Introduction Meet the Speaker

Transcription

1 IOFM Controllers Conference, 2015 Presented by: David Disque, Managing Director Introduction Meet the Speaker Managing Director at CSI globalvcard 15+ years in payments industry Frequent speaker on corporate payments best practices David Disque Has helped some of the world s best known brands develop corporate payment solutions 1

2 About CSI globalvcard A leader in corporate payment solutions Over 26 years delivering innovative financial payment solutions with expertise in multiple industries. Headquartered in Florida with offices in NYC and Toronto, our experience spans the globe: Europe, Asia, Latin America. More than 10,000 corporate 2015 CODiE Award customers have trusted CSI Finalist to deliver results, including Red Herring Top 100 some of the world s most North America iconic brands. PMYTS Best B2B Payments Finalist Agenda A leader in corporate payment solutions Corporate Payments Landscape Understand methods of payment currently in use Accounts Payable Payment Options Understand the various electronic AP options and the pros and cons of each: virtual cards, buyer-initiated, ACH and check Mobile Payments and Tokenization Become current with mobile payments, Apple pay and tokenization, and learn how mobile can be used securely for B2B 2

3 Current State of Corporate Payments of businesses are still 50% writing paper checks at a cost of $4-$20 PER CHECK* Source: Association for Financial Professionals Sep 2013 survey *Wall Street Journal, March 10, 2014 U.S. Companies Cling to Writing Paper Checks Spend by Payment Type Transactions Under $25000 Purchasing Cards Paper Checks ACH Transfers Wire transfers & other 32% 37% 44% 52% 53% 53% paid via card 58% 51% 41% 34% 34% 34% paid via check 7% 3% % 10% 10% 10% 4% 5% 4% 3% Source: RPMG Benchmarking Survey, 2014 Source: RPMG Benchmarking Survey,

4 Spend by Payment Type Transactions between $2500-$10k Purchasing Cards Paper Checks ACH Transfers Wire transfers & other 15% 19% 28% 31% 32% 32% paid via card 71% 10% 5% % 54% 48% 47% 10% 12% 15% 15% 6% 6% 6% 6% Source: RPMG Benchmarking Survey, % paid via check Purchasing Card Industry Growth Actual Estimated $57 $40 $28 $1 $1 $3 $8 $11 $17 $98 $89 $80 $245 billion in 2013 $196 $176 $161 $149 $137 $110 $123 $217 $245 $267 $293 $318 $347 $ Source: RPMG Benchmarking Survey,

5 Virtual Card Headlines 70% of organizations use virtual cards for new spend categories Percentage of companies using virtual cards expected to increase from 18% today to 43% by 2016 Average virtual card transaction is ten times larger than a traditional P-Card transaction Organizations using virtual card within A/P capture 81% more spend than non-using organizations Virtual Card Defined VC What is a Virtual Card? Virtual cards are single-use credit card numbers issued for a specific dollar amount, vendor and time period Secure globalvcard is a one-time-use virtual credit card number that disappears once used Accessible Payments are issued via Web with 24/7 ability to authorize/block, with full visibility Integrated globalvcard system integrates with ERP or accounting system for automated reconciliation Rewarding Cash back rewards on virtual card transactions 5

6 Virtual Card Defined 70% Electronic Accounts Payable 69% 61% All Purchasing Goods Platforms Combined Traditional Purchasing Cards 53% 53% 54% 44% 42% 45% 35% 37% 35% 26% 18% 11% 17% 24% 20% 30% 25% 9% 9% 8% 0% Source: RPMG Benchmarking Survey, 2014 Accounts Payable Payment options currently available and what s next 1. Understanding of the various AP options 2. Pros and cons of each 6

7 Current Payment Methods Vary Each has pros & cons Paper Checks ACH Traditional Credit Cards Virtual Credit Cards Accounts Payable The problem With so many needs and options, AP is not a one-size-fits all. Com cos Car ben by o Ven pay Mu me and Until Now 7

8 Trending: More Holistic Solutions globalvcard paysystems as an example Coming Trend: Buyer-Initiated Payments One single file upload, with payments that can be auto disbursed through many options: single-use virtual card, direct bank settlement or check. Payments are issued via Web or mobile with full visibility and ability to authorize/block, 24/7. Further streamlining the payment process by removing manual processing of cards The previously missing piece to streamlined payments I a r With buyer-initiated payments, we have an end-to-end commercial payments solution, streamlining the process for both buyers and suppliers. Also referred to as push pay or straightthrough payments 8

