zimswitch payments conference 2019 · strengthening merchant payments through digital praise is the...

Smart Payments –Driving Payments

Vusi is an experienced technologist and entrepreneur, having been in the business of building Internet-based platforms for 20+ years. Vusi has participated in the Internet value chain from the 'bottom up' intelecoms/infrastructure engineering, enterprise managed services, cloud software solutions, electronicpayments and web technologies. Vusi spent 15 years operating from London and working throughoutEMEA in high-tech companies including AOL, Siemens, BBC, Juniper Networks and consulting for clientspredominantly in Telecoms/Internet, Financial Services and Media. Upon return to Zimbabwe in 2013,Vusi co-founded a Digital Payments and E-commerce Services start-up called Paynow.Paynow has since become synonymous with Online Payments in Zimbabwe with its significant SystemsIntegration capability (Financial Systems) and Card-Not-Present (CNP) domain expertise. Vusi is also theManaging Director at Webdev, which owns and operates several of the most successful internet portalsin Zimbabwe and leverages that experience to develop compelling digital products for enterprisesembarking on their own Digital Transformation journey. Webdev infrastructure runs and defends many ofthe most trafficked and sensitive web properties in Zimbabwe.Vusi is passionate about the development of collaborative and inclusive ecosystems, open standards andsystem interoperability. Vusi believes in harnessing the disruptive power of modern technology to re-imagine established business models and is responsible for leading a small, innovative team of battle-hardened Software Engineers, talented User Experience (UX) /Product Specialists and maverick BusinessDevelopment Managers.

Smart Payments –

Driving the Connected World

Vusi Ndebele

Webdev Group

Paynow

The Trojan

1. Ecosystem development

2. Interoperability

3. Policy matters

Introduction

Vusi Ndebele

Webdev Group

Paynow

My first career (Volume 1)

Chapter 1: Building the Internet (of people)

Chapter 2: Increase demand, Improving experience (Video, CDN)

Chapter 3: Enabling commerce on the Internet (E-commerce,

Payments)

Volume 2 – Disruption?

Webdev Group - Divisions and Brands [Services and Platform]

• Software – Websites, Mobile Apps, ERP

• Infrastructure – Web Hosting & Managed Services

• Marketplaces – Zim classifieds, property.co.zw

• Fintech – Payments & Ecommerce (Paynow, Paynow Topup)

Perspective: Vusi Ndebele, Webdev & Paynow

Vusi Ndebele

Webdev Group

Paynow

Smart Payments – Driving the connected world.

1. Orientation / Terminology

2. Unpack the 2 broad subjects (smart payments &

connected world)

3. Explore the relevance of both subjects in the Zimbabwe

context

4. Review solutions on in the market and what near-term

opportunities exist

5. How do we (industry) create the right conditions for

progress?

Vusi Ndebele

Webdev Group

Paynow

ORIENTATION & TERMINOLOGY

Smart Payments

Improving User Experience

(human-centred)

• Device Form factor

(card, wearable,

embedded)

• Contactless (NFC)

• User experience

(Digital Wallets, QR)

• Security (EMV,

tokenization)

Connected World

Interactions. People-people,

people-things, things-things

• IOT

• M2M

• Autonomous Machine

Decisions

Vusi Ndebele

Webdev Group

Paynow

• 5G Networks

• Blockchain

• Cryptocurrency

• Big Data & Artificial Intelligence

DISRUPTION CATALYSTS

How will they impact you?

“Smart” Payments

• Contactless Payment via mobiles

• Contactless Payment via smart devices (e.g. watch)

• Payment via scanning QR Code

• P2P transfer via eWallets

• Inbuilt App Payment systems

• Payment via mobile website

Local Market: NFC Payments

Opportunity: Digitalise Retail Payment Cards

Opportunity - Digital Wallet

• True Customer convenience

• Accept the reality the multi-

banked consumer

• Ecosystem expansion with

digital-only issuers

• Reduced cost of physical card

production & logistics

• Enhanced PAD security with

biometric & behavioral

analytics

• Data treasure-trove

DIGITAL WALLETS GLOBALLY

Become a merchant with Paynow and have

a verified account ready to receive payments.1.

2.

3.

4.

Integrate with Paynow system.

Receive training from our friendly support staff.

Get Paid. It’s Simple!

SMART PAYMENTS – REGIONAL TRADE & INTEGRATION



2.

3.

4.




