Payments For Online Communities

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A new way for online social networks and other web communities to get paid easily.

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Payments For Online Communities

  1. 1. Payment-Enabling Online Communities Patrice Peyret – CEO, Plastyc, Inc.
  2. 2. Monetizing Pains <ul><li>… target their ads better because users remain largely anonymous </li></ul><ul><li>… get paid efficiently for small items (music, avatar accessories..) </li></ul><ul><li>… get paid by those < 18 (unless they cheat with an under-age PayPal account) </li></ul><ul><li>… pay out anyone efficiently for their contributions </li></ul><ul><li>… click on ads because they interfere with social interactions </li></ul><ul><li>… stack up “funny money” that can be used only at one site </li></ul>Users don’t… Online Communities can’t…
  3. 3. UPside Visa ® <ul><li>The only payment system fully optimized for online communities </li></ul>
  4. 4. UPside Visa ® Basics <ul><li>Available to anyone >13 with built-in parental controls for minors </li></ul><ul><li>Universal works online & offline </li></ul><ul><li>Safe Visa’s zero liability Compliant with KYC & USA Patriot Act </li></ul><ul><li>Efficient for micro-transactions Interchange fee is refundable to partner merchants for <$3 payments </li></ul><ul><li>Manages points / digital currencies with built-in loyalty purse </li></ul><ul><li>Two-way money flows via pay-out interface </li></ul>4000 GOOD THRU 03/10 DEBIT CARDHOLDER NAME 4000 0000 0000 0000
  5. 5. The Cardholder experience <ul><li>… into a re-loadable Visa ® prepaid card </li></ul><ul><ul><li>Accepted anywhere online & offline </li></ul></ul><ul><ul><li>With parental controls for those <18 </li></ul></ul><ul><li>Receive money from… </li></ul><ul><ul><li>Parents </li></ul></ul><ul><ul><li>Jobs </li></ul></ul><ul><ul><li>Friends </li></ul></ul><ul><ul><li>Online marketplaces </li></ul></ul><ul><li>Monitor & manage the card </li></ul><ul><ul><li>From any PC </li></ul></ul><ul><ul><li>From social network profile </li></ul></ul><ul><ul><li>Via cell phone </li></ul></ul>… earn points while shopping offline online HELP 4000 GOOD THRU 03/10 DEBIT CARDHOLDER NAME 4000 0000 0000 0000
  6. 6. Benefits to Young Users <ul><li>More ways to receive money: parents, jobs, friends, communities they contribute to </li></ul><ul><li>Ability to demonstrate financial responsibility as early as 13 </li></ul><ul><ul><li>Separate web access for parents and teen (minor) cardholders </li></ul></ul><ul><li>More buying power and less gift cards clutter </li></ul><ul><ul><li>Less fees </li></ul></ul><ul><ul><li>Rewards (not air-miles of course), including cash back </li></ul></ul><ul><li>21 st century access: Facebook, mobile </li></ul><ul><li>Belong & participate: share money with / give to friends be paid for contribution to communities / marketplaces ambassador/referral system </li></ul>
  7. 7. Benefits to Online Venues <ul><li>without hoping for the parent’s “borrowed” credit card… </li></ul><ul><li>Keep bringing them back </li></ul>No integration required - No cost Get paid directly by anyone >13 Allow them to earn your points or digital currency from their everyday activities Give them monetary rewards without counting on under-age PayPal accounts Offer in-statement promotions& coupons Advertise more efficiently to them as they are payment-enabled and no longer anonymous … and with micro- transaction efficiency
  8. 8. Making it work with NO change to website … getting paid: By anyone >13 <ul><li>… distributing cash: </li></ul><ul><ul><li>Direct-to-card: </li></ul></ul>Partner’s Bank Plastyc’s Bank Single wire transfer for aggregate of all payouts + .csv payout instruction file <ul><li>… linking digital currency or points to brick-and-mortar life: </li></ul><ul><ul><li>via card’s loyalty engine </li></ul></ul>Load salary Shop <ul><li>… advertising smartly: </li></ul><ul><ul><li>to registered users </li></ul></ul>Link community namespace to cardholders’ profile database Simply accept Visa debit cards Make bulks of points or currency available to Plastyc <ul><li>… optimizing small payments: </li></ul>Partner’s Bank Plastyc’s Bank Refund of interchange fees on micro-transactions 4000 GOOD THRU 03/10 DEBIT CARDHOLDER NAME 4000 0000 0000 0000 4000 GOOD THRU 03/10 DEBIT CARDHOLDER NAME 4000 0000 0000 0000 4000 GOOD THRU 03/10 DEBIT CARDHOLDER NAME 4000 0000 0000 0000 4000 GOOD THRU 03/10 DEBIT CARDHOLDER NAME 4000 0000 0000 0000 4000 GOOD THRU 03/10 DEBIT CARDHOLDER NAME 4000 0000 0000 0000 HELP 4000 GOOD THRU 03/10 DEBIT CARDHOLDER NAME 4000 0000 0000 0000
