM banking process stimulates the scarcity. Reference:  https://www.thecable.ng/high-c...

Eazychange helps passengers who want to pay for transport fares by avoiding balance/change issues with cash payments and enabling reliable and seamless payments.

We have combined the power of Near Field Communication (NFC) and our state of the art algorithm to provide a payment solution that truly addresses the needs of a cashless society.

Public transport and other Micro-SMEs can now make dependable transactions with their customers(banked and unbanked) with just the tap of a card with or without network availability.

The application steps:

1. The merchant inputs exact amount on terminal and press enter.

2. The card holder taps the card on the terminal.

3. The terminal confirms successful of failed.

Introducing EazyChange, the 1st ever payment solution dedicated to micro fees settlement in Nigeria, is a trail blazing strategy that will drive financial inclusion for formal and informal transport operators and users, the target also covers the small scale business segment and will go a long way in creating other small financial enterprises for funding and withdrawal services.

Eazy Change will be serving markets not earlier captured by the provisions made by earlier e-payment channels like ATM and POS machines.

This concept was developed bearing in mind that the daily transaction of the target market falls within the category or lower denomination notes.

This Total Addressable Market (TAM) amounts to a very large chunk (80%) of the society.

There has been outcry on how government can resolve the declining rate of lower denominations. The decline causes inflation of prices and eventual extinction of some notes and coins in circulation.

On a recent post on a popular Instagram blog platform in Nigeria @Instablog9ja, Nigerians reacted painfully to the scarcity and mutilated notes in circulation. This insight enlightened us that we actually have a huge market to serve. See post https://www.instagram.com/p/Bp...
Another post came up recently where a woman was assaulted because of N50 balance https://www.instagram.com/p/B0...

I have been in a commercial vehicle where citizens were denied access to ride on a bus because they do not have lower denomination to pay. I have also had similar experience and 9 out of every 10 Nigerians can relate to same problem.

Below is a mini validation documentary I did on the street where I spoke to some citizens and commercial transport operators on how to tackle the challenge of lower denomination scarcity in Nigeria.

My passion for the project lies within my interest in IOT and how I can use my knowledge in technology to serve my community and the nation at large. Secondly, I have been opportuned to work in an environment where the business is 100% tech based and people get full satisfaction on the services from the comfort of their homes. 

I have personally passed through the experience of forfeiting my hard earned resources because of the limitation I have the experience and capable team to solve. It would be a lifetime source of fulfillment to live and see others learn and benefit from the solution which used to be a dreadful and painful experience.

I Chukwudi Anene works full-time in the company. I am the concept originator, the 1st founder/CEO, I have over 8 years experience in brand building, business strategy and e-commerce. Worked in advertising firm and various departments in Jumia, Nigeria's biggest e-commerce platform. My competence includes, integrated marketing, design thinking, whitespace mapping, brand and business strategy, market analytics, high-level enterprise strategy, Innovation design, brand storytelling, content development, product launch.

My co-founder and CTO Mr. Adedeji Opoola also works full-time in the company. He has over 10 years experience in IT and business strategy (CISCO certified). Successfully exited Nigeria’s first online food delivery company to US backed company MAX.NG (2016)

My 2nd co-founder, Mr. Henry Omezi also works full-time. He is the COO/co-founder has over 9 years experience in banking and financial services and analytics. Spent majority of his years in payment and remittance department in Zenith Bank International Plc.

My friends and I developed a youth empowerment programme created to help young indigenes of my home community acquire different skills and

craft especially computer training. We set a goal of training up to 1,000 youths during our inception meeting.
We were faced with lots of challenges like mobilization of sponsors, provision of desktop computers, and developing motivation for the
trainees, We finally succeeded by setting up of awareness page on Facebook where indigenes of my home town worldwide supported
the project both financially and morally. We met our goal and the royalty of our kingdom supported us. Visit page on
https://www.facebook.com/OYEP2...

I started building Eazychange Tech Limited in my single bedroom apartment in 2018, I developed the strategy of the product, introduction plan, budget, team building, execution and started seeking for co-founders with quality experience needed to drive the company forward.

I never had the resources to invest and build the company but the pains of the problem got me deeply involved that I had to hit the street to seek the best technology to serve a community with lots of network and mobile data challenges.

Fast forward to 2019, I summoned courage to apply for Wema Bank's Hackathon challenge. The hack challenge summoned innovators develop strategic solution that addresses societal challenges that deprive citizens the access to a better living in all sectors of the economy. 

We emerged winner in the competition and our story went viral all over the media. https://theeagleonline.com.ng/winner-emerges-in-wema-banks-10000-prize-hackaholics/

https://www.thisdaylive.com/index.php/2019/04/08/winners-emerge-in-wema-banks-hackaholics/

https://bizwatchnigeria.ng/winners-emerge-at-wema-banks-hackaholics/

https://www.techawkng.com/2019/04/02/team-eazychange-wins-10k-in-wema-banks-hackaholics/

For-profit, including B-Corp or similar models

Eazychange Tech Limited is a fintech company that has developed a unifying e-payment solutions that critically addresses the challenges associated with cash payments.

