your money, your way! - storedvalue plus prepaid debit
TRANSCRIPT
Prepaid Visa® Your Money, Your Way!
C&L Enterprise Plus PROPOSAL
Confidential 2018
C&LEnterprisePlusContent1. SummaryofC&LEnterprisePlusPrepaidVisa®or
MasterCard®Proposal
2. Pre-ApprovalPreparatoryProcess&Development
3. CardManagementSystem
4. PrepaidProcessingPlatforma. OnlineBankingb. Security&ComplianceTools
5. DigitalizationandPushTechnology
6. PrepaidEco-System
7. Rewards&LoyaltyProgram(Retention)
8. WhyStoredValue PlusforPrepaid?
9. ActualPrepaidCosta. ProposedPrepaidCostb. ProposedPrepaidRevenueShare
10. RolesandResponsibilities
11. CustomizedSoftwareDevelopment
12. ExtendYourTeam,WithWorldClassDevelopers
13. ActualMobileAppCosta. MobileAppCostComparison
a. DiscountedPriceforC&LEnterprisePlus
14.ActualWebDevelopmentCosta. WebDevelopmentCostComparison
a. DiscountedPriceforC&LEnterprisePlus
1.SUMMARY OF“C&LEnterprisePlusVISA®”Thefollowingstrategicinitiativesarestepswegothroughinordertoreceiveapprovalfromasponsoringbank.
1. Pre-approvalPreparatoryProcessforApprovalofaVisa®orMasterCard®prepaidprogram
• C&LEnterprisePluswillprovideallthedocumentationrequiredtoapplyforaprepaidVisaorMasterCardBINsponsorshipfromanissuingU.S.bank.
2. CardManagementSystem
• C&LEnterprisePlushasengagedwithacertified3rd partyproviderforaturn-keyCardManagementSystem(CMSSoftware)thatwouldbeintegrateddirectlywiththesponsoringbank(s),issuing/acquiringprocessors,fulfillment,cardmanufacturers,customerserviceoranyother3rd partyproviders.
3. PrepaidProcessing,Compliance&ThirdPartyPartners
• C&LEnterprisePlushasstrategicallianceswith3oftheTOPPrepaidProcessors,whichprovidethePCI/DSScompliantprocessingplatformtoissuetheC&Lcard.Wealsoengagewiththetopcardmanufacturer/fulfillmentandloadingpartnersinthebusiness.
4. DigitalizationandCardPenetration(PushTechnology)
• C&LEnterprisePlusisouttodevelopaviableprepaidcardprogramandusenewdigitalchannelsthatwillresultinthesafest,mostreliable,andmostsecurenetworkpossible. WithaC&LEnterprisePlusVisa®card,StoredValue Plus(consultantsforC&L)candevelopback-endsystemstoeliminatethelongforms,complexroutingnumbersandwaitingtimeassociatedwiththeconventionalfundtransfermethodrequiredonCLCard’s siteandprovide“added-value”oroptionstoC&LEnterprisePlusthatleadstonewclients.
5. CustomizedWebApplications&MobileApplications(specifictotheprepaidspace)
• C&LEnterprisePlusiscustomizingasuiteofproductsrelatedtotheprepaid&debitcardindustry.
• PrepaidCardMobileApp– Historyactivity,Transactionspending,Balances,etc.
• Card-Linked-RewardsApp- Cash-BackorPointsrewardsarelinkedviaamobile-apptoprepaidordebitcards
2.PRE-APPROVAL PREPARATORYPROCESSC&LEnterprisePlusDevelopment:Wewillprovideintellectualproperty,industryknow-howandtradesecretsalongwith,butnotlimitedtothefollowingsupportingitems:
ProgramOutline,Description/ExecutiveSummary(BusinessPlan)• TheMarket(yourspecifictargetmarket)• Themarketingstrategy• Feestoconsumers• Identifyallfunctionality(loading,ACH,DD,etc)• Whitepaperfortheprogramincludingflows,charts,etc.• Cardspecificationswork(templates/formatsforapprovalsubmitting)
CompleteProForma (Profit&LossProjections,includebankrevenue)• Summary• SummaryAssumptions• ProFormaProfit&Loss• AccountsProjections• Assumptions• ProgramRevenues• ProgramExpenses• ExpenseAssumptions• Staffing• ChangeControl
2.PRE-APPROVAL PREPARATORYPROCESS(cont.)Providepartnerships withthirdpartyproviders(loadingpartners,processingpartners,etc)
Definerolerequirements (programmanagervsprogrammarketer)
Whatwedefineasthe3-PreparatoryP’s:• ProductSetUpGuide(theCard)• PartnerSetUpGuide(3rd partyproviders)• ProgramSetUpGuide(theprogram,enrollment,KYC,etc)
Compliance:• Anti-MoneyLaunderingGuidelines• AntiTerroristGuidelines• RedFlagRules• DisasterRecoveryPlan• RegisteredMSB(MoneyServiceBusiness)• RegistrationwithFederalAgencies(compliantwithSAR’s)• PackagePrincipalsFinancials/TaxReturns• PackageCompany’sFinancials/TaxReturns• PackagingofRequiredCorporatedocuments• CompletedandsignedBankApplicationforStoredValueServices
AdditionaldevelopmentofFlowsmayneedtobedevelopeddependingonthebanksrequest.
