Person To Business Payments On The Web
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Transcript of Person To Business Payments On The Web
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
22
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
33
PRESENTATION PRESENTATION CONTENTCONTENT
• Acxsys Corporation Background
• Industry Background
• The Solution
• Value Proposition
• Project Timelines
44
ACXSYS COPORATIONACXSYS COPORATION
• Formed in 1996 and owned by:
• The architects of INTERAC Association
CREDIT UNION CENTRAL OF CANADA
55
ACXSYS COPORATIONACXSYS COPORATION
ACXSYS INTERACASSOCIATION
FUTUREPARTNERSHIPS
ROYALTY-FREEFOR-PROFIT
SERVICEPROVIDER
BUSINESSDEVELOPER
CORPORATION
BRAND
IMN
LICENSOR OWNER
66
NEW BUSINESSESNEW BUSINESSES
• Cross Border Debit
• INTERAC Email Money Transfer Service
• INTERAC Online
77
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
88
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
99
CANADIANS USE DEBIT MOSTCANADIANS USE DEBIT MOST
Source: Bank of International Settlements
1010
THE COMPETITIONTHE COMPETITION
1111
DIFFERENCESDIFFERENCES
1. Real time
2. Automatic re-direct back to merchant
3. Ubiquitous INTERAC-branded service
1212
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
1313
SERVICE TOURSERVICE TOUR
www.interaconline.com
1414
RELATIONSHIP MODELRELATIONSHIP MODEL
Consumer
Financial Institution
Acquirer
1515
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
1616
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
1717
MERCHANT VALUEMERCHANT VALUE
• Enhance current eCommerce strategy
• No authentication requirement
• Leverages existing eCommerce investment
• Help SME compete
• New revenue stream
• GOOD FUNDS MODEL
1818
COST OF NO GOOD FUNDS COST OF NO GOOD FUNDS MODELMODEL
Source: Cybersource, September 2004
1919
VALUE OF GOOD FUNDS VALUE OF GOOD FUNDS MODELMODEL
Source: Cybersource, September 2004
2020
PROJECT STATUS
2121
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
2222
ACQUIRER STATUSACQUIRER STATUS
• Two Acquirers signed
• Three Acquirers receiving inquiries from merchants and third party providers
2323
COMMITTED MERCHANTSCOMMITTED MERCHANTS
… many more on the way!
2424
CONSUMER MARKETING CONSUMER MARKETING ACTIVITIESACTIVITIES
Phase 1: Back to School Campaign
Phase 2: Holiday Season
July Sep Oct Nov Dec2005 Aug
2525
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
2626
QUESTIONS?QUESTIONS?
Barry CampbellDirector, Business Development
Acxsys Corporation(416) 869-5093
www.interaconline.com