1. Executive Summary
Jupay is a digital peer-to-peer payments platform that enables fast, low-cost international money transfers by leveraging cryptocurrency conversion. Users can send money in their local fiat currency (e.g. USD, EUR, NGN), which is then automatically or manually converted into crypto assets (such as JUP or stablecoins like USDC/USDT) via the integrated JUP Swap feature. Recipients can easily convert the crypto back into local currency through an in-app automated peer-to-peer marketplace, with funds deposited directly into their bank accounts. All transaction fees will be paid in JUP tokens, aligning the platform’s usage with its native token economy. Jupay’s solution addresses the high fees, slow speeds, and limited accessibility of traditional remittances by offering a fast, transparent, and cost-efficient alternative. The target will be large and growing global remittance market and crypto-savvy users in emerging markets, with a sustainable business model built on transaction fees (in JUP) and currency conversion spreads.
2. Problem and Opportunity
*Traditional money transfer services often involve high fees, lengthy wait times, and inconvenient processes, especially for the unbanked.
The problem: Sending money across borders is still expensive and slow for many people. Globally, remitters pay about 6% in fees on average to send money abroad, which means senders lose billions annually to fees ​forkast.news. For example, Americans alone spend around $12 billion per year in remittance fees ​forkast.news. Traditional remittance methods (banks, money transfer operators like Western Union) can take 1-10 days to settle funds and often have non-transparent exchange rate markups ​[forkast.news] (Overseas crypto transfers cost 96.7% less). In many corridors, especially those involving developing countries, fees can be astronomically high - A World Bank study found fees as high as 36% for sending $200 to some regions ​cryptoforinnovation.org. These pain points disproportionately affect migrant workers and their families who rely on remittances for basic needs.
At the same time, slow speeds and limited accessibility plague traditional systems. Transactions pass through multiple intermediaries, and many recipients in emerging markets lack full banking access, forcing them to visit physical agents or use informal channels. Transparency is another issue – senders often have little visibility into where their money is in the process, and exchange rate margins are hidden ​forkast.news. There is a clear need for a faster, more affordable, and user-friendly way to send money globally.
The opportunity: The international remittance market is enormous and growing. In 2022, global remittance flows reached about $831 billion, with ~$647 billion going to low- and middle-income countries ​nairametrics.com​nairametrics.com. These flows are vital for hundreds of millions of people – close to 800 million individuals worldwide depend on money sent by family members abroad​forkast.news. Despite this huge volume, costs remain high, so even a marginal reduction in fees can save billions and directly improve living standards. There is strong momentum toward digital solutions: the COVID-19 pandemic accelerated adoption of mobile and online remittances, resulting in a 48% increase in money sent through mobile channels in 2021 ​ifad.org. Consumers are increasingly comfortable with fintech and mobile wallets, creating an opening for innovative platforms.
Crucially, cryptocurrency adoption is rising in many remittance-dependent regions. Users in countries like Nigeria, Kenya, and the Philippines have turned to crypto to circumvent currency instability and transfer restrictions. Nigeria, for instance, received over $20 billion in remittances in 2022, yet faced exorbitant fees and forex shortages – conditions which have made crypto-based transfers very appealing ​cryptoforinnovation.org. Nigeria now ranks among the highest in crypto usage, especially in peer-to-peer trading ​cryptoforinnovation.org, ​cryptoforinnovation.org. This signals a readiness in the market for a solution that blends the familiarity of local currencies with the efficiency of crypto networks.
The opportunity is to tap into a multi-billion dollar remittance market by solving its core pain points (cost, speed, access). By leveraging crypto as a transfer rail while keeping the user experience in fiat terms, Jupay can dramatically reduce fees (potentially to a fraction of a percent) and settlement times (to minutes), meeting a critical need for migrants, unbanked populations, and global digital workers. The convergence of large market size, dissatisfied customers, and maturing crypto infrastructure creates a perfect storm for Jupay’s solution.
