Bank Business Model Calculator

Interactive 5-year financial projection tool. Calculate ROI, revenue, costs, and scaling benefits for Account-to-Account payment adoption.

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Executive Dashboard - 5-Year Summary Current Scenario: Moderate

Total 5-Year Benefit
€0M
Year 5 Annual Benefit
€0M
5-Year ROI
0%
Year 5 Adoption
0%
Input Parameters
All parameter cells are editable. Hover over thei icons for detailed explanations of each parameter.
Bank Profile
Parameter Value
Bank Name
i Bank Name Your bank's name for identification in the model.
Total Retail Customers
i Total Retail Customers Total number of retail banking customers (individuals, not businesses).
Example: DSK Bank ~1-1.2M, FIB ~350-450K
Active Digital Banking Users (%)
i Active Digital Banking Users % of customers who regularly use mobile banking.
EU average: 50-80%, Bulgaria trending toward higher end
Annual Card Transactions
i Annual Card Transactions Total number of card transactions (debit + credit) your bank processes annually.
Typical Tier 1: 50M-80M transactions/year
Average Card Transaction Value (EUR)
i Average Card Transaction Value Average EUR amount per card transaction.
Bulgarian market avg: €45-65 per transaction
Total Annual Cash Transactions
i Total Cash Transactions Total number of cash payment transactions your bank's customers make annually.
Bulgaria market: ~585M cash transactions/year. For 1M customer bank (19% market share): ~112M cash transactions. Calculate from: customers × market cash volume / total banked population.
Average Cash Transaction Value (EUR)
i Average Cash Transaction Value Average EUR amount per cash transaction. Typically lower than card transactions.
Estimated Bulgaria: €25-30 per transaction (smaller purchases tend to be cash)
Current Card Processing Costs (Annual)
Cost Component Annual Cost (EUR)
Visa/Mastercard Network Licenses
i Network Licenses (FIXED COST) Annual membership fees paid to Visa/Mastercard for network access. Fixed cost regardless of transaction volume.
Include: Base membership, annual participation fees. Typical range: €450K-1.9M. Does NOT reduce with lower volume.
Assessment & Scheme Fees
i Assessment & Scheme Fees Volume-based fees charged by card networks (typically 0.13-0.15% of transaction volume).
Include: Assessment fees, network brand fees. These increased ~30% from 2019-2024
PCI-DSS Compliance
i PCI-DSS Compliance (FIXED COST) Annual costs for Payment Card Industry Data Security Standard compliance. This is a FIXED cost - even with 10 card transactions/year, full compliance is mandatory.
Include: QSA audits (€35K-200K), quarterly scans, penetration testing, infrastructure upgrades, staff training. Typical: €150K-1M. Does NOT reduce with lower transaction volume.
Fraud Prevention Systems
i Fraud Prevention Systems (FIXED COST) Annual costs for fraud detection and prevention technology. Infrastructure must be maintained regardless of volume.
Include: Fraud detection platforms (€200K-1M), AI/ML tools, transaction monitoring, 3D Secure, dedicated fraud team salaries. Typical: €850K-4.6M. Does NOT reduce with lower volume.
Card Fraud Rate (%)
i Card Fraud Rate Fraud losses as % of total card transaction volume.
Bulgaria: 0.076% (highest in EU), EU average: 0.025-0.035%. Use your actual fraud rate.
Chargeback Processing Costs
i Chargeback Processing Costs OPERATIONAL costs only: Staff salaries, dispute management software, investigation costs.
DO NOT include: Network chargeback fees (those are variable), merchant losses, or fraud amounts. Just your internal overhead. Typical: €1M-5M for Tier 1 bank
Terminal Subsidies
i Terminal Subsidies Annual cost of subsidizing POS terminals for merchants.
Include: Hardware subsidies, replacement costs, leasing costs you bear. Typical: €100-300 per terminal × number of merchants served
Card Processing Transaction Fees
i Card Processing Transaction Fees Per-transaction costs paid to card networks for authorization, clearing, and settlement.
