1. Why Regulation will Ignite
Innovation in Travel Payments
Presented by:
John Chaplin, Ixaris Systems Ltd
Xavier Ginesta, Voxel Group
John Howell, Multicom

2. New Payments Regulation &
Impacts on the Merchant

3. What is happening
•
Regulators increasingly intervening in payments
–
–
–
–
Concern about average payment costs
Industry structure prevents efficiency gains being shared
Difficult for new market entrants to have success
Retailer abuse of surcharges in some cases
•
EU is leading the charge and national regulators are following major proposals announced in July, if approved, implementation
2014-16
•
Card schemes continue to make new rules
– Especially in customer data protection
– Rules apply to banks but merchants
are affected
Confidential and Proprietary Information | © 2013 Ixaris System Ltd

4. July EU proposals that impact merchants
•
Interchange rates to be capped at lower levels, especially for credit
•
Plan to harmonise domestic and x-border rates
•
Card acquirers to be allowed to operate pan-Europe at lowest cost
•
Merchants can make separate decisions on accepting debit and credit
•
Merchants cannot surcharge debit or credit
•
Acceptance of commercial cards and T&E cards is optional and
surcharging is allowed subject to limits
Confidential and Proprietary Information | © 2013 Ixaris System Ltd

5. The likely outcomes of EU proposals
•
Proposals could be scaled back as total package is large and complex,
and timing may slip
•
Pan-European card acquirers will develop
•
Transaction charges to merchants will drop but
– Consumers will have to pay higher fees
– Some of the reduction will be clawed back by higher service and scheme fees
•
Enforcement of no-surcharging rules because of consumer pressure
•
Some unexpected consequence is inevitable
Confidential and Proprietary Information | © 2013 Ixaris System Ltd

6. What it means for the pre-paid industry
•
However the EU changes happen, some directions are clear
•
Charges for payments are more likely to be explicit
•
Products and services will have to deliver real benefits to users to
justify charges
•
Prepaid is the best payments platform on which
to innovate and new market entrants will be key
•
Not keeping up with regulation changes is a bad option
Confidential and Proprietary Information | © 2013 Ixaris System Ltd

7. Thank you!

9. Streamlining the Invoice Settlement Cycle

10. Voxel Group. Facts & Figures
400+ Travel operators worldwide,
including most major US, UK and
German operators
Present in 40+ countries and Market
leaders in major leasure tourist
destinations such as Spain, France,
Italy,
Portugal,
Greece,
Turkey,
Caribbean, etc.
20.000+ hotels and
suppliers worldwide
50.000.000+ electronic
handled per year
other
tourist
transactions
EUR 30B+ Total amount of invoices
processed in 2013

11. Top 3 Reasons Why Invoices Are Necessary
11
Avoiding overpayments
22
VAT refund regulations
33
Good corporate governance

12. Top 3 Challenges with Invoice Settlement
11
Invoice processing costs
22
Cost of international wire transfers
33
Administrative costs and risks

13. Streamlining the Invoice to Pay Cycle
Hotel1
1
2
3
4
5
Central Servers
Head
Office
Travel
Operator
Hotel2
baVel
Manager
baVel
Manager
...
6
Hoteln
9
8
7

14. Conclusions
The combination of ebilling and VCC payments retains the advantages
of waiting for an invoice prior to issuing a payment while:
11
Virtually cuts down to 0 the invoice processing costs
22
Eliminates costly international wire transfers
33
Eliminates risks and administrative costs
44
Effectively turns a costly procedure into a
revenue stream generator

15. Thank you!

17. World Travel Market 2013
Date:
5th November 2013

18. Multicommerce
• Who are Multicom?
• What do we do?
• Multicom’s FindandBook™
• WebVoyage
• PowerSearch
• MultiCommerce
• Why should you talk to us?
• Recognised UK market leader
• Reliable scalable technology
• Technology that will grow your business

19. Multicommerce
• What is PCI/DSS?
• Why is it important to you?
• Customer confidence
• Fines and increased service fees for non-compliance
• Increased security

20. Multicommerce
Ok so what will I need to change to be compliant?
• Anything that uses or has access to card information
• All websites that are bookable
• Desktop selling systems
• Mid and back office systems
• Staff training
• Paying product suppliers (airlines, hotels etc)
• All your IT providers that handle cards must be compliant

21. Multicommerce
Your business is to sell more travel to your customers
Our business is to provide the best technology to grow your business
So How can we help you grow your business?
• Flexible dynamic packaging
• Global travel marketplace
• Enterprise ecommerce platform
• Strong partner network
• Secure clever payments system

22. Multicommerce
Do you want help keeping on top of regulations like PCI/DSS?
Do you want to grow your company sales or move into new
product areas?
Are you looking to make efficiency savings in terms of reconciliation or
card fees?
Then come and see us on stand TT258 where we are co-exhibiting
with Ixaris!

23. Thank you!
www.ixaris.com