+ All Categories
Home > Documents > Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk...

Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk...

Date post: 08-Jul-2020
Category:
Upload: others
View: 3 times
Download: 0 times
Share this document with a friend
13
PSE Merchant Acquiring Conference 13th November 2019 Opportunities for Acquirers with the Payment Facilitator Model
Transcript
Page 1: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

PSE Merchant Acquiring Conference

13th November 2019

Opportunities for Acquirers with the

Payment Facilitator Model

Page 2: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

2

Achieving Universal Payment Services Provider Vision

CustomersUniversal Payment Services

Company Offers

ChannelsCore Platform Systems

Consumers

Merchants

Corporates

Third

Parties

Mobile

ePOS / POS

/ mPOS

eCommerce

ACH / AIS /

PISP

F2F

Gateway

Processing

eCommerce

Gateway

Processing

Acquiring

Processing

White Label

On Risk

Acquiring

AIS/PISP

Access

SWIFT

International

Transfers

ACH Instant

Alternative

Payments

Collect

Multiple VAS

Multi-

Currency

Interbank Third Party Interfaces

Payment / Clearing and Settlement

Interfaces

Ch

an

ne

l In

tegra

tio

n L

aye

r

Ba

ck

En

d In

tegra

tio

n L

aye

rTerminal Support

Online Support

Switch

Page 3: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

3

EU Payment Evolution

ISO PF Acquirer

Page 4: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

EU Payments Market – Large Potential to Migrate to PF

200+ Thinking?

60-80 PI/

PayFac

300Total

Potential for 100 more (inc. UK) across the EU

Page 5: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

5

PF Model – High Level Roles and Functions

Me

rch

an

t

Pro

po

sit

ion

Me

rch

an

t

Acq

uir

ing

Pro

po

sit

ion

Tra

nsa

cti

on

al

Ma

na

ge

me

nt

Fin

an

cia

l

Arr

an

ge

me

nt

Sales

and

Marketing

Application

Processing

Authorisation

ICS Clearing/

Settlement

Processing

Merchant

Reconciliation

and Settlement

Credit and Risk

Assessment

Merchant

Support

Merchant

Billing

Merchant

Contract

POI

Management

MIS,

Statement

and Reporting

Fraud Credit

monitoring

and

Chargeback

Processing

Value Added

Services

Application

Decision

Shadow Sub-merchant

On Boarding

and Set Up

eCom Gateway Service

F2F Gateway Service

1

2

Payment Facilitator Acquirer

Authorisation

ICS Clearing/

Settlement

Processing

Fraud Credit

monitoring

and

Chargeback

Processing

Shadow Sub-merchant

On Boarding

and Set Up

Page 6: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

PF Commercial and Contractual Arrangements

Blended Rate (%)

Settlement from Acquirer to PF

Settlement from PF to sub-merchants

Acquirer

Merchant (PF)

Interchange ++

Sub- Merchant 1

Direct contract between the PF and sub-

merchant for all services

Acquirer

Merchant (PF)

Direct contract between acquirer and PF

required under scheme rules

Sub- Merchant 1

Commercial Arrangements Contractual Arrangements

Local Regulator

(e.g. FCA)

Contracts

Tripartite Contract including the acquirer

No direct contract unless €1m PI License

66

Acquirer Acquirer(s)

Acquirer Card Schemes

• Additional date requirements

• Processes and procedure

• Net worth requirements

Page 7: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

7

Advantages to Becoming a PF

Avoids ICS Heavyweight

Compliance / Interventions

Matches Competitor

Offers

Operational Advantages

Build Risk Management Experience

Increased Revenue

and Profits

Direct Merchant

Contracts

Cost Management

Page 8: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

8

Acquirer Benefits to Supporting PFs

Balance of Portfolio

Wider Proposition

New Distribution

Channels

New Volumes and

Opportunities

Page 9: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

Building a PF – Common Operational Issues

Proposition and

Product Ownership

Sales – Direct and

Indirect

Regulation and

Governance

Structure

Risk, Fraud and

Compliance

Territory –

Domestic vs

International

High Degree of

Front/Back Office

Automation

Risk Resources /

Skills / ToolsImplementation

Support

0102

03

0405

06

07

08

9

Page 10: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

10

10 Critical Success Factors and Key Enablers

• Commitment to Concept Strong Board/Shareholders, commitment and ownership

• Geographies/Sectors/Merchants Clear perception of target merchants

• Business Model Recognition acquiring is a risk based business

• Sponsorship Selection of a credible acquiring partner and acceptable

contract.

• Implementation Low Risk implementation plan

• Successful Propositions Redefined propositions and products

• Delivery Platform New service delivery PF components (onboarding/merchant

accounting/settlement/CBs)

Critical Success Factors Key Enablers

1

2

3

4

5

6

7

Page 11: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

Potential RisksLikelihood of

Occurrence

Degree of

Risk Study Risk Mitigation Actions to Consider

Choosing the wrong Acquirer Sponsor H• Target smaller players not in domestic

market and not competitors

Failure to meet PI/Sponsor acquirer

criteria L• Ensure good legal advisory input before

application submission

Lack of understanding of acquirer risk

and major CB hit merchant/bankruptcy

or fraudH

• Ensure recruitment of Risk officers. Set-up

Risk Committee and agree Policy

Long delay/overruns in PF

implementation M• Strong project leader, adequate budget,

outsource management

Rapid commoditisation of vanilla

acquiring market by Stripe, Square,

iZettle etcH • Target vertical sector specialization

11

= Low potential to Happen =High potential to happen

11

Becoming a PF – Risks and Risk Migration Strategy

1

2

3

4

5

Page 12: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

12

BEWARE! PSE Health Warning

Page 13: Payment Facilitator ModeleCommerce Gateway Processing Acquiring Processing White Label On Risk Acquiring AIS/PISP Access SWIFT International Transfers ACH Instant Alternative Payments

•13/11/2019

• PSE – Opportunities for Acquirers with the Payment Facilitator Model© 2015 Payment Systems Europe Limited

Thank YouLuke [email protected]

93 Great Suffolk Street

London

SE1 0BX

UK

T: +44 (0)20 3771 8520

W: www.pseconsulting.com


Recommended