SITEC eCommerce Class 4 Title: Online Payment Presenter: Chan Kok Long, Executive Director (iPay88) Date: 11 August 2015 Venue: The Canvas @ Damansara Perdana

1. iPay88 – ASEAN Leading Payment Company

2. How iPay88 develop its World Class Payment Gateway
Technology – Lesson Learn/Case Study
Consumer Driven
Technology
Laws & Rules Compliance
(Domestic & International)
International Standards
( PCI DSS, EMV, Trustwave & etc )
Acquiring Banks
( Rules,Terms & Cond)
Experience
Fraud Prevention
Payment Services
( World Class)

3. Observing CHANGE
Is the key to integrate a
SOLID and TRUSTWORTHY
Relationship Between Merchant,
Service Provider and Consumers

4. Process Starts by Observing CHANGE

5. “We at iPay88 love Changes”
KNOCKED

6. “What Have Evolved/Changed”
1) Technologies and infrastructures – IT, Gadgets, Mobile, Logistics
1) Buying behavior of the new generations
3) Lifestyles and habits – at age1 kids are playing with ipad
4) High cost and standard of living
5) Everything Fast Pace and must be “Now”
6) Everything Google or search the internet

7. People Search Everything In The Internet
1 result found
We are still searching!
How To Manage My Wife

8. What Have Changed in Our Target Generations
Age Traits
Baby Boomer1946 to 1964
50 to 68
Brick and Mortar
Gen Y
1981 to 1994
20 to 33
80% IT & MobileSavvy
Gen Z
1995 to 2007
7 to 19
100% IT & MobileSavvy
Gen X
1965 to 1985
29 to 49
50 : 50 IT Savvy
Gen alphaBorn after 2010 Beyond IT & Mobile

9. Mind Conflict
GEN Y and Z
“ They buy online and mobile”
and
They don’t understand
why
Gen X and Baby Boomer
“Don’t buy online
or mobile”

10. THE KEY POINTS
GEN Y and Z
They Buy Online
They Pay Online
They Book Online
They Do Everything Online

11. Online – A MUST!
Still Got Problem To Believe And Accept
The Fact?
To Go Online!
Then You Got Big Problem?

12. E-Commerce / M-Commerce Eco-system
Market Place
Fulfillment
Payments
Industry Level
. Very Stable & Matured
. Technology very advance
. Solution Providers abundant
. Reaching Maturity
. High Transactions security
. Regulated by Banks and
Central Bank
. Cyber Laws
. PDPA Act
. Advance payment Technologies
. Big Boys e.g UPS
are very serious
. Improving and
. Still have some challenges
Industry Readiness
What are the changes?
What are the changes?
What are the changes?

13. Changes in Tech & Payments & Opportunities
1) Technologies Convergence
- EMV vs E-Commerce vs M commerce – opportunity???
2) Front End Gadgets e.g smart phone, terminals like NFC, Mpos
etc. Opportunity ???? Touch ‘n’ Go, Restaurants, POS ????
3) Broadband and mobile internet. Coverage vs Speed?????
4) Micro Payments – Gaming & small ticket size
5) Cross Border become Borderless??? Opportunity ??? AEC???
6) Crypto-Currencies????
7) Others???????

14. Generation Gap – Dilemma?
Gen Y, Z and Alpha Gen X
Payment features Payment features
Ease of use Security
Technological Innovation Regulatory & Compliance
Mobile based PC based/Terminals
Higher Fees is OK Lower Fees is OK
Trust Everything Online Don’t Trust Everything Online
Intensity Intensity

15. Gen Y, Z and Alpha – Behaviour Snap shot
Behaviour Impact to Payment
a)Impatient - Simple Payment Process
b)Try New things - New payment method & Technology
c)Curious - Simple payment processes and
instructions
d) Rules are mend to be broken - Divide rules into 2 categories;
i) Must Have ii) Can be changed

