Blue Sky Card Solutions Presentation


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Blue Sky Card Solutions Presentation

  1. 1. “Delivering innovative and flexible solutions“Delivering innovative and flexible solutions to prepaid” to prepaid” 1
  4. 4. INTRODUCTION: WHO WE AREINTRODUCTION – WHO WE ARE Blue Sky Card Solutions Limited (“Blue Sky”) is a technology company, positioned at the forefront of the convergence between the high growth, Prepaid Card market, Digital Electronic Payments, E-money, P2P (person 2 person) and Mobile Payments. Blue Sky is an Approved MasterCard Member Service Provider and as such can provide end to end solutions for e money, e wallet and mobile payments. Blue Sky, in partnership with a leading technology partner, has created its own unique bespoke E-money Payment Gateway which allows Blue Sky, if required, to bypass the established payment processors infrastructure. The cost savings that Blue Sky and its partners can generate from this payment gateway are substantial. Other companies who have developed e money, e wallet or mobile payment systems are required to partner with a card payment supplier or card processor to provide an end to end solution, Blue Sky manages this in house. The industry is being fuelled by the trend moving towards electronic payments, as opposed to cash-based payments. The use of Prepaid Cards, which are essentially “debit” cards, is set to see further significant growth over the coming years. E-money, electronic payments and Prepaid Cards can be used for a multitude of purposes – such as;  Money Remittance  Travel  Employee Payroll  P2P  Gift Cards  Corporate Expenses  Youth Cards“Delivering innovative and flexible solutions to prepaid” 4
  5. 5. INTRODUCTION: WHO WE AREINTRODUCTION – WHO WE ARE Prepaid Cards also enable those consumers who were previously excluded from traditional banking relationships to make E- money based payments including online payments and purchases, along with other services such as mobile money transfers and ATM cash withdrawals. The electronic card market in the UK alone accounts for 27.4m transactions per day, worth some £1.56bn, or £569.4bn annually ( According to MasterCard, during 2010, UK Prepaid E-money payments are expected to represent 7.9% of all card volumes, which equates to £44.95bn annually. Blue Sky has its own retail prepaid MasterCard program, called “Blue Sky Prepaid”; this is a general spend card denominated in GBP Sterling, these cards are available online at Blue Sky Prepaid was launched in December 2010 and within four months established itself as a market leader in the UK. It also came Runner Up in the “Best Newcomer” category in the industry’s prestigious “Prepaid365 Awards”. Blue Sky did not win the category outright owing to it being only four months old at the time. Blue Sky is capable of producing a bespoke prepaid card program for any company requiring it; we are currently in talks with a number of wholesalers, football clubs and schools to set up custom branded prepaid card programs. Blue Sky will arrange and project manage the entire process from regulatory approval, technology build, card manufacture and personalisation, website, customer fulfilment to monthly reporting. A bespoke program at a physical location (eg: football stadium) has the benefits of saving on payment processor fees (usually 3% of transaction value), revenue creation and strengthened branding. All of the benefits of a custom prepaid card program can be delivered at a very low cost and in a short space of time.“Delivering innovative and flexible solutions to prepaid” 5
  6. 6. INTRODUCTION: WHITE LABEL V GENERIC BLUE SKY CARDSINTRODUCTION – WHITE LABEL v OUR GENERIC BLUE SKY PROGRAM We are capable of developing an entire bespoke white label prepaid MasterCard program for clients. However, a white label program is suitable only when a client requires a certain number of cards, “critical mass”. Critical mass varies depending upon the type of program required but we feel the average card issuance needs to be above 5,000 issued cards to justify building a viable bespoke white label program. For clients that do not require this level of issuance (or to test the market with a de-risked offering), we can issue our generic Blue Sky program as an interim or permanent