epayment in global environment by orly amrany (@sosa)
TRANSCRIPT
Global e-PaymentOrly Amrany
Agenda ePayments ecoSystem
How to choose payment provider
Use Case: Wix’s decision to build its own Billing system
How Wix is doing global payments (LATAM use cases)
Challenges of Alternative Payment methods w/ Subscription model
A Bit About Myself
A Bit About Myself
SchulichSchool of Business,
Toronto, CA, Marketing Major
TAURecanati MBA
Technion, BSc Computer Science
engineering
IDF MamramExtended
Programming course
R&D CenterSW Developer
Head of Products and
Product Marketing
SDK Partner Manager,QM Manager,
Product Manager,Technology Platform
General Manager
Premium Services Business Unit
Sr. SW Developer & Project Lead
ePayments Ecosystem
Buzzwords
Payment Provider
Payment Gateway
Payment Aggregators
Processor
PCI
Billing System
Acquiring Bank / Acquirer
Merchant (of records)
PSP (Payment Service Provider)
Issuing Bank
Charge Back
APM(alt. Payment Method)
Merchant
Issuing Bank
Card Schemes
Acquiring Bank
Alternative Payment Methods
Online/offlineBank Transfer
eWallets
Cash
Processor/Payment GWs
Aggregators Billing System
Billing
Payment
Billing System
BillingSystem
Product Catalogue
PCI
Currencies
Coupons
Recurring
Charge /Routing
How to Choose Payment Provider?
Main Questions:
What is your billing
model?
1
Main Questions:
What is your billing
model?
Which countries you want to sell in? do you have local entity there?
1 2
Main Questions:
What is your billing
model?
Which countries you want to sell in? do you have local entity there?
Did you already develop
billing logic?
1 2 3
Do you expect returning users?
Is your model a subscription one?
YES
Dependency on providers / No ability to move
between them
Become PCI-DSS Compliant
ORSave CC / 1-click buy
Example:
Wix’s Use Case
In-House Billing System
Subscription based model
Currently working with 2 billing solutions
Brazil success rate is very low (~40-50%)
Old system is no longer supported
Old system is not PCI level 1 compliance
Old system does not support some needed features
Wix’s Payment Status on 2012:
In-House Billing System
Subscription based model
Currently working with 2 billing solutions
Brazil success rate is very low (~40-50%)
Old system is no longer supported
Old system is not PCI level 1 compliance
Old system does not support some needed features
Wix’s Payment Status on 2012:
In-House Billing System
Subscription based model
Currently working with 2 billing solutions
Brazil success rate is very low (~40-50%)
Old system is no longer supported
Old system is not PCI level 1 compliance
Old system does not support some needed features
Wix’s Payment Status on 2012:
In-House Billing System
Subscription based model
Currently working with 2 billing solutions
Brazil success rate is very low (~40-50%)
Old system is no longer supported
Old system is not PCI level 1 compliance
Old system does not support some needed features
Wix’s Payment Status on 2012:
In-House Billing System
Subscription based model
Currently working with 2 billing solutions
Brazil success rate is very low (~40-50%)
Old system is no longer supported
Old system is not PCI level 1 compliance
Old system does not support some needed features
Wix’s Payment Status on 2012:
In-House Billing System
Subscription based model
Currently working with 2 billing solutions
Brazil success rate is very low (~40-50%)
Old system is no longer supported
Old system is not PCI level 1 compliance
Old system does not support some needed features
Wix’s Payment Status on 2012:
Replace old system that was not supported any more
Split traffic between vendors (not to be dependent on one)
Solve the Brazil issue
Allow Wix to enter new markets easily
In-House Billing System
Management Requirements
Replace old system that was not supported any more
Split traffic between vendors (not to be dependent on one)
Solve the Brazil issue
Allow Wix to enter new markets easily
In-House Billing System
Management Requirements
Replace old system that was not supported any more
Split traffic between vendors (not to be dependent on one)
Solve the Brazil issue
Allow Wix to enter new markets easily
In-House Billing System
Management Requirements
Replace old system that was not supported any more
Split traffic between vendors (not to be dependent on one)
Solve the Brazil issue
Allow Wix to enter new markets easily
In-House Billing System
Management Requirements
Support current system functionalities
Support current payment options and currencies
Allow us to sell in Brazil using local CC
Ability to easily enter new territories
Redundancy, availability & physical environment (downtimes etc)
Knowledge of international market
Success rate per GEO (how many Acquiring Banks, and which ones?)
