Introducing PIF_Q4 09

8/14/2019 Introducing PIF_Q4 09

1/23

Promotingandsharingknowledge,ideasandstandardsforprepaidcommerce

1


2/23

ThePrepaidIndustry

IncreasedGlobalisation

of

Prepaid:

Paymentnetworkdevelopments,suchasSEPA,willboosttheabilityof

Bankswillincreasinglyuseprepaidasatooltosupportcorporatesintonewcountries

Prepaidwillgrowincountries(suchasRussia,BrazilandIndia)wherethereisa

lackof

an

established

retail

banking

and/or

credit

infrastructure

Supportingthefullvaluechain globalclientswillneedglobalbanksandprocessors

FurtherPropositionDevelopment:

Multiproductcardscombiningprepaidwithsavingsandcredittoincreasethecustomerbase

s ng ene wor s o ur er eve op eopenc ose oopconcep

Furtheruseoftechnologyinservicingtohelpthebusinesscase

2

Source:JohnGoodale,TSYS


3/23

Nearly$680billionestimatedin

globalprepaidspendingby2015

(US$InBillions)

UnitedStates&1

UnitedStates&1

Europe2

$120

Europe2

$120

$385

$385

SouthAsia,

MiddleEast&Africa1

SouthAsia,

MiddleEast&Africa1

Latin America &

Caribbean1,3

$115

Latin America &

Caribbean1,3

$115

15

15 Asia/Pacific1

$45

Asia/Pacific1

$45

Source: Boston Consultin Grou Ma 2008 Research Commissioned b MasterCard.

3

, , .

1.CountrieswithinthescopeofMCcommissionedstudy:U.S.,Canada,Brazil,Mexico,Australia,China,HongKong,India,Korea, Japan,South

Africa,France,Germaniccountries,Italy,CEE,Poland,Russia,Spain,U.K.andIreland,Benelux,Portugal,Scandinaviaand Turkey.2.Europedata

fromPSEstudy,August2008,ResearchcommissionbyMasterCard.3.LACisbasedonBrazilandMexicovolumesonly.


4/23

PIFObjectives

PrepaidInternational

Forum

(PIF) is

an

open,

global

forum

for

allparties participatingonacommercialbasisintheprepaid.

Developsguidingprinciplesandbestpracticesforprofitableand

ethicalparticipation

in

the

prepaid

economy

expansionofprepaidcommerce

rov esa

vo ce

or

t e

n ustry

to

spea

to

nat ona

an

internationalregulatoryandgovernmentalbodies,andthemedia

4


5/23

WhyisPIFnecessary?

Theprepaidindustryisinseriousdangerofreputationalrisk

e n us rynee s ocome oge erw aun ormapproac

Uncertaintyoverprofitablebusinessmodels

Detercowboyoperators

Riskofmisguided,contradictorylawsandregulations

Noindustrytracking

Noonespeaksfortheindustry

Stronglobbyingrole

5


6/23

PIFBoardofDirectors

ColinGreaves

OperationsDirector,NewcastleBuildingSociety

ExecutiveVicePresident,TSYS

MichaelLafferty

MichaelMueller

CEO &Founder, a safecard.com

Chairman,Lafferty

Group

ChrisReddish

Chairman,PrepaidInternationalForum

YvonneWest

GiftCardManager,Sainsburys

FionaWhitaker

6

HeadofGift&PrepaidProducts,Indue (Australia)


7/23

PIFExecutiveCommittee

RobertCourtneidge

GlobalHeadofCards&Payments,Salans

Director,Edgar,Dunn&Company

MichaelLafferty

Chairman,Lafferty

Group

ChrisReddish

,

*Special

advisor

to

the

PIF Board

PIF Founders:MichaelLafferty,ChrisReddish,KenHowes(Edgar,Dunn&Com an andRobertCourtneid e

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8/23

PIFStructure

BoardofDirectors

LaffertyGroup

en ra (est.2007)

PIF Australia/NZ(est.2008)

PIF India(est.2009)

