Lunch Vouchers Epay Presentation (Dl)


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How to transform, and why, the million of Paper Lunch Vouchers into simple and quick Prepaid Stored Value Cards

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  • TopUp voucher replaces the paper scratch card vouchers currently in distribution. T-Mobile, Virgin, Vodafone, 3 and O2 now Live, Orange still considering its position Removes the need to order, stock and store the existing paper airtime vouchers from these networks. PINS are delivered directly to your Epos solution which is then given to customer on their receipt. THIS IS THEN TREATED THE SAME BY CUSTOMER AS IF IT WAS A PHYSICAL VOUCHER
  • ETU where the customer uses a “Magnetic Swipe Card” to Top up their phone. On asking for a “Top Up” the card is swiped through POS or EpoS terminal, airtime top up is then delivered to the consumers handset. EPOSS Group provide you with the solution to deliver this service to customers at competitive rates. The technology used by EPOSS is widely regarded as the “Best in Class” Vast experience of integrating having implemented into over 20K till points. Payment 2 nd Protocol ensures minimal disruption on delivery issues.
  • Lunch Vouchers Epay Presentation (Dl)

    1. 1. Supporting Lunch Voucher “evolution” from Paper to Electronic across Europe Giuseppe Di Marco epay Italy Managing Director Prepaid Cards Summit Rome, 13th of November 2009
    2. 2. Processing more than one billion transactions annually for customers in 42 countries. Euronet Worldwide Business Segments and Countries of Operation Euronet Countries of Operation EFT CORPORATE PREPAID MONEY TRANSFER
    3. 3. <ul><li>Founded | 1994; listed on U.S. NASDAQ (EEFT) since 1997 </li></ul><ul><li>Approximately 2,700 employees worldwide </li></ul><ul><li>Processed 1.4 billion transactions in 2008 for customers in 41 countries </li></ul><ul><li>FY 2008 Revenue: $1,046 million </li></ul><ul><li>Noted industry accolades: </li></ul><ul><ul><li>Ranked #4 on Forbes’ magazine ’ s 2008 list of the 25 Fastest-Growing Technology Companies in the U.S. </li></ul></ul><ul><ul><li>Awarded ‘Merchant Acquirer of the Year’ at the Cards International Global Awards 2008 </li></ul></ul><ul><ul><li>Ranked #28 on Forbes’ magazine ’ s 2007 list of 200 Best Small Companies </li></ul></ul>Euronet Overview
    4. 4. epay Division Overview <ul><li>epay </li></ul><ul><ul><li>Is the largest prepaid payment network in the world for mobile top-up </li></ul></ul><ul><ul><li>Approximately 232,000 retail locations and 470,000 points of sale </li></ul></ul><ul><ul><li>Processed $11 Billion and 713 Million transactions in 2008 for prepaid products </li></ul></ul>
    5. 5. The Euronet Worldwide Group More than 150 Mobile Operators connected More than 100 banks and financial institutions connected CARD CONNECTIONS OTHER CONNECTIONS FINANCIAL CONNECTIONS MOBILE CONNECTIONS RETAIL CONNECTIONS DATA CENTERS WITH CONNECTIONS TO 43 COUNTRIES
    6. 6. e-pay Division Digital Content 220,000 Retailers $9 Billion Sales
    7. 7. E Voucher Customer pays retailer the value of the selected voucher. Customer requests E Voucher. Retailer selects product type and denomination . Customer takes voucher. Customer enters voucher details via requested method (mobile handset or online). Credit is applied to customers account. EPoS terminal prints a voucher with an active voucher number.
    8. 8. Stored Value Card Customer selects product. Customer requests activation of card at the point of sale. Customer pays Retailer card value. Retailer activates card through EPoS terminal and voucher number is activated and ready to use. Customer enters card voucher number via user interface (mobile handset or online). Credit is applied to customer’s account. Card can now potentially be used as E Top-up card.
    9. 9. E Top-up / Wallet Load Customer pays retailer top-up value. The card is swiped / scanned through EPoS terminal. Credit is applied to customer’s account. For example, airtime top-up is delivered to consumer’s handset or their online account / wallet is credited with the amount. Customer requests E Top-up and hands over their top-up card to retailer and requests amount to be added. E Top-up card is already linked to their account / wallet. Customer is able to access credit immediately .
    10. 10. Today Lunch Voucher schema Daily : the Employee pays the lunch with the voucher 4 6 The issuer checks the delivery ~45 days later , the Retailer gets the money: the total facial value of the vouchers minus the commission % 7 Employer Employee Employer 3 Monthly : delivers the vouchers to the Employees 5 Monthly : delivers the vouchers to the Issuers 1 Monthly : requests and receives the Vouchers 2 Retailer
