← Back to Product

OREL Tap Business Plan

The payment backbone of the OREL ecosystem. A professional virtual wallet and QR payment solution designed to process LKR 315M+ in Year 1 transactions across 120+ vending machines and 5 charging stations.

LKR 3.5M
Development Investment
1.2%
Transaction Fee
LKR 315M
Year 1 Volume
10,000+
Active Users Y1

1. Executive Summary

OREL Tap serves as the payment infrastructure layer for the entire OREL Innovation ecosystem. With 120 vending machines and 5 EV charging stations processing payments, we're building a scaled digital wallet that reduces transaction costs while creating a sticky customer experience.

🎯 Strategic Value Proposition

  • Process LKR 315M+ transactions in Year 1
  • Reduce ecosystem payment costs by 60%
  • Build customer lock-in across all OREL services
  • Create unified transaction data platform
  • Generate LKR 3.78M revenue Year 1
  • Enable seamless cross-product payments
  • Foundation for future NFC card rollout
  • Competitive moat through payment integration

💡 Key Insight

At scale (120 machines + 5 stations), OREL Tap saves the ecosystem LKR 5.6M annually in payment processing fees while generating its own revenue stream. This dual value makes it a critical infrastructure investment, not just a product.

📊 Transaction Volume Growth Projection

LKR 750M LKR 562M LKR 375M LKR 187M LKR 0
285M
750M
OREL Tap 75%
Year 1 Year 2

Ecosystem Volume: LKR 285M → LKR 750M (163% growth) • OREL Tap Adoption: 60% → 75%

2. Product Features

MVP Features (Month 1-3)

Feature Description Technical Complexity
User Registration Phone number + OTP verification, KYC lite Medium
Wallet Top-Up Bank card via PayHere integration Medium
QR Payment Scan merchant QR, instant deduction High
Transaction History Real-time view of all transactions with filters Low
Vending Integration Direct API integration with vending machines High
Charging Integration Pay for EV charging via app Medium
Push Notifications Transaction alerts, low balance warnings Low
Balance Dashboard Real-time wallet balance, spending analytics Medium

Phase 2 Features (Month 6-12)

User Features

  • P2P money transfers
  • NFC Card issuance & management
  • Loyalty points & rewards program
  • Bill payments integration
  • Auto top-up when balance low

Merchant Features

  • Merchant settlement dashboard
  • Sales analytics & reporting
  • Multi-location management
  • QR code generator for stores
  • Refund & dispute management

3. Technical Architecture

System Components

Technology Stack

  • Mobile App: React Native (iOS + Android)
  • Backend: Node.js + Express, PostgreSQL database
  • Payment Gateway: PayHere API integration
  • QR System: Custom QR generation + validation
  • Hosting: AWS (EC2, RDS, S3) or DigitalOcean
  • Security: End-to-end encryption, PCI-DSS compliance

Payment Flow Architecture

How Money Flows

Step 1: User tops up wallet Bank Card → PayHere (3%) → OREL Tap Wallet
Step 2: User pays at vending machine Wallet → Scan QR → Instant deduction (1.2% fee)
Step 3: Merchant receives payment OREL Tap → Merchant wallet (same day)
Step 4: Merchant withdraws to bank Merchant wallet → Bank account (T+1 day, LKR 50 fee)

PayHere Integration Breakdown

Function Handled By Cost/Fee
Bank card processing PayHere 2.8% per top-up
Regulatory compliance (CBSL) PayHere (licensed entity) Included
Fraud detection & chargebacks PayHere Included
Bank settlement PayHere Included
Wallet management & QR payments OREL (In-house) 1.2% to OREL
Vending/Charging integration OREL (In-house) No extra cost
Transaction analytics OREL (In-house) No extra cost

Why Partner with PayHere? Building a fully licensed payment processor requires CBSL approval (6-12 months) and significant compliance overhead. PayHere handles the regulated parts (bank cards, compliance) while OREL owns the customer relationship and ecosystem integration.

4. Development & Operating Costs

Initial Development Investment

Component Timeline Cost (LKR) Notes
Mobile App Development 8 weeks 1,500,000 Professional React Native, iOS + Android
Backend API & Wallet System 6 weeks 1,000,000 Node.js, PostgreSQL, secure wallet logic
PayHere Integration 3 weeks 300,000 Payment gateway, webhooks, testing
QR System Development 2 weeks 200,000 QR generation, scanning, validation
Vending Machine Integration 3 weeks 250,000 API integration with vending backend
Charging Station Integration 2 weeks 150,000 EV charging payment integration
Security & Compliance 2 weeks 200,000 Encryption, penetration testing, audits
UI/UX Design 3 weeks 300,000 Professional app design, user testing
Testing & QA 3 weeks 200,000 Comprehensive testing, bug fixes
Marketing & Launch - 200,000 App store assets, launch campaign
TOTAL DEVELOPMENT INVESTMENT 3,500,000 -

Monthly Operating Costs

Item Monthly Cost (LKR) Annual Cost (LKR)
Cloud Hosting (AWS) 35,000 420,000
Database (managed PostgreSQL) 25,000 300,000
SMS/OTP Services 20,000 240,000
PayHere monthly fee 10,000 120,000
App Store fees (Apple + Google) 8,000 96,000
Security monitoring & backups 15,000 180,000
Customer support tools 7,000 84,000
Total Monthly Operating Cost 120,000 1,440,000

