The company has acquired the intellectual property and operations of Comerci-‐On, a niche banking company that installs Point of Sale (PoS) units in small convenience stores and provides them with banking services, credit card services, domestic and international shipping and inventory management/ordering services. In addition the units can be used to pay tax and utility bills. Comerci-‐On will earn a percentage on each transaction.
One critical aspect of the Comerci-‐On service is that a bank account must be established for the store. This allows the store to participate in a wide range of services. Most of these small convenience stores do not have any sort of bank account. By opening a bank account with Comerci-‐On, the shop becomes more official in the eyes of the government as well as with their service providers (i.e. utilities) and suppliers. The stores are then able to accept credit and debit cards, which are growing in popularity in Mexico.
The company plans to rollout Comerci-‐On services in three states initially (Baja California, Guanajuato and Estado de Mexico). These three states have a combined population of 25.5 mn representing 20% of the Mexican population and 15% of Mexican GDP. We estimate that there are nearly 3,000 convenience stores in these three states.
The company has had promising initial conversations with Sam’s Club/WalMex (the Mexican division of WalMart) about developing an inventory management and on-line ordering component of the system. Access to Sam’s Club/WalMex’s large customer base of small businesses will be a significant boost for Comerci-‐On.
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