Following the need of a cashless alternative that is secure, fast and reliable for Nigeria’s transportation and SME sector, we developed Eazychange, a true cashless alternative that supports micro payments with a simple tap of a card.

Our unique value proposition is that our solution is the 1st of its kind that is tailored for African micro transactions. The features includes flexible and simple operation, based on NFC terminals and contactless cards, permits transactions with or without mobile data and networks, operates efficiently under hot weather condition and much more.

We are also focused on processing payments for the underserved at the micro payment level which is in line with the UN sustainable development goal for innovation especially in Africa. Our system supports the cashless policy operations at the very lowest level of financial transactions. We efforts support the ambition of the Federal Government of Nigeria in building Africa's largest smart city.

My theory of change is based on a learning curve that has 4 different stages. With my skills in white space mapping, the solution we built is not entirely new solution but is alien to the populace we are delivering it to.

The 4 main stages in our product value chain are:

Solution recognition
Information search
Purchase
Post-purchase behavior

So let's treat Solution recognition 1st: The problem is certainly identifiable in Nigeria's market but the focus in question is how we are resolving it. The target curiosity will be what product or kind of product would be able to address lower denomination scarcity. It is oftentimes recognized as the first and most crucial step in the process because if our targets do not quickly understand the solution, they generally will not move forward with considering a product purchase. We used a very simple technology, even a child that can count 1-100 can operate it.

Information search: During this stage, a target who recognizes a specific problem or need will then likely be persuaded to search for information, whether it be from us or a friend. Our system has a network effect whereby a card user taps the card and leaves but cash user is stuck and stranded. After seeing the service, he or she would likely enquire on how to get the smart solution for better faster experience.

Purchase: During this time, our consumer may form an intention to subscribe our card because he or she has evaluated all the alternatives and identified the value the card will bring.

Post purchase: Post-purchase behavior is when our card user assesses whether he is satisfied or dissatisfied with a purchase. It will be our utmost pleasure to create good customer relationship for repeat usage.

Our route launch will flow according to local governments in Lagos State Nigeria in this 1st year after launch.

We have reached agreement with Road Transport Employers Association of Nigeria (RTEAN) in amuwo odofin with a population of 697,000 residents with 250,000 public transport users and over 500 buses in operation on each route. The opening was truncated by the nationwide lockdown to control the spread of covid-19.

Lagos total addressable market is 20,000,000 residents with over 10,000,000 public transport users. We project to expand across Lagos in a year and others parts of Nigeria in 2 years. The total population is 200M with a total public transport addressable market of 155M.

The total West Africa population is 390M with total addressable market of over 320M and 280M daily commuters.  The above figures is our target over the next 5 years.

Eazychange Tech Limited is a wholly indigenous company with a wealth of experience in technology and fintech space. We built our solution to solve fee settlement issues faced by tons of Nigerians on a daily basis. Our solution will not only solve the payment issues in the formal sector (BRT, Ferries, Train) but will be instrumental in helping move the informal transportation sector to the Formal sector through our POS system designed for private commercial vehicles (new yellow buses and shuttles etc.)

Our ambition is to secure bigger partnerships with conglomerates in distribution of the solution to more remote users in rural areas where they need access to structured financial services. We have started experiencing this support from WEMA bank – Nigeria’s first fully digital bank and rated as the most innovative bank. WEMA bank comes with their wealth of experience in payments and settlements. 

We are also in partnership with Nigeria’s leading terminal and E-payment solutions provider Global Accelerex. Global Accelerex comes with wealth of experience in terminal deployment and have the 5th largest agent Network that span across Nigeria.

The 4 major barriers we currently experience includes the education, funding, industry regulation and government partnership

Education: Our solutions brings about disruption of the status quo at the micro payment level. Many stakeholders needs to unlearn the regular means of transaction which sometimes create inflation in order to have a round figure in transactions. The new payment system will require a simple education somany vendors may not embrace.

Funding: We are solving a huge problem which requires significant capital to break even. The industry is also lucrative with a proven ROI record on transaction commission. As the financial services expand to other regions, it is also required that we deploy terminals and cards for easy processing, this requires that we need to go for serie A and B funding before we can operate beyond the shores of Nigeria.

Regulators: Some transport unions and trade association are skeptical to support our solution with fear of losing control of their members whose transactions are heavily dependent on cash. The fear brings about slow adoption of solution where they discourage their members to switch to the new system. They are supposed to be the fastest channel to gain market access faster.

Government partnership: Government owned commercial vehicles controls a huge number of routes in major cities of Nigeria. Having an MOU on payment integration will help existing Eazychange card users have access to pay on government buses.

Learning curve: Eazychange is investing in consumer education through local languages on our onboarding marketing materials. We provide agent support services where we engage distributors based on commission reward.

Regulators: We are developing tech tools for the market and transport union members. These tools will enable them have market insight on what they need to know about their members. The insight will enhance their accuracy in managing their funds and activity of the members.

We also include them in the revenue sharing formula, this gives them the opportunity to get funds from our partnership.

