The Future of Payments

Transcription

1 1 The Future of Payments An Educational Session Presented by Unitec and Priority Payment Systems Disclaimer The opinions of the contributors expressed herein do not necessarily state or reflect those of the International Carwash Association, its directors or employees. Reference herein to any specific commercial products, process, or service by trade name, trademark manufacturer, or otherwise, shall not constitute or imply an endorsement, recommendation, or support by the International Carwash Association. The International Carwash Association makes no warranty, express or implied, nor does it assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, product, or process described in these materials.

2 2 Disclaimer Continued All commentary and information provided by the speakers represents individuals opinion only. International Carwash Association makes no recommendation or representation regarding such market information and commentary. All such information and commentary is subject to change without prior notice. Any prediction, estimation and projection is not necessarily indicative of future performance and is for reference only. International Carwash Association will not accept any responsibility or liability of any kind with respect to such information or opinion expressed herein. Investment involves risk. Past performance of any business opportunity is no guide to its future performance. The information or investment opportunities expressed herein may not be suitable for all investors. Before making any investment decision, investors should read and understand the relevant nature, risks, terms and conditions of an investment opportunity and be capable of and wiling to assume the associated risks in light of their own investment objectives, financial circumstances or particular needs and exercise their independent judgment. If needed, investors should seek independent professional advice. Notice It is the policy of the International Carwash Association to comply with all antitrust and competition laws. The fundamental objective of the antitrust laws is to protect and promote free and fair competition. These laws reflect the belief that a competitive marketplace will enable consumers to obtain the highest quality goods and services at the lowest price. The Association supports the public policies embodied in these laws, and it is the Association's policy to comply fully with them. Thus, out of an abundance of caution, if today's discussion appears to implicate, to any degree, prohibited topics such as pricing, price fixing, market allocation, boycotts, exclusive dealings, resale restrictions or preferential treatment, such discussion shall be terminated immediately. Any questions about the propriety of a discussion should be raised immediately with the Association s legal counsel.

3 Intro & Agenda» Payment Processing in Today s Marketplace John V. Priore President & CEO for Priority Payment Systems» Future of Payment Processing Sean Kiewiet CIO for Priority Payment Systems» Payments and the Car Wash Industry - Past, Present and Future Michael White Director of Strategic Planning and Business Development for Unitec Oh, How Times Have Changed We started here We evolved to here And today, technology and innovation are the key. 3

4 4 Payment Processing in Today s Marketplace John V. Priore President & CEO Priority Payment Systems Payment Processing in Today s Marketplace: U.S. Credit Card Usage Estimated Number of Credit Card Holders in the USA o 181 Million Estimated Number of Credit Cards in the USA o Million The number of debit cards in the USA o 530 Million (projected number in 2012 from U.S Census) Annual Purchase Volume of US Credit Card (2011) o $2.1 Trillion One-Third of Americans Do Not Own a Credit Card

5 5 How Credit Card Processing Works Issuing Banks»Citi»Wells Fargo»Chase Acquirers/Processors»FirstData»TSYS»Priority Payment Systems»Bank of America Authorization Capture/Settlement Payment Processing in Today s Marketplace: Benefits of Accepting a Credit Card Increase Revenue Convenient and Flexible Form of Payment Safer Than Cash Distinguish Company from Competition

6 6 Future of Payment Processing Sean Kiewiet CIO Priority Payment Systems Future of Payment Processing: Additional Key Stats: Global mobile payments will reach $1.3 trillion in 2017 More than 2/3 of mobile transactions now use alternative methods In 2017 more than half of all mobile payments will be remote and will total $730 million 1 in 3 consumer brands will integrate payment into their branded mobile apps by % of retailers said their top priority for the new year is tablets & mobile Source: Listed by MforMobile:comScoreMobile Advisor July 2012/Carlisle & Gallagher 2012/Nielsen 2012