Price
In-House Billing System
Factors / Benchmark KPIs:
Support current system functionalities
Support current payment options and currencies
Allow us to sell in Brazil using local CC
Ability to easily enter new territories
Redundancy, availability & physical environment (downtimes etc)
Knowledge of international market
Success rate per GEO (how many Acquiring Banks, and which ones?)
Price
In-House Billing System
Factors / Benchmark KPIs:
Support current system functionalities
Support current payment options and currencies
Allow us to sell in Brazil using local CC
Ability to easily enter new territories
Redundancy, availability & physical environment (downtimes etc)
Knowledge of international market
Success rate per GEO (how many Acquiring Banks, and which ones?)
Price
In-House Billing System
Factors / Benchmark KPIs:
Support current system functionalities
Support current payment options and currencies
Allow us to sell in Brazil using local CC
Ability to easily enter new territories
Redundancy, availability & physical environment (downtimes etc)
Knowledge of international market
Success rate per GEO (how many Acquiring Banks, and which ones?)
Price
In-House Billing System
Factors / Benchmark KPIs:
Support current system functionalities
Support current payment options and currencies
Allow us to sell in Brazil using local CC
Ability to easily enter new territories
Redundancy, availability & physical environment (downtimes etc)
Knowledge of international market
Success rate per GEO (how many Acquiring Banks, and which ones?)
Price
In-House Billing System
Factors / Benchmark KPIs:
Support current system functionalities
Support current payment options and currencies
Allow us to sell in Brazil using local CC
Ability to easily enter new territories
Redundancy, availability & physical environment (downtimes etc)
Knowledge of international market
Success rate per GEO (how many Acquiring Banks, and which ones?)
Price
In-House Billing System
Factors / Benchmark KPIs:
Support current system functionalities
Support current payment options and currencies
Allow us to sell in Brazil using local CC
Ability to easily enter new territories
Redundancy, availability & physical environment (downtimes etc)
Knowledge of international market
Success rate per GEO (how many Acquiring Banks, and which ones?)
Price
In-House Billing System
Factors / Benchmark KPIs:
Support current system functionalities
Support current payment options and currencies
Allow us to sell in Brazil using local CC
Ability to easily enter new territories
Redundancy, availability & physical environment (downtimes etc)
Knowledge of international market
Success rate per GEO (how many Acquiring Banks, and which ones?)
Price
In-House Billing System
Factors / Benchmark KPIs:
The Conclusions(After extensive market research & due-diligence of several
solutions)
…And
Conclusion
1-click purchase & recurring requires saving the CC
#1
Conclusion
1-click purchase & recurring requires saving the CC
Switching providers is not feasible in recurring payment (new traffic only)
#1
Conclusion
1-click purchase & recurring requires saving the CC
Switching providers is not feasible in recurring payment (new traffic only)
Independency from a specific provider requires saving the CC in Wix
#1
Conclusion
1-click purchase & recurring requires saving the CC
Switching providers is not feasible in recurring payment (new traffic only)
Independency from a specific provider requires saving the CC in Wix
Need PCI-DSS Level 1 Certification
#1
Conclusion
No solution in the market that is mature* enough, in terms of global ePayments
#2
Conclusion
No solution in the market that is mature* enough, in terms of global ePayments
Adding New local provider takes time
#2
Conclusion
No solution in the market that is mature* enough, in terms of global ePayments
Adding New local provider takes time
APMs w/ recurring is a challenge
#2
Conclusion
No solution in the market that is mature* enough, in terms of global ePayments
Adding New local provider takes time
APMs w/ recurring is a challenge
Need a local entity in most markets
#2
Conclusion
