Australian Gift Card
Market Opportunity
Capturing Market Share in Regulatory Chaos
The $10.9 Billion Market in Panic
AML/CTF Amendment Bill 2024
Gift cards designated as “value transfer services” with mandatory KYC for all purchases.
Industry Unprepared
12-18 months needed to build compliance infrastructure. Most providers calling it “impractical and unnecessary.”
Regulatory Timeline
The Opportunity
Market Segments
Why Now: Blood in the Streets
“Make hay while there is chaos and blood on the streets.”
Market Tailwinds
Digital-First Consumer Shift
69% of gift cards now digital. Post-COVID e-gifting acceleration.
Corporate Market Expansion
54% B2B segment growing for employee rewards & loyalty programs.
Regulatory Moat
AML/CTF creates 12-18 month barrier. First movers capture exiting share.
Competitor Chaos
Blackhawk Network
Physical card focus, legacy tech, no KYC built
Digital-first, KYC-ready
Prezzee
10% workforce cuts, signalling exit from Australia
Committed to AU, compliance-ready
InComm / TCN
Retail model incompatible with KYC requirements
Direct digital delivery
Incumbent Landscape
Blackhawk Network (BHN)
- •Global leader, 400K+ consumer touchpoints
- •Revenue: Retailer fees + $2.95/card activation
- •Foreign transaction fees: 3%
Prezzee
- •$160M revenue (2023), $1B+ processed annually
- •Revenue: 1.15% merchant fee + $4.95 Visa card fee
- •85% owned by Shaun Bonett (Precision Group)
InComm Payments
- •Acquired TCN for ~$70M
- •Revenue: Retailer distribution + transaction fees
Physical Card Providers
- •Shopping centre cards, retail chains
- •No digital infrastructure
Shouta + Kobble: The Only Compliant Solution
Shouta
B2C Platform
- 55,000+ customers
- 300+ B2B clients
- Best-in-class reloadable gift card product
- 100% breakage retention on direct B2C
Kobble
Infrastructure
- Built to power Shouta-style clients
- Mastercard Principal Issuer
- AFSL 545391 & AUSTRAC registered
- Full KYC/AML infrastructure ready
- 4-12 week deployment for new clients
Why We Win
KYC-Ready Infrastructure
Built for compliance, not retrofitted
Digital-First
Virtual cards, full digital experience, Apple Pay enabled
Speed to Market
4-12 weeks deployment (vs 12-18 months for competitors)
Proven Migration
Successfully migrated Shouta from EML to Kobble
Regulatory Moat
AFSL, AUSTRAC, Mastercard Principal Issuer
Multiple Revenue Streams
| Revenue Line | Description | Typical Rate |
|---|---|---|
| Load Fees | Fee per card load | $2-5 per card |
| Transaction Fees | % of transaction value | 1.5-2.5% |
| Platform Fees | Monthly SaaS fee per client | $5K-25K/month |
| Breakage | Unredeemed balances | 40-50% share |
| Setup/Integration | One-time onboarding | $25K-100K |
| Card Issuance | Per-card production (virtual) | $0.50-1.50 |
Breakage Opportunity
Industry breakage averages 10-20% of card value.
Gross breakage revenue at $1B volume with 15% breakage and 50% share
18-Month Financial Scenarios
| Metric | Conservative | Base | Aggressive |
|---|---|---|---|
| Market Share | 3% | 10% | 20% |
| Volume | $327M | $1.09B | $2.18B |
| Transaction Revenue | $6.5M | $21.8M | $43.6M |
| Breakage Revenue | $2.5M | $8.2M | $16.4M |
| Platform/Other | $1.5M | $5M | $10M |
| Total Revenue | $10.5M | $35M | $70M |
| Investment Required | $2.5M | $8.3M | $16.5M |
Assumptions: 2% transaction fee, 15% breakage rate, 50% breakage share on B2B (100% on B2C direct)
Revenue vs Investment by Scenario
Use of Funds
Execute Kobble & Shouta revenue strategy
Platform capabilities & AI integration
Migration & onboarding specialists
Key hires: Sales, integration, client success
Reserve & float requirements
Proven Track Record
Key Milestones
- Successful EML migration
- Multiple inbound enquiries post-regulation
- Insurance, payments & corporate clients onboarded
Regulatory Moat
AFSL 545391
Australian Financial Services Licence
AUSTRAC Registered
AML/CTF compliance
Mastercard Principal Issuer
Direct card issuing capability
Apple Pay Enabled
Full digital wallet support
“Kobble and Shouta are perfectly placed to be the saviour in this scrambling market. We have the core components and more out of the box.”
Investment Opportunity
Key Terms
Exit Optionality
Strategic Acquisition
Mastercard, Visa, major payments players
Industry Consolidation
InComm, Blackhawk or other incumbents seeking compliant infrastructure
IPO
Public listing as market leader in compliant gift card infrastructure
Continued Cashflow
Distributions from profitable operations
The Ask
To capture 3-20% market share in the 18-month regulatory window
“Make hay while there is chaos and blood on the streets.”