direct debits in europe the merchants perspective drf europe april 25-26, 2006 - basel ronald...
TRANSCRIPT
Direct Debits in Europe The merchants perspective
DRF EuropeApril 25-26, 2006 - Basel
Ronald WallrothGlobalCollect
Sven krahnLycos
Agenda
• Non face-to-face payments facts and figures
• Merchants challenges and expectations
• Direct Debit key benefits
• Lycos Europe business case
• Questions and discussion
GlobalCollect, International Payment Services
• Over 12 years of successful track record of payment collection and reconciliation worldwide
• One single technical and administrative interface enabling online merchants to accept:
» Credit and debit cards» Real-time and offline bank transfers» Direct debits» Invoices and e-invoices» Cheques
• GlobalCollect is privately owned and independent from its banking partners
• 60 million transactions in 2005 and over 40% growth expected in 2006
Companies with successful strategies
Payment behaviors per country
Source: Bank for International Settlements - March 2005
Shares of non-cash payments
0%
20%
40%
60%
80%
100%
Card based e-money
Direct Debits
Bank Transfers
Credit/Debit cards
Cheques
Only 64% of European online shoppers own a credit card
Source: Forrester 2004
Online payment collection challenges
SPEED
CURRENCIES
SECURITY
INSTRUCTIONS &LANGUAGESPAYMENT
METHODS
DATAPROTECTION
Global E-payment landscape
• Important regional cultural differences in payment behaviors • Difficult break through of new payment methods• Slow harmonization of payment processes through bank collaboration and international legislation• Currency convertibility issues• International transfer of funds barriers
The choice of payment methods is large
• Local bank transfers: 192 countries
• Real-time banking: 10 countries
• Credit & debit cards: 158 currencies
• Direct Debits: 20 countries
• Checks: 50 currencies
Direct Debits
GeneralGeneral
Pull mechanismFast processing (same day)Mandate direct debits used for recurring
paymentsNon-pre-authorized direct debits used
for online payments.
GlobalCollect specificGlobalCollect specific
Direct Debit supported for 9 countriesReporting of 99,9% of bank reversal in 3
business days. Detailed reporting of reversal by banks
and reversal by customers
Country specificNon-pre-authorized direct debits:Germany Spain The NetherlandsAustria
Country specificNon-pre-authorized direct debits:Germany Spain The NetherlandsAustria
Payment methods comparative analysis
Credit
Card
Direct
Debit
Bank
Transfer
Real Time
BankingCheque
Initiated Customer Customer
Speed
Costs
Charge back risk
Fraud Risk
Thank you for your attention !
Sven KrahnEuropean Director Billing & Customer ServicesLycos Europe GmbHTel.: +49 5241 807 1361Fax: +49 5241 80 67 1361Email: [email protected]
Ronald WallrothBusiness Development ManagerGlobalCollectTel.: +31 6 538 616 20Fax: +31 23 554 86 66Email: [email protected]