Post on 17-Jun-2015
Winning in Corporate PrepaidWhy a Processor is Not Enough
Prepaid & Emerging PaymentsEurope 2013
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Corporate prepaid is the most lucrative segment in prepaid and can provide new revenues to banks with corporate clients
Corporate Prepaid Transaction Volume
European Potential Transaction Volume by 2015Source: Visa Europe 2011
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Global Potential Transaction Volume by 2015Source: MasterCard 2012
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Concept
2003: Visa’s first virtual prepaid card program in 2003 (EntroPay)
Innovation
2010: Developed comprehensive platform for rapid creation of diverse prepaid applications
Technology
2013: Serving 20+ corporate clients with solutions across most Corporate prepaid segments
Solutions
Ixaris has 10 years experience delivering prepaid solutions
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1. We will look at 3 corporate prepaid solutions we have deployed in the past 6 months
2. Each solution is based on an underlying prepaid card program - is the card program on its own enough to deliver the solution?
3. How much of the functionality would you expect to be provided out of the box from a mainstream (your) processing platform?
4. What platform capabilities would be needed to deliver these programs without any IT development?
What does an FI need to deliver profitable fit-for-purpose solutions to demanding corporate clients?
Confidential and Proprietary Information | © 2013 Ixaris System Ltd
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Case 1: Payroll Services company serving international clients placing ex-pats in far flung places
Payroll Services Provider
Employer 1 Employer 2 Employer …
Employee in Country X
Employee’s family in Country Y
Transfers funds to family quickly and cost-effectively
Pays bills in Country X as well as Country Y
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The Problem / Opportunity
– Market of around 1M+ workers earning up to $20,000 pa = $20bn
– International employers e.g US contractors sourcing labourers from Kosovo to work within US Army bases in Afghanistan
– Worker needs access to funds to make purchases and pay bills at home as well as in country where based
– Must give their family access to funds quickly and cost-effectively. Their family may well be unbanked
– Employers want a simple solution that works everywhere and is transparent
Case 1: Payroll Services company serving international clients
The Challenges
– Payroll provider required fixed price per account opened and per payment made
– Minimal use (withdrawal of salary in a single ATM transaction) must be free
– Internet access not guaranteed everywhere so fall-back SMS interface
required
– Cheap bank transfers / bill payments in worker home country required
– Reliable delivery of cards to inhospitable / hard to reach places
– Co-ordination of collection and verification of KYC documents
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Case 2: Internet booking engine serving large travel agents sourcing flights, hotel accommodation, car hire, etc
Travel Agent 1 Travel Agent 2 Travel Agent …
Travel Services
Search for travel services via diverse parameters
Collect and return info on matching services
Travel Services Booking Engine Complete order
and payment
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The Problem / Opportunity
– Clients sources ~€1bn of travel services for its clients
– Actual order and payment was happening separately – an obvious gap in the service
– IBE saw an opportunity to provided a value-added service, and therefore a revenue opportunity
– Wanted to be able to optimize costs through a variety of card types
– Wanted to be able to add features such as multi-currency, credit, escrow, etc in future
Case 2: Internet booking engine serving large travel agents sourcing flights, hotel accommodation, car hire, etc
The Challenges
– Cards needed to be issued to the Internet Booking Engine so that they are
an intrinsic part of the service
– IBE did not want to handle client funds so funding had to be managed
separately
– IBE did not handle payments previously and did not want to have to become PCI
compliant
– Needed to be able to handle cancellations and refunds
– 3-way reconciliation a critical requirement
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Case 3: Marketing services provider wanted to create stand-out incentives programs for major brands
Incentives Platform
Third-party sales staff Inside sales people Front line support staff
Brand 1 Brand 2 Brand …
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The Problem / Opportunity
– Global Prepaid Exchange estimates a European corporate incentives market of around €34bn
– Major brands are keen to incentivise front line staff, particularly those working at third-party distributors
– Money is the preferred incentive in Europe, but cash payments are seen as too impersonal and not sufficiently emotive – but branded prepaid cards can solve that
Case 3: Marketing consultancy wanted to deliver stand-out incentives programs for major brands
The Challenges
– User experience must live up to the expectations of the brand
– Must compete economically with non-cash rewards such as gift vouchers which cost less than
their face value
– ATM cash withdrawal capability to be suppressed due to tax
implications of cash payments
– Business intelligence essential to confirm how used
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Delivering and supporting corporate prepaid solutions requires much more than card processing
Delivery channels
Applications
Platform mgmt
Support systems
Card processing
Authorisation / Settlement
Chargeback processing Card lifecycle
Production, packaging,
delivery
AML (KYC, PEP&Sanctions
AML events)
Dispute Management Anti-fraud
Reporting and Business
Intelligence
Accounting and Billing
Support and eCRM
Deployment workflow
Corporate funds
management
Platform User Management
End-to-end Monitoring
Incentives Payroll Purchasing T&E / Expenses Disbursements
Web UI SMS API
Confidential and Proprietary Information | © 2013 Ixaris System Ltd
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The nuances of each solution need to be implemented by tuning functional and look+feel aspects of several modules
UK Payroll Services Provider
Travel Services Booking Engine
Major Beverages Brand
?? ?How to set up these solutions on this architecture?
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Case 1: Deliver a universal bank account alternative, managing complex funds flows between several parties
UK Payroll Services Provider
Travel Services Booking Engine
Major Beverages Brand
Most modules needed, with appropriate configuration
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Case 2: Automate most program operations and make accessible via API for complete embedding in booking engine
UK Payroll Services Provider
Travel Services Booking Engine
Major Beverages Brand
API-driven solution with no human cardholders
Confidential and Proprietary Information | © 2013 Ixaris System Ltd
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Case 3: Design every end-user interaction in line with the desires of the brand manager
UK Payroll Services Provider
Travel Services Booking Engine
Major Beverages Brand
Modules configured for desired user experience and branding
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Introducing: Ixaris Payments Server – we have put together a middleware package that sits over a basic processing switch
Payments Server
Proven with Ixaris’ own corporate clients
PCI-compliant, in-the-cloud for rapid deployment – no IT integration needed
Ready-to-market, highly configurable corporate prepaid applications
Full lifecycle : client configuration, on-boarding, monitoring and support
Just bring your own BINIn-built switch (Postilion)
Option 1: In-the-cloud
e.g. ACI BASE 24
Option 2: Your existing switch
e.g. FIS
Option 3: Third-party Switch
Confidential and Proprietary Information | © 2013 Ixaris System Ltd
Summary
1. Corporate clients want solutions not prepaid programs
2. To deliver satisfactory corporate prepaid solutions quickly and profitably, more than a traditional card management platform is needed
3. Ixaris Payments Server is a full-featured flexible payments platform that provides rich applications and operational support systems
4. Ixaris Payments Server can be deployed over existing processing rails, turning legacy switches into a comprehensive platform
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Thank you
Appendix 1: Ixaris Payments Server Screenshots
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Console Home
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Configuration Tools
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Fund Forward Configurator – Look & Feel Section
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Platform Performance Dashboard