Master Card Money Send


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  • When looking for a provider, consumers critically evaluate the entire money transfer value chain and carefully consider these factors: Reliability/Reputation—Trust in the brand is an overriding consideration Guaranteed payment Trusted brand Dispute resolution process Speed—Immediate transfer reduces disputes Funds directly credited in bank account Within two days, preferably immediately Convenience—Ease of sending and receiving money transfers Simple—no paper Ease of access from home/office Flexibility to fund the account
  • 10/23/09
  • Financial institutions offering MasterCard MoneySend payment service needs to engage in two transactions to accommodate the funds transfer between the Sender and the Recipient. The first transaction – Funding Transaction Enables the movement of money from the Sender to the Originating Institution providing the service—typically an “on-us” transaction. The second transaction – Payment Transaction Moves funds from the Originating Institution via the MasterCard global payment infrastructure to the Recipient via the Receiving Institution.
  • Online authorization ensures speed, minimizes disputes
  • Master Card Money Send

    1. 1. MasterCard MoneySend Person-to-Person Payments – A Promising Future 10/23/09 Faissal Khdiri, MasterCard Africa
    2. 2. The Opportunity
    3. 3. MoneySend – A Key Priority for MasterCard <ul><li>Growth Area </li></ul><ul><li>6 - 8% CAGR for X-Border Remittances over time (WB Estimates) </li></ul><ul><li>Nearly a billion MasterCard cards – massive global opportunity </li></ul><ul><li>MCW Network supporting MoneySend is reliable and dependable: </li></ul><ul><ul><li>Processed 18.7billion clearing transactions in 2008 </li></ul></ul><ul><ul><li>99.999% network availability </li></ul></ul><ul><ul><li>Capacity of 140 million transactions per hour </li></ul></ul>Aite Group Report Mar 2007 Proprietary Information
    4. 4. Foreign Workers remit over 60% of their salary <ul><li>Workers in KSA and UAE remit on average between US $447 and $504, 12 times a year. </li></ul><ul><li>Workers remit money within 4-6 days of receiving their salary: </li></ul><ul><ul><li>In the UAE, primarily at the end/beginning of the month while </li></ul></ul><ul><ul><li>In KSA this is usually in the middle of the month </li></ul></ul>1 MasterCard Estimates, MasterCard Proprietary Research Proprietary Information   12   12 Average time per year SR 1,675 (US$ 447) AED 1,851 (US$ 504) Avg. amount remitted (Local Currency) Avg. amount remitted (US Dollars) 71% 59% Avg. % of salary remitted overseas KSA UAE Profile – How much
    5. 5. Banking penetration of Remittance Consumer is high High familiarity/usage of banking services where they work.. 1 ..and in their home country 2 Home Country UAE & KSA Proprietary Information 1 MasterCard Estimates, MasterCard Proprietary Research
    6. 6. Workers evaluate remittance channel against four dimensions. <ul><li>Demand Drafts and Telex Transfers are perceived as less expensive than instant cash. </li></ul><ul><li>However, instant cash is faster (speed of transfer) and more convenient for sender and receiver. </li></ul>Proprietary Information 1 MasterCard Estimates, MasterCard Proprietary Research 40% 38% 25% 75% Demand Draft 90% 93% 83% 85% Telex Transfer 94% 97% 97% 52% Instant Cash Receiving Sending Speed of transfer Cost (expense) Convenient
    7. 7. What are the Factors Consumers Balance When Seeking P2P Payments? <ul><li>To maximize the amount of money they can send, consumers weigh cost against: </li></ul><ul><ul><li>Reliability/Reputation —Trust in the brand is an overriding consideration </li></ul></ul><ul><ul><li>Speed —Immediate transfer reduces disputes </li></ul></ul><ul><ul><li>Convenience —Ease of sending and receiving money transfers </li></ul></ul>10/23/09 Cross-Border P2P *Based on MasterCard Worldwide proprietary research and industry practices
    8. 8. What are Consumers Pain Points? 10/23/09 Lack of access Lack of Transparency High Cost Service Quality and Reliability <ul><li>Inconvenient disbursement locations </li></ul><ul><li>Limited hours of operation </li></ul><ul><li>Limited sending/receiving transfer options </li></ul><ul><li>Complicated/hidden foreign exchange fees </li></ul><ul><li>Hidden fees at disbursement location </li></ul><ul><li>Slow settlement </li></ul><ul><li>Confusion due to language barriers </li></ul><ul><li>High fees </li></ul><ul><li>Multiple foreign exchange fees </li></ul><ul><li>Payment delays </li></ul><ul><li>Lack of guaranteed delivery time </li></ul><ul><li>No dispute management </li></ul><ul><li>Poor financial infrastructure </li></ul>*Based on MasterCard Worldwide proprietary research Cross-Border P2P
