消費者以及公司之線上付款平台 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧ 國. 學 ‧. 消費者以及公司之線上付款平台. Enterprise. n. Ch. engchi. er. io. al. sit. y. Nat. Online/Mobile Payment Platform for Consumer and. i n U. v. Student: Henry Chang Advisor: Professor Professor Jack Wu. 中華民國一〇五年六月 June 2016.

(2) 消費者以及公司之線上付款平台 Online/Mobile Payment Platform for Consumer and Enterprise. 研究生：張漢光指導教授：吳文傑. 立. Student: Henry Chang Advisor: Jack Wu. 政治大. ‧ 國. 學國立政治大學. ‧. 商學院國際經營管理英語碩士學位學程. y. A Thesis. n. a. er. io. sit. Nat. 碩士論文. v. i l to Submitted C International MBAnProgram. i U. h. e n g c hUniversity National Chengchi. in partial fulfilment of the Requirements for the degree of Master in Business Administration. 中華民國一〇五年六月 June 2016.

(3) ABSTRACT Online/Mobile Payment Platform for Consumer and Enterprise By Henry Chang Due to the increasing mobility of the people as a whole and the further need of convenience, so does the need for increasingly mobile payment platform. Rather than using cash, which is difficult to keep track as the number of transactions increase, a form of digital/ e-payment system is preferred. At the same time, however, credit cards are also falling out of favor due to the inherent lack of security of credit cards and the lack of convenience, not to mention the added burden to the users of having to constantly check and re-check their transaction receipts/ proof of payment.. 立. 政治大. ‧. ‧ 國. 學. This is why a completely separate payment method that is non-cash and non-credit card should be implemented more. In the United States, the preferred digital payment platform is Paypal; while in Mainland China, it is Alipay. Despite being one of the most technologically aware countries in the world, Taiwan does not have a wide, commonly used digital payment platform that is also integrated to physical stores. This is partially caused by the legal limitations of the payment platforms, but this limitation does not apply to already existing digital payment platforms or banks.. sit. y. Nat. n. al. er. io. The decline in digital payment platform growth is caused by the lack of convenience in using it; in the sense that it is not widely available for usage. This is why if a digital payment platform is to be made, it must start from a peer-to-peer payment before moving into commerce. This is the reason for PaySplit’s existence.. Ch. engchi. i n U. v. Starting from a peer-to-peer payment reconciliation and balance checking, we aim to move into the commerce and business-to-consumer and business-to-business payment as well. Though the revenue flow seems non-existent, there are many ways for payment platforms to make money, including, but not limited to advertising, leeching payment, service charge, etc. If the figures hold, this business is very feasible and we should have a break even on the second year of operation. Keywords: Transaction, convenience, mobile, payment platform, non-cash, non-credit card, peer-to-peer, business-to-customer, business-to-business, revenue flow, reconciliation, digital payment. i.

(4) Acknowledgement I would first like to thank my thesis advisor Prof. Jack Wu of the International MBA at National Chengchi University. The door to Prof. Wu’s office was always open whenever I ran into a trouble spot or had a question about my research or writing. He consistently allowed this paper to be my own work, but steered me in the right direction whenever he thought I needed it. I must express my very profound gratitude to my parents and especially my spouse Jacqueline Hsieh for providing me with unfailing support and continuous encouragement throughout my years of study and through the process of researching and writing this thesis. This. 政治大. accomplishment would not have been possible without them. Thank you.. 立. I would also like to acknowledge my classmate Elroy Sudiro and classmate with a similar name. ‧ y. sit. n. al. er. io. Henry H. Chang. Nat. Author. ‧ 國. this thesis.. 學. to mine, Henry Chang of the IMBA who helped and supported me during the process of writing. Ch. engchi. ii. i n U. v.

(5) TABLE OF CONTENTS Introduction .............................................................................................................................. 1 Business Plan Canvas ............................................................................................................... 7 OPPORTUNITY....................................................................................................................... 9 Target Market ........................................................................................................................... 9 Problem & Solution ................................................................................................................ 10. 政治大. EXECUTION .......................................................................................................................... 12. 立. Operations ............................................................................................................................... 12. ‧ 國. 學. Milestones & Metrics.............................................................................................................. 16 SWOT Analysis ....................................................................................................................... 17. ‧. Competition ............................................................................................................................. 19. y. Nat. er. io. sit. Revenue Source ....................................................................................................................... 22 COMPANY ............................................................................................................................. 24. al. n. v i n Ch Overview .................................................................................................................................. 24 engchi U Team ........................................................................................................................................ 24 FINANCIAL PLAN ................................................................................................................ 26 Forecast.................................................................................................................................... 29 Calculations ............................................................................................................................. 32 Final Conclusion ..................................................................................................................... 32 Appendix ................................................................................................................................. 33. iii.

(6) List of Figures and Tables Figure 1 ...................................................................................................................................... 7 Figure 2 ...................................................................................................................................... 8 Figure 3 ...................................................................................................................................... 9 Figure 4 .................................................................................................................................... 37 Figure 5 .................................................................................................................................... 37. 政治大. Table 1 ..................................................................................................................................... 14. 立. Table 2 ..................................................................................................................................... 22. ‧ 國. 學. Table 3 ..................................................................................................................................... 22 Table 4 ..................................................................................................................................... 32. ‧. Table 5 ..................................................................................................................................... 33. y. Nat. n. al. er. io. sit. Table 6 ..................................................................................................................................... 34. Ch. engchi. iv. i n U. v.

(7) EXECUTIVE SUMMARY Introduction Market Introduction E-commerce transactions since 2014 has increased annually by 15% to over NT$900 billion (US$28.5 billion), according to Taiwan’s Financial Supervisory Commission (FSC). At the end of 2014, total smartphone shipments expanded to 22.58 million units, nearly equaling Taiwan’s population, according to the research firm IDC.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 1: Number of Taiwan Mobile Payments by Method (in Millions £). IDC estimates that mobile payments in Taiwan will increase by 42% to NT$89 billion (US$2.84 billion) this year and to NT$160 billion in 2017, with most transactions coming from mobile commerce. Taiwan FSC forecasted that enactment of the legislation will increase Taiwan’s e-commerce market transactions from NT$880 billion (US$28.9 billion) in 2014 to between NT$1.2 trillion to NT$2 trillion (US$39.3 billion and US$65.6 billion) in 2015, making online shopping in Taiwan a “trillion-dollar industry. Perhaps the greatest challenge facing Taiwan’s 1.

(8) new payment technologies and platforms is persuading consumers of their benefits. To begin, cash transaction remains commonplace in Taiwan, accounting for 75% of overall payment transactions. At the same time, according to a 2014 worldwide study by the Centre for Economics and Business Research Institute (CEBR), in which they described their finding regarding to the future of payment methods to have a growth trend in the non-card non-cash payments, which includes "mobile payments, coupons and PayPal". It is forecasted that the non-card and noncash payment will have an increase from 9.3% of all transactions as of 2014 to 19.6% by 2019. In value terms, CEBR has forecasted the worldwide growth from 3% to 7% of the value of retail transactions between 2014 and 2019.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 2: Total Value of Retail Transactions at British Retail Consortium members by payment method. CEBR at the same time has forecasted that the number of transactions and total value of transactions worldwide will have an exponential growth all the way t0 2019. CEBR believes the main contributors to the future growth of this category will be mobile wallets/mobile payment platforms and PayPal and also various mobile payment platforms, some of which are operated by Internet giants such as Google, others by mobile operators and others by handset companies.. 2.

(9) 政治大. Figure 3: Number of Non-Card Non-Cash Payment Methods by Number and Value. 立. Problem. ‧. ‧ 國. 學. The current advancements in mobile devices have opened up a new range of possibilities particularly in payment platforms. Mobile payments can be used by accessing a web page through the web browser on your mobile device or by using a downloadable application on your mobile device. The amount of the payment may be applied to your phone bill, charged to your credit card, or withdrawn directly from your bank account.. sit. y. Nat. n. al. er. io. Currently our interactions with payment systems have mostly been through credit cards and cash. Most of us have been in a situation where we scan our credit card on a card reader and try to sign the screen and don't feel satisfied. It's very inconvenient and it might be even more stressful if you are out and about having a great dinner with your good friends and when the bill arrives and you do not know how to split the check, more so how to calculate the tax and how much each person is supposed to pay to the other person back in a situation like this, it could easily ruin the atmosphere or a great night out. At the same time, if a company has multiple vendors and they do not wish to have many different payments due and terms which tends to get their desk flooded in a sea of receipts and invoices. At the end of the day, their accounting book will not match and will cause them all sorts of trouble.. Ch. engchi. i n U. v. Solution Applink's PaySplit will be the best way to share bills and IOUs and make sure that everyone gets paid back. With an easy setup, we can instantly help you calculate and split any kind of bill while including any kind of additional fees you will have (Tax, tips, interest, etc.) 3.

