Airtime As A Currency Alternative

Fonbnk LLC (“Fonbnk” or the “Company”) provides free mobile access to un-/underemployed subscribers globally in exchange for performing small/micro-tasks using their existing mobile handsets; enabling financial inclusion via digital access (e.g., Google reCAPTCHA for mobile data). The Company provides borderless banking infrastructure directly to unbanked people around the world using the mobile internet. We utilize the global network of 8 Billion activated SIM cards to enable underutilized subscribers, women and other vulnerable populations, to unlock their potential and get paid in local airtime without friction thus driving financial equity via digital inclusion; creating a sustainable economic model (i) access, (ii) earn, (iii) pay and (iv) save utilizing Fonbnk’s next-generation open-architecture platform. 

By utilizing the incumbent network of prepaid mobile SIM accounts (8–Billion Active) Fonbnk has created a unique solution to profitably provide micro (bank) accounts on a global scale. The worldwide banking rails or means by which value is exchanged is fundamentally broken for the vast majority of humans. While there may currently be nearly 1 billion bank accounts, there is a need for billions more to address the inequity caused by digital exclusion. For example, if I make $1.00 per day and even manage to save a little it makes no sense to create a traditional bank account that may charge me anything to set-up and maintain an account; conversely, I am now locked out of the digital economy and the myriad of opportunities that it provides. Fonbnk addresses these challenges by making the payment (currency equivalent) with prepaid airtime which can be instantly distributed in micro increments as small as $0.01USD anywhere. 

Fonbnk wants to empower nearly 2.5 billion underbanked people globally, in which the majority of unserved adults live in Africa, Asia, Latin America, and the Middle East, and 800 million live on less than $5 a day. We offer an innovative range of high-quality, affordable, and simple financial products and services that leverage telecommunication as a basic human right to drive progress and change how subscribers live. With the right financial education and support to make good decisions, lower-income subscribers will benefit from the credit, savings, insurance, and payment products that help them invest in economic opportunities, better manage their money, reduce risks, and plan for the future. 

Our current primary targeted customer cohort is 18-25 tech-savvy Subsaharan Africans who have their own mobile devices, 3G or better, and have experience in participating in online revenue generation programs (e.g., marketing affiliate programs, micro-tasking, loyalty/rewards, games, etc.). Fonbnk users could experience frustration with these services/opportunities that are not originally designed for non-U.S. users. While many subscribers can perform tasks, they cannot get paid. Fonbnk addresses this challenge by making the payment with prepaid airtime which can be instantly distributed globally in micro increments as small as $0.01USD anywhere.

Our solution enables simple identification utilizing 2-factor authentication. Fonbnk enables a form of authentication using similar process to reCaptcha. Given COVID-19 pandemic, there is significant demand for simple, digital solutions for online commerce where Fonbnk is a beneficiary. Our platform is used by Non-Governmental Agencies to distribute or "airdrop" prepaid telecom access credits as part of their COVID19 response efforts.They are supporting their most vulnerable stakeholders across Sub Saharan Africa whose primary financial asset is their mobile phone. This same use case can be applied to any multinational supply chain as real-time mobile access is provided as a remittance alternative. 

Many western payment providers e.g. PayPal or Stripe are not economically suitable for these applications. Furthermore, cryptocurrency trading and remittance platforms are too complicated for many mobile money users. It should also be noted many African and EM payment providers are not API accessible to many western eCommerce companies.  Fonbnk addresses this by creating a sustainable economy by providing free mobile access in exchange for micro-tasks, targeting un/underbanked mobile subscribers across emerging markets. 

This application “payments for micro-tasking” drives a high usage velocity of the platform that drives additional service offerings; payments, lending, remittances. For example, the average mobile subscriber spends ~$50.00 annually on mobile access (GSMA). Participants in the Fonbnk microwork trials earned $5.00-10.00USD weekly thus resulting in an annualized surplus exceeding $400USD or up to 9 years of their current annual mobile expenditure. The Fonbnk solution is Over-the-Top (OTT) so no need to ask permission of mobile carriers and is currently available to subscribers on every continent that has a mobile carrier. 