3. Solution: Platform Overview and Workflow
Jupay’s Solution: Jupay is a cross-border payment platform that combines traditional fiat payments with cryptocurrency conversion to enable fast, low-cost transfers. The platform provides a seamless workflow where users send and receive money in their local currencies, while behind the scenes value moves through crypto for efficiency. Key aspects of Juppay’s platform include:
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Local Fiat On-Ramps: Users can load money in their local currency. Juppay provides local bank account details or other on-ramp methods (e.g. bank transfer, card payment) linked to the user’s wallet. For example, a user in the US would deposit USD, while a user in Nigeria could deposit NGN.
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Auto or Manual Crypto Conversion (JUP Swap): Funds received in fiat are either automatically converted into cryptocurrency or converted at the user’s discretion via the JUP Swap feature. By default, a user can choose to auto-convert incoming funds to a stablecoin like USDC/USDT or to Juppay’s native token JUP. The conversion uses real-time exchange rates. JUP Swap acts as an integrated exchange, ensuring users get competitive rates for swapping between fiat and crypto.
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Crypto Wallet Balances: Each user has a crypto wallet within the app that holds their digital assets post-conversion. This wallet supports JUP, USDC, USDT, and potentially other major cryptocurrencies. It is linked to the user’s account, but the complexity of blockchain is abstracted away – the user simply sees a balance in the app.
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P2P In-App Marketplace for Local Cash-Out: When a user wants to withdraw or cash-out their crypto to local fiat (for example, the recipient of a transfer wants to get cash in their bank account), they can use Jupay’s integrated peer-to-peer marketplace. This P2P feature will be automated such that all fiat-to-crypto and crypto-to-fiat transactions are fully handled exclusively by the app, without relying on external peer-to-peer matching. Such that:
- Jupay will act as the sole liquidity provider for buy/sell operations.
- Users cashing out will receive local currency directly from Jupay’s treasury or bank partners.
- Users buying crypto will pay Jupay directly, with instant delivery of crypto to their in-app wallet.
- Exchange rates and settlement are managed internally for full control, speed, and transparency.This ensures a smoother, faster, and more secure user experience.
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Instant Settlement and Transfers: Because Jupay handles crypto conversion internally and uses its own escrow for P2P trades, transfers are extremely fast. A cross-border payment effectively happens as quickly as moving crypto between wallets (often in seconds or minutes) plus the time for a local bank transfer on the receiving end. In many cases, especially if the recipient already has a balance, the transfer is nearly real-time. By not relying on third-party correspondents for settlement, Jupay provides transparency and speed – users can track the status of their transactions in-app.
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Unified Payment Accounts: Jupay links the crypto wallet with traditional banking by providing each user with virtual account details for various fiat currencies. For instance, a user may get an IBAN for EUR, an ABA routing/account number for USD, or a virtual account in NGN. These accounts are tied to the user’s Jupay wallet (essentially, the account is a front-end for their crypto wallet). When fiat funds are received at those account details, Jupay’s system automatically credits the user and converts the funds to their chosen crypto. This gives users the feeling of having a local bank account in sender countries, while Jupay handles the conversion behind the scenes.
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Fees in JUP Token: All transaction fees on the platform will be charged in JUP, the native token. Rather than paying fees in the currency being sent or received, Jupay will deduct a small amount of JUP from the user’s balance to cover fees (or require the equivalent value in JUP to be available). This means JUP token is the “fuel” of the ecosystem – users will be encouraged to hold a little JUP to pay fees, creating demand for the token with each transfer and swap
Workflow Example: To illustrate the solution, consider a typical use case – sending money from the USA to Nigeria:
- Sender (Alice in USA) – Initiation: Alice use her local bank to send $500 to her friend Bob in Nigeria. She chooses to send $500 USD to her friend in Nigeria, but payment barrier within the country will not allow her to be able to make the payment. Alice funds this transfer by either linking her U.S. bank to Jupay or she will be able to send from her bank account to an account provided by Bob(which is a US bank account on Jupay). The $500 is pulled from her local bank account and sent to the account Bob provided.
