Pin payments presentation final (4)
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MKTG90017, Semester II 2013 GROUP MEMBERS: Pearl (Shun) Li: 573083 Mark Turner: 524686 Ivan Sanchez: 594783 Kristen Goulopoulos: 360214 CASE STUDY: Southern Payment Systems Pty Ltd (TRADING AS: PIN PAYMENTS)
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A presentation for our Internet Marketing Class. A study case about Australian Startup Pin Payments, which tries to find a good position in the Online Payment Processing Market for Australia, Asia and The Pacific. They sell an API to process Payments... by now they seem to be targeting Australian Bussinesses and helping them to process payments withing Australia and all over the world.
Transcript of Pin payments presentation final (4)
MKTG90017, Semester II 2013GROUP MEMBERS:
Pearl (Shun) Li: 573083Mark Turner: 524686 Ivan Sanchez: 594783
Kristen Goulopoulos: 360214
CASE STUDY: Southern Payment Systems Pty Ltd
(TRADING AS: PIN PAYMENTS)
• Formed in Perth, November 2011• Provides an API for embedded online payments
interface and process transactions on clients behalf
• Have expanded operations to Melbourne and Sydney
• About 1000 Australian merchants have used the service in testing
(Source: Bleby, M. 2013, “Payments group Braintree comes to Australia with eyes on developers”, BRW online, 20 June.)
Start-up History: Pin Payments
• Access to a worldwide market• Current lack of innovative payment solution
for online purchases • Merchant accounts
The Problem
Advantage Offer/SolutionExpand Australian online businesses to expand globally in an easy and secure way
• Pin Payments provides a PCI (Payment Card Industry) compliant set of code for processing online payments
• Enables retailers to process payments without a merchant account. Only an ABN and credit card is required
Easy implementation for Australian online businesses
• Save mobile application & website development costs
• Increased speed of website development
Easy & Clear payment method for Australian online businesses and individual buyers
• Enables processing payments from any debit and credit card bearing the Visa and MasterCard brands outside Australia.
• Can choose the currency of payment; AUD or USD• $50 Monthly and 3% + $0.30 transaction fee
Improve online shopping experience for individual buyers
• Payment interface embedded in clients' website. Consequently customers are not moved to a third party site
Value Proposition
Traditional (Competitor) Business Model
(Source: Booz, Allen & Hamilton in Merritt, C. 2011, "Mobile money transfer services: the next phase in the evolution of person-to-person payments.", Journal of Payments Strategy & Systems, vol. 5 no. 2, pp. 143-160.)
Pin Payments Business Model
Website & Mobile Interface
Code Extract [JSON CALLS]
The core Pin Payments product
Ref: IBISWorld Industry Report X0004, Online Shopping in Australia, March 2013
Total Online Australian Businesses
36 655
Market Size
5% online retail share would see annual revenue of over $2.5 million*(based on estimated $40 transaction amount)
Revenue Model
$50 monthly membership
30c per transaction
+ 3% of amount
Competitors
Pin Payments Competitors Price Structure Overseas
Capability
Pin Payments(https://pin.net.au/)
3% + $0.30 per transaction$50 membership free Unlimited
PayPal(https://www.paypal.com/au/cgi-bin/webscr?cmd=_display-receiving-fees-outside
)
2.4% + $0.30 base rate per transaction Limited
Google Wallet(https://www.google.com.au/wallet/faq.html
)
1.9% + $0.30 per transaction or 5% (depending on favourability for retailer)Usual card processing feesRequires end-user to have an account with Citibank
Limited
Ezidebit(www.ezidebit.com.au/take-the-tour/faqs/
)
Payment structure unavailable Very Limited
Stripe(https://stripe.com/)
2.9% + $0.30 per successful transactionNo monthly fee Limited
Braintree(https://www.braintreepayments.com/
)
2.4% + $0.30 per transactionNo membership freeStrong competitor in the US Entering the Australian market
Limited
Analysis of Competitors
Thank you for listening
Questions?