  9. 9. Economics for Online Communities <ul><li>Enable teens to be autonomous buyers </li></ul><ul><li>Advertise to payment-enabled profiled users </li></ul><ul><li>Direct-to-Card distribution of monetary rewards </li></ul><ul><li>Extend Digital Currency or Points to offline world </li></ul><ul><li>Micro-sell small-ticket items </li></ul><ul><li>Increase spending on games, music & other digital goods by >2X when no longer limited to parental credit cards </li></ul><ul><li>Increase CPM & CPC rates and boost click-through rates </li></ul><ul><li>Eliminate costs of mailing checks and PayPal merchant fees </li></ul><ul><li>Generate rewards from the 80% of young consumer purchases made offline </li></ul><ul><li>Reduce cost of small transactions from 25% down to 5% </li></ul>NO set-up costs - NO recurring costs
  10. 10. Summary <ul><li>We payment-enable the online youth at no cost to web venues and no modifications to existing shopping carts </li></ul><ul><ul><li>Young users who have become independent purchasers (from their parents) buy more </li></ul></ul><ul><ul><li>Payment-enabled users are more likely to click on ads and buy products => advertising to them commands higher CPM or CPC rates </li></ul></ul><ul><li>We expand existing affinity/rewards programs to youth payment cards </li></ul><ul><li>We facilitate the distribution of monetary rewards to members of online communities </li></ul><ul><li>UPside Visa is uniquely optimized for the youth & connected market: web, mobile & Facebook access + lowest priced </li></ul><ul><li>UPside Visa has the most add-on services for online venues: </li></ul><ul><ul><li>Programmable affinity engine </li></ul></ul><ul><ul><li>Brand-able web 2.0 websites </li></ul></ul><ul><ul><li>Online dashboard that can dynamically include merchant offers </li></ul></ul><ul><ul><li>Zero-fee mass pay-out interface </li></ul></ul><ul><ul><li>Micro-transactions optimization </li></ul></ul>
  11. 11. A Few Words About Us… …follow
  12. 12. About Plastyc <ul><li>“ Virtual Bank for the Youth” (no branches, online pure-play) </li></ul><ul><li>under contract with a VISA licensed bank </li></ul><ul><li>Launched in Dec’06 under “UPside” brand </li></ul><ul><li>Offices in Silicon Valley & NYC </li></ul><ul><li>Repeat entrepreneurs in consumer technologies </li></ul><ul><li>First CTO of GemAlto, the world’s largest card vendor (’89-’94) </li></ul><ul><li>Founded software start-up Integrity Arts, sold to Sun Microsystems to build J2ME (’95-’99), now in 2B devices </li></ul><ul><li>Founded telecom start-up Mobileway (’00-’06), sold to Sybase now managing 30B SMS messages/year </li></ul><ul><li>Focusing on the $100B gap between cash and credit cards for the 13-25 demographic </li></ul>
  13. 13. Architecture All Merchants User authentication system BIN Sponsoring Bank Cardholders Profiles Points or Digital Currencies Pay-Outs Loyalty Employers’ Banks Parents’ Banks Enrollment & Access Parents Users Transaction Processing Engine Standard Payment Protocol Partner Merchant Monetary Rewards µ-Tx optimization Small Purchases Reporting
  14. 14. Check us online… <ul><li>Parents enrollment </li></ul><ul><li>Parents enrollment for zero-fee teen product </li></ul><ul><li>Parent card management </li></ul><ul><li>Teen/Student Enrollment and card management </li></ul><ul><li>Teen/Student mobile access </li></ul><ul><li>Teen/Student Facebook access </li></ul><ul><li>Rewards Mall </li></ul><ul><li>Financial literacy </li></ul><ul><li>Ambassador’s Network </li></ul><ul><li>Soon (for Credit Unions) </li></ul><ul><li>UPsideVisa.com </li></ul><ul><li>UPsideClear.com </li></ul><ul><li>UPsideAccount.com </li></ul><ul><li>UPsideCard.com </li></ul><ul><li>wap.UPsideCard.com </li></ul><ul><li>apps.facebook.com/upsidecard </li></ul><ul><li>UPsideMall.com </li></ul><ul><li>SpendResponsibly.com </li></ul><ul><li>UPsideLounge.com </li></ul><ul><li>ModohCard.com </li></ul>

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