- Conversion to Crypto: Through JUP Swap, Bob’s $500 is instantly converted to a cryptocurrency. For minimal volatility, it could convert to a stablecoin like USDC. Alternatively, if Bob has set auto-convert to JUP (perhaps to take advantage of lower fees or incentives), it converts to JUP token. Suppose it converts to USDC – Jupay executes this behind the scenes at a near-market exchange rate, so approximately 500 USDC is obtained (minus a tiny conversion spread or fee).
- Transfer via Crypto Rail: Jupay then transfers the 500 USDC (or equivalent JUP) to Bob’s Juppay wallet address. This is an on-chain transfer (or an internal ledger transfer if both users are on Jupay’s custodial system) that happens within minutes or faster. Bob gets a notification that he’s received, say, 500 USDC in his Jupay wallet address.
- Recipient (Bob in Nigeria) – Cash Out: Bob has options. He could keep the USDC in his Jupay wallet (if he wants to hold it as dollars or potentially convert to another crypto), or he can withdraw to his local currency, Nigerian Naira (NGN). Bob chooses to withdraw NGN to his linked bank account. Using the P2P marketplace, Let’s say the current rate is 1 USDC = ₦750 (just an example). For Bob’s 500 USDC, Jupay will pay ₦375,000.
- Fees Deduction in JUP: During this transaction, any fees are taken in JUP. For instance, Jupay might charge a 1% fee for the service. Instead of deducting $5 from the amount, Jupay charges the equivalent value in JUP from either Alice or Bob’s JUP balance (depending on fee policy – perhaps sender pays a small fee and P2P trader pays a small fee). If JUP is trading at $0.10, then 50 JUP would be deducted as the $5 fee. Both Alice and Bob see a detailed breakdown of fees (in JUP) and exchange rates, so everything is transparent.
In this workflow, Alice was able to send money to Bob within minutes. Bob received local currency in his bank the same day (often within the hour) instead of waiting days. The cost for Alice and Bob combined was minimal (roughly 1% or less in fees, which were paid in JUP). Throughout the process, both users interacted mostly with their familiar currencies (USD for Alice, NGN for Bob) – the use of crypto was under the hood to move value efficiently. Jupay handled the complex parts (forex conversion, crypto transfer, finding a liquidity partner in Nigeria) through its platform.
Why This Solution Wins: Jupay’s platform eliminates the traditional friction points by blending fiat and crypto. Users get the best of both worlds – they transact in the currencies they know and need for daily life, but underneath, Jupay uses crypto rails to achieve speed and low cost. The process is secure (each step is trackable and crypto transactions are recorded on blockchain for transparency), and the JUP token integration creates an ecosystem where frequent users benefit from holding the token (for fees and potential rewards). By handling settlement natively and not outsourcing core functions, Jupay ensures a high-quality, reliable user experience.
4. Market Analysis
Market Size and Growth
The market for international peer-to-peer money transfers (remittances) is massive and on an upward trajectory. In 2022, migrants sent $831 billion globally to friends and family back home(International remittances surge by 650% to $831 billion- IOM's world migration report 2024 reveals - Nairametrics). Of this, about $647 billion was sent to low- and middle-income countries (LMICs)​nairametrics.com​nairametrics.com – these regions (e.g. sub-Saharan Africa, South Asia, Latin America) are where remittance inflows form a significant part of GDP and household income. Remittance volumes have shown resilience and steady growth; even during the COVID-19 pandemic, flows continued to rise ​nairametrics.com. The World Bank projects remittances to LMICs will reach roughly $690 billion by 2025 (2.3% growth in 2024 and 2.8% in 2025) ​federalreserve.gov. Longer-term, as per IFAD, aggregate remittances could cumulatively reach $5.4 trillion by 2030 (2022-2030) if current trends continue ​ifad.org.
