Accepting 16 digit payments V116122014

Tel: +44 (0)1992 500589 Email: info@invapay.com ©Invapay
2014
Accepting
16 Digit Payments
Sid Vasili
CEO
Sid.vasili@Invapay.com
+44 7875 268 416

2014
2014
The world of business and trade…has it really evolved?
Payments are designed around Regulation, old technology and in
some cases out of date thinking/ hardware / mainframe systems.
Access to credit is still restricted by banks and the regulatory
environment.
The banks are in the process of modernising but are constrained by
Regulation, Tier 1 & 2 Capital requirements, culture and technology.

2014
2014
Growing frustration for Suppliers…
Accepting 16 Digit Accounts can be expensive.
Contracting with an acquiring bank can be fraught with difficulty,
minimum flow expectations, rolling reserves, up to 28 days settlement.
Installation of equipment can be complicated and adds cost.
The cost per transaction is considered high – L3 is very expensive.
Once they are a “Merchant” there are no guarantees that other buyers
will also want to use their 16 Digit Accounts with them.

2014
2014
…and it’s no different for Buyers
Perceived lack of control over “PCard” as staff use multiple suppliers,
Card in Hand Transactions tend to be Level 1.
Management of transaction data is difficult and the availability is limited.
Reconciliation & System integration can be complicated and costly.

2014
2014
We think too many people have been at this point…
…but we have been working hard to provide you with an alternative.

2014
2014
Introducing Invapay…our aim is to overcome the old frustrations.
Connected to 800 banks across the Globe.
We operate globally.
Our Platform processes all major currencies.
Enhance and optimise Working Capital ,incremental revenue
streams and access to On-Demand, Off Balance Sheet Credit.

2014
2014
Add ePayments to your
solution
Enhance Rebate/Discount
opportunities
Invapay ePayments for Partners
Seamless integration or
SFTP
Enhance your Supplier
relationships accelerating
payments to improve their
Cash Flow.

2014
2014
Maximum integration at the flick of a switch…
• Implement our secure cloud-based solution anywhere in the world.
• Corporate buyer’s account is fully operational within 24 hours.
• Aftersales support to guide suppliers through enablement and set up.
• The buyer’s procurement team can upload supplier details. In addition, the
automated message service sends instructions to suppliers explaining set up.
The Invapay Guarantee means all authorised suppliers will be
part of your customer’s ePayment ecosystem*.
*Our guarantee is subject to the supplier meeting our strict Credit Check requirements.

2014
e
Buyers
System
Invapay Acquirer Client
Account
Vendor
Submission
of Vendor
Details
API INPUT
KYC to Approve
Vendor
Acq Forward to
VISA VMAS
Supplier
Approva
l
Payment
Submission
API INPUT
Request received
and charged to 16
Digit Account
Funds Acquisition
16 Digit Account
Acquirer
VISA
Issuer
Buyer Supplier
Account
Bank
Reconciliation File
process
Payment Request
Payment
Confirmation
Validate Payment
Payment Net of
Invapay Fee
Vendor Receives
Payment via EFT
Remittance
advice +
Fee Invoice
EndEnd
Invapay Collaboration and Dispute Resolution Process
1 2
3
4
Go/No
Go
5
6
Yes
No
9
87
10
11
13
12
Invapay ePayment Process Flow

2014
Invapay
Portal
InvapayERP
External Payment
Control
Buyer - Client Bank
A/C
Vendor
Daily
Submission
of Archived
transactions
Daily
transaction
file imported
into ERP
External
Cashbook
Daily Bank
Statement to
show funds
received from
Acquirer
Reconciliation
against funds
received at Bank to
External Cashbook
Authorise and post
reconciled transactions
INVAPAY OPERATIONAL
COMPANY
Fee Transaction Records
Imported
Vendor
Receives
Payment via
EFT
Remittance
created &
emailed to
Vendor
1
2
3
9
8
7
12
Invapay – Multi-Company ERP – Process Flow
XML to move Fee Amounts from
Client A/C to Operational A/C
Generate Payments and
send technical validation
file to Barclays
Fee Invoice
created &
emailed to
Vendor
5
6
10
Review Report and
authorise with 2 signatures
Operational Bank A/C
Print updated report and
attach to authorisation file
Barclays Status Report
confirmation. Authorise
with 2 signatures.
Transmit validated XML file
to Barclays to complete
payments.
11
13
External Cashbook
Acquirer
External Sub-Cashbook
Buyer COMPANY
Invoice Transaction Records
Imported
Review and post
reconciled transactions
4
17
Status Report confirmation
and file is processed for
Payment in Sage
14
15
16

