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ELAY Initiation Briefing Jul 2010

ELAY Initiation Briefing Jul 2010

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10/25/2012

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Please see important disclosures, including analyst certification
 www.joenoelstocks.com
 
 
Emerging Growth Research, LLC
 
Investment Highlights
eLayaway, Inc. (ELAY)
 
·
 
eLayaway, Inc. is the leading, sole provider of a new,revolutionary electronic layaway payment system that is based on the Company’s patent pending technology.
 
·
 
The eLayaway® solution faces a very large marketopportunity, with the potential to capitalize on a verymeaningful part of nearly all electronic and Brick & Mortar transactions.
 
·
 
The Census Bureau estimates eCommerce retail sales wereabout $136 billion in 2007, with the much larger “Brick &Mortar” retail segment representing a very significant $3.9trillion.
 
·
 
Within these markets, and at this stage in its growthtrajectory, the Company estimates its actual addressableonline eCommerce market size is in excess of $1.2 billion,with an addressable Brick & Mortar segment conservativelyestimated at more than $58 billion.
 
·
 
We believe eLayaway® has the potential to tap the same vasteCommerce market place and be as widely recognized andrespected as PayPal™ for all budget conscious consumers.
·
 
Experts predict 30% of Americans will turn to onlinealternative payment options instead of using a credit card by2012.
 
·
 
The current economic environment and credit crisis, coupledwith the ubiquitous presence of the Internet in the world of commerce, has created the “right time” for eLayaway
®
.
 
·
 
There are currently only about 17.7 million common shares of eLayaway
®
issued and outstanding.
Company Report: eLayaway, Inc.
ELAY.OB Rating: BUYJoseph Noel joe@joenoelstocks.comEmerging Growth Research,LLCSan Francisco, California925-922-2560Analyst CertificationI, Joseph Noel, herebycertify (1) that the viewsexpressed in this researchCompany report accuratelyreflect my personal viewsabout any or all of thesubject securities or issuesreflected in this Companyreport, and (2) no part of mycompensation was, is, or will be directly or indirectlyrelated to specificrecommendations or viewsexpressed in this Companyreport.
 
ELAYAWAY RESEARCH BRIEFING JULY 2010
 
 
ELAYAWAY RESEARCH BRIEFING
 
Emerging Growth Research, LLC
2
 
EXECUTIVE SUMMARYThe Company
 eLayaway, Inc. (“eLayaway,” “ELAY” or the“Company”) is the sole provider of a new,revolutionary, patent pending online paymentsystem that allows consumers to pay for productsand services using an automated and affordable periodic payment system based on the traditionalconcept of layaway, while empowering merchantsto grow their customer base and sales. As theleading provider of electronic/Internet-basedlayaway payment processing technology, theeLayaway
®
payment system was conceived to provide additional payment options to consumersand merchants alike, thereby increasing sales for merchants and providing consumers with accessto items that may not be immediately affordable based on budget constraints.At present, eLayaway
®
has approximately 700merchants in its retailer network and over 90,000individual registered users, figures we expect willincrease significantly over the near term as theCompany’s brand and reputation continue to growand penetrate new markets. The Companycurrently sells its system for use as an onlinescheduled payment option, mainly for use bymerchants within the checkout section of their corporate websites. Importantly, eLayaway
®
isalso getting ready to launch a “Brick & Mortar”version of its automated payment system that can be used by merchants in actual physical storelocations, malls, kiosks and even within acustomer’s home during sales calls in order toinitiate the eLayaway® payment system.eLayaway
®
is now in pilot testing within theBrick & Mortar industry and we anticipateentrance into this market this summer will greatlyincrease the Company’s growth trajectory.
ELAYAWAY (ELAY)
SUMMARY
Headquartered in Tallahassee, FL, eLayaway, Inc. is thesole provider of a new proprietary online payment systemthat allows consumers to prepay for items using amonthly payment schedule that best fits their needs and budget. eLayaway® is a modern, digital age version of the former “tried and true” layaway business concept inwhich consumer-directed partial payments are made over time for goods and services that are then released to the buyer once all payments are complete.The eLayaway® payment system enables consumers toactually “pull the trigger” and say “yes” to buying, whilegiving merchants access to millions of credit-consciousshoppers who were either previously unreachable or looking for alternatives to traditional credit cards.The Company’s payment solution addresses the multi- billion dollar online eCommerce market and, soon,eLayaway will introduce the “Brick & Mortar” versionof its eLayaway
®
technology for the much larger in-storeretail market.
 
ELAYAWAY RESEARCH BRIEFING
 
ELAYAWAY RESEARCH BRIEFING
 
Emerging Growth Research, LLC
3
 
Introduction
 eLayaway
®
is a revolutionary re-introduction of atime-tested concept, namely the notion of  periodic layaway installment payments for a particular item desired by a customer. The ideaof purchase by layaway is not new. The conceptof layaway, or purchasing an item without payingthe entire cost at once, is a time-proven concept born of the Great Depression of the 1930s. Theway layaway works is rather than paying the full price at purchase to receive an item, or taking theitem home and then repaying the debt incurred to purchase the article, as is done in mostinstallment plans, the layaway customer does notreceive the item until it is completely paid for through a series of scheduled prepayments.Today, while the payments industry exists and isused by some merchants in-house to executeonline and in-person “Brick & Mortar” sales, theidea of an outsourced automated, online layawayservice is new. While quite a few merchants areaware of and know what layaway is, only noware they starting to see the value of this processagain, as eLayaway
®
has automated andsimplified the traditional notion of layaway to fittoday’s world of ecommerce.Specifically, eLayaway
®
’s automated paymentsystem has done away with some of the mostinconvenient aspects of the traditional layaway programs of the past, such as requiring thecustomer return to the store periodically in order to make the required installment payments and,for merchants, having to set aside and store anitem until its been fully paid for, thereby takingup limited and expensive retail storage space. Infact, while the traditional concept of layaway wasonce quite popular among retailers and customersalike, many of America’s largest retailers havesimply chosen to end their traditional layaway programs due to storage costs and the manualcomplexities involved in managing the system.
Dominance of Electronic Payment Systems inToday’s World of Commerce 
In certain regards, we believe eLayaway
®
may beliked to the very popular and widely knownPayPal™ technology as a comprehensivesolution for centralized payment processing, butwith an important difference. While mostconsumers and merchants alike are familiar withPayPal™ for processing full payment for goodsand services upfront, eLayaway
®
facilitates partial payments made over a selected period of time. Based on the very large market opportunitythe eLayaway
®
solution faces, with the potentialto be part of a very meaningful percentage of nearly all electronic and Brick & Mortar transactions, we believe eLayaway
®
has the potential to be as widely recognized andrespected as PayPal™.Regarding the importance of online payment processing in today’s world of commerce,dominated in many instances by the Internet, theindustry’s leading payment processing companiesaccounted for more than 73% of all transactionsin 2007. Furthermore, the online alternative payment industry in particular is growing by anaverage of 60% per year. In fact, PayPal™, the premier upfront payment source, became a powerful alternative to eBay
®
’s Billpoint(acquired by eBay
®
in 2002 for $43.5 million)resulting in eBay
®
also buying the superior PayPal™ solution for $1.5 billion in 2002. We believe eLayaway
®
has the potential to tap thesame vast eCommerce marketplace and be equalin brand name recognition and size to PayPal™for all budget conscious consumers.
Economic Trends
The current economic environment, coupled withthe ubiquitous presence of the Internet in theworld of commerce, has created the “right time”for eLayaway
®
.At this time, many credit card issuers aredramatically increasing their credit and lendingstandards as well as upping fees, thereby limiting

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