Real-Time Bank Transfers The merchants perspective

Transcription

1 Delphine Bos Marketing Manager GlobalCollect Real-Time Bank Transfers The merchants perspective Online Banking as a European Internet Payment System March 23, 2006, Karlsruhe

2 Agenda About GlobalCollect Merchants challenges and expectations Real time banking key benefits Merchants experience Further developments in Europe

3 GlobalCollect, International Payment Services Over 12 years of successful track record of payment collection and reconciliation worldwide One single technical and administrative interface enabling online merchants to accept:» Credit and debit cards» Real-time and offline bank transfers» Direct debits» Invoices and e-invoices» Cheques GlobalCollect is privately owned and independent from its banking partners 60 million transactions in 2005 and over 40% growth expected in 2006

4 Companies with successful strategies

5 Merchants need to avoid many hurdles Currencies Instructions, Languages Security Data protection Payment methods Speed Buy?

6 Global E-payment landscape Important regional cultural differences in payment behaviors Difficult break through of new payment methods Slow harmonization of payment processes through bank collaboration and international legislation Currency convertibility issues International transfer of funds barriers

7 The choice of payment methods is large Local bank transfers: 192 countries Real-time banking: 8 countries Credit & debit cards: 158 currencies Direct Debits: 20 countries Checks: 50 currencies

8 Local payment behaviors Preferred payment methods 100% 90% 80% 70% Methods 60% 50% 40% Credit Card Bank Transfer Direct Debit Real Time Banking Other Payment 30% 20% 10% 0% Germany Belgium Netherlands Italy Finland Great Britain United states Countries

9 Local Bank Transfers General Push mechanism No reversal risk (guaranteed payments) No interchange percentage GlobalCollect specific Matching of payments via unique reference numbers 95% of payments reported within 7 days Local GlobalCollect bank accounts available in 50+ countries Additional options Real Time Bank Transfers Hosted Invoicing Service

10 Real-Time Bank transfers General Pull mechanism Online payment method: real-time response No reversal risk (guaranteed payments) No interchange percentage GlobalCollect specific Merchant specific text on consumer s bank statement One single interface for several country (or bank) specific real-time banking payment methods Country specific Belgium ING HomePay Germany Online Überweisung Sweden Nordea E-payment Denmark Nordea E-payment Finland Nordea E-payment The Netherlands ideal Austria All AllEPS banks

11 Payment methods comparative analysis Credit Card Direct Debit Bank Transfer Real Time Banking Cheque Initiated Customer Customer Speed Costs Charge back risk Fraud Risk

12 NL: ideal General Online payment method / Real-time response No reversal risk (Guaranteed payments) Payment time limit (max 1 hour) Redirect payment method PULL mechanism GlobalCollect specific Merchant s name as beneficiary (besides GlobalCollect) Transaction specific text on consumers bank statement can be set by merchant Transaction specific return URL (incl. variables) Full back-up capabilities: GlobalCollect platform connected with all ideal acquirers (ABN AMRO, ING and Rabo)

13 Evolution of ideal s usage: Zylom Media 100% Sum of # 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% CC Online 11,63% 11,53% 11,20% 9,36% 11,05% 11,09% 9,90% 10,03% 9,47% 10,13% Direct Debit 76,04% 77,06% 76,02% 79,74% 77,02% 73,27% 71,17% 69,88% 67,02% 71,04% Bank Transfer 12,34% 11,41% 12,78% 10,91% 11,93% 7,80% 6,72% 8,04% 7,06% 5,23% Real-time Bank Transfer - ideal (809) 0,00% 0,00% 0,00% 0,00% 0,00% 7,84% 12,21% 12,06% 16,45% 13,60%

14 ideal s (Dutch Realtime Bank Transfer System) Impact on Sales of one of GlobalCollect s Merchants ,0 % 17,6 % 19,5 % Sep-05 Oct-05 Nov-05 Dec-05 ideal Direct Debit Credit Card Bank Transfer

15 Industry customization Success rate of ideal per payment industry On-line Games 49,92% 50,08% Softwares 40,00% 60,00% Successful unsuccessful Ticketing 68,11% 31,89% 0,00% 20,00% 40,00% 60,00% 80,00% 100,00% 120,00%

16 ideal, the merchant s perspective Secure and simple via a familiar bank environment Guaranteed Last minute payments possible Fast PROS Reasonable costs CONS Not available through all the Dutch banks yet Lack of unity amongst participating banks

17 DE: Online Bank Überweisung General Online payment method / Real-time response No reversal risk Payment time limit (max 1 hour) Redirect payment method using a Java applet PULL mechanism Number of compatible banks > GlobalCollect specific Merchant specific text on consumers bank statement

18 DK/SE/FI/NO: Nordea E-payments General Online payment method / Real-time response No reversal risk Redirect payment method PULL mechanism Possible listing on Solo market place GlobalCollect specific Merchant specific text on consumers bank statement One agreement for Denmark, Sweden, Norway and Finland

19 Case study: Zylom - Sweden 100% Sum of # 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% CC Online 31,25% 36,99% 27,66% 38,17% 41,57% 36,08% 36,56% 32,99% 40,28% 36,53% Bank Transfer 53,13% 51,37% 60,99% 52,69% 45,18% 52,53% 50,54% 56,70% 49,76% 48,50% Real-time Bank Transfer - Nordea E-betalning (805) 15,63% 11,64% 11,35% 9,14% 13,25% 11,39% 12,90% 10,31% 9,95% 14,97%

20 BE: ING Home Pay General Online payment method / Real-time response No reversal risk (Guaranteed payments) Redirect payment method PULL mechanism Limited technological capabilities (no flexible descriptors) Only ING to ING payments New Maestro multi-bank solution in development (based on Mastercard Securecode) GlobalCollect specific Available through WebCollect

21 Case study: Zylom - Belgium 100% Sum of # 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% CC Online 31,58% 29,57% 25,26% 35,32% 36,92% 35,06% 37,84% 31,69% 35,29% 25,63% Bank Transfer 66,32% 67,74% 72,63% 61,93% 60,51% 62,55% 59,07% 63,79% 62,18% 72,20% Real-time Bank Transfer - ING Home'Pay (801) 2,11% 2,69% 2,11% 2,75% 2,56% 2,39% 3,09% 4,53% 2,52% 2,17%

22 AT: EPS General Online payment method / Real-time response No reversal risk Redirect payment method PULL mechanism Only EPS banks (+90% of all Austrian banks) Rebranded as EPS Payment Method (instead of individual bank branded) GlobalCollect specific Available through WebCollect

23 Other European Developments Italy: Various mono-bank and multi-bank products no relevant penetration (yet) Norway: new multi-bank standard (Nordea independent) Denmark: e-dankort Sweden: multiple mono-bank products (SE Banken, etc) Finland: multiple mono-bank products (Sampo Bank, etc) France: no major product in development Spain: no major product in development UK/Ireland: no major product in development Switzerland: no major solution in development Eastern Europe Baltic states: supported by roll out of Scandinavian banking products No other relevant country developments

24 In conclusion A potential real alternative to credit cards GlobalCollect will keep on monitoring new developments and integrate relevant real time banking solutions By making technical integration and contractual agreements easy for merchants, Payment Service Providers have a key role to play for the success of real time bank transfers.

25 Thank you for your attention!