Since formation in December 2019, Fonbnk is on track to garner nearly 50,000 subscribers across all the leading African economies and generating nearly $50,000 in cumulative gross marketplace value. The number of subscribers has grown +80% month-over-month since 1Q2020. Furthermore, the Company is on track to generate over $5 million in revenue in the next twelve months and has key partnerships to execute every aspect of its current product and growth strategy; currently works with over 600 mobile network operators globally (200 countries covering nearly 5 billion people). Additionally, have a revenue channel relationship with a leading, independent micro-tasking platform globally in support of our key digital/financial inclusion objectives. 

Fonbnk drives financial equity via digital inclusion, unlocking the human potential for billions globally. Our theory of change encompasses three components: 

1. Gender Equality: 

Fonbnk primarily focuses on addressing the challenges preventing women from access to mobile internet, narrowing gender inequality by driving +50% (+12% improvement) of the adoption of the Fonbnk service by women in our intended markets.

We plan to do this specifically by highlighting women’s participation in case studies, advertising, and outreach. Video tutorials and audio instructions could also be added to support women, especially anyone with lower literacy levels, to use our platform. These activities shall be orchestrated directly by Fonbnk and in conjunction with diversifying partner organizations; GSMA, MNOs, and select NGOs. 

2.  Industry, Innovation, and Infrastructure:

Pursuing a virtuous cycle of success, Fonbnk focuses on infrastructure investments to achieve sustainable developments. Like many industries experiencing massive realignment as a result of new entrants. Specifically, the mobile wireless industry is being disrupted by Over-The-Top competitors/partners like Facebook (Messenger, WhatsApp, etc.) who forked the industry with their suite of “free” value-added communications services. Fonbnk opportunity is predicated on leveraging this disruption with a FinTech solution that utilizes installed infrastructure and enables more efficient mobile carrier network utilization. If we can create a sustainable model subsidizing mobile data access for emerging market customers, we ALL win big!

3. Partnerships:

Our partnership with mobile operators and other organizations is built upon values, a shared vision that places mobile access as a basic human right, and is needed at a global level. Fonbnk wants to utilize modern open source technology and Web 3.0 best practices (APIs and Distributed Ledger) to drive not just economic but also ethical collaboration among global partners. A successful working relationship brings free innovations to users, provides next-generation work for unemployed subscribers, enables mobile operators and remote employers to deliver their business, and generate economic value. 

We can enable anonymous identification using subscribers mobile number(s) and location. While the ability to provide trusted identity is essential to daily life, around 3.4 billion people have some form of ID but have limited ability to use it in the digital world (Mckinsey). Fonbnk is committed to addressing the incredible challenge of digital identity and empowering vulnerable populations with access to identification in a scalable, secure, and sustainable manner. Leveraging 2-factor authentication, Fonbnk demonstrates personal identity for anyone with a prepaid mobile SIM card for verification number (90% of world SIM cards are prepaid) and a verified online identity can now have a global stored value (bank or current) account for FREE by recharging their existing mobile phones. 

The solution is based on the Ethereum Blockchain to globally tokenize units of prepaid mobile airtime (“MIN” that are fully convertible into local airtime at the account holder’s preferred mobile carrier nearly anywhere - 200 countries/600 mobile carriers). Essentially Fonbnk offers airtime as a currency alternative as account holders have the option of converting these MINs, transferring them, earning them through accomplishing microtasks, and soon earning interest on them. 

The transparency, efficiency, and effectiveness are always the strong focuses of our solution to enhance the digital identification system. Our solution allows users to click and sign up, no installations; just authenticate and enter your verification code via SMS; No more smart cards or USB/OTP tokens; and no downloads to make and no drivers to install. Providing the simplest digital identification solution to millions of vulnerable individuals, Fonbnk utilizes the board network of 8 billion SIM Cards globally as the most simple digital identity that can be used to do transactions with airtime, access microtask opportunities, and obtain other financial services such as micro-lending, savings and remittances.

As a critical part of customer engagement, we offer a very diverse set of channels for communicating with our users and address real-time issues, including hotline, Facebook Messenger Bot “Teller Bot”, Whatsapp Customer Success Group chat, email, and Instagram direct message. Subscribers can easily choose their preferred channel to express any concerns with service delivery and to demand redress. Our channels can also be used in a positive way to know our customers and provide feedback to Fonbnk’s teams about the performance of services.