solution. We offer what is referred to as “Fourth Line Embossing” in these situations. This means that the client’s program will be via our Blue Sky Cards, but the client’s company name will appear under the cardholder’s name to enforce branding. We have intentionally designed our program to be as generic as possible to cater for as many companies as required. All cards issued under our Blue Sky brand will be tracked using the cards’ 16 digit number hence issued cards’ behaviour and usage can be monitored. All fee structures can be changed to the client’s bespoke requirements. Using fourth line embossing delivers many things a white label program will provide with the major exception being the fully branded card proposition offering. FOURTH LINE EMBOSSING“Delivering innovative and flexible solutions to prepaid” 6
  7. 7. INTRODUCTION: TARGET MARKETSTARGET MARKETSThere are many significant target markets for prepaid cards, however Blue Sky will focus efforts towards thefollowing areas (some of these are discussed at greater length later in the presentation); FOOTBALL CLUBS EDUCATIONAL ESTABLISHMENTS: SCHOOLS, COLLEGES & UNIVERSITIES TRAVEL (FX) CARDS TEEN & YOUTH CARDS REMITTANCE CARDS WHOLESALERS: “CASH & CARRYS” PAYROLL CARDS: Payroll cards are used as an alternative to cash or cheques where employees do not have a bank account. Prepaid Cards are also used where employers have a large number of part time staff. It is estimated employers save up to 75% of cheque processing expenses through issuing payroll cards to employees“Delivering innovative and flexible solutions to prepaid” 7
  8. 8. INTRODUCTION: OUR PARTNERSOUR PARTNERS Norwich City FC White Label Cards“Delivering innovative and flexible solutions to prepaid” 8
  9. 9. INTRODUCTION: OUR PARTNERSMasterCard TRANSACT NETWORK LIMITEDMasterCard is a global payments company with one of the Transact Network (“Transact”) is a regulated and authorisedmost recognised and respected brands in the world. They MasterCard Principal Member providing European BINmanage a full range of payment programs and services, sponsorship and modular prepaid services.including Mastercard® and Maestro Prepaid Cards. Transact issues MasterCard physical and virtual prepaidMastercard’s role is to facilitate transactions among those cards including corporate expense cards, general spendwho use their payment cards, those who accept them, and cards, gift cards, money transfer cards, travel and forexthe member financial institutions that manage these cards, payroll cards and affiliate commission cards. Therelationships. In conjunction with their member institutions, company’s license has been successfully passported intoMasterCard provide the infrastructure to ensure that these every EU and EEA member state enabling the issuance ofpayments transactions are completed with a virtually 100 prepaid card programs across Europe.percent success rate. Transact plays a key role in the Blue Sky program, as the BIN sponsor for the cards.They are responsible for establishing standards andprocedures for the acceptance and settlement of membertransactions on a global basis. They provide a global As BIN sponsors, Transact have the necessary electroniccommunications network for interchange - the electronic money permissions, Mastercard® membership and aretransfer of information and funds among Mastercard® licensed by the FSA. Transact is one of the leading Issuingmembers. banks in the field of prepaid“Delivering innovative and flexible solutions to prepaid” 9
  10. 10. INTRODUCTION: OUR PARTNERSMETAVANTE/FIS THAMES CARD TECHNOLOGIESMetavante Technologies is a major financial technology Thames Card Technologies is one of Europe’s largestprovider and payments processor for financial institutions independent manufacturer of plastic cards, providing anand merchants across Europe. end-to-end service including manufacture, personalisation and distribution. Thames has been manufacturing for 10Metavante Technologies is a division of Metavante years and has built a reputation for quality and flexibility.Corporation, a financial and payments Technology Company in Milwaukee, Wisconsin, USA. With 5,700employees at 36 locations and 22,000 resources available in GB GROUPeight countries, Metavante has a loyal and growingcustomer base, serving 8,600 customers in 32 countriesacross the world.Metavante has realised profitable growth in its 43 years ofexistence, with over $1.6 billion in revenue in 2007 GB Group, the UK’s leading identity management business, helps organisations realise the full value of their customer base by recognising and verifying all elements of consumers identity at every interaction. They know that identity matters. Through the application of their leading technology, they protect, predict and provide information that is used to maximise customer value for some of the largest companies in the UK.“Delivering innovative and flexible solutions to prepaid” 10
