PCM Vol.1 - Issue 7
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Exciting thought leader stories about happenings in the payments world | + Insight into In-house recruiting<br />
<strong>PCM</strong><br />
Vol 1. <strong>Issue</strong> 7<br />
Dec. 2015<br />
YOUR GATEWAY TO THE WORLD OF PAYMENTS<br />
Finacial Services in<br />
Modern Times
Welcome to the 7th issue!<br />
You are reading the seventh issue of the Payments & Cards Magazine. In order<br />
to keep our clients, associates, subscribers and all payments professionals in the<br />
loop, we have decided to create a monthly magazine, now already in its seventh<br />
issue.<br />
The seventh issue features events in the Payments industry, thought leader<br />
articles, top jobs and more! The magazine is currently expanding its scope and will<br />
cover topics such as, Q&A, product/ service reviews, statistics & facts, educational<br />
articles and other great content in the following editions!<br />
The magazine is also a good way for you to keep in touch with what is happening<br />
in the Payments world as well as like minded professionals. If you haven’t checked<br />
in with us lately, we think you will be surprised and excited about all the wonderful<br />
things happening in the industry.We hope to hear from you soon, and we welcome<br />
your feedback!<br />
Throughout each issue, there will be descriptions and lists of events within the<br />
Payments industry happening this month, as well as announcements and latest<br />
developments & partnerships. If you are a thought leader and would like to be<br />
featured or present your thoughts, please get in touch.<br />
On the other hand, as a business, the magazine offers you various advertising<br />
possibilities. Want to learn more? Just contact us!<br />
If you have any questions, suggestions, or concerns, please address them to the<br />
editors:<br />
Amir Abdin - amir@paymentsandcardsnetwork.com<br />
Duc Dang - duc@paymentsandcardsnetwork.com<br />
The Payments & Cards Network team wishes you good reading!<br />
002
Contents<br />
thoughtleaders<br />
spotlight<br />
14<br />
3<br />
8 10 14<br />
STORIES<br />
4<br />
8<br />
10<br />
12<br />
Thought Leaders: Unlocking Wallet Payments in Sub-Sahara<br />
Jide Akindele continues the series about the development of the mobile<br />
payments industry in a promising part of Africa.<br />
Thought Leaders: 10 things to do to keep your customer satisfied<br />
Nick Fox presents key actions to keep your business’ customers engaged and<br />
loyal.<br />
Thought Leaders: E-commerce in Europe<br />
Yves Lalieu discusses the new e-commerce environment in Europe and its<br />
accompanying challenges.<br />
Thought Leaders: A day in the life of an in-house recruiter<br />
Magaret Buj gives us a deep insight behind the scenes of tasks and challenges<br />
as an in-house recruiter at Yieldify.<br />
14<br />
17<br />
18<br />
Spotlight: Paystand<br />
We talked to the makers of the payment-as-aservice<br />
platform.<br />
Hot Jobs<br />
Looking for a new role and exciting challenges?<br />
Check out our latest job opportunities!<br />
Events<br />
Here we showcase the most exciting upcoming<br />
events in the payment industry.<br />
003
By Jide Akindele<br />
November 30, 2015<br />
Thought Leaders Corner<br />
global<br />
business<br />
This is the third edition of Jide Akindele’s series<br />
focusing on the developments in the payment<br />
market in Sub-Sahara Africa<br />
Unlocking Mobile Wallet Payments<br />
in Sub-Sahara Africa<br />
With the ubiquity of mobile phones<br />
across Sub-Sahara Africa, it is<br />
apparent that many lives have<br />
improved on the communication<br />
level. More and more people across the<br />
continent are gaining access to the internet<br />
additionally enriching themselves with<br />
information from across the globe. According<br />
to a recent GSMA report as at December 2014,<br />
Sub-Saharan Africa has 146 million registered<br />
wallet accounts of which 61.9 million are active<br />
accounts.<br />
The growth of mobile wallet payments is fuelled<br />
by the limitations of other payment methods<br />
and the accessibility to majority of the Sub-<br />
Saharan population.<br />
The Keys to unlocking adoptability<br />
Interoperability: In the West African region most<br />
of the Mobile wallet rollouts have been closed<br />
looped, with continuous fighting for dominance<br />
amongst providers, the up take has not been<br />
as dynamic as predicted considering the total<br />
population. Lessons from East Africa particularly<br />
Tanzania, Kenya and Rwanda show that there is a<br />
clear advantage in interoperability, and that this<br />