PIF Brazil(est.2009)

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9/23

MembershipProfile

Banks&FinancialInstitutions

CardSchemes

ProgrammeManagers&CardMarketers

Retailers

MoneyTransferOperators

Te cos

Mo i eOperators

PaymentsProcessors

Legal&RegulatoryServicesProviders

PrepaidSolutionProviders

TransportOperators

AncillaryServiceProviders

Acquirers

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10/23

Over50membersspanning

fourcontinents

AccorServices

Brasil

&

India

ALCOConsulting

AmericanEx ress

FICO FIS Australasia

GEMoney

Salans SIASSB

Sidley Austin

AndriolieGiacominiAdvogados

ATIVITelecomnet

AustraliaPost

AxisBank

GrassRootsGroup

GTPGroup

HDFC Bank

Icelex

StandardCharteredBank

StateBankofIndia

Szprinc ConsultoresAssociados

BancoCarrefour

BangkokBank

BankofAmerica

BlackhawkNetwork

ICICI Bank IDT FinancialServices

Indue

Itau Unibanco

T e

UK

G t

Car

Vouc er

Association

TransSend

TransportforLondon(TFL)

Boanerges&Cia

BPAustralia

CartaSolutions

CBSS Visa

Vale

LaSer

MasterCardWorldwide

Metavante

NewcastleBuildingSociety

UNIK

UnionBankofIndia

VisadoBrasil

Cuscal

Deacons

DeutscheBankIndia

Edgar,Dunn&Company

OsborneClarke

Paysafecard.com

Raphaels Bank

RetailDecisions

WesternUnion

WhiteEagle

YesBank

10

epay

Equens

Esafetransfer

SACS SouthAmericanCardServices

Sainsburys


11/23

PIFServices

Keyindustry

metrics

and

trend

data*

Researchcapability

o eso

con uct

an

est

pract ce

Re resentation with re ulators media and

consumerbodies

PIF

Data

Aggregat on

Serv ce

11 5


12/23

PIFBenefits

PIFbenefits

include

access

to:

,

Models,ConsumerEducation,Fraud&RiskandTransport

AccesstoPIFgeneratedresearchincludingmarketresearchreportsand

WhitePapers

Annualsummitandgeneralmeeting

6memberbulletinsayear featuresincludeglobalmarketanalysis

andresearch

Aninteractivewebsite

12 6


13/23

PIFAccreditation

Why?

Tocreateaninternationalstandardforgrowthinprepaid

Toaddressadversemediacoverageaboutprepaidsuchasallegedmoneylaundering,aggressivemarketingandpoor

cus omerserv ce

Toenhanceconfidenceamongstusersofprepaidproducts

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14/23

PIFDataAggregation

Service

Objectives(June

2008):

CreateaDataAggregationservicethatprovidesrealinsightandvaluetothoseissuingprepaidcards

Providebenchmarkdata

Test/Pilotthe

UK

prior

to

roll

out

to

other

PIF Chapters

on

a

template

or

managed

basis

o rom ere:

Dataiscollectedfrom:

Prepaidcardprogrammemanagers,BankswhoalsomanageprogrammesandBINsponsoringbanks

NoclosedloopdataiscapturedasthisiscoveredalreadybytheUKGCVA

14

a aco ec e re ec ngc rca o prepa car sec or


15/23

PIFDataAggregation

Service

CardCategorisation NottooBroad:NottooNarrow

Withmajordifferencesincardcharacteristicsbetweendifferenttypesofcardsthedangeristhatbyamalgamatingdifferenttypesofbehavioursthe

a a ecomesmean ng essas ecomesanaveragera er ana enc mar

TheLaunchCategories:

Government/CorporateLoaded

Consumerpurchasednonreloadable /Gift

FX

/

Travel

/

Currency

CardsConsumerloaded

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16/23

PIFDataAggregation

Service

AFlavour:

ConsumerLoadedCards

pertransaction

FX/TravelCurrencyCards

Onlya

slight

increase

in

the

number

of

ATM/POS

transactions

per

card

Corporate/GovernmentLoadedCards

Where Next?