Include: Authorization fees (€0.01-0.05/txn), clearing fees, settlement fees. Typical: €2.75M-8.1M for 50-80M transactions
payware Network Cost
Parameter Value
One-Time Integration Cost (EUR)
i payware Integration Cost One-time cost to integrate with payware network (Year 1 only).
Include: API integration, mobile app updates, testing, certification. Typical: €30K-60K
Annual Network Fee (EUR)
i payware Annual Network Fee Yearly participation fee paid to payware for network access.
Typical range: €100K-300K depending on bank size and volume
Platform Service Support Fee (EUR / year)
i Platform Service Support Fee Annual support and service fee (Section C). Billed in advance. Covers account management, priority SLA, incident response.
Industry standard for premium support on fintech platforms: €10K-€50K/year. Default €20K reflects typical mid-market pricing.
Year 1 Network Fee Discount (%)
i payware Year 1 Discount Percentage discount on network fee for the first year (promotional offer).
Example: 50% = first year fee is €100K instead of €200K. 100% = free first year.
Per-Transaction Cost (EUR)
i Per-Transaction Cost Cost per A2A transaction for processing and infrastructure.
Typical: €0.01-0.03 per transaction
A2A Revenue Model (Merchant & Payer Fees)
Parameter Value
Merchant Fee — Variable (% of txn value)
i Merchant Fee — Variable Fee charged to merchants as % of transaction value (D.1 Variable Fee). Bank keeps the remainder after paywareShare.
Standard: 0.5% (vs 2-3% for cards). Adjustable for market positioning: 0.3-1.0%
Merchant Fee — Fixed (EUR per txn)
i Fixed Fee per Transaction Fixed EUR amount charged to the merchant on every A2A transaction (D.1 Fixed Fee). Bank keeps the remainder after paywareShare.
Often zero for open-banking A2A; some schemes charge €0.02-€0.10 per txn to cover irrevocability guarantees.
payware Revenue Share (%)
i payware Revenue Share (Bank Cost) Percentage of merchant fee that payware takes. Bank keeps the remainder.
Standard: 50-60% to payware, 40-50% to bank. This is a cost from the bank's perspective.
Payer Fee Type
i Payer Fee Type Whether the PI charges the payer (end user) a fee for each A2A transaction, and if so, whether it's a fixed amount per transaction or a percentage of transaction value.
Most European banks do not charge the payer (Not applicable). Some merchant-facing models charge a small fixed fee (€0.10-€0.50).
Payer Fee Amount
i Payer Fee Amount Amount charged to the payer per transaction. Interpreted as EUR if 'Fixed' type is selected, or % of transaction value if 'Percent'.
€0.20 per transaction (fixed), or 0.5% (percent). Default 0.
payware Payer Fee Share (%)
i payware Payer Fee Share payware's share of each Payer Fee collected by the PI. Formula: payware Payer Fee Share = Payer Fee collected × Payer Fee Share %
Default 0%. Typical 25-50% depending on negotiated terms.
A2A Clearing & Risk
Parameter Value
BORICA Inter-Bank Clearing Cost (EUR/txn)
i BORICA Clearing Cost Per-transaction cost paid to BORICA for inter-bank instant payment clearing (BLINK/BISERA). Only applies to inter-bank transactions, NOT closed-loop.
ECB TIPS benchmark: €0.002/txn. BORICA likely similar. Closed-loop transactions avoid this cost entirely.
Closed-Loop Transfer Cost (EUR/txn)
i Closed-Loop Transfer Cost Internal transfer cost for closed-loop A2A transactions (both payer and payee are bank customers). Much lower than inter-bank clearing.
Internal transfers have minimal infrastructure cost. Typical: €0.0001-€0.001/txn. This is a key advantage of closed-loop transactions.
A2A Fraud Rate (%)
i A2A Fraud Rate Expected fraud rate with bank-level authentication (Strong Customer Authentication).
Typical: 0.001-0.010% (90%+ lower than cards due to biometric auth, no card number exposure)
Transaction Source Mix

A2A transactions come from 2 sources. Percentages represent what portion of each baseline (cards and cash) will adopt A2A payments.