16. Payment Features Impact on Cost
Scenario 1
Fast Security Reliability Vs Cost
Scenario 2
Fast Security Reliability Vs Cost
Scenario 3
Fast Security Reliability Vs Cost
Goods Service Tax (GST)

17. In The Past
Security in Payment is
Always
The Main Concern

18. How Matured/Safe is Payment? In a Nut Shell

19. Market Place in a Nut ShellMarket Place in a Nut Shell
Regulatory / Laws & Compliance
TechnologyBusiness Rules
Market
Place
Eco-System
Rules
Of
The Game
Rules
Of
The Game
Rules
Of
The Game
Rules
Of
The Game

20. Payment Gateway very SecuredPayment Gateway very Secured
Country Law
Country Law
CountryLaw
CountryLaw
Laws
Laws
Rules
Rules

21. What Have iPay88 done?
Ensuring payment transactions are being
Carried out
Fast ! Secured ! And Reliable !

22. iPay88 capturing opportunities based on changes
How
iPay88
observe, analyze the trends and changes
and capture
the opportunities !
By
Providing Payment Services
Fast! Secured! And Reliable!

23. iPay88 Capturing Opportunities – How/Ingredients
a) Experience – keep on learning e.g attending seminars
b) Technology Trend and Innovations
c) Regional Presence
d) Policies
e) International Standards and Compliances
f) Learn from others ( Best Practices in all areas of the payment eco-system)
g) Work closely with Card Schemes, Banks, Authorities, Police,
Merchants, related industry like Telco.
h) Case Study – for every attempt of fraud and
breach of procedure and policy

24. © copyright 2012, Ipay88 Sdn. Bhd. all rights reserved
FAMS Admin Module
•File Import
•Definition of
• Rules
• Parameters
• Policies
•Defined by Pre and
Post Trade
• Merchant limit
• Backlist records
• Whitelist Record
File ImportFile Import
Monitoring
Module
Application
Program Interface
API provided:
•Web Services
•Socket
DefinedDefined
ParametersParameters
Return Value:Return Value:
•AllowAllow
•Allow & AlertAllow & Alert
•BlockBlock
•Block & ReviewBlock & Review
Post Trade Processor
Function:
Verify Post Trade defined
Policy for Gateway, House &
merchants
Alert Module
UpdateUpdate
AlertAlert
modulemodule
PostPost
TradeTrade
External Systems
Pre Trade Processor
Function:
Verify Pre Trade defined
policies for Gateway, House
& merchants
L
I
M
I
T
S
L
I
S
T
iPay88 ensuring payments Fast, Reliable & Secure
Fraud Management Overview

25. iPay88 Capturing Opportunities - How
Developed & Launch New Products & Services
i) Pay 4 Me
ii) Payment over ATM & CDM
iii) Mpos
iv) Touch ‘n’ Go
v) E-wallet plus loyalty programs
vi) Singapore payments
vii) Etc !

26. iPay88 Market Leader In Digital Payment Space
TRUST
is the world’s most expensive of intangible things.
It takes years to earn and require consistency
to maintain it.
Our business began and grew on TRUST
And our success today reflect our view on the
Importance of handling TRUST with
Utmost integrity

27. Take AWAY
Online and MOBILE PAYMENTS
WILL BECOME AN IMPERATIVE
INSTEAD OF JUST AN OPPORTUNITY

28. The Good News

29. z
Contact iPay88 at
iPay88 Headquarter
Suite 2A-18-2, 18th
Floor
Block 2A, Plaza Sentral
50470, Kuala Lumpur, Malaysia
Chan Kok Long
klchan@ipay88.com.my
+603 – 2261 4668
Have a question about online payment?
Q & A
www.ipay88.com

30. We combine
smartphones and card
readers to create
Mobile POS Device
Easy and affordable
way to accept card
payments
mPOS: The Game Changer

