Consumer billing Best practices

Consumer billing Best practices Jaap Jan Nienhuis 20 March 2013 tomorrow s transactions today

Thank you For your attention Jaap Jan Nienhuis Innopay Mobile +31 6 27 364 127 tomorrow s transactions today

Usability, Risk, Cost In 1993 Prof. Dr. Betty Collis, a behavioral scientist in the Netherlands, introduced the 3P Model (Practicability, Profit, Pleasure) to determine how an actor relates a solution to his own motives, emotions, experience. When looking specifically at payment services, we need to translate these criteria to match the characteristics of payment services: Usability (=Practicability): what is the (desired) usability for the user (e.g. interaction, speed, reach ) (Minimal) Cost (=Profit): what is the advantage for the user (Minimal) Risk (=Pleasure): what drives recurring use Practica bility U Usability Solution Payment solution Pleasure Profit R Risk C Cost 35 Titel subtitel. Auteur(s) datum voluit. Innopay BV. Alle rechten voorbehouden.

Rating payment products: Credit Transfer Creditor (get paid) Debtor (pay) U Usability U Usability R Risk C Cost R Risk C Cost - Reconciliation errors - Initiation lies with Debtor + No chargeback risk + Low cost - Data entry + Secure, under own control + Low cost 36 Titel subtitel. Auteur(s) datum voluit. Innopay BV. Alle rechten voorbehouden.

Rating payment products: SEPA Credit Transfer Creditor (get paid) Debtor (pay) U Usability U Usability R Risk C Cost R Risk C Cost - Reconciliation errors - Initiation lies with Debtor + International reach + No chargeback risk + Low cost + D+1 - Data entry -> even with IBAN for domestics + International reach + Secure, under own control + Low cost 37 Titel subtitel. Auteur(s) datum voluit. Innopay BV. Alle rechten voorbehouden.

Rating payment products: Direct Debit Creditor (get paid) Debtor (pay) U Usability U Usability R Risk C Cost R Risk C Cost - High total cost of collection - High risk of chargeback fraud + Faultless reconciliation + Initiation lies with Creditor + Low cost - Out of control / pull payment - Risk of invalid collections + Convenience for certain repetitive low attention payments + Low cost 38 Titel subtitel. Auteur(s) datum voluit. Innopay BV. Alle rechten voorbehouden.

Rating payment products: SEPA Direct Debit Creditor (get paid) Debtor (pay) U Usability U Usability R Risk C Cost R Risk C Cost - High total cost of collection - Higher risk of chargeback fraud - Certain after 56 days - Risk of collection failures - Stricter mandate management - B/W listing requires double administration + Full control through B/W listing + Low cost + Faultless reconciliation + Initiation lies with Creditor + Low cost 39 Titel subtitel. Auteur(s) datum voluit. Innopay BV. Alle rechten voorbehouden.

So, the ideal payment instrument Creditor (get paid) Debtor (pay) U Usability U Usability R Risk C Cost R Risk C Cost + Pull payment + Irrevocable + With a 100% recon rate + With no bounce rates + Low cost of collection Yet give sufficient buyer control Yet with sufficient consumer protection Yet this is not the payers problem Still enables to automate my repetitives Yes, also for me 41 Titel subtitel. Auteur(s) datum voluit. Innopay BV. Alle rechten voorbehouden.