  11. 11. INTRODUCTION: OUR PARTNERSPAYPOINTPayPoint is a leading branded payment collection network used,primarily, for the cash payment of bills and services andprepayments for mobile telephones and energy meters.There are over 20,000 outlets using PayPoints payment collectionsystems. These include over 18,500 Retail Agents with dedicatedPayPoint Terminals and over 6,000 outlets with EPoS connectionsto PayPoint systems, of which approximately 2600 outlets haveboth a PayPoint Terminal and EPoS OFFICEThe Post Office Ltd is a wholly owned subsidiary of Royal MailGroup Ltd, it has more than 360 years of service, and more than150 products and services, with over 12,000 Post Office® branchesnationwide and a footfall of more than 21.2 million customer visitsper week.The Post Office provide services online, on the phone and face toface and are visited by 93% of the UK adult A screenshot of Blue Sky Prepaid’s Home Page“Delivering innovative and flexible solutions to prepaid” 11
  12. 12. INTRODUCTION: OUR PARTNERSNORWICH CITY FOOTBALL CLUB Blue Sky launched the “Canary Prepaid MasterCard” in conjunction with Norwich City Football Club Plc on 18th July 2011. Since launching, the product has had extremely positive feedback amongst fans and uptake of the card has been highly impressive. Blue Sky built the entire product for Norwich City FC Plc in a matter of weeks and currently operates the website, card fulfilment, customer services and cardholder contact strategy. Blue Sky and Norwich City FC jointly market the product online, in-stadium and in local print media publications. Canary Prepaid offers cardholders access to exclusive prizes including free season tickets, matchday experiences, club vouchers, free cash loads, etc. The product is ideal for fans with children aged 13 and over as Companion Cards help teach teens about money management in their early years.“Delivering innovative and flexible solutions to prepaid” 12
  13. 13. INTRODUCTION: FUNDS FLOW EXPLAINEDFUNDS FLOW EXPLAINED Merchant Bank Transactions MasterCard Mastercard® Settlement Account re Issuer Net Revenue Due Swept to Settlement Account Money coming in via BACS, Card Monthly Bank Reconciliation or Cash Report(s) Issuer re Bank Daily Account Sweep CSV File White Label EPP re White Label Client Blue Sky System Client White Account Label Account Money Into Float Account“Delivering innovative and flexible solutions to prepaid” 13
  14. 14. INTRODUCTION: OUR MANAGEMENT TEAMAMIT PATELChief Executive OfficerAmit has a Bachelors Degree in Banking & International Finance from Cass Business School, London, and is amember of the Chartered Institute of Bankers.Amit spent a number of years working in the Investment Banking and Private Equity community inLondon where he built extensive experience in originating and executing some of the UK’s largest corporatetransactions, including several high profile multi-billion pound buyouts, public-to-privates, joint ventures, fund creations, andfinancial markets arbitrage opportunities.After leaving the City in 2008, Amit set up a lead corporate finance advisory boutique, “AP Corporate Finance LLP”(, advising a range of corporations on mergers, acquisitions, disposals and capital raising. Amit’sfirm, in conjunction with Mukesh Patel, established Blue Sky Card Solutions Limited in early 2010 to capitalise on the high growthindustry that is prepaid payment technology.AP Corporate Finance provides corporate finance advisory services to Blue Sky and acts as its lead counsel where required. Thiscounsel can also be extended to Blue Sky’s commercial partners if desired.Amit brings to Blue Sky a wealth of business development, financing, deal structuring and project management experience, anda strong understanding of commercial partnerships and joint ventures. His primary role in the company is overseeing and projectmanaging all of Blue Sky’s regulatory and technology partnerships, and developing any new commercial partnerships andinitiatives.In addition to the above, Amit is responsible for originating new white label opportunities, and project managing the resultingtechnology and regulatory work streams. He is the main point of contact for white label partners and gives these partners in-depth assistance on maximising value from their newly established prepaid programmes.