Parameter Value
Card Migration (%)
i Card Migration % % of A2A transactions that previously were card payments. These represent cannibalized card volume.
Impact: Lost card revenue BUT saved card costs (usually net positive). Conservative: 30% (less cannibalization), Moderate: 35%, Aggressive: 40% (more willing to disrupt card business)
Cash Digitization (%)
i Cash Digitization % % of A2A transactions that previously were cash payments. Pure new digital revenue for the bank.
Impact: Pure revenue gain, no card cannibalization. Bulgaria still has significant cash usage. Typical: 40-50%
Bank's Card Revenue Share (%)
i Bank's Actual Revenue from Card Transactions The percentage of transaction value YOUR BANK actually receives from card transactions. This depends on your bank's role(s).
<strong>Card Issuer only:</strong> Interchange = 0.2% (debit) to 0.3% (credit), EU regulated. Blended ~0.25%.<br><strong>Merchant Acquirer only:</strong> Acquiring margin ~0.3-0.4%.<br><strong>Both roles (on-us):</strong> Interchange + Acquiring = 0.5-0.7%.<br><strong>Note:</strong> Merchants pay 1.5-2.5% total MDR, but most goes to networks/processors, not the issuer!
Adoption Assumptions (Year 1-5)
Metric Year 1 Year 2 Year 3 Year 4 Year 5
Customer Adoption Rate (%)
i Customer Adoption Rate % of your customers who actively use A2A payments each year.
Conservative: 10-30%, Moderate: 15-50%, Aggressive: 25-75%. BLINK achieved 20% in Bulgaria already.
Closed-Loop % of A2A Transactions
i Closed-Loop % (Network Effect) % of A2A transactions where BOTH payer and merchant bank at your bank. Grows exponentially due to network effects: as more customers/merchants adopt, probability both parties are your customers increases geometrically.
<strong>Key advantage:</strong> Closed-loop saves BORICA clearing costs (€0.002/txn), making these transactions more profitable. Conservative: 5%→33%, Moderate: 8%→58%, Aggressive: 10%→72%.
Customer & Business Impact
Parameter Value
Profit per Customer (EUR/year)
i Profit per Customer Average annual profit your bank earns from one retail customer.
EU average 2024: €238/year (up 50% from €159 in 2019). Bulgaria: €200-350 estimated
Churn Reduction from Engagement (%)
i Churn Reduction How much churn improves for digitally engaged customers (absolute %).
Research shows: Digitally engaged users are 2.7x more likely to stay. Typical: 2-5% absolute improvement (18% → 15%)
Cross-Sell Rate - Inactive (%)
i Cross-Sell Rate - Inactive % of inactive/less engaged customers who buy additional products annually (baseline).
Typical: 3-8% per year
Cross-Sell Rate - Active A2A Users (%)
i Cross-Sell Rate - Active % of active A2A users who buy additional products annually (enhanced rate).
Research: Engaged customers buy 10% more products. Typical: 15-25% per year
Revenue per Product (EUR/year)
i Revenue per Product Average annual revenue earned from one additional product sold.
Credit card: €80-150, Personal loan: €200-500, Investment: €50-200, Insurance: €100-300. Blended avg: €100-200
% A2A Users Becoming Active
i Conversion to Active % of A2A users who become highly engaged app users (login frequently, use multiple features).
Typical: 60-85%. Users who make payments in-app tend to engage more overall.

