Department NamePresentation Date
MasterCard Money Transfer SolutionsCard Based Solutions to Enable Global Funds Transfer
Main MenuMain Menu
MasterCard Payment Transaction SolutionsMasterCard Payment Transaction Solutions
MasterCard P2P Prepaid CardsMasterCard P2P Prepaid Cards
Next StepsNext Steps
The MasterCard Family AccountThe MasterCard Family Account
MasterCard P2P Money Transfer Solutions
P2P: What are the Opportunities?…and Challenges?P2P: What are the Opportunities?…and Challenges?
Supporting Bank Business ModelsSupporting Bank Business Models
MasterCard P2P Money Transfer Solutions
Main MenuMain Menu
MasterCard Payment Transaction SolutionsMasterCard Payment Transaction Solutions
MasterCard P2P Prepaid CardsMasterCard P2P Prepaid Cards
Next StepsNext Steps
The MasterCard Family AccountThe MasterCard Family Account
P2P: What are the Opportunities?…and Challenges?P2P: What are the Opportunities?…and Challenges?
Supporting Bank Business ModelsSupporting Bank Business Models
MasterCard P2P Money Transfer Solutions
Main MenuMain Menu
MasterCard Payment Transaction SolutionsMasterCard Payment Transaction Solutions
MasterCard P2P Prepaid CardsMasterCard P2P Prepaid Cards
Next StepsNext Steps
The MasterCard Family AccountThe MasterCard Family Account
P2P: What are the Opportunities?…and Challenges?P2P: What are the Opportunities?…and Challenges?
Supporting Bank Business ModelsSupporting Bank Business Models
MasterCard P2P Money Transfer Solutions
Main MenuMain Menu
MasterCard Payment Transaction SolutionsMasterCard Payment Transaction Solutions
MasterCard P2P Prepaid CardsMasterCard P2P Prepaid Cards
Next StepsNext Steps
The MasterCard Family AccountThe MasterCard Family Account
P2P: What are the Opportunities?…and Challenges?P2P: What are the Opportunities?…and Challenges?
Supporting Bank Business ModelsSupporting Bank Business Models
MasterCard P2P Money Transfer Solutions
Main MenuMain Menu
MasterCard Payment Transaction SolutionsMasterCard Payment Transaction Solutions
MasterCard P2P Prepaid CardsMasterCard P2P Prepaid Cards
Next StepsNext Steps
The MasterCard Family AccountThe MasterCard Family Account
P2P: What are the Opportunities?…and Challenges?P2P: What are the Opportunities?…and Challenges?
Supporting Bank Business ModelsSupporting Bank Business Models
Main MenuMain Menu
MasterCard Payment Transaction SolutionsMasterCard Payment Transaction Solutions
MasterCard P2P Prepaid CardsMasterCard P2P Prepaid Cards
Next StepsNext Steps
The MasterCard Family AccountThe MasterCard Family Account
MasterCard P2P Money Transfer Solutions
P2P: What are the Opportunities?…and Challenges?P2P: What are the Opportunities?…and Challenges?
Supporting Bank Business ModelsSupporting Bank Business Models
MasterCard P2P Money Transfer Solutions
Main MenuMain Menu
MasterCard Payment Transaction SolutionsMasterCard Payment Transaction Solutions
MasterCard P2P Prepaid CardsMasterCard P2P Prepaid Cards
Next StepsNext Steps
The MasterCard Family AccountThe MasterCard Family Account
P2P: What are the Opportunities?…and Challenges?P2P: What are the Opportunities?…and Challenges?
Supporting Bank Business ModelsSupporting Bank Business Models
P2P: What are the Opportunities?…and Challenges?P2P: What are the Opportunities?…and Challenges?
MasterCard P2P Money Transfer Solutions
P2P: A Significant OpportunityP2P: A Significant Opportunity
Key Corridors and CountriesKey Corridors and Countries
Who Sends the Funds?Who Sends the Funds?
What are the Challenges?What are the Challenges?
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P2P: What are theOpportunities and Challenges?
