Fintech is one of the hottest business sectors on the planet and is seeing massive growth with investment dollars pouring in. Companies like Revolut, Chime, N26, and many others have benefited from skyrocketing valuations and billions of dollars in venture capital.
Our competitors are using all that investment capital to build complicated applications and fund an inefficient, brute-force customer acquisition strategy. While they battle each other over the same customers and value proposition, we are differentiating by growing a movement of passionate people and offering them products like our debit card to get them in alignment with their values.
We do this by partnering with organizations who already have passionate supporters, which will enable us to attract thousands and tens of thousands of customers at a time. This strategy has allowed us to minimize the amount of investment dollars needed to get to market and the amount of capital we’ll need to raise to scale.
Why is this important? In the financial industry, the life-time value (LTV) of a customer can be in excess of $1000 per supporter. When you add this all up, the numbers are staggering - a mere 10,000 customers can be valued at $10,000,000. This is significant because we are positioned to attract millions of loyal customers.
Our initial product offering enables people to support causes they care about, without needing to give more, through three primary channels:
1. Retail debit cards
2. Corporate debit cards
3. Cardless programs, like rewards
On the retail side, our strategy is to distribute custom branded debit cards, for the benefit of important causes, in partnership with nonprofits. This partnership allows us to onboard customers efficiently and grow rapidly. The transaction processing fees that are paid by merchants are what fund the nonprofits - at no cost to the individual cardholders. We receive a portion of the fee. In addition to the transaction fees, we built RoundUp and DirectDonate features that increase donations and save nonprofits money on their own merchant account. We collect a fee on the funds received. Transaction fees typically range from 1.15 - 1.75% of every purchase - a fee that is paid by the business accepting the payment, not the cardholder.
Our corporate card programs are being developed currently with three customer types in mind:
Nonprofits with high volume of expenses and transactions handled via credit or debit cards
Nonprofits that are not good candidates for, or are not yet ready, to engage in a retail card program
For-profit companies that are mission-driven to support important causes
These corporate programs benefit GroundSwell with increased transaction fee revenue - typically 2.15 - 2.65% of every transaction. In addition to the higher payout amount, the transactions of a single company can exceed many individual cardholders.
Lastly, we are developing a few cardless programs that allow us to engage users who aren't ready to use a new debit card but want to participate to support their cause. We will share a portion of the revenue from these cardless programs.
WHY OUR BANKING PARTNERS ARE ON BOARD
We’ve partnered with banks who are willing to participate in an arrangement like this, because they get the benefit of new deposits. This new deposit base allows them to issue loans, thereby giving them additional loan fees and interest, plus they earn interest on the deposits themselves.