“Delivering innovative and flexible solutions to prepaid” 14
  15. 15. INTRODUCTION: OUR MANAGEMENT TEAMMUKESH PATELChairmanMukesh is a serial entrepreneur and has over the past 30 years successfully set up and run a number ofbusinesses in a wide range of disciplines, amassing a portfolio worth millions of pounds. Mukesh’s keyskill is spotting commercial opportunities early in their lifecycle, assembling the best team to penetratethe industry and investing into enterprises that successfully participate and profit in these opportunities.Mukesh graduated as an Architect and emigrated to the UK from India is 1979. Arriving in the UK with only enough money tolast a few months, he spotted an opportunity in the automobile spare parts trade and quickly set up a business, “Autoland”from his home in London. Mukesh’s keen eye for value deals and his commitment to excellent service resulted in the businessexpanding at an incredible rate. In its first year Autoland turned over £200k and within 18 months Mukesh had moved thebusiness into an industrial warehouse and took on a number of employees. This part of the business peaked a turnover inexcess of £3 million. During 1998, Autoland was awarded the Queen’s Award for Export Achievement and gained ISO 9002accreditation in recognition of the quality of its service.Wanting to diversify his business, Mukesh saw a great opportunity in distributing fashion labels in the UK and Europe.Leveraging off his logistics and distribution infrastructure and experience, he established “Altec” and acquired distributionrights for three labels. In addition to this, Altec paired up with an experienced design house in Hong Kong to establish a newbrand, now owned by Altec. This part of the business peaked with a turnover of £4 million.In 2000, Mukesh established “Prigee International”, created to capitalise on real estate opportunities in the UK. To date, Prigeehas executed a broad spectrum of deals including; investment, asset management, development, planning and yieldcompression. Prigee’s current investment portfolio is worth £10 million and is across the residential, commercial and industrialsectors. The industrial portfolio has asset management opportunities and is likely to increase the value of the portfoliosignificantly.Today, Mukesh is well known in the business community and his network of contacts and advisers in real estate, industry andretail markets provides him a great number of introductions to excellent business opportunities.“Delivering innovative and flexible solutions to prepaid” 15
  16. 16. INTRODUCTION: OUR MANAGEMENT TEAMNITIN PATELChief Marketing OfficerNitin studied Mathematics & Management at Kings College London. Since that time, he has acquired tenyears experience in sales and marketing for UK based corporates, government organisations and his ownmarketing enterprise. Nitin has built extensive experience in the following disciplines:MARKETING STRATEGY: Understanding business objectives, market research, brand and product in order to structure amarketing strategy.BRAND AWARENESS: Launching long term brand building campaigns in order to bring corporate and product awareness to themarket.DIRECT MARKETING: Deploying ROI sensitive sales campaigns that produce instant, measurable and scalable returns.TACTICAL MARKETING: Deploying advertising campaigns on the ground level that covers all media from above to below theline.Nitin has executed and proven his skill set in varying environments, including financial institutions, telecommunications andmedia companies, government departments and private business ventures.Having left the institutional playing field in 2008, Nitin set up an online marketing company specifically acquiring newcustomers for major high street brands (Apple, Sony, PaddyPower are examples of some). In 2010, he joined forces with Amitand Mukesh to assume the role of Marketing Director for Blue Sky Card Solutions.Nitin brings to Blue Sky a wealth of sales, marketing and brand experience, both strategic and tactical.“Delivering innovative and flexible solutions to prepaid” 16