P2P: A Significant P2P: A Significant OpportunityOpportunity
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Government
Business
Consumer
Business Government
Market Penetration Key
Fro
m
To
Penetrating Cash and Checks
• Until now MasterCard and its members have focused on the conversion of consumer payments to business and government
• Payments to consumers are virtually untapped
C2BFull Year 2002 MasterCard
GDVCredit C2B $873 Billion
B2B $73 BillionG2B $5 Billion
Debit C2B $194 Billion
B2B
G2B
C2G
B2G
G2G
Consumer
C2C
B2C
G2C
HEAVYMEDIUMMEDIUMLIGHTMINIMAL
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Government
Business
Consumer
Business Government
Fro
m
To
Payments to ConsumersChecks and cash still dominate
consumer to consumer payments
C2B
B2B
G2B
C2G
B2G
G2G
Consumer
• Tax disbursements• EBT• Pensions
• Employee payments and payroll
• Insurance payments• Investment payments• Benefits payments• Interest and dividends• Promotions• Expenses
• Gifts• Loans• Auctions/Flea
Markets/Classified• Household services• Money transfer
Checks, Cash, and On-Line Payments
Checks and Direct Deposit
Checks, Direct Deposit, and EBT Cards
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Personal Rent Income (G&S) 20.0 25.5Housing Purchases (Goods & Services) $ 290.0 $370.0 Personal Used Car Sales (G & S) 38.5 49.5Flea Markets & Classified (G&S) 14.0 19.0Personal Care Services (G&S) 22.7 28.8Auction Market (Online Only) (G&S) 1.0 6.5Personal Inheritance (Cash & equivalent) 100.0 130.0Intl. Money Transfer - from the U.S. (C) 30.0 40.0Domestic Money Transfer- within U.S. (C) 14.0 23.5Allowances (5–18 yr.) (C) 70.0 75.0Personal Gifts (C) 30.0 38.5Other (Both) 63.0 80.6
Total $693.2 B $886.9 B
New Challenges1. Payees usually do
not qualify as merchants
2. Overcoming the appeal of untraceable funds
3. Difficult to identify and acquire participants
C2C Payments are Forecast to Exceed 800 billion in the U.S. – However, There are Challenges For Traditional Credit
Cards
C2C Market: High Potential, Significant
Challenges
Category 1998 2003
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Characteristics1. Established
industry & economics
2. Audit trail regulation increasing (AML)
3. Existing identifiable participant base
Person-to-Person (P2P) Money Transfer is a Logical
First Step
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Personal Rent Income (G&S) 20.0 25.5Housing Purchases (Goods & Services) $ 290.0 $370.0 Personal Used Car Sales (G & S) 38.5 49.5Flea Markets & Classified (G&S) 14.0 19.0Personal Care Services (G&S) 22.7 28.8Auction Market (Online Only) (G&S) 1.0 6.5Personal Inheritance (Cash & equivalent) 100.0 130.0Intl. Money Transfer - from the U.S. (C) 30.0 40.0Domestic Money Transfer- within U.S. (C) 14.0 23.5Allowances (5–18 yr.) (C) 70.0 75.0Personal Gifts (C) 30.0 38.5Other (Both) 63.0 80.6
Total $693.2 B $886.9 B
Category 1998 2003
Source: Datamonitor and the Inter-American Development Bank
Significant Opportunity
• Total P2P Money Transfer is forecast to reach at 200 Billion USD Globally by 2003
• Estimated 800 million transactions annually between 200 million consumers
• Growing at a compound annual rate of 10%
• Both formal channels, (e.g., banks, Western Union) and informal channels, (e.g., mail, personal courier)
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Remittance Growth is Being Driven by Increased Global
Migration
11.1
9.3 8.98.3
5.64.8 4.8
4.1 3.9
2.2
0
2
4
6
8
10
12
Foreign-Born People as a % of Total Population
9.614.1
19.8
31.1
0
10
20
30
40
1970 1980 1990 2000
Foreign-Born Population in the U.S.