7 Future of Payment Processing: Recurring Billing This payment option allows a single purchase of a good or service to be billed to an account in multiple segments, over a period of time agreed between a cardholder and merchant. Benefits: Cardholders Ensuring timely payments Eliminating the time and expense associated with initiating manual payments Providing conveniance with quick access to billing details and payment options online Merchants Increased customer loyalty Increased customer service value Improves cash flow Reduces cash handling and check management Improves overall business efficiency Future of Payment Processing: RFID Radio Frequency Identification which refers to small electronic devices that consist of a small chip and an antenna. The RFID device serves the same purpose as a bar code or a magnetic strip on back of a credit card; it provides a unique identifier for that object. An RFID device will work within a few feet of the scanner. This technology can help streamline drivers visits to the car wash and improve customer satisfaction can also be used as part of a customer loyatly program. Can be deployed at unattended car wash stations, where customers drive up to payment kiosks, select the type of wash they want, pay and follow instructions to enter the automated car wash tunnel. 7

8 Future of Payment Processing: Future of Payment Processing: Data Security/EMV EMV (stands for Europay, MasterCard, and Visa) is an open standard set of specifications for smart card payments and acceptance devices. EMV chip cards contain embedded micro-processors that provide strong transaction security features and other application capabilities not possible with traditional magnetic stripe cards. Visa has set Oct 2015 as a deadline for merchants to install EMV payment terminals in stores, and the end of 2017 as the deadline for gas stations featuring pay at the pump terminals to accept EMV payment for assume the liablity and cost of disputed credit card transactions. 8

9 9 Payments and the Car Wash Industry Past, Present and Future Michael White Director of Strategic Partnering and Business Development Unitec Oh, How Times Have Changed We started here We evolved to here And today, technology and innovation are the key.

10 Payments Trends Club Cards Mobile Wallet Mobile Coupons Scan Code/QR Code EMV Smartcard Cell Phones NEW & FUTURE PAYMENT OPTIONS Proximity Mobile Payment Mobile Coupons In 2010, 12.3 million Americans used a Mobile Coupon (according to Emarketer) In 2012, the number grew to 34.7 mobile coupon users in the US. In 2013, the number is expected to approach 50 million. It is 10x more likely that a mobile coupon is redeemed than a paper coupon. 10

11 11 NEW & FUTURE PAYMENT OPTIONS Proximity Mobile Payment Bar Code-Enabled Proximity Mobile Payment Another form of mobile payment utiliing bar codes. A two-dimensional QR/(2D) bar code is displayed on a Smartphone and presented to an optical scanner for payment. In the US, Starbucks has rolled out a QR/2D bar code application to all of company-owned stores. NEW & FUTURE PAYMENT OPTIONS.

12 NEW & FUTURE PAYMENT OPTIONS Mobile Wallet Proximity Mobile Payment Mobile Wallet allows consumers to store and manage their credit, debit, prepaid cards, gift cards and loyalty cards on their Smartphone using a singular payment application. Numerous NFC-enabled payment and mobile marketing applications have been piloted and implemented. In the US, ISIS and Google have pilots going on currently. Do I really need to accept CREDIT?????? It is estimated that in the US Retailers and Banks spend roughly $40b on personnel to handle cash In a recent study by DRB, they found that credit card customers averaged about 36%more per transaction. 12

13 13 NEW & FUTURE PAYMENT OPTIONS Confused Yet????? FIVE THINGS YOU CAN DO TODAY If you do not accept credit cards, put a plan together so that you can increase your average transaction by over 30% vs a cash transaction. Formulate a strategy to take advantage of the current payment trends:» Bar Code/QR enabled Mobile Payment» Mobile Coupons» Reoccurring payments» Wash Club Evaluate your Payment Equipment Find a partner that is 100% focused on the business Find a partner committed to your success.

14 Thank You for Attending this Session! Please help us improve the quality of our show by completing your session evaluation form. Completed forms may be given to the room monitor as you exit. 14