How Banks are Utilizing Multiple Channels to Maximize Acquiring Business

1. How Banks are Utilizing Multiple
Channels to Maximize Acquiring
Business
Verinite Cards Conclave
Philippines, 2019
Think Cards, Think Verinite !

2. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate 2
Local Customer Behavior Indicators
4%
Local Annual E-com
Average Revenue Per
internet User
59%
Local Customer
preference of Real-
time shopping
43%
Avg time spent by
local Netizen daily
online
Sources: Miscellaneous reports and Data available on Public domain (Guardian and Statista )

3. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate 3
Merchant Acquiring Business – Drivers Vs Inhibitors
Merchant
Convenience
Customer
Experience
CommoditizedBusiness
Market
Disruptors
Regulatory
Push
Competition
InnovativePricing
CrossSellBusiness
OperationsSupport
ValueaddedServices
DiminishingMargin
Fraud&SecurityConcerns
OperationalOverhead
FrequentTechnology
upgrades
Customer
Behavior
Channels
Drivers
Inhibitors

4. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate 4
Global Trends
Omni Channel
Payment
Instant Settlement
Collaboration
QR Code Based
Payment
m-POS

5. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate 5
Global Trends: Omni-Channel Payment
▪ Seamless payment
acceptance
▪ A unified view of
transaction coupled with
reconciliation and data
analytics
▪ Seamless
customer
Experience
▪ Effortless
recon and data
insight for
merchant
▪ Less Impact of
change in
customer
behavior
ControllingInhibitors
PoweringGrowthDrivers
Value PropositionTrends
Critical Considerations
▪ Initiate, process and
complete purchase from
multiple channels with equal
ease
▪ Ensure availability only on the channels that your customers use

6. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate 6
Global Trends: Instant Settlement
▪ A higher MSF/ MDR can
be applied for this facility
▪ Cross-Sell opportunities
▪ Merchant
convenience
with
immediate
cash flow
▪ Improves
Merchant
loyalty
▪ Reduces
stickiness with
other Market
disruptors
ControllingInhibitors
PoweringGrowthDrivers
Value PropositionTrends
Critical Considerations
▪ Instant settlement for
customer purchases
▪ Significant offering for
Medium and Small Business
owners
▪ Customer Disputes and Fraudulent Merchants

7. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate 7
Global Trends: Collaboration
▪ Stabilize MSF / MDR for
merchants
▪ Shared expenses
▪ Save on Interchange fees
▪ One point
solution for
Big Merchants
▪ Reduce
competition
▪ Stabilize Profit
Margins
ControllingInhibitors
PoweringGrowthDrivers
Value PropositionTrends
Critical Considerations
▪ Attaining regional / global
reach through mergers
▪ Addressing investment
needs to compete with
Technology players
▪ Regulatory interventions and mandates regarding data privacy

8. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate 8
Global Trends: QR Code Payments
▪ Quick On-boarding for
Merchant
▪ No expenses for POS
devices or network
Infrastructure
▪ Cost effective
solution for
Merchants
▪ Increase
presence in
Small and
Medium
Merchant
segment
▪ Reduce
Operational
Over heads
▪ Align with
customer
behavior
ControllingInhibitors
PoweringGrowthDrivers
Value PropositionTrends
Critical Considerations
▪ It’s more of a trend in
Eastern world
▪ Institutional embrace: with
countries providing platform
for Interbank QR code
payments
▪ Managing Data Security and Frauds

9. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate 9
Global Trends: m-POS
▪ Less expensive
compared to traditional
POS Devices
▪ Reduces queue at
Merchant outlets
▪ Cost effective
solution for
Merchants
▪ Reduce
Operational
Over heads
ControllingInhibitors
PoweringGrowthDrivers
Value PropositionTrends
Critical Considerations
▪ One of the most rapidly
growing channel for card
based transactions
▪ New features like biometric
verification, and any place
checkout
▪ Data security concerns and a rise in cybercrimes

10. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate
Still on the Fence??

11. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate 11
Bottom Line Enhancers: Innovative Pricing
1
Innovative Pricing
Competitive MSF/ MDR
Beyond MSF / MDR
Flexible Pricing Options
▪ Scale counts in acquiring
▪ Terminal Management Fees
▪ Fraud Management Fees
▪ Account Inactive Fee
▪ Allow multiple pricing options
(Bulk, Tiered, Interchange+)
depending on Merchant
Segment

12. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate 12
Bottom Line Enhancers: Value Added Services
2
VAS
03
Integrated
02
Advanced
01
Basic
▪ DCC
▪ Funding
▪ Chargeback Support
▪ Advanced Reporting
▪ Analytics & BI
▪ Tokenization
▪ Consumer and Merchant
Loans
▪ Advanced Fraud
Management
▪ Advanced Data analytics
▪ Omni-Channel Report
▪ Personalized Loyalty
Program
▪ ERP Solution

13. © 2019 Verinite - All rights reserved
All work described was performed by Verinite or a Verinite affiliate 13
Bottom Line Enhancers: Merchant Ops support
3
Operations
01 02 03
On-Boarding
▪ Automated End to End
workflow
▪ Defined process for
review, underwriting
and approval
Servicing
▪ Well trained Customer
Service
▪ Improve satisfaction
and reduce attrition
Processing
▪ Support Account
Settlement, statement
and reconciliation
▪ Transaction processing

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