is a recipe for growth and stimulation of mobile<br />
wallet payments across the region. There is<br />
more value in being able transact through other<br />
providers as illustrated in (Figure 1). Results have<br />
been far reaching in the 4 countries that have<br />
stepped up to the plate, transaction volumes<br />
have risen and continue to grow.<br />
© SES S.A<br />
004
Loyalty incentives: Incentives drive repeat<br />
purchases and recommendations, if mobile<br />
wallet users know that they are bound for some<br />
kind of incentive for being loyal users, then it<br />
is bound to fuel continuous use of the wallet<br />
medium. Many non-adopters currently do not<br />
see the full advantage of using a mobile wallet<br />
over cash or other mediums, as they cannot see<br />
any price differentiation, therefore, a compelling<br />
proposition must be in place to stimulate usage.<br />
Consumer behaviour data: “Big data not<br />
just transactions” should be seen as a great<br />
opportunity to get direct access to consumer’s<br />
behaviour, this in itself is a gold mine. The Sub-<br />
Sahara region has been plagued with minimal<br />
accurate consumer data. Such rich data would<br />
help forecasters provide meaningful analytics,<br />
for local and international investors and other<br />
business decision makers. Big data as a strategy<br />
would stimulate future growth of both B2B and<br />
B2C activities.<br />
Consumer education: a lot of consumers<br />
within the Sub-Sahara African region still prefer<br />
cash purchases face to face and take away what<br />
they have paid for, due to concerns of security.<br />
However, this is also the case with merchants<br />
concerned with fraud and its impact on cost of<br />
sales. Consumer education and assurances that<br />
mobile wallet payments are a secure payment<br />
channel, would most likely allay fears. In the case<br />
of merchants, fraud reduction is highly reduced<br />
especially issues surrounding “charge backs” and<br />
“not present” M-commerce online purchases<br />
which is a steady growth area in Sub-Sahara<br />
Africa.<br />
Competitive low fee structure: This is high<br />
on the agenda for many existing or would be<br />
merchants looking for alternative payments. A<br />
high fee or complicated structure would be seen<br />
as a barrier to entry, therefore, minimising the<br />
chances for rapid growth. The same applies to<br />
consumers, it has been stated that some users<br />
cannot afford the cost of maintaining a bank<br />
account due to cost. The strategy for mobile<br />
wallets providers should always be to reach<br />
volumes at low costs as a means to incentivise<br />
the growth of wallet uptake.<br />
Content availability: Content is king! If<br />
consumers have a variety of services and<br />
products to purchase with their wallets, growth<br />
adoption will follow. As it stands P2P, Airtime<br />
Top-up, bulk pay and Bill pay dominates the<br />
volume of transactions to date. M-commerce is<br />
set to follow, with the introduction of a lot more<br />
variety of services. As recent as November 2015,<br />
a large well known Middle Eastern airline tied up<br />
with a mobile wallet provider in Kenya, enabling<br />
acceptance of mobile payments for flights. This<br />
is indeed exciting news, other major service<br />
providers around the globe should set to follow,<br />
due to relative ease and cost effectiveness of such<br />
services for both the providers and consumers.<br />
Conclusion<br />
There are several keys required to unlock mobile<br />
wallet adoption in Sub-Sahara Africa, not a single<br />
key. Despite the current successes witnessed in<br />
the region, a good strategic mix will ensure that<br />
adoption growth would continue in an upward<br />
trend. In short the ecosystem must look into the<br />
pressure points of the consumers in order to get<br />
their continuous attention and loyalty.<br />
005
MMIT, Mobile Media Info Tech, is a mobile payment processor with a mission to<br />
revolutionize the mobile payment process.<br />
MMIT focuses on the Sub-Sahara Africa market and partners with financial institutions<br />
and international merchants to provide value added services to mobile wallet providers<br />
and users. Please visit MMIT at www.mmitonline.com.<br />
Jide Akindele, Founder,<br />
MMIT<br />
Jide is a visionary entrepreneur with a deep and wide<br />
knowledge of technologies based in the mobile money and<br />
payment transaction space. Mr. Akindele has held various<br />
directorship positions for companies in West Africa and has<br />
worked in USA, Nigeria and the UK since 2007.
