Consumer billing Best practices

Consumer billing Best practices

Jaap Jan Nienhuis – 20 March 2013

tomorrow’s transactions today

Welcome

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Titel – subtitel. Auteur(s) – datum voluit.© Innopay BV. Alle rechten voorbehouden.

• Jaap Jan Nienhuis • Senior Consultant @ innopay • Expert e-invoicing • PL for SimplerInvoicing.org

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Introductions

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EBPP: Bill Presentment & Payment

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What role does online banking have in the life of the consumer?

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What role does EBPP have for billers & consumer?

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“Billing is not a core service… …it is just invitation to pay”

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Today

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But the bill is changing…

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Tomorrow

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Tomorrow

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Even the receipt is changing

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Tomorrow

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But why is it important for a bank?

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Relevance

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But how?

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Positioning

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Channels: desktop to mobile

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Desktop to mobile

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Branding

Even the best make mistakes

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How do you collaborate?

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Fortunately we have examples

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• Presentation

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• Presentation • First responder

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• Presentation • First responder • Interaction

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Thank you For your attention

Jaap Jan Nienhuis – Innopay – Mobile +31 6 27 364 127

tomorrow’s transactions today

Usability, Risk, Cost • In 1993 Prof. Dr. Betty Collis, a behavioral scientist in the Netherlands, introduced the ‘3P Model’ (Practicability, Profit, Pleasure) to determine how an actor relates a solution to his own motives, emotions, experience. • When looking specifically at payment services, we need to translate these criteria to match the characteristics of payment services: − Usability (=Practicability): what is the (desired) usability for the user (e.g. interaction, speed, ‘reach’) − (Minimal) Cost (=Profit): what is the advantage for the user − (Minimal) Risk (=Pleasure): what drives recurring use U

Practica bility

Usability

Payment solution

Solution

Pleasure

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Profit

R

C

Risk

Cost


Rating payment products: Credit Transfer Creditor (get paid)

U

U

Usability

Usability

R

C

R

C

Risk

Cost

Risk

Cost

- Reconciliation errors - Initiation lies with Debtor + No chargeback risk + Low cost

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Debtor (pay)


- Data entry + Secure, under own control + Low cost

Rating payment products: SEPA Credit Transfer Creditor (get paid)

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Debtor (pay)

U

U

Usability

Usability

R

C

R

C

Risk

Cost

Risk

Cost

- Reconciliation errors - Initiation lies with Debtor

- Data entry -> even with IBAN for domestics

+ International reach + No chargeback risk + Low cost + D+1

+ International reach + Secure, under own control + Low cost


Rating payment products: Direct Debit Creditor (get paid)

-

-

U

U

Usability

Usability

R

C

R

C

Risk

Cost

Risk

Cost

High total cost of collection High risk of chargeback fraud + Faultless reconciliation + Initiation lies with Creditor + Low cost

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Debtor (pay)


- Out of control / pull payment - Risk of invalid collections + Convenience for certain repetitive low attention payments + Low cost

Rating payment products: SEPA Direct Debit Creditor (get paid)

U

U

Usability

Usability

R

C

R

C

Risk

Cost

Risk

Cost

-

High total cost of collection - Higher risk of chargeback fraud - Certain after 56 days - Risk of collection failures - Stricter mandate management + Faultless reconciliation + Initiation lies with Creditor + Low cost

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Debtor (pay)


-

B/W listing requires double administration

+ Full control through B/W listing + Low cost

Summarized

SEPA instruments are compromise products, optimized for reachability.

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So, the ideal payment instrument Creditor (get paid)

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Debtor (pay)

U

U

Usability

Usability

R

C

R

C

Risk

Cost

Risk

Cost

+ Pull payment

Yet give sufficient buyer control

+ Irrevocable

Yet with sufficient consumer protection

+ With a 100% recon rate

Yet this is not the payers problem

+ With no bounce rates

Still enables to automate my repetitives

+ Low cost of collection

Yes, also for me


Consumer billing Best practices

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