26%
6%
16% 52%
AsiaLatin AmericaEuropeOther
Origin of Foreign-BornPopulation in the U.S.
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Formal• Western Union• Money Gram• Bank Wire
Informal• Mail Funds (Cash/MO)• Carry Funds• Hawallas, Mulas, &
AiajerosInformal Money Transfer Channels are Under Pressure• Informal flows have declined from 50% in the 90’s to almost 40%
by 2002• New alternatives• New AML reporting regulations• Governments want to gain control
Remittances Channelsare Formal or Informal
Informal40%
Formal60%
200 Billion 200 Billion USDUSD
Global Money Transfer
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P2P: What are theOpportunities and Challenges?
Key Corridors and Countries
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Source: Datamonitor – 2001, World Bank Reports, Internal Calculations
10 Key Corridors Projected to Grow at 10% Annually
Top 10 P2P FundsTransfer Corridors
2000 Volume (Estimated) USD
2005 Volume (Projected) USD
Projected CAGR
U.S. to Mexico 5.0 – 10.0 B 9.0 – 19.0 B 10.0%U.S. to Central America 3.5 – 6.0 B 6.3 – 10.8 B 10.0%Saudi Arabia to Egypt 3.5 – 5.0 B 6.3 – 9.0 B 5.0%Saudi Arabia to India 3.0 – 4.5 B 5.4 – 8.1 B 5.0%UAE to India 2.0 – 3.0 B 3.6 – 5.4 B 5.0%
North America to China 2.0 – 3.0 B 3.6 – 5.4 B 10.0%U.S. to Philippines 1.0 – 2.0 B 1.8 – 3.6 B 10.0%North America to India 1.0 – 2.0 B 1.8 – 3.6 B 10.0%Germany to Turkey 1.0 – 2.0 B 1.8 – 3.6 B 12.5%Germany to Italy 1.0 – 2.0 B 1.8 – 3.6 B 12.5%
Total 23.0 – 39.5 B 41.4 – 71.1 B 10.0%
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United States $30 B
India $13 B
Philippines $10 B
China $9 B
Mexico $9 B
UK $5 B
United StatesWhile the U.S. is the largest outbound sender of funds, the intra-U.S. business is also significant
6 Key Countries Account For Approximately 35% of Total Opportunity
Focus on a Few Key Countries Can Achieve Scale Quickly
United KingdomThe UK does not rank as a top corridor, however, the total outbound and inbound remittance volume makes it one of the most attractive
outbound
inbound
inbound
inbound
inbound
inbound
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P2P: What are theOpportunities and Challenges?
Who Sends the Funds?
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Profile of theRemittance Consumer
• Participants in cross-border remittances vary by remittance corridor
• Overall, senders are characterized as:– Male– Younger– Employed– Having minimal bank relationships– Using technology less
• Sending money cross border 8 to 12 times per year• An average of 2,800 USD per remitter is sent annually
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P2P: What are theOpportunities and Challenges?
What are the Challenges?
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Branch economics are unfavorable for providing “one off” services for non-customers
• Traditional wire transfers are highly manual and time consuming
No cost-effective systems to support small dollar transfers ($280)
• SWIFT and ACH networks were designed primarily for large funds movement
A significant percentage of P2P participants have been a low priority
• Banks historically have not developed strategies to attract immigrant consumers into branches
• Recipients are largely underserved
• Certain immigrant populations retain a distrust of traditional banks and use them infrequently
Until Now, Banks Have Not Focused on Cross-border Remittances
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Core competencies and assets include:
Banks are Well Positioned to Offer Cross-border Services
•Transaction risk management•AML compliance methodologies•Technology platforms and networks•Card program capabilities•Retail merchant relationships
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MasterCard Payment Transaction SolutionsMasterCard Payment Transaction Solutions
MasterCard P2P Money Transfer Solutions
Leveraging Card-Based TechnologyLeveraging Card-Based Technology
MasterCard Payment TransactionsMasterCard Payment Transactions
Money Transfer Service: Online and Agent-BasedMoney Transfer Service: Online and Agent-Based
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MasterCard PaymentTransaction Solutions
Leveraging Card-Based Technology
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Banks Can Leverage Card-based Technology to Capitalize on P2P Money Transfer
• 67% of recipients indicate their desire to receive funds on a money transfer card instead of going to an agent to get cash
• 58% of recipients indicate interest in adding their own funds to a card
• Penetrating the global money transfer opportunity requires the global processing and connectivity of today’s modern electronic payments industry
• Card-based capabilities and economics offer improved security, convenience, and value
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Different Customer Segments Require Different Business
Models...