2.PRE-APPROVAL PREPARATORYPROCESS(cont.)CardMGTProcess:
• Enrollment• ManagementofCards• ManagementofCardholders• ManagementofSupport
WebApplicationProcess:• PrepaidProcessingPlatform• Customizedplatforms(mobileappsincluded)
BSA/AMLACCESSMENT:• Wewillalsoassistinansweringimportantquestionsthatwillalignwithbankingcompliance,suchas,butnotlimitedto:
• ProvidethetypeofFundingSourceandwhatLoadTypesareallowed• WhataretheDailyAggregateLoadLimits(notincludingfees)• ArethereCashWithdrawalLimits?• WhatarethePointofSale(POS)limits?• ExplaintheCardUsage:closedlooped/privatelabel/domesticuseonly/includesinternationalusage• Howisthecarddistributed?• WhatCardholderInformationisrequiredandwhen?• ExplainifthereareMultipleCardRestrictions(exclusiveofreplacementcards).• ProvidedescriptionofanyAdditionalFunctionalityAllowed.Examples:card-to-cardtransfer,companioncards,BillPay
3.CARDMANAGEMENTSYSTEM(SOFTWARE)CardMGTPlatform:
• Enrollment• ManagementofCards• ManagementofCardholders• ManagementofSupport
CreateUser(Admin):• Master/SuperAdmin• LimitedAgentlogin
CardApplyPages• C&LEnterprisePlusCardApplyPage• C&LEnterprisePlusAgentApplyPages
CardOrders• C&LEnterprisePlusOrders• C&LEnterprisePlusAgentOrders
CustomerService• C&LEnterprisePlusCardholders• C&LEnterprisePlusIVR• C&LEnterprisePlusTicketSupport
• Bank• Processor
C&L Enterprise Plus
C&LEnterprisewillutilizeproprietarysoftwaretomanageVisaandMasterCardprepaidprogramsdirectlyconnectedwithyoursponsoringbank,processorandall3rd partyproviders.RECOMMENDED: CustomizingtheCMStomeetbankcompliance&businessrequirements.
4.PREPAIDPROCESSINGPLATFORMPrepaidIssuingPlatform:
• StoredValuePlushasstrategicallianceswiththeTOP3PrepaidProcessors.WenegotiatethebestpricesandservicesonbehalfofC&LEnterprisePlusinordertogetthebottom-linebestcost-per-transaction(s).
RECOMMENDED:
• Arangeofaccount,card&mobilebasedprogramsincluding,StoredValue,Prepaid,Payroll,GiftandLoyalty,inaclosedoropenloopenvironment.
• WebbasedinterfaceSSLsecured• Real-timeprocessing• Backoffice,billing• Riskmanagement• Real-timefraudmonitoring• BINlevelcontrols,settings,parameters,feestructure
• Programlevelcontrols,settings,parameters,feestructure• Accountlevelcontrols,settings,parameters,feestructure
• Identityauthenticationprocess
4a.ONLINE &MOBILE BANKINGOnline&MobileBanking:
Selectingthebestprocessorinvolvesresearchingandexperiencingtheir“online-banking”platform.StoredValue PluscanconductanalysisoftheonlinebankingfeaturesonbehalfofC&LEnterprisePlusinordertogetthebestonline/mobilebankingsolution.
