Executive Summary

We propose a cutting-edge AI-powered Point of Sale (POS) system for the Matatu industry in
Kenya, designed to streamline fare collection and enhance the passenger experience. This
system, named ma3Pay, will feature POS devices at the front of every seat, enabling seamless
payments through M-Pesa and other mobile payment platforms. This business plan outlines
our market potential, product strategy, financial projections, and funding requirements.

1. Company Overview

Company Name: ma3Pay

Founded: 2024
Industry: Transportation Technology
Mission: To revolutionize the Matatu industry in Kenya by providing secure, efficient, and
convenient payment solutions.
Vision: To be the leading provider of advanced payment solutions in the public
transportation sector across Africa.

2. Market Analysis

Target Market: Matatu industry in Kenya

Number of Matatus: Approximately 100,000
Daily Passengers: 20 million
Market Needs:
Secure Payment Processing: Reducing the risk of theft and fraud associated with cash
handling.
Efficient Transactions: Speeding up the boarding process and reducing delays.
Enhanced Passenger Experience: Providing convenience and added services such as
real-time seat booking.
Competitors:
Existing mobile payment solutions like direct M-Pesa transactions.
Traditional cash fare systems currently used by Matatu operators.

3. Product and Services

Product: AI-powered POS system for each Matatu seat.

Features:
Seamless Integration: The system integrates with M-Pesa and other mobile payment
platforms, allowing passengers to pay fares digitally.
AI-Powered Verification: Real-time transaction verification using AI ensures secure and
efficient payment processing.
User-Friendly Interface: A passenger-friendly interface with multiple language
support, making it accessible to a diverse user base.
Real-Time Booking: Passengers can check seat availability and book in real-time.
Advertising Options: The screens can display targeted ads, generating additional
revenue for operators.
 Premium Services: Options for premium services, such as priority seating, for an extra
fee.
Revenue Model:
Subscription Fee: $10 per Matatu per month
Transaction Fee: $0.005 per transaction
Advertising Revenue: $3 per screen per month
Premium Services: $0.50 per feature per month for 20% of users

4. Marketing and Sales Strategy

Marketing Channels:
Direct Sales: Targeting Matatu SACCOs (Savings and Credit Cooperative Organizations)
and individual operators through direct sales efforts.
Partnerships: Collaborating with government transportation authorities to promote
adoption.
Digital Marketing: Utilizing social media and digital marketing campaigns to raise
awareness and attract users.
Sales Strategy:
Free Trials: Offering free trials and demonstrations to Matatu operators to showcase
the benefits of the system.
Discounted Rates: Providing discounted initial subscription rates to encourage early
adoption.
Local Partnerships: Forming strategic partnerships with local businesses for in-app
advertising and promotions.

5. Operations Plan

Hardware Sourcing: POS devices will be sourced from reliable manufacturers in China at
an estimated cost of $80 per unit. We have identified several potential suppliers and are
negotiating terms to ensure quality and affordability.
Installation:
Installation teams will be trained to mount the devices on Matatu seats and set up the
systems efficiently.
A phased approach will be used for installation, starting with key routes and
expanding based on demand and feedback.
Maintenance:
Regular software updates will be provided to keep the system secure and up-to-date.
A dedicated customer support team will handle troubleshooting and maintenance
issues to ensure continuous operation.

6. Financial Projections

Initial Investment:
Hardware and Installation Costs: For 1,000 Matatus, the cost will be $80 per unit.
Total Initial Investment: 1,000 units * $80 = $80,000
Revenue Projections (First Year):
Subscription Revenue: 1,000 Matatus * $10 * 12 months = $120,000
 Transaction Revenue: 2 million transactions/day * 365 days/year * $0.005 =
$3,650,000
Advertising Revenue: 1,000 screens * $3 * 12 months = $36,000
Premium Services Revenue: 1,000 Matatus * 20% * $0.50 * 12 months = $1,200
Total Revenue: $120,000 + $3,650,000 + $36,000 + $1,200 = $3,807,200
Expenses (First Year):
Installation and Setup: $80,000
Operational Costs: $150,000
Marketing and Sales: $50,000
Total Expenses: $280,000
Net Profit:
First Year Net Profit: $3,807,200 - $280,000 = $3,527,200

7. Funding Requirements

Total Funding Required: $100,000

Use of Funds:
Hardware Procurement and Installation: $80,000
Initial Operational Costs: $20,000