(10) - Keep track of apartment bills, group trips, restaurant bills, IOUs, and more - Split the bills between friends, buyer and vendor - Loan or borrow funds between app friends - Everyone can log in, see their balances, and add new expenses - Users no longer have to deal with their expenses with cash; using the app the pay as a replacement of cash or credit card - Get push notifications with every update, or just when important bills are due - Set up instantly with PiApp. 治政 this will allow users to be local tourist guides for a大 fee that they determine with the 立 tourists. - Allow users to input their personal information to state what languages they are fluent in.. ‧ 國. 學. - businesses can place advertisement for their business - expand market or do market research for practically free. ‧. - allow businesses to be more intimate with foreign users; not only local - help tourists enjoy more of Taiwan for less. sit. y. Nat. al. er. io. Use PaySplit to split household bills with roommates, to figure out costs for a group vacation,. n. or just to remember when a friend spots you for lunch. On your smartphone, on the. Ch. i n U. v. PaySplit website, and even on the Apple Watch, you can view your balances, track spending. engchi. trends, set up email reminders for bills, and much much more!. Competition -. Alipay is a third-party online payment platform with no transaction fees. It was launched in China in 2004 by Alibaba Group. Alipay operates with more than 460,000 Chinese businesses domestically and internationally it has more than 300 merchants who uses Alipay to sell directly to consumers in China. As of January 2016, Alipay has 400 million active users, 80 million transactions from users daily, and owns 70% of the total mobile payment in China. It supports transactions in 14 major foreign currencies and it's the largest mobile payment company in the world. It's one of the main competitors to PaySplit due to the fact that all Chinese Tourist from China will be using this app when they travel abroad. And with over 4 million tourists from 4.

(11) China visiting Taiwan every year, it will definitely take up a large percentage of the. -. app users who is coming to Taiwan and willing to use PaySplit as it's mobile payment app. Splitwise was established in the USA in 2011 and it's a mobile app/web platform that helps people share expenses with their friends. It helps Roommates, travelers, couples, and friends use Splitwise as a "shared ledger in the cloud." Friends enter shared bills, IOUs, and payments as they occur, and Splitwise tracks who owes who. In 2014, Splitwise received a US$1.4 Million funding and is currently one of the most innovative and top Bill splitting and IOU reminder App in the USA. Even though. 政治大. Splitwise is a lot more mature than us and their function is very similar to PaySplit, but it's current market is mainly concentrated in the US and thus it wouldn't effect us. 立. as PaySplit is more focused at the moment in the Taiwan market. Gash Pay is one of the newest and biggest third-party online payment platform currently in Taiwan. In October 2015, the parent company name Gamania Group which specializes in online games and multi-platform digital content was awarded the license to be one of the first company to legally provide third party payment service online in Taiwan. Gash Pay currently has over 3 million individual users and its goal is to expand and have over 10 million individuals and companies. ‧. ‧ 國. 學. -. sit. y. Nat. n. al. er. io. using its service. Gash Pay could be a huge competitor to us, but currently it has a 2% transaction fee for using its transaction service. We believe PaySplit has the advantage since by waiving out the transaction fee, and making the interface more user friendly, more customer would choose us over Gash Pay. Line Pay was introduced in Taiwan by Line Corp. back in August 2015. Line currently has over 215 million users around the world and more than 17 million in Taiwan, which amounts to almost 75% of the population. Line Pay will allow users to make payments through the app at affiliated online and brick-and-mortar stores by registering their credit cards and at the same time it allows Line users to send money to one another. Line Pay users can also deposit up to NT$10,000 (US$316) on. -. Ch. engchi. i n U. v. their Line accounts through email verification, or deposit up to NT$100,000 if their Line accounts are integrated with their virtual bank account. Line Pay can be a huge competitor and risk for Applink and especially to PaySplit because if all the consumers are familiar and use Line Pay regularly, it will be challenging to convince them to switch to another App. One of the biggest challenge is to be the innovator in the curve and get into the market before others in order for the users and consumers to 5.

(12) be familiar to us before others corporate giants like Line comes in and take over everything.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 6. i n U. v.

(13) Business Plan Canvas Key partners. Key activities. Value proposition.  PiApp  Facebook  Google play store  iOS app store. General:  Bill sharing  Fund lending/ borrowing  Payment  Group Travelling/ Meals  Financial supplier management  Tab tracking  Cutting out [money] middleman  Order Reservation  Optimization of payment  Tourists and tour guide matchmaking.  Convenience  Risk minimization  Optimization of cash flow (reduce middlemen)  Cost reduction  Tourists and tour guide matchmaking. 政治大. 學 sit. n. er. io. al. y. Nat. Enterprise/ corporate:  Data mining/ analysis  Advertising  Analyze cost and margin  Promotion from businesses to users  Supply chain management. ‧. ‧ 國. 立. Customer relationship  Automated services  Community creation  Co-creation. Ch. engchi. 7. i n U. v. Customer segment  Consumers  Tourists  Every member of the supply chain.

(14) Key resources. Channels.  Strong software engineer  IT backup  Dedicated Processing unit  Regular updates/ maintenance Patent.  App store/ Play store  Website Phases: 1. Awareness: Email campaigns, Blog, book, Demo days at workshops & startup accelerator 2. Evaluation: Blogs regarding to similar app to stay competitive. Demo days at workshop & Startup Accelerator 3. Purchase/Delivery: App Store (iOS) or Play Store (Android). Normal P2P version of the appCredit/Debit cards can be used through the ePlatform to purchase the premium version (1 time free). Enterprise version needs a monthly subscription. 4. After sales: Provide software updates and server maintenance regularly and establishing a customer service rep on the phone/online for questions.. 學. ‧ 國. 立. 政治大. Revenue streams  Sales of language packs  Sales of enterprise version  Additional transaction for free users  Subscription for enterprise users  Promotion & Advertisement. ‧. Cost resource  Software development (before)  Webpage & app (after)  Maintenance (after)  Updates (after)  Translators  Digital Security  Electricity for processing unit. n. er. io. sit. y. Nat. al. i n U. Table 1: Business Plan Canvas. Ch. engchi. 8. v.

(15) OPPORTUNITY Target Market AppLink aims to create the most value possible for our users, which is why we will create different versions of the app because different target markets will have different needs or requirements to the app. Because PaySplit uses PiApp's platform, the maximum number of PaySplit users will be the same number of PiApp users, which is 110,000 users in the beginning. Client users. 政治大 PaySplit Client is a free-to-use transaction helper app, which is rarely available today. Client 立 is designed as a peer to peer transaction helper. This version is the version of PaySplit which ‧. ‧ 國. 學. is free with several additional charges which will be incurred following certain rules. The main purpose of this version is to help users to split checks, bills, and IOUs. Each user must add their friends in the PaySplit community first before they can start using this feature. At the same time, by enabling the location information of the client users, PaySplit can give Client users information regarding promotions and possible deals from the Enterprise users. After adding in our corporate partners as their PaySplit community friend, Client users can use PaySplit to pay their bills to our corporate partners. n. al. er. io. sit. y. Nat. Businesses. Ch. engchi. i n U. v. Specially designed for local businesses, PaySplit Enterprise offers users supply chain management for a small fee. Enterprise users can keep track of their transactions from the entire supply chain and help convenience the users by eliminating the need to keep, store, and refer to physical receipts or data. We believe this feature is desirable because it will help them increase efficiency across the supply chain. With the transaction calculator built into PaySplit Enterprise, users can also reduce the unnecessary step of manually going over their accounts. On the other side of the supply chain, AppLink will integrate the Enterprise to Client to allow Client users to place an order prior to their arrival. This will not only reduce the waiting time of Client users, it will also increase efficiency and utilization of the Enterprise users' resources by increasing the people turn around time. Called SmartOrder, this feature will increase the efficacy of Enterprise users' scarce and valuable resource; namely seats and time. 9.