2014
2014
You may not have heard of us but all these people are working with us…

2014
2014
…and this is what they say about us
“Working with Invapay has helped us change the way finance
and purchasing operates. It’s a very clever system.”
Head of Global Finance Shared Services – Telco
“An organisation which is using technology in a very smart way.
It simply enables acquirers to solve the problems in the industry and
increase turnover with little effort.”
Ed Chandler, CEO, Kalixa Payments Group
Invapay has been
approved to the
highest standards
Visa has a significant focus on digitization of the B2B payment and our
partnership with Invapay supports our joint endeavor to simplify the
payables process for organizations. We recognize Invapay’s ability to
deliver extended payment terms through a Visa 16 digit account number,
while securing accelerated payments for the supplier community. The ease
of Invapay’s supplier onboarding processes allows organizations to reap the
benefits of an automated payables solution quicker.
Olivia Leong, Head of Commercial and Prepaid Payment Solutions,
Visa Asia Pacific.

2014
Savings Matrix

2014
2014
Pricing calculation based on average transaction value of $750.00 USD
Invapay Customer Supplier
Early Settlement Discount 2.35% $17.63
Transaction Charge $1.25
Cost of Fraud
(3/4 basis point)
$5.63
AP Savings Customer Specific
VAT /Tax Risk
0*
*Level 3 Line Item Tax
data for transaction
Rebate
(rebate 50 BPS)
$3.75
Savings See following slides
Invapay Pricing Example
Note: Costings subject to client requirements

2014
2014
Annual Spend $25 Million $50 Million $100 Million $250 Million $500 Million $1 Billion
No. of Invoices
(Average invoice
value $750.00)
33,333 66,667 133,333 333,333 666,667 1,333,333
Cost of funds
(50 basis points)
137,500 275,000 550,000 1,375,000 2,750,000 5,500,000
Fraud
(3/4 basis point)
187,500 375,000 750,000 1,875,000 3,750,000 7,500,000
Rebate
(50 basis points)
125,000 250,000 500,000 1,250,000 2,500,000 5,000,000
Total cost to
process spend BAU
25,200,000 50,400,000 100,800,000 252,000,000 504,000,000 1,008,000,000
Total cost utilising
Invapay API
25,062,500 50,125,000 100,250,000 250,625,000 501,250,000 1,002,500,000
Total savings
utilising
Invapay API
137,500 275,000 550,000 1,375,000 2,750,000 5,500,000
Cost Saving Schedule – InvaPay API

2014
2014
No. of Invoices
(Average invoice value
$750.00)
33,333 66,667 133,333 333,333 666,667 1,333,333
FTE Processing cost
(Average processing cost
$19.10 per invoice )
636,666 1,273,333 2,546,666 6,366,666 12,733,333 25,466,666
InvaBuy
(rebate 50 basis points)
24,425,833 48,851,666 97,703,333 244,258,333 488,516,666 977,033,333
Total savings
utilising InvaBuy 574,166 1,148,333 2,296,666 5,741,666 11,483,333 22,966,666
Cost Saving FTE - InvaBuy
Average cost to process an
Invoice: $19.10 USD
Invoice exception Rate: 16.1%
Exception rates have not
significantly reduced in 10 yearsSource: Ardent Partners 2013

2014
2014
Invapay API
25,062,500 50,125,000 100,250,000 250,625,000 501,250,000 1,002,500,000
Total savings
utilising
Invapay API
137,500 275,000 550,000 1,375,000 2,750,000 5,500,000
Cost Saving – Quick view summary
InvaBuy
24,425,833 48,851,666 97,703,333 244,258,333 488,516,666 977,033,333
Total savings
utilising InvaBuy
574,166 1,148,333 2,296,666 5,741,666 11,483,333 22,966,666

Accepting 16 digit payments V116122014

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