Digital remittance growth: A key trend is the migration from cash-based, in-person transfers to digital channels. Fintech services and mobile money are rapidly gaining share. The pandemic accelerated this shift – for example, a report noted a 48% increase in money sent via mobile remittance channels in 2021 ​ifad.org. The global average cost for digital remittances (using online/mobile platforms) is already lower (around 4.84% in 2023) than traditional methods ​unstats.un.org, and as digital adoption increases, costs are expected to fall further. By contrast, non-digital (cash agent) transfers average ~6.7% or higher ​migrationdataportal.org. This gap drives customers toward fintech solutions. Smartphone penetration and internet access in developing countries have made it possible for even rural recipients to use mobile apps or digital wallets to receive funds. For example, sub-Saharan Africa has seen the rise of mobile money services which people are comfortable using for daily transactions; integrating international transfers into such digital ecosystems is a logical next step.
Another important market development is stablecoin and cryptocurrency usage for cross-border payments. As of 2023, over 420 million people worldwide have used or owned cryptocurrency (an estimate as crypto adoption grew) and many of them are in emerging markets. Stablecoins like USDT and USDC now facilitate billions in peer-to-peer transaction volume, often for cross-border commerce or remittances. This suggests a growing addressable market of users who are open to crypto-based transfer solutions, especially as awareness increases that crypto transfers can cost a fraction of traditional fees (in some cases under 1%) and settle quickly ​forkast.news​forkast.news.
Target Customer Segments
Jupay’s target audience includes several overlapping segments of users who can greatly benefit from a combined fiat-crypto remittance solution:
- Migrant Workers and Diaspora Communities: Individuals working in developed countries (North America, Europe, Middle East, etc.) who send money regularly to support family in their home countries (Africa, South Asia, Latin America, Eastern Europe). They often send monthly remittances and are very sensitive to fees and exchange rates. Jupay offers them a cheaper, faster way to send support back home. Example: A Nigerian professional in the UK sending money to relatives in Nigeria; a Filipino nurse in the US sending funds to the Philippines.
- Unbanked / Underbanked Recipients: Family members receiving remittances who may not have full bank access. Jupay’s mobile-based solution (with local cash-out via P2P) allows them to receive funds directly to a mobile wallet and convert to cash or spend digitally, reducing the need for bank accounts. In regions where mobile money (like M-Pesa in East Africa) is common, Jupay could integrate with those for last-mile delivery.
- Freelancers and Remote Workers: A growing number of people in developing countries earn income globally (via freelancing platforms, remote employment, etc.). They face challenges receiving payments (clients may struggle with international bank wires or high fees for small payments). Jupay can serve as a platform for cross-border payroll and payments for these users – e.g., a software developer in Nigeria can receive USD from a US client into Jupay, which is auto-converted to crypto and can be sold for NGN at good rates, beating conventional options. Similarly, content creators or online sellers can use Jupay to get paid by international customers.
- Crypto Enthusiasts & Traders in Emerging Markets: Users who are already using platforms like Paxful, Binance P2P, or local Bitcoin groups to trade crypto for local currency. They are accustomed to using crypto as an intermediary to move money. For them, Juppay provides a safer, more user-friendly integrated app to do what they are already doing manually. They might adopt Juppay for the convenience of its escrow and the ability to also send money to others easily (not just trade for themselves).
- Students Abroad: International students paying tuition or living expenses across borders (or their families sending them money). Juppay could facilitate parent-to-student transfers in near real-time (for example, a parent in Ghana sending to a student in the UK or vice versa).
- SMEs and Merchants: Small import-export businesses or e-commerce sellers who often need to pay suppliers overseas or receive payments from abroad. While initially we focus on P2P, this segment could also utilize Juppay for B2B transfers that are smaller and more frequent than traditional business wire transfers.