(16) Based on these SmartOrder purchases, Enterprise users will be able to glean more on their customers' purchasing habits and will be able to analyze customer data; such as the popularity of a branch, the best sellers in each outlet, how they perform compared to competitors within the area which uses PiApp, et cetera. Enterprise users can establish a connection and increase exposure to Client users through ads. With location enabling system, Enterprise users will be able to give more effective promotions to their customers. Tourists. 政治大. PaySplit Travel is aimed towards foreign tourists coming into Taiwan. Each download allows users one language pack outside of Traditional Mandarin and English, such as Simplified Mandarin, Japanese, Korean, et cetera. Travel users are also equipped with an integrated phrasebook, currency converter, and simple travel guide which Client users can provide, fact checked by other users. Tourists who use PaySplit Travel can pay their expenses in Taiwan using any currency they own in their account. One of the unique features of PaySplit Travel will be the tour guide-tourist matchmaking feature. This will allow Client users to be a travel guide to users of Travel. They can discuss on guide fees, locations they are interested in, and any local deals that they might be interested in. However, keep in mind both parties will have. 立. ‧. ‧ 國. 學. sit. y. Nat. er. io. to sign a covenant to not sue; and any legal proceedings will have to be settled individually without AppLink's intervention.. n. al. Problem & Solution C h e n c h i g. i n U. v. Problem Worth Solving In Taiwan, most of the transaction in day-to-day business is done in cash. This might not be favorable to certain newcomers, foreigners, or even locals. One of the main reasons is because of the high volume of cash transactions done daily is huge; and dealing with coins is also not desirable because they are cumbersome, heavy, and difficult to track. Cash transactions also increase the probability of a regular consumer to go beyond their budget, which is why this app exists. Businesses in Taiwan deal with many suppliers, distributors, and business partners who might not allow transactions in credit and allow only cash transactions; especially in small and 10.

(17) medium enterprises. The other problem that arose is the number of receipts that they will have to sort through to handle their accounts accurately. Lack of money changers also creates problems for people who deal in foreign currency; local or foreign. With only 12 authorized money changer, it is not convenient to exchange money; not to mention the high service fee, exchange rate gap, and the bad exchange rate. Which may delay necessary transactions or even hinder foreign transactions.. Our Solution AppLink's PaySplit aims to renew and revolutionize the way people do transactions. With this. 政治大. app, we will help users to keep track of their more; functioning as an automatic ledger for the users. We aim to make this app robust, versatile, reliable, and secure so that users no longer have to worry about whether they will go beyond their budget. Beyond this, PaySplit aims to make our users more productive in their daily life by reducing, limiting, or even eliminating their need to calculate and then re-check their accounts. We also wish to remove the possibility of any tax related issues that users may encounter in their life.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 11. i n U. v.

(18) EXECUTION Operations Locations & Facilities AppLink is a mobile/ web based financial service provider. This means AppLink will need a fixed base of operations/ headquarters. Given that the main focus of our operations is in Taiwan, it would make more sense to set it up in Taiwan. Which is why the base of operations for AppLink will be in Taiwan.. 政治大. Due to the small size of the current projected operations, it can run from practically anywhere as long as it has good internet connection. Because Taiwan has the eighth fastest internet in. 立. ‧. ‧ 國. 學. the world, we believe this will be adequate for running the operations of AppLink. Other supporting reasons are because developers are relatively cheap in hourly wages; depending on the contract agreed upon by both parties; and Taiwan has an abundance of software developers so the price of a developer is competitive and easy to find. Although humidity might be an issue, it is manageable by current technology.. sit. y. Nat. Technologies & Functions. n. al. er. io. The app was developed using the Python language. Which makes it universally compatible to internet and mobile applications, not to mention versatile, robust, and highly customizable. The application will be available in Traditional Mandarin and English which are the most common language used especially in Taiwan.. Ch. engchi. i n U. v. The application is geared for iOS and Android as well as a webpage to increase coverage and user base. We partner with PiApp as the payment platform because it can generate a digital barcode or QR code for ease of use using the camera of the users' phone. Applink's PaySplit is a versatile transaction tracking application with different functionalities depending on the version used. The first version which will be for free for P2P payment, called PaySplit Client will allow users to add their friends to our dedicated community. This will then allow each users to split the bill according to their purchases, as well as the tip and/or tax they will have to pay. Every user will be allowed 5 transactions a day with each transactions' value NTD 200 or less. Every additional transaction will be charged accordingly. 12.

(19) PaySplit Premium Client is a paid service that gives more freedom for the users in terms of transaction number and value. For a small fee of NTD 30, users will be able to use PaySplit services for an unlimited amount, both transaction and transaction value. PaySplit Enterprise is aimed for corporate partners, Small-Medium enterprises, and Night markets. Enterprise will have a download fee of NTD 1,000 and a subscription fee of NTD 250. Each user will have a parent account and a maximum of 5 subsidiary accounts. Every additional subsidiary account will be charged NTD 100, without any change to the subscription fee. Enterprise has a front end and back end application which will give the capability of [Client] and also keep track of current stock/ inventory, value of accounts payable and receivable, as well as orders from clients.. 政治大 These features will allow Enterprise users to analyze every step of their business and also 立 provide a general data analysis for their industry, which AppLink will provide for free.. ‧ 國. 學. ‧. Enterprise users can participate in a Deal of the Week bid for a special advertisement in AppLink which will not only give the Client users special promotions from our Enterprise users, but also help with their data mining activities. This Deal of the Week feature is only available to companies who made it into our top 10 bid pool. The highest bidder has priority over the others to set when their promotions will take place and be shown. Participants who did not make it to the top 10 will have their buy in fee refunded.. er. io. sit. y. Nat. The connection between Client and Enterprise does not stop there. Client users can order items from Enterprise users for their goods and/ or services prior to arrival which will not only save time, but also make it more convenient for everyone in the supply chain.. n. al. Ch. engchi. i n U. v. The ultimate goal is for us to help tourists, foreign and domestic to enjoy more of Taiwan for less. The Travel version will have multiple language packs available for a small fee of NTD 5, give travel information for nearby attractions, and allow either Client users to sign up as tour guides for a fee agreed upon by both parties. The focus of the Tourist version is in the lesser known tourist spots that common Travel agencies do not cover so that tourists can enjoy an authentic Taiwanese experience. Every version will keep record of the users' transaction location and digitally generate receipts which will allow nearby Enterprise users to push notifications of limited time deals and offers.. 13.

(20) Regulatory Requirements Although third-party payment is already one of the most popular ways to do the payment online in many countries; for example: Alipay of China and Paypal of USA, third-party payment in Taiwan is just about to start. On June 2015, the Taiwan Executive Yuan passed an amendment to the Act Governing Issuance of Electronic Stored Value Cards in June that authorizes the electronic stored value cards to conduct third-party online payments. Prior to this, a third-party payment system in Taiwan is unable to deposit stored value in advance. The problem with this is that this is one of the most basic, vital functions of third-party payment system abroad, such as Alipay in China and Paypal in USA. Mainly, the main service third-party payment platforms provide in Taiwan is money transaction based on real trade. At the same time, the amendment builds on another bill passed by the Legislature in January 2015 that provided a legal basis for local companies to run third-party online payment businesses [footnote]. Another clause in the new amendment allows a cardholder whose name appears on the card to transfer their funds to other third-party payment accounts registered under his or her name, with the maximum amount of transfers being limited to a maximum of NT$30,000 per day and NT$300,000 per month.. 立. 政治大. ‧. ‧ 國. 學. sit. y. Nat. io. n. al. er. Partners & Resources. i n U. v. Due to the limitations imposed by the government of Taiwan on 3rd party payment platforms, AppLink will need partners to not only fulfil our resource requirements, but also to get the brand recognition we need. However, partnerships should be in a reciprocal relationship which is why we will help our partners in anyway possible as long as it does not hinder our business and/ or our daily operation. If the cooperation helps us, then we will be able to increase both the value and the time to make sure both parties have a good relationship for as long as it lasted and needed.. Ch. engchi. Our primary partner in operations will be PiApp, which was started in May 2015 as a third party payment platform and it was owned by 路家庭國際資訊股份有限公司, it was hosted by Taiwan Fixed Network CO.LTD. According to Easycounter.com, "Piapp has the lowest Google page rank" because it is "poorly ‘socialized’ in respect to any social network". This will be a benefit to us because we can help to increase their visitor count, exposure, user base; but at the same time we will not need to worry too much about the platform's security. 14.

