Hybrid POS solution enabling transactions via SMS during internet outages. Targets micro-merchants in emerging markets with unreliable connectivity, reducing payment failures by 40%. Features offline data storage and cloud sync.
PayLink Offline addresses a critical pain point for 126 million micro-merchants across Africa, SE Asia, and LatAm: payment failures during internet outages. This hybrid POS device processes transactions via encrypted SMS when connectivity drops, storing data locally until cloud sync resumes. By eliminating downtime revenue loss, it unlocks economic resilience for underserved businesses.
Core functionality
Hybrid POS system with dual processing: online transactions via standard methods and SMS-based processing during outages. Features include:
- Local transaction storage with auto-cloud sync when connectivity resumes
- Military-grade SMS encryption for security
- Real-time offline balance tracking
- Battery backup for 8+ hours of operation
Target user and segment
Serving:
- Micro-retailers in rural areas (70% focus)
- Mobile vendors & market stall operators (20%)
- Small service providers like motorcycle taxis (10%)
Primary markets: Nigeria, Indonesia, Kenya, Philippines with populations experiencing >30% daily internet disruptions.
Recommended tech stack
- Hardware: Raspberry Pi terminal + GSM module + E-ink display
- Mobile: React Native (Android-first)
- Backend: Python/Django + PostgreSQL
- Offline Storage: SQLite with delta-sync algorithm
- APIs: Twilio for SMS + AWS S3 for cloud sync
Estimated MVP hours and costs
Development phases:
- Hardware prototyping: 80h (€8,000)
- SMS processing core: 120h (€12,000)
- Cloud sync engine: 100h (€10,000)
- Android interface: 150h (€15,000)
- Security systems: 70h (€7,000)
- Testing/QA: 50h (€5,000)
Total MVP cost: €57,000 at €100/hour (570 hours)
SWOT-analysis
Strengths:
Unique offline-first architecture • 40% lower payment failures • Local language support • Low hardware cost
Weaknesses:
SMS carrier fee fluctuations • Limited offline fraud detection • Battery life constraints
Opportunities:
Mobile money provider partnerships • Government financial inclusion programs • Accounting tool cross-selling
Threats:
Satellite internet expansion • Local payment regulations • Rising SMS costs
First 1000 customers strategy
Acquisition mix:
- 40%: Bundled partnerships with mobile networks (Airtel/MTN) – CPA €20
- 30%: Agent networks at regional markets – CPA €25
- 20%: FB/WhatsApp ads targeting SME groups – CPA €28
- 10%: Merchant referral program – CPA €15
Total acquisition cost: €22,500 (7% conversion from 14,286 leads)
Monetization
Revenue streams:
- Device sale: €45/unit (break-even at 2,300 units)
- SaaS subscription: €2.99/month
- Transaction fee: 0.4% per payment
Revenue projection: €8.45/merchant/month average
Breakeven: Month 18 at 2,300 merchants
Core team: 1 hardware engineer, 2 software developers, 2 field sales agents
Market positioning and competitors
Market size: 126M addressable merchants across target regions
Direct competitors: PalmPay (online-only), Yoco (South Africa focus), Verifone (premium pricing)
Sales strategy: Free hardware with 12-month SaaS contract through microfinance partners
Micro-niches: Farm co-op payment hubs • Pharmacy cash management • Transport fleet collections