eCommerce<br />
Africa Confex<br />
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Follow @eCommerceConfex and @KineticEventsSA on<br />
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RAPHAEL AFAEDOR<br />
EMILIAN POPA<br />
VINNY LINGHAM<br />
17 & 18 FEBRUARY 2016 | THE CTICC, CAPE TOWN<br />
WWW.ECOMMERCE-AFRICA.COM<br />
JOE OKLEBERRY<br />
SIMDUL SHAGAYA<br />
CAREN GENTHNER-KAPPESZ<br />
Sponsors,Exhibitors & Partners<br />
DiGAME<br />
Co-Founder, Jumia/CEO &<br />
Co-Founder, Supermart<br />
Principle, Digital Growth<br />
Africa & Middle East<br />
Co-Founder and CEO,<br />
Gyft<br />
Internet Strategist,<br />
Naspers<br />
Founder and CEO,<br />
Konga Online Shopping<br />
CEO,<br />
MIH/ Naspers<br />
An award winning and<br />
celebrated businessman in<br />
Africa, Raphael heads up the<br />
biggest online retail platform<br />
in Nigeria, Supermart and has<br />
taken the African business<br />
scene by storm. His previous<br />
work with one of the biggest<br />
online companies, Jumnia,<br />
launched him to success, and<br />
cultivated his passion for Africa<br />
and its development.<br />
Emilian’s passion for<br />
eCommerce and online<br />
trends shines through when<br />
he speaks. He describes<br />
himself as an eCommerce<br />
and global entrepreneur and<br />
has headed up some of the<br />
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the world including Rocket<br />
Internet, Groupon and Zando<br />
among others. He is currently<br />
living between South Africa<br />
and the Middle East with his<br />
investment initiatives.<br />
Most will instantly recognise<br />
Vinny straight from the small<br />
screen and his position on<br />
South Africa’s Dragons Den,<br />
and others will know him<br />
as the co-founder of some<br />
of the biggest initiatives in<br />
online tech in South Africa:<br />
Clicks2Customers, Gyft and<br />
Silicon Cape Initiative. He<br />
has since moved to the actual<br />
Silcon Valley and is rubbing<br />
shoulders with big names<br />
like Richard Branson among<br />
others.<br />
It has been said that anything<br />
that this man shares will be<br />
deep and thought provoking.<br />
Joe used to be Mary Meeker’s<br />
right hand man, and was part<br />
of the team that took LinkedIn<br />
and MailRu public. Described<br />
as the most experienced man<br />
in internet in Africa, his skills<br />
and expertise are in high<br />
demand and he was pounced<br />
on by Naspers to hold a<br />
position here in Cape Town.<br />
Sim is the Founder and<br />
Executive Chairman of<br />
DealDey Limited. He has over<br />
13 years experience in New<br />
Media & Investment Banking<br />
and worked with leaders such<br />
as MicroStrategy, Lucent<br />
Technologies and Real<br />
Networks. Sim also served<br />
as the Africa lead for Google.<br />
He graduated from George<br />
Washington University,<br />
Dartmouth College & holds an<br />
MBA from Harvard Business<br />
School.<br />
Former CEO of Kalahari.<br />
com, Caren was relocated<br />
to Cape Town from Berlin,<br />
with prior roles including<br />
a nine year stint at eBay<br />
as general manager for<br />
shopping.com Germany, and<br />
as a director and GM for eBay<br />
Express Germany. Caren<br />
has also worked as COO<br />
at brands4friends, an eBay<br />
subsidiary in Germany.<br />
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Trends merchant services market<br />
10 things you should do to keep your customer satisfied<br />
Fighting for new business is a<br />
priority for many organisations.<br />
But keeping your existing<br />
customers can actually be more<br />
rewarding and cost your business far<br />
less. Existing clients are the bread and<br />
butter of any business. But how often<br />
are they taken for granted and virtually<br />
ignored - apart from making sure they<br />
pay on time - until they decide to take<br />
their business elsewhere. Follow these<br />
steps to make sure your customers<br />
remain engaged and loyal:<br />
1. Customers are special – never treat<br />
them as if they are commodities<br />
While it may be true, your clients<br />
never want to think they are simply<br />
a means to your ends. Remember<br />
your customers are people first and<br />
foremost and should always be treated<br />
with respect and consideration. This<br />
notion should directly influence how<br />
you communicate and work with them.<br />
every day or even every week, but do<br />
make an effort to talk with one of your<br />
best customers every day; it does not<br />
have to be about business. Everyone<br />
likes to be made to feel special and you<br />
can go a long way to developing a deep<br />
relationship with a just little effort each<br />
day<br />
3. Be willing to go beyond the call of<br />
duty<br />
Aim to over deliver. Try to do a little<br />
more than they expect and delight<br />
them by your commitment to their<br />
business. It is hard to put a value on<br />
that dedication, but many customers<br />
will appreciate your willingness to go<br />
the extra mile – and remember this<br />
when contracts need renewing.<br />
4. Honesty is the best policy<br />
There are going to be times when you<br />
don’t understand why something has<br />
gone wrong. Be up front about it. Your<br />
customers will respect the fact you<br />
can be open with them. But make sure<br />
