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Table of contents
1. Problem identification
2. Background of the Idea
3. How the product works
4. SWOT analysis of the project
5. Proposed business structure and requirements for the product

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 Problem
identification
G
rowing up, I did my secondary education at a mission school in Zimbabwe and one of
the problems I faced was accessing pocket money from my parents back at home in-
between visiting weekends. Cash shortages hit the country in 2017 when I was in
upper six and inflationary tendencies were building at the same time. Most parents had
difficulty accessing cash for pocket money as banks were running dry on liquid money for
account holders because the demand for cash was increasing, being fueled by inflation and
thereby increasing the cost of almost every good. My parents left me a savings account debit
card as part of my pocket money, which I could then use to buy anything I required. They
promised regular deposits in the account. The solution was actually a problem itself because
my school did not have a POS machine, meaning that I could only purchase with this card
when I left the school on trips which could be difficult to come by sometimes.
In recent times, the cash situation is worser as well as the inflation, many students are in the
same shoes I was in or slightly worse. Where is technology to come up with a solution?

S econdly, it is general knowledge that technology has been at the center of giving new
solutions and innovative ways of bringing convenience to our lives pre-COVID 19 and
critically post-COVID 19 lockdown regulations restricting us from the usual ways of life
which promote physical contact. Moreover, Zimbabwe has been facing cash shortages the
past 3 years in a hyper inflationary environment of more than 500% year on year. The
education sector has not been spared of these problems and our particular focus is on the
students.3 years ago I would give my brother a $2 bond note and he could buy a burger and
two drinks or just by a burger and save the other dollar for another day. Shockingly today I
would have to give him $150 or more for him to enjoy the same meal. Is this really ideal for a
grade 4 student? How can you withdraw that amount of cash on a regular basis withstanding
long bank queues at banks with daily and weekly limits less than $1000? Only a crazy person
can see this as feasible. Moreover, there is a high chance he will misplace the money as well.
Another person will suggest “Just give him a debit card”, but again the question of does the
school tuck shop have a POS machine? Is he eligible to open a bank account? Will he not lose
the card? Again, we look up to technology innovations to solve these problems and luckily, we
might have found a long-waited solution.

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 B ackground of
the Idea

It was back in 2019, when the first thoughts of this product emerged. As a group of friends and young
technology enthusiasts, we always discussing and look for innovative ways to use modern technologies to bring
solutions to everyday problems in our society like we usually do.
Then this is when it struck our minds that RFID (Radio Frequency Identification) and NFC (Near Field
Communication) can be used as easy payment systems in schools. The technology is applicable anywhere you go
where there is a modern smartphone easily making it one of the most accessible technologies. Both RFID and
NFC technologies have been underutilised in Zimbabwe with only few industries using this technology
We realised NFC and RFID can give birth to a smart transaction system which is unique from the already
available payment systems and this perfectly fits within the primary and secondary school environments.
How exactly? Well, a student has a watch or wristband with an RFID chip inserted inside. The wristband/watch
has the account details of the student and transacts with the phone(receiver) in this instance it acts as a POS
machine. The smartphone(receiver) will be the linked with the school’s tuck-shop account and the transaction
will be done between the two interfaces. Therefor, the student has used the wristband/watch to purchase
something form the school tuck-shop without using a phone, debit card or cash.

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H
What is NFC?
ow the
product
works?

Near field communication, abbreviated NFC, is a form of contactless communication between devices like
smartphones or tablets. Contactless communication allows a user to wave the smartphone over an NFC
compatible device to send information without needing to touch the devices together or go through multiple
steps setting up a connection. Fast and convenient, NFC technology is popular in parts of Europe, Asia and the
United States. NFC is a form of Radio Frequency Identification (RFID).