• Road Access Fee,

• Temporary import permits,

• Insurance,

• Weighbridge Fees,

• Fuel Procurement

LAW ENFORCEMENT

Cross border traffic

infringements

THE CONNECTED WORLD



2.

3.

4.




Internet of Things



2.

3.

4.






2.

3.

4.




SMART DEVICES



2.

3.

4.




SMART HOME



2.

3.

4.






2.

3.

4.




RELEVANCE

Consumer?

Business?

value chain?

Society?

Civilisation?

Vusi Ndebele

Webdev Group

Paynow

The Trojan

1. Ecosystem development

2. Interoperability

3. Policy matters

PAYMENT ECOSYSTEM DEVELOPMENT



2.

3.

4.




1. How do we create a healthy ecosystem?

2. What is your role in creating such an ecosystem?

3. Can you afford to do nothing?

4. How are we doing on interoperability?

5. Are the current policies clear and do they promote a

healthy ecosystem?

Innovation Panel

AnchorMark Elliott is Division President, Mastercard, Southern Africa. He is responsible for the overallperformance, strategic direction and brand development of Mastercard in Southern Africa. Hisrole includes finding new ways to scale the latest payments technologies to drive financialinclusion.Elliott joined Mastercard in 2011 as Global Products and Solutions Lead and Debit Lead forMastercard in the Middle East and Africa region. Prior to that he worked at Barclays as Head ofSales and Distribution and Head of Retail for Barclays United Arab Emirates. Elliott also held theposition of Director of Business Development for Absa Card South Africa.Elliott holds a BA (Hons) in Combined Studies and is a Member of the Institute of CharteredAccountants for England and Wales. He is a British national who grew up in Hong Kong and India.

Panel

Steve Enderby - EFT Corporation (Pvt) Ltd

Sifiso Mlotshwa – eSolutions (Pvt) Ltd

Alex Shoko - Nedbank Zimbabwe

Mura Nhekairo – Zimswitch Technologies

Tech Showcase

Automated Clearing

House (ACH)

Bank2 Banking Core Systeme.g. FlexiCube

Bank1 Banking Core Systeme.g. Terminos T24

Bank2 Payments Gateway

Bank 1 Payments Gateway

Enterprise Customer Back-end System

(Bank1 Customer)

Bank2 Domain

Hosted ZEEPAY Acquiring System – Multi-Bank

Enterprise Customer Back-end System

(Bank2 Customer)

Enterprise Customer

Employees

Individual Customer

(Bank1 Customer)

Enterprise Customer

Employees

Individual Customer

(Bank2 Customer)

Bank1 Domain Zimswitch ZEEPAY Domain

ZEEPAY Solutions: Clients Front-End Bulk Payments (Acquiring System)

• Bulk uploads

• Target bank account validation

• User ID Directory, e.g. john@BankA

• Straight-through payments into corporate clients, e.g. ZIMRA

• Signing mandates for corporate clients

• Scheduled payments

• Payment cancellation/ recall

• Proof of Payment

• 24/7/365 local support

Strengthening Merchant Payments Through Digital Praise is the Head of Digital Banking at CABS, a subsidiary ofOld Mutual Zimbabwe. She is responsible for creating,implementing and managing the digital strategy for the bankincluding implementation of business strategies to increase andpromote adoption of digital channels as the primary mode oftransacting. Praise has amassed over 14 years of experience inimplementing and managing digital banking and paymentsolutions and managing voice and data campaigns andpromotions across the banking and telecommunicationsindustries.

She holds a Bachelor of Business Management andInformation Technology Degree from Catholic University inZimbabwe and an MBA from the University of Gloucestershire

Strengthening Merchant

Relationships Through Digital

30 May 2019

Praise Chimanikire

Importance of the Merchant ecosystem 1

Acquiring Technologies 2

Addressing Customer Pain Points3

Agenda

Addressing Merchant Pain Points4

Automating existing

processes without

reimaging

Just adding new

channels

Merchant Ecosystem

Issuer Acquirer

Merchant

Automating existing

processes without

reimaging

Just adding new

channels

Successful MerchantsIn order for merchant payments to be a success, it requires buy in from both parties, Merchant and customer:

Customer and Merchant sign up for the same service

Availability of effective payment/acceptance device

• Customer with funds to make purchase

• Ability for customer to authenticate transaction

• Capability of merchant to accept payment (hardware + Power + Connectivity)Both parties must see the value in using the service

Service must be TOM (Top of Mind)

Understand how to use the service (education/UX)

