Fi 0 Forex Card- Monetization Project

✈️ Product

Fi offers a 0 Forex Debit Card that can be used for all international payments.

The core value prop of Fi's 0 forex card is easy, breezy 0 forex charge international payments in 150+ currencies across use cases - e-commerce, POS or ATM transactions.

Secondary benefits:

1. Ultimate flexibility - INR conversion to 150+ currencies
2. No credit checks required
3. No predatory charges like inactivity, reloading charges
4. Lowest ATM fee in market
5. Amount of transaction not restricted by credit limit

Typical Product Journey for a user with International Usage Intent

🤑Current Monetisation

Fi currently charges issuance fee, annual fee, and ATM transaction fee for international usage. All of these have conditions at which they can be waived off

80% users who travel internationally, fall within Balance >₹50K bucket, and avail Free Debit Card with 0 Forex Charges.

💲💲Monetisation Lever:

Travel essentials subscription that includes(3 bundles including different elements):

1. Home delivery of notarised bank statement (needed as proof of funds for visa applications)
2. Free replacement card delivered at international location in case of Stolen Card
3. 20% Fi Coins on all international spends
4. 10 Day International Roaming SIM Plan

but first… Is the product ready for Monetization?

🧪Litmus Test

TL;DR: Yes ✅

Retention: Flat Curve ✅

Deeper Engagement: >50% users are Core+Power ✅

Willingness to Pay ✅

🧑🏻‍🦱Who to Charge

Timeframe for below analysis- 2 years

Champions, Potential Loyalists & Loyalists would be the optimum segment to monetise first.

• These users engage more with Fi and have established trust on Fi as their travel card.
• User interviews indicate that apart from cost savings, one of the key things core & power users [high frequency travellers] look for is Convenience. This could prove to be a great value add in that sense

⏳When to Charge?

Step 1: What is the perceived value of the product?

Save time

The core benefit users are deriving is the ability to not worry about and spend their time covering ground on some of the aspects of travel planning for eg, visiting bank branch to get documents signed, buying insurance, SIM card.

This offering provides peace of mind and the ability to auto-tick a few times off the travel planning check-list.

Step 2: Inflection point where PV>PP

[New User]

When a user places the order for the Debit Card, they are in the eye of the storm of the upcoming travel, grappling with the stress of visa applications, to-dos and checklists. This is the right time to nudge the user.

For missed opportunities, the next best avenue is a phygital flow within the physical debit card package.

*Day sequence is indicative, Fi has a good chunk of users who have been Fi users and only order the card much later in their journey, when international payments need arises.

[EXISTING USER]

Avenues to nudge existing users who have already ordered the debit card:

1. When a user purchases flight tickets using Fi card [indicates Intent to Travel]
2. When a user turns international settings on [indicates Intent to Travel]

What to Charge for?

❓Core Value Prop

🤳🏻Action that leads to user experiencing CVP

💸How will we charge users?

💸 What to Charge For?

💱Pricing Model

💰How much to Charge?

Perceived Value

Time saved on documentation, support calls & convenience of avoiding last minute hassles

Perceived Price

Perceived Price of all Elements individually

Perceived value vs Perceived Price for the 3 bundles:

How to Show Pricing

🛍️Pricing Page

Effects used to drive behaviour:

• Middle Option effect
• Slash Pricing effect
• Decoy effect

Eventually, with enough performance data, deprecate least performing one and show only one option to users as a check box. Two seperate plans could still exist if there is a stark difference in conversion rate of two different cohorts.

👉🏻Product Journey :

1. Opt-in checkbox on Debit Card Order Flow
2. Information gathering for fulfilling add-on:

   Sub-product	Requirement	How will we handle?
   Home delivery of notarised bank statement	Confirmation of delivery address	Debit Card delivery address - Checkbox to select same
   	Time range of bank statements needed	Post Card Order
   Replacement Card	Delivery address	Create flow for replacement card in the Debit Card screen
   Fi Coins	NA	NA
   SIM Card	Number of days of travel	Post Card Order

🔬Pricing Experiments

The combined perceived price of the individual elements is

Pricing Experiment to Arrive at Optimum Pricing

👉🏻High level Product Flow (needed to understand metrics to track) :

1. Discovery
2. 1. New User
   2. 1. Debit Card order page shows option to ‘Upgrade for Worry-Free Travel’
      2. Pricing Page options, user selects one
      3. Payment Flow
   3. Existing User
   4. 1. Trigger in the form of communication or in-app banner leads to pricing page
      2. User selects one plan
      3. Payment flow
3. Payment Flow:
4. 1. For users who don’t meet balance criteria and pay ₹199 for card, add Add-On pricing to final amount
   2. Users availing free card, after card order, direct to payment flow for Add-On pricing
5. Post Payment, information gathering for
6. 1. Time range for Bank statements needed

👉🏻Experiments

Experiment 1

Launch at Value Pricing to gather data on right user base to optimise pricing for.

From the purchase data, understand:

1. Conversion pattern among the three

Lets say, data indicates that
- Bundle 2 is the most preferred
- Bundle 3 generates the highest revenue

2. User Profiling of users purchasing each bundle

Lets say, data indicates that users purchasing are Tier 1, Age 28-35, Credit Score >700

3. Pre-purchase app behaviour of the users

Lets say, data indicates that
- Users with ₹50K+ balance & at least one domestic transaction purchase bundle 1 & 2
- Users who have at least ₹100k in past spends purchase Bundle 3

Experiment 2

A/B test of understand Price Elasticity of Bundle 2

1. Objective: Understand price at which Revenue for bundle 2[# of users x Price] is highest
2. User Set(more inclusive than data indicators to get enable min sample size for experiment):
3. 1. Tier 1,
   2. Age 25-35
   3. Credit Score >700
   4. Balance > 50K
   5. At least one domestic transaction
4. Experiment Design:
5. 1. Randomised cohort to get unbiased experiment results
   2. Equal number of users in each cohort
   3. Variants & Pricing:
   4. 1. Control Group: ₹200
      2. Variant A: ₹300
      3. Variant B: ₹500
   5. Metrics to Track:
   6. 1. % of page visitors Opting In
      2. Payment conversion rate
      3. % of people sharing additional information for fulfilling Add-On
6. Conclusion:
7. 1. Conclude to charge price that optimises for Price & Conversion

Experiment 3:

A/B test of understand Price Elasticity of Bundle 3

1. Objective: Understand price at which Revenue for bundle 3[# of users x Price] is highest
2. User Set(more inclusive than data indicators to get enable min sample size for experiment):
3. 1. Users with spends >₹100K
4. Experiment Design:
5. 1. Randomised cohort to get unbiased experiment results
   2. Equal number of users in each cohort
   3. Variants & Pricing:
   4. 1. Control Group: ₹500
      2. Variant A: ₹800
      3. Variant B: ₹1200
   5. Metrics to Track:
   6. 1. % of page visitors Opting In
      2. Payment conversion rate
      3. % of people sharing additional information for fulfilling Add-On
6. Conclusion:
7. 1. Conclude to charge price that optimises for Price & Conversion

System 1 or System 2

Facts:

1. AoV of the bundle purchase (ranging b.w ₹200-1200) < User’s Income
2. 1. ICP earns > 10L per annum
   2. International travel, by its very nature, has a disposable income barrier
3. Purchase is not an irreversible decision
4. Purchase is not a long term decision, but applies only to the time period of the trip.

hence,

First time Purchase - System 1

• Highlight all components within the pack
• Optional links to read more about each component

Second Purchase - System 1

• Since a user is abreast with experience of the pack, a simple CTA to ‘Renew’ would suffice