Proof of concept kit - Payments
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1. The document provides an overview of payment solutions from EY FinTech including social commerce payments, digital payments, and cross-border remittance. 2. Key solutions proposed include a smartphone keyboard to enable payments within social media apps, a digital wallet platform for banks and financial institutions, and a business-to-business cross-border payment solution providing low fees and fast transfers. 3. The solutions help clients by increasing customer engagement and sales, facilitating seamless payments, expanding payment options and creating payment ecosystems.
Proof of concept kit - Payments
- 1. EY FinTech – enabling product launch in 100 days or less Proof of Concept Kit: Payments September 2018
- 2. Table of Contents # FinTech enabled solutions Pg. No. PAYMENTS 2 1 Seamless payments and banking for enabling social commerce 3 2 Customer acquisition, engagement and sales via social media 4 3 Digital Payments and Digital Wallets 5 4 Cross-border Remittance Solution for B2B 6 1
- 3. Payments 2
- 4. Context: A banking client was looking for solutions to seamlessly integrate payments and banking services as part of a customer’s daily digital lifestyle. With a user base of 320 million and an estimated market potential of US$50b by 2020, social and unorganized commerce provides an intriguing opportunity for banks to extend banking and payment services. Recommended configuration: • Smartphone keyboard solution allows banks to empower social buying and selling within any chat or social application. The keyboard is integrated with a bank’s existing payments and security stack, and allows for sending payment requests using national payment schemes or by existing interparty fund transfer systems. • Sellers can share products listed on Instagram and Facebook, and instantly collect payments from buyers. Buyers can transfer money to sellers, without switching apps, using the keyboard software. Seamless payments and banking for enabling social commerce Facilitating users in switching between product discovery app and payment app Improving reconciliation as online sellers and small businesses interact in multiple marketplaces Streamlining payment process for buyers Keyboard extension integrated in bank mobile app Benefits of social commerce payment solution Challenges faced by social commerce stakeholders Case study Mitigating safety and privacy issues from social commerce transactions 3. Mobile OS handles the process securely. 2. Keyboard fetches data from bank mobile app using shared containers. 4. Keyboard interacts with bank’s application programming interface (API) to securely complete the transaction. Allowing banks to integrate services within a mobile customer’s digital lifestyle Increasing revenue and customer base via access to US$50b social commerce industry Client impact: • Bank can facilitate a seamless and invisible payments experience to end users, leading to higher customer satisfaction • Bank can increase engagement with merchants by alleviating their payment woes, as well as increase their chances of closing a sale, thereby leading to increased stickiness of platform • An increase in customer-to-customer (C2C) and business-to-customer (B2C) payments through its platform can be expected 1. User activates keyboard. Solving an urgent pain point of selling via social media platforms Enable payment by toggling to payment keyboard without switching from social media platform Facilitating quick and contextual payment within any communication app Customized payment keyboard toolkit for payment service providers Contact us 3 Varun Mittal varun.mittal@sg.ey.com Varun Parmar varun.parmar@sg.ey.com Sahil Gupta sahil.gupta@sg.ey.com
- 5. Context: A regional bank’s client – an apparel brand wanted to increase their level of customer engagement by using an automated social media marketing tool that could integrate within social media channels. Recommended configuration: • The integration of marketing plugins and inventory management platform, along with the client’s existing social media platforms, increased the frequency of customer engagement through the use of the embedded messenger chatbot because of added convenience in the customer purchase process. • Additionally, the chatbot provided automated customer assistance while increasing the frequency of sales hit rates through the various social media platforms. Customer acquisition, engagement and sales via social media Other use cases Automated sales engagement and sales completion Case study Integrate with customer’s current commerce, loyalty, and other digital software and properties. Customizations and API integrations Integrate products, and promotions with KOL’s and influencer’s accounts. Key Opinion Leader (KOL) and influencer Sell products instantly through social media posts and auto message, and walk customers through the sale. Omni-channel contextual sales Pre-orders Sales and ticketing ► . Current sales cycle from post or advertisement to website Wait for payment verification. Purchase complete. Click post. Find product. Add to cart Checkout. Enter address. Enter card details. Lengthy check-out processes Slow purchasing cycle Low customer engagement Average time to complete purchase: 15 minutes Automatic push to checkout sales cycle Comment on social media. Confirm on messenger app. Purchase complete. Entire sales cycle from social media posts to sales in less than a minute Q&A automation Client impact: • Converted 30% more customers from their social media channels • Improved customer-product marketing management • Quicker checkout and payment rates for customers Contact us 4 Varun Mittal varun.mittal@sg.ey.com Varun Parmar varun.parmar@sg.ey.com Sahil Gupta sahil.gupta@sg.ey.com
