Switchpoint Payments Business Plan — Appendix B: Volume, Pricing and Unit Economic Schedules
Detailed volume, pricing and per-merchant unit economic schedules underpinning the net revenue build.
Appendix B: Volume, Pricing and Unit Economic Schedules
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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
- B.1 Volume by rail
- B.2 Pricing and take rates
- B.3 Net revenue by source
- B.4 Unit economics by segment
B.1 Volume by rail
|
Rbn unless stated |
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
|---|---|---|---|---|---|
|
Total payment volume |
0.50 |
3.05 |
8.70 |
18.73 |
33.90 |
|
Card volume |
0.17 |
0.98 |
2.78 |
5.99 |
10.51 |
|
Account-to-account volume |
0.34 |
2.07 |
5.92 |
12.74 |
23.39 |
|
Card share of volume |
33% |
32% |
32% |
32% |
31% |
|
Account-to-account share of volume |
67% |
68% |
68% |
68% |
69% |
B.2 Pricing and take rates
|
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
|
|---|---|---|---|---|---|
|
Card merchant discount rate |
2.45% |
2.40% |
2.35% |
2.30% |
2.26% |
|
Card cost of payments |
1.41% |
1.39% |
1.37% |
1.35% |
1.33% |
|
Card net take rate, basis points |
104 |
101 |
98 |
95 |
93 |
|
Account-to-account rate |
0.80% capped at R25 |
0.80% capped at R25 |
0.80% capped at R25 |
0.80% capped at R25 |
0.80% capped at R25 |
|
Account-to-account cost per transaction |
R2.40 |
R2.30 |
R2.15 |
R2.05 |
R1.95 |
|
Account-to-account net take rate, basis points |
30 |
30 |
30 |
30 |
30 |
|
Blended net take rate, basis points |
64 |
60 |
59 |
58 |
56 |
|
The rand cap |
Value |
Note |
|---|---|---|
|
Account-to-account rate |
0.80% of value |
Capped at R25 a transaction |
|
Ticket above which the cap binds |
R3 125 |
Essentially all trade-counter volume |
|
Average trade ticket |
R7 600 |
At which the R25 fee is 32.9 basis points gross |
|
Rail per-transaction ceiling |
R50 000 |
Raised from R3 000 in August 2024. Caps the addressable share of large orders |
|
Fee on a R48 000 invoice |
R25 |
5.2 basis points, against R1 176 on card |
B.3 Net revenue by source
|
R million |
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
|---|---|---|---|---|---|
|
Card acquiring, net of cost of payments |
1.7 |
10.2 |
28.1 |
57.4 |
98.5 |
|
Account-to-account, net of cost of payments |
1.1 |
6.4 |
18.5 |
40.3 |
73.6 |
|
Terminal rental and sales |
0.2 |
0.9 |
2.2 |
4.2 |
6.9 |
|
Payouts and reconciliation subscription |
0.2 |
0.9 |
2.8 |
6.2 |
11.2 |
|
Net revenue |
3.2 |
18.4 |
51.6 |
108.1 |
190.2 |
|
Payment-rail net revenue |
2.8 |
16.6 |
46.6 |
97.7 |
172.1 |
|
Card share of payment-rail net revenue |
61% |
61% |
60% |
59% |
57% |
|
Account-to-account share of payment-rail net revenue |
39% |
39% |
40% |
41% |
43% |
|
Card share of total net revenue |
53% |
55% |
54% |
53% |
52% |
|
Account-to-account share of total net revenue |
34% |
35% |
36% |
37% |
39% |
B.4 Unit economics by segment
|
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
|
|---|---|---|---|---|---|
|
Practice acquisition cost |
R11 800 |
R10 800 |
R9 700 |
R8 900 |
R8 100 |
|
Practice lifetime value over 36 months |
R62 909 |
R62 909 |
R62 909 |
R62 909 |
R62 909 |
|
Practice lifetime value to acquisition cost |
5.3x |
5.8x |
6.5x |
7.1x |
7.8x |
|
Trade acquisition cost |
R46 000 |
R41 000 |
R35 500 |
R31 000 |
R27 500 |
|
Trade lifetime value over 36 months |
R87 400 |
R87 400 |
R87 400 |
R87 400 |
R87 400 |
|
Trade lifetime value to acquisition cost |
1.9x |
2.1x |
2.5x |
2.8x |
3.2x |
|
Segment assumption |
Practice |
Trade |
|---|---|---|
|
Contribution a merchant a month |
R2 590 |
R3 074 |
|
Payback |
4.6 months |
15.0 months |
|
Monthly logo churn |
2.4% |
1.4% |
|
Lifetime value cap |
36 months |
36 months |
|
Card volume a month |
R340 000 |
R185 000 |
|
Account-to-account volume a month |
— |
R1 250 000 |
|
Cost to serve a month, FY2027 |
R850 |
R2 400 |