Distra empowers mobile payments


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  • 4+ billion phones globallyAccording to a report by IEMR, global mobile payments transactions to rise to $1.13 trillion in 2014, with a CAGR of 94.8% (value of mobile payments transactions was $37.4 billion in 2009), the number of mobile payments users will rise to 1.06 billion in 2014Strongest growth coming from developing markets including Asia - According to IEMR, in Asia Pacific mobile payments transaction values in Asia Pacific will rise to $316B in 2014, with a CAGR of 94.1% and there will be 622 million mobile payments users in the Asia Pacific by 2014, accounting for 60% of mobile payment users globallyNFC uptake growing rapidly, according to IEMR in 2009, there were 861 million NFC transactions globally, forecast to rise to 35.6 billion transactions in 2014, with a CAGR of 106.4%Smart devices rapidly changing behavior of all demographic groups – “always on”Most of the growth in bill payment will come from the mobile channel – according to Aite Group mobile bill payments is forecast to grow 377% between 2010-2013Mobile being used for pre-paid top ups- according to IEMR prepaid top-ups using mobile payments to reach $286.4 billion in 2014, with a CAGR of 76.7%Existing payment chain participants being disrupted, telcos threatening banks’ incumbent position“Closed Loop” major threat to interchange revenueE-wallets and mobile encroaching on PrepaidMobile payment interaction offers lucrative source of new revenue opportunities, and biggest growth in mobile payments coming from non-bank providers – for example 2008-2012 forecast growth of 72% versus bank provider growth of 43% Opportunity for major players to drive payments infrastructure convergence across channelsUnderbanked/Underserved major target – rapidly growing segment in many parts of AsiaConsumers demanding more choice, better security and ease of use
  • Distra UPP can provision wallet software and upgrades to the mobile devices, and cards/features within the wallet in a similar way that POS software is provisioned.Transactions originating from the Mobile wallet can be processed by UPP for payment authorization and for adjunct services like Person-to-person payments, instantly redeemable offers, future redeemable offers, loyalty program point redemption/accrual, fraud prevention, mobile top-up, electronic receipts, virtual cards (e.g. based on phone number), etc. Transactions can be multi-legged, such as returning an offer first and accepting immediate redemption before authorizing the final total payment.
  • Distra empowers mobile payments

    1. 1. Distra:EmpoweringMobile PaymentsFebruary 2012 1
    2. 2. In the payments world increasingly there is a divide…. Old Payments World New Payments World •Traditional players: •New players : banks, processors, schemes Google, Paypal, Facebook •ATM, POS, ACH •Mobile, Social •Batch Processing •Real-time Processing •Security & Reliability •Flexibility & Innovation •Convergence & Collaboration© 2011 Distra Pty Ltd. All rights reserved. 2
    3. 3. There are 4 drivers contributing to this divide •Faster Payments •Smart Phones •Dodd Frank/Durbin •NFC/Secure •SEPA Element •PSD •2D •Phishing attacks on Barcodes, Tokens the rise •Social Media •Cloud, SOA Regulation Technology & Fraud Customer New Entrants Expectations •Non-bank Players - •Customised Paypal, Google, Fa Offerings cebook •Real-time •New Markets – •Rich Experience China, India, Latin •Relevant & Timely America, Russia Offers 3© 2011 Distra Pty Ltd. All rights reserved. 3
    4. 4. The mobile payments opportunity is huge •4+ billion mobile phones globally •Global mobile payment transactions to reach $1.13 trillion in 2014 from $37.4 billion in 2009 •Number of mobile payment users will reach 1.06 billion by 2014 •NFC transactions to reach 35.6 billion in 2014 from 861 million in 2009 •Mobile bill payments forecast to grow 377% 2010-2013 •Biggest growth in mobile payments coming from non- bank providers Sources: IEMR Global Mobile Payment Market Forecast 2011 Aite Group © 2011 Distra Pty Ltd. All rights reserved. 4