(21) Because PiApp's greatest need at this moment is exposure, we can help by increasing their exposure; if they allow us to use their platform. We can generate ads on our website and app for PiApp to increase their exposure and hopefully internationalize PiAp. In exchange, PiApp can generate ads for us in their webpage and their app. PiApp's biggest weakness at this moment is the lack of brand awareness from the users. Because we have a relationship with NCCU IMBA program, we have the network and ability to bring PiApp to the world. Since Taiwan has a "Third-party Payment Restriction", we will ask PiApp in exchange to allow us to use their platform. We wish to cooperate with PiApp because according to Siteadvisor and Google safe browsing analytics, Piapp.com.tw is quite a safe domain with no visitor reviews".. 政治大. We also wish to cooperate with local businesses and eventually international corporations. One of companies' biggest cost is the marketing department's advertising cost. In cooperation with local businesses, we will provide them with a low cost, but high exposure ad which the company themselves can design and set the quality of the ad in-house. In cooperation with the users of the enterprise version of the app, we can give the users of the Client version who will be the customers of the Enterprise version the ability to make a smart order which allows ordering to be done through the app before a Client's arrival to the destination, and for example we can reserve a table at a restaurant as long as the user make a security deposit, they can make their order first and have their food ready upon arrival at the restaurant.. 立. ‧. ‧ 國. 學. er. io. sit. y. Nat. al. n. This type of service can be used in any kind of businesses as long as it agrees to the end user license agreement. To give added value to our corporate partners, PaySplit will record customer's purchases and then we will generate the raw data into a report for the Enterprise users for analysis and review. The data given can help enterprises generate more effective ads and promotions and maybe even new products because it can help the businesses to get to know customers better. Business generate revenue for AppLink by the PaySplit advertisement or DoW bids. We would like to focus mainly on B2C industries for the first stage of our business plan because according to the Nielsen report, 32% of the Taiwan consumer market is on food and beverages.. Ch. engchi. 15. i n U. v.

(22) Milestones & Metrics Milestone. Due Date. Details. Beta Testing. September 01, 2016. PaySplit Beta Version Release. 1st milestone. October 04, 2016. PlaySplit Client 1.0 Release Language pack release: Simplified Mandarin, Japanese, Korean, English. Each individual language pack is NTD 5Bundle of 2 for NTD 8Bundle of 3 for NTD 12. 2nd Milestone. December 30, 2016. PaySplit Enterprise version release; update 1.1. 3rd Milestone. February 28, 2017. PaySplit Travel version released. Enterprise update 1.1Travel version allows users to be Tour Guides for a fee agreed upon by both parties. Travel version includes currency exchange (limited 5 per day, more costs extra). 立. 政治大. 5th Milestone. October 01, 2018. ‧ 國. May 02, 2017. PaySplit Digital receipts generation implemented for free and enterprise users; version 1.3 all Develop own 3rd party payment platform. 學. 4th Milestone. Table 2: Milestones and Metrics. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. Table 3: SWOT Analysis 16. i n U. v.

(23) SWOT Analysis Strength: -. Convenience (Client) The main purpose of PaySplit is empower every users, especially the Client users to control their own non-bank, non-cash, non-credit card accounts. -. Integrated (Enterprise) Enterprise version will allow the Enterprise users to unite their entire supply chain management system to a single digital, online platform. -. 治政 PaySplit's platform is designed to work with currently 大 available 3rd party payment 立the availability of internet connection, some features of PaySplit system. Even without Robust (Both). ‧ 國. -. 學. will still be usable Versatile (Both). ‧. PaySplit's platform is designed to work for everyone; with intuitive controls; and easily customisable for users.. Nat. High internet speed in Taiwan. -. With the 8th fastest internet in the world, this ensures little to no delay of transaction. sit. n. Weakness: -. al. er. io. update.. y. -. Ch. engchi. Limited Resources (Platform and cash). i n U. v. Because AppLink is still a startup, the availability of resources such as money and self-owned platform is still difficult. This will be mitigated after AppLink grows to a bigger company. -. Startup AppLink's status as a startup means that the corporate relations are still limited. Hopefully as the users grow, this status can change and AppLink will be more recognizable as a brand name.. -. Time to implement Currently the mobile payment platform is still a new market, there is still little competitors to AppLink in Taiwan and the opportunity to gain market control is still 17.

(24) large. On the other hand, this also means that AppLink will have to deploy as soon as possible; even if the product is not 100% finished. This can be mitigated with more updates and maintenance.. Opportunity: -. Large target and up and coming trend/market With a population of more than 23 million people and a high tourism traffic, the potential for PaySplit is nearly limitless. With the non-cash, non-credit card payment method becoming more popular overseas, PaySplit can exploit this phenomenon to establish itself as the payment platform to use.. 政治大 Transaction volume in Taiwan is comparatively large, but still cash-dominated. With 立 the 3rd party payment platform becoming more significant in the near future, this High potential traffic. 學. ‧ 國. -. means the cash transaction volume can be reduced and replaced with AppLink's PaySplit.. ‧. -. Large amount of SME in Taiwan as potential customer. Small and medium enterprise in Taiwan still focuses much of their transaction to both. y. Nat. sit. customers and suppliers with cash or wire transfer. However, both methods can be. al. er. io. difficult, inconvenient, and unsafe because of potential criminal activity. PaySplit. v. n. aims to mitigate this issue by providing a digital platform for transaction that is more. Ch. robust and versatile than the ones available. -. People are lazy and careless. engchi. i n U. People in general get busier as time passes because they are occupied with work, family, etc. This can make them more careless in managing their finances, put it off entirely, or lose vital transaction data. By using PaySplit, they do not have to do anything because PaySplit will do all of this for them.. Threat: -. Partners might not want to cooperate As stated, AppLink is a startup; this makes our cooperation with business/ corporate partners more important than their cooperation with us. In a way, we need them more than they need us. This is AppLink will promote business cooperation; not only to 18.

(25) draw attention for potential customers, but also for potential business partners; thereby creating a symbiosis that benefits both of us. -. Law and Regulation Many digital platforms are still government regulated which lowers the entry points of new businesses. Hopefully, if this issue gets resolved, PaySplit can be the first to enter the free market, establishing ourselves as the pioneer.. -. Easy to Copy One of the largest weaknesses of the high tech industry, especially in the software area means that idea theft, copying, or even piracy a vital issue. This is why AppLink will. 政治大. create an advantage which is difficult or even impossible for other competitors to copy.. 立. Security. 學. ‧ 國. -. The high tech security stores most of their data online, in the cloud, or in digital form, which seems convenient at a glance. However, this also brings up another issue with. ‧. security, namely security breaches and data theft, which makes firewall and other security measures vital to the point of survival.. y. Nat. Banks that might not take too kindly of third party payment. sit. -. al. er. io. As one of the oldest established financial institutions, one of banks' main revenue flow. n. is from transaction fees. Once PaySplit is established, banks might take certain legal. Ch. i n U. v. actions against AppLink to make sure their revenue flow is secure. The best way to. engchi. mitigate this is by turning the banks not into competitors, but into corporate partners.. Competition Current Alternatives In the segment that Applink is positioning itself in this industry, the biggest competitors and threat that we will face are: -. Alipay is a third-party online payment platform with no transaction fees. It was launched in China in 2004 by Alibaba Group. Alipay operates with more than 460,000 Chinese businesses domestically and has more than 300 international merchants who uses Alipay to sell directly to consumers in China. As of January 2016, Alipay has 19.

