Rego Payment Architectures, Inc. was incorporated in Delaware on February 11,
2008 under the name Chimera International Group, Inc. On April 4, 2008, we amended
our certificate of incorporation and changed our name to Moggle, Inc. On August
22, 2011, we filed a Certificate of Ownership with the Secretary of State of
Delaware, pursuant to which the Company’s newly-formed wholly-owned subsidiary,
Virtual Piggy Incorporated was merged into and with the Company (the “Merger”).
In connection with the Merger and in accordance with Section 253 of the Delaware
General Corporation Law, the name of the Company was changed from “Moggle,
Inc.” to “Virtual Piggy, Inc.” On February 28, 2017, we amended
our certificate of incorporation and changed our name to Rego Payment Architectures,
Inc. Our principal offices are located at 18327 Gridley Road, Suite K Cerritos,
CA 90703 and our telephone number is (561) 220-0408.
We are a technology company that will deliver an online and mobile payment
platform solution for the family. Our system allows parents and their children
to manage, allocate funds and track their expenditures, savings and charitable
giving on both a mobile device and online through our web portal. Our system
is designed to allow a minor to transact both online and in traditional brick
and mortar retail outlets using the telephone handset as a payment device. The
new payment platform automatically monitors regulatory compliance in real-time
for all transactions; including protection of vendors from unintended regulatory
infractions. In addition utilizing the same architecture we allow individual
parents to create a contract with each child that sets the rules and parameters
of how the child may use the mobile payment system with as much or as little
parental oversight as the parent determines is necessary. In addition, we are
including specialized technology that increases and improves the security of
the system and protects the user’s identity while in use.
COPPA applies not only to websites and mobile apps. It can apply to a growing
list of connected devices that is included in the Internet of Things. Some of
these include toys and products that could collect personal information, such
as voice recordings or geolocation information.
Management believes that building on its COPPA advantage that the future of
Rego Payment Architectures, Inc. will be based on the foundational architecture
of the system that will allow its use across multiple financial markets where
secure controlled payments are needed. For the under seventeen years of age
market, the company will use its OINK. Com brand. The Company will license in
each alternative field of use the ability for its partners, distributors and/
or value added resellers to private label each of the alternative markets. These
partners will deploy, customize and support each implementation under their
own label, but with acknowledgement of the Company’s proprietary intellectual
assets as the base technology. Management believes this approach will enable
the Company to reduce expenses while broadening its reach.
Revenues generated from this system will come from multiple sources depending
on the level of service and facilities requested by the parent. There will be
levels of subscription revenue paid monthly, service fees, transaction fees
and in some cases revenue sharing with banking and distribution partners.
In addition, the team is analyzing specific components of our technology for
individual monetization as well as exploring opportunities in the Business to
Business (“B2B”) realm. The new architecture lends itself to provide
closed network capability that allow B2B transactions outside of the traditional
payment processing interchange services. This reduces the cost of transacting
between businesses. Businesses that join the B2B will be able to perform instant
settlements of transactions at lower fees than traditional services.
Currently, our partner profile includes established brands with large family-focused
account bases — including banks, telecommunication companies, faith-based
organizations, media distributors, mobile device Original Equipment Manufacturers
(“OEMs”), and merchants.
OINK partners will leverage our platform to:
Buy vs. Build: Partners can license for their specific market or field of use
a safe, compliant system, instead of building one on their own.
Safety & Security: Partners can safely engage a younger consumer segment
and their families with a new family friendly peer to peer payments approach.
Vendors will be explicitly protected from non-compliant transactions and the
underlying technology protects the privacy of the user.
Youth Financial Literacy: Partners can expand their brand story around empowerment
and education of youth financial literacy while engaging their ‘future
customers’ with Gen Z, a digital native population of post-millennial
youth.
The OINK mobile payment platform and associated digital wallet technology is
designed to enable our partners to engage families with Gen Z through the leading
money management, transactional and financial literacy platform that enables
young people to make smart decisions about the things they value in life —
including their money, their time, their ideas and their connections. The new
platform will enable a new way for individual users to own and monetize their
purchasing behavior that is currently unavailable to them.
In addition, we are analyzing specific components of our technology for individual
monetization as well as exploring opportunities in the Business to Business
(“B2B”) realm.
Other markets for potential licensed applications are:
Government social services payments where control over how benefits allowances
are used is required. This is particularly necessary in some European countries
where social benefits are not being used as intended by the government or where
benefits are subject to fraud.
Closed network consumer to business (C2B) and business to business (B2B). An
example is school lunch programs where the consumer can make direct mobile payments
to the provider’s point of sale terminal (POS) without the need to traverse
the traditional merchant payment system. This reduces the cost per transaction
for the vendor and provides instant non-repudiated settlement. Many school lunch
programs are now provided by large catering companies. This is particularly
valuable as credit card fees, transaction fees and service fees can exceed 3%
in overhead costs per transaction dependent on the negotiated rate. Removing
this overhead can have significant positive financial impact on profitably.
It also allows the closed network to own its own behavioral use data thus obviating
the need to pay a third party for the same data.
Our ability to generate and grow revenue is affected by consumer spending patterns,
merchant and consumer adoption of digital payment methods. We are relying on
the the growth of mobile devices and the applications that will be used by merchants
and consumers on those devices, and the transition from cash and checks to digital
forms of payment, including cryptocurrencies. Our strategy to drive revenue
in our business includes the following:
Utilize our COPPA compliant platform to capitalize on mobile device applications
License our technology for use with compatible technologies focusing on digital
forms of payment
Utilize the blockchain component of the platform in conjunction with cryptocurrencies
As of the date of this report, we have not generated significant revenue. Our
previous revenues were generated by taking a small percentage of every transaction
from an online merchant. Until now this was our only revenue source. As we proceed
through 2018, we expect to generate additional revenue streams by generating
licensing fees from our co-branding partners.
We will seek to derive revenues from:
Private labeling licenses for: particular phones, telecommunication vendors,
distributors, and value added resellers (VAR).
User Subscription fees based on premium services.
Transaction and processing fees for both closed and open network transactions.
Special services fees for ad hoc special requests.
Data analytics sales – using algorithms to analyze use data for sale to
data brokers (meta data).
Advertising revenue – for context based push messaging to subscribers
Shared transaction revenue or rebates from banking partners
%
1.68%