Switchpoint Payments Business Plan — Key Performance Indicators
The merchant additions, volume per merchant, net take rate and churn indicators reported monthly, with targets.
Key Performance Indicators
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. The Opportunity
- 3. Market and Regulatory Context
- 4. Product, Technology and Security
- 5. Go-to-Market and Unit Economics
- 6. SWOT and Competitive Position
- 7. Financial Projections
- 8. Cash, Funding and the Balance Sheet
- 9. Sensitivity and Scenario Analysis
- 10. Risk Analysis
- 11. Regulatory, Compliance and Licensing
- 12. Organisation and Management
- 13. Implementation Roadmap
- 14. Key Performance Indicators
- 15. The Offer, Returns and Recommendation
- 16. Assumption Register
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Volume, Pricing and Unit Economic Schedules
- C. Appendix C: Funding, Cash and Balance Sheet Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
The following are the measures on which this business should be governed. Two of them — account-to-account volume per trade merchant and months of runway at current burn — are reported to the board monthly from the first month of trading, because both feed triggers with short fuses.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Account-to-account volume per trade merchant |
Monthly rail volume divided by live trade merchants |
R1 250 000 a month |
The load-bearing assumption of the entire plan. Below 70% of plan by month 18 triggers reassessment |
|
Blended net take rate |
Net revenue divided by total payment volume |
64 basis points falling to 56 |
Volume growth actively dilutes price. Any valuation anchored on volume overstates the business |
|
Card net take rate |
Merchant discount rate less cost of payments |
104 basis points falling to 93 |
25 basis points of further compression removes FY2031 EBITDA entirely |
|
Trade LTV to CAC |
36-month contribution divided by acquisition cost |
1.9x rising to 3.2x |
Below the 3.0x underwriting threshold until FY2031. The practice book subsidises it |
|
Practice LTV to CAC |
36-month contribution divided by acquisition cost |
5.3x rising to 7.8x |
The segment that funds the trade build-out. If it underperforms there is no internal source of funding |
|
Months of runway at current burn |
Closing cash divided by trailing three-month net burn |
Above 9 months at all times |
The seed funds 19 months. Month 10 is the hard trigger for the Series A |
|
Partner-originated share of new merchants |
Merchants originated by partners divided by total acquired |
Rising with the channel |
The mechanism by which trade acquisition cost falls from R46 000 to R27 500 |
|
Monthly logo churn by segment |
Merchants lost divided by opening merchants |
2.4% practice, 1.4% trade |
Half a point of churn is worth R11.4m of FY2031 EBITDA |
|
Cost to serve per merchant |
Support, risk, monitoring and hosting divided by live merchants |
R850 practice, R2 400 trade, declining 34% |
An engineering assumption rather than a contractual saving |
|
Settlement account reconciliation |
Designated account balance against the settlement liability |
Exact, daily |
Settlement funds are not company money and must never appear in available cash |
14.1 Reporting cadence and ownership
|
Measure |
Cadence |
Owner |
Source |
|---|---|---|---|
|
Account-to-account volume per trade merchant |
Monthly from first go-live |
Head of partnerships |
Rail settlement data by merchant; feeds the month 18 trigger |
|
Months of runway at current burn |
Monthly |
Chief executive to board |
Closing cash divided by trailing three-month net burn; feeds the month 10 trigger |
|
Blended net take rate |
Monthly |
Finance |
Net revenue divided by total payment volume, reported beside volume, never alone |
|
Card net take rate |
Monthly |
Finance |
Merchant discount rate less cost of payments, by scheme and transaction type |
|
Acquisition cost by segment |
Quarterly |
Head of partnerships |
Fully loaded, including partner enablement and activation support |
|
Monthly logo churn by segment |
Monthly |
Merchant operations |
Merchants lost divided by opening merchants |
|
Cost to serve per merchant |
Quarterly |
Chief technology officer |
Support, risk, monitoring and hosting divided by live merchants; tests the automation assumption |
|
Settlement account reconciliation |
Daily |
Risk and compliance |
Designated account balance against the settlement liability. Must reconcile exactly |
Two features of this table are deliberate. The attachment reading and the runway calculation are reported monthly from the first month rather than quarterly, because both feed triggers that expire — a month 18 strategic decision and a month 10 fundraising decision cannot be informed by data that arrives in month 20. And the cost to serve measure is owned by the chief technology officer rather than by finance, because the 34 per cent decline across the horizon is an engineering commitment rather than a budget line.