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Bank P2P Funds Transfer Programs Fall into Three Business Models
Intra-bank Systems – Facilitates transfers among a bank’s customers. Uses bank branches or bank agents
• Uses proprietary platforms such as c2it and Chase ReadECash
• Bank provides origination capabilities to send funds or load prepaid cards over a platform limited to bank customers(Example: HSBC and Yahoo PayDirect)
Bi-lateral Arrangements – Two banks agree to provide funds transfer services among their respective customers
• Closed system to only participating banks (Examples: Citi/Banamex, BofA/ Santander, HSBC/Bital, Wells/Bancomer)
Open Alliances – Banks participate in a centralized funds transfer program
• Association offers platforms and networks that can serve any member’s customers (Examples: MasterCard MoneySend, VISA PayDirect)
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How Do We Tap Into the Billions in Cash That are Sent Globally Between Family
and Friends?
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MasterCard products and platforms can be configured to meet a wide variety of business strategies
MasterCard Flexible Solutions
Products• MasterCard Payment
Transaction• Maestro Payment
Transaction• Prepaid Cards• Family Account
Platforms• RPPS• Prepaid Service• MoneySend (Pilot)
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MasterCard PaymentTransaction Solutions
MasterCard Payment Transactions
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MasterCard has created the payment transaction to support a variety of off-line and online P2P Money Transfer Models
MasterCard Payment Transactions
•What is the “payment transactions”•How does it work?•What P2P Money Transfer Models does
it support?•What does a member have to do to use
the new payment transaction?
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What is the Payment Transaction?
• The payment transaction is “a credit to an account without an off-setting debit”
• The payment transaction brings positive interchange for the issuing member posting the credit
• Payment transactions have been created for both MasterCard and Maestro branded products
• The current interchange on both the MasterCard and Maestro account is $.53 USD plus 19BP
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How Does it Work?
• MasterCard/Maestro payment transactions are used in end-to-end P2P Money Transfer solutions that rely on a Payment Service Provider to accept value, create the payment transaction, and enter it into the MasterCard system
• The payment service provider acts as a merchant and pays the reverse interchange
• The payment service provider interacts with the sender and receiver and charges a service fee
• Originating value can be from cash, bank accounts,or credit cards
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What P2P Money Transfer Solutions Do They Support?
• Internet P2P Money Transfer services accessed by PCs, kiosks, or other internet devices
• Agent based services that can accept cash• Bank to bank services that move money onto
credit or debit accounts
The MasterCard/Maestro payment transactions were designed to enable P2P Money Transfer services that provide both online and offline service, domestically or globally. Models include, but are not limited to:
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What Does a Bank Have to Do to Use the New Payment Transactions?
• Recipient Banks: complete the maintenance required to become certified to accept the payment transactions and complete the AML* compliance review
• Sending Banks: develop in-house capability or partner an outside payment service provider platform to generate the payment transaction, (e.g., Yahoo, CertiPay). Complete an AML compliance review
• *AML = Anti-money laundering – See U.S. Patriot Act and FATFA
Member banks can use the new MasterCard/Maestro payments transactions in two ways:
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Enabling the MasterCard/Maestro payment transaction provides instant access to P2P Money Transfer
Benefits of the Payment Transaction
• Banks can accept transactions from any participating funds transfer service
• Banks can receive P2P Money Transfer transactions from any domestic or global originating point
• Banks require no special development after becoming certified to create or accept the payment transaction
• Banks can rely on the MasterCard global systems for P2P Money Transfer settlement and connectivity
• Banks can use the payment transaction in a wide range of service designs
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Using the MasterCard/Maestro Payment Transactions will provide a P2P Money Transfer Service that is:
Consumer Benefits
• Usually less expensive than agent-to-agent funds transfer services
• Easier and safer than receiving and keeping cash
• Easily accessed a hundreds of thousands of ATMs
• Used immediately in millions of merchants worldwide
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The Role of the Payment Service Provider
Money Transfer Services:Online and Agent-Based
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A payment service provider stands between the sender and the receiver
What is a Payment Service Provider?