    5. 5. Mobile is changing the way paymentsservices are delivered Business (bank/merchant) to Consumer • Mobile Banking • Mobile Wallets Person to Person • Receipts •Mobile Funds Transfer • Offers, Loyalty & Couponing •Eg: Pingit • Contactless Payments • Eg: Google Wallet, Kaching Payments Anywhere Anytime to Anyone Smart phones, mobile wallet & payment apps, NFC devices and 24/7 connections are transforming the way we access, pay and save© 2011 Distra Pty Ltd. All rights reserved. Diagram Source: KPMG Mobile Payments in Asia Pacific 2007 5
    6. 6. Mobile payments require collaboration acrossthe value chain…Between traditional and new players Regulatin g Body? Source: Mobile Payments in the United States Mapping Out the Road Ahead , Federal Reserve Bank of Boston , Federal Reserve Bank of Atlanta, March 2011© 2011 Distra Pty Ltd. All rights reserved. 6
    7. 7. Google Wallet is an example “We’ve joined with leaders in the industry to build the next generation of mobile commerce. With Citi, MasterCard, First Data and Sprint we’re building an open commerce ecosystem that for the first time will make it possible for you to pay with an NFC wallet and redeem consumer promotions all in one tap, while shopping offline.” Stephanie Tilenius, Vice President, Commerce and Payments, Google • Collaboration between new and traditional players - Google, Citi, MasterCard, Sprint and First Data • Announced in May 2011 • A smart, virtual wallet that stores payment cards, offers, and more on consumers’ phones and online© 2011 Distra Pty Ltd. All rights reserved. 7
    8. 8. V.Me is another example “Visa’s agreement with Intel paves the way for financial institutions around the globe to offer their account holders mobile payments and financial services using innovative mobile devices and technologies designed by Intel.” John Partridge, President, Visa • Collaboration between Visa and Intel • Announced in late 2011, launches in 2012 • A standardized payment application that allows the end user to download Visa payment information straight onto a mobile device in a secure manner • Instead of typing in a 16-digit account number to complete a transaction from a smartphone, users can simply sign into the V.me digital wallet with a user name and password to buy something© 2011 Distra Pty Ltd. All rights reserved. 8
    9. 9. A smart phone app is just the beginning Mobile payments requires a high performance back-end processing system • Real-time authentication, validation, routing & settlement •Process transactions in seconds • 24/7 availability •In-built fault tolerance • Scalable •Process high volumes of micro-payments simultaneously • Flexible •Capture financial & non-financial data to enable customized offers & coupons •Open, interfaces with multiple systems, applications and/or devices for ease of collaboration •Enable rapidly deployment of new services • Secure •Tokenized security The Distra Universal Payments Platform (UPP) is an enabler for P2P and B2C mobile payments applications and services Combines flexibility and innovation with performance and security© 2011 Distra Pty Ltd. All rights reserved. 9
    10. 10. The Distra UPP provides a flexible and reliable back-end for mobile payments processingMobileWallets Paypal Google Visa ISISChannels EFTPOS ATM Internet Social media Mobile Kiosk Legacy EValue-add PServicesP2P Payments Transaction Plans Endpoint Builder & Card Management, Authorization Entity Builder GUI Merchant Accounting Offers – New Interfaces & Reversal Business Models Loyalty without Coding Back-end Program Completion … Systems Session Fraud Manager Mobile Top-up Prevention Internal Mobile Vocabulary Offload Virtual Provisioning… DB Cards Tokenized Security Distra Universal Payments Platform Routing Rules Analytics & Low-cost Infrastructure E Reporting P VISA Mastercard AmEx ACH UK FP STAR PayPal …© 2011 Distra Pty Ltd. All rights reserved. 10
