Jaja - Mobile Credit Card

Money, investing, mutuals etc
Constantine
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Re: Jaja - Mobile Credit Card

Post by Constantine » Wed Nov 28, 2018 8:13 pm

AAAlphaThunder wrote:
Wed Nov 28, 2018 8:43 am
pabenny wrote:
Wed Nov 28, 2018 5:47 am
The point about this product is that it's nothing new. If it wasn't for the referral payment, nobody would bother with it. For all the hype about fintech, this is just another me-too credit card - only they're using crowdfunding and word of mouth to attract customers.
Exactly, it offer nothing another other card doesn't.
That's the issue with many of these fintechs; the wheel is being reinvented. The only difference is that this wheel can be operated by a smartphone app whilst drinking a mocha latte in Starbucks. Maybe that's what millenials want. But if you're talking about just paying for stuff. there's just a huge amount of competition just in terms of apps. And some of 'em have big real money behind 'em.

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Re: Jaja - Mobile Credit Card

Post by axelandpixel » Thu Nov 29, 2018 11:18 pm

I don't think that nobody wouldn't have bothered if it's not for the referral payment. Things are changing and even traditional banks are workings on their apps to keep up. I agree that maybe this is what millenials want - fast, easy, convenience, more control-- because I'm close to being a millenial than an oldie. :lol:

If anybody here is also still paying £10+ for every trade, I'm invested in one where it's zero-fee as long as you place basic orders - executed at the end of the day, otherwise, you pay £1 for every instant trade. Way much better compared to the old brokers where you pay so much for each deal. I like fintechs, it's changing future. :)
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Constantine
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Re: Jaja - Mobile Credit Card

Post by Constantine » Fri Nov 30, 2018 4:40 pm

axelandpixel wrote:
Thu Nov 29, 2018 11:18 pm

If anybody here is also still paying £10+ for every trade, I'm invested in one where it's zero-fee as long as you place basic orders - executed at the end of the day, otherwise, you pay £1 for every instant trade. Way much better compared to the old brokers where you pay so much for each deal. I like fintechs, it's changing future. :)
I don't understand. It's a credit card. What sort of trades is it offering?

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Re: Jaja - Mobile Credit Card

Post by axelandpixel » Fri Nov 30, 2018 6:47 pm

Sorry for the confusion. It was a segue. I was talking about another startup that I've also invested in just to say that I like fintech because of innovation.
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Re: Jaja - Mobile Credit Card

Post by pabenny » Sat Dec 01, 2018 12:30 pm

On investing in fintech, are there any that are actually profitable - or even have a clear route to profitability?

I think the days of 'build it and they'll come', or scale first and then work out how to generate a return are over. Financial services is difficult to enter because of the regulatory obligations and difficult to attract business because of customer inertia.

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Re: Jaja - Mobile Credit Card

Post by Constantine » Sat Dec 01, 2018 3:36 pm

pabenny wrote:
Sat Dec 01, 2018 12:30 pm
On investing in fintech, are there any that are actually profitable - or even have a clear route to profitability?...
Not that I'm aware of. I had a quick look. Atom Bank lost £53m and Monzo Bank lost £37m as per their 2018 accounts.
pabenny wrote:
Sat Dec 01, 2018 12:30 pm
I think the days of 'build it and they'll come', or scale first and then work out how to generate a return are over. Financial services is difficult to enter because of the regulatory obligations and difficult to attract business because of customer inertia.
Atom Bank (for example) seems to have a business model that works on the basis that they have lending products and then raise customer deposits to fund the lending. If they can grow the balance sheet they might start making money. Monzo have some current accounts, and offer overdrafts, but fuck all in the way of income. They do claim that it now costs them just £10 a year to run a current account, but apart from overdrafts, offer little indication as to what will generate income. You can, of course, make money just doing credit cards. That's what MBNA do.

God knows if any of these fintechs will amount to anything. But the thing is, one there are some big 'traditional' banks, two there are a lot of 'challenger' banks (Virgin, Aldermore, Secure Trust, Metro .....), three there's a whole pile of fintechs. As in, there's a lot of competition.

My best guess would be that most fintechs will fail and sell off their customer base. Some of them will succeed and make money. Unfortunately, I don't know how to tell the difference. :)

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Re: Jaja - Mobile Credit Card

Post by pabenny » Sat Dec 01, 2018 5:39 pm

I could believe that some have a business model which amounts to make a noise, attract enough custom to appear a credible challenger so that someone will buy out the owners at a fat price in order to get their hands on their technology and to eliminate the nuisance.

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Re: Jaja - Mobile Credit Card

Post by Constantine » Sun Dec 02, 2018 6:38 pm

I've found a profitable fintech! :)

Leading the fintech revolution before ‘fintech’ was a thing. Cashplus is the original UK challenger to banks and the only one to become profitable.

http://www.cashplusgroup.com/?_ga=2.159 ... 1543775002

I've looked at their last accounts, and they are indeed profitable. But also technically insolvent, presumably due to past losses. They are owned by some US venture capital operation (not a whisper of crowdfunding) which likely is supporting them.They appear to have launched the very first prepaid credit card in the UK, and seem to now offer various kind of debit and credit cards. They are it seems talking to the PRA about getting a banking licence.

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Re: Jaja - Mobile Credit Card

Post by Constantine » Sun Dec 02, 2018 8:07 pm

pabenny wrote:
Sat Dec 01, 2018 5:39 pm
I could believe that some have a business model which amounts to make a noise, attract enough custom to appear a credible challenger so that someone will buy out the owners at a fat price in order to get their hands on their technology and to eliminate the nuisance.
I can remember the dot.com boom.There were plenty of companies who rode that wave where Mr Bloggs would set up the business and pay £2 for a 20% share. and then sell the remaining 80% for £10m to a bunch of investors. A couple of years later having burnt through most of the £10m, the directors would surrender, and flog off the assets (the domain name and a mailing list, whatever) for 1m.

Not that bad a deal for Mr Bloggs, who'd get £200k back on his £2. Not such a good deal for the other investors who got back £800k for their £10m.

I think that's what you call a backstop. :)

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Re: Jaja - Mobile Credit Card

Post by axelandpixel » Sun Dec 02, 2018 10:12 pm

pabenny wrote:
Sat Dec 01, 2018 12:30 pm
On investing in fintech, are there any that are actually profitable - or even have a clear route to profitability?
My first fintech investment is a travel card called WeSwap and it's aiming to float next month on AIM. I don't have the details yet as to how much is our multiple but even with an uplift of share price, I will hold my shares for another year for EIS purpose.

http://www.cityam.com/268910/peer-peer- ... im-targets

I have a mixed portfolio of startups including Tuk Tuk Chai. Just putting a bit of money on products I believe will be profitable.


About Monzo, I missed out on that one but those who invested in the first round is looking at x15 of their investment as the new share price is more than £7 now. It's common for startups to be in a loss in their first 3yrs but it's a unicorn now with more than 1m customers so I guess they'll breakeven soon.
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