Person To Business Payments On The Web

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PERSON TO BUSINESS PAYMENTS ON THE PERSON TO BUSINESS PAYMENTS ON THE WEB WEB PRESENTATION TO TREASURY MANAGEMENT ASSOCATION OF CANADA VANCOUVER, BRITISH COLUMBIA 24 JUNE 2005 THE CANADIAN SOLUTION THE CANADIAN SOLUTION

Transcript of Person To Business Payments On The Web

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PERSON TO BUSINESS PAYMENTS ON PERSON TO BUSINESS PAYMENTS ON THE WEBTHE WEB

PRESENTATION TOTREASURY MANAGEMENT ASSOCATION OF CANADAVANCOUVER, BRITISH COLUMBIA24 JUNE 2005

THE CANADIAN SOLUTIONTHE CANADIAN SOLUTION

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MESSAGESMESSAGES

• This is the Canadian solution

• INTERAC Online is not debit

• eCommerce in Canada is real

• Consumers see value

• Merchants see value

• Roll out just started

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PRESENTATION PRESENTATION CONTENTCONTENT

• Acxsys Corporation Background

• Industry Background

• The Solution

• Value Proposition

• Project Timelines

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ACXSYS COPORATIONACXSYS COPORATION

• Formed in 1996 and owned by:

• The architects of INTERAC Association

CREDIT UNION CENTRAL OF CANADA

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ACXSYS COPORATIONACXSYS COPORATION

ACXSYS INTERACASSOCIATION

FUTUREPARTNERSHIPS

ROYALTY-FREEFOR-PROFIT

SERVICEPROVIDER

BUSINESSDEVELOPER

CORPORATION

BRAND

IMN

LICENSOR OWNER

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NEW BUSINESSESNEW BUSINESSES

• Cross Border Debit

• INTERAC Email Money Transfer Service

• INTERAC Online

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417

1,100

2,000

2,400

3,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1999 2000 2001 2002 2003

Val

ue o

f Pu

rcha

ses

($00

0,00

0)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Num

ber

of H

ouse

hold

s ('00

0)

Value of Purchases Number of Households

GROWTH IN INTERNET GROWTH IN INTERNET SPENDINGSPENDING

Source: Statistics Canada

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WHERE ARE THEY BUYINGWHERE ARE THEY BUYING

• Travel

• Consumer Electronics

• Home Products

• Apparel

• Computer Hardware / Software

% of Total1

14%

13%

13%

11%

9%

1. Source: Forrester Research, October 2003

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CANADIANS USE DEBIT MOSTCANADIANS USE DEBIT MOST

Source: Bank of International Settlements

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THE COMPETITIONTHE COMPETITION

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DIFFERENCESDIFFERENCES

1. Real time

2. Automatic re-direct back to merchant

3. Ubiquitous INTERAC-branded service

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INTRODUCING INTRODUCING INTERACINTERAC ONLINEONLINE

• A new online payment service that allows consumers to pay for goods and services on the Internet directly from their bank accounts

• Alternative to existing payment options

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SERVICE TOURSERVICE TOUR

www.interaconline.com

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RELATIONSHIP MODELRELATIONSHIP MODEL

Consumer

Financial Institution

Acquirer

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INTERACINTERAC DIRECT PAYMENT DIRECT PAYMENT VERSUSVERSUS

INTERACINTERAC ONLINE ONLINEFACTOR

SERVICE PROVIDER

COST vs. PRICE

AUTHENTICATION

HARDWARE

LIABILITY FOR FRAUD

INTERAC Direct Payment

INTERAC Association

Non-profit / 3B txn

Card & PIN

Terminals / PIN Pads

Voluntary DCCP

INTERAC OnlineINTERAC Online

AcxsysAcxsys

For profit / ? txnFor profit / ? txn

Login ID & PasswordLogin ID & Password

NoneNone

Mandatory DCCPMandatory DCCP

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CONSUMER VALUECONSUMER VALUE

• Canadians spent $3B+ on Internet shopping in 20031

• 75% of these shoppers indicate concern about Internet transactions1

• 73% of online shoppers or online bankers are interested in the service2

• Provides options2

• No need for parent’s credit card2

• No need to worry about debt2

1. Source: Statistics Canada, September 20042. Strategic Counsel, October 2004

KEY DRIVERSKEY DRIVERS

Security Security

Freedom Freedom

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MERCHANT VALUEMERCHANT VALUE

• Enhance current eCommerce strategy

• No authentication requirement

• Leverages existing eCommerce investment

• Help SME compete

• New revenue stream

• GOOD FUNDS MODEL

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COST OF NO GOOD FUNDS COST OF NO GOOD FUNDS MODELMODEL

Source: Cybersource, September 2004

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VALUE OF GOOD FUNDS VALUE OF GOOD FUNDS MODELMODEL

Source: Cybersource, September 2004

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PROJECT STATUS

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ISSUER ROLL OUT SCHEDULEISSUER ROLL OUT SCHEDULE

Mar Apr May Jun July Sep Oct Nov Dec2005

RBC Royal Bank

Scotiabank

BMO

TD Canada Trust

Aug

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ACQUIRER STATUSACQUIRER STATUS

• Two Acquirers signed

• Three Acquirers receiving inquiries from merchants and third party providers

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COMMITTED MERCHANTSCOMMITTED MERCHANTS

… many more on the way!

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CONSUMER MARKETING CONSUMER MARKETING ACTIVITIESACTIVITIES

Phase 1: Back to School Campaign

Phase 2: Holiday Season

July Sep Oct Nov Dec2005 Aug

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MESSAGES RECEIVED ?MESSAGES RECEIVED ?

• Unique Canadian offering

• Not debit as we know it

• Canadians are buying online

• Value exists

• It’s not too late to participate

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QUESTIONS?QUESTIONS?

Barry CampbellDirector, Business Development

Acxsys Corporation(416) 869-5093

[email protected]

www.interaconline.com