pin payments presentation final (4)
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MKTG90017, Semester II 2013GROUP MEMBERS:
Pearl (Shun) Li: 573083Mark Turner: 524686 Ivan Sanchez: 594783
Kristen Goulopoulos: 360214
CASE STUDY: Southern Payment Systems Pty Ltd
(TRADING AS: PIN PAYMENTS)
• Formed in Perth, November 2011• Provides an API for embedded online payments
interface and process transactions on clients behalf
• Have expanded operations to Melbourne and Sydney
• About 1000 Australian merchants have used the service in testing
(Source: Bleby, M. 2013, “Payments group Braintree comes to Australia with eyes on developers”, BRW online, 20 June.)
Start-up History: Pin Payments
• Access to a worldwide market• Current lack of innovative payment solution
for online purchases • Merchant accounts
The Problem
Advantage Offer/SolutionExpand Australian online businesses to expand globally in an easy and secure way
• Pin Payments provides a PCI (Payment Card Industry) compliant set of code for processing online payments
• Enables retailers to process payments without a merchant account. Only an ABN and credit card is required
Easy implementation for Australian online businesses
• Save mobile application & website development costs
• Increased speed of website development
Easy & Clear payment method for Australian online businesses and individual buyers
• Enables processing payments from any debit and credit card bearing the Visa and MasterCard brands outside Australia.
• Can choose the currency of payment; AUD or USD• $50 Monthly and 3% + $0.30 transaction fee
Improve online shopping experience for individual buyers
• Payment interface embedded in clients' website. Consequently customers are not moved to a third party site
Value Proposition
Traditional (Competitor) Business Model
(Source: Booz, Allen & Hamilton in Merritt, C. 2011, "Mobile money transfer services: the next phase in the evolution of person-to-person payments.", Journal of Payments Strategy & Systems, vol. 5 no. 2, pp. 143-160.)
Pin Payments Business Model
Website & Mobile Interface
Code Extract [JSON CALLS]
The core Pin Payments product
Ref: IBISWorld Industry Report X0004, Online Shopping in Australia, March 2013
Total Online Australian Businesses
36 655
Market Size
5% online retail share would see annual revenue of over $2.5 million*(based on estimated $40 transaction amount)
Revenue Model
$50 monthly membership
30c per transaction
+ 3% of amount
Competitors
Pin Payments Competitors Price Structure Overseas
Capability
Pin Payments(https://pin.net.au/)
3% + $0.30 per transaction$50 membership free Unlimited
PayPal(https://www.paypal.com/au/cgi-bin/webscr?cmd=_display-receiving-fees-outside
)
2.4% + $0.30 base rate per transaction Limited
Google Wallet(https://www.google.com.au/wallet/faq.html
)
1.9% + $0.30 per transaction or 5% (depending on favourability for retailer)Usual card processing feesRequires end-user to have an account with Citibank
Limited
Ezidebit(www.ezidebit.com.au/take-the-tour/faqs/
)
Payment structure unavailable Very Limited
Stripe(https://stripe.com/)
2.9% + $0.30 per successful transactionNo monthly fee Limited
Braintree(https://www.braintreepayments.com/
)
2.4% + $0.30 per transactionNo membership freeStrong competitor in the US Entering the Australian market
Limited
Analysis of Competitors
Thank you for listening
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