you are already working the problem,<br />
and you have a solution. Honesty is<br />
important, but competence is even<br />
more so.<br />
5. Offer a loyalty scheme<br />
Loyalty schemes don’t need to be<br />
formal structures and processes; they<br />
can exist within your head. Make sure<br />
your customer knows you appreciate<br />
their loyalty; make them aware that<br />
they are close to some incentive or<br />
special that isn’t available to all your<br />
customers.<br />
2. Check-in with clients regularly<br />
People like to be reassured that all is<br />
well and that you are accessible. You<br />
don’t need to talk to every customer<br />
Axcess your partners for payments<br />
008
6. Take some time to get to know<br />
your best clients<br />
During the sales process you may have<br />
gone out of your way to cultivate a new<br />
client. Don’t waste the sweet talk you<br />
shared earlier. Think of each customer<br />
as your partner; what are their interests<br />
and how do they matter to them. Do<br />
they have a favourite team and does it<br />
really hurt when they lose? Using this<br />
knowledge can make a real difference<br />
to how they feel about you and your<br />
business.<br />
7. Think in terms of ‘lifetime value’<br />
Never think of a client in terms of their<br />
last job or payment. Think of them<br />
in terms of their value over a lifetime.<br />
What might their business be worth to<br />
you over an extended time? Appreciate<br />
them as an investment that can keep on<br />
giving. Look after your investments and<br />
they will look after you.your customer<br />
knows you appreciate their loyalty;<br />
make them aware that they are close<br />
to some incentive or special that isn’t<br />
available to all your customers.<br />
8. Make the link between your<br />
business and your customer<br />
Keep your clients in mind when your<br />
business reaches a milestone: an<br />
important date, a new employee, an<br />
award or new client. Make sure your<br />
existing customers know that it is only<br />
due to their support that your business<br />
is where it is and you could not have<br />
done it without them.<br />
9. When things go wrong be ready to<br />
put them right – quickly!<br />
Invariably, things go wrong. When this<br />
happens be quick to solve the problem<br />
and keep your client informed. This<br />
highlights that you are on top of any<br />
issue and they are special in being<br />
kept advised. Think about having some<br />
incentive available as a recompense<br />
– even if a fault was not your own<br />
– customers will be more willing to<br />
forgive and forget if you make even a<br />
small gesture towards them.<br />
10. Treat your customer as you would<br />
like to be treated yourself<br />
You would be cross if something you<br />
expected from a supplier was late or<br />
didn’t work. So, put yourself in their<br />
shoes when you deal within your<br />
organisation and make sure everyone<br />
appreciates how important it is to<br />
get the job done correctly. Managing<br />
customers isn’t just about sweet talk;<br />
make sure everyone understands how<br />
important your customer is to everyone<br />
in your organisation!<br />
About Axcess Merchant Services<br />
Axcess work with a wide range of banking partners that allow them to provide businesses like yours with exactly<br />
the right banking partner, tailored for your individual needs. Based in the UK, and working across a wide range<br />
of vertical markets, the Axcess team has an enviable reputation for providing reliable and effective payment<br />
solutions for discerning business owners.<br />
Nick Fox<br />
by<br />
Managing Director, Axcess Merchant<br />
Services<br />
Nick is the Managing Director of Axcess Merchant Services, and<br />
a highly regarded salesman and team motivator. He has made a<br />
specialism out of turning impersonal institutions into responsive<br />
business partners. Nick knows how important it is to treat each new<br />
contact as if they were the most important person in the world!<br />
009
E-commerce<br />
By Yves Lalieu<br />
November 30, 2015<br />
© pixabay<br />
e-commerce in Europe, new environment, new challenges<br />
We are at the verge of major changes in the European<br />
payment market, e-commerce has reached maturity and<br />
mobile commerce and payment is now possible. However<br />
there is still a long way to go to have a smooth payment<br />
experience. If the Uber In App payment can be seen as a<br />
model for convenience, it still limited as it does not accept<br />
the local debit cards.<br />
In the coming months two major regulations will shake up the<br />
European e-commerce environment<br />
• As of 9 December all transactions will have the same<br />
interchange regardless if it’s a proximity or e-commerce<br />
transactions.<br />
• The PSD2 will allow third parties to have access the bank<br />
account.<br />
The new interchange will drive issuers to review their<br />
e-commerce security as the e-commerce fraud rate may be a<br />
killer in regards of the 20 or 30 basis points interchange. On the<br />
PSD 2 side third parties will now be allowed to access the bank<br />
account. This is a great opportunity for new disruptive fintech<br />
companies, even if the customer “strong” authentication and<br />