Be willing to pay for the service

0

Automating existing

processes without

reimaging

Just adding new

channels

Acquiring Technology – Swipe/Dip

Advantages

• Improved security• mPOS now widely available • Customer preference

• Used internationally • RTGS Dollars

Disadvantages

• Card cloning• Stolen cards• Network issues

• False approval/decline• Costs involved

• Battery life• Settlements the following day

• Cost of infrastructure

Just adding new

channels

Acquiring Technology – Tap ‘n’ Go

Advantages

• Faster • Reduces chances of card cloning • Can be used offline

• Can be used in remote areas • Customer preference

Disadvantages

• Identity Theft• Stolen cards• Infrastructure

• Closed Loop• Costs involved

Automating existing

processes without

reimaging

Just adding new

channels

Acquiring Technology – QR Codes

Advantages

• Any type of phone can be used

• Low cost of infrastructure

• No battery issues• Can be used on websites or

bills

Disadvantages

• Delayed confirmation • Laborious ussd codes

Automating existing

processes without

reimaging

Just adding new

channels

Acquiring Technology - Sound

Advantages

• Sound wave cannot be intercepted

• Devices cheaper than traditional

POS/mPOS• Faster payment method

• No need for internet connectivity• Peer to peer payments

Disadvantages

• New technology• Customer Education required• May not work in noisy areas

• Close proximity required for peer to peer transactions

Just adding new

channels

Acquiring Technology – Mobile Money

Advantages

• Owned by MNO

• Apps can be zero rated

• Confirmation SMS

prioritised

• Immediate liquidation of

funds

• Peer to peer payments

• No additional infrastructure

required

• Preferred payment method

• Requirements are lean

• Monthly limit high

• No need for internet

connectivity/data

Disadvantages

• Costs• Prone to fraud

Just adding new

channels

Acquiring Technology - Ecommerce

Advantages

• Overcome geographical

limitations

• Gain new customers with search

engine visibility

• Lower costs

• Locate product quicker

• Eliminate travel time and cost

• Provide comparison costing

• Enable deals, bargains, coupons

and group buying

• Provide abundant information

• Remain open all the time

• Create markets for niche

products

• Create targeted communication

Disadvantages

• Lacks personal touch• Delays goods• Does not allow you to

experience the product before buying

• Anyone can setup an ecommerce website

• Security

Just adding new

channels

Case for Digital Payments in retail

Cash pain point for some merchants

-Security -Always have change

-Distance

Better interfaces on smartphones as smartphone

penetration increases

Technology that makes the transaction simpler

for both merchant and customer e.g. QR

payments, NFC

Transaction type that only requires customers to

enter PIN for authentications

0201

Account

Merchant

collections

account

becomes

transacting

account

T+0

Merchant is

liable for

reversals

and fraud

Settlement

Digital Payment Provider

Business Intelligence

Understand purchase trends and customer

loyalty

Outgoing Payments

Make payments via bank transfer

Omni Channel

Access via a feature phone, smartphone or

computer

Targeted SMS Marketing

Segment messages to suit

customer preferences

Value Added Services

• Customer Relationship

Management

• Loyalty

• Promotions

• Store Credit

• Layaway

Customer Relationships

• Working Capital

• Inventory management

• Paying suppliers

• Paying Staff

• Monitoring Staff

• Managing Fraud

Operational Challenges

• Sales Tracking

• Accounting

• Peer statistics

• Forecasting

• Tax reporting

• Customer feedback


Value Added Services

VAS are powered by digital payments and address merchant pain points

and create a compelling value proposition

Customer Relationships

Pain Point

Retail is a highly

competitive space

Margins are thin

Merchants have few

competitive strategies

The relationship with

the customer is what

most cite as strength

They have few tools to

manage relationships

well

Driven merchants use

manual systems

Item 2Current

Solution

Be a nice guy

Keep a paper log of top

customers and their

phone numbers

When a top customer

hasn’t come in for a

while call them

Send top customers

SMS greetings

Let top customers buy

on credit sometimes

Challenge

Manual processes take time

and effort

Rely on your sales force

Records must be kept

consistent or value falls

Must remember to review

their record regularly

Hard to remember more than

20 – 30 customers by face

and name

Employees don’t’ know who

top customers are or use the

log

Opportunity

Automatic record of

transactions and

contacts

Auto flag the best 25%

to get to know

Thank you messages

to loyal customers

Marketing offers to

absent top customers

Sales volume and

value by month

Lost revenue from

absent regulars

Sales growth in the last

month for you and

similar merchants in

the neighborhood

Customer Relationship Management