31. Market Opportunity
Delivery services Self-employed prosumers Groceries & supermarkets
Fast food restaurants Direct sales / Insurance Taxi services
• Allows immediate payment and
removes the need to carry cash
• Drives larger basket size,
impulse purchases and home
delivery, peak hour handling
• Allows card payment upon
delivery instead of cash, reduces
cost of handling cash
• Allow insurance agents/direct
sales agents to collect payment
by card on the spot
• Enables taxi drivers to accept
customers who don’t have
enough cash
• Peak hour queue handling,
increases convenience of
delivery services

33. Opportunity & Threat – Insurance Industry
A CASE STUDY
Great Opportunities
1)New Market Segments – Generation Z and Alpha
“Ping An Insurance Co of China – first to adopt third party payment and launched a
mobile payment and social networking platform named Yiwallet”.

34. Opportunity & Threat – Insurance Industry
Great Opportunities
“A recent report by The Boston Consulting Group and Google said the
percentage of customers purchasing insurance policies online had gone
up steadily over last year. Health insurance buyers had increased from
13 per cent in 2012 to 19 per cent; motor insurance also went up from
13 per cent in 2012 to 16 per cent.”

35. Opportunity & Threat – Insurance Industry
Great Opportunities
2) New Sales Channel With Extensive Reach Globally
“Taikang Life Insurance, PICC Property & Casualty Co., Ltd and China
Pacific Property Insurance partnered Alibaba, to sell insurance policies on
Taobao marketplace platform”.
“ Online insurance sales surged to 29.1 billion Yuan in 2012 and 3.2 billion
yuan in 2011” - Insurance Association of China

36. Opportunity & Threat – Insurance Industry
Great Opportunities
3) New Innovative Products and Services that sells itself in the
digital space.
“Due to changes in target generations, cost
effectiveness, global reach, digital innovations both
devices and applications and information in lightning
speed “.

37. Opportunity & Threat – Insurance Industry
Biggest Threat
“Online retail Giants like Amazon, Taobao, eBay, Rakuten and the local
market place will be the major sales channel to the insurance companies
that eventually they end up too rely or dependent to them that the
insurance companies will loose their bargaining power.”
“Once this happened, online retailers will dictate what policy to sell and
what cannot.”

38. Immediate benefits by Going Online
Online and e-payment improve performance in three areas:
1.Data Mining
The ability to mine the digital data consumers leave behind on the internet, social
media, driving apps and even health-monitoring wearables could help insurance companies to
better target customers, price and underwrite policies more accurately, and manage claims
more effectively.
2 Digitization of existing insurance processes
Allowing quotes to go straight through processing, for example, and rapid product
configuration could yield strong improvement to operating profit margins.
3. Increased digital marketing
Improve opportunity to connect with existing customers, allowing firms to better
upsell, cross sell and retain valuable customers.

39. Benefits To Insurance Companies – Going Online
“Based on our experience, a thoughtful and well plan
online initiative program can deliver up to 65 percent
in cost reduction, a 90 percent reduction in
turnaround time on key insurance processes, and
improve conversion rates by more than 20 percent.” –
Havard Business Review Blog.

40. Success Stories
Over the years iPay88 have been working with insurance companies
in ASEAN to assist them to go online especially in the e-payment
space.
Malaysia – Allianz, Sime Axa Assurance, Tokio Marine, Prudential BSN, Great
Eastern, Sun Life Malaysia and etcs
Philippines – Malayan Insurance
Indonesia – Asuransi Adira Dinamika, PT

41. What Next?
Which ever phase your company is at now
Choosing
the Right
Payment Gateway Provider
is the Key!
To your company e-commerce venture
SUCCESS

42. What make a good Payment Gateway?
3 Most Important Criteria
Criteria #1 Criteria #2 Criteria #3
EXPERIENCE EXPERIENCE EXPERIENCE

43. Payment Gateway ProviderPayment Gateway Provider
 Why?

Experience dealing with Fraud (domestically,
regionally and globally) both credit cards and
ebanking

Experience dealing with Banks and e-wallets such
as Telcos’ e-money and etcs

Experience dealing with Regulatory
Bodies/Central Bank

Experience dealing with each Market Uniqueness.
Example shopping carts and etcs.