The technology behind NFC allows a device, known as a reader, interrogator, or active device, to create a radio
frequency current that communicates with another NFC compatible device or a small NFC tag holding the
information the reader wants. Passive devices, such as the NFC tag in smart posters, store information and
communicate with the reader but do not actively read other devices.
NFC also allows peer-to-peer communication through two active devices. This allows both devices to send and
receive information. Both businesses and individuals benefit from near field communication technology.

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Faster transaction times mean less waiting in line and happier customers. Fewer physical cards to carry around
means the customer is less likely to lose one or have it stolen.
Who's currently in on the action with NFC technology and mobile payments? Google has launched Google
Wallet that supports MasterCard PayPass, PayPal offers money transfers between smartphones, and other
companies are using this technology in transactions and other uses.

Parent Deposit

Student enjoys Student AT school

purchased product

Transaction Receives Money

(Wrist tag)

Tuck shop
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SWOT analysis
of the product

Great introduction to banking for kids.

Low capital investment needed for project.

The product meets and suits primary and secondary educational systems and
requirements.

Low cost maintenance of system.

The product is easy and convenient to use.

The product is a non-physical contact system.

Low cost promotional methods can effectively be used.

The wrist tag is a unique selling point that is attractive to school children.

Parents/Guardians can monitor child spending habits.

Lesser control over suppliers of NFC components

Difficult to implement security features without contact.

There is no revenue generation when schools are on holidays.

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Huge market size available.

Opportunity to have a huge market share in this niche market.

Covid-19 social distancing practices promote non-contact payment methods.

Parents have the ability to monitor child spending patterns.

Diaspora parents and guardians can send pocket money directly to child without
using intermediaries (relatives). Therefore, the product can generate forex
revenue.

The system can be modified to make it more efficient. The wrist tags can be used
at any tuck shop with a reader for the tags. Therefore, it can be applicable on an
inter school basis.

The system can also be integrated with the school payment system and accounts.
This, would allow school children to pay civics fees, buy uniforms and pay fines
using the wrist tags.

The tags configured to transact both in local currency and other currencies as
well.

Impact of covid-19 on opening of schools.

Failure to accesses critical components NFC tags.

New alternative payment methods.

Government financial regulations and inconsistent financial policies.

Resistance of the product by some other schools.

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proposed business
structure and
requirements for the
product

The key components for the system are the NFC wristbands, an NFC compatible smartphone or an RFID/NFC
reader and a mobile application which facilitates transactions as well as account records.

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Wrist tags
We have more than 3 trusted suppliers of NFC tags from China and USA who can make specific orders as well as
customize tags to suite the customers specifications. It takes between 3-4 weeks for the tags to reach Harare
using DHL/Fed Ex.

NFC smartphone/RFID readers

Most smartphones from common established brands (smartphone manufactures) are NFC compatible.
Alternatively, RFID/NFC readers can be used communicate with the tags.

Mobile Application
An android/IOS/windows application will have the information the phone needs to share with the tag and
facilitate the transaction.

The product needs a penetration pricing strategy to gain market share in this market segment. This would mean
that the tags have to be affordable as well as low transaction costs. The transaction costs can always be revised
upwards when the product gains higher market share and huge flows of transactions.
The tags can be sold at $2 USD a piece for person and a profit is already realised from the sale because the net
purchase price is about $1 USD. The student accounts will not have any monthly or annual charges because it’s a
form of a savings account and also high charges will influence students to use cheaper alternative forms of
payments.
Therefore, the suitable costing system will be reasonable transaction costs of 2% of the total amount
transacted. This means that revenue earned per $100 is $2. Although it seems like this margin is small, it’s huge
when you base it in volumes. If 10 000 students make $50 purchases a day it adds up to $500 000 and $10 000 is
the total revenue for that day and it’s good enough for a low maintenance system.
In the event that the product is successfully rolled out throughout Zimbabwe, there will be millions of
transaction flows weekly. Revenue generated will be in millions on a monthly basis.
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The focal point for the product is the school and registering them to adopt the system I critical. The schools
would need to have an RFID reader or a FRID compatible smartphone. The schools using phones would need to
download and install the application to communicate with the tags and facilitate transaction. Registration of
accounts by students can be done at schools as well as online with the tags been received at school.

