Less is More: Streamlining Commerce for the Campus Advantage

Less is More: Streamlining Commerce for the Campus Advantage

AGENDA Campus Commerce is BIG Business $$$ Revenue Opportunity is Growing Campus Cards are Used Everywhere for Almost Anything Technology What s New/Changing? What Do You Have to Know to Have a Successful Program? How Can it All Work Together? What Does it Mean to Both Students and the School?

CAMPUS COMMERCE IS BIG BUSINESS 4,800 Universities & Colleges in the US and Canada 1,2,3 Over 30 Million Students 1,2 Plus Faculty, Staff, Alumni, Parents and Visitors 1.5M Faculty 1

REVENUE OPPORTUNITY IS GROWING STUDENTS SPEND MONEY AND A LOT OF IT! Total Spending Power > $400 Billion 5 1. Total Spend After Tuition and Board $35 Billion/Year4, 5,6 2. Spend on Snacks and Beverages $11 Billion/Year 4,5,6 (Not included is the spend by Faculty, Staff, Alumni, Parents and Visitors) Students Don t Carry Cash!

CAMPUS CARDS (CC) ARE INDISPENSIBLE 99% of Students Have Campus ID Card Over 50% of Campus ID Cards are Also Payment Cards 84% of Students Have at least 1 Debit or Credit Card 5 Faculty, Staff, Alumni, Parents and Visitors Carry Credit and Debit Cards

CC ARE USED EVERYWHERE, ANYTHING Room Key Building & Fitness Center Entrance Meal Plans Campus Stores Event Ticket Purchase Vending Laundry Printing Library Restaurants and Services, On and Off Campus

TECHNOLOGY: WHAT S NEW/CHANGING? From Magnetic Swipe Card Traditional, but Limited Functionality, Weak Security, Inconvenient To Physical Card with NFC (Near Field Communication Touch & Go ) Convenient and Fast, Accepted by Both Merchant and Student To Digital Card (Resident on the Smart Phone Best of the Best ) 50% of Consumers Want Mobile Payments 8 70% of Millennials Want to Use Their Smart Phone to Make Payments 8

TECHNOLOGY: WHAT S NEW/CHANGING? And Now Apple Pay Now it s Real The Phone Will Become the CARD (the only card for most students) Apple (ios), Android, Windows Apple Pay is a Major Influence on the Growth of NFC Payments 750 Banks and Credit Union Have Signed Up 7 67% of Dollars Being Charged by Contactless are Apple Pay Payments 7 We expect 50-100 higher education institutions to commence registration and acceptance of smart phones as virtual campus card credentials by Fall 2015 - with acceptance by 50% of all educational institutions (IHE) by the end of the decade. 10

TECHNOLOGY: WHAT S NEW/CHANGING? The Smart Phone Is Becoming the Student s Lifeline Digital Wallet Digital I.D. Campus Card Access Credentials Access to Institution s Branded Student Application Schedules, Maps, Merchant List (on and off campus), Phone Directory, Campus Loyalty Card It s the Most Important Thing the Only Thing They Need When Going Out CHANGE = OPPORTUNITY!

STUDENT MOBILE COMMERCE APP A Smartphone Application to enhance the Merchant Consumer (Student) Relationship Mobile Marketing Real Time Marketing Proximity Marketing Additional Revenue Stream for School Manage and View Everything in One Online Management Portal Including Activation, Enrollment, Offers and Redemption, Marketing Messages, Sales, and Transaction Analytics

TECHNOLOGY: IT S SAFE Tokenization Both VISA and MasterCard will provide tokenization for Apple s Apple Pay service 9. To date, 43 of our issuing partners have enrolled in our tokenization. These issuers collectively represent 75% of our aggregate US payment volume and over 500 of our clients have signed the Apple Pay contract. Charlie Scharf, VISA CFO, February 3, 2015 9 EMV Mandate Hardware Certifications PCI Etc.

TECHNOLOGY: CHALLENGES Multiple Payment Applications Campus Card Schemes Prepay Mobile Credit & Debit Magnetic Swipe Physical NFC Smart Phone NFC Multiple Pay Points Unattended / Kiosk One Report Room Access Traditional Cashier Unattended Mobile Cashier/ Merchant Multiple Applications INTEGRATE ALL! = COMPREHENSIVE, TIMELY, ACCURATE REPORTING

Settlement HOW IT CAN WORK ALL TOGETHER Campus Card Student Card Payment System Settlement Debit/Credit Processor On & Off Campus Apriva Endpoints Apriva Payment Gateway

BENEFITS OF CASHLESS - STUDENT The Campus Card Will become the Primary Purchasing Vehicle of the Student WHY? Convenience Quick and Easy to Use On My Phone!!! Forget the Wallet, Purse, Keys, etc. Ties Into Other Important Applications and Services Maps Schedules Contacts Where to Eat or Shop Offers and Specials Available Updates & Notifications

BENEFITS OF CASHLESS - ADMINISTRATION The Institutions Passport Plays A Critical Role in The Life of The Student The Campus Brand is Available for Every Action A Single, Unified Community Creates Immense Stickiness to the Campus Card Safety Reduces Risk of Cash-Related Crimes New Revenue Source for the Institution Commission from Added Vendors and Services Utilizing the Campus Card Revenue Sharing with Off-Campus Merchants No Lost Sales for Lack of Cash An Excellent Service the Campus Provides Their Clients The Students

THANK YOU! Is Your Campus Integrated? If Not, Contact Us to Get Started! PAUL DEROSSE pderosse@apriva.com www.apriva.com Booth 707

REFERENCES 1. http://nces.ed.gov 2. www.canada-city.ca/canada.universities 3. www.collegeinstitutions.ca 4. http://www.stateuniversity.com/blog/permalink/the-spending-habits-of-college- Students.html#ixzz1lMBgl9Kc 5. http://www.nationwide.com/college-student-spending-habits-infographic.jsp 6. http://www.latech,edu/impact_study/lt_final.pdf 7. Investor Forum, January 27, 2015, Tom Cook, CEO Apple 8. Findings Coca Cola USA study January 21, 2015 9. Update: Visa and MasterCard Provide Tokenization, September 11, 2014 10. Robert C. Huber Associate, Campus Card Industry Forecast, 2015