Global Payment Systems Webinar


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Timely incentive payments are critical to driving business results and improving cash flow for your partners during these difficult economic times. Programs that fail to provide timely pay-offs can negatively impact partner satisfaction and your channel business. But how can you develop, implement and administer global payment systems to effectively engage partners and maximize results?

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Global Payment Systems Webinar

  1. 1. Maximize Your Channel Success with Effective Global Payment Systems November 12, 2009 Vaughn Aust VP, Product Management
  2. 2. Agenda AGENDA Why cash payments?  Partner perspective  Vendor perspective Challenges of global payment systems  Process Inconsistency  VAT/GST liability  Security  Bank account validation One client’s success story Making global payments work for your company © 2009 hawkeye, all rights reserved. 2
  3. 3. WHY CASH PAYMENTS? “...Cash flow issues in the channel are coming up as a growing problem... ...for solution providers the trick to remaining solvent during the six to 12 more months it is going to take to see real improvement in the market is going to revolve around cash flow and managing costs.” Robert Faletra, ChannelWeb, July 2009 © 2009 hawkeye, all rights reserved. 3
  4. 4. Hawkeye Channel Practice ABOUT HAWKEYE Channel Programs Enablement new! Performance Channel Channel Strategy Measurement Collaboration Insight Growth Assessment Reach Best Practices Profitability Improving the Value of Channel Relationships
  5. 5. Over a decade of success in the Channel ABOUT HAWKEYE 2007 Hawkeye 2003 expands into Asia Hawkeye Pacific 2000 expands into Hawkeye Europe acquires 1998 Cohesion Hawkeye Group hawkeye’s mission founded 1996 Cohesion, To develop and execute innovative, technology-enhanced Inc. channel marketing strategies and programs that allow our clients to deliver incremental channel growth in terms of founded mindshare, channel solutions, and indirect sales. 5
  6. 6. Disbursement History ABOUT HAWKEYE NA payment disbursement since 1996 Global payment disbursement since 2005 …within North America: $509MM …within EMEA: …to EMEA: $76.5MM $25.8MM …to Asia Pacific: $1.5MM …to Latin America: $1.3MM 2009 = $775MM est. 2008 = $614MM 2007 = $450MM
  7. 7. WHY CASH PAYMENTS? © 2009 hawkeye, all rights reserved. 7
  8. 8. Partner Perspective WHY CASH PAYMENTS? Solution providers are focused on business critical processes in these challenging economic times and cash flow and on time payments are more important than ever before. Partners want:  On time payments  Payments in their preferred currency  Consolidated payments for multiple programs  Clear visibility into benefits  Clear, consistent and understood process © 2009 hawkeye, all rights reserved. 8
  9. 9. Vendor Perspective WHY CASH PAYMENTS? Vendors are focused on reducing costs and increasing partner satisfaction. Program Managers & Operations Managers want:  Reduce/eliminate partner complaints  Focus on program success Finance Directors want:  Focus on other finance functions  Global tax liability painlessly addressed  Cost efficient payment process © 2009 hawkeye, all rights reserved. 9
  10. 10. CHALLENGES OF GLOBAL PAYMENT SYSTEMS © 2009 hawkeye, all rights reserved. 10
  11. 11. Why are global payments so difficult? CHALLENGES OF GLOBAL PAYMENT SYSTEMS Many challenges with global payment systems can be traced to several factors: 1. Process inconsistency 2. VAT/GST tax liability 3. Security 4. Bank account validation © 2009 hawkeye, all rights reserved. 11
  12. 12. Process Inconsistency CHALLENGES OF GLOBAL PAYMENT SYSTEMS Process Pain Points  Multiple programs, duplicated effort  Different sources of payment information  Different VAT/GST tax advice and resulting processes  Different methods of collecting bank account information  Front line support knowledge © 2009 hawkeye, all rights reserved. 12
  13. 13. VAT/GST Tax Liability CHALLENGES OF GLOBAL PAYMENT SYSTEMS Hawkeye Disclaimer  We are not tax experts, but are simply pointing out best practices that we have implemented for global, fortune 100 technology clients Global VAT/GST Tax liability  More than 130 countries have these taxes  Vary between 5% and 25%  Partners are required to invoice the Vendor for the value of the award © 2009 hawkeye, all rights reserved. 13
  14. 14. Security CHALLENGES OF GLOBAL PAYMENT SYSTEMS List of security considerations that Vendors should consider (whether a third party vendor or “do it yourself”)  How is Partner personal information stored? • Encryption, storage and retention policies, access  Partner account entry – beneficiary name  If third party, • Are they SAS 70 certified? • Are they GAAP compliant?  Vendor Bank Account • Access – signature and authorization policy • Batch control and auditing © 2009 hawkeye, all rights reserved. 14