RECOMMENDED:
• WebbasedOnlinebanking
• InteractiveVoiceResponse(IVR)banking
• Mobile(Cellphone)WAP&Javainterfaces
• Integraltotheissuingplatform
• Real-time
• Multifunction• Accountbalance• Transactiondetails• Transfers• Productinformation(i.e.usage,fees)• Communications(i.e.disputes)
4b.SECURITY ANDCOMPLIANCECompliance:
WenegotiatethebestpricesandservicesonbehalfofC&LEnterprisePlusinordertogetthebestsecurityandcompliancesolutionsfrompartnerprocessors.
RECOMMENDED:• Security
• Allinterfacesatalllevelsofaccessarewebbased• SecureSocketLayer(SSL)secured• LoginandPassword• Twofactorauthentication• PCI-DSScompliant,TR39(akaTG3)audit,SSAE16(akaSAS70),certifiedwithvariouslargerprocessors
• Compliance(providedbyourpartneringissuing/acquiringprocessorandprocessingplatform)• KYCandBSAcompliantperCBN• InternalOFACdatabaseupdatedaily.Allaccountsvalidateduponopeningandonamonthlybasis• SARfiledasrequired
5.DIGITALIZATION &PUSHTECHNOLOGYTheUS,oneofWesternUnion’sstrongestandmoststablesegments,illustratestheimportanceofdigital. Thefirm’sUS-originatedbusinessgrewby8%inthequarter.Anddigitaltransactionsgrewby27%YoYintheUS— higherthantheaverage— with60%oftotaltransactionscomingfrommobile.Forinstance, estimatedglobalcross-bordermobiletransactionsgrewby51.8%in2015andwereoperationalin93countries.
RECOMMENDED:
DigitalizationDevelopment:• Continuedinvestmentindigitalwillberequiredintheshort-term,butongoinggrowthisagoodsignforC&LEnterprise
Plus'sabilitytostaycompetitiveinthespace.C&LEnterprisePluswillinvest intechnologyinfrastructure,whichcouldincreaseoperationalexpenses. ButotherlargeMTO’sstrongdigitalgainsindicatethatinvestmentwillpayoffindividends.Andincreasedcompetitionfromdigitalproviders,whichattempttoattractcustomersthroughaccessibleplatformsandlowfees,couldbeparticularlyattractiveinunstableeconomiesandwillonlyemphasizedigital’simportance.
PushTechnology:Pushtechnologiesthatenablefastpaymentfromperson-to-personwithouttheneedtolinkthetransactiontopersonalbankaccountscontinuetobeanopportunityaroundtheworld.• C&LhasengagedwithStoredValue Plus,acertifiedISOunder2categorieswithVisaandthroughitsdeveloperprogram
canoffer avalue-addingpushtechnologythatprovidesanopportunitytotransfermoneyfromP2P,B2B,orP2B. Itissimilartoawiretransaction,butunlikeawiretransaction,thetransferdoesnotneedtobeexclusivelylinkedtoyourbankaccount.
• ThescalingpotentialofthisplatformistremendousbecauseitprovidesC&LEnterprisePlusanopportunitytopushpaymentstoVisaaccountsasanoptiontosendingintobankaccounts.ThisincludesPrepaidVisacards,whichfillsamajorvoidwithunbankedtryingtoreceiveremittances.
4
Load &Transferchannels
CardMfg.,Fulfillment,IVR&CustomerService
Bank/BINsponsors
Co-brandingnetworks
Visa/Plus
MasterCard/MaestroPrepaidProcessingPartnersIssuing/Acquiring
U.S.Banks
EuroBanks
GreenDot
VisaDirect
DirectDeposit
LatinAmerican(Brazilian)Banks
AsianBanks
CEMEABanks
Discover
Fulfillment
EMV&WirelessPlasticMfg
CustomerService
IVRknowledge-base
6.THEPREPAIDECO-SYSTEM
6
Back-officeadministration
Cardsetups
Customerservicing
Schemeintegration
and compliance
Accountconfiguration
Web site
SMS
IVR
Call centre
3-D secure
EMVVirtual
Mobile
Visa/MasterCard
ISOCertifiedRegistry
Contactless
Disposable/reloadable/transfersOpen/closed/restricted loop
Chargebacks
MIS/clearingand settlement
Hostaccountintegration
Riskand fraud
CardholderID validation
6.THEPREPAIDECO-SYSTEM(CONT.)
Rewards&Loyalty
1. AllC&LEnterprisePlusprepaidVisa®prepaidprogramsareinteroperablewithanexistingrewardsplatformthatcanbeprovidedtoC&LEnterprisePlus.