the resulting liability are still vague and need to be clarified<br />
urgently.<br />
The European patchwork<br />
Unfortunately we all know that a borderless e-commerce is a<br />
dream and that the European reality is much more complex:<br />
different languages, different regulations and a payment<br />
environment still deeply influenced by the legacy of the<br />
domestic schemes.<br />
Credit cards and PayPal may commonly used the same way<br />
throughout Europe, however if you want to maximise your<br />
turnover you must offer debit payment, and that’s where you<br />
will discover the European payment patchwork.<br />
Convenience versus security, solving the big dilemma<br />
We have two main models around Europe for e-commerce<br />
the “High Convenience Model” using low security product like<br />
MasterCard or Visa, and the “Secure Model” using high security<br />
010
product like Maestro or various domestic brands.<br />
The Secure model is always using 3D Secure (or equivalent<br />
technology like Ideal) to stop fraud. Unfortunately at the<br />
expense of convenience and sometime transactions<br />
conversions.<br />
The problem is a Cornelian dilemma if you are offering<br />
convenience you will be hit by fraud and if you want to secure<br />
the transactions you will not maximise your sales.<br />
• Merchants experiencing very little fraud (because they<br />
are excellent in managing it or they are in a vertical not<br />
fraud prone) can continue without 3D Secure<br />
• Merchants having low fraud can use Dynamic 3D Secure<br />
• Merchants who cannot demonstrate their ability to<br />
manage fraud must use 3D Secure.<br />
Working this way would reduce fraud cost to an acceptable<br />
minimum for all payment stakeholders and deliver the<br />
required convenience for In App payment. And this is feasible<br />
for all products Visa, MasterCard, Maestro all domestic<br />
brands, SEPA Credit Transfer or “Ideal like” solution.<br />
Yves Lalieu<br />
Founder of Transfeo<br />
Yves Lalieu has worked 20 years at<br />
MasterCard. In charge of Maestro<br />
product management he has<br />
introduced Maestro on e-commerce.<br />
Working with merchants leaders<br />
in their industry he has developed<br />
innovative solution like Dynamic 3D<br />
Secure or PINless solutions in the<br />
proximity environment (Parking,<br />
Vending, etc…)<br />
As we can see solutions exist to bring e and m payment to<br />
the next level in Europe, and we can easily picture what will<br />
be the future of digital payment. The remaining question is<br />
who will build this future in the new payment environment<br />
banks or FinTech?<br />
About Transfeo<br />
Yves has created Transfeo Consulting to help all stakeholders to optimize their payments solutions. Transfeo<br />
philosophy is to focus on customer experience and merchants needs to deliver added value to the whole<br />
payment chain. Transfeo has a strong experience of the merchant needs built with leader in their industry.<br />
011
A day in the life<br />
of an in-house<br />
recruiter<br />
Margaret Buj is a Head of Recruitment at<br />
Yieldify and Interview Coach. She has 11 years<br />
of international recruitment experience and<br />
in the last 9 years she’s helped hundreds of<br />
professionals across the globe get jobs and<br />
promotions they really wanted.<br />
Margaret Buj<br />
Head of Recruitment at<br />
Yieldify & Interview Coach<br />
There are 2 things I will see every day –<br />
an inbox full of applications and emails<br />
from candidates and managers (there<br />
are days I receive about 250 emails).<br />
In any given day, I will meet with line<br />
managers to discuss specific roles or<br />
candidates, I will source and interview<br />
candidates, negotiate salaries and make<br />
offers. I’d also respond to up to 10<br />
recruitment agencies who contact us<br />
daily – these approaches never stop but<br />
we operate a direct sourcing model and<br />
only use a few select agencies for hard<br />
to fill engineering roles.<br />
I also find events to attend to expand<br />
my network or as a team, we’d<br />
brainstorm ideas for e.g. improving<br />
candidate experience or getting more<br />
quality candidates for specific roles.<br />
We get a lot of applications every day<br />
but some roles are quite niche and I<br />
only get good candidates by finding<br />
them and approaching on LinkedIn or<br />
by employee referrals. You’d think all<br />
candidates who read a job description<br />
would pay attention to the minimum<br />
qualifications before clicking the ‘Apply<br />
Now’ button. This is definitely not<br />
always the case and we receive lots of<br />
applications of candidates who have<br />
zero or hardly any relevant experience<br />
for a specific position.<br />
I do use LinkedIn to conduct searches<br />
- I not only find specific people with a<br />
certain skill set, but I ask other people in<br />
my network who they know. Of course<br />
employee referrals are a great source,<br />
too. As I speak to candidates, we can<br />
quickly ascertain whether what Yieldify<br />
has to offer to them will fit their needs.<br />
It is a two-way street. Yes, in these<br />
economic times candidates may be<br />
more flexible, but we want to hire smart,<br />
motivated, talented people from top 20<br />
universities, who want to work for us.<br />
