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By Loto Punto: Automated Remmitance Kiosks
Delivers instant stablecoin remittances to unbanked communities in LATAM through Stellar Blockchain and self-service kiosks
Product
Loto Punto is a kiosk for payments and payouts. It works as a gateway for 12 thousand financial services in banking, utility bills, cell phone top ups and digital wallets. Our system is integrated with Digital Identity and Open Banking services using AI, automating physical payments with high standards of security and fraud prevention.
How Loto Punto works with Stellar
Loto Punto kiosks enable easy and affordable self-service transactions in local currency within seconds, providing a fast, easy, and inexpensive way to pay, send and receive money. By integrating Stellar Blockchain with Loto Punto’s micro- service-oriented architecture system, we'll offer a more convenient an inexpensive channel for cross border remittances. This is achieved by converting physical FIAT currency into stable cryptocurrency and vice versa, partnering with relevant Stellar Wallets that provide on-ramp and off-ramp services in each LATAM country. For this matter, we have already an alliance with "Meru Wallet", that is integrated with Moneygram.
In the scope of this current project, we'll leverage our existing capabilities, installed capacity and knowledge of cryptoassets transactions, to On-Ramp fiat to crypto in the Stellar network, enabling fund transfers to Stellar accounts of end users. This new functionality will allow end users (senders) to make cost-effective remittances by converting FIAT currency deposited at Loto Punto kiosks into crypto accounts on the Stellar Network. Recipients can redeem their stablecoin digitally or at chosen Stellar anchor physical locations.
Benefits
Loto Punto offers a streamlined approach to financial services. Our kiosks are installed totally free in various points of sale with loyal customers such as convenient stores, drugstores and gas stations. Unlike traditional payment networks that rely on human agents, Loto Punto operates as an automated version, resulting in 50% lower operating costs. By eliminating the need for human sales agents and fixed space leasing costs,Loto Punto efficiently serves up to 40 locations with just one employee. This not only relieves point-of-sale staff from cash management operations and customer service but also provides a clear cost advantage over competitors that require a human interface for end-user transactions
In aggregate, by integrating Stellar and its Anchors, Loto Punto will serve as a convenient one-stop shop for unbanked users in LATAM.
Maybe in the future, but not in this submission
$76.0K
The successful installation and integration of three Loto Punto kiosks in independent local drugstores will result in key outputs, including seamless functionality of self-service remittance transactions, high customer satisfaction, and increased usage by an aproximate of 2500 venezuelan migrants. These outputs will have significant impacts, such as providing unbanked individuals with easy access to low-cost remittance services, boosting the financial inclusion of Venezuelan migrants and enhancing the overall customer experience in the drugstores. Additionally, the project will demonstrate the operational efficiency and cost-effectiveness of the Loto Punto kiosks, potentially driving further adoption and scalability in additional locations.
For Stellar Corporation, this initiative will showcase the practical application of Stellar Blockchain technology in real-world financial services, increasing brand recognition and fostering trust in its blockchain solutions. The project will also expand Stellar’s user base and transactional volume in LATAM, contributing to the broader adoption of Stellar’s ecosystem.
Go-To-Market Plan for the Remittance Service in Loto Punto Kiosks
1. Objective
Install three Loto Punto kiosks in independent local drugstores, providing Venezuelan migrants with an easy and affordable remittance service through the integration with Stellar Blockchain.
2. Target Audience
· Unbanked Venezuelan migrants located in Colombia, which are customers of independent local drugstores.
3. Kiosk Installation Strategy
· Selection of Locations: Identify and prioritize the three independent local drugstores on our current waiting list, that have recurring venezuelan customers.
· Partnership Agreements: Finalize agreements with selected drugstores, ensuring mutual benefits and clear terms.
· Kiosk Deployment: Install the Loto Punto kiosks in the chosen drugstores, training staff for basic troubleshooting and support.
4. Marketing and Promotion
· Awareness Campaign: Launch an awareness campaign targeting Venezuelan migrants, highlighting the benefits of using Loto Punto kiosks for remittances.
· Promotional Offers: Introduce promotional offers for first-time users, such as fee discounts or small incentives for using the service.
· Partnerships with Community Organizations: Collaborate with local community organizations that support Venezuelan migrants to spread the word and build trust.
5. Monitoring and Evaluation
· Performance Metrics: Track key performance indicators (KPIs) such as the number of transactions, customer satisfaction, and kiosk uptime.
· Customer Feedback: Continuously gather and analyze customer feedback to refine the service and address any issues promptly.
· Impact Assessment: Evaluate the impact of the kiosks on drugstore foot traffic, customer engagement, and overall business performance.
6. Scalability and Expansion
· Pilot Program Review: After the initial pilot phase, review the success and challenges faced during the rollout.
· Expansion Plan: Develop a plan for scaling the deployment of Loto Punto kiosks to additional locations based on the pilot program’s results and customer demand. With each kiosk making $65 daily, our annual revenue will hit $132 million at scale in a network of 5500 Loto Puntos.
In terms of traction, Loto Punto has a achieved a user base, exponential growth and commercial adoption with its current portfolio of financial services. We achieved Product Market Fit with our first kiosk operating. Sales reached an average of COP $20 million per month at 40% exponential growth, acquiring 2,000 paid users by word of mouth and a waitlist of 30 businesses that want Loto Punto. Our validation confirmed that the unbanked in Latin America are willing to pay for convenient access to cash and digital money services.
On blockchain development, we secured a pilot contract with Bogotá District for a Binance-based remittance pilot (see demo at: https://youtu.be/89WppjlWJi4). Additionally, we hold long-term contracts with transaction aggregators, partnering with Colombia's top five banks: Banco de Bogotá, Banco Popular, Banco de Occidente, Banco Davivienda, and Banco AV Villas.
Loto Punto's ongoing development of the remittance service on the Stellar network includes key milestones such as:
Validation of Stellar accounts via QR code through the Horizon API
Local currency to stablecoin quote conversion in real time
Functionality to send PAYMENTS within Stellar accounts through the Horizon API (testnet)
Document and face recognition with AI, using the camera peripherals of the kiosks.
Our company has been invested and accelerated by Techstars Payments Powered by Stellar and Moneygram. Investing in the top 1% of startups worldwide, Techstars grants unparalleled access to industry experts, mentors, and investors who can open doors to valuable opportunities. This seal of approval and credibility for Loto Punto enables us to attract top talent and partners.
Additonally, Loto Punto was featured at Shark Tank Investment show (see: https://youtu.be/mDLuFOeAD9o?si=snt-ACYWTXJX440R) and is considered as one of the most promising startups of Colombia (source: https://www.eltiempo.com/tecnosfera/novedades-tecnologia/loto-punto-loro-y-goelegido-emprendimientos-colombianos-de-51-starter-593470).
Loto Punto extensive experience in developing financial technology, proven by significant traction and rapid growth, has demonstrated an exceptional ability to deliver innovative solutions that meet market needs in the public and private sector. Our track record of successful projects and partnerships, showcase our technical prowess and strong foundation. We are in a position to effectively develop and implement advanced technology for the Stellar blockchain, driving further growth of the community.
For software development activities, the cost per hour is estimated in USD $75. The project timeline is five (5) months in total and has 7 main activities. Additional activities are shown with an aggregate budget.
Main Activities:
1. User Interface (UI) Development (2 people, 134 hours total):
Description: Develop an intuitive and user-friendly UI for the remittances services in the kiosk.
Completion Measurement: Functional UI with seamless navigation and clear instructions.
Estimated Completion Date: 1 month from project start.
Budget Allocation: $10,050 (UI design, development, and testing).
2. Kiosk Firmware Development (2 people, 167 hours total):
Description: Create firmware for the kiosk to handle remittance transactions, security, and communication.