Business Model – Qualified merchant or Acquirer
Target Consumer Segment – Fully banked or underserved
Channels – Online or Face-to-Face
Economics – Transaction-based fees, interchange, and FX
Key Challenges – Ensure banks in the receiving markets are prepared to accept the payment transaction
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Banks leverage online payment service providers to support money transfer
Payment Service Provider in an Online P2P Service
MasterCard Solution – MasterCard/Maestro Payment Transaction
Target Consumer Segment – Fully banked and technology aware
Channels – Online or kiosk
Economics – Transaction-based fees, interchange, and FX
Key Challenges – Ensure banks in the receiving markets are prepared to accept the payment transaction
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Online P2PMoney Transfer Service• A member or co-brand partner offers the ability to send money to
family and friends over their online website
• Sender and recipient register to be a part of the service
• The sender selects the account that will be used to fund the transfer and identifies the sender and a pass code
• The sender reviews and accepts the fees and foreign exchange rates if applicable
• The recipient receives an email message with a link to the P2P Money Transfer Service
• The recipient enters their name, the pass code, and the MasterCard account to which the money will be transferred
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MasterCard/Maestro Payment Transaction enables funds to be place on any credit or debit card from
bank or card account via an online payment service provider.
Online P2P Money Transfer Service
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Credit Card Issuers
Debit Card Issuers
Kiosk
Website
MasterCard SystemsPayment
Transactions
Acquirer
PSP Provide
r
Email link to Payment Service
provider
Online P2PMoney Transfer ServiceHow a Member Makes Money
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Service Provider• Service fees• Foreign exchange
Acquirer Bank• Discount Rate
Receiving Bank• Account fees• Interchange (Payment Transaction and Usage)
Online P2PMoney Transfer ServiceHow the Member Will Sell It
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Online Promotion• Pop-up ads• Portal ads• Email ads
Banks leverage retail agents and a payment service provider to support money transfer
Payment Service Provider in an Agent-Based P2P Service
MasterCard Solution – MasterCard/Maestro Payment Transaction
Target Consumer Segment – Underserved
Channels – Retail agent
Economics – Transaction-based fees, interchange, and FX
Key Challenges – Establishing a retail relationship that appeals to the under served market—developing internalor outsourcing payment service provider capability
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Agent-based P2PMoney Transfer Service• A member or co-brand partner offers the ability to send money to
family and friends through a network of retail agents• Sender and recipient register to be a part of the service – recipient
is given an registration number and provides it to the sender• The sender goes to the retail store with cash, the name of the
recipient’s name and ID number• The retail agent submits the transaction to the payment service
provider who translates the ID number to the recipient’s registered PAN
• The transaction is sent to the MasterCard system through the acquirer
• The payment transaction is accepted by the recipient’s card issuer
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MasterCard/Maestro Payment Transaction enables funds to be place on any credit or debit card from
bank or card account via an online payment service provider
Agent-based P2P Money Transfer Service
Credit Card Issuers
Debit Card Issuers
Bank Branch
PSP Provid
er Agent
MasterCard SystemsPayment
Transactions
Acquirer
PSP Provide
r
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Agent-based P2PMoney Transfer Service
Agent• Commission• Foreign Exchange
Acquirer Bank• Discount Rate
Recipient Bank• Account fees• Interchange (Payment Transaction and
Usage)
How a Member Makes Money
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Agent-based P2PMoney Transfer ServiceHow the Member Will Sell It
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• Targeted Local Market Promotion• Local print• Community Promotion
(Ethnic associations, church groups)• Selected branch advertising
MasterCard P2P Prepaid CardsMasterCard P2P Prepaid Cards
MasterCard P2P Money Transfer Solutions
Introduction: The MasterCard Prepaid Card OpportunityIntroduction: The MasterCard Prepaid Card Opportunity