I might have to talk to 10 or even more<br />
people to find one or two really good<br />
people who will work within our culture<br />
– it is a very fast paced environment and<br />
we’ve grown from 2 to 155 people in<br />
2.5 years, so change is the only constant<br />
here. Once I have completed a phone<br />
interview and we both feel comfortable<br />
we should move ahead, we arrange<br />
interviews with the hiring manager<br />
and a few others within the business.<br />
Typically, the candidate will meet the<br />
hiring manager and a couple of other<br />
managers or peers and on some<br />
occasions, there will be a presentation<br />
or a case study involved. In an ideal<br />
world, the candidate is a perfect fit and<br />
the hiring process runs as smooth as<br />
silk. Unfortunately, this is not an ideal<br />
world so many times, even after the final<br />
interview, you need to start the process<br />
from scratch – sometimes a candidate<br />
will drop out of the process for personal<br />
reasons or they will accept another<br />
offer.<br />
Why do I do it? For one, helping<br />
people progress in their career is a<br />
wholly satisfying experience. Secondly,<br />
helping Yieldify grow by finding the<br />
best and brightest brings a sense of<br />
personal satisfaction. Being able to<br />
directly impact a company’s success by<br />
ensuring the right people are in place is<br />
an opportunity few other careers offer.<br />
The challenge of reworking your strategy<br />
and game plan in an ever-changing<br />
environment means that I rarely have<br />
the same work day twice. When I talk to<br />
some of our new hires who love working<br />
for us and are doing a great job, I do feel<br />
a sense of satisfaction that I played a key<br />
role in getting of them to work for us.<br />
012<br />
Yieldify believes that marketers want to convert<br />
visitors, easily. We are specialists at creating<br />
more conversions in the lower funnel using<br />
our Exit-Intent Technology. Yieldify’s technology<br />
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adapt to visitor intent across all devices.
Spotlight<br />
Think you have what it takes to start a business in a<br />
super-hot market?<br />
<strong>PCM</strong> takes a close look at some of the most<br />
innovative and promising startup companies in the<br />
payment industry.<br />
Using Your
“WE BELIEVE<br />
IT’S A NOBLE<br />
GOAL TO<br />
HELP CHANGE<br />
HAPPEN”<br />
Jeremy Almond, co-founder & CEO, Paystand<br />
Many different financial<br />
services have made big<br />
gains over the last years.<br />
Oftentimes those are mainly<br />
focused on business-to-consumer<br />
transactions. However, there is also<br />
another immense market for payments<br />
in the business-to-business (B2B)<br />
world. To this day, B2B payments are<br />
known to be inefficient and expensive.<br />
Paying invoices or moving funds<br />
across borders can be very costly for<br />
businesses and is full of uncertainties.<br />
We speak with Jeremy Almond, cofounder<br />
and CEO of Paystand, a next<br />
generation payment & eCommerce<br />
checkout system enabling businesses<br />
to handle their payments in a more<br />
efficient manner and at lower costs.<br />
Where did your idea for Paystand<br />
originate?<br />
At a very high level Paystand uses<br />
modern Internet technology to<br />
transform B2B payments. Today in the<br />
U.S. about half of all payments are still<br />
done via paper cheque.<br />
In my particular background I have<br />
spent a long time working with business<br />
technology companies. And I’ve seen<br />
them try ‘crazy things’ to get away from<br />
paper cheques. They would sometimes<br />
build some complicated business<br />
processes on top of ACH or move over<br />
to credit cards, which can get really<br />
expensive. For example, when sending<br />
a big invoice of $50.000 you might be<br />
charged 3% just to get paid. On the<br />
consumer side there is a lot of great<br />
innovation going on with payments<br />
but there really isn’t something yet<br />
that looks like the modern Internet on<br />
the business side. Something that is<br />
basically nearly instant, very low cost,<br />
cross border and also completely<br />
open. All the principles you know<br />
the Internet to be. That’s where the<br />
idea for Paystand came from. We<br />
started building the software in 2013,<br />
therefore, we are still a pretty young<br />
company. But, we feel really blessed<br />
since we’ve been growing very fast and<br />
serving different companies from small<br />
businesses to very large enterprises.<br />
We just hope we can grow the business<br />
for us as well as our customers. Our<br />
goal is to make business payments<br />
adapt to the Internet and modernize<br />
the process.<br />
How would you define your<br />
company culture?<br />
For us as a tech company, our culture<br />
is very much focused on innovation,<br />
openness and fairness. All of those<br />
things are partly what the Internet<br />
stands for. Bringing these values both<br />
to our team and our customers is a very<br />
important task. We are very customer<br />
centric and for that reason we also made<br />
our business model very transparent.<br />
Since we think the industry needs<br />
transparency all of our team members<br />