(26) approximately 400 million active users, 80 million transactions from users daily, and owns 70% of the total mobile payment in China. Alipay supports transactions in 14. -. major foreign currencies and it's the largest mobile payment company in the world. It's a huge competitor to PaySplit due to the fact that all Chinese Tourist from China will be using this app when they travel abroad. And with over 4 million tourists from China every year that visits Taiwan, it will definitely take up a large percentage of the app users who is coming to Taiwan and willing to use PaySplit as it's mobile payment app. Splitwise was established in the USA in 2011 and it's a mobile app/web platform that helps people share expenses with their friends. It helps Roommates, travelers, couples,. 立. ‧. ‧ 國. 學. -. 政治大. and friends use Splitwise as a "shared ledger in the cloud." Friends enter shared bills, IOUs, and payments as they occur, and Splitwise tracks who owes who. In 2014, Splitwise received a US$1.4 Million funding and is currently one of the most innovative and top Bill splitting and IOU reminder App in the USA. Even though Splitwise is a lot more mature than us and their function is very similar to PaySplit, but it's current market is mainly concentrated in the US and thus it wouldn't effect us as PaySplit is more focused at the moment in the Taiwan market. Gash Pay is one of the newest and biggest third-party online payment platform currently in Taiwan. In October 2015, the parent company name Gamania. sit. y. Nat. Group which specializes in online games and multi-platform digital content was. io. n. al. er. awarded the license to be one of the first company to legally provide third party payment service online in Taiwan. Gash Pay currently has over 3 million individual users and its goal is to expand and have over 10 million individual and companies using it's service. Gash Pay could be a huge competitor to us, but currently it has a 2% transaction fee for using its transaction service. We believe because PaySplit has the advantage since by waiving out the transaction fee, and making the interface more user friendly, more customer would choose us over Gash Pay. Line Pay was introduced in Taiwan by Line Corp. back in August 2015. Line currently has over 215 million user around the world and more than 17 million in Taiwan. Line Pay will allow users to make payments through the app at affiliated. -. Ch. engchi. i n U. v. online and brick-and-mortar stores by registering their credit cards and at the same time it allows Line users to send money to one another. At the same time users can also deposit up to NT$10,000 (US$316) on their Line accounts through email verification, or deposit up to NT$100,000 if their Line accounts are integrated with their virtual bank account. Line can be a huge competitor and risk for Applink and 20.

(27) especially to PaySplit because if all the consumers are familiar and use Line Pay regularly, it will be difficult to convince them to switch to another App. One of the biggest challenge is to be the innovator in the curve and get into the market before others in order for the users and consumers to be familiar to us before others corporate giants such as Line come in and take over the entire market share.. Our Advantages Currently our competitors focus more on either communication or payment. Our goal is to unite both communications method, community creation and social networking, payment method, and the one thing they are not currently doing which is bill sharing. Bill sharing. 政治大 versatility of the app; we believe we can gain more users than our competitors. Our aim is not 立 just local users, but also enterprise, and foreigners/ tourists. might not seem like a profitable business, but with the correct customers, vendors, and. ‧ 國. 學. By implementing numerous readily available resources, we can increase our efficiency while ensuring the users' convenience and reliance on us and our services. Basing our services on. ‧. the market demands, we also make sure the customers are satisfied and feel secure with PaySplit.. y. Nat. sit. Because we will also use promotions for local businesses and tourist attractions, we aim to. er. io. increase awareness of Taiwan's yet untapped potential for not only tourism, but also. al. v i n regarding Deal of the Week fromC business, which needsUto be bid and a Promotion for the hengchi users. n. commerce. Cooperating with businesses, we will provide a pull-ad given to the users;. Our competitors do not have a front end and back end to their business. We aim to serve the whole supply chain which also includes the relationship of business to business. By leveraging on the consumer behavior with the businesses who use PaySplit, we can also give a free data analysis. PaySplit can also help businesses keep track of their cash flow and make Business to business transactions without relying on travelling or wire transfer. Focusing on Food and Beverage vendors, PaySplit allows customers to do a smart order, which permits customers to order food prior to their arrival and reserve a seat if they wish to; provided that they make a security deposit which will be refunded or deducted from their meal. The smart order means that customers can order food based on promotions or not prior to arrival at the restaurant which they will have to confirm some time before the registered 21.

(28) time. For example, a customer can order their food for 3 p.m. at 10 a.m. and make a security deposit of 1000 NT. The order data will have the customer's name and short data available through PaySplit's mobile platform. If they reconfirm their order on 30 minutes before their supposed arrival, namely 2.30 p.m. in this example, they can get their deposit back or have it deducted to pay for their meal. But, if they did not arrive until 4 p.m., they will lose their deposit and any right to the pre-ordered meal.. Revenue Source • PaySplit Client is a free to download app, with a limit of NTD 200 per transaction and 5 transactions per day. 政治大. • Any additional transactions will be charged an additional transaction fee of. 立. NTD 20. ‧ 國. 學. • Any transactions larger than NTD 200 will be counted as an additional transaction; depending on the value. ‧. • Example: an NTD 500 transaction will be counted as 3 transactions, each valued at: NTD 200, NTD 200, and NTD 100. Nat. sit. y. • Client version only has 1 language per install. Any additional language pack. io. er. will be charged NTD 5 per language pack. • PaySplit Premium Client will be priced at NTD 30 per download, but will have. n. al. unlimited transaction. Ch. engchi. i n U. v. • PaySplit Enterprise Version- One time download fee of NTD 1,000 and a subscription fee of NTD 250/month. • Each user will have a parent account and a maximum of 5 subsidiary accounts. Every additional subsidiary account will be charged NTD 100, without any change to the subscription fee. • Deal of the Week (DOW) – Minimum bid in of NTD 5,000; corporate partners that did not make it into the top 10 will have their bid in fee refunded. • PaySplit Travel version will be free to download with a focus on non-Mandarin language • The transactions limitations will be the same as Client 22.

(29) • Added service of currency converter, maximum 5 times a day and every additional conversion will be charged NTD 5.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 23. i n U. v.

(30) COMPANY Overview AppLink will be a startup company so we cannot hire too many people at the first stages. As founder, myself will be heading a team of up to 4 people. In its infancy, AppLink cannot hire people with overlapping job descriptions, so we do not have a redundancy system as security. However, we do consider having a team of contracted software developers and IT Specialists because we are certain that contracted employees will not only be more economical, it will also expand the talent pool we have to fulfill the ever changing needs of the company.. Team. 立. Management Team. 政治大. ‧ 國. 學. Henry Chang, CEO • Education:. ‧. • Undergrad- International Business. San Jose University,. y. Nat. • Exchange- International business and Japanese. Yokohama University. n. al. er. io. • Autobiography:. sit. • International MBA- National Chengchi University. i n U. v. • Extensive experience in administrative operation support, contract. Ch. engchi. specialization, and technical writing.. • Excellent analytical and problem-solving skills to drive business results, resolve conflict and achieve goals. • Strong organizational experience with a high level of attention to detail. • Strong knowledge of Microsoft Word, Excel, HTML and PowerPoint. • Excellent verbal and written communication skills. • Graduate from San Jose State University with progressive experiences in International and Japanese firms.. Advisors Prof. Jack Wu . Education 24.

(31) . Executive Education, Public Financial Management, Kennedy School of Government, Harvard (USA) Ph.D. Economics, University of Michigan (USA). . MA. Economics, National Chengchi University (Taiwan). . BA. Economics, National Chengchi University (Taiwan). Teaching Experience . TA and Lecturer, Department of Economics, University of Michigan, Ann Arbor, USA. . Assistant Professor, Department of Economics, Colgate University, USA. . Assistant Professor, Department of Public Finance, National Chengchi. . Associate Professor, Department of Public Finance, National Chengchi. 政治大 University, Taipei, Taiwan 立. 學. ‧ 國. University, Taipei, Taiwan. ‧. io. sit. y. Nat. n. al. er. . . Ch. engchi. 25. i n U. v.

(32) FINANCIAL PLAN Projected Profit & Loss Revenue. $917,423. $2,963,315. $3,323,315. Direct Costs. $1,615,698. $1,772,148. $1,925,508. Gross Margin. ($698,275). $1,191,167. $1,397,807. (76%). 40%. 42%. $5,000. $5,000. $120,000. $120,000. Gross Margin % Operating Expenses Salary Employee Related Expenses Language pack Translation. 立. $5,000. Food compensation. $120,000 $5,000. $12,000. y. $12,000. Nat. io. Advertisements (Google Ads and Facebook). $12,000 $120,000. $120,000. $120,000. $377,000. $377,000. ($1,103,025). $814,167. $1,020,807. Interest Incurred. $27,398. $36,383. $30,783. Depreciation and Amortization. $12,000. $12,000. $12,000. $0. $0. $102,218. $2,059,846. $2,197,531. $2,447,509. ($1,142,423). $765,784. $875,806. (125%). 26%. 26%. n. al. $120,000. $120,000. sit. $120,000. er. Travel expenses. ‧. Printer/ Fax / Scanners Printing Ink. 學. Stationaries. $2,000. ‧ 國. Business Cards. 政治大 $20,000. Google PlayStore Fee Total Operating Expenses Operating Income. Ch. n U engchi $404,750 $750. Income Taxes Total Expenses Net Profit Net Profit / Sales. iv. Table 4: Projected Profit and Loss Statement 26.