Operational Challenges

Pain Point

45% of MSME’s

in Africa are

unable to grow

due to lack of

financing

Lack of

comprehensive

financials for the

business

Lack of collateral,

and credit history

Item 2Current

Solution

Borrow from

friends and family

Go to a loan

shark

Some suppliers

offer inventory on

credit

Some have

access to

mircrofinance

loans

Challenge

Social capital is lost

and friends and family

may not always have

money to lend

Loan sharks are

expensive and risky

Very few suppliers are

willing to give credit

Microfinance hasn’t

scaled enough to

cover al MSME’s

Opportunity

Auto credit

scoring based on

digital

transactions

Credit limits

based on a

percentage of

monthly cash flow

No collateral

required

Working Capital


Pain Point

Requests from

customers for

credit

Do not have

enough

information to

give customer

credit

Feel obliged to

give customers

credit without full

information

Item 2Current

Solution

Merchants extend

credit to best

customers

reluctantly

Customers spend

a lot of time with

merchants to

cultivate a

relationship to be

ale to ask for

credit

Challenge

Merchants don’t

necessarily have the

capital to allow

lending

No expertise on credit

risk assessment

Merchants cannot say

no to good customers

Reminding customers

to repay takes time

and money

Opportunity

Keep track of

customer habits

within that store

Enable instant

repayment from

customer

Track customer

credit and

repayment dates

Auto credit

scoring based on

digital

transactions

Store Credit for Customers

Problems faced by FMCG and Retail Entities

ED

CB

A

Retailers and

FMCG Entities do

not know average

shelf life of their

products so some

products end up

expiring whilst in

stock.

What is the

shelf life of this

product?

A loss leader is a

product whose

price can be easily

reduced in order to

lure customers. If

this is not done

properly, customer

will not be attracted

or the retailer will

lose revenue.

Which product

can be the loss

leader?

Retailers will be

able to predict the

number of

customers they

serve, daily

revenue per branch

and number of till

operators required

per day.

What is the

predicted

revenue flow for

the next month?

To allow FMCG

Entities to know

the products that

should be

delivered

simultaneously.

At the same time,

products that

should be placed

next to each

other.

Which products

are likely to be

purchased

together?

Time series analysis

will be done to

predict product

sales trend. This will

help FMCG Entities

to produce and

deliver products at

the right time whilst

retailers will stock

the right products at

the right time.

Which product

is bought the

most in a

certain season?


Customer Relationship

Management

Loyalty Scheme

Card System

Management

Improve

engagement and

activity ratio for

existing customers

Monetize

Provision of more

revenue streams

through trend

analysis

Grow product

portfolio to cater for more customer

segments

Big Data Analytics

Market Basket

Analysis

Assortment

planning

Decision Analytics

Behavioral Analysis

Reporting

Capabilities

Executive

Dashboards

Interactive Charts

Adhoc queries on

product

performance

Value Proposition for the formal sector

Real Time Dashboard

Retailers will be able to

build Executive Dashboards

to visualize their Key

Performance Indicators

(KPIs) that allow to make

informed decision at the

point of impact.

Card Management Capabilities

Ability to issue and maintain branded

smart cards for the various retailers.

The cards can be open-looped and

this will allow customers to perform

various transactions with their cards

and enjoy discounts when transacting

with these cards or closed loop and

transact in particular stores only.

Mobile App Capabilities• Tailor made mobile App for retailers.

• Stream data from the app and monetize it.

Data Collection

Collect data from retailers’

operational systems by

setting-up a big data

platform for the outlets.

Data Repository to house

repository data.

Inventory Insights

Retailers will be able to

drive inventory insights

on their reorder level,

lead time, safety stock

and supply chain

management.

value

value

value

value

value

value

Analytics

Perform advanced analytics such as

Market Basket Analysis, Assortment

Planning and Decision Analytics.


Add a new feature on the device which

will capture individual items per

transaction and log it into the BIG DATA

platform.

Small Merchants will benefit from this

added feature on mPOS which will

enable them to capture information as

they are transacting. This will also

enhance their audit and inventory

insights..

Collect, analyze and monetize that data

to FMCGs, by giving them better

insights on how their products are

moving and performing on the market.

THANK YOU

Tech Showcase

zimswitch payments conference 2019 · strengthening merchant payments through digital praise is the...

Documents