live and breath that attitude as well.<br />
When thinking about innovation and<br />
openness, our team members are very<br />
passionate about what they do. We<br />
think that improving financial services,<br />
which are at the heart of our economic<br />
system, is a meaningful purpose. Our<br />
team members with years of experience<br />
coming from either tech companies or<br />
financial services backgrounds came to<br />
this start-up because we think we can<br />
actually improve the system.<br />
What differentiates Paystand from<br />
other payment gateways in the B2B<br />
payments arena?<br />
Basically our product is centered<br />
around a model we call payment-asa-service<br />
platform. This concept adds<br />
value for the business on top of seeing<br />
payments only as a utility. To be more<br />
specific, we mainly do three things<br />
that separate us from other payment<br />
gateways.<br />
014
First, we have a fairly flexible platform<br />
that enables a business with their own<br />
existing business process to layer us<br />
into their website, their invoice or their<br />
enterprise mobile application while<br />
still maintaining full control of their<br />
customer experience. When looking at<br />
companies such as PayPal or Square,<br />
these consumer facing companies<br />
seem to move their business into one<br />
specific flow. We can go behind the<br />
scenes because we don’t think it’s our<br />
customer but the business’ customer.<br />
Thus, we treat this relationship very<br />
honorably. Secondly, we have this<br />
very broad technology platform that<br />
uses different payment rails. When<br />
working with us, businesses have the<br />
option to use an electronic cash or<br />
an electronic cheque system that are<br />
both very unique and proprietary to<br />
Paystand. Additionally, we also allow<br />
choice. Customers who want to use a<br />
card for certain customers can do so.<br />
They can use Paystand to have a single<br />
point of reporting and a single point of<br />
settlement. In case businesses want<br />
to use a traditional card system for<br />
some other customers for convenience<br />
purposes they can do that as well.<br />
Furthermore, if businesses want to<br />
work with more innovative things<br />
around digital cheques, bank to bank<br />
transfers or electronic cash, Paystand<br />
offers that option for their customers<br />
too. Paystand provides the platform,<br />
which offers many different pipes and<br />
the business can choose which specific<br />
ones they want to use. In the end we<br />
provide them with all the tools which<br />
they can use to their advantage.<br />
The third and perhaps most interesting<br />
thing Paystand is known for is that<br />
its entire business model is different<br />
from common players in payment<br />
industry. We don’t make our profit<br />
from transaction fees. Instead we<br />
are a software company providing<br />
software licenses and businesses can<br />
use Paystand as much as they want.<br />
Basically we give you 0 per cent network<br />
fees that you can benefit from. If you use<br />
our eCheque or eCash network, there<br />
is no transaction percentage fees. This<br />
is much more efficient for businesses<br />
when they need to move large amounts<br />
of money. Even if businesses want to<br />
use the old system the costs are still<br />
going to be dramatically lower since we<br />
give people wholesale rates.<br />
What are the key hurdles to grow<br />
your business?<br />
We believe to our core that payments<br />
will go completely digital on the<br />
business side. It’s going to take<br />
quite some time though. We started<br />
Paystand as a long-term company,<br />
one that can make an impact by<br />
methodically serving our customers.<br />
Looking at hurdles, today we are<br />
currently only operating in the U.S.. We<br />
want to serve these customers well and<br />
make sure Paystand has delivered the<br />
best customer experience and solution<br />
possible. From a broader perspective<br />
to grow, Paystand obviously wants to<br />
operate on a global scale. For that we<br />
must work with the regulators in various<br />
different countries with different sets<br />
of rules related to moving money in a<br />
safe, compliant and secure manner. We<br />
take the customer’s trust very carefully<br />
and see that as a privilege and honor to<br />
serve them in the best way.<br />
What opportunities do you see in<br />
the payments industry?<br />
Looking at the opportunity in the<br />
industry, we’ve been very early<br />
proponents of blockchain. If you look<br />
a year or two ago that was very much<br />
the bleeding edge. Now we are starting<br />
to see other financial services whether<br />
they are banks, exchanges or remittance<br />
focused companies starting to realize<br />
that blockchain is transformative<br />
technology. If considered thoughtfully,<br />
we think the technology of blockchain<br />
ledger is world changing. It does solve<br />
real financial problems but it will take<br />
time to bleed out into the different part<br />
of the system. When it does though it<br />
will make the system more efficient.<br />
We are really excited about that. To<br />
name a few, for example settlement<br />
is very slow today on the traditional<br />