5-Year Financial Projection

Metric Year 1 Year 2 Year 3 Year 4 Year 5 Total
CUSTOMER ADOPTION
Active A2A Users
i Formula: Total Customers × Digital Users % × Adoption Rate %
Inputs used: Total Retail Customers, Active Digital Banking Users %, Year Adoption Rate
0 0 0 0 0 -
A2A Transactions (Annual)
i Formula: Active Users × Transactions per User × 12 months
Inputs used: Active A2A Users (calculated above), Transactions per User/Month
0 0 0 0 0 0
A2A REVENUE
Inter-Bank Revenue
i Formula: Inter-Bank Txns × Avg Txn Value × Merchant Fee % × (100% - payware Share %)
Inter-Bank Txns = A2A Transactions × (100% - Closed-Loop %). Bank keeps remainder after payware takes its share. Inputs: Merchant Fee %, payware Revenue Share %
€0 €0 €0 €0 €0 €0
Closed-Loop Revenue
i Formula: Closed-Loop Txns × Avg Txn Value × Merchant Fee % × (100% - payware Share %)
Closed-Loop Txns = A2A Transactions × Closed-Loop %. Bank keeps remainder after payware takes its share. Inputs: Merchant Fee %, payware Revenue Share %, Year Closed-Loop %
€0 €0 €0 €0 €0 €0
Total A2A Revenue
i Formula: Inter-Bank Revenue + Closed-Loop Revenue
Sum of both revenue streams calculated above
€0 €0 €0 €0 €0 €0
A2A COSTS
Total A2A Costs
i Formula (Year 1): Integration Cost + Network Fee × (1 - Year 1 Discount %) + (All Txns × Per-Txn Cost) + (Inter-Bank Txns × BORICA Cost) + (Closed-Loop Txns × Closed-Loop Cost)
<strong>Formula (Year 2-5):</strong> Network Fee + (All Txns × Per-Txn Cost) + (Inter-Bank Txns × BORICA Cost) + (Closed-Loop Txns × Closed-Loop Cost). Note: Inter-bank pays BORICA (€0.002), closed-loop pays internal transfer cost (€0.0005) - closed-loop is cheaper!
€0 €0 €0 €0 €0 €0
Net A2A Margin
i Formula: Total A2A Revenue - Total A2A Costs
Basic profit/loss from operating the A2A network (before scaling benefits and card impact)
€0 €0 €0 €0 €0 €0
SCALING BENEFITS
Fraud Reduction Savings
i Formula: Card Txns Migrated × Avg Txn Value × (Card Fraud % - A2A Fraud %)
Savings only apply to transactions migrated from cards (not cash or new use cases). Inputs: Card Fraud Rate %, A2A Fraud Rate %, Card Migration %
€0 €0 €0 €0 €0 €0
Customer Retention Value
i Formula: Active Users × % Becoming Active × Churn Reduction % × Profit per Customer
Value of reduced customer churn from increased engagement. Inputs: % A2A Users Becoming Active, Churn Reduction %, Profit per Customer
€0 €0 €0 €0 €0 €0
Cross-Sell Uplift Value
i Formula: Active Users × % Becoming Active × (Active Cross-Sell % - Inactive Cross-Sell %) × Revenue per Product
Additional revenue from selling more products to engaged customers. Inputs: Cross-Sell Rate - Inactive %, Cross-Sell Rate - Active %, Revenue per Product
€0 €0 €0 €0 €0 €0
Total Scaling Benefits
i Formula: Fraud Savings + Retention Value + Cross-Sell Value
Sum of all indirect benefits from A2A adoption
€0 €0 €0 €0 €0 €0
CARD MIGRATION IMPACT
Card Transactions Migrated
i Formula: A2A Transactions × Card Migration %
Number of transactions that switched from cards to A2A. Input: Card Migration % (from Transaction Source Mix)
0 0 0 0 0 0
Card Revenue Lost
i Formula: Card Txns Migrated × Avg Txn Value × Bank's Card Revenue Share %
Lost interchange/acquiring revenue from transactions that moved from cards to A2A. Based on bank's actual revenue share (0.2-0.3% interchange, NOT total MDR that merchant pays).
€0 €0 €0 €0 €0 €0
Card Costs Saved
i Formula: (Variable Costs + Semi-Variable Costs) × (Card Txns Migrated / Total Annual Card Txns)
<strong>CRITICAL:</strong> Fixed costs (PCI-DSS €400K, Network Licenses €1.05M, Fraud Systems €2M) do NOT reduce with lower transaction volume - compliance is mandatory regardless. Only variable costs (Scheme Fees, Processing Fees) and semi-variable costs (Chargebacks, Terminals) scale proportionally.
€0 €0 €0 €0 €0 €0
Net Card Impact
i Formula: Card Costs Saved - Card Revenue Lost
Net financial impact from card migration. With realistic interchange rates (0.2-0.3%), this is often slightly negative per transaction, but offset by scaling benefits. Fixed costs (PCI-DSS, licenses) don't reduce with lower volume.
€0 €0 €0 €0 €0 €0
TOTAL NET IMPACT
i Formula: Net A2A Margin + Total Scaling Benefits + Net Card Impact
Complete financial impact combining all revenue, costs, scaling benefits, and card migration effects. Use the toggle above to include/exclude scaling benefits and see pure transactional economics.
€0 €0 €0 €0 €0 €0
Cumulative Net Impact
i Formula: Sum of Total Net Impact from Year 1 through current year
Running total showing accumulated benefit. Year 5 value = Total 5-Year Benefit
€0 €0 €0 €0 €0
i Formula: (Cumulative Year 5 / Total 5-Year Costs) × 100%
Return on Investment: Total benefit divided by total investment over 5 years
ROI: 0%
Note: All defaults are based on research of the Bulgarian banking market. Hover over the i icons for detailed explanations of what each parameter means and what to include/exclude. Customize all values to match your bank's actual data for the most accurate analysis.