Fonbnk utilizes the public Ethereum (ETH) and created its own form of a stable value token MIN (ERC20). Each MIN is seamlessly held in subscribers wallets ETH and represents $0.01USD that is fully convertible in units of prepaid airtime from 600 mobile carriers across 200 countries. No ETH gas is charged to subscribers. Accordingly, our application is hosted in the cloud and fully accessible via API to third-parties. 

Fonbnk is currently working with over 600 mobile carriers and wifi providers globally and covering 5 million people to enable underserved populations to access our products and services, enhancing financial inclusion and reducing global inequality.

In order to supplement gaps in our existing coverage capability, we plan to  partner with existing and new network access providers that address the last mile solutions. Fonbnk focuses on the latest updates from big companies such as Facebook, Google, and SpaceX that are working on plans for connecting these remote regions to the internet. Facebook tries to achieve this with Internet.org as well as drones, Google counts on high-altitude balloons, while SpaceX invests in future user satellite terminals — the antennas that customers will use to tap into the massive internet-from-space satellite constellation that SpaceX is building. Besides that, WiFi-based Long Distance Networks are also useful in sparsely populated areas with extended cover distance when modifications of the Media Access Control (MAC) layer in the networking protocol and the use of range extender amplifiers and directional antennas are leveraged.

Since 2019, Fonbnk has enabled 50,000+ subscribers globally, with more than 90%+ from underserved communities and 38% women users. The number of subscribers has grown +100% month-over-month since 1Q2020. 

In the next 12 months, we expect to be serving at least 100,000 subscribers at 60-70% participation by women, from underrepresented populations typically living in rural locations, women, and other vulnerable peoples by expanding partnerships to execute every aspect of its current product and growth strategy. We are currently working with over 600 mobile network operators globally (200 countries covering nearly 5 billion people).

Furthermore, in the next 5 years, the Company is on track to reach tens of millions of subscribers directly as well as via our partners using the Fonbnk the platform, specifically targeting underserved and culturally diverse communities across emerging markets. We aspire to serve the global network covering 5 billion people including all major prepaid mobile carriers across the world.

Our vision is to transform Fonbnk into a Visa or Mastercard like a network processor  for mobile access (billing) authentication utilizing our unique distributed ledger solution; creating a seamless, ubiquitous quilt that drives a sustainable business model resulting in financial equity via digital inclusion for the most vulnerable of mankind. 

Key business milestones include developing marketing relationships with the leading alternative access providers like Google-Loon or Google-Fi, core card processors including both Visa and MasterCard across their emerging market footprints in addition to adding more revenue-generating channel partners; become what PayPal was to eBay (Auctions), Fonbnk wants to be for AI/ML Micro-tasking enabling airtime for jobs.

Government Regulations and Policies. While the Company is fully compliant with all known and generally accepted regulatory policies and requirements globally by either directly or indirectly via partners, this is still a challenge to address as some countries make it difficult to help their underserved and disadvantaged populations. As a result of political persecution and kleptocracy many emerging market countries create moving guidelines that make it difficult to do business directly. 

Our solution is unique and can work Over-the-Top (OTT) of incumbent regulators and utilities assuming there is basic internet penetration. We also see this as an area as we obtain more resources and partners we can proactively address on a continuing basis.

6 FTEs

Fonbnk has an experienced and global executive team with extensive experience and in-depth knowledge in FinTech and Telecommunication in Latin America, Europe, Middle East, Africa, South East Asia, and the United States markets.

The Founder & CEO - Christian Duffus is a 3-X FinTech entrepreneur with nearly 20 years of experience in financial and wireless technology. Christian aspires to transform Fonbnk into a Visa or Mastercard like a platform for mobile access authentication utilizing our unique distributed ledger solution; creating a seamless, ubiquitous quilt that drives a sustainable business model resulting in financial equity via digital inclusion for the most vulnerable mankind. He has demonstrated experience required to fully execute this venture; built and sold 3 FinTech ventures (most recent exit to SoFi), developed leading wireless industry standards (investors: KPCB, Redpoint, CRV, True) in spectrum allocation including the sale of intellectual property to Qualcomm (US8290848B2). 

