Direct Debits in Europe The merchants perspective DRF Europe April 25-26, 2006 - Basel
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Transcript of Direct Debits in Europe The merchants perspective DRF Europe April 25-26, 2006 - Basel
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Direct Debits in Europe The merchants perspective
DRF EuropeApril 25-26, 2006 - Basel
Ronald WallrothGlobalCollect
Sven krahnLycos
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Agenda
• Non face-to-face payments facts and figures
• Merchants challenges and expectations
• Direct Debit key benefits
• Lycos Europe business case
• Questions and discussion
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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
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Companies with successful strategies
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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
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Only 64% of European online shoppers own a credit card
Source: Forrester 2004
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Online payment collection challenges
SPEED
CURRENCIES
SECURITY
INSTRUCTIONS &LANGUAGESPAYMENT
METHODS
DATAPROTECTION
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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
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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
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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
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Payment methods comparative analysis
Credit
Card
Direct
Debit
Bank
Transfer
Real Time
BankingCheque
Initiated Customer Customer
Speed
Costs
Charge back risk
Fraud Risk
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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]