Payments as a Service


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This presentation is from Affiliate Summit East 2013 (August 18-20, 2013) in Philadelphia, PA). Session Description: Overview of main challenges affiliate networks face in attracting quality affiliates/publishers (taxation, regulation, etc.) and the latest tools for secure and cost-effective international payments.

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Payments as a Service

  1. 1. Affiliate Networks Go Global Payments as a Service Scott Galit Payoneer Inc.
  2. 2. Online advertising is even bigger outside the US than in the US Online advertising is growing faster outside the US Leading Digital Media companies and Affiliate Networks are going global faster & bigger than ever Going global is complicated – languages, currencies, payments, tax compliance, OFAC obligations… A “Payments as a Service” provider enables digital media companies to accelerate growth, manage compliance risk, lower costs and improve efficiency
  3. 3. “Between 2012 and 2015, an additional $76 billion will be spent on advertising globally, with the US contributing 28% of that total” Source:|
  4. 4. Huge international expansion by industry leaders in last 5 years US based advertisers and merchants are expanding internationally to grow diversify their businesses The same trends are developing in Europe and driving growth initiatives in Latin America Digital media companies and affiliate networks are expanding internationally in response to demand from their clients
  5. 5. The same trends are recognize in Europe that are launching activities in Latin America The international markets presenting a challenge that usually US/European based companies didn’t faced in the past - languages, currencies, payments, tax compliance, OFAC obligations, etc… Globalization of the online marketing world - getting stronger – Cont.
  6. 6. Languages Fraud KYC/OFAC Tax compliance Payments Administration Error handling Customer service
  7. 7. US Companies have tax reporting and withholding obligations for international payees Tax form collection is complicated  W-8BEN  W-8ECI  W-8IMY  W-8EXP Even more scrutiny with FATCA coming in 2014 “Problems are minimized if appropriate documentation is obtained from each payment recipient… if the proper documentation is not received the consequences for the business can be serious.” Source:Worldwide ERC
  8. 8. What is OFAC?  US government economic sanctions programs against countries and individuals, including terrorists and narcotics traffickers Who must comply?  All US citizens, residents, companies, foreign subsidiaries of US companies… Penalties include fines of $50k-$10mm and imprisonment ranging from 10 years to 30 years How does your company ensure you are complying with your OFAC obligations?
  9. 9. What if you could accelerate the growth of your business without having to worry about…  Properly managing tax compliance  OFAC and AML compliance issues  Fraud management tools  Service team to manage lost payments and CS  Offering the broadest selection of low-cost payment options to affiliates/payees  Dozens of languages and currencies with single data connection  Automation and reporting The Answer: Payments as a Service
  10. 10. Complete solution that handles all payments, automates payee administration and solves key compliance issues What are the key criteria for selecting a provider?  Tax compliance solution offering IRS guarantee  OFAC & AML Screening  Fraud tools  Languages and currencies  Multiple payment options for all countries  Single data flow and single money flow  Elegant APIs  Regulated provider to ensure stability
  11. 11. Profile  2.5bln daily recommendations; 250mm unique users monthly Key Challenges  Huge effort to manually collect and manage tax forms  Payments to many countries in multiple currencies  Expensive and difficult to manage bank; many lost payments Payments as a Service  Complete tax form management solution  Multiple currencies and payment types automated through clean API at fraction of cost of bank, saving time and money
  12. 12. “ClickBank Partners… to Simplify Expansion into Latin America” December 2012 PR ClickBank has more than 100k active affiliate marketers ClickBank now expects to be able to serve up to 5,000 more affiliates in Latin America Payments as a Service enables ClickBank to…  Reach into emerging markets; and  Make payments in dozens of currencies with international EFTs, international wires, prepaid cards, local checks and ewallets without integration
  13. 13. “The Solution is brilliant for any company sending funds to a large number of people in numerous countries, and we are thrilled to offer our members a better way for them to receive and access their money…” ELANCE
  14. 14. Processor LoadPartner Payee Register Invite Apply Fulfill Activate Account Managers Request Documents Non sponsored Payee New Accounts Request Documents Payee Know Your Customer (KYC) Know Your Customer’s Transactions (KYCT) Partner (Sponsor) Profile Card Holder Profile Program Limitations Customer Service Partner Payee Payments Request Documents Debit Credit Account Reconciliation Payoneer Request Card Transaction API ATM POS Purchase Cash withdraw Refund Refund/Return/ Reversal Load Partner $ Bank Payee Limited risk exposure Risk based treatment Partner Payee Transaction Decline Decline Decline Exposure Monitor Cancel Funding limits Withdrawal limits Program limitations Service limitations Coordinated risk management across multiple touch points Private Load
  15. 15. Digital Media is already bigger and is growing faster outside the US Going global is complicated – languages, currencies, payments, tax compliance, OFAC obligations, fraud… Payments as a Service can accelerate global growth for digital media companies with a complete solution that…  Ensures compliance  Provides unmatched low-cost payment options  Reduces headaches by automating processes and offloading issue resolution
  16. 16. QUESTIONS?
  17. 17. Thank