Case
Teaching Notes
Supplementary Resources
Abstract
This case focuses on Abra in March 2017, immediately following the launch of its smartphone app, which allowed for “peer-to-peer” transfer of money in 50 different currencies worldwide—often for cross-border remittances—by piggybacking upon the Bitcoin’s ecosystem. By using this app, customers could bypass the traditional but cumbersome multiple-step transfer of money—and relatively high handling fees—offered by banks and other financial institutions. Like similar “fin-tech” start-ups, Abra’s CEO, Bill Barhydt and his management team were now engaged in how they might be able to extend their “non-custodian” Bitcoin wallet platform to new markets and applications, taking advantage of new mobile technologies and changing consumer habits to further disrupt traditional banking services and products, But what is the probability of success for Abra and the associated risks of customer acceptance?
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 2 Bitcoin Close Price, June 2013–June 2018
Source: CoinMarketCap.
Exhibit 3 Top Remittance Corridors 2012, in U.S. Billions
Source: The Economist 2012 (available here).
Exhibit 5 Comparison of Total Cost of Sending USD $100 From U.S. to Mexico, by Method
Source: saveonsend.com (retrieved on 20-02-2017, current mid-market exchange rate: USD 1 = MXN 20.37).
Exhibit 6 Smart Money Participation
Source: CB Insights
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
