Open the doors to cash

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Open the doors to cash

  1. 1. Andrea McGeachin Commercial Director OPEN THE VIRTUAL DOORS TO CASH
  2. 2. Cash spent online delivers significant growth
  3. 5. What do the businesses gain from accepting cash? <ul><li>These consumers; </li></ul><ul><ul><li>Pay their utilities with cash every week </li></ul></ul><ul><ul><li>23% of the 3m daily online Bingo players use cash to deposit and do so 2-3 times per week </li></ul></ul><ul><ul><li>Most e-commerce misses these users . </li></ul></ul>% UK Population TOTAL MALE FEMALE Social Grade C2 20.7% 9,964 5,395 4,570 Social Grade D 16.2% 7,819 3,712 4,107 Social Grade E 8.1% 3,916 1,435 2,481
  4. 6. Cash online reaches rest of the world 67% of EU adults do not have a card to use online South Africa Population 49m and 80% use prepay as methods to buy online Brazil population 203m and 37.4% online Cash is key requirement Russia - 91% of card users only use to get cash out of the ATM Australia Over 60% of 55+ age group fear fraud online
  5. 7. Cash brings security to merchants <ul><li>Assured funds – this really does mean zero charge backs </li></ul><ul><li>Cash is collected from over 500,000 locations across 6 continents with security / guarantees in place </li></ul><ul><li>All monies collected are in a regulated manner kept segregated until its time to settle to the merchant </li></ul><ul><li>Cost of handling cash versus all the processes to handle cards and the administration is circa 1.25% less </li></ul>
  6. 8. <ul><li>Customers go to local shops, Post offices, Interactive kiosks and ATM’s </li></ul><ul><li>Give cash in local currency to receive a voucher back </li></ul><ul><li>Vouchers can be cards, receipts, SMS messages – unique </li></ul>
  7. 9. Comparing pre and post-paid solutions Post paid has to wait for customer to go to shop before any goods can be shipped. 2 part payment flow.
  8. 10. Managing risk and compliance <ul><li>Dedicated risk/compliance team and anti-money laundering capability </li></ul><ul><li>Ukash, like some others have full E-Money license (EMLI) - ensures compliance with the FSA/e-money regulatory practices </li></ul><ul><li>This is achieved through: </li></ul><ul><ul><li>Full KYC of all distribution & redemption partners </li></ul></ul><ul><ul><li>Management of voucher limits by geography, partner and per voucher </li></ul></ul><ul><ul><li>Full traceability of each voucher from issuance to redemption </li></ul></ul><ul><li>Traceability of cash through e-money is supported by all the official police and crime management authorities </li></ul>Similar risks and targeting by fraudsters as cash in banks; the companies take risk management seriously
  9. 11. Cash Solutions PrePaid Cards What is it Geography reach Benefits Costs to consumer Other considerations Pre-Paid voucher No registration £5 - £500 48,000 POS – UK 500,000 + in 55 countries Assured funds Variable values Simple user experience Change given ZERO Smart Voucher patented solution for promotional usage Post-paid No registration UK only 35,000 POS Assured funds Simple user experience ZERO Merchants can get logistics issues awaiting user to go and pay, or not. Pre-paid voucher No registration £20 - £100 26,000 UK POS 250,000 EU Assured funds Simple user experience 2% Part of the Paysafe Group Pre-paid voucher/card No registration 26,000 UK 350,000 POS in 26 countries Assured funds No registration ZERO Use CashTicket in E-Commerce category Post-paid No registration 26,000 UK Assured funds ZERO Only available to merchants on PSP platform Pre-paid Registration required 20,000 – 26,000 UK Card process 2%-6% various fees Consumers not really seeing as a cash solution yet
  10. 12. Cash online growth 12x overall eCommerce growth over 3 years <ul><li>Cash eCommerce has grown 532% or 85% compound </li></ul><ul><ul><li>Source: Ukash audited sales growth as featured in the 2011 Tech Track 100 list </li></ul></ul><ul><li>General eCommerce has grown 43% or 13% compound </li></ul><ul><ul><li>Source: IMRG Capgemini e-Retail sales index grew from 4737 to 6797 between Aug 08 to Aug 11 </li></ul></ul>
  11. 13. Thank You

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