Corporate Prepaid - Why a Processor is Not Enough | Prepaid Summit Europe 2013
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Corporate Prepaid - Why a Processor is Not Enough | Prepaid Summit Europe 2013

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    Corporate Prepaid - Why a Processor is Not Enough | Prepaid Summit Europe 2013 Corporate Prepaid - Why a Processor is Not Enough | Prepaid Summit Europe 2013 Presentation Transcript

    • Winning in Corporate Prepaid Why a Processor is Not Enough Prepaid & Emerging Payments Europe 2013
    • Corporate prepaid is the most lucrative segment in prepaid and can provide new revenues to banks with corporate clients Corporate Prepaid Transaction Volume Global Potential Transaction Volume by 2015 European Potential Transaction Volume by 2015 Source: MasterCard 2012 Source: Visa Europe 2011 Confidential and Proprietary Information | © 2013 Ixaris System Ltd 2
    • Ixaris has 10 years experience delivering prepaid solutions Innovation Concept 2003: Visa’s first virtual prepaid card program in 2003 (EntroPay) Technology 2010: Developed comprehensive platform for rapid creation of diverse prepaid applications Solutions 2013: Serving 20+ corporate clients with solutions across most Corporate prepaid segments Confidential and Proprietary Information | © 2013 Ixaris System Ltd 3
    • What does an FI need to deliver profitable fit-for-purpose solutions to demanding corporate clients? 1. We will look at 3 corporate prepaid solutions we have deployed in the past 6 months 2. Each solution is based on an underlying prepaid card program - is the card program on its own enough to deliver the solution? 3. How much of the functionality would you expect to be provided out of the box from a mainstream (your) processing platform? 4. What platform capabilities would be needed to deliver these programs without any IT development? Confidential and Proprietary Information | © 2013 Ixaris System Ltd 4
    • Case 1: Payroll Services company serving international clients placing ex-pats in far flung places Employer 1 Employer 2 Employer … Payroll Services Provider Pays bills in Country X as well as Country Y Employee in Country X Transfers funds to family quickly and cost-effectively Employee’s family in Country Y Confidential and Proprietary Information | © 2013 Ixaris System Ltd 5
    • Case 1: Payroll Services company serving international clients The Challenges The Problem / Opportunity – Market of around 1M+ workers earning up to $20,000 pa = $20bn – Payroll provider required fixed price per account opened and per payment made – International employers e.g US contractors sourcing labourers from Kosovo to work within US Army bases in Afghanistan – Minimal use (withdrawal of salary in a single ATM transaction) must be free – Worker needs access to funds to make purchases and pay bills at home as well as in country where based – Must give their family access to funds quickly and cost-effectively. Their family may well be unbanked – Internet access not guaranteed everywhere so fall-back SMS interface required – Cheap bank transfers / bill payments in worker home country required – Employers want a simple solution that works everywhere and is transparent Confidential and Proprietary Information | © 2013 Ixaris System Ltd – Reliable delivery of cards to inhospitable / hard to reach places – Co-ordination of collection and verification of KYC documents 6
    • Case 2: Internet booking engine serving large travel agents sourcing flights, hotel accommodation, car hire, etc Travel Agent 1 Travel Agent 2 Travel Agent … Search for travel services via diverse parameters Collect and return info on matching services Travel Services Booking Engine Complete order and payment Travel Services Confidential and Proprietary Information | © 2013 Ixaris System Ltd 7
    • Case 2: Internet booking engine serving large travel agents sourcing flights, hotel accommodation, car hire, etc The Challenges The Problem / Opportunity – Clients sources ~€1bn of travel services for its clients – Actual order and payment was happening separately – an obvious gap in the service – IBE saw an opportunity to provided a valueadded service, and therefore a revenue opportunity – Wanted to be able to optimize costs through a variety of card types – Cards needed to be issued to the Internet Booking Engine so that they are an intrinsic part of the service – IBE did not want to handle client funds so funding had to be managed separately – IBE did not handle payments previously and did not want to have to become PCI compliant – Wanted to be able to add features such as multi-currency, credit, escrow, etc in future – Needed to be able to handle cancellations and refunds – 3-way reconciliation a critical requirement Confidential and Proprietary Information | © 2013 Ixaris System Ltd 8
