ONLINE PAYMENTACTUAL SITUATION & POTENTIAL

Mr. Trần Việt Vĩnh Business Excutive & PT Partner

E-Wallet & Payment Gateway NgânLượng.vn

CONTENT:

• The success story of PayPal.com

• Overview of The Online Payment Market

• Why should businesses/ Individuals use E-Wallet?

The common forms of payment in E-Commerce

Online payment gateway

Bank: Internet/ mobile banking,

ATM E-Wallet

Through Telco: SMS, prepaid cards,

accounts

Delivering and collecting

(COD)

Making Payment by Telco’s service

1) Text SMS 2) Prepaid Cards3) Mobile Accounts

Making payment by Internet/mobile banking, ATM

1) Mobile/SMS Banking 2) Internet Banking

Making Payment by Intermediate Payment Gateway

Banks Businesses

Making Payment by Intermediate E-Wallet

Pay immediately or retain temporarily

DepositBuyers’ E-Wallet

Sellers’ E-Wallet

WithdrawBuyer’s

credit card, bank

account

Seller’s bank account

Online, Offline Online, Offline

Making Payment on Delivery (COD)

Seller deliver goods and collect money at buyer’s place

CONTENT:

• Overview of Online Payment Marker

• Why should businesses/ individuals use E-Wallet

• The success story of Paypal.com

REASON (1): VARIED AND SIMPLE PAYMENT METHODS: BANK AND NO-BANK

DEPOSIT/ PAYMENT SOURCE WITHDRAWAL SOURCE

Online

Internet Banking – All banks in Vietnam Offline

International credit cards (VISA, MasterCard, JCB…)

Transactions of NgânLượng.vn

Prepaid phone cards: Vinaphone, Mobiphone…

Offline

More than 30.000 postal transactions Online

Banks Transfer to bank’s account

Bank’s ATMs

Transactions of NgânLượng.vn

REASON (2): SAFETY

Survey: Why don’t you (customers) go shopping onine? Survey: Why don’t you (customers) go shopping onine?

??? Don’t want to disclose financial information on the Internet

Want to see/ touch the product before buy it

Enjoy searching online but buy the product at the store

Don’t have bank account

Worry about the risks after hearing several frauds

Extremely high shipping costs

Information of 650,000 credit cards may have been stolen650,000 customers’ personal information of J.C Penney and 100 retailers may be damaged when the storage device was stolen.

Sony: 75 million credit card accounts’ data is threaten by Play Station Hacking case.

Hackers that broke in Sony’s PlayStation Network online service may have stolen its members’ credit card information.

REASON (3): TRUST BUYERS ARE PROTECTED WHEN THEY BUY PRODUCTS AND MAKE ONLINE PAYMENT

Sellers

(1) Irrevocable payment.(2) System automatically confirms after 7 days.(3) Must lodge a complaint before the detaintion period ends.

Receive notifications of Shipping/ services

Receive payment

Dispute

Insurance for any payment

Average value of payment:

Just $30/ a transaction

Resolve dispute

Receive products?

Certify

Reason (4): Sellers are protected (Charge Back)

Solve troubles

Protect the sellersReduce risks

Verify the buyer: card, bank account, delivery address, valid documents

(*) Leading technology, created by PayPal

Automatically check the bank’s transaction history, prevent or warn the bank about suspects (*)

Use tools that automatically prevent undesirable transactions: nation, IP address, buyer’s account type

Contact the account holder, the issuing bank… to actively verify and process

More than 2000 anti-fraud experts, working 24/7 in the world

The lowest risk rate: less than 0.17%

Be protected from Charge back by following the safety instruction

Fraud Compensation Fund, nearly $200 million/ year

Some sellers in Vietnam using other payment gateway loss money due to charge back up to 20%

VÍ ĐIỆN TỬ ƯA THÍCH NHẤT 2009 & 2010

REASON (5): REASONABLE EXPENSESTHE MOST SUITABLE SOLUTIONS FOR EVERY BUSINESS

E-Wallet(NganLuong.vn)

Comparision Other solutions

Initial cost 2M ~ 20M Free

Maintenance cost 6M ~ 24M Free

2.000 ~ 6.000 đ 1.000đ + 1% Transaction cost

+ 2% ~ 4%

Up to many months depend on each bank

1 ~ 24 hours, Integration timeEvery channel

Suitable for Big businesses All

Bank or not, both is possibleCustomer Depend on each bank

Market Domestic Payment Domestic and more

Charge-back Self Management Low risk rate, supported

CONTENT:

• The success story of PayPal.com

• Overview of Online Payment Marker

• Why should businesses/ Individuals use E-Wallet?

The leading E-Wallet of online payment

An eBay™ company

• ~250 million accounts in 190 markets • $3 million USD of Mobile payment @ 2011

• ~100 million active users Mobile payment interface

Mobile transfer app • ~110 billion USD each year TPV Digital content payment solution• Millions of business are using it

Principal of operation

Money source Withdrawal

Buyers choose forms of payment

Sellers choose forms of withdrawal

Bank accountCredit card or

Debit Card

Credit card’s account

Bank account

Balance of PayPal E-Wallet

Balance of PayPal E-Wallet

Shopping

Confidential and Proprietary 17

Leading of Web & Mobile Payment

2010: $1.5 billion USD 2011: $3 billion USD

PayPal account for >50% of the Social Gaming payment market in the world

Confidential and Proprietary 18

PayPal is more popular thanVisa/MC

Number of PayPal accounts

% of users prioritize PayPal*

Compare with Visa Card & Master Card

UK 20 million 35%

Australia 5 million

Precede Visa/MC

USA 80 million Equal Visa/MC

Europe 35 million

190 Markets ~250 million

31%

29%

23%

Precede Visa/MC

Equal Visa/MC

200,000 subscribers

Confidential and Proprietary 20

Customers only buy if there is PayPal

Survey shows that: many customers decide to buy products just because the website allows them to pay with PayPal

Businesses Buying rate because the website has PayPal

The world's leading brands choose PayPal

Confidential and Proprietary 22

GÓI DỊCH VỤ “GIẢI PHÁP THANH TOÁN TOÀN DIỆN” TÍCH HỢP 2 TRONG 1: CÔNG CỤ THU TIỀN TỐI ƯU CHO WEBSITE BÁN HÀNG

Vietnam’s businesses receive money from

~250 million buyers worldwide

5,000+ businesses receive payment from

millions of buyers

Confidential and Proprietary 23

Let’s share success!

E-Wallet Business

User

Bank