The Sender Centric ModelThe Sender Centric Model
The Recipient Centric ModelThe Recipient Centric Model
MasterCard Prepaid ServicesMasterCard Prepaid Services
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MasterCard P2P Prepaid Cards
Introduction: The MasterCard Prepaid Card Opportunity
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Prepaid cards can play a role in a number of P2P Solutions
MasterCard P2P Prepaid Cards
•Effective for targeting underserved/unbanked segments
•A solution MasterCard members can support now using existing infrastructure
•Low cost of entry •Sender-centric and/or receiver-centric
programs
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Consumer Benefits of Using Prepaid Cards for P2P
• Research indicates recurring money transfer consumers find prepaid cards an attractive proposition
• Provides greater security and privacy than traditional transfers
• Offers greater convenience for both sender and recipient
• Can be less expensive for the consumer than current funds transfer options
• Improves the personal self-worth of the underserved remittance customer
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Opportunities for Members at Either End of Funds Flow
Sending modelIssuer offers a prepaid card account to sender with an additional access card for the recipient
Receiving modelIssuer offers recipient a card account to which funds are transferred by a participating sender
Supports Issuers in “Sending” and “Receiving" Countries
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MasterCard P2P Prepaid Cards
The Sender Centric Model
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P2P Prepaid CardSender Centric Model• A single prepaid account with two cards at a bank
in the sending country• Sender and recipient name, address, and ID
captured for AML compliance• Secondary card is delivered to recipient• Recipient uses cards at ATMs or POS• Sender can reload at designated locations using
the primary card and photo ID for authentication• Sender has equal access to funds
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MasterCard Prepaid Cards using any of the MasterCard family of brands and two or more
authorized users.
Sender Centric Model
ATMAcquirer
PrepaiPrepaidd
PlatforPlatformm
MasterCardPrepaid Platform
Issuer ATMMasterCarMasterCar
ddSystemsSystems
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P2P Prepaid Card Programs
Fees and float•Annual fees•Loading fees• Interchange (when used at POS or with the
“payment” transaction)•Servicing fees•FX on sender centric model•Float
How a Member Makes Money
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P2P Prepaid Card Programs
Targeted Local Market Promotion•Local print•Community Promotion
(Ethnic associations, church groups)•Selected branch advertising
How the Member Will Sell It
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MasterCard P2P Prepaid Cards
The Recipient Centric Model
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P2P Prepaid CardRecipient Centric Model
• A single prepaid account at a bank in the receiving country
• Recipient is the primary account holder – name, address, and ID captured for AML compliance
• Recipient uses cards at ATMs or POS• Sender can send funds at designated branches
or retail locations that are certified to send a payment transaction
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MasterCard Prepaid Cards using any of the MasterCard family of brands
Recipient Centric Model
Issuer
PSPPSPBank
Branch/
AgentMasterCarMasterCar
ddSystemsSystems
ATMs
AccountHolder
Sender
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P2P Recipient CentricPrepaid Card Programs
Fees and float•Annual fees•Loading fees• Interchange (when used at POS or with
the “payment” transaction)•Servicing fees•Float
How a Member Makes Money
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P2P Recipient CentricPrepaid Card Programs
Targeted Local Market Promotion•Local print•Community Promotion
(Ethnic associations, church groups)•Selected branch advertising
How the Member Will Sell It
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MasterCard P2P Prepaid Cards
MasterCard Prepaid Services
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MasterCard Prepaid Services
•MasterCard Prepaid Cards can be used with any proprietary or third party prepaid platform
•Members are free to use a prepaid platform of their choiceHowever, MasterCard Prepaid Services has features that makes it ideal for global funds transfer
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What is MasterCard Prepaid Services?