The service has been tested and tweaked/debugged

Ready to roll out to other international PIF chapters

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17/23

PIFCentralWorkingGroups

BusinessModels(BMWG)2007 2008

ConsumerEducation

(CEWG)

Transport

(TWG)

Fraud&RiskSubWorkin Grou FRSWG

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18/23

BMWG(20072008)

BusinessModels

Working

Group

(BMWG)

ChairedbyJohnGoodale,TSYSEurope

Compose o PIFMem ersintereste ina vancingt e usinessmo e sspecificallyforschemeenabledprepaidcards

,

businessmodels

that

are

emerging

globally

in

prepaid

OperatedwithintheremitofPIF,representedthegeographicalmembershipasean coverst e us nessmo e c a engesa ect ngt e nternat ona

prepaidindustryasawhole

Provided a link into PIF to allow it to communicate with and influence externalbodiesthatcouldhaveanimpactondevelopingthebusinessmodel

withintheprepaidindustry

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19/23

CEWG

ConsumerEducationWorkingGroup(CEWG) ChairedbyPeterSidenius,Edgar,Dunn&Company

ThetwomainaimsoftheCEWGaretorecommendcodesofconduct forprepaidbusinessesand

ThetwoaimsareconsideredtoberelatedbutwillresultindifferentdeliverablesforPIF.Theintentionisnottoreinventthewheelintheseareasbuttakewhatisbestpracticefromaroundtheworld,considertheapplicabilitytotheEuropeanenvironmentaswellaswork/collaborate

with

all

interested

bodies

to

ensure

understanding

and

commitment

CodeofConduct theobjectivewastodiscussandagreetoastandardisedwiderangingcodeofconductforprepaidbusinessesthatcanberecommendedforadoptionbythewiderindustry

.

ConsumerEducation theobjectiveistodiscussandagreetostrategies,plansandactivitiesfortheeducationofconsumers,otherprepaidusersandthemediaacrossEuropetodemonstrate

the

real

benefits

of

prepaid

solutions

and

provide

guidance

on

how

prepaid

operates.

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20/23

FRSWG

Fraud&

Risk

Sub

Working

Group

(FRSWG):

Objectives:

ToexplorewhatPIFcouldandshouldbedoinginrelationtofraudandriskinthe

prepaidmarketandtorecommendactionstothePIFWorkingGroups

oun ers an e ypeso rau nex s encean es a s ways om ga er s

Workinprogress&complete:

InteractiveTypologyRegister:documents(international)incidentsoffraud,typesof

fraud,geography,itssignificanceandbasicmitigationstrategies.

Discussionareasinclude:

Negativebalances

Secondary

issuance

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21/23

LRWG

Legal

&

Regulatory

Working

Group

(LRWG) ChairedbyRobertCourtneidge,Salans

O ect ves:Toprovideamediumthroughwhichtoliaisewithlocalregulatorstodealwithinconsistenciesacrossdifferentjurisdictionsandtrytoeducateandmoveregulators

Tobuildaknowledgebankacrossdifferentkeyjurisdictionstoenablememberstounderstandthelocallawissuesofrunningcardprogrammesforprepaidcardsint osecountries

Toprovidealinkforsomeofthekeylocaltradeorganisationssuchas

trade retail a ments rou s to achieve an international reach and understandin of howlocallawsandregulationswillapply

21


22/23

TWG

TransportWor ngGroup TWG

Chairedby

Alan

Leibert,

Alco

Consulting

Toaddressissuescreatedthroughthenoncashfarepaymentsrequirementin

Governanceandregulatoryissues

Technical,standardsandperformanceissues

ToincreaseawarenessofPIFinthetransportandalliedmarketplaces

. .

provideaforumformeetinganddiscussionacrossPIFWorking

Groupsandallmembertypes

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23/23

Withspecialthanksto:

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Documents

Introducing PIF_Q4 09