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try'n'pay - payment system for e-commerce

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Payment system for e-commerce

Payment system for e-commerce

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    try'n'pay - payment system for e-commerce try'n'pay - payment system for e-commerce Presentation Transcript

    • payment system for e-commerce try’n’pay The excellence of payments after delivery
    • payment system for e-commerce www.trynpay.com PAD - Payment After Delivery • Despite of 150% payment cards penetration, 60% of E-Commerce is Cash-on-Delivery (COD) * • Returning online shoppers prefer none-cash payment methods but they require to try (or fit) goods before purchase • Merchants require safe and reliable payment options to avoid cash settlement with consumers PAD is a trend of sophisticated e-commerce markets *) E-Commerce in Russia research data
    • payment system for e-commerce www.trynpay.com PAD Service Providers PAD Service is popular in the US and in Central/Northern Europe, it gives a number of advantages for e-commerce
    • payment system for e-commerce www.trynpay.com Success Stories • Bill Me Later was founded in 2000 as a service that lets e-commerce partners issue instant credit to buyers. The company raised $272 million – from Amazon, Azure Capital Partners, Chase Paymentech, Crosspoint Venture Partners, First Data Corp. • In 2008 By Me Later was acquired by eBay for $820 million in cash and $125 million in outstanding shares • Swedish Klarna in 2011 announced next round of venture capital funding, which was led by DST and General Atlantic worth a stunning $155 million
    • payment system for e-commerce www.trynpay.com Why Customers Choose • Easier checkout experience • Security - No need to provide merchants customer’s credit card info • Customers receive and inspect goods before they settle up • Option to pay by installments • Convenience - Consolidate all Klarna purchases for the month into a single invoice
    • payment system for e-commerce www.trynpay.com Revenue Streams Klarna performs effective fraud prevention and owns “entire stack”: • Issues the credit to Users (25-30% p.a.) • Fees to Merchants (€70 p.m.+ 2-3% of transaction) • Fees to Users (Late fee - €9, Installment fee - €4) Primary COGS: • Cost of Capital (volume of credits) • Payment Collection Cost • Bad Debts
    • payment system for e-commerce www.trynpay.com Service Comparison • Relies on the State credit bureau in scoring • Allows sending goods only to official address, provided by State credit bureau • Identification by SSN or ID which is a key factor for sophisticated markets • Relies on user’s previous activity • Ability to send goods to user’s typed-in address (eg provided to Merchant) • More flexible: Innovative KYC (Know-Your-Customer) and Credit Score systems The business is in obtaining service fee from consumers for providing an option of post-payment
    • payment system for e-commerce www.trynpay.com How It Works • Risk-free organization which issues bills to consumers for goods and services after actual delivery Revenue Stream: • 2,5-5% - Service Fee (min $5) • 5% - Late Payment Fee (min $5) (penalty for missing repay date – charged from card together with full amount as undisputable debit) Service Fee Late Payment Fee E-SHOP try’n’payGoods + Delivery Fee Goods + Delivery Fee + Service Fee
    • payment system for e-commerce www.trynpay.com Executive Summary Project Term 2 years EBITDA by end of Year 2 $ 1,25 M Break-even Parameters: Break-even Term 12 Months Investments prior Break-even $ 750 K Cost of Capital (Security Deposits) $ 1 M Monthly Sales Volume (Full Load - Year 1) $ 4 M Gross/Net Margin 6,3%/3,8% Monthly Gross/Net Profit $ 250/150 K
    • payment system for e-commerce www.trynpay.com Contact Details Contact Details: info@trynpay.com Moscow, Russia +7 985 9978969 Boston, USA: +1 617 9399482