A Scandinavian Case Study

Anthony Lloyd-Perks

Head of Sales, EMEA, Serverside

17th March 2011

Transport Card Customization

Serverside Group – background

What is Card Customization?

Why customize a Transport card?

Stockholm Lokal Case Study

Global Leaders in online Payment Card Customization

Established 2003, majority owned by Gemalto since 2009

720 customized card programs in 26 markets

Leading edge SaaS technology thatenables card issuers to offer web based customized card design capabilities to their cardholders

All clients report major incremental card profitability and many generate an additional revenue stream through charging fees

Key message : Customization drives profitability

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Serverside Group - Background

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What is Card Customization?

The ability for a cardholder or card applicant to design and apply for their own card online

Customers choose from a gallery of approved images or simply upload an image from their own photo library

They use a simple design tool to manipulate the image, preview their design and submit it for processing

A hand off to a digital print facility does the rest

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Stockholm Lokal: Existing Service

Travellers access the transport service via paper ticket and closed loop prepaid access card

Travelers apply for the reloadable card online or at a ticket office

2.5m cards are in circulation for only 900,000 travelers – many have/had more than one card

Card is free to travelers and hence treated as disposable

Cost of wasted cards and card reissue is unsustainable

Paper tickets are also costly and inefficient

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Stockholm Lokal: Strategy

Phase out paper tickets and drive up Card uptake and reloading

Promote online application – SEK20 for ticket office and ZERO FEE for online application

With more travelers directed to the website, promote online card customization to

• Get cardholders bonded to their card – encouraging them to reload it rather than dispose of it and get a new one

• Recover processing costs by charging SEK100 per customized card – only SEK80 more than standard card

• Seek to drive a small profit from fees over time

Use fun customization solution to rebrand and remarket card usage and direct travelers to the website

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Stockholm Lokal: Serverside Solution

Launched January 2011 - 3 month implementation

Implementation and ongoing management handled entirely by Serverside/GTO – cost of €9.50 per card

Service accessed via simple link in SL homepage - travelers go online, select a design, pay SEK100 and apply for a card

Images are checked and Cards fulfilled by GTO

Lost your card? Choose to pay for another or pay nothing for standard plastic

Future development – allow reloading of customized cards online (currently at ticket office only)

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Stockholm Lokal Design Page

http://designadekort.sl.se/

SL Marketing Campaign

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Online competition

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d Advertising

SL Marketing Campaign

1104/20/23 Presentation title – Security level Arial (10pt)

SL Marketing Campaign

Stockholm Billboard

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Key Stats

777Customised Cardsgenerated in first full month 

48% Of all cards ordered online  €11.34 Charge to traveler per

customized card

€8811

Stockholm Lokal total revenue in month 1

€9.50

Average cost per card based on estimated 30,000 cards over 3 year contract

€317k Total direct income for Stockholm Lokal over 3 years

€285k Cost for est.30,000 cards over 3 year contract

€Xm The unquantifiable benefit to SL in efficiency savings and good PR

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The real benefit to Stockholm Lokal

Attract new cardholders and reduce paper ticket usage

Address the issue of disposable cards – 2.5m cards issued but only 900,000 travelers – by creating a bond between traveler and card through customization and fees

Drive cardholders to apply online rather than at ticket office – custom option only available online

Generate incremental fee revenue

Use the launch to maximize publicity for card usage and create good PR for the company

Costs down / Income up!!

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What’s in it for Gemalto?

A competitive edge for new business

Enhanced stickiness in the client relationship

Incremental perso and print revenues

Additional income stream – customisation revenue as well as potential project management income

Simple, low risk implementation

A happy, satisfied client

A happy, satisfied MD

Thank You!

Questions : Anthony Lloyd-Perks on +44 7769 143787