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Economic Hardship

(I) Reward Program for Steering Consumers From Credit Cards to Debit Cards and Cash
(II) 1:1 Micro-Charity Program

  (I) Reward Program for Steering Consumers From Credit Cards to Debit Cards and Cash

Those who pay in Cash subsidize the convenience and risk of those who pay by credit cards, as the price paid by both is the same.  A substantial amount (estimated $ 48 billion last year in US) is lost by merchants as Interchange and fees.

Ref: www.unfaircreditcardfees.com, www.waytoohigh.com 

Our patented and patent-pending* solution is Merchant funded differential incentive based on mode of payment, e.g. an incentive or higher incentive to those who pay by Cash, Debit or ACH cards is proposed as a solution. Apart from steering consumers away from indiscriminate use of credit cards, it will benefit the merchants by lowering transactions costs. It will help those pay in Cash, many of them unbanked, save.

(*Patents issued in Singapore and New Zealand and pending in US, Canada, Australia and Japan).

The published patent application:
http://www.wipo.int/pctdb/en/wo.jsp?WO=2006018856


  (II) 1:1 Micro-Charity Program

A dollar a day is all it takes to help pull a destitute or extremely poor person above the poverty line.

Micro-lending models have proved the efficacy of small amounts. Our model targets those who need help beyond lending, vulnerable groups like extremely poor young and adult esp. girls and women, destitute etc.

One of the business models we are pursuing for the above program is where various Reward and Loyalty points etc are monetized and donated.

By one calculation, this model can help remove poverty as we know it, e.g. if a billion people from top 5 billion agrees to donate a dollar a day to the bottom billion – the dollar can be a 1% reward earned on a hundred dollar spend. (Incidentally, it is estimated that there are a billion reward/loyalty cards in the world and estimated 70% of the rewards are never redeemed!)

Click here to download detailed approach paper