Ukash open doors to cash


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  • Tried Ukash once but I'm more used to Paysafecard. It is a little bit easier to use and is accepted by more online games.
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Ukash open doors to cash

  1. 1. 10/31/2011 OPEN THE VIRTUAL DOORS TO CASH Andrea McGeachin Commercial 1
  2. 2. Cash spent online delivers significant growth Have to use cash - no formal mechanism to pay Want to use cash - dont want to use card online online • 38% of UK consumers with internet access do not • 90% of consumers fear online fraud (Source: shop online (ONS) Shopsafe). Cebr predict the e-commerce fraud will grow from £165.2m in 2011 to £195.3m by 2015 – • "Reports of the death of cash are premature. Cash registering annual growth of 4.3%. is not only alive, its thriving” (British Retail Consortium) • 50% of consumers don’t shop online due to fear of fraud (Verisign). • Cash accounts for c. 55% of retail transactions (BRC) • Just 31.3% of the 55+ group shop online compared with 73.4% of 35-44 year olds (Verdict) • 60% of consumers are more likely to shop at a website if alternative payment options are offered • Global Collect research demonstrates an uplift in (e-consultancy) conversion of over 20% when 4 or more new payment methods are
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  5. 5. What do the businesses gain from accepting cash? % 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• These consumers; • Pay their utilities with cash every week • 23% of the 3m daily online Bingo players use cash to deposit and do so 2-3 times per week • Most e-commerce misses these
  6. 6. Cash online reaches rest of the world Russia - 91% of card users only use to get cash out of the ATM 67% of EU Australia adults do Over 60% of not have a 55+ age group card to use fear fraud Brazil online online population 203m and 37.4% online Cash is key South Africa requirement Population 49m and 80% use prepay as methods to online
  7. 7. Cash brings security to merchants • Assured funds – this really does mean zero charge backs • Cash is collected from over 500,000 locations across 6 continents with security / guarantees in place • All monies collected are in a regulated manner kept segregated until its time to settle to the merchant • Cost of handling cash versus all the processes to handle cards and the administration is circa 1.25%
  8. 8. • Customers go to local shops, Post offices, Interactive kiosks and ATM’s • Give cash in local currency to receive a voucher back • Vouchers can be cards, receipts, SMS messages –
  9. 9. Comparing pre and post-paid solutions Consumer chooses to pay with cash Sale Stock voucher completes shipped Uses Assured funds to Refunds prepaid merchant (no- would be voucher chargebacks) re-issued voucher back to user Post paid has to wait for customer to go to shop before any goods can be shipped. 2 part payment
  10. 10. Managing risk and compliance Similar risks and targeting by fraudsters as cash in banks; the companies take risk management seriously • Dedicated risk/compliance team and anti-money laundering Anti-money laundering capability procedures • Ukash, like some others have full E-Money license (EMLI) - ensures compliance with the FSA/e-money regulatory practices • This is achieved through: - Full KYC of all distribution & redemption partners - Management of voucher limits by geography, partner FSA regulation Risk & End-to-end and per voucher voucher and Compliance traceability - Full traceability of each voucher from issuance to compliance redemption - Traceability of cash through e-money is supported by all the official police and crime management authorities Introduction of new Customer Management & KYC
  11. 11. Cash Solutions What is it Geography Benefits Costs to Other reach consumer considerations Pre-Paid voucher 48,000 POS – UK Assured funds ZERO Smart Voucher patented No registration 500,000 + in 55 Variable values solution for promotional £5 - £500 countries Simple user usage experience Change given Post-paid UK only Assured funds ZERO Merchants can get 35,000 POS Simple user logistics issues awaiting No registration experience user to go and pay, or not. Pre-paid voucher 26,000 UK POS Assured funds 2% Part of the Paysafe Group No registration 250,000 EU Simple user £20 - £100 experience Pre-paid 26,000 UK Assured funds ZERO Use CashTicket in E- voucher/card 350,000 POS in 26 No registration Commerce category No registration countries Post-paid 26,000 UK Assured funds ZERO Only available to No registration merchants on PSP platform PrePaid Cards Pre-paid 20,000 – 26,000 UK Card process 2%-6% various fees Consumers not really Registration seeing as a cash solution required
  12. 12. Cash online growth 12x overall eCommerce growth over 3 years • Cash eCommerce has grown 532% or 85% compound – Source: Ukash audited sales growth as featured in the 2011 Tech Track 100 list • General eCommerce has grown 43% or 13% compound – Source: IMRG Capgemini e-Retail sales index grew from 4737 to 6797 between Aug 08 to Aug
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