Disclaimer: This financial model is for illustrative purposes only. Actual results may vary based on market conditions, execution quality, and various other factors. All assumptions should be validated against your bank's specific circumstances.

payware Bank Business Model - Financial Analysis Report

Bank:
Date:
Scenario:

Executive Summary

Total 5-Year Net Benefit
Year 5 Annual Benefit
5-Year ROI
Total A2A Revenue (5 years)
Total A2A Costs (5 years)

Key Input Parameters

Bank Profile
Total Retail Customers
Active Digital Banking Users (%)
Annual Card Transactions
Total Annual Cash Transactions
Average Card Transaction Value (EUR)
Average Cash Transaction Value (EUR)
Current Card Costs (Annual)
Network Licenses (Fixed)
PCI-DSS Compliance (Fixed)
Scheme Fees (Variable)
Card Processing Fees (Variable)
A2A Network Costs
payware One-Time Integration Cost (EUR)
payware Annual Network Fee (EUR)
Platform Service Support Fee (EUR / year)
payware Year 1 Network Fee Discount (%)
payware Revenue Share (%)
Per-Transaction Cost (EUR/txn)
BORICA Inter-Bank Clearing (EUR/txn)
Closed-Loop Transfer Cost (EUR/txn)
Merchant Fee — Variable (% of txn value)
Merchant Fee — Fixed (EUR per txn)
Payer Fee
payware Payer Fee Share (%)
Transaction Mix
Card Migration (%)
Cash Digitization (%)
Bank's Card Revenue Share (Interchange %)

Adoption Assumptions (Year 1-5)

Metric Year 1 Year 2 Year 3 Year 4 Year 5
A2A Adoption Rate (%)
Closed-Loop % of Transactions

Customer & Business Impact Assumptions

Customer Value Metrics
Annual Profit per Customer (EUR)
% of A2A Users Who Become Active (Digital Adoption)
Churn Reduction (%)
Products per Inactive Customer
Products per Active A2A Customer
Annual Revenue per Product (EUR)

5-Year Financial Projection

Disclaimer: This financial model is for illustrative purposes only. Actual results may vary based on market conditions, execution quality, and various other factors. All assumptions should be validated against your bank's specific circumstances.