Experience dealing with each Country Laws and
regulations

Many others!

44. Payment Gateway ProviderPayment Gateway Provider
Therefore
Good Payment Gateway Provider must have the following
7 areas of Expertise and EXPERIENCES
1.Comprehensive Payment Options
2.State of the art Fraud Management System
3.Reliability
4.Compatibility
5.Cost effectiveness
6.Ease of use
7.Localized (Domestically, regionally and Globally)

45. iPay88 ResumeiPay88 Resume
iPay88 have the following
“World Class”
Payment Gateway experiences
Experience #1

More than 12 years in e-commerce & now including
m-commerce payment in South East Asia
Experience #2

Provide comprehensive payment options

Malaysia, Thailand, Indonesia, Philippines, and
Singapore. We work with all top banks in each country

> 6000 merchants ( Enterprise to Soho )

46. iPay88 ResumeiPay88 Resume
 Experience #3

> 1 Million transactions a month & still growing rapidly

Awards winning payment solutions
 Experience #4

State of the art Fraud System (FAMS)

Conformed to all Key International Security Standards

Used in Malaysia, Philippines, Indonesia etc

Soon to be in Thailand and Singapore
 Experience #5

Many satisfied customers

Enable our customers increase sales revenue, profit and market
share (New Market Segment)

Increase operational efficiency and reduce tremendous cost

47. “Groupon views iPay88 as a partner to provide convenience
for shoppers, as consumers can now easily purchase
products and services online. The options to make payments
are via credit card or online banking. Users can pay safely
and securely with iPay88’s solutions. With the support from
iPay88, Groupon has grown to become one of the largest e-
commerce companies in Malaysia.”
Joel Neoh, CEO of Groupon Malaysia
Satisfied and Happy Client

48. Moving Forward
No More
“What” and “Why”
Rather
“When” and “How”
And
“Who”

49. iPay88 Sdn Bhd
ASEAN LEADING
PAYMENT GATEWAY

50. Our Vision
To become a leading one-stop comprehensive
payment company in ASEAN
Our Mission
To enable borderless e-business
through state-of-the-art payment eco-system
and staff enrichment

51. Payment Devices
notebook computer POS terminal smart tablet
phone
Overseas
Remittanc
e
Overseas
Remittanc
e
Telegraph
y Transfer
Telegraph
y Transfer IBFTIBFT
Payout
Direct
Link
Direct
Link
Virtual
Termina
l
Virtual
Termina
l
Email
Paymen
t
Email
Paymen
t
Virtual
Link
Virtual
Link
Auto
Debit
Auto
Debit
Multi
Paymen
t
Multi
Paymen
t
Online Payment Services
CASHCASH
MANAGEMENTMANAGEMENT
Payment Gateway Features
Payment
Switch
✓Intelligent
routing
✓Payment
network
synchronize
✓Bank’s
Merchant ID
management
Fraud
Filtering
✓Rule base
fraud filter
✓Black list
database
✓Frequency
check
CRM &
Marketing
✓Loyalty
redemption
✓Customer
support
✓SMS/Email
integration
✓Affiliate
network
User
Interface
✓Multi-
language
ready
✓Multi-
platform
✓Customize
template
✓Mobile-
optimization
ready
Analytics &
Reporting
✓Report
automation
✓Trend
analysis
✓Customize
reports
Finance &
Accounting
✓Reconciliatio
n
✓Settlement
✓Fraud
management
and
cancellation
✓Forex
exchange
Security &
Monitoring
✓PCI DSS
compliance
✓Token
authorization
✓Online store
audit
✓Server
monitoring
Product & ServicesProduct & Services

52. Philippines
Malaysia
China
Singapore
Australia &
New
Zealand
Indonesia
Thailand
Vietnam Coming
Soon
iPay88 Regional Partners

53. Over 6,000 e-merchants in ASEAN
region crossing over 30 different industries
have chosen iPay88 as their trusted online
payment provider