accepting 16 digit payments v116122014

Tel: +44 (0)1992 500589 Email: [email protected] ©Invapay2014

Accepting16 Digit Payments

Sid Vasili

CEO

[email protected]

+44 7875 268 416

mailto:[email protected]



The world of business and trade…has it really evolved?

Payments are designed around Regulation, old technology and in

some cases out of date thinking/ hardware / mainframe systems.

Access to credit is still restricted by banks and the regulatory

environment.

The banks are in the process of modernising but are constrained by

Regulation, Tier 1 & 2 Capital requirements, culture and technology.



Growing frustration for Suppliers…

Accepting 16 Digit Accounts can be expensive.

Contracting with an acquiring bank can be fraught with difficulty,

minimum flow expectations, rolling reserves, up to 28 days settlement.

Installation of equipment can be complicated and adds cost.

The cost per transaction is considered high – L3 is very expensive.

Once they are a “Merchant” there are no guarantees that other buyers

will also want to use their 16 Digit Accounts with them.



…and it’s no different for Buyers

Perceived lack of control over “PCard” as staff use multiple suppliers,

Card in Hand Transactions tend to be Level 1.

Management of transaction data is difficult and the availability is limited.

Reconciliation & System integration can be complicated and costly.



We think too many people have been at this point…

…but we have been working hard to provide you with an alternative.



Introducing Invapay…our aim is to overcome the old frustrations.

Connected to 800 banks across the Globe.

We operate globally.

Our Platform processes all major currencies.

Enhance and optimise Working Capital ,incremental revenue

streams and access to On-Demand, Off Balance Sheet Credit.



Add ePayments to your

solution

Enhance Rebate/Discount

opportunities

Invapay ePayments for Partners

Seamless integration or

SFTP

Enhance your Supplier

relationships accelerating

payments to improve their

Cash Flow.



Maximum integration at the flick of a switch…

• Implement our secure cloud-based solution anywhere in the world.

• Corporate buyer’s account is fully operational within 24 hours.

• Aftersales support to guide suppliers through enablement and set up.

• The buyer’s procurement team can upload supplier details. In addition, the

automated message service sends instructions to suppliers explaining set up.

The Invapay Guarantee means all authorised suppliers will be part of your customer’s ePayment ecosystem*.

*Our guarantee is subject to the supplier meeting our strict Credit Check requirements.


e

Buyers System

Invapay Acquirer Client Account

Vendor

Submission of Vendor

Details

API INPUTKYC to Approve

Vendor

Acq Forward to VISA VMAS

Supplier Approva

l

Payment Submission

API INPUTRequest received and charged to 16

Digit Account

Funds Acquisition 16 Digit Account

Acquirer

VISA

Issuer

Buyer Supplier Account

Bank Reconciliation File

process

Payment Request

Payment Confirmation

Validate Payment

Payment Net of Invapay Fee

Vendor Receives Payment via EFT

Remittance advice +

Fee Invoice

EndEnd

Invapay Collaboration and Dispute Resolution Process

1 2

3

4

Go/No Go

56

Yes

No

9

87

10

11

13

12

Invapay ePayment Process Flow


Invapay Portal

InvapayERPExternal Payment

Control

Buyer - Client Bank A/C

Vendor

Daily Submission of Archived transactions

Daily transaction

file imported into ERP External

Cashbook

Daily Bank Statement to show funds

received from Acquirer

Reconciliation against funds

received at Bank to External Cashbook

Authorise and post reconciled transactions

INVAPAY OPERATIONAL COMPANY

Fee Transaction Records Imported

Vendor Receives

Payment via EFT

Remittance created & emailed to

Vendor

1

2

3

98

7

12

Invapay – Multi-Company ERP – Process Flow

XML to move Fee Amounts from Client A/C to Operational A/C

Generate Payments and send technical validation

file to Barclays

Fee Invoice created & emailed to

Vendor

5

6

10

Review Report and authorise with 2 signatures

Operational Bank A/C

Print updated report and attach to authorisation file

Barclays Status Report confirmation. Authorise

with 2 signatures.

Transmit validated XML file to Barclays to complete

payments.