Geographically, initial focus is on high-cost corridors such as North America/Europe to Africa (e.g., USA to Nigeria, UK to Ghana, Europe to Kenya) and to parts of Asia (e.g., to the Philippines, India, Pakistan, where large diasporas exist). These corridors see billions in volume but also some of the highest fees. For instance, sending money to sub-Saharan Africa costs around 8% on average, the highest of any region ​ifad.org, so the value proposition of Juppay (which can cut fees dramatically) is very strong there. As Juppay grows, it can expand to intra-Asia and LatAm corridors, and even support domestic transfers in countries with fragmented banking (for example, using crypto to bridge payments within Africa or within Southeast Asia, similar to how some use stablecoins informally).
Industry Trends and Drivers
- Cost Reduction Pressure: There’s a global policy goal (UN Sustainable Development Goal 10.c) to reduce remittance costs to 3% or less by 2030. Currently, at ~6% globally, there’s still a long way to go​ familyremittances.org. This external pressure makes incumbents try to lower fees, but also opens the door for disruptive tech like crypto to leapfrog. Governments and organizations are generally supportive of innovations that safely lower remittance costs, which bodes well for Juppay’s mission.
- Regulatory Evolution: Regulators are increasingly addressing crypto and fintech. Some countries are creating specific licenses for crypto exchanges and wallet providers. For example, in Europe, the new MiCA (Markets in Crypto-Assets) regulation (effective 2024) creates a clear framework for crypto services, which could legitimize and ease expansion for a compliant platform like Juppay. In Nigeria, the government, after initially restricting crypto, has recently started regulating it and even lifted certain bans in 2023 ​cryptoforinnovation.org, recognizing that a ban wasn’t effective and that embracing crypto could have economic benefits​cryptoforinnovation.org. This shift from hostility to regulated acceptance in key markets (Nigeria, India potentially exploring CBDCs and crypto rules, etc.) indicates a more favorable environment for Juppay in the near future.
- User Behavior: Younger generations of users (20s-30s) in both developed and developing countries are mobile-first and open to fintech solutions over traditional banks. They value convenience and speed. Many of them have some exposure to cryptocurrencies or at least digital wallets (like PayPal, Venmo, or local equivalents). This demographic tailwind means the addressable user base for Juppay is growing as tech-savvy individuals enter the remittance-sending age.
- Competition and Collaboration: Traditional players are themselves innovating (e.g., Western Union and MoneyGram now offer mobile apps and are experimenting with crypto/blockchain for backend settlement). Fintechs like Wise and Revolut have set new standards in UX and fees. This indicates strong competition but also validates that digital-first cross-border finance is the future. It’s easier now to form partnerships as well: banks or payment processors are more willing to partner with fintechs to extend services. Juppay could potentially partner with local payout networks or even collaborate with incumbents to handle certain corridors (e.g., use Juppay’s crypto rail for a backend settlement while another brand fronts the customer side).
- COVID-19 Aftermath: The pandemic showed that digital remittances can outperform traditional in resilience. As a result, both senders and receivers who had to try digital methods out of necessity have continued using them out of convenience. This likely permanent shift benefits platforms like Juppay. Furthermore, remote work boomed, adding more cross-border salary flows that behave like remittances, which is a new segment of growth.
5. Project Model
Jupay’s business model is built on transaction-based revenue, with the JUP token economy adding a unique twist to revenue collection and user engagement. The model is designed to generate revenue from day-to-day platform activity while incentivizing users to hold and use the JUP token. Key revenue streams and elements of the business model include:
- Transaction Fees (Paid in JUP) – Every transfer or conversion on Jupay incurs a small fee, charged in JUP. For example, a cross-border payment might have a fee of ~1% of the transfer amount (exact fee structure could vary by corridor or be a flat small amount for certain transactions). Instead of taking this fee in fiat, Jupay deducts the equivalent value in JUP tokens from the user. This serves two purposes: it generates revenue (Jupay ultimately can sell those collected JUP on the market or use them) and it creates continuous demand for the JUP token. Users either need to hold a balance of JUP or have some of their incoming funds converted to JUP to cover fees. Over time, as volume grows, even micro-fees from millions of transactions translate into significant revenue. Example: Alice sends $500 to Bob – a 1% fee means $5 worth of JUP is charged (which might be, say, 50 JUP tokens). Those 50 JUP go to Jupay’s revenue pool.