  17. 17. INTRODUCTION: MANAGEMENT TEAMPRIYA PATEL SIMON ALEXANDERHead of Retail Head of MediaPriya graduated from Kings College Simon graduated from the UniversityLondon with a Bachelors Degree in of Central Lancashire with a BachelorsMathematics and is also a PRINCE2 Degree in Sports Management, andqualified Project Manager. joined Blue Sky in June 2011.After graduating, Priya set up her own fashion boutique on Prior to joining Blue Sky, Simon worked for the largest UKLondon’s famous Westbourne Grove, Notting Hill. She built financial affiliate network company, OMG Services. At OMG,the business from a start up venture to a mature trading and Simon was a Senior Account Manager and he was responsiblehighly profitable enterprise with several high profile celebrity for, among other things, managing some of the UK’s largestcustomers, regularly purchasing runway couture. prepaid providers’ affiliate campaigns, including; Blue Sky Prepaid, Cash Plus, Kalixa, Virgin Money and Freedom toOwing to the extremely difficult trading conditions post name just a few. He was also in charge of running the ADSA2007, Priya took the decision to exit the business and look and Eurostar online affiliate campaigns. He is a very wellfor new challenges. She joined Blue Sky Card Solutions in known and respected professional within UK Prepaid.early 2011 and currently heads up Blue Sky Prepaid’s physicalretail distribution channels alongside the operational side of Simon was recruited owing to the incredible work hethe business. undertook at OMG for Blue Sky Prepaid and also to gain a tactical advantage over Blue Sky Prepaid’s competitors.Priya brings to the team an exceptional understanding ofretailing and distribution and she provides the business with Simon’s role within Blue Sky is to manage the affiliatea strong discipline for processes and accurate and efficient campaign and he also heads up marketing of the company’sproject management. first white label, Canary Prepaid.“Delivering innovative and flexible solutions to prepaid” 17
  18. 18. INTRODUCTION: OUR ONLINE SPONSORSINTRODUCTION – OUR ONLINE SPONSORS“Delivering innovative and flexible solutions to prepaid” 18
  22. 22. BLUE SKY PREPAID PROGRAMMETHE CHEAPEST WAY TO SHARE MONEY One of the greatest benefits of a prepaid MasterCard of this nature is that transferring money to friends and family (domestically or overseas) can be done instantly and for free (no other money transfer technology provides this). The cardholder purchases a Primary Card and a linked “Companion Card”. The Companion Card is then posted to a friend or family member overseas. This person can now regularly receive payments from the primary cardholder. Money is transferred by the Primary Card holder to the Companion Card in real time: ONLINE BY PHONE BY SMS Parent can provide their children with an allowance card. Both the Primary and Companion Card can be used at over 30 million locations and 1.5 million ATM’s worldwide.“Delivering innovative and flexible solutions to prepaid” 22
  23. 23. BLUE SKY PREPAID PROGRAMMEVALUE ADDED BENEFITSCREDIT BOOSTERIf you have had problems with credit in the past, never had credit, been hit by CCJ’sor you’re new to the UK, ‘Credit Booster’ could help improve your credit rating.FREE INSURANCE PROTECTIONAs a Blue Sky Prepaid MasterCard cardholder, you are entitled to the following insurance protection on all purchases made inthe UK – free of charge. This includes: 12 EXTENDED WARRANTY 12 month mechanical breakdown coverage beyond the manufacturer’s warranty on domestic electrical goods MONTHS purchased in the UK on the Blue Sky Prepaid MasterCard. Repair or replacement. £1,000 single item limit and Extended £5,000 annual limit applies. Any items over £50 and industry standard exclusions. Warranty 30 DAY PURCHASE PROTECTION 30 Theft and accidental damage cover for an item purchased on the Blue Sky Prepaid MasterCard in the UK for 30 DAY days from the date of purchase, provided they are not covered by any other insurance. Repair or replacement. £1,000 single item limit, £10,000 for any one event and £25,000 annual limits apply. . Any items over £50 and Purchase Protection industry standard exclusions. 