No solution in the market that is mature* enough, in terms of global ePayments
Adding New local provider takes time
APMs w/ recurring is a challenge
Need a local entity in most markets
PSP model is less & less popular
#2
Conclusion
No solution in the market that is mature* enough, in terms of global ePayments
Adding New local provider takes time
APMs w/ recurring is a challenge
Need a local entity in most markets
PSP model is less & less popular
We need the ability to control our globalization’s roadmap
#2
Conclusion
Billing System (handling subscriptions) is separated from the payments ability
#3
Conclusion
Billing System (handling subscriptions) is separated from the payments ability
Support different future charging model (e.g quantity base, quota base)
#3
Conclusion
Billing System (handling subscriptions) is separated from the payments ability
Support different future charging model (e.g quantity base, quota base)
Flexibility of recurring logic (e.g charge on the 2nd, 16th)
#3
Conclusion
Billing System (handling subscriptions) is separated from the payments ability
Support different future charging model (e.g quantity base, quota base)
Flexibility of recurring logic (e.g charge on the 2nd, 16th)
Need to develop subscription manager
#3
Conclusion 4
=+ + Service Bill System (SBS)
#4
#1 #2 #3
Business Impact
Initial success rate ~+0.5% (!) in ALL countries
Improved Retry logic: Saving ~9% OF ALL transactions (US results: Mo: 87.5% → 95.8%, Y: 67.7%--> 86.2%)
ChargeBacks fight saving: ~200K/ Year
Easy AB test of different Processors (success rate)
Saving middleman processing fees on 200M/Y : 3 Million /Y
Global Payments
LATAM Case (BR)
Popular Payment Methods
• ~75% debit & credit Cards (mostly local CC)
• ~15-30% cash (mostly Boleto)
• Local CC of visa/MC
• Local brands of cc: Elo, Hipercard
LATAM Case (BR)
Legal / Operation / Finance
• Need local entity to process local cards
• There is local tax
• Need to add 1 field (CNPJ/CNP)
• Invoicing needs to be sealed / provided by local firm (Acal accounting firm)
LATAM Case (BR)
Major Acquire Banks
LATAM Case (BR)
Local payment providers
LATAM Case (BR)
Consideration • User flow for Boleto / CC
• Ability to save the cc (Payment Page Vs Redirect)
• Boleto does not support recurring
• PCI concerns
LATAM Case (BR)
Action taken - local CC support first
• Establish Wix BR entity
• Sign-up w/ local accounting firm (Acal)
• For local cc:
• Open bank account in HSBC (settlement)
• Sign up w/ Cielo, opened MID• Integration directly with Cielo
(in the past CobreBem & Braspag)
• For Boleto: Connect via AstroPay (all banks)
LATAM Case (MX)
Popular Payment Methods
• ~45% debit & credit Cards (international/local)
• ~32% cash (mostly oxxo)
• ~15% bank transfer
LATAM Case (MX)
Legal / Operation / Finance
• Need local entity to process local cards
• There is local tax
• Add fields (RFC/Vat ID, address fields)
• Invoicing needs to be sealed & connected to the Tax authorities
LATAM Case (MX)
Major Acquire Banks
LATAM Case (MX)
Local payment Providers
LATAM Case (MX)
Consideration • User flow on oxxo, bank transfer
• Ability to save the cc (Payment Page Vs Redirect)
• OXXO/bank transfer doesn’t support recurring
• PCI concerns
LATAM Case (MX)
Action Taken • Establish Wix MX entity
• Sign-up w/ local accounting firm/invoicing (BBVA,Interfactura)
• Tech Integration project with Interfactura
• For local cc:
• Sign up w/ banorte, open Bank account• Integration to banorte Via Adyen
GW (can be done directly w/ Banorte)
• For APM
• integration with MercadoPago for OXXO & Bank Transfer
Challenges of APM & Subscription Model
• Recurring model
• Churn / Opt-in
• Monthly Subscriptions
Billing Challenges
Non-recurring Payment Methods (Direct Debit, iDeal, Cash)
Off-line Payment Methods (SEPA, Bank Transfer, Cash based..)
• Service delivery issue (e.g domain)
Possible Solutions
“Manual recurring” – send email give option to “pay now”
Sell yearly subscriptions only
Delivery after payment (Srv subs. Date starts after payment, not on pay)
UX Challenges
How Sell Yearly (change cycle after selecting payment option?)
Cannibalization of CC
Redirect flows
Suggested Solutions
Questions?
