Traveler's Leftover Currency Solution
FYPTO is a leftover currency exchange and transfer app that gives most convenient solution for real pain of leftover currency for travelers.
FYPTO is a novel FinTech idea that solves real pain point of millions of travelers. Travelers do not have the optimal solution to deal with their leftover foreign currency problem. When they travel to any foreign country, usually at the time of return they convert the remaining foreign currencies to their home country currency. But most of the time they are left with some small notes and coins of foreign currency. Traditional exchange houses at airport or in any other places have inefficiency in this case because:
So, this is what travelers normally do with their leftover currencies:
Billions of travelers face this problem every-time they go for a foreign trip. Still, there's no truly useful and convenient solution to this problem. The hassle to deal with small coins and notes at the end of foreign trip simply isn't worth the time.
FYPTO gives the most efficient solution to this leftover currency problem for travelers all around the world, especially for the frequent travelers who have collection of unused leftover currencies at their piggy-banks or drawers. FYPTO will try to give convenience to the users as well as a wider array of options for leftover currencies from deposit-convert-withdrawal of cash to transferring to different e-wallets by it's easy to use mobile App.
FYPTO gives convenience to travelers. Rather than using expensive kiosks FYPTO business model uses airport retail shops, taxi drivers, tour guides and hotel chains as agent for deposit and withdraw. This means it also gives benefit and side income to the agents.
Leftover currencies are unused. That means the currency is not circulated. FYPTO can bring this leftover money into the economic system. This is not only an usable service for the travelers rather beneficial for the macro economy.
British homes are harbouring over 1.6 billion pound of leftover holiday money. In a survey from 1100 British travelers on an average a person holded 54 British pound of of foreign coins and notes ranging from Cypriot Pounds to Thai Baht. The survey also revealed that 89% of the people hoard the leftover currencies at their home (Source: telegraph.co.uk). Travelers lose an average of $285 from unsued foreign currency after trips abroad and an additional $80 of lost loose change according to VISA Inc.
Our nearest competitor TravelersBox, who has kiosk based model, encountered 7 thousand transactions on a single kiosk in Istanbul airport. The average per person transaction was $16. But their business model significantly undermine the potentiality of leftover currency market because of inconvenience. Changi airport handled record 6.4 million travelers in 2016, whereas TBX has only 8 kiosks for more than 100 departure gates, creating inconvenience and lack of awareness.
According to IATA more than 3 billion passengers traveled by air in 2016 and even if we consider $10 of leftover currency per person it is nearly $30 to $40 billion market.
What is your proposed solution and how will you implement it? FYPTO is an all-in-one easy, convenient and app based solution , piggybank for your leftover currencies. The most significant value proposition of FYPTO is "Convenience". FYPTO will ensure convenience by using agent based model. Airport retail shops, taxi drivers, hotel desks and tour guides will act as FYPTO agents. You can get FYPTO agents at many places for depositing your leftover currencies into your FYPTO E-wallet.
After deposit your leftover currencies to nearby FYPTO agents, by FYPTO App you can easily:
Agent acquisition- convince agents and to partner with them. This supply side is the main challenge to start fypto operation.
Sales Channel partnership- partnering with sales channel, like PayPal, Other E-wallets, Transferwise, Banks etc.
Run pilot in two international airports. Then expand through Asia based on the hot tourist zones. After that expand to Europe.
FYPTO will drive it's promotional activities targeting tourist hot-spots and using travel related ingredients. As it's a real and common problem for people and work through personal mobile app, marketing and promotion through vendor channel (agents) is our primary target.
Competitors and FYPTO USP:
FYPTO has two potential competitors. TravelersBox(www.travelersbox.com)- an Israeli company and Fourex (fourex.co.uk)- a company based in London backed by Sir Richard Branson.
Lack of Convenience: The internet and smart devices has made convenience not only a differentiation but also necessity. Even by 8 kiosks in Changi airport it is extremely difficult to find a kiosk.
Capital Intensive: High cost of kiosk production, maintenance, security and airport rental.
Narrow range of Options: TBX has narrow range of options for leftover currencies in Changi airport.
Takes too long time to redeem leftover currencies. PayPal transfer usually takes two days.
Booths limited to London only.
Mechanical problems reported, like Kiosks eat up money.
Very unfavorable exchange rate. Coins exchanged at nearly 50% discount to market rate.
FYPTO gives convenience by agent based model. Deposit easily and conveniently to many agents around you- airport shops, hotel desks, tour guides, taxi drivers and others.
FYPTO provides wide array of options for the leftover currencies. You can transfer, convert, redeem or withdraw.
FYPTO has low cost of implementation and expanding global footprint. By agent based model and mobile app, FYPTO can do it at cheaper rate than what can be done by kiosks.
Traditional exchange houses can not provide value for leftover currencies. By it's agent network and App in future FYPTO will try to create own exchange market place where travelers can exchange between them at mid-market rates and withdraw cash.
FYPTO is an app rather than kiosk. From transfer to PayPal to transfer to bank accounts any feature can be cheaply and easily integrated into an app than kiosk.
FYPTO will charge 8-10% commission on all transfer from FYPTO to Paypal, E-wallets and bank accounts.
Commission on exchange with other travelers.
Commission sharing for redeem/convert leftover currency to e-credit, discount etc.
Interest income from reserve of different foreign currencies.
Cross Sale Commission: FYPTO agents will be featured on the Agent Locator" in FYPTO App. A persuasive motivation for the agents in partnering with FYPTO will be that it will attract people into their store (FYPTO Footfall). Any cross-sale that come from this increased foot-fall may lead to sales-commission in later stage of business.