30 DAY PRICE PROTECTION 30 If the cardholder makes a purchase with their Blue Sky Prepaid MasterCard in the UK and then finds the same DAY item at a cheaper price at any retail store anywhere in the UK, the policy will refund the difference. The cardholder must discover the cheaper price within 30 days from the date of purchase. Claims less than £25 and Price greater than £250 excluded. Industry standard exclusions. Protection“Delivering innovative and flexible solutions to prepaid” 23
  24. 24. BLUE SKY PREPAID PROGRAMMEFULL CONTROL OVER YOUR MONEY IN 3 WAYS ONLINE ACCOUNT SMS Balance. View statements, manage cards, PIN order, report lost/stolen etc. Block. Unblock. CUSTOMER Etc. SERVICES (24/7)“Delivering innovative and flexible solutions to prepaid” 24
  25. 25. BLUE SKY PREPAID PROGRAMMEMORE FUNCTIONALITY THAN STANDARD CREDIT CARDS NOT GEOGRAPHICALLY RESTRICTEDSMS FUNCTIONALITY IVR FUNCTIONALITYPower in the hand Power in hand –can decide if you want to speak or notBalance enquiries Balance enquiriesLast 4 transactions Last 4 transactionsBlock or unblock your card - customers can protect themselves if they Block or unblock your card-customer can protect themselves if they havehave mislaid card but don’t want to report lost or stolen until sure mislaid card but don’t want to report lost or stolen until sureLost or Stolen- notify-blocks and triggers replacement card Pin retrievalMoney share –Primary cardholder can transfer funds to a companion card Money share –Primary cardholder can transfer funds to a companion cardCurrency converter- real time link to Mastercard FX rates to understand Speak to customer servicescost of overseas purchase before you buyPremium SMS- New customer can pay for a new card by sending apremium rate TextStore Locator-New customer can type postcode to receive location ofnearest retail outlet to buy a card“Delivering innovative and flexible solutions to prepaid” 25
  27. 27. TARGET MARKETS: FOOTBALL CLUBSFOOTBALL CLUBSAlthough many top flight football clubs have credit cardsbranded in their names, these cards do not add value to theclub’s fans (standard APRs are very high) and are notaccessible to younger fans.Blue Sky will be targeting Football Clubs (premier and lowerleague clubs) to build them a branded prepaid card. Thesecards can be sold to fans and when used in the stadium oronline at the club’s website, the fan will have access topromotions and discounts.The club will also save on merchant fees (usually 3% oftransaction value) when accepting their own prepaid card.The club’s prepaid card can also be developed to be thefan’s all-in-one season ticket and payment card.The prepaid card can be loaded in the stadium, at any highstreet bank, post office or PayPoints, and managed onlinejust like any traditional debit or credit card.The prepaid cards can also be designed to be not only a costsaving and brand exercise but a revenue generating sourcefor the club.Owing to the recent success of Canary Prepaid, Blue Sky isnow in discussions with several other football clubs tolaunch similar products.“Delivering innovative and flexible solutions to prepaid” 27
  28. 28. TARGET MARKETS: EDUCATIONAL ESTABLISHMENTSSCHOOLSSchools have young pupils that can not partake in electronicpayments, yet they are some of the heaviest users of theinternet.Blue Sky can develop a school-branded prepaid MasterCard.The school can provide parents of pupils a “Primary Card”(or our generic Blue Sky card) and an additional “CompanionCard” for the pupil. This provides parents with an easy,reliable and safe way to give their children pocket-money(funds can be transferred between cards in seconds using aSMS text message) and allows the pupils to purchase online.For parental control, certain merchant IDs can be restrictedto block pupils purchasing inappropriate materials.COLLEGES & UNIVERSITIESColleges and universities frequently have a large number ofinternational students enrolled to study A Levels or UKhigher educational courses.Many of these students struggle to acquire a UK bankaccount and in addition frequently require funds to beremitted oversees (either sending money back home or viceversa).Blue Sky can develop a college or university branded prepaidcard to cater for these needs.“Delivering innovative and flexible solutions to prepaid” 28