MasterCard Prepaid Services
•Prepaid is one of the processing services MasterCard delivers today using its core processing infrastructure
– Credit (Banknet)– Debit (Banknet/MDS)– Prepaid (PDC)– Gateway Services
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MasterCard Prepaid Services
•MasterCard processing services support prepaid programs using any of the MasterCard family of brands
– Maestro/Cirrus – online, PIN– MasterCard/MCE – signature
•MasterCard authorizes, clears and settles prepaid transactions, and manages balance information on behalf of issuing members
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MasterCard Family AccountMasterCard Family Account
MasterCard P2P Money Transfer Solutions
The MasterCard Family AccountThe MasterCard Family Account
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• A convenient "passive" recurring transfer solution
– No need for either party to take action unless parent wants to change limit
• A low risk way to give a MasterCard card to teens and young adults
– Parent is accountholder
• Can also be used for extended families or household employees
The MasterCard Family Account
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Uses traditional bank card platform with card level controls
Family Card
MasterCard Solution – MasterCard Family Card
Target Consumer Segment – Fully banks consumers
Channels – Bank branches or website
Economics – Account fees, interchange, and interest income
Key Challenges – Limited to issuer customers
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Components and Customer Experience
Family Card
Components• Bank card management platform • Bank branch or website• MasterCard branded cards with card level controls
Customer Experience1. Primary account holder designates an authorized user2. Primary account holder sets spending and credit limits3. Authorized user uses card at POS or to access cash at
ATMs or bank branches
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Family Card
Interest and Interchange• Interest on larger outstanding balances• Interchange from multiple users
How a Member Makes Money
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Family Card
Targeted Direct Response•Direct Mail•Out Bound Calls•Targeted Take-one Applications
How the Member Will Sell It
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Featuring MasterCard Branded CardsFamily Card
MasterCard Branded Cards leveraging account level controls.
ATM
Acquirers
Proprietary orThird Party
Card Card ManagemenManagement Platformt Platform
POS
MasterCaMasterCardrd
SystemsSystemsPrimary
Acc’t Holder
Authorized User
Authorized User
Issuer
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MasterCard P2P Money Transfer Solutions
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Supporting Bank Business ModelsSupporting Bank Business Models
Intra-Bank Systems ModelIntra-Bank Systems Model
Bi-Lateral ModelBi-Lateral Model
Open Alliance ModelOpen Alliance Model
MasterCard P2PPaymentMoney Transfer Solutions
Intra-Bank Systems Model
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Uses bank proprietary systems to move funds among bank accounts
Intra-Bank Systems Model
MasterCard Solution – MasterCard RPPS
Target Consumer Segment – Banked customers
Channels – Personal computers, PDAs, phone, or branch kiosks
Economics – Transaction-based fees or bundled with other bank services
Key Challenges – Limited to banks on common platforms—limited to consumers with electronic access
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Components and Customer Experience
Intra-Bank Systems Model
Components• Electronic terminal (PC, phone, PDA, or kiosk)• Bank branded Internet portal• Electronic transaction processor (e.g., CheckFree)• Global network and transaction manager (MasterCard RPPS)
Customer Experience1. Customer signs up for electronic banking service2. Accesses funds transfer option3. Enters recipient name and bank account information4. Selects source of funds from accounts with the bank5. Approves the transaction for delivery6. Recipient receives the funds automatically in DDA or credit card account
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MasterCard Remote Payment and Presentment Service allows consumers who use electronic bill payment channels to send
money to other bank accounts or credit cards.