    9. 9. Remittances Drive Economic Development and Banking Relationships October 23, 2009 Job MasterCard credit, debit, prepaid card Money Transfer Prepaid Phone / Bank Account Banking Relationship Creditworthiness Home Mortgage Migrant Worker Proprietary Information
    10. 10. The Solution
    11. 11. Our MasterCard MoneySend Framework October 23, 2009 100% online authorization Multi-channel disbursement & collection <ul><li>Flexible </li></ul><ul><li>Build your own platform </li></ul><ul><li>Utilize a Third Party Processor </li></ul><ul><li>Use the MasterCard fully hosted solution </li></ul><ul><li>Value </li></ul><ul><li>Multi-channel funding and disbursement opportunities to reduce fees </li></ul><ul><li>Speed </li></ul><ul><li>Authorization confirms recipients’ account receives the funds in the next settlement cycle </li></ul><ul><li>Supports single and dual messages enabling sending to MasterCard and Maestro accounts </li></ul><ul><li>Trust </li></ul><ul><li>Reliable, well-known global brand and partner </li></ul><ul><li>Unique rules add surety to Originating and Receiving Banks </li></ul><ul><li>Backed by MasterCard’s robust global infrastructure </li></ul>Multiple Funding Options – account to card, card to card Proprietary Information
    12. 12. How MoneySend Works 10/23/09 Two transactions to accommodate funds transfer between Sender and Recipient Funding Transaction Enables the movement of money from the Sender to the Originating Institution providing the service—typically an “on-us” transaction. Payment Transaction Moves funds from the Originating Institution via the MasterCard global payment infrastructure to the Recipient via Receiving Institution. 1 2
    13. 13. 10/23/09 Originating Institution Receiving Institution Account Funded How MoneySend Works Authorization to receiving bank Approval from receiving bank Transmission of funds via clearing 1 2 3 FUNDING TRANSACTION PAYMENT TRANSACTION Network Or Bank Accounts 1 1 2 2 3 3 *Card product availability varies by country Multiple Channels Sender Recipient
    14. 14. Why MasterCard?
    15. 15. (IMAGE OF GLOBE WITH BRIGHT LINES CONNECTING EVERYWHERE) The World’s Globally Integrated Payments System MasterCard global processing platform connecting consumers with more than 25,000 banks … in 210 countries and territories … using 160 different currencies
    16. 16. Profit and Savings Potential 10/23/09 <ul><li>Foreign Exchange Spread </li></ul><ul><li>Remittance Fees </li></ul><ul><li>Move from a pure account relationship to a card-based relationship resulting in: </li></ul><ul><ul><li>Card issuance fees </li></ul></ul><ul><ul><li>Interchange revenue from POS transactions </li></ul></ul><ul><li>Net Interest Income—from revolve balances on origination credit cards </li></ul><ul><li>Higher loyalty through repeat transactions </li></ul><ul><li>Streamlined FX Settlement — single treasury </li></ul><ul><li>Potential reduction in branch load — self-administered transactions </li></ul><ul><li>Simple MasterCard One Fee pricing </li></ul>Revenues Costs
    17. 17. The information provided herein is strictly confidential. It is intended to be used internally within your organization and cannot be distributed or shared with any other third party, without MasterCard’s prior approval. Information in this presentation or in any report or deliverable provided by MasterCard in connection herewith relating to the projected impact on your financial performance, as well as the results that you may expect generally, are estimates only. No assurances are given that any of these projections, estimates or expectations will be achieved, or that the analysis provided is error-free. You acknowledge and agree that inaccuracies and inconsistencies may be inherent in both MasterCard’s and your data and systems, and that consequently, the analysis may itself be somewhat inaccurate or inconsistent. The information, including all forecasts, projections, or indications of financial opportunities, are provided to you on an &quot;AS IS&quot; basis for use at your own risk. MasterCard will not be responsible for any action you take as a result of this presentation, or any inaccuracies, inconsistencies, formatting errors, or omissions in this presentation.