Fonbnk currently works with over 600 mobile network operators globally (200 countries covering nearly 5 billion people) utilizing existing *wholesale* channels; therefore there is *NO* additional technical integration required to partner with mobile operators at this time. That said, it is anticipated that Fonbnk will interface the marketing organizations and/or not-for-profit affiliates (including GSMA) to perfect the anticipated go-to-market plan. These complementary resources could include but are not limited to outbound SMS campaigns, promotional (in-kind) credits, and general marketing support from sponsoring organizations. Finally, based on the success of the program, Fonbnk plans to work towards a direct wholesale relationship with select mobile operators as strategically beneficial to both parties.  

Fonbnk has a simple, transaction-based revenue model. Comparatively, many existing transaction- based, western payment providers (e.g. PayPal) are not economically suitable for these applications. Furthermore, cryptocurrency trading and remittance platforms are too complicated for many mobile money users. It should also be noted many African and EM payment providers are not API accessible to many western eCommerce companies. Fonbnk addresses this by creating a sustainable economy by providing free mobile access in exchange for micro-tasks, targeting un/underbanked mobile subscribers across emerging markets. 

This application of “payments for micro-tasking” drives a high usage velocity on the platform that utilizes additional service offerings such as payments, lending, remittances and saving that occur in Fonbnk’s proprietary ecosystem. For example, the average mobile subscriber spends ≈$50.00 annually on mobile access (GSMA). Participants in the Fonbnk microwork trials earned $5.00-10.00USD weekly thus resulting in an annualized surplus exceeding $400USD or up to 9 years of their current annual mobile expenditure. The suite of Fonbnk solutions enables the user to convert their airtime tokens (credit value) into currency using Virtual Visa Cards (e.g., purchasing a gift card) or they can even deposit funds into a time-deposit account earning interest in the airtime tokens. The Fonbnk solution is Over-the-Top (OTT) so there is no need to ask permission of mobile carriers and is currently available to subscribers on every continent that has a mobile carrier.

Fonbnk is a for-profit company, our primary business model is the resale of prepaid mobile access and financial solutions paid for by multinationals for the benefit of our subscribers; free Airtime for Jobs. Our current business plan is profitable and seeks to grow with accretive partnerships like that proposed with MIT Solve. 

1. Christian Duffus | Equity | $50,000

2. BiTSR, Inc.| Equity | $15,000

3. Protocol Investment LLC | Equity | $10,000

4. GP Ventures | Equity | $10,000

5. Javier Saade (Fenway Summer) | Equity | $10,000

6. John Muleta (Atelum a/k/a DISH) | Equity | $10,000

7. Jordan Nichols (Facebook) | Equity | $10,000

8. Vanessa Maren (Visa) | Equity | $1,000

Total: $116,000

Our core application is profitable and self sustaining. We may choose from time to time to raise additional funding as the terms benefit Fonbnk shareholders.  

We anticipate reaching breakeven based on our trailing run-rate form FY 2020. As such our expenditures should not exceed $500 thousand USD in line with our expected revenues of $5million.

We’re excited about joining the Mission Billion Challenge Global Prize group, MIT-backed network and Solve's community of peers, funders, and experts to advance our innovative work. Fonbnk would principally like to gain MIT’s support in gaining mentorship, technical expertise, and exposure to media, conferences relating to our business area. Additionally, through Solve’s global network, we want to obtain access to other potential partners, leading multinational for-profit and NGO organizations that complement our business model. We desire to expand our network of mobile operators, micro-tasking providers across 50 united nations. Given our ambitious goals to scaling in the next few years, Solve’s invaluable resources will be critical for us to achieve our strategic goals.

To reach strategic and financial goals, Fonbnk seeks partnerships with:

• Potential investors and capital venture to raise additional fundings in the next rounds

• MIT faculty to refine and innovate our products and services for our subscribers.

• 500 cross-sector leaders and entrepreneurs in SOLVE and World Bank community to learn more about big data analytics and machine learning and AI testing services