- Foreign Exchange (FX) Conversion Spread – Whenever Jupay converts one currency to another (fiat to crypto or crypto to fiat), it can earn a small spread on the exchange rate. Traditional forex brokers or remittance firms often bake a margin (e.g., 0.5%) on top of mid-market rates. Jupay intends to offer very competitive rates, but even a tiny spread (0.2-0.5%) on large volumes can be a revenue source. For instance, when Alice’s $500 is converted to USDC or JUP, Jupay might give a rate that results in slightly less than $500 worth of crypto (the difference being a small profit margin for Jupay). This is kept transparent to users (they can see exchange rates) and will be far tighter than the 3-5% hidden spreads that banks often charge. Similarly, when Bob’s USDC is converted to NGN via the P2P marketplace, if Jupay facilitates that conversion (perhaps by maintaining an order book or acting as one side of the trade for liquidity), a small spread or fee can be earned.
- P2P Marketplace Commission – The in-app marketplace connects buyers and sellers of crypto for fiat. Jupay can charge a marketplace fee for these trades. This could be structured as a percentage of the trade amount (e.g., 0.5% from the taker side of the trade) or a small flat fee in JUP. Because these trades are essentially the cash-out and cash-in mechanism, users might be willing to pay a bit for the convenience and escrow protection. For example, Bob’s sale of 500 USDC for NGN might incur a 0.5% fee taken in JUP automatically. Marketplace fees, like transfer fees, drive JUP token usage as well.
- Withdrawal/Deposit Fees – In cases where users deposit or withdraw funds via certain methods, there might be nominal fees. For instance, adding funds via credit card might incur a processing fee, or withdrawing to a bank in a rare currency might have a fee. Jupay will aim to minimize these by partnering with efficient payment processors, but any remaining cost could be passed to the user with a small markup. Again, these could be taken in fiat or converted to JUP.
- Premium Services – In the future, Jupay could introduce premium account tiers or subscription plans (for example, a “Jupay Pro” with higher limits, or instant conversions guaranteed, etc.) for a monthly fee in JUP. Users paying this subscription could get perks like reduced transaction fees, a higher level of customer support, or reward boosts. This would generate recurring revenue and further lock in token utility.
- Interest on Float – Jupay will hold some float in fiat and crypto to manage liquidity (especially if it pre-funds some transactions or holds user balances before conversion). These balances could potentially earn interest. For fiat, segregated client funds might be kept in interest-bearing accounts or low-risk money market funds. For crypto, stablecoins on certain networks can earn yield through DeFi or institutional lending. Any interest earned on the float is an additional revenue line (though risk management is key; Juppay would prioritize safety of funds over chasing yield).
- Interchange & Ancillary (Future) – If Jupay introduces a debit card linked to the user’s balance (allowing them to spend their crypto/funds via a card), interchange fees from card spending could come into play. Additionally, services like selling branded gift cards, or facilitating bill payments via the app, could each have small fees or commissions.
Jupay’s cost structure includes technology development, compliance (KYC/AML, licensing), customer support, and liquidity management. Many of these are fixed or semi-fixed costs. The above revenue streams, on the other hand, scale with transaction volume. Thus, as user adoption grows, revenues can scale significantly with relatively modest incremental costs, leading to a potentially high-margin business at scale. The reliance on JUP for fees also means that early on, Jupay might accumulate a large amount of JUP tokens from fees. The company can decide to periodically sell some of these tokens for operating revenue (which could put slight sell pressure on the token) or even burn a portion to support token value (see Tokenomics below). Striking the right balance will be part of financial strategy.
By aligning the platform’s success with the token, Jupay creates a flywheel effect: more users and transactions → more JUP demand for fees → potentially higher token value → benefits token holders and allows Jupay (which likely holds reserve tokens) to fund growth → which brings more users. This synergy between the business model and tokenomics is a core strength of Jupay.