(33) Projected Balance Sheet FY2017. FY2018. FY2019. $1,277,512. $3,215,529. $5,073,569. $0. $0. $0. $1,277,512. $3,215,529. $5,073,569. $60,000. $60,000. $60,000. ($12,000). 治政 $48,000 大. ($24,000). ($36,000). $36,000. $24,000. $1,325,512. $3,251,529. $5,097,569. Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-Term Assets Accumulated Depreciation Total Long-Term Assets. 立. $0. $0. Income Taxes Payable. $0. $0. $102,218. Sales Taxes Payable. $155,945. $503,763. $564,964. Short-Term Debt. $823,866. $855,880. $571,324. y $1,359,643. $1,238,506. v$2,268,625. $3,359,996. $3,628,268. $4,598,502. $0. ($1,142,523). ($376,739). Earnings. ($1,142,523). $765,784. $875,806. Total Owner’s Equity. ($1,142,523). ($376,739). $499,067. $1,325,512. $3,251,529. $5,097,569. al. n. Long-Term Debt. $979,811. Total Liabilities. Ch. $1,488,224. e n$2,468,035 gchi. sit. $0. io. $0. Total Current Liabilities. $0. er. Prepaid Revenue. Nat. $0. ‧. Accounts Payable. 學. ‧ 國. Total Assets. i n U. Paid-in Capital Retained Earnings. Total Liabilities & Equity. Table 5: Projected Balance Sheet. 27.

(34) Projected Cash Flow Statement FY2017. FY2018. FY2019. ($1,142,423). $765,784. $875,806. $12,000. $12,000. $12,000. $0. $0. $0. $0. $0. $0. $102,218. $347,818. $61,201. $0. $0. $1,125,602. $1,051,225. Net Cash Flow from Operations Net Profit Depreciation and Amortization Change in Accounts Receivable Change in Inventory Change in Accounts Payable Change in Income Tax Payable. 立. 政治$0 大 $0. ‧ 國. $155,945. Change in Prepaid Revenue. 學. Change in Sales Tax Payable. $0. ‧. Net Cash Flow from Operations. ($974,478). Nat. io. al. n. Investments Received. ($60,000). er. Assets Purchased or Sold. sit. y. Investing & Financing. Change in Long-Term Debt. Ch. i n U. v. $780,401. $1,091,371. $32,014. ($284,556). $2,252,090. $812,415. $806,815. ($100). $1,277,512. $3,215,529. Net Change in Cash. $1,277,612. $1,938,017. $1,858,040. Cash at End of Period. $1,277,512. $3,215,529. $5,073,569. Change in Short-Term Debt. $1,488,224. e n g$823,866 chi. Dividends & Distributions Net Cash Flow from Investing & Financing Cash at Beginning of Period. Table 6: Projected Cash Flow Statement. 28.

(35) Forecast Key Assumptions Assumptions: • Assuming that we can do an ad exchange with PiApp and help with their business expansion, we will not have to pay them anything and will be able to increase our user base with a relatively realistic growth rate • Currently PiApp charges users with a 1.9% transaction fee. If we can negotiate with them to increase their user base, traffic, and exposure, we believe we can. 治政 Number of users in 2nd period is 57.1% (percentage 大 of people exposed to internet ads) 立users of PiApp) = 62,810 times 110,000 (current eliminate this 1.9% fee from our users; free and enterprise. •. ‧ 國. 學. • Rate of increase from:. • Beginning of beta testing period will be 100 free trials; assumed that everyone. ‧. will use this app as the pioneers. • 1 month after beta testing until 1st milestone user increase rate is 2.5%. Nat. sit. y. according to the adopters’ curve. al. er. io. • 1st milestone to 2nd milestone is 13.5%. n. • 2nd to 3rd is 34% • 3rd to 4th is 34%. Ch. engchi. i n U. v. • Deal of the week revenue is only from companies whose ads made it into the top 10 positions of the bid • companies start using the deal-of-the week promotion from December 2016 because it is near year end where companies commonly start an ad competition • From January 2017, the number of corporate partners who use the deal increase by a rate of 5 per month. Because of PaySplit's policy of 10 companies per week of the month, this number will be 40 at maximum • Each have a minimum buy in fee of NTD 5,000 for every week they bid into. 29.

(36) • For example, if McDonalds bid for the second week of April 2016 and they made it into the top 10 bid, they will have to pay a minimum fee of NTD 5,000 plus their additional bids • For the current calculation, we do not factor in the additional bid revenue • So far, the buy in fee of NTD 5,000 is used because we believe that the NTD 5,000 fee is low enough to gauge interest of corporate partners • As a benchmark, according to http://digiday.com/publishers/whatonline-ads-really-cost/, the cost of an ad in a branded mobile app is. 政治大 Enterprise version revenue is generated by the premium service which has a download 立 USD 125,000 per day. •. fee and a monthly subscription fee. ‧ 國. 學. • Because this is a professional app, the price will be NTD 1,000 per download and NTD 250 per month for every account. ‧. • Revenue will be cut by 30% for distribution channel fees. sit. y. Nat. • According to http://www.techrepublic.com/blog/softwareengineer/app-store-fees-percentages-and-payouts-what-developers-. io. n. al. er. need-to-know/. i n U. v. • Server cost is based on OneRack fees for Microsoft Windows + SQL Standard server 40 GB capacity. Ch. engchi. • Income tax is set at 17% according to Taiwanese law. 30.

(37) Revenue. 政治大. Figure 4: Revenue flow by year. 立. Net Profit (or Loss) by Year. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 5: Net Profit (or loss) by Yearta. 31.

(38) CONCLUSION. Calculations NPV after 2019 will be 1,154,873.38 IRR after 2019 will be 77% Payback period/ break even point assuming an arithmetic mean of cash flow based on net cash flow from operations will be in August 2018. Final Conclusion Project is feasible.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 32. i n U. v.

(39) Appendix. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 33. i n U. v.

(40) Profit and Loss Statement Profit and Loss Statement (With Monthly Detail). io. n. Operating Income Interest Incurred Depreciation and Amortization Income Taxes Total Expenses Net Profit. $132,454. $132,454. $132,454. $132,454. ($132,454) ($132,454) ($132,454). ($132,453) -13245300%. 政治大 $20,000 $2,000 $416 $10,000 $5,000 $1,000 $10,000. $416 $10,000. $416 $10,000. $416 $10,000. $1,000 $10,000. $1,000 $10,000. $1,000 $10,000. $10,000. $10,000. $31,416. $31,416. ($171,620) ($183,870) ($163,870). ($163,869). $10,000. $10,000. y. Nat. al. Sep '16 $1. ‧. ‧ 國. 立. Aug '16. 學. Gross Margin Gross Margin % Operating Expenses Salary Employee Related Expenses Language pack Translation Business Cards Stationaries Food compensation Printer/ Fax / Scanners Printing Ink Travel expenses Advertisements (Google Ads and Facebook) Google PlayStore Fee Total Operating Expenses. Jul '16. sit. Direct Costs. Jun '16. er. FY2017 Revenue. i n Ch $51,416 engchi U $750 $39,166. v. $0. $1,875. $1,996. $2,118. $1,000. $1,000. $1,000. $1,000. $0 $0 $0 $172,620 $186,745 $166,866 ($172,620) ($186,745) ($166,866). $0 $166,988 ($166,987). Net Profit / Sales. -16698700%. 34.