    • Case 3: Marketing services provider wanted to create standout incentives programs for major brands Brand 1 Brand 2 Brand … Incentives Platform Third-party sales staff Inside sales people Confidential and Proprietary Information | © 2013 Ixaris System Ltd 9 Front line support staff
    • Case 3: Marketing consultancy wanted to deliver stand-out incentives programs for major brands The Challenges The Problem / Opportunity – Global Prepaid Exchange estimates a European corporate incentives market of around €34bn – Major brands are keen to incentivise front line staff, particularly those working at third-party distributors – Money is the preferred incentive in Europe, but cash payments are seen as too impersonal and not sufficiently emotive – but branded prepaid cards can solve that – User experience must live up to the expectations of the brand – Must compete economically with non-cash rewards such as gift vouchers which cost less than their face value – ATM cash withdrawal capability to be suppressed due to tax implications of cash payments – Business intelligence essential to confirm how used Confidential and Proprietary Information | © 2013 Ixaris System Ltd 10
    • Delivering and supporting corporate prepaid solutions requires much more than card processing Delivery channels Applications Web UI Incentives SMS Payroll Corporate funds management Platform mgmt Deployment workflow Support systems AML (KYC, PEP&Sanctions AML events) Dispute Management Card processing Authorisation / Settlement Chargeback processing API Purchasing T&E / Expenses Platform User Management Anti-fraud Disbursements End-to-end Monitoring Reporting and Business Intelligence Card lifecycle Accounting and Billing Support and eCRM Production, packaging, delivery Confidential and Proprietary Information | © 2013 Ixaris System Ltd 11
    • The nuances of each solution need to be implemented by tuning functional and look+feel aspects of several modules UK Payroll Services Provider ? Travel Services Booking Engine ? Major Beverages Brand ? How to set up these solutions on this architecture? Confidential and Proprietary Information | © 2013 Ixaris System Ltd 12
    • Case 1: Deliver a universal bank account alternative, managing complex funds flows between several parties UK Payroll Services Provider Travel Services Booking Engine Major Beverages Brand Most modules needed, with appropriate configuration Confidential and Proprietary Information | © 2013 Ixaris System Ltd 13
    • Case 2: Automate most program operations and make accessible via API for complete embedding in booking engine UK Payroll Services Provider Travel Services Booking Engine Major Beverages Brand API-driven solution with no human cardholders Confidential and Proprietary Information | © 2013 Ixaris System Ltd 14
    • Case 3: Design every end-user interaction in line with the desires of the brand manager UK Payroll Services Provider Travel Services Booking Engine Major Beverages Brand Modules configured for desired user experience and branding Confidential and Proprietary Information | © 2013 Ixaris System Ltd 15
    • Introducing: Ixaris Payments Server – we have put together a middleware package that sits over a basic processing switch Proven with Ixaris’ own corporate clients Payments Server PCI-compliant, in-the-cloud for rapid deployment – no IT integration needed Ready-to-market, highly configurable corporate prepaid applications In-built switch (Postilion) e.g. FIS e.g. ACI BASE 24 Option 3: Third-party Switch 1: In-the-cloud Option 2: Your existing switch Confidential and Proprietary Information | © 2013 Ixaris System Ltd Full lifecycle : client configuration, on-boarding, monitoring and support Just bring your own BIN 16
    • Summary 1. Corporate clients want solutions not prepaid programs 2. To deliver satisfactory corporate prepaid solutions quickly and profitably, more than a traditional card management platform is needed 3. Ixaris Payments Server is a full-featured flexible payments platform that provides rich applications and operational support systems 4. Ixaris Payments Server can be deployed over existing processing rails, turning legacy switches into a comprehensive platform Confidential and Proprietary Information | © 2013 Ixaris System Ltd 17
    • Thank you
    • Appendix 1: Ixaris Payments Server Screenshots
    • Console Home Confidential and Proprietary Information | © 2013 Ixaris System Ltd 20
    • Configuration Tools Confidential and Proprietary Information | © 2013 Ixaris System Ltd 21
    • Fund Forward Configurator – Look & Feel Section Confidential and Proprietary Information | © 2013 Ixaris System Ltd 22
    • Platform Performance Dashboard Confidential and Proprietary Information | © 2013 Ixaris System Ltd 23