Completion Measurement: Fully operational firmware with error handling and security features.
Estimated Completion Date: 1 month from project start.
Budget Allocation: $12,525 (firmware development and testing).
3. Back End for API Integration (2 people, 217 hours total):
Description: Develop the back end to connect the kiosk with Stellar’s network and Loto Punto system.
Completion Measurement: Successful API integration and data flow in AWS.
Estimated Completion Date: 1 month from project start.
Budget Allocation: $16,275 (back-end development and testing).
1. Testing Environment Setup (2 people, 75 hours total):
Description: Create a controlled environment for testing the remittance service.
Completion Measurement: Functional testing environment with simulated transactions.
Estimated Completion Date: 1 month.
Budget Allocation: $5,625 (testing infrastructure setup).
2. Integration and Testing with the Stellar accounts in Testnet (1 person, 140 hours):
Description: Integrate the remittance service with Stellar’s Testnet, performing comprehensive testing to ensure compatibility and functionality. This includes end-to-end testing with test accounts to verify seamless operations.
Completion Measurement: Successful integration and functionality verified in the Testnet environment.
Estimated Completion Date: 2 months.
Budget Allocation: $10,500 (integration and testing in Testnet).
1. Integration and Testing with the Stellar Mainnet (1 person, 160 hours):
Description: Integrate the remittance service with Stellar’s mainnet, performing comprehensive compliance and functionality testing to ensure seamless operation. This includes end-to-end testing with on-ramp and off-ramp services.
Completion Measurement: Successful integration and full functionality verified.
Estimated Completion Date: 2 months.
Budget Allocation: $12,000 (integration and comprehensive testing).
2. Quality Assurance of the Remittance Service (1 person, 120 hours):
Description: Conduct internally a thorough quality assurance testing for the integration with the Stellar mainnet. This includes validating transaction accuracy, ensuring compliance with Stellar protocols, and performing stress tests to ensure robustness and security of the system.
Completion Measurement: All quality assurance tests passed successfully.
Estimated Completion Date: 2 months.
Budget Allocation: $9,000 (quality assurance testing).
Victor Espinosa (CEO of Loto Punto):
Innovative Leadership: Victor’s successful leadership of Loto Punto demonstrates his ability to implement visionary solutions for the unbanked population. His experience in micropayments automation through a network of kiosks shows his innovative approach to financial technology.
Agile Project Management: With over a decade of experience, Victor excels in structuring, managing, and directing complex projects. His adeptness in agile methodologies ensures the project adapts to evolving circumstances, maximizing efficiency and impact.
Business Development and Partnerships: Victor’s successful negotiations with major banks highlight his strategic business acumen, crucial for securing partnerships necessary for scaling Loto Punto.
Social and Cultural Innovation: His work extends to social and cultural contexts, emphasizing community development and income generation, fostering trust and engagement within the communities served by Loto Punto.
Andrés Posada (Technical Lead of Loto Punto):
Technical Leadership: Andrés’ proven track record in providing technical leadership and guidance ensures project success. His ability to steer development teams toward successful outcomes is invaluable.
Software Project Design: Andrés excels in designing and implementing robust, efficient, and secure software solutions. His expertise in software architecture aligns with both business and technical requirements.
REST Standards: Proficient in RESTful APIs, relational databases, and microservices-based architectures, Andrés ensures that our software solutions are modern and scalable.
Communication and Collaboration: With excellent communication skills, Andrés bridges the gap between business stakeholders and technical teams, articulating complex concepts clearly and concisely.
Together, Victor's strategic vision and innovative approach combined with Andrés' technical expertise and leadership form a robust team capable of addressing the financial challenges in Latin America. Our complementary skills and commitment to best practices ensure that we can drive meaningful change and foster financial inclusion, making us the ideal team to tackle this problem.
Victor Espinosa
No other submissions.