- 6. Digital payments and digital wallets Longer go-to-market time for new business features Lack of digital payment channels Management of complex Integrations with third-party systems Legacy platforms with lesser flexibility and configurability Scalable payment solutions that grow with the firm Creating ecosystem with merchants, billers and service providers Challenges faced by institutions Robust, multi-functional payment solution Multi-tenancy Loyalty management Multi-currency Case study Context: An Indian financial service provider was seeking a white-labeled wallet platform to launch a digital wallet, facilitating payments and banking transactions to increase their range of payment channels. Solution configuration: • The implementation of a mobile application digital wallet and payment system with quick response (QR) code and near-field communication (NFC) functionalities. • Additional features were customizable to the firm’s requests, including having configurable payment options. • Bulk salary processing, QR code-based payments, remittance and customer service functionalities were added in. • Loyalty programs with a points system were integrated into the mobile application infrastructure. Client impact: • Increased customer retention rate with the loyalty program and flexibility of multiple payment options • Created ecosystem in integration with billers, merchants, payment gateways and so on • Acquired corporate customers with payroll processing • Went live with minimal hardware requirement resulting in lesser capital expenditures (CAPEX) • Increase in customer satisfaction with streamlined payment system and digital customer service Contact us Leading interfaces and technology capabilities Bill presentment Companion card issuance Dynamic field and form management Payroll and bulk payments Multi-factor authentication Multiple services for Person-to-person (P2P), Government- to-person (G2P), Person-to-merchant (P2M) and so on Family wallets Offers and promotions Inbuilt integration adaptors e-know your customer (KYC) Cryptocurrency and digital assets Omni- channel Connected core Open APIs Services marketplace 5 Varun Mittal varun.mittal@sg.ey.com Varun Parmar varun.parmar@sg.ey.com Sahil Gupta sahil.gupta@sg.ey.com
- 7. Cross-border remittance solution for business to business (B2B) High-margin foreign exchange (FX) rates Many banks and money transfer operators (MTOs) add margins of 2%-11% and hidden fees to their FX rates. Challenges faced by companies Cheap and fast cross-border remittance solution Mid-market rates + nominal fee (0.25% to 1%) Zero-Margin FX rates Cheap fees Case study Context: A start-up e-commerce platform was selling Australian FMCG in the Hong Kong (HK) market. High-consumer bounce rates are observed on the payment page where the customers were shown the high FX rate incurred by VISA and MasterCard. The platform was looking for a suitable overseas money transfer solution providing a reasonable FX rate, allowing them to improve customer satisfaction. The platform also wanted to increase the cash receivable turnover rate. Value-added: The remittance platform served as a payment solution for the e-commerce. The solution increased transaction volume and customer acquisition. Customers can now purchase goods at a competitive FX rate, resulting in a cheaper final product. The e-commerce also receives revenue within one day of transaction. EY’s role and activities: • Market landscape analysis of cross- border remittance platforms • Benchmarking, analysis, comparison and selection of available platforms • Developed a sales acceleration platform, including product and business definition, vendor solution gap analysis and management dashboard definitions Client impact: • Increase in total transaction volume and customer acquisition • Decrease in service fees payable for cross- border transactions • Decrease in the cash receivable turnover time from five business days to one business day Contact us Varun Mittal varun.mittal@sg.ey.com Varun Parmar varun.parmar@sg.ey.com Sahil Gupta sahil.gupta@sg.ey.com Slow transfers After submitting all the documents, the recipient has to wait for three to five business days to receive the money. Complicated procedure Currently, many paper-based documents need to be submitted by banks for cross-border remittance. Email ID, mobile number, identification number and address proof documents are needed to create an account Simple account creation Takes one business day to complete a transfer Quick receive Easy procedure Required to submit payee’s information and the purpose of remittance Remitter Platform Payee Apply online Transfer local currency Payee account on platform Payor account on platform Receives foreign currency Payee information Bank Local Currency Foreign Currency Money transfer process 6
- 8. EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we playa critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. © 2018 EYGM Limited. All Rights Reserved. EYG no. ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice.