The Economics of Scale: Why we are removing barriers.

Dear Partners and Stakeholders,

There is often a debate in the payments industry (actually, all industries for that matter) between protecting short-term revenue and investing for the long-term through pricing for scale. At Sticitt, we are unequivocally choosing the latter.

The Friction Problem: For Month 3, our strategy focuses on Sustainability through Scale. In the traditional school model, collecting money is high-friction. Cash has high handling costs; third-party apps and generic payment providers often have high, variable-based transaction fees. Friction that makes Schools keep less revenue.

Strategic Pricing Approach We follow a “price for scale” model. We’ve also deployed the first of its kind monthly fixed fee pricing option allowing Merchants to process unlimited transactions for one fixed monthly fee. We feel this is the only way payment infrastructure can help change the School ecosystem for the better.

By aggressively lowering this cost barrier, we are investing in volume and network effects, which will:

1. Increase Transaction Velocity: Lower fees lead to higher adoption rates and payment frequency.

2. Secure the Moat: We become the most efficient infrastructure rail for schools, displacing competitors who rely on high fees.

3. Drive Unit Economics: In a payment business, volume is the primary driver of long-term value.

The Result: We are betting on the network effect. By helping schools generate more cash flow by reducing the friction to pay, we embed ourselves deeper into the educational ecosystem. Growth today is the best bet for a better (and profitable 😉) tomorrow.

We are proving that the best way to build a sustainable, profitable business is to ensure our customers—the schools and families—thrive first.

Best,

Theo Kitshoff, Co-founder & CEO, Sticitt