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How To Save Money When Paying Suppliers
Case Study: How To Use Your Payment Provider To Achieve This
About Envoy
Experts In Online Payments
• UK based payment service provider authorised by UK Financial Services Authority across EEA
• Experienced Senior Management Team
• Will process in excess of $7 billion & 10 million cross border payments in 2010
• Members of SWIFT, SEPA Direct Debit and Eurogiro and supports UK Faster Payments
• Over 500 merchants including FTSE250’s and large corporate payout clients:
Viagogo (Ticketing), Global Expense (Expense Claims), Xoom (Remittance), David Shields (Insurance), NH Hotels & AirBnB (Travel), Betfair (Gaming)
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Local Bank Payments
International Payments
Local Payment Services
Local Bank Collections
International Collections
Local Payment Services
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Collect Pay
Immediate Access To: Over 200 Local Corporate Accounts
Over 30 Local Payment Services
Over 30 Major Currencies Supported
24% increase online conversions
International Card Services
Envoy Fraud Screening Services
Envoy EPACS Payment Platform
Envoy Gateway Provides Access To....
What Are These ‘Local Payment’ Services?
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eWallets • Customer loads an online wallet then makes purchases
Vouchers• Voucher generated online, printed and cash paid over counter at outlet
Prepaid or Domestic Cards• Customer purchases prepaid card and loads, online or in-store, then can make purchases
Real-Time Bank Transfers• Services enabling customers to make instant bank transfer purchases from their bank
Bulgaria Canada Sweden/Norway/Denmark Hungary UAERussia
Brazil
France/Italy/Spain/Belgium Portugal
Europe Latvia/Estonia Finland Germany Germany Netherlands Spain
Russia Poland Australia/New Zealand
Spain
Argentina/Mexico/Chile
SlovakiaNorway
Chile
Canada
Belgium
Austria Australia
Mexico
Latin America
France
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Envoy also offers low cost SWIFT payments to over 190 countries worldwide
Envoy Banking Coverage
Cost Effective & Fast Payment Routing
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Netherlands Australia
Envoy doesn’t rely on any one bank, network or route. This allows efficient use of payment paths
Envoy operates multiple local banking relationships worldwide
Client Case Study
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Envoy Supporting AirBnB’s International Expansion
Business:
• US-based travel and accommodation service
How business works:
• Person books stay through AirBnB website• Envoy takes payment from person for accommodation on
behalf of AirBnB worldwide• Envoy pays (less commission) to property owner on behalf of
AirBnB worldwide
Company stats:
• 35,000 properties available in 135 countries• Customers from 100 countries world-wide• Over 50% customers non-US based
Company Profile
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Two Burning Issues
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• International Payouts – not enough options
• Only solution was PayPal
• Paper checks to slow/burdensome.
• International wires too expensive.
• International Payments – needed backup option
• Credit card transactions sometimes failed (credit limit, large international transactions blocked, etc.)
• Bank transfer popular in certain markets e.g. Germany, Netherlands
• Access to emerging markets e.g. Latin America
Before vs. After Envoy
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Rental Payments
Booking Payments & Fees
GermanCustomers
German Property Owners
US Envoy German EUR
Currency Pool
Envoy USD
Currency Pool
Fees
Local Bank Transfer & No FX
International & FX
Rental Payments
Booking Payments
• Reduced international transaction fees
• Increased customer payment options• Reduced cost of foreign exchange
Benefits of using a Payments Institution
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• Payouts: International hosts can provide their bank details to us once. We send payouts when appropriate using Envoy API.
• Payments: Guests can pay by bank wire or real-time transfer if they meet criteria.
• Trip far enough in the future? Gives us time to confirm receipt of money.
• High transaction values. Save on fees relative to credit cards.
• Country supported? Details/currency support vary by country.
• Think global, pay local
The Numbers• 39% of our business is cross-border with US (previously
requiring one FX operation)
• 18% is completely international (previously requiring two FX operations)
• Assume average FX operation is 3%, that we have balance in/out flows of currency
• Then:
39% * 3 + 2 * 18% * 3 = 2.25%
In other words, we and our customers save 2.25% on the gross, $225k per $10m processed.
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Stuart Slater – Sales [email protected]
Nate Blecharczyk– [email protected]
Thank You For Your Attention