  29. 29. TARGET MARKETS: TRAVEL (FX) CARDSTRAVEL (FX) CARDSBlue Sky will target companies such as travel agents andtour operators who have a large database of travellingcustomers. Blue Sky can produce a white label prepaid travelcard for this customer base.Travel cards enable travellers to access funds from a card-based product that incorporates the same benefits andprotection provided by traditional travellers cheques. Valueis loaded onto cards over multiple channels in Sterling and isthen converted into the destination currency at apredetermined rate.The FX rate offered can be more competitive than almostany traditional foreign exchange provider, and it will bemore cost effective than using the traveller’s own UK baseddebit or credit card.It is also far safer to use a travel card as if it is lost oversees,it can be blocked instantly using a simple SMS command andthe scope for fraud is largely reduced as the traveller has nocredit agreement with the travel card issuer, i.e. The onlyfunds that can be used are the funds that were loaded ontothe card.Travel cards generate additional revenue streams in theform of FX spreads and so can be more profitable than UK-used only cards.“Delivering innovative and flexible solutions to prepaid” 29
  30. 30. TARGET MARKETS: YOUTHYOUTHToday’s youth (aged between 13-17) are some the highestinternet users, yet they can not shop online as they are notold enough to qualify for a credit or debit card.Currently, the youngster asks his/her parent’s permission toborrow a credit or debit card and the parent must overseethe transaction.Blue Sky will target companies that have a large customerbase of younger people (for example comic book companies,toy manufacturers, youth TV channels, etc) and produce awhite label prepaid MasterCard that can be used by thecompany’s youth customer base to shop online.For company’s that wish to include parental control, specificmerchant codes can be turned off meaning the cards can notbe used to purchase inappropriate materials (thesetransactions will be declined).(MasterCard estimate that by 2010 in Europe, Teen prepaidcards will amount to 7% of total spending on prepaid cards.)“Delivering innovative and flexible solutions to prepaid” 30
  31. 31. TARGET MARKETS: WHOLESALERS WHOLESALERS Many wholesalers currently do not like accepting credit cards owing to the 3% merchant fee that must then be paid to the card processor. This translates to many wholesalers having vast quantities of cash to manage and bank, resulting in security issues and added costs. Blue Sky can build a bespoke white label prepaid MasterCard system for a wholesaler. Once in place, the wholesaler informs its customer base of the new payment system and can also offer added incentives for customers who use the prepaid card. The prepaid card can also be an all-in-one membership and payment card. The clear advantage to the wholesaler is that it can now accept electronic payment, without having to pay any merchant fees and also save on security and cash management costs. The advantage to the customer is that they now have a choice of either paying in cash or via card. The prepaid cards can be built to also generate additional revenue for the wholesaler or purely as a cost-saving and value-adding and brand proposition.“Delivering innovative and flexible solutions to prepaid” 31
  32. 32. MONEY REMITTANCE SOME FACTS BLUE SKY OFFERING COST SAVINGS“Delivering innovative and flexible solutions to prepaid” 32
  33. 33. MONEY REMITTANCE: SOME FACTSMONEY REMITTANCE – SOME FACTS2006 REMITTANCES WORLDWIDE $US 194 BILLION2008 REMITTANCES WORLDWIDE $US 210 BILLION2009 REMITTANCES WORLDWIDE $US 390 BILLION The total remittance flows have been continuously increasing during the last five years. The evolution of the foreign population in the host countries is the most important determinant of remittances (European Commission, 2007). 200 million people (3% of the worlds population) live outside their Country of Birth (World Bank Data 2009). 5.7 million Indian workers abroad sent home $27 billion in 2007 and $35 billion in 2008 to make India the top receiver of migrant remittances, according to the latest World Bank data released in March 2009. Money transfer is growing and will continue to grow due to migrant workers and the mass availability of mobile phones making money transfer available to the mass market including the unbanked.“Delivering innovative and flexible solutions to prepaid” 33