(41) FY2017 Revenue. Oct '16 $629. Nov '16 $51,273. Dec '16 $77,004. Jan '17 $90,333. $132,454. $132,454. $132,454. $136,204. ($131,825) -20958%. ($81,181) -158%. ($55,450) -72%. ($45,871) -51%. Direct Costs. $417 $10,000. $417 $10,000. $1,000 $10,000. $1,000 $10,000. $1,000 $10,000. $10,000. $10,000. $10,000. $31,417. $31,417. $31,417. n. al. Interest Incurred Depreciation and Amortization Income Taxes Total Expenses Net Profit Net Profit / Sales. Ch. ($163,242) ($112,598). engchi. $1,000 $10,000 $10,000. sit. er. io. Operating Income. $417 $10,000. y. Nat. $417 $10,000. ‧. ‧ 國. 立. 政治大. 學. Gross Margin Gross Margin % Operating Expenses Salary Employee Related Expenses Language pack Translation Business Cards Stationaries Food compensation Printer/ Fax / Scanners Printing Ink Travel expenses Advertisements (Google Ads and Facebook) Google PlayStore Fee Total Operating Expenses. iv n U($86,867). $31,417. ($77,288). $2,241. $2,364. $2,487. $2,612. $1,000. $1,000. $1,000. $1,000. $0 $0 $167,112 $167,235 ($166,483) ($115,962) -26468% -226%. $0 $167,358 ($90,354) -117%. $0 $171,233 ($80,900) -90%. 35.

(42) FY2017 Revenue. Feb '17 $118,774. Mar '17 $147,342. Apr '17 $201,275. May '17 $230,692. Direct Costs. $136,954. $137,704. $138,454. $139,204. Gross Margin Gross Margin % Operating Expenses Salary Employee Related Expenses Language pack Translation Business Cards Stationaries Food compensation Printer/ Fax / Scanners Printing Ink Travel expenses Advertisements (Google Ads and Facebook) Google PlayStore Fee Total Operating Expenses. ($18,180) -15%. $9,638 7%. $62,821 31%. $91,488 40%. $417 $10,000. $1,000 $10,000. $1,000 $10,000. $1,000 $10,000. $10,000. $10,000. $10,000. $31,417. $31,417. $31,417. $1,000 $10,000 $10,000. sit. y. al. n Operating Income. $417 $10,000. $31,417. er. io. $417 $10,000. ‧. Nat. $417 $10,000. 學. ‧ 國. 立. 政治大. Ch. ($21,779). $2,737. i n U. v. $31,404. $60,071. $2,863. $2,989. $3,116. $1,000. $1,000. $1,000. $1,000. $0. $0. $0. $0. Total Expenses. $172,108. $172,984. $173,860. $174,737. Net Profit Net Profit / Sales. ($53,334) -45%. ($25,642) -17%. $27,415 14%. $55,955 24%. Interest Incurred Depreciation and Amortization Income Taxes. ($49,597). engchi. 36.

(43) FY2017 $917,423. FY2018 $2,963,315. FY2019 $3,323,315. Direct Costs. $1,615,698. $1,772,148. $1,925,508. Gross Margin Gross Margin % Operating Expenses Salary Employee Related Expenses Language pack Translation Business Cards Stationaries Food compensation Printer/ Fax / Scanners. ($698,275) -76%. $1,191,167 40%. $1,397,807 42%. Revenue. 立. $120,000. $12,000. $12,000. $12,000. $120,000. $120,000. $120,000. $120,000. $120,000. $120,000. $404,750. $377,000. $377,000. $27,398. $36,383. $30,783. $12,000. $12,000. $12,000. $0 $2,059,846 ($1,142,423) -125%. $0 $2,197,531 $765,784 26%. $102,218 $2,447,509 $875,806 26%. y. n. al. Interest Incurred Depreciation and Amortization Income Taxes Total Expenses Net Profit Net Profit / Sales. sit. $750. er. io. Operating Income. ‧. ‧ 國. $120,000 $5,000. Nat. Travel expenses Advertisements (Google Ads and Facebook) Google PlayStore Fee Total Operating Expenses. $5,000 $120,000. 學. Printing Ink. 治政 $2,000 大 $5,000 $5,000. $20,000. v i n Ch ($1,103,025) e n g c$814,167 h i U $1,020,807. 37.

(44) Balance Sheet Balance Sheet (With Monthly Detail) FY2017 Cash Accounts Receivable Inventory Other Current Assets Total Current Assets. n. Paid-in Capital Retained Earnings Earnings Total Owner's Equity Total Liabilities & Equity. $822,512. $763,311. $704,111. $60,000 ($3,000) $57,000. $60,000 ($4,000) $56,000. Ch. $59,000. $58,000. $960,713. $880,512. $820,311. $760,111. $0 $0. $0 $0. $0 $0. $366,526. $407,250. $366,526 $766,807. $407,250 $832,627. $0 $0 $0 $489,204 $0 $489,204 $964,125. i n U. v. e$1,133,333 n g c h i$1,239,877 $0 ($172,620) ($172,620) $960,713. 38. y. $448,142. sit. io. Total Liabilities. $901,713. ‧. Nat. Accounts Payable Income Taxes Payable Sales Taxes Payable Short-Term Debt Prepaid Revenue Total Current Liabilities Long-Term Debt. al. Sep '16 $704,111 $0. 學. Total Assets. Aug '16 $763,311. $60,000 治 $60,000 政 ($1,000) ($2,000) 大. ‧ 國. 立. Jul '16 $822,512. er. Long-Term Assets Accumulated Depreciation Total Long-Term Assets. Jun '16 $901,713. $448,142 $898,400. $1,346,542 $1,453,329. $0 $0 $0 ($359,365) ($526,231) ($693,218) ($359,365) ($526,231) ($693,218) $880,512. $820,311. $760,111.

(45) FY2017 Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-Term Assets Accumulated Depreciation Total Long-Term Assets. n. al. Total Liabilities & Equity. $646,433. $677,325. $720,063. $60,000 ($5,000) $55,000. $60,000 ($6,000) $54,000. $60,000 ($7,000) $53,000. $60,000 ($8,000) $52,000. $700,645. $700,433. $730,325. $772,063. $0 $107 $530,436 $0 $530,543 $1,029,803. $0 $0 $8,824 $571,838 $0 $580,662 $1,095,434. $0 $0 $21,914 $613,410 $0 $635,324 $1,161,018. $0 $0 $37,271 $655,155 $0 $692,426 $1,226,554. $1,560,346. $1,676,096. $1,796,342. $1,918,980. $0 ($859,701) ($859,701). v $0 i n ($975,663) U. Ch. $700,645. $700,433. engchi. 39. y. sit. io. Paid-in Capital Retained Earnings Earnings Total Owner's Equity. $645,645. ‧. Nat. Total Liabilities. Jan '17 $720,063 $0. 政治$0 大. ‧ 國. 立. Dec '16 $677,325 $0. 學. Accounts Payable Income Taxes Payable Sales Taxes Payable Short-Term Debt Prepaid Revenue Total Current Liabilities Long-Term Debt. Nov '16 $646,433 $0. er. Total Assets. Oct '16 $645,645 $0. $0 $0 ($1,066,017) ($1,146,917) ($975,663) ($1,066,017) ($1,146,917) $730,325. $772,063.

(46) FY2017 Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-Term Assets Accumulated Depreciation Total Long-Term Assets. n. al. Total Liabilities & Equity. $903,265. $1,073,554. $1,277,512. $60,000 ($9,000) $51,000. $60,000 ($10,000) $50,000. $60,000 ($11,000) $49,000. $60,000 ($12,000) $48,000. $846,326. $953,265. $1,122,554. $1,325,512. $0 $57,462 $697,072 $0 $754,534 $1,292,043. $0 $0 $82,511 $739,163 $0 $821,674 $1,357,484. $0 $0 $116,727 $781,427 $0 $898,154 $1,422,878. $0 $0 $155,945 $823,866 $0 $979,811 $1,488,224. $2,046,577. $2,179,158. $2,321,032. $2,468,035. y. er. io. Paid-in Capital Retained Earnings Earnings Total Owner's Equity. $795,326. ‧. Nat. Total Liabilities. May '17 $1,277,512 $0. 政治大 $0. ‧ 國. 立. Apr '17 $1,073,554 $0. 學. Accounts Payable Income Taxes Payable Sales Taxes Payable Short-Term Debt Prepaid Revenue Total Current Liabilities Long-Term Debt. Mar '17 $903,265 $0. sit. Total Assets. Feb '17 $795,326 $0. i n U. v. $0 $0 $0 $0 ($1,200,251) ($1,225,893) ($1,198,478) ($1,142,523) ($1,200,251) ($1,225,893) ($1,198,478) ($1,142,523). Ch. engchi $846,326. 40. $953,265. $1,122,554. $1,325,512.