rails and in the U.S. ACH is very slow as<br />
well. Another example is cross border<br />
transactions today are very hard to<br />
execute and they are expensive. With<br />
the blockchain technology we think a<br />
number of financial services can be<br />
more efficient than a lot of the existing<br />
legacy infrastructures. So we want to<br />
apply the new technology in such ways<br />
to enable businesses to pay each other,<br />
so that their financial systems can settle<br />
to each other and ultimately make the<br />
system more open and more efficient.<br />
However, finding the appropriate<br />
A snapshot of the Paystand team located in the Silicon Valley office.<br />
015
alance between the secure and<br />
insecure elements will take some time<br />
for some financial companies. But we<br />
pay a lot of attention to building trust<br />
and security measures to drive this<br />
innovation.<br />
Are you currently working on any<br />
exciting projects within Paystand?<br />
Over the next twelve months, we will<br />
start selectively thinking about what<br />
other countries can we serve outside<br />
the U.S. Being able to provide and<br />
operate something that works well<br />
in other countries is important to us.<br />
There are vastly different payment<br />
systems in different countries so<br />
that’s why we are pretty excited about<br />
innovative technology like blockchain<br />
that can help to unify the systems.<br />
More recently we are working on<br />
releasing a new feature of our eCheque<br />
product, which is one of our most used<br />
facet of our product platform. This<br />
feature will enable direct bank transfers<br />
to more than 15.000 banks. Today we<br />
serve approximately 80% of all the<br />
banks in the U.S. and with this release<br />
we’ll have direct bank payments to<br />
15.000 banks, which is about 98% of all<br />
banks in the U.S. We are really excited<br />
about this in particular for our eCheque<br />
product because it means that our<br />
direct bank transfer has a lot of the<br />
benefits of card payments. To be more<br />
specific, it allows fast settlement, the<br />
ability to do fund verifications as well as<br />
the option to do identity verifications.<br />
In the U.S. none of those exist on the<br />
traditional ACH payment. Since the<br />
traditional ACH payment system is fairly<br />
antiquated technology. Our eCheque<br />
product can offer the same low cost<br />
structure of a cheque but at the same<br />
time have all the digital advantages of<br />
card payment. Being able to offer this<br />
with almost all the banks in the U.S. is<br />
very exciting for us.<br />
“Get paid faster with the world’s first B2B payment<br />
network designed for today’s Internet”<br />
016
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Events<br />
Date: Dec. 8-9, 2015 | London<br />
This event is where the next<br />
generation of early stage start ups<br />
stand shoulder to shoulder with<br />
established FinTech blue chips<br />
and the emerging band of scale<br />
ups who have been disrupting the<br />
traditional finance scene in recent<br />
years. Featuring over 100 exhibitors<br />
and 2000 visitors, FCL also plays<br />
host to a keynote auditorium with<br />
inspirational case studies.<br />
Date: Jan. 27-28, 2016 | Paris<br />
This event provides the Retail<br />
Banking professionals actionable<br />
knowledge to succeed in the digital<br />
era. Combining workshops and<br />
interactive insights sessions, the<br />
conference focuses on impactful<br />
tech shifts such as m-banking,<br />
branches digitisation, PSD2,<br />
FinTechs, Blockchain...a blend<br />
of case studies and technology<br />
updates.<br />
018<br />
Date: Jan 25-26, 2016 | Copenhagen<br />
This event will examine why the<br />
importance of a good strategy<br />
has never been more significant,<br />
especially with the large increase<br />
in new market players competing<br />
with the traditional banks. The<br />
conference will also discuss the<br />
future of real-time payments<br />
and possible risks banks need to<br />
consider.<br />
Date: Jan 6-7, 2016 | Las Vegas<br />
This is an annual research<br />
and industry event hosted by<br />
international research firm Parks<br />
Associates at CES in as Vegas.<br />
This executive event features two<br />
days of panel discussions on the<br />
smart home, Internet of Things<br />
and connected entertainment,<br />
with trends and implications<br />
for connected consumers and<br />
opportunities for companies to<br />
build new revenues and innovative<br />
business models.
You think you are a good match or know<br />
someone who is?
WE ARE HIRING<br />
Cape Town OFFICE<br />
Country Manager<br />
South Africa<br />
Where: Cape Town<br />
Experience: 3 years +<br />
Type: Full Time<br />
charles@paymentsandcardsnetwork.com<br />
You think you are a good match or know<br />
someone who is?
2016<br />
The Payments & Cards Network family<br />
would like to thank you for your support<br />
& trust in our services.<br />
We wish you cheerful & festive times!
Payments and<br />
Cards Network<br />
Driving Innovation through knowledge<br />
You<br />
have any suggestions or ideas for the<br />
next issue of our <strong>PCM</strong> eMagazine?<br />
Get in touch today and maybe you will<br />
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