Bluechain is a patented payments platform that works like a cash transaction, only it is more secure, efficient and creates an immutable transaction. Emerging markets are the natural early adopters. Central banks and national payment switches may regain control of their domestic payments by offering a complete range of domestic and international payment services to local banks, large billers, B2B networks and payment gateways.

In mature markets, Bluechain provides merchants with a trusted, no chargeback, lower cost payment system that is a better fit to their business than current traditional card and mobile payment solutions.

Bluechain payments are based on a Request for Payment, initiated by the seller.  This paradigm shift offers many advantages including using digital certificates to uniquely identify the merchant and the customer’s device that approved the payment. Electronic payments can be transacted securely using any internet connected device of the payer’s choosing. This includes mobile phones or tablet devices where card and account details need not be transmitted.

Uniquely positioned to replace outdated and expensive payment systems (cash, cards and POS terminals) and drive central bank reforms. Bluechain is compelling for merchants that suffer from fraud, high cost of card payments and complex solutions.

Company Situation/Objectives

The Bluechain Request for Payment overlay service is connected to the national switches in Vietnam and Kenya. Bluechain will be connected in additional countries in 2019, including Australia, South Africa and Malaysia.

Bluechain has a contract with Mastercard to provide integration services and process cross-border remittances and non-Bluechain settlement. Extending relationships to include card issuance and merchant acquiring.

Expanding ‘closed loop’ B2B networks with merchants, providing a bank account to bank account epayment system that works like a card scheme but without costs of card-not-present and the chargebacks.

Bluechain has a contract with Mastercard to provide integration services and process cross-border remittances and non-Bluechain settlement. Extending relationships to include card issuance and merchant acquiring.

Expanding ‘closed loop’ B2B networks with merchants, providing a bank account to bank account epayment system that works like a card scheme but without costs of card-not-present and the chargebacks.

Highlights

  • Customer need – Governments and central banks lack confidence in local mobile payments systems. Bank switches and banks risk losing market share to disruptors and international payment schemes. Merchants and consumers currently wear the high cost of fraud-prone and outdated payment systems.
  • Products & services – The Bluechain network is a new international payment scheme connecting banks and merchants through the domestic bank switch, Mastercard and other international payment gateways. The Bluechain app experience is unparalleled, compared to clumsy push and QR code-based solutions.
  • Target market – Bluechain selects countries using factors including: smart phone penetration, data network coverage, regulator strength, financially inclusive agendas and type of bank switch. Initial targets include Australia, Kenya, Ghana, Vietnam, Egypt, South Arica, Thailand and Malaysia.
  • Customers – Customers are national switches, local banks, payment gateways, B2B networks and billers.
  • Sales & marketing – Bluechain is installed on the national switch and white-labelled by the switch. In emerging markets, user adoption and transactional revenue is driven by member banks.  In mature markets, Bluechain is partnering with B2B buying groups for its virtual card to card transaction scheme.

Financial Highlights

Initial revenues following first country agreements in 2018 and rapidly expanding in 2019, comprising license fees from the national switches and transactional fees.

Location

London, Melbourne

Sale / Investment

Capital Raising AUD$20m

Indicative Valuation

Pre-money valuation AUS$38.7m. Previously raised AUD$12.0m