11

13

External Cashbook

Acquirer

External Sub-Cashbook

Buyer COMPANYInvoice Transaction Records

Imported

Review and post reconciled transactions

4

17

Status Report confirmation and file is processed for

Payment in Sage

14

15

16



You may not have heard of us but all these people are working with us…



…and this is what they say about us

“Working with Invapay has helped us change the way finance

and purchasing operates. It’s a very clever system.”

Head of Global Finance Shared Services – Telco

“An organisation which is using technology in a very smart way.

It simply enables acquirers to solve the problems in the industry and

increase turnover with little effort.”

Ed Chandler, CEO, Kalixa Payments Group

Invapay has been

approved to the

highest standards

Visa has a significant focus on digitization of the B2B payment and our

partnership with Invapay supports our joint endeavor to simplify the

payables process for organizations. We recognize Invapay’s ability to

deliver extended payment terms through a Visa 16 digit account number,

while securing accelerated payments for the supplier community. The ease

of Invapay’s supplier onboarding processes allows organizations to reap the

benefits of an automated payables solution quicker.

Olivia Leong, Head of Commercial and Prepaid Payment Solutions,

Visa Asia Pacific.


Savings Matrix



Pricing calculation based on average transaction value of $750.00 USD

Invapay Customer Supplier

Early Settlement Discount 2.35% $17.63

Transaction Charge $1.25

Cost of Fraud (3/4 basis point)

$5.63

AP Savings Customer Specific

VAT /Tax Risk0*

*Level 3 Line Item Tax

data for transaction

Rebate (rebate 50 BPS)

$3.75

Savings See following slides

Invapay Pricing Example

Note: Costings subject to client requirements



Annual Spend $25 Million $50 Million $100 Million $250 Million $500 Million $1 Billion

No. of Invoices (Average invoice value $750.00)

33,333 66,667 133,333 333,333 666,667 1,333,333

Cost of funds (50 basis points)

137,500 275,000 550,000 1,375,000 2,750,000 5,500,000

Fraud (3/4 basis point)

187,500 375,000 750,000 1,875,000 3,750,000 7,500,000

Rebate (50 basis points)

125,000 250,000 500,000 1,250,000 2,500,000 5,000,000

Total cost to process spend BAU

25,200,000 50,400,000 100,800,000 252,000,000 504,000,000 1,008,000,000

Total cost utilising Invapay API

25,062,500 50,125,000 100,250,000 250,625,000 501,250,000 1,002,500,000

Total savings utilising

Invapay API137,500 275,000 550,000 1,375,000 2,750,000 5,500,000

Cost Saving Schedule – InvaPay API





No. of Invoices (Average invoice value

$750.00)33,333 66,667 133,333 333,333 666,667 1,333,333

FTE Processing cost (Average processing cost

$19.10 per invoice )636,666 1,273,333 2,546,666 6,366,666 12,733,333 25,466,666

Total cost utilising InvaBuy

(rebate 50 basis points)24,425,833 48,851,666 97,703,333 244,258,333 488,516,666 977,033,333

Total savings utilising InvaBuy 574,166 1,148,333 2,296,666 5,741,666 11,483,333 22,966,666

Cost Saving FTE - InvaBuy

Average cost to process an

Invoice: $19.10 USD

Invoice exception Rate: 16.1%Exception rates have not

significantly reduced in 10 yearsSource: Ardent Partners 2013





Total cost utilising Invapay API

25,062,500 50,125,000 100,250,000 250,625,000 501,250,000 1,002,500,000

Total savings utilising

Invapay API137,500 275,000 550,000 1,375,000 2,750,000 5,500,000

Cost Saving – Quick view summary


Total cost utilising InvaBuy

24,425,833 48,851,666 97,703,333 244,258,333 488,516,666 977,033,333

Total savings utilising InvaBuy

574,166 1,148,333 2,296,666 5,741,666 11,483,333 22,966,666


accepting 16 digit payments v116122014

Economy & Finance

multiple suppliers

authorised suppliers

digit accounts

partnersseamless integration

maximum integration

supplier relationships

supplier details

working capital