A purpose built reloadable debit card : Building Card

Presented by Charl Kleynhans

Acknowledgements

A purpose built reloadable debit card : Building Card

Presented by Charl Kleynhans

IntroductionAltech NuPay - Payments made Easy

About us…

Our products include…

Where did it start……

What is NuCard…

The principles are…

Evolution of NuCard to Building Card…

Current process……

Current challenges…

What it is…

How does it work…

Cobranding…

Advantages…

• Part of the Bytes Technology Group and Altron TMT.

• More than 15 years experience in the field of payments and collections.

• Payment Service Provider and the leader in managed electronic collection

and payment solutions.

• National Footprint with branches in:

• Durban, Cape Town, East London, Port Elizabeth, Bloemfontein (to name a few).

• Develop and maintain our own products.

• 5th largest terminal footprint after the 4 big banks.

About us…Leading the way in payments

• Altech NuPay’s offers a range of products including:

Authenticated terminal based, card present debit order products

AEDO (Authenticated Early Debit Order)

POS (Point of Sale – Debit and Credit card)

Non-authenticated card not present debit order products

NAEDO (Non Authenticated Early Debit Order)

EFT (Debit order to Credit Card, Two day and Same day Service)

E-commerce Payment portal

Web-based products

NuCard

myClaim

Our products include…Service excellence

SO WHY A PURPOSE BUILT RELOADABLE DEBIT CARD?

WHERE DID IT START?

Building CardTaking payments to the next level

• Altech NuPay has a Strong payment and collection presence in the micro

finance industry.

• Our customers required a solution to create a cashless environment.

• Some of their challenges:

Risk of cash handling to and from the bank.

Risk of holding cash on the premises.

Cash handling fees.

Fraud.

• NuCard was developed.

Where did it start…Convenience of Cash with the Security of a card

• NuCard is a cash disbursement tool.

• Provides the customer with a facility to virtually move funds to cards real-time.

• Prefunded model.

• SBSA & MasterCard sponsored reloadable debit card.

• Card is valid for 3 years.

• ATM & POS.

• South Africa only.

• Success of NuCard:

More than 500K cards sold into micro finance industry.

In excess of R5B processed since inception in 2010.

What is NuCard…Convenience of Cash with the Security of a card

SO WHY THE NEED FOR A BUILDING CARD?

• “Low incomes, informal employment and relatively remote rural regions

disqualify end users from dealing with major commercial banks.”

Extracted from http://www.rhlf.co.za/our_objectives.php

• These consumers will approach the lenders registered with the RHLF.

• On an annual basis these lenders receives funds from the RHLF.

• “These funds must be applied for the improvement of the basic living

standards of low income rural people through the provision of these funds.”

Extracted from http://www.rhlf.co.za/our_objectives.php

• The approved lenders must follow a set of rules & requirements as

determined by the RHLF.

• Make sure the funds are used for it’s intended purpose.

• To report back regularly on the use of these funds.

The principles are... Social upliftment

• Current relationships with customers operating in the micro finance industry.

• Our customers required a solution to solve some of the challenges in

disbursing home improvement loans.

Evolution of NuCard to Building Card…Building your home with the convenience of a card

Current process…Building your home with the convenience of a card

3. Loan Approval and Pay-out

5.Collection of goods

2. Loan application

1.Quotation

4.Proof of payment

• Industry players required a solution to:

Reduce the admin burden of managing the cash out of funds to the various building

retailers.

Cumbersome financial reconciliation between lender and retailer.

Control the spend in order for the money to be used for its intended purposes.

No adequate reporting.

Reduce Fraud.

• Thus Building Card was created.

Current Challenges…Innovative solutions to solve problems

• SBSA & MasterCard sponsored reloadable debit card.

• Integrated solution.

• Card works on the building retailers existing terminal infrastructure.

• POS only (No ATM Access).

• Each card has a unique PIN.

• Open to all the major building retailers in South Africa.

• Card is valid for 3 years.

What it is…Building your home with the convenience of a card

• Lender approves the consumer using standard lending practices.

KYC, Loan Requirements, Affordability.

• Sends the necessary system request to:

Allocate the card to the consumer.

Load the card with the approved loan value.

• Gives the card to the consumer.

• The consumer will then buy the goods from the building retailer.

How does it work…Building your home with the convenience of a card

How does it work…Building your home with the convenience of a card

1.Quotation

2. Loan application

3. Loan Approval and Pay-out

4.Payment and Collection of goods

• There are options available to Co Brand the card.

• Unique way to build a brand and build a relationship with a consumer.

• “RHLF and its clients see themselves as builders, not just lenders. Building

homes, building relationships, building better lives.”

• Extracted from http://www.rhlf.co.za/our_objectives.php

Co Branding…Building a brand while building a nation

• Example Brands:

Co Branding…Building a brand while building a nation

• The consumer can spend according to his/her requirements.

• No POS swipe fee for the consumer.

• The money is safe and protected with a secure PIN.

• When the card is compromised it can be stopped.

Standard banking practice with a reissue and transfer of funds.

• Consumer has full visibility of where the funds on the card were spent.

Reporting.

• The card creates a brand the consumer can associate with and trust.

Advantages…Consumer Building your home with the Security of a card

• Secure and trusted system backed by SBSA and MasterCard

• Card can only be used at building retailers that are part of the network.

Knowing the money is spent on its intended purpose.

• No Cash can be accessed using the card.

• Lender has full visibility of where the funds on the card were spent.

Reporting.

• Monthly reports can be extracted and provided to the RHLF.

• Reduces the admin burden between the lender and the retailer.

• The card creates a brand the consumer can associate with and trust.

Advantages…Lender Building your home with the Security of a card

• Altech NuPay collaborates with various business partners to provide systems

that not only solve challenges but also contribute to social upliftment.

• Altech NuPay prides itself as being the best at what we do.

• Altech NuPay is a PARTNER FOR SUCCESS.

In ConclusionInnovator of the future