  15. 15. Bank Account Validation CHALLENGES OF GLOBAL PAYMENT SYSTEMS Bank Account Validation  Routing Methods are different • SWIFT • IBAN • ABA  Upfront/Online versus Backend © 2009 hawkeye, all rights reserved. 15
  16. 16. SUCCESS STORY © 2009 hawkeye, all rights reserved. 16
  17. 17. The Situation SUCCESS STORY The company had programs in over 100 countries and had been using regionalized vendors and internal, regionalized Accounting centers to process ~$1 billion in payments annually to over 8,000 partners. The challenges for this company:  VAT/GST taxes  Inconsistent Process • Across regions • Across programs (both different and same regions) • Same partner receiving different payments  High internal costs  Long payment lag times Let’s look at how the company addressed each of these concerns. © 2009 hawkeye, all rights reserved. 17
  18. 18. Global Payment Processing Needs SUCCESS STORY The company was hoping that a single, global payment platform and process would help them with the following:  Reduce processing time  Reduce transaction costs  Ability to consolidate multiple payments  Robust administrative metrics  Reduce payment exceptions  Standardize payment communication to partners  Decrease Help Center volume © 2009 hawkeye, all rights reserved. 18
  19. 19. VAT/GST Taxes SUCCESS STORY Accounting firms process  Always pay VAT/GST to local governments and reclaim at the end of the year  Physical VAT/GST invoices Why?  “Market Penetration Services” are a cross-border, non-taxable item in the supply chain  Electronic invoices are legally acceptable in many countries © 2009 hawkeye, all rights reserved. 19
  20. 20. Process Consistency SUCCESS STORY Bank Acct Info Payment Pending Collection & Real- Payment Notification Email time Validation Confirmation Dynamic Online Invoice or Invoice instructions © 2009 hawkeye, all rights reserved. 20
  21. 21. New Process Dynamic Options SUCCESS STORY After submitting or confirming bank details, dynamically display mailing instructions for a partner invoice or ask the partner to enter their invoice online, based on program and country. VAT was inclusive or exclusive, based on program and country. © 2009 hawkeye, all rights reserved. 21
  22. 22. Process Transparency - Partner Global Benefit Statement SUCCESS STORY At-a-glance summary of all Pending and Paid benefits Drill down for detailed transactions Multiple currency and Multiple language enabled © 2009 hawkeye, all rights reserved. 22
  23. 23. Where the Company/Vendor Cut Costs SUCCESS STORY COST SAVINGS Reduced Invoice Audit Global Payment Global Benefit Document Help Desk System Statement Management © 2009 hawkeye, all rights reserved. 23
  24. 24. Vendor Cost Savings SUCCESS STORY Customer Service Savings 38% Delivery & Audit Savings 67% Management Savings 20% Savings/Payment $26.13 30-Day Payment Delivery SLA ~40%  95%+ © 2009 hawkeye, all rights reserved. 24
  25. 25. Benefits of the New Payment System for Vendor SUCCESS STORY  Standardized, single global payment platform  Reduced payment cycle time  Predictable delivery of payments  Improved partner satisfaction  Consolidation of multiple payments  Reduced transaction costs  Centralized reporting and tracking  Consistent banking data collection  Intermediary banks enabled in payment process  Standardized payment communications  Online, consolidated reporting  Decreased Help Center volume © 2009 hawkeye, all rights reserved. 25
  26. 26. Benefits of the New Payment System for Partners SUCCESS STORY  Consolidation of payments  Managing fewer payments  Improved cash flow with faster  Standardized, predictable cycle payment  Online tracking of payment process  Provide bank details once  Payments in local currency  Strong communication Greatly improved partner satisfaction! © 2009 hawkeye, all rights reserved. 26
  27. 27. KEY POINTS/DISCUSSION © 2009 hawkeye, all rights reserved. 27
  28. 28. Evangelizing and Building a Global Payment System KEY POINTS/DISCUSSION Planning and implementing a global payment system can be a real challenge. These important points will get you started: 1. Obtain key stakeholder buy-in and sponsorship 2. Define and prioritize Global Payments as a project • Centralize operations budget 3. Audit and question current tax-related processes 4. “Operationalize” 5. Start with pilot 6. Survey, measure and improve 7. Roll-out programs in batches 8. Reduce cost and increase partner sat © 2009 hawkeye, all rights reserved. 28
  29. 29. Key Points KEY POINTS/SUMMARY These are key best practices for an effective global payment system: 1. Centralize 2. Standardize 3. Validate banking information upfront 4. Utilize electronic invoicing 5. Require partners to invoice for Market penetration services © 2009 hawkeye, all rights reserved. 29
  30. 30. Questions, Discussion KEY POINTS, DISCUSSION © 2009 hawkeye, all rights reserved. 30
  31. 31. THANK YOU Vaughn Aust VP, Product Management +1.425.902.5146 © 2009 hawkeye, all rights reserved.