Payments Forum 2017

Real-time payments:
How will your organization engage?
Cecilia Frew
Senior Vice President,
Head of North America Visa Direct
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Agenda

• Visa Direct Update

– Cecilia Frew, Visa

• Examples from the Industry

– Klas Bäck, Braintree
– Sayid Shabeer, Vantiv
– Drew Edwards, Ingo Money

• Panel Q&A
Visa Direct Growth and Progress

Fast Funds Approval Rates Acquirers Active P2P Ubiquity Volume Growth
Reach 93% of 96% approval Major merchant Largest P2P 400% Annual
US Debit Cards rate for P2P and acquirers now apps now using Payment Volume
within 30 Disbursements² implementing, or Visa Direct Growth²
minutes¹ live and ready Platform

The Visa Direct Platform is scaling rapidly

¹Actual fund availability varies by financial institution. Visa requires U.S. issuers to make funds available to its cardholders within a maximum of 30 minutes of approving the transaction 93% of U.S Visa Consumer Debit Cards are Fast Funds enabled as of
December 2016 as attested by Visa Issuers

²U.S. Visa Direct Monthly Dashboard Mar'17

Key Takeaway #1: Visa Direct and the
ecosystem is live and working and driving
the industry’s P2P solutions; ready to grow
even faster this year with Disbursements
Infrastructure – food for thought

There are several faster Prioritize investment Partner, partner, partner

payments systems dollars on front end user
developing in US experience and minimize
• Same-day ACH back-end
• Card Networks
• EWS
• TCH/FIS
Key Takeaway #2: Be thoughtful in your
infrastructure investments; keep your
options open; be quick and “lite” through
partnerships
 Two Distinct Disbursement Use Cases

Faster Settlement Check Replacement

Speed Efficiency

Sharing Economy Contract Staffing Property & Casualty Healthcare Government

Merchant Settlement Marketplaces Lotteries & Gaming Education Utilities

Online Lending Affiliate Marketing Financial Institutions Telecoms Travel

Note: All use cases are subject to Visa review and approval
Two Distinct Disbursement Use Cases

Faster Settlement Check Replacement

Speed Efficiency

• Already interacting regularly • Not interacting regularly

• Already have ACH credentials • Only have address or home phone

• Value proposition is “better cash • Value proposition is “convert from

flow” for the receiver check to digital” for the sender

• Simple to execute: Add “receive • Hard to execute: Need to change

funds in real-time with card” engagement model with customer

• Key to success: Get to market fast • Key to success: Make it easy for
and efficiently receiver to say “yes” through new
engagement models
Key Takeaway #3: Make sure you
understand which use case you are solving
for; it will change your “key to success”
dramatically
Check Replacement – Engaging the customer to collect data
Web or Mobile UX with
“In-Flow” request
• Leverage website or mobile app to
engage customer
• Experience is supplemental to
human interaction, with high
engagement – alerts, tracking, etc.
• Opportunity to collect card data
“in-flow” to streamline user receive
experience
• Key benefit – Higher conversion
rates and lower abandonment
Token-based UX with
“claim” request
• When web or mobile app isn’t
available, but opportunity to
collect cell phone or email
• Text or email triggers “receive
experience” to register card
information
• Must keep it simple or risk
abandonment at registration
• Key benefit - Requires minimal
customer interaction to start
process
Key Takeaway #4: Only way to convert
checks to digital is by changing the
customer engagement model; aspire to
simple “receive experiences” for maximum
conversion
Refining the “receive experience” – choices or not?

Card-only, simplify Paywall, choice

Integrate APIs for a customized, in- Give consumers choice of multiple

line mobile app or web experience payout options
For Illustrative Purposes Only
Key Takeaway #5: Make a decision on
“paywall” which gives choice, or “card-
only” which simplifies; each has it’s pros
and cons
Key Takeaways

1 Visa Direct is live and ready

2 Be thoughtful in your infrastructure investments

Understand which use case you are solving for – faster settlement
3
versus check replacement – key to success very different!

4
For check replacement, use new engagement approaches to
collect customer information

5 There are tradeoffs between offering choice versus keeping it simple

Klas Bäck, Braintree
Sayid Shabeer, Vantiv
Drew Edwards, Ingo Money
Q&A
Payments Forum 2017