5. Revenue Model & Projections

Revenue Streams

Primary Revenue (Year 1)

  • Transaction fee: 1.2% on ecosystem payments
  • Merchant withdrawal fee: LKR 50 per withdrawal
  • Target: 60% of ecosystem volume via OREL Tap

Future Revenue (Year 2+)

  • External merchant processing: 1.8%
  • NFC card issuance: LKR 500/card
  • Premium merchant analytics: LKR 2,000/month
  • P2P transfer fees: LKR 10 per transfer

Year 1 Transaction Volume Breakdown

📊 Ecosystem Payment Volume

40 Own-Operated Vending Machines LKR 126,000,000
80 Merchant Vending Machines (avg 6 months) LKR 134,400,000
5 EV Charging Stations LKR 16,200,000
External Merchants (10 by year-end) LKR 8,400,000
Total Transaction Volume LKR 285,000,000
OREL Tap adoption rate (60% of volume) LKR 171,000,000
Revenue at 1.2% fee LKR 2,052,000

Ecosystem Cost Savings Analysis

💰 Why OREL Tap Saves Money

Payments via OREL Tap (60%) LKR 171,000,000
If processed via PayHere (2.8%) -LKR 4,788,000
Actually charged via OREL Tap (1.2%) -LKR 2,052,000
Annual Ecosystem Savings LKR 2,736,000

Year 1 Profitability

Revenue/Cost Item Amount (LKR)
Transaction Fee Revenue (1.2%) 2,052,000
Withdrawal Fees (avg 150 withdrawals/month) 90,000
NFC Card Issuance (500 cards @ LKR 500) 250,000
Total Revenue 2,392,000
Development Cost (amortized) -3,500,000
Operating Costs (12 months) -1,440,000
Net Profit/Loss (Year 1) -2,548,000
+ Ecosystem Savings +2,736,000
Net Value Created +188,000

Year 2 Projections

Metric Year 2
Transaction Volume LKR 750,000,000
OREL Tap Adoption 75% (LKR 562.5M)
Transaction Revenue (1.2%) LKR 6,750,000
Withdrawal Fees LKR 240,000
NFC Cards (2,000 issued) LKR 1,000,000
External Merchant Processing LKR 900,000
Total Year 2 Revenue LKR 8,890,000
Operating Costs -LKR 2,160,000
Development (Phase 2 features) -LKR 1,000,000
Year 2 Net Profit LKR 5,730,000

📊 Monthly Cashflow Visualization (Year 1)

Track the development investment and gradual revenue ramp-up month-by-month:

+1.5M +1M +500K 0 -500K -1M -1.5M -2M -2.5M -3M -3.5M
BREAK-EVEN
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
Development & Initial Costs
Positive Revenue
Cumulative Position
Months 1-3 (Dev)
-2.9M
Platform development
Month 10 (Break-even)
+20K
First profitable month
Month 12 (Year End)
-2.4M
Cumulative (net loss)

💡 Strategic Note: Year 1 shows a net loss of LKR 2.5M, but when combined with ecosystem savings of LKR 2.7M, OREL Tap creates positive value from day one. Year 2 becomes significantly profitable at LKR 5.7M+.

6. 🧮 Interactive Revenue Calculator

Adjust transaction volume and adoption rate to see impact on profitability:

OREL Tap Revenue Calculator

📈 Results

Volume via OREL Tap: LKR 171M
Transaction Revenue: LKR 2.05M
Ecosystem Savings (vs 2.8%): LKR 2.74M
Total Value Created: LKR 4.79M

7. User Acquisition Strategy

🚀 Growth Channels

  • Vending Machine Users: QR code stickers on 120 machines with "Pay faster with OREL Tap" messaging
  • EV Charging Users: 10% discount for OREL Tap payments at charging stations
  • Merchant Networks: 80 merchants promote to their customers
  • Referral Program: LKR 200 credit for referrer + referee
  • Launch Promotion: First 1,000 users get LKR 100 free credit
  • Social Media: Organic content showcasing convenience

User Growth Targets

Timeline Active Users Monthly Transactions Avg. Transaction Value
Month 3 (Launch) 1,200 4,800 LKR 250
Month 6 4,500 18,000 LKR 260
Month 12 10,000 50,000 LKR 280
Year 2 End 28,000 180,000 LKR 300

8. Financial Summary

💰 Investment Overview

Initial Development Investment LKR 3,500,000
Year 1 Transaction Volume LKR 285,000,000
Year 1 Revenue LKR 2,392,000
Year 1 Ecosystem Savings LKR 2,736,000
Year 1 Net Value Created LKR +188,000
Year 2 Net Profit LKR 5,730,000
Payback Period 18 Months

Success Factors

Launch Targets (Month 3)

  • 1,200 registered users
  • 40% of vending sales via Tap
  • App rating ≥ 4.2 stars
  • Zero security incidents

Year 1 Targets

  • 10,000+ active users
  • 60% ecosystem adoption
  • LKR 171M processed
  • 10 external merchants onboarded

Strategic Recommendation: OREL Tap should be viewed as critical infrastructure, not a standalone profit center. Its value comes from reducing ecosystem costs (LKR 2.7M saved Year 1) and creating customer stickiness across all OREL products. Direct profitability becomes significant in Year 2 (LKR 5.7M+).