2. Rewardsprogramisbasedona“merchant-funded”model,whichgivesyourcardholdersexclusiveaccesstorelevantoffersfrombrand-productsonlyavailablebyusingthe“C&LEnterprisePlus”card.
3. C&LEnterprisePlusengageswitha3rd partyprovider(StoredValue Plus)toprocessesallrewardsissuedandredeemedforyourprogramunderatrustaccountandcreditstherewardsaccountforanytransactionrequiringareward,whethercash-back,pre-soldorpoints.
RevenueOpportunity
• Allpurchasesmadebycardholdersarecommissionabletoourprogramaspartofourrevenuestream,includingtheincreasespendinginterchange.
StoredValue Plus
7.REWARDS&LOYALTYRETENTIONPROGRAM
• C&LEnterprisePlus hasengagedwithStoredValue Plusisaprivatelyheldcompanyfocusedonnewpaymenttechnologieswithspecificexpertiseintheprepaidsector.
• Knowledgeable andexperiencedprogrammanagementteamhasdeveloped,launchedandoperatedwellover50Visaand/orMasterCardprepaidprograms.
• Expertprepaidmanagers,complianceteam,webdevelopment&mobiledevelopmentengineers,designersandCTOlevelsupport.
• CompanyObjective– developturn-keyprepaidandpaymentsolutionprogramsforclients.
• Technologybasedonincorporatingcurrentpaymentsinfrastructureandrapidconsumeradoption
• StoredValuePlus facilitatesC&LEnterprisePlus'sapprovalprocess toregisteredwithVisa®/MasterCard®ISOcertifiedto:• ISOCardholder(ISO– C)–conductscardholdersolicitation,cardapplicationprocessingservicesand/orcustomer
serviceactivities.• ISOPrepaid(ISO– PP)–solicitsotherentities(i.e.,merchant,corporateclients,governmententities,other
businessesetc.)tosell,activateorloadprepaidcardsonbehalfofanissuer. Prepaidcardsalesand/oractivationisaprimaryfunctionofourbusiness.
StoredValue Plus
8.3rd PartyPartnersFORPREPAIDMGT
C&L Enterprise Plus • Card account
management• B2B2C• Distribution• Program management
Information
Bank BIN sponsor• Bank Scheme
membership• Scheme settlement• Regulatory
compliance• Bank BIN setup
Processor• Scheme integration• Load integration• Card bureau integration• Card management
system• Card
design/certification management
• Card bureau functional specifications
• Programmefunctionality:
– definition– configuration– certification
C&L Enterprise Plus • Sales
• B2C• Retail
• Marketing• Engagement
• Promotions• Rewards
• Corporate• Enterprise Incentive
10.ROLES ANDRESPONSIBILITIES
StoredValue Plus• All Pre-Approval
Preparatory ProcessOptional:• Customized
Software Dev• CTO level assist• Co-Compliance
Officer Role• Program Mgt
11.CUSTOMIZEDSOFTWAREDEVELOPMENTCoreProgrammingPrinciples
• Focusonasingletechstackinstillscoreconceptsandaworkingknowledgeofaprimarylanguage. Proficiencyineachareaisvalidatedthroughtargetedassessments.
Fullstack DevelopmentSkills
• Hands-on,practicalexperienceasfullstack developersenablesanabilitytocontributetobothbackendandfront-endcomponents.DevelopershaveworkedinexistingcodebasesandcreatedfullwebapplicationsforuseslikeVisaprepaidorbankrewardsplatforms.
RECOMMENDED:
VisaDeveloperProgram:StoredValue PlushasthecredentialsthroughanexistingissuingBankmemberofVisathatgivesusaccesstodevelopingsoftwarewithPushtechnologiesthatenablefastpaymentfromperson-to-personwithouttheneedtolinkthetransactiontopersonalbank.Likewise,ithascredentialstodevelopVisaDirect:https://usa.visa.com/partner-with-us/payment-technology/visa-direct.html
PrepaidMobileBanking:StoredValue Plusiscurrently25%intothedevelopmentofaVisaprepaidmobileappthatcanbecustomizedtomeetC&LEnterprisePlusVisaprepaidprogramsbusinessrequirementneeds.Nevertheless,ifC&LEnterprisePlushasamobilepaymentplatformorappinplacewecanintegrateintoyourcurrentplatformwithVisadevelopersprogramandwithourownproprietaryprogramming.
Co-BrandedVisa®orMasterCard®PrepaidDebitPrograms