The promotional methods and strategy to be used will be determined by the financial resources available.
Basing on a low budget promotional campaign, advertising methods involve direct advertisement at the schools
since the target market is at a centeralised place making it easier and effective for communication. Students can
then register accounts at school.
Moreover, Social media is another cheap advertising platform this includes advertising on Facebook, Instagram
or twitter pages. Sponsored Ads on YouTube, Instagram and Facebook on can also be used for raising awareness
and students can also register accounts online.
With more financial resources, radio and tv advertisement reaches a wider audience although these methods do
not directly reach the targeted market. However, the latter and newspaper advertising promote word of mouth
for the product and this can influence to more schools adapting the product when it is at the launch and growth
phase of its life.
School promotions can also be done to attract participation from schools to using the production. This might
include prices for schools with a high volume of transacting students. This is just an example of several
promotions of this nature which can be implemented.
A combination of 2 or 3 advertising results will be the most effective way of reaching the intended audience.

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There is low capital investment in this project. The major direct expenses are purchasing the tags and readers (in
cases where a school does not want to use a smartphone as a reader). A thousand tags cost about a dollar USD
each including shipping costs and these can be customised.
The other major cash outflows will be promoting the product and variable operational expenses. A less costly
promotional campaign would involve direct advertisement at the schools since the target market is at a
centeralised place. Social media is another cheap advertising platform this includes advertising on Facebook,
Instagram or twitter pages. Sponsored Ads on YouTube, Instagram and Facebook on can also be used.
The operating costs will include internet and cloud services costs for the account records and transactions.
There will also be web hosting costs from renting servers for online operations of customers such as
registration, inquiries, balance requests, queries and transactions.

The product for this system requires very little human capital. IT personnel will be needed to monitor the
system from bugs or any malfunctioning. Furthermore, the latter is also responsible for designing the mobile
application and ensuring the tags are functional and readable.
In addition, sales personnel are also required for selling and distributing the tags. They also register students to
opening accounts linked to the tags.

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 Why chose NMB as partner?

NMB Digital Banking Drive

Our product suites well with NMB digital banking drive for transaction methods that promote non-contact
payments and digitalisation.

The details were revealed by the NMB company secretary, Shumirai Pashapa during a trading update
presentation recently.

“The bank had embarked on a digitalisation drive to improve the customer experience, enhancement of service
delivery and broadening the customer digital touch points. “This strategy has proven to be quite pivotal in the
current operating environment. In this time of unprecedented economic and business uncertainty, NMB has
firmly focused its attention on protecting our business by suspension of all capital expenditure and limiting it to
expenditures that promote the new operating order under digitalised systems,” she said.

She went on to mention that the firm has accelerated the digital transformation drive after having commenced
such work prior to the Covid-19 pandemic.

Moreover, NMB has been innovative and engaged with NFC with the award-winning Tap card product and the
bank would be willing to exploit more of the technology in different markets.

Financial and Marketing Resources

NMB has the financial resources to purchase RFID components required for the product such as tags and readers.
NMB also has the resources for advertising the product and a

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Revenue
This product will bring another source of revenue to the bank and increase the profits for the shareholders.

Clientele in a unique segment

This product will enable the bank to tap into the untapped primary and secondary education sector. This will
enable the bank to dominate in this market. Zimbabwe has more than 500 000 primary and secondary school
students in urban areas.

Attracting new customers (Account holders)

NMB would be able to attain new account holders with existing accounts for the wrist tag accounts at high school
when they leave secondary schools for tertiary education

Goodwill
This innovative product will make NMB grab the headlines again for leading in digitalisation and technological
payment innovation systems, following the success of the tap card.

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