StoreCash - 2023 43North Finals Pitch

Summary

In this engaging pitch, Derk, CEO of Store Cash, introduces an innovative mobile payment solution that leverages AI to help users save money while shopping. With over 200,000 participating retail locations, customers can earn significant cash back by paying with QR codes and barcodes. Store Cash aims to empower consumers, particularly those living paycheck to paycheck, by offering savings that average $900 annually. The company plans to differentiate itself by avoiding traditional payment processing fees and targeting a specific demographic through effective marketing strategies. With plans for growth and data monetization, Store Cash is poised to disrupt the retail payment landscape.

Takeaways

• 😀 Store Cash is an AI-powered mobile payment solution that allows users to save money when shopping at various retailers.
• 💰 Users can save over $900 annually by paying with QR codes and barcodes at participating stores.
• 🛍️ The service currently operates in over 400 major retail locations and has over 200,000 participating stores.
• 📱 Store Cash notifies users in real-time about cashback offers while shopping.
• 👩‍💼 The primary target audience for Store Cash is women aged 30 to 39, acquired mainly through social media and Google ads.
• 💳 Store Cash provides savings of about 2-3% more than traditional payment methods by avoiding typical credit card processing fees.
• 📊 The company aims to generate additional revenue through anonymous data analytics for retailers and an API for third-party integrations.
• 🏙️ Buffalo, New York, was chosen for its lower operational costs compared to California, allowing for easier employee expansion.
• 🌟 Store Cash has acquired 65,000 users within 11 months and aims to reach 3 million by the end of 2024.
• 🤝 The company's business model includes a subscription fee of $2 per month, encouraging regular usage and increased savings.

Q & A

What is Store Cash and how does it work?

Store Cash is a mobile payment solution that allows users to receive cash back by shopping at participating retailers using QR codes and barcodes. Users receive real-time notifications about cash back opportunities, and after shopping, they simply scan a QR code at checkout to complete their payment.

What problem does Store Cash aim to address?

Store Cash addresses the issue of many Americans living paycheck to paycheck, helping them save money while shopping. It also highlights the fact that retailers are missing out on significant market potential by not targeting this demographic.

How much can users potentially save by using Store Cash?

Users can save over $900 annually by using Store Cash, with many users reporting savings ranging from $30 to $150 per month.

What is the target audience for Store Cash?

The primary target audience for Store Cash consists of women aged 30 to 39, as they have shown to be super users of the service.

What is the company's growth trajectory in terms of user acquisition?

In just 11 months, Store Cash has acquired approximately 65,000 users and is projected to reach $3 million in annual recurring revenue (ARR) by the end of 2024.

How does Store Cash differentiate itself from traditional payment systems?

Store Cash bypasses traditional payment rails, such as Visa and MasterCard, allowing it to offer users higher cash back percentages. By utilizing QR codes and barcodes, it operates within a closed-loop system, resulting in lower transaction costs.

What is the subscription fee for Store Cash and why is it charged?

Store Cash charges a subscription fee of $1.99 per month. This fee encourages users to engage more actively with the app, as they typically save significantly more than the cost of the subscription.

What future revenue streams does Store Cash plan to explore?

In addition to the subscription model, Store Cash plans to generate revenue by providing anonymized data to retailers and developing API capabilities that allow other services to access their payment system.

What challenges does Store Cash anticipate from traditional payment processors?

Store Cash acknowledges that traditional payment processors like Visa and MasterCard may view their model as a threat and could potentially respond with competitive measures. However, the company believes that recent changes in money transfer regulations work in their favor.

Why did the CEO choose Buffalo as the company's operating base?

The CEO chose Buffalo to reduce operational costs, as living expenses in California are significantly higher. Additionally, establishing a base in Buffalo allows for the hiring of more employees and creates a more sustainable business environment.