DigitalX is a blockchain-based software solutions company disrupting the payments industry. Its secure and cost-effective international mobile money application, AirPocket, is designed to be the premier peer-to-peer product in the money transfer space. AirPocket is currently in its beta testing phase and is expected to launch in 2Q16. The Company currently earns revenue from DigitalX Direct, a private, real-time Bitcoin liquidity platform for institutional investors and large commercial operators.

DigitalX’s international money transfer product, AirPocket, has the potential to disrupt the payments industry. Building the platform on blockchain technology gives the Company numerous advantages over incumbent providers, including greater levels of security and a more cost-effective solution (all users in a Phase 2 beta trial found AirPocket's money transfer fees “lower” and “competitive”). AirPocket is similar to a product such as Uber in that it combines a very user-friendly interface (about 85% of users thought it was easier to receive money through AirPocket than through traditional money transfer companies) and that it allows any individual or brick and mortar store to become an AirAgent (this is enabled by the security provided by the blockchain). In a recent Phase 2 beta trial of AirPocket, nearly 80% of users stated that they would definitely use AirPocket over other services if the app was available today and the rest of the users said that they would consider using AirPocket in the future. Incumbent, high-tech competitors such as PayPal (PYPL) trade at high P/S (5.1x) and P/E (38.6x) multiples, providing an indication of the high valuations that may be applied to DCC.

• AirPocket is built on blockchain technology, giving AirPocket higher security and lower operating costs
  • AirPocket’s low fees are, on average, less than half of incumbent providers (incumbent fees between 6%-21%)
  • AirPocket is licensed for its current activities and is independently securing U.S. state money transmission service licenses
  • The application has been highly commended in full-scale security testing by Security Innovation


• The size of the global remittance market was $583 billion in 2014 (source: World Bank Remittance Inflows April 2015 data)
  • AirPocket’s initial launch locations (Latin America, Caribbean, and the Asian market) represent a market opportunity of $384 billion
  • 54% of foreign-born Hispanics send money from the U.S. to their home countries
  • Further potential for expansion in India and China


• An early commercialization deal (with a large Latin American telco) gives DCC access to 100 million users
  • In its deal with the large Latin America telco, DCC will receive an 11% gross margin on transfers of $2-$70


• $18.36 million in revenue in 1HFY16
  • The DigitalX Direct platform earned $9 million in revenue in 1HFY16, helping to generate a positive cash flow half for the company.
  • Recent Bitcoin price increases should improve results in 3QFY16

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