We won the 2019 WEMA Bank’s hackathon on problem solving solution for Nigeria and are currently under the sponsorship of the bank for scaling and adoption. WEMA Bank is Nigeria’s first fully digital bank and rated as the most innovative bank. WEMA bank comes with their wealth of experience in payments and settlements. 

We are also in partnership with Nigeria’s leading terminal and E-payment solutions provider Global Accelerex. Global Accelerex comes with wealth of experience in terminal deployment and have the 5th largest agent Network that span across Nigeria.

Our business model is based on 2% transactional fee on merchants and drivers, per payment.

Funding process on the card also attracts 2% commission of the paying user. Proceed will be shared between Eazychange and our distribution agents.

Float funds are also lodged in our bank partners accounts. Profit sharing from the interest income also applies to Eazychange revenue.

Our 4 main channels to financial sustainability:

Bootstrapping: At the initial stage of our startup, we used our personal funds for research. The research stage was basically getting to the street to understudy operations of public transports and how they resolve lower denomination note issues. We never had funds but we used our money to run. The stage was successful and entirely our resources.

Angel investment: In Africa, getting angel investors could be an uphill task. I believe we have the potentials to access funds from angel investors but we never had such opportunity till date. One key factor in succeeding with  angel investors is through network which we are working on building. We have gotten few referrals but are yet to get the call for presentation and funding. 

Winning contests: Winning contest and gaining media relevance is one area that has worked well for us. We needed the bank supported due to the fact that our product offers financial services at micro level. Apart from funding, the bank partnership helped us to gain access to Central Bank of Nigeria (CBN) recognition. The sponsorship and services of the bank boosted our milestone which made impact on our valuation. 

Venture capitals: We have plans for funding rounds with VC's. While working on our traction, our validation proves our business idea very profitable in the near future. Changing the status quo is one area dreaded by startups but our daring spirit will set us up for outstanding success.

Eazychange Tech Limited won the 2019 Wema Bank’s hackathon on problem solving solution for Nigeria and are currently under the sponsorship of Wema Bank for scaling and adoption. We got seed funding of $10,000 USD.

We are currently not generating revenue due to Covid-19 lockdown in Nigeria. Hopefully to rollout before end of 2020.

Our value is currently pegged at $1,600,000 based on Dave Berkus valuation methodology. We are interested in equity funding upto 9%-10%. View our traction record below

TRACTION
BERKUS CRITERIA
VALUE ($)
Sound idea, applicable to Nigerian and west African market
Idea
300k
Fully developed and tested solution
Developed technology
500k
Secured sponsor bank, Wema for funding, float processing and withdrawals.
Sponsorship
100k
Secured our technical partner, Global Accelerex, Nigeria’s E-payment and Terminal provider with over 10,000 agents across the country.
Strategic relationship
200k
Our team is equipped from professional experience in marketing, IT and banking background
Execution
300k
Sealed partnership with  Road Transport Employers Association of Nigeria (RTEAN) for faster access to market 
Go to market
100k
Value
 
 $                         1,600,000

Our monthly burn is broken down below.

Office management concurrent burn

Stationery paper rims, staplers, pins, 
Unit cost - $ 27.47
Total cost -  $ 164.84

Printer toner

 Unit cost - $  24.73 x3

Total cost - $  74.18
  

Payroll (staff 15/non-staff cleaners and security 5)

 Unit cost - $ 68.68 x15

Total cost - $ 1,373.63 

Management salary

Unit cost -  $ 549.45 x3
Total cost - $ 1,648.35
 

Internet fee (3 networks)
Unit cost -  $ 28.85 x3
 Total cost - $ 86.54

Car petrol/transport

 Unit cost- $ 54.95
 Total cost $ 54.95


SUM TOTAL

Unit cost -  $ 3,402.47
 Total cost - $ 19,129.12

Our Mentorship on consumer education strategy: The knowledge from the MIT’s innovation ecosystem will cascade to equipping our target customers with the right information. A strategic education will support the word of mouth strategy to develop the brand.

To get funding for market expansion: Our business requires huge funding to break even. Our impact plan permits vendors and transporters to payback the gadget fees on instalment before total ownership. The structure is organised enough to recover the investment but we cannot sustain that model with low budget.

Government and bigger brands support: The influence from MIT’s innovation ecosystem will motivate the government  open up for partnership. The government support gives us an edge for more remittance via our contactless platform. Big brands partnership gives us the opportunity for agent network reach as well as service support like mobile data.

The major partnership goals we need are funding and market/media exposure which are also connected to government support and brand partnership. The reason for this plan is because:

1.  government has influence of access to market in every region.

2. Brand association makes our product more believable and we can also enjoy services built on the bigger brand distribution network. The bigger brand marketing plan also includes our products and services.

Marketing

We would love to partner with any mobile telecom company in Nigeria especially MTN Nigeria. MTN has the biggest and strongest agent network across Nigeria. Their support will be needed in marketing our solution across all states. Though our product works offline, we still need mobile data support for update of payments in the merchant bank account.

Government

We would love to partner with Lagos Metropolitan Area Transport Authority (LAMATA) for access to market and payment integration.