  34. 34. MONEY REMITTANCE: SOME FACTSMONEY REMITTANCE – SOME FACTS The European Commissions statistics agency (Eurostat), has released figures showing that migrants in the European Union sent home approximately €29 billion in remittances during 2008, an increase of €3 billion over 2007. Spain, the UK, Italy, Germany Ireland and France are the prime remitting countries. These six countries account for more than 85% of total EU remittances. Approximately 4.9 million people in the UK population were born outside the UK. In 2009, The World Bank reported outflow of remittances from the UK reached to £4.6 billion, which comprises over 28 million individual transactions, with an average of £164 per remittance. According to the Polish Economy Watch (2007), Polish immigrants sent home in excess of £1billion in the first three months of 2008. The figures, compiled by the National Bank of Poland, showed that £1.1 billion was sent back from Western Europe to family members living in the former Eastern Block country. Remittances sent home by migrants from developing countries exceeded $280 billion in 2009, up from $221 billion in 2006 and more than double the level reached in 2002.“Delivering innovative and flexible solutions to prepaid” 34
  35. 35. MONEY REMITTANCE: BLUE SKY OFFERINGMONEY REMITTANCE – BLUE SKY OFFERINGOur Blue Sky card provides a breakthrough for people whowant to send money oversees on a regular basis; thisdemographic is in the main migrant workers.Not only does the Blue Sky card offer a migrant worker theability to partake in electronic payments, it gives the workerthe ability to send funds back home in a fast, secure and costeffective manner.Until recently, the migrant worker would use moneytransmitters such as Western Union or MoneyGram; theseservice providers charge anywhere between £18-£25 totransmit £250 oversees and it takes a number of days.Now the migrant worker simply purchases a Blue Sky cardand up to two additional companion cards and posts thecompanion cards back home. Once the worker’s main card isloaded with funds, he/she can transfer any amount ofmoney (up to a maximum of £3,000 in one transaction) toone of the companion cards with an SMS text message, at acost of £1.50. The funds are transferred instantly to thecompanion card. The holder of the companion card backhome can use the funds anywhere he/she sees a MasterCardsymbol (online, ATM, subsequent transfer, etc).The following tables highlight the costs savings tocardholders.“Delivering innovative and flexible solutions to prepaid” 35
  36. 36. MONEY REMITTANCE: COST SAVINGSMONEY REMITTANCE – COST SAVINGS The following table highlights the costs associated with sending £200 from the UK to India: TRANSFER FEE EXCHANGE COST TOTAL COST BLUESKY SAVES YOU BlueSky £0.00 £0.00 £0.00 Western Union £8.90 £9.11 £18.01 £18.01 MoneyGram £9.99 £8.79 £18.78 £18.78 MoneyCorp £15.00 £8.70 £23.70 £23.70 Moneybookers £0.46 £12.75 £13.21 £13.21 Nat West £10.00 £18.81 £28.81 £28.81 Barclays £20.00 £17.37 £37.37 £37.37 Lloyds TSB £10.00 £4.36 £14.36 £14.36 The following table highlights the costs associated with sending £200 from the UK to Spain: TRANSFER FEE EXCHANGE COST TOTAL COST BLUESKY SAVES YOU BlueSky £0.00 £0.00 £0.00 Western Union £19.90 £13.74 £33.64 £33.64 MoneyGram £19.00 £13.74 £32.74 £32.74 MoneyCorp £15.00 £5.80 £20.80 £20.80 Moneybookers £0.46 £7.04 £7.50 £7.50 Nat West £10.00 £16.20 £26.20 £26.20 Barclays £20.00 £15.85 £35.85 £35.85 Lloyds TSB £10.00 £3.70 £13.70 £13.70“Delivering innovative and flexible solutions to prepaid” 36
  37. 37. AMIT PATELChief ExecutiveT: +44 (0) 7791 224 126E: amit@blueskyprepaid.comMUKESH PATELChairmanT: +44 (0) 7831 509 209E: mukesh@blueskyprepaid.comNITIN PATEL OFFICEChief Marketing Officer 3rd Floor 7 Hanover SquareT: +44 (0) 7970 970 902 Mayfair, LondonE: W1S 1HQCONTACT US“Delivering innovative and flexible solutions to prepaid” 37