The business model is to have a range of free Apps, with micropayments based on in-App purchases creating the long-term financial payback. The breakthrough technology is the ability for these Apps to be created by the community at no cost on a low cost, easy to use App Platform. App developers just have to complete templates and will be rewarded with micropayments on transactions for commercial Apps and Community Credits for non-commercial Apps. Getting the community to download the App Platform in large enough numbers is incentivised by providing micropayments, based on transactions through the embedded payment portal, to anyone who provides an environment which generates a download of the App Platform.
Our Apps will nudge local connections, spend and savings across a minimum of 10 to 20 Apps, generating marginal improvements in economic and social outcomes, such as access to local information, goods and services, education, people and work opportunities. For each community of 150,000 we expect 14,000 interactions per month (less than 1 in 10 people interacting monthly with one of the commercial Apps), generating £660,000 incremental revenue annually for community businesses.
Easy to Implement
The Databases and IT infrastructure are hosted by SmartWorld Connect and are secure and fully scalable to whatever data and applications are introduced.
Great Financial Model
We will provide and host the SmartWorld Connect Platform for you at a low annual cost fee.
The annual fee for the City is set at a level where it could be completely covered by revenue share from the App purchases of the stakeholders.
Revenue share from the Apps comes from Premium Purchases, In-App Purchases and Advertising.
The payment portal embedded in the App Platform allows users to develop new Apps that can take payments, such as smart parking, venue booking, instant recruitment and event booking. We expect revenue through the payment portal of approximately £660k per community through small marginal gains across many Apps targeting different customer segments. Many Apps will focus on generating footfall for community centre businesses through marketing local resources, push marketing of special offers and click & collect for independents. Businesses involved can expect 5-10% of their revenue digitally tracked from the Apps. The majority would be incremental revenue.
Partners supporting App Platform downloads (e.g. local authorities and Wi-Fi providers) receive 3% of transaction revenue through the payment portal from any user downloading from their platform.
Local App Developers receive 3% of transaction revenue of their App.
SmartWorld Connect receive 3% of transaction revenue, plus any sponsorship fees.
By creating many non-commercial community Apps, we expect to drive traffic to the App Platform resulting in increased uptake of the commercial Apps.