Using MasterCard RPPS, Prepaid Services, & Global Network
Intra-Bank Systems Model
DDA
MasterCard Systems
Electronic Bill Payment Service
MasterCarMasterCar
dd RPPSRPPS
Issuer
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MasterCard P2PPaymentMoney Transfer Solutions
Bi-Lateral Model
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Banks develop a funds transfer among their customers using an agreed upon system
Bi-Lateral Model
MasterCard Solution – MasterCard/Maestro Payment Transaction
Target Consumer Segment – Banked customers & underserved
Channels – Bank branches or electronic channels
Economics – Transaction-based fees along with float
Key Challenges – Not a global solution
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Components and Customer Experience
Bi-Lateral Model
Components• Payment Service Provider platform. (Acquirer or merchant)• One or more bank account(s). (DDA or Credit)• Bank branch, bank kiosks, or bank agent retail locations• MasterCard “payment transaction”
Customer Experience1. Sending customer signs up for bank branded funds transfer service2. Bank captures user profile and performs authentication3. Sender selects service from a terminal or is supported by a branch teller4. Sender identifies the recipient in the partner bank via a program ID5. Funds are sent to partner bank via PSP platform using the MasterCard/
Maestro “payment transaction” to credit card account or debit account
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MasterCard/Maestro Payment Transaction enables funds to be placed on any credit or debit card from many sources of value – Credit Card, DDA, or
Cash.
Using the MasterCard Payment TransactionBi-Lateral Model
DDA
Partner Bank
MasterCard SystemsPayment
Transactions
Acquirer
Payment Service Provider
BankBankPayment Payment PlatformPlatform
Bank InternetChannel
Credit Card Account
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MasterCard P2P Money Transfer Solutions
Open Alliance Model
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Banks leverage an open alliance to provide their customers with global funds transfer capability
Open Alliance Model
MasterCard Solution – MasterCard/Maestro Payment Transaction
Target Consumer Segment – Underserved
Channels – Participating retail agents
Economics – Transaction-based fees, interchange, and FX
Key Challenges – Engage underserved consumer segment
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Components and Customer Experience
Open Alliance Model
Components• Payment Service Provider platform (Acquirer or Merchant)• One or more bank account(s). (DDA or Credit)• Bank branch, bank kiosks, or bank sponsored agent retail locations• MasterCard/Maestro “payment transaction”
Customer Experience1. Sending customer signs up for bank branded funds transfer service
at participating retail agent2. Retail agent captures user profile and performs authentication3. Sender identifies the recipient in the partner bank via a program ID4. Funds are sent to any qualified MasterCard branded card using the
MasterCard/Maestro “payment transaction”
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MasterCard/Maestro Payment Transaction enables funds to be placed on any credit or debit card from cash or card at participating retail or
Internet agents.
Featuring MasterCard Payment TransactionOpen Alliance Model
MasterCard has just MasterCard has just announced MoneySend™ an announced MoneySend™ an
“On-Behalf-Of”“On-Behalf-Of”P2P Service for the European P2P Service for the European
UnionUnion
MasterCard has just MasterCard has just announced MoneySend™ an announced MoneySend™ an
“On-Behalf-Of”“On-Behalf-Of”P2P Service for the European P2P Service for the European
UnionUnionCredit Card Accounts
Debit Card Issuers
PSPProvid
er Agents
Website
PSPProvid
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MasterCard SystemsPayment
Transactions
Acquirer
PSP Provide
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MasterCard P2P Money Transfer Solutions
ConclusionConclusion::
Next StepsNext Steps
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Yes Yes Yes
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Yes
Yes
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Yes Yes
n/a Yes T.B.D.
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MasterCard Solutions Can Support Most Bank Business
Strategies
Platforms
MasterCard Solution Intra-Bank Bi-Lateral Open AllianceProducts• Prepaid• Family Card
• MasterCard Payment Transaction
• Maestro Payment Transaction
• RPPS (U.S. Only)
• Prepaid Services (Global)
• MoneySend (Pilot)Enabling Technologies
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Next Steps...
MasterCard Funds Transfer Card
•Select customer segment•Select business model•Develop product and plan and
requirements• Identify technology platform
The team is ready to support you!
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MasterCard FundsTransfer Solutions
Consumers transferring money to other consumers represents a new opportunity for card issuers. MasterCard envisions a not too distant future when value is exchanged over a myriad of personal terminals.
However, the business case today for person-to-person funds transfer is cross-border remittances.
The MasterCard provides cross border solutions you can implement Today!
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