    11. 11. Distra is enabling mobile payments: Barclays Pingit (P2P) •Barclay’s P2P mobile payments app for Android, Blackberry & iPhone •Launched in UK in Feb 2012 •Enables Barclays 11.9M customers to make payments instantly via mobile without account details (up to £300 a day) •Transfers to anyone with a UK-based mobile phone and a current account with any UK bank• In 2007, VocaLink, a payments processors in Europe, entered into an agreement with Distra to utilize its unique real-time, high- "Barclays Pingit could revolutionize the way reliability, high performance payment solution as a core people send and component of its Faster Payments Gateway (FPG) receive money. …it is free, quick, convenient,• Faster Payments is “same day” (real-time) clearing requirement, secure, and easy to legislated by the U.K. Government for various ACH payments. use. You can send and VocaLink was responsible for providing the network for major receive money in clearing banks, other financial institutions and corporations seconds without having to enter account• Distra delivered its real-time platform both to VocaLink and major details. Im sure well soon be wondering U.K. Banks including Barclays what we did before it."• The FPG, powered by the Distra Universal Payments Platform (UPP), processes PingIt transactions in as little as 30 seconds so that money is moved instantly Antony Jenkins, Chief Executive Barclays © 2011 Distra Pty Ltd. All rights reserved. Retail and Business Banking 11
    12. 12. Distra is enabling mobile payments: Barclays Pingit (P2P) Pingit Paypal Pingit Corporate Portal ISO858 VocaLink Domain 3 Barclays Central Infrastructure ISO858 Voca 3 ISO2002 Payment ISO858 2 3Proprietar Switch Directy (Distra) ISO858 Corporat ISO8583 Batches Faster Payments ? 3 e Access Central Platform ISO858 (DCA) 3 (Distra) Bank Bank Bank Bank VocaLink Settlement © 2011 Distra Pty Ltd. All rights reserved. 12
    13. 13. Distra is enabling mobile payments: Asian e-Payments Provider (B2C) • Leading payment gateway in Singapore provides merchants with a service to facilitate their customers to make online payments via credit card and/or direct debit via internet banking • It is enabling this service for mobile and tablet so that merchants’ customers are able to easily complete e-commerce transactions from their mobile devices• In 2009 Distra entered into an agreement with a leading payment gateway in Singapore to provide a secure, flexible, scalable payment platform, capable of processing high volumes of payment transactions at high speed and with no downtime.• The Distra UPP offers the e-payments provider flexible and configurable delivery channel interfaces that enable rapid on-boarding of payments types, regardless of the messaging type, device or source system.• In 2012 Distra is working with the gateway to enable their credit and debit payment services on mobile devices, so that all e-commerce functionality is readily available in mobile in-built web browsers. © 2011 Distra Pty Ltd. All rights reserved. 13
    14. 14. Distra is enabling mobile payments: Asiane-Payments Provider (B2C) Mobile Internet Merchant HAR HAR Distra UPP HAR Bank Distra Databas e© 2011 Distra Pty Ltd. All rights reserved. 14
    15. 15. Immediate business benefits with Distra UPP• Instant processing of high volumes of mobile payments with no downtime• Increased flexibility and reduced time to market with new mobile payments services and business models• Improved profitability through reduced costs and new revenue streams• Increased customer satisfaction through leverage of real-time intelligence and customized coupons and offers• High levels of security and compliance• Augments rather than replaces existing systems and front-ends© 2011 Distra Pty Ltd. All rights reserved. 15
    16. 16. Distra is helping bridge the payments divide• The security and performance of traditional payment networks with the flexibility to enable rapid innovation• Real-time payments processing for mobile and other payments channels (POS, ATM, web, social media, kiosk)• Java-based architecture offers flexibility, agility and speed to market• High levels of security, reliability, performance (> 3000 TPS)• Message agnostic - financial and non-financial message capture enabling customized offers, coupons & loyalty programs “We selected Distra’s technology as a key component of our [Faster Payments] solutions because its uniquely innovative architecture provides a combination of real- time performance, reliability and agility.”© 2011 Distra Pty Ltd. All rights reserved. 16
    17. 17. Empowering Mobile Payments