Financial Analysis

Target markets

As per the exhibits, the latest trends in geographic segmentation of interac direct payment users by province shows that the markets in Ontario, Quebec, BC and Alberta, constituted 87% of total Canada, merchants by province is 86%, and transactions by province is 86%. There has certainly been a trend towards interac direct payment from markets in the four provinces, as compared to the rest of the local Canada markets.

It would make more sense that Dexit launches its service in the particular four geographic locations. A sales force could be hired for recruiting merchants to accept Dexit’s service. Annually cost for hiring salespeople would be $100,000 each, 10 sales are suggested to service Toronto, 25 sales if service nationally. Approximately, annually sales expense only for a single area will be from $1M to $2.5M. Considering the risk of potential financial loss, or other negative impact if failures are occurred, a risk assessment perhaps will need to be conducted.

Also, it is necessary that strategy vision is set by answering the important questions, such as: who are our customers?  What are their needs? and how to satisfy those needs? So far, Dexit seemed better suited to low-value transactions. The consumers will be expected to use Dexit service for average purchase transaction as small as $4, and as large as $25.
The markets that Dexit was catering to serve customers were Ontario, Quebec, BC and Alberta. Therefore, the low-value transaction service should be designed to meet the four provinces’ needs as the segments would be most profitable.

With respect to adding extra charges on consumers’ purchases, a further market survey will need to be conducted and is better based on the early consulting report to find out if the users are comfortable pay for the charge, a fixed amount, such as: pre-set number of transactions or monthly fee. Or a percentage of total cost as an additional “sales tax”...