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Anthony Hynes Chief Executive Officer – eNett December 17, 2015
GDS
Hospitality Hotels Rental car and ground transport B2B travel industry digital media
Mobile commerce MTT Locomote
Airline merchandising Ancillaries Tailored offerings (Rich Content and Branding)
Payments eNett
Fron
t-End
Airline content Network carriers
Low cost carriers
Hotels ~650,000 chain & independent hotel properties
Car rental ~36,000 car rental locations
Other distribution ~60 cruise lines
13 major rail networks
Co
nten
t
Travel Commerce
Platform Payments eNett
About eNett
eNett provides B2B payment solutions Specialized for the travel industry
Travel agents
Travel suppliers
Solving the inefficiencies
of B2B payments
Travel agents
Solving the inefficiencies
of B2B payments
Travel suppliers
eNett provides B2B payment solutions Specialized for the travel industry
Deep payments knowledge
Broad, highly scalable payments infrastructure
Provides access to 35.9m payment locations online
Deep travel domain expertise
Global network of:
Over 68k agent locations
~650k hotel properties
Direct integration into the Travelport Travel Commerce Platform
Shareholder Primary banking services provider
Regulated by the UK FCA
One of Europe’s leading virtual
card issuers
Our Journey
Our journey Company history
eNett International
established by PSP International
(now Optal)
Conceived eNett Virtual Account
Numbers and built proof-of-
concept payment platform
Travelport became a
shareholder of eNett
Fast growing company -
customers in 48 countries and
expanding market
penetration
Formally launched eNett VANs
Launched seamless
integration with Travelport’s
Travel Commerce Platform
Signed a long-term agreement with MasterCard
2002 2007 2009 2011 2013 2014 2015
How we’ve evolved in the past two years. Data Q3 2015 v Q3 2013
Our journey
increase in Virtual Account
Number revenue
increase in number of transacting customers
increase in number of
settled transactions
increase in number of
countries with clients
(from 33 to 48)
increase in number of employees
(from 78 to 116)
117% 219% 93% 45% 49%
Introducing Virtual Account Numbers
Why use eNett Virtual Account Numbers? Unique and automated payment process created for the travel industry
V A N Unique 16 digit MasterCard number generated for each
supplier payment
Virtual Account Number
Why use eNett Virtual Account Numbers? Unique and automated payment process created for the travel industry
V A N R R R R R R Provides you with…
Risk Reward Reconciliation
Payments with Virtual Account Numbers? Simplifies and automates the process
Automated reconciliation
Secure
Fast
Access to dynamic content and rebates
No bond requirements
Lower cost
Addressable Market
Estimated size of travel sector
eNett: travel payments industry growth opportunity
Source: Euromonitor Travel & Tourism Retail Value (RSP), at current prices with fixed 2014 exchange rates – excludes car rental insurance replacement costs
Latin America
$186bn
North America
$407bn
Europe
$610bn
Middle East & Africa
$122bn Asia
Pacific
$671bn
Total $2tn
Estimated size of travel sector Estimated size of addressable B2B payments in travel
eNett: travel payments industry growth opportunity
$810bn
$310bn
$185bn
$270bn
$420bn
Un-addressable payments
Addressable B2B payments, $810bn
2012-2017 forecasted CAGR – 7.1%(1)
Post paid consumer transaction
Consumer direct to supplier
US point-of-sale (air)
Non-US Air pre-paid non-air
(e.g. hotel, car, cruise, tours, etc.)
(1) Additional opportunities not quantified: payments for non-travel products/services (e.g., advertising, ICT services), from suppliers to travel agents/ corporation (e.g., hotel commissions)
Source: Edgar Dunn & Company, and eNett analysis
Total $2tn China
Estimated size of addressable B2B payments in travel
eNett: travel payments industry growth opportunity
Source: Euromonitor Travel & Tourism Retail Value (RSP), at current prices with fixed 2014 exchange rates – excludes car rental insurance replacement costs
Latin America
$100bn
North America
$120bn
Europe
$330bn
Middle East & Africa
$65bn Asia
Pacific
$195bn
Total $810bn
Immediate target segments
Total immediate opportunity
$178bn
Scheduled air ticket payables
eNett: travel payments industry growth opportunity
2012-2017 Forecasted CAGR – 8.1%(1)
Source: IATA BSP Cash; OTA. Hotel Market Size includes both retail and merchant model
$80bn
OTA hotel payables
$258bn
Low Cost Carrier payables $133bn
Source: Low Cost Carrier payables is estimated from a combination of Euromonitor and PhoCusWright data (4% of Intermediary Air volumes)
eNett Differentiation
Typical issuer cost recovery through interchange eNett cost base as a breakdown of interchange
eNett business model
Processing costs
Risk costs (Credit and fraud losses,
collection and mitigation costs)
Financial carrying costs (Funding interest-free periods)
Interchange = revenue for eNett versus cost recovery for a typical issuer
Margin to share
No credit losses
No collection costs
No fraud
No financial carrying costs
No physical card printing, mailing and other costs associated with statements
Low cost processing
Traditional model New model with Virtual
Account Numbers
Case study example: Online Travel Agency
0.15%
2-3%
Virtual Account
Number rebate
0.5%
Foreign exchange
costs 1%
Cash flow benefit
0.3% Reconciliation
costs 0.1%
Source: PhoCusWright Payments Unsettled, eNett Analysis, IATA BSP Calendars
For every $100m processed, the Online Travel Agency receives ~$500k in rebates Online Travel Agency generates ~$450k in cost savings and is covered by the MasterCard chargeback guarantee
Cost savings
New revenue
Why eNett is uniquely positioned to win
Specialized
Domain expertise
Seamless integration
Low Cost
31 currencies, 17 local settlement
Foreign exchange
Accessible
eNett as cardholder
Available in 71 countries to agencies of all sizes
Strong focus on service
delivery
Secure
Unparalleled tailored funding and chargeback
processes
Protection against supplier default
Innovative
Proprietary platform
Unique settlement capability
Product enhancements
and development
Strategic Priorities
Six goals in 2016
Increase eNett’s penetration of the addressable market
Extend our currency capability to open up further
volume and new markets
Lead the way in customer driven product innovation
Continue to increase differentiation vs. competitors
Extend the operation globally and build scale in people,
systems and processes
Be the #1 travel virtual card provider globally
GDS Q&A