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Monetising Mobile Payments

Or why banks are REALLY worried about mobile payments
Clarity in Payments © 2013
This is where it began…

Clarity in Payments ©2013

www.clear2pay.com

2
Mobile Players were naïve when entering the payments
market

Clarity in Payments ©2013

www.clear2pay.com

3
The transactional pie is much smaller than they thought

Clarity in Payments ©2013

www.clear2pay.com

4
How the pie is split for a €100 transaction
0,9%
I/C

6,4¢
Trx fee

0,6%
Mark-up

2,2%
MSC

0,65%
Scheme Fee

€0,90

€0,064

€0,60

€2,20

€0,65

Cost
Revenue

Pays:
• Annual card fee
• Usage fees

Pays:
Pays:
• Program costs
• Not applicable
• Scheme membership
• Transaction + scheme fees
• Internal cost

Pays:
• Card scheme fee
applicable
• Interchange fee
• Merchant
recruitment costs
and support

Pays:
• Merchant Service
Charge
• Terminal costs
• Setup costs

Pays:
• Marketing support
for members
• Network
infrastructure

Gets:
• Cardholder
benefits

Gets:
• Interchange revenue
• Cardholder card fee
• Interest revenue

Gets:
• Acquirer markup
• Margin on terminals
• Set up and certification
fees
• Value added services

Gets:
• Acceptance of
additional payment
methods

Gets:
• Scheme fees
• Processing fees
• VAS fees

Clarity in Payments ©2013

Gets:
• Setup and usage
(transaction/volume)
fees
• Maintenance fee

www.clear2pay.com

5
Recently Banks have lost touch with their customers…
Clarity in Payments ©2013

www.clear2pay.com

6
And were scared of others getting intimate with
their customers

Clarity in Payments ©2013

www.clear2pay.com

7
However, in the Universe of payments, PayPal is Uranus

Global Card Transactions
US$30 trillion

PayPal
US$60billion

Clarity in Payments ©2013

VISA
US$4 trillion

www.clear2pay.com

8
The burden of regulation stops new players from growing

Clarity in Payments ©2013

www.clear2pay.com

9
All of which creates an unfavourable environment for
mobile payments

Clarity in Payments ©2013

www.clear2pay.com

10
The key is to ‘forget’ transaction revenues and
focus on information

Clarity in Payments ©2013

www.clear2pay.com

11
Banks are ill-equipped to meet this challenge

Clarity in Payments ©2013

www.clear2pay.com

12
Clarity in Payments ©2013

www.clear2pay.com

13
EMEA – Headquarters
Brussels, Belgium
info@clear2pay.com

APAC
Sydney, Australia
info.apac@clear2pay.com

Americas
Atlanta, USA
info.americas@clear2pay.com

www.clear2pay.com

Clarity in Payments © 2013

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Mobile Convention Brussels - Ainsley Ward - Clear2Pay

  • 1. Monetising Mobile Payments Or why banks are REALLY worried about mobile payments Clarity in Payments © 2013
  • 2. This is where it began… Clarity in Payments ©2013 www.clear2pay.com 2
  • 3. Mobile Players were naïve when entering the payments market Clarity in Payments ©2013 www.clear2pay.com 3
  • 4. The transactional pie is much smaller than they thought Clarity in Payments ©2013 www.clear2pay.com 4
  • 5. How the pie is split for a €100 transaction 0,9% I/C 6,4¢ Trx fee 0,6% Mark-up 2,2% MSC 0,65% Scheme Fee €0,90 €0,064 €0,60 €2,20 €0,65 Cost Revenue Pays: • Annual card fee • Usage fees Pays: Pays: • Program costs • Not applicable • Scheme membership • Transaction + scheme fees • Internal cost Pays: • Card scheme fee applicable • Interchange fee • Merchant recruitment costs and support Pays: • Merchant Service Charge • Terminal costs • Setup costs Pays: • Marketing support for members • Network infrastructure Gets: • Cardholder benefits Gets: • Interchange revenue • Cardholder card fee • Interest revenue Gets: • Acquirer markup • Margin on terminals • Set up and certification fees • Value added services Gets: • Acceptance of additional payment methods Gets: • Scheme fees • Processing fees • VAS fees Clarity in Payments ©2013 Gets: • Setup and usage (transaction/volume) fees • Maintenance fee www.clear2pay.com 5
  • 6. Recently Banks have lost touch with their customers… Clarity in Payments ©2013 www.clear2pay.com 6
  • 7. And were scared of others getting intimate with their customers Clarity in Payments ©2013 www.clear2pay.com 7
  • 8. However, in the Universe of payments, PayPal is Uranus Global Card Transactions US$30 trillion PayPal US$60billion Clarity in Payments ©2013 VISA US$4 trillion www.clear2pay.com 8
  • 9. The burden of regulation stops new players from growing Clarity in Payments ©2013 www.clear2pay.com 9
  • 10. All of which creates an unfavourable environment for mobile payments Clarity in Payments ©2013 www.clear2pay.com 10
  • 11. The key is to ‘forget’ transaction revenues and focus on information Clarity in Payments ©2013 www.clear2pay.com 11
  • 12. Banks are ill-equipped to meet this challenge Clarity in Payments ©2013 www.clear2pay.com 12
  • 13. Clarity in Payments ©2013 www.clear2pay.com 13
  • 14. EMEA – Headquarters Brussels, Belgium info@clear2pay.com APAC Sydney, Australia info.apac@clear2pay.com Americas Atlanta, USA info.americas@clear2pay.com www.clear2pay.com Clarity in Payments © 2013