(47) Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-Term Assets Accumulated Depreciation Total Long-Term Assets. $5,073,569. $60,000 ($12,000) $48,000. $60,000 ($24,000) $36,000. $60,000 ($36,000) $24,000. $1,325,512. $3,251,529. $5,097,569. $0 $155,945 $823,866 $0 $979,811 $1,488,224. $0 $0 $503,763 $855,880 $0 $1,359,643 $2,268,625. $0 $102,218 $564,964 $571,324 $0 $1,238,506 $3,359,996. $2,468,035. $3,628,268. $4,598,502. sit. n. al. er. io. Paid-in Capital Retained Earnings Earnings Total Owner's Equity. $3,215,529. ‧. Nat. Total Liabilities. $1,277,512. 政治$0 大. ‧ 國. 立. FY2019 $5,073,569 $0. 學. Accounts Payable Income Taxes Payable Sales Taxes Payable Short-Term Debt Prepaid Revenue Total Current Liabilities Long-Term Debt. FY2018 $3,215,529 $0. y. Total Assets. FY2017 $1,277,512 $0. Total Liabilities & Equity. Ch. v ni. $0 ($1,142,523) ($1,142,523) $765,784 ($1,142,523) ($376,739). engchi U $1,325,512. 41. $3,251,529. ($376,739) $875,806 $499,067 $5,097,569.

(48) Cash Flow Statement Cash Flow Statement (With Monthly Detail) Jun '16. Jul '16. Aug '16. Sep '16. ($172,620). ($186,745). ($166,866). ($166,987). $1,000. $1,000. $1,000. $1,000. $0. $0. $0. $0. $0. $0. $0. $0. $0. ‧. ‧ 國. 立. 政治大. 學 y. Nat. io. n. al. ($185,745). ($165,866). $0 $0 ($165,987). er. ($171,620). sit. FY2017 Net Cash Flow from Operations Net Profit Depreciation and Amortization Change in Accounts Receivable Change in Inventory Change in Accounts Payable Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received Change in Long-Term Debt Change in Short-Term Debt Dividends & Distributions Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash Cash at End of Period. Ch. ($60,000). engchi. i n U. v. $766,807. $65,820. $65,773. $65,725. $366,526. $40,724. $40,892. $41,062. $1,073,333. $106,544. $106,665. $106,787. $0. $901,713. $822,512. $763,311. $901,713 $901,713. ($79,201) $822,512. ($59,201) $763,311. ($59,200) $704,111. 42.

(49) Oct '16. Nov '16. Dec '16. Jan '17. ($166,483). ($115,962). ($90,354). ($80,900). $1,000. $1,000. $1,000. $1,000. $0. $0. $0. $0. $0. $0. $0. $0. $0 治政$107 大 $8,717. $0. $0. $13,090. $15,357. $0. $0. ($76,264). ($64,543). $0. $0. ($165,376). ($106,245). $65,678. $65,631. $41,232. $41,402. Ch. er. n. al. sit. y. Nat. io. $0. ‧. ‧ 國. 立. 學. FY2017 Net Cash Flow from Operations Net Profit Depreciation and Amortization Change in Accounts Receivable Change in Inventory Change in Accounts Payable Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received Change in Long-Term Debt Change in Short-Term Debt Dividends & Distributions Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash Cash at End of Period. n U engchi. iv. $65,584. $65,536. $41,572. $41,745. $106,910. $107,033. $107,156. $107,281. $704,111. $645,645. $646,433. $677,325. ($58,466) $645,645. $788 $646,433. $30,892 $677,325. $42,738 $720,063. 43.

(50) Apr '17. May '17. ($53,334). ($25,642). $27,415. $55,955. $1,000. $1,000. $1,000. $1,000. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. 政 $20,191治 $25,049 大$0 $0. $34,216. $39,218. $0. $0. ($32,143). $407. $62,631. $96,173. $65,489 $41,917. $65,441 $42,091. $107,406. $107,532. n. Ch. $720,063 $75,263 $795,326. y. er. io. al. $65,394 $42,264. $65,346 $42,439. sit. Nat. Mar '17. ‧. ‧ 國. 立. Feb '17. 學. FY2017 Net Cash Flow from Operations Net Profit Depreciation and Amortization Change in Accounts Receivable Change in Inventory Change in Accounts Payable Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received Change in Long-Term Debt Change in Short-Term Debt Dividends & Distributions Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash Cash at End of Period. engchi. 44. i n U. $795,326 $107,939 $903,265. v. $107,658. $107,785. $903,265 $1,073,554 $170,289 $203,958 $1,073,554 $1,277,512.

(51) FY2019. ($1,142,423). $765,784. $875,806. $12,000. $12,000. $12,000. $0. $0. $0. $0. $0. $0. $0 $0 政治大 $155,945 $347,818. $102,218. $0. $0. ($974,478). $1,125,602. $61,201 $0. $1,051,225. ‧. ‧ 國. 立. FY2018. 學. ($60,000). io. n. $780,401. $823,866. $32,014. Ch. sit. y. Nat. al. $1,488,224. $1,091,371. er. Net Cash Flow from Operations Net Profit Depreciation and Amortization Change in Accounts Receivable Change in Inventory Change in Accounts Payable Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold Investments Received Change in Long-Term Debt Change in Short-Term Debt Dividends & Distributions Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash Cash at End of Period. FY2017. engchi U. v ni. ($284,556). $2,252,090. $812,415. $806,815. ($100). $1,277,512. $3,215,529. $1,277,612 $1,277,512. $1,938,017 $3,215,529. $1,858,040 $5,073,569. 45.

(52) Business Plan Canvas Business Plan Canvas. Key partners. Key activities. Value proposition.  PiApp  Facebook  Google play store  iOS app store. General:  Bill sharing  Fund lending/ borrowing  Payment  Group Travelling/ Meals  Financial supplier management  Tab tracking  Cutting out [money] middleman  Order Reservation  Optimization of payment  Tourists and tour guide matchmaking.  Convenience  Risk minimization  Optimization of cash flow (reduce middlemen)  Cost reduction  Tourists and tour guide matchmaking. 政治大. 學 ‧. ‧ 國. 立. Customer relationship  Automated services  Community creation  Co-creation. n. er. io. sit. y. Nat. al. Enterprise/ corporate:  Data mining/ analysis  Advertising  Analyze cost and margin  Promotion from businesses to users  Supply chain management. Ch. engchi. 46. i n U. v. Customer segment  Consumers  Tourists  Every member of the supply chain.

(53) Key resources. Channel.  Strong software engineer  IT backup  Dedicated Processing unit  Regular updates/ maintenance  Patent.  App store/ Play store  Website Phases: 5. Awareness: Email campaigns, Blog, book, Demo days at workshops & startup accelerator 6. Evaluation: Blogs regarding to similar app to stay competitive. Demo days at workshop & Startup Accelerator 7. Purchase/Delivery: App Store (iOS) or Play Store (Android). Normal P2P version of the app- Credit/Debit cards can be used through the e-Platform to purchase the premium version (1 time free). Enterprise version needs a monthly subscription. 8. After sales: Provide software updates and server maintenance regularly and establishing a customer service rep on the phone/online for questions.. 立. Revenue streams  Sales of language packs  Sales of enterprise version  Additional transaction for free users  Subscription for enterprise users  Promotion & Advertisement. ‧. ‧ 國. 學. Cost resource  Software development (before)  Webpage & app (after)  Maintenance (after)  Updates (after)  Translators  Digital Security  Electricity for processing unit. 政治大. n. er. io. sit. y. Nat. al. Ch. engchi. 47. i n U. v.

(54) Reference: Number of cellphone in Taiwan http://www.taiwantoday.tw/ct.asp?xItem=232903&ctNode=2183. Number of transactions a day and month http://www.bnext.com.tw/article/view/id/29226. No. of users for Pi App currently http://www.bnext.com.tw/article/view/id/37816. 立. 政治大. No. of Taipei Tenants at Night Market. ‧ 國. 學. http://www.stat.gov.tw/public/Attachment/4513919532FZJFA2L.pdf. Number of people exposed to ad a day:. ‧. http://www.maataipei.org/upload/1368779201.pdf. sit. y. Nat. io. http://admin.taiwan.net.tw/statistics/year.aspx?no=134. n. al. Taiwan Internet Speed. Ch. engchi. i n U. http://focustaiwan.tw/news/ast/201401290016.aspx. Alipay stats http://expandedramblings.com/index.php/alipay-statistics/. Splitwise Stat https://www.crunchbase.com/organization/splitwise#/entity. 48. er. Number of tourists to Taiwan by country in 2015. v.