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?