    11. 11. The Lunch Vouchers Business <ul><li>This paper based process can be changed in order to work electronically </li></ul><ul><li>It starts electronically : the Employers make the orders to the Issuers and pays </li></ul><ul><li>Then it ends electronically : the Retailers (finally) are paid by the Issuers </li></ul>Vouchers Production Personalization Vouchers Delivery to the Employers Vouchers distribution to the Employees Collection & checking Vouchers delivered to every Issuer Payment delay due to mistakes and expired Vouchers Accounting per Issuer Vouchers acceptance
    12. 12. What is the real cost of a Paper Voucher? <ul><li>If we want to estimate the cost of a single Voucher we have to consider as follow: </li></ul><ul><ul><li>The Production </li></ul></ul><ul><ul><li>The Personalization </li></ul></ul><ul><ul><li>The Distribution </li></ul></ul><ul><ul><li>The Collection </li></ul></ul><ul><ul><li>The Balance checking </li></ul></ul><ul><ul><li>The Reporting </li></ul></ul><ul><ul><li>The Management of the expired Vouchers </li></ul></ul>
    13. 13. How can we improve the efficiency and reduce the costs of the actual system? <ul><li>A simple solution: </li></ul><ul><li>Use Prepaid Cards to pay the Retailers </li></ul><ul><li>instead of using the Paper Lunch Vouchers </li></ul>
    14. 14. How can everything go digital? <ul><li>We can consider two different approaches: </li></ul><ul><ul><li>Under the umbrella of a bank or of an e-Money Company: </li></ul></ul><ul><ul><ul><li>Create an Open Loop Cards Program where the value of the Vouchers can be loaded together the rules to use the credit </li></ul></ul></ul><ul><ul><ul><li>The issuer can use the available POS connected to an acquirers </li></ul></ul></ul><ul><ul><ul><li>This approach changes completely the actual business schema! </li></ul></ul></ul><ul><ul><li>Can be created an “ ecosystem ” with the following features: </li></ul></ul><ul><ul><ul><li>The Vouchers can be loaded into a prepaid Closed Loop Cards Program in a standardized and shared way used by all participant Issuers </li></ul></ul></ul><ul><ul><ul><li>Use an acceptance Country Wide Network that is able to accept, recognize and manage the cards issued by all the Issuers </li></ul></ul></ul><ul><ul><ul><li>This approach doesn’t change the actual business schema but will eliminates all the hassle we have today </li></ul></ul></ul>
    15. 15. Going with the Closed Loop Cards Schema The Retailer receives the money from the Issuers The Employee uses the Card to pay the Lunch to the Retailer The Retailer swipe the Card to complete the transaction and manage the settlement The Employer gives the single Card to its Employees The Issuer gives the Cards and the system to load and control the Cards to the Employers The Issuer produces personalized Cards
    16. 16. How this can be done in a competitive market <ul><li>This “ ecosystem ” needs the foundation of a Trusted Third Party (TTP) in order to manage the infrastructure and granting same access conditions to all the Issuers with a European network coverage </li></ul><ul><li>It is needed to manage a double option: </li></ul><ul><ul><li>The TTP provides to the Issuers a Closed Loop Management Platform </li></ul></ul><ul><ul><li>The TTP manages the trx through a link with an existing Issuer Platform </li></ul></ul><ul><li>It should be possible to link an existing POS network to the TTP infrastructure with a public protocol </li></ul><ul><li>Define a standard way to structure the Cards in order to: </li></ul><ul><ul><li>load and re-load the Vouchers </li></ul></ul><ul><ul><li>Manage the rules </li></ul></ul><ul><ul><li>Make the Cards accepted through the largest number of POS </li></ul></ul>
    17. 17. The “must” of a Trusted Third Party <ul><li>The Trusted Third Party must guarantee: </li></ul><ul><ul><li>A shared standard Cards Schema </li></ul></ul><ul><ul><li>A common interface with the Independent Retailers POS Terminals and with the Large Retailers Cash Registers infrastructures </li></ul></ul><ul><ul><li>Provide the highest possible system availability </li></ul></ul><ul><ul><li>Be able to reduce the costs of the actual physical system </li></ul></ul><ul><ul><li>Manage clearing, reporting and checking for the Issuers, the Employers and the Retailers </li></ul></ul>
    18. 18. The “Chicken and Egg” problem <ul><li>If we want to kick off with this new idea we must solve a Chicken and Egg problem: </li></ul><ul><ul><li>Actual situation: at the moment there are no Cards containing the “Lunch Vouchers” </li></ul></ul><ul><ul><li>Are the Issuers going to “share the cost” of the new network infrastructure (25.000 – 50.000 POS)? Quite difficult </li></ul></ul><ul><ul><li>It is possible that, a Retailer, just for a service that will take time to be expanded will pay for a POS Terminal? Quite difficult </li></ul></ul><ul><li>If we look at this picture we will not find a solution </li></ul>
    19. 19. Will the “Chicken and Egg” problem continue?
    20. 20. Giuseppe Di Marco [email_address] Mobile: +39 335 7716461 Please consider the environment before continuing to print Lunch Vouchers!