9 Coming Trend: Buyer-Initiated Payments Further streamlining the payment process by removing manual processing of cards Streamlining invoices from multiple buyers Payment providers will leverage their scale to: Aggregate invoices from multiple buyers Send one payment file with consolidated detail Greatly improve efficiency for suppliers Coming Trend: Buyer-Initiated Payments Further streamlining the payment process by removing manual processing of cards Streamlining invoices from multiple buyers CSI globalvcard example: 44,000 annual invoices consolidated from multiple buyers; saves one supplier 9 FTEs. 9

10 Provider Best Practices Ensure your electronic payments solution enables the following: Help improve reconciliation process Ensure data flows seamlessly into accounting system Provide technology options that reinforce spend controls Understand client processes/software Assist with on-boarding of suppliers Provide best practice benchmarking insights Provide support via account management Source: RPMG Benchmarking Survey, 2014 Effective Supplier Enablement Successful Techniques Moderately successful methods of increasing acceptance Compose letters to Suppliers explaining card value Conduct annual phone drive to entire Supplier group Source: Kaiser Associates Study,

11 Effective Supplier Enablement Successful Techniques Moderately successful methods of increasing acceptance We reached out to vendors (everyone but individuals) with direct mailings. It was easy to sign up they just needed to fill out a form, including company name and contact details Once a year we call, trying to add more suppliers. We add 3-4 every year Source: Kaiser Associates Study, 2013 Effective Supplier Enablement Successful Techniques More active and most successful methods of increasing acceptance Negotiate shorter terms, ultimately making up difference with card float Contractually stipulate card payment method to ensure future Supplier compliance Collaborate with customer to target Supplier portfolio Source: Kaiser Associates Study,

12 Leverage Misconception Buyer s Perception How much negotiating power do you as a Buyer have with suppliers regarding the method of payment used? Supplier s Reality How likely would you as a Supplier be to accept a card from a customer that mandated it as a method of payment? 37% 18% 63% 82% High Degree of Control Low Degree of Control Likely to Accept Card Unlikely to Accept Card Buyers have much more leverage regarding their payment method than they realize Source: Kaiser Associates Study, 2013 Use Cases for Virtual Cards in B2B Virtual card payments are proving successful in many areas of a business Accounts Payable Corporate Travel Mobile Payments Secure Efficient Cost Savings Compliance Reduced fraud Reconciliation Convenient Secure Reporting 12

13 Case Study Annual results from one business that implemented an electronic payments solution Case Study Global 5-Star Luxury Hotel Chain* Case Study Global 5-Star Luxury Hotel Chain* Business Goal: Streamline accounts payable process with the goal of reducing costs and increasing security *CSI respects the privacy of our clients and therefore does not disclose company name without permission. 13

14 Case Study Global 5-Star Luxury Hotel Chain* The Solution: globalvcard paysystems is integrated with customer s ERP system to facilitate reconciliation and reporting. Full implementation and training completed in 4 weeks. Vendor enrollment campaign is launched with multiple touch points; more than 40% enrollment in first 3 months. RESULTS Case Study Global 5-Star Luxury Hotel Chain* $123,987 annual savings from eliminated checks $648,000 annual new revenue through cash rebate $771,987 total annual savings 14

15 Mobile & Tokenization What every U.S. business needs to know about mobile payments Mobile Payments & Tokenization What is tokenization? Tokenization eliminates need for merchants to store payment card data on their networks Token Tokenization replaces sensitive payment data with a random unique identifier or token acting as a substitute value for the actual number 15

16 Mobile Payments & Tokenization Use Case: Apple Pay How It Works Card numbers are tokenized and securely stored in a dedicated chip in the iphone. When purchasing, you simply hold your iphone to the payment terminal at the register and use Touch ID to complete your purchase. Mobile Payments & Tokenization Use Case: Apple Pay How It Doesn t Work Apple Pay does NOT save transaction information. Since you never have to show your credit card, you never reveal your name, card number, security card. How does this work for business? Apple Pay does NOT save transaction information. Since 16

17 Mobile Payments & Tokenization Virtual credit cards: the enterprise alternative Security Single-use virtual cards eliminate the risk of stored card numbers Control Complete control over where and when the card can be used Real-Time Manage cards or issue secure payment in real-time Reconciliation Simplified reporting since each card number is tied to a transaction Integration Can be integrated into ERP or accounting system Cash Back Unlimited monthly rebate based on all virtual card transactions 34 Thanks for your time. David Disque, Managing Director [email protected] Phone: CSI globalvcard Headquarters 3301 Bonita Beach Road, #300 Bonita Springs, FL NYC * Toronto 17