gaming industry summit 2015 - bglc.gov.jm
TRANSCRIPT
Gaming Industry Summit 2015
Douglas HalsallChairman/CEO,
Advanced Integrated Systems Ltd.
Agenda
Mobile Money – The Perception
Digital Cash (Quisk) – The Superior Alternative
Quisk + Mobile Betting – The Elegant Solution
For Governments: Cash usage associated with slower economic growth Fosters the “shadow economy” , and money laundering
For Banks: No fee income from cash transactions Incur significant operational costs due to cash services
For Merchants: Cash customers are opaque– prevents effective marketing Incur significant cash handling expenses
For Consumers: Presents personal safety risk Significant time & inconvenience getting cash for payments Difficult, slow and/or expensive to send cash to others or to pay
bills, or access to remote goods and services – eCommerce & Betting.
The Problems with Cash
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Mobile Money: The Perception Evolved in Africa/Asia - Banks inaccessible Addresses the needs of the Unbanked Uses the ubiquitous cell phone as the instrument of
storing value and payments Controlled by TELCOs – Accounts & Float Employs Cash-in & Cash-out agents More than 90% of Transactions are P2P and
Cash-In/Cash-Out.
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The Telco Model
Addresses the unbanked Removes the challenges
associated with remote transfer of cash
Unique Cell phone number
Ideal for remote areas Especially P2P, with local
Cash In and Cash out Agents
Inefficient - compared to Merchant POS
and ATM transactions Merchant settlement Cash in/Cash Out
Limited or no KYC information
Cash-In/Cash-out agents costly
Little/No Account Control Little Demographic
Information Limited interoperability –
Single Issuer.
Strengths Weaknesses
The Bank Model Main Advantages
1. Addresses all the needs of the unbanked PLUS2. Multi-Bank participation (Interoperability)3. Main objective: To digitize cash4. Greater Utility – POS, ATM, eCommerce, Bill
Pay, Mobile Betting, etc, etc.5. Integrated with Banks’ Core Systems, thus
facilitating Top Up from other accounts – saving, chequeing, credit card, etc. (therefore facilitates higher limits than “mobile money”)
6. Multi-Bank Settlement – a la VISA
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The Future of Money
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Cash, or fiat currency, regulated by a central bank, in digital format (not physical) which is domiciled at a bank and can be simply and securely used by consumers with their mobile phone number & PIN
What is Digital Cash?
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Your moneyWithout the cash.Without the cards.Without the wallets.
In your bank.
• Over 6 billion mobile phones, 2 billion bank accounts, massive payment infrastructure for over 16 billion debit and credit cards
• Cash is becoming increasingly obsolete in the 21st century
• BUT, globally 85% of all retail transactions are still conducted in cash!
Business Driver: Create alternative to cash
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0% 20% 40% 60% 80% 100%
FinlandNorwayCanada
United StatesFrance
United KingdomSingapore
South KoreaAustraliaGermany
JapanSpain
PolandItaly
BrazilSouth AfricaSaudi Arabia
RussiaMexico
ChinaIndia
Nigeria
% of Retail Transactions Conducted in Cash
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Source: McKinsey Global Payments Map, 2013.
Cash-based economies
More digitized
economies
Business Driver: Cash is still “king” in most places
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• Quisk aspire to do for cash what Visa, MasterCard and others have done for credit
• Quisk is the creator of a highly efficient, next-generation debit platform enabling a new, low-cost digital cash payment type
• We connect the Quisk platform to core banking platforms and to POS terminal and ATM networks
• Quisk creates multi-issuer, interoperable environments with real-time settlement
• The Quisk platform is “Mobile Money 2.0”
Bank-centric, interoperable and wider range of consumer transaction types
Quisk: Bringing Cash into the 21st Century
Quisk: Much Broader Range of Transaction Types
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• Quisk offers a cloud-based platform to enable banks to offer new consumer products
• Banks work with merchant acquirers to sign up merchants (leveraging their existing POS systems)
• Banks offer Quisk accounts to new and existing customers in compliance with KYC, AML, and other country-specific regulations
• Consumers, using their mobile phone number and PIN, make retail purchases, P2P transfers, cash in/cash out, and pay bills—phone does not need to be present
How Quisk Works
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Uniqueness of Quisk Multi Issuer ISO 8583 Standard Telco Agnostic POS/ATM Connectivity Merchant Settlement Subsystem Inter-Bank Settlement Subsystem Integration with Core Banking System KYC and AML Capability Interoperability PCI/VISA Approved Switch.
Small percentage fee per transaction with no minimum ensures that every kind of transaction is allowed
No Minimum Fees = No Minimum Transaction
Quisk: Mobile Money PlusNo Minimum cost – i.e. permits micro transactions
Telco Agnostic Any Handset ISO 8583 Ubiquity/Convenience
Digital Cash!
The Elegant Solution
Critical Success factors for the Enhancement and Growth of Betting through Mobile
1. Strong KYC Process
2. Robust AML Protection
3. Effective Source of Funds Management
4. Effective Prevention of Cross-border Gaming
5. Protection of Punters’ Funds
6. Promotion of Responsible Gaming
7. Transparent and Auditable Betting Operations
8. Comprehensive and Auditable Transactional and Compliance Reporting
9. Efficient Financial Settlement
10. Rich and Engaging User Experiences.
Mobile Betting – The Traditional Model
Mobile Betting – The Quisk Model
NB: ALL Betting Transactions, Including Bet Numbers Recorded by Bank.
For Betting Operators Attract new Punters High Churn Rates – Punters’ Winnings are immediately credited to their accounts to
fund more Bets Efficient Settlement Process – Funds are credited to the Operators’ accounts
immediately upon settlement of Betting Transactions Comprehensive Transaction Reporting 24x7 Betting.
For Regulators Robust AML Protection Strong KYC Due Diligence Tax Revenue Protection Prevention of Cross-border Gaming – No Credit Cards! Comprehensive Compliance Reporting.
For Banks: Mobile Betting Provides a New and Lucrative Revenue Source Opportunity to Tap into the “Unbanked” Market.
For Consumers: Protection Against Loss of Funds Protection from Cyber Crimes, such as Identity Misuse and Credit Card Fraud Rich and Engaging User Experience.
Benefits to Stakeholders
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Quisk Mobile Betting: Key Takeaways1. The supervision of KYC for Punters is strictly under the
purview of a BOJ approved Bank.
2. Source of Funds is totally monitored by a BOJ approved Bank.
3. All Betting activity recorded as Banking Transaction By BOJ approved Bank.
4. The Betting Institution does not hold Punters' Funds, in a Betting account, in violation of The Depositors Act.
5. Local Betting Institutions do not run the risk of "losing Punters accounts records" and suffering the consequences.
6. Punters have immediate and continuous access to account balances, at all times, as it's maintained in a DDA account with a BOJ approved Bank.
7. All Reporting is through and from a BOJ approved Bank.
8. Quisk is hosted in a data centre cloud, with full redundancy and 24 x 7 x 365 access.
9. Comprehensive electronic file and Business Intelligence Tool.
Quisk Mobile Betting: Key Takeaways – cont’d
Recommendation for Gaming Lounges
The Quisk Model for Mobile Betting is a far more efficient model for Gaming Houses than existing approaches
KYC Requirements are already handled by Quisk, which removes the inhibition of some Punters in providing Gaming Houses with KYC info
Top Up using Quisk is 40-50% less expensive than using Credit Card.
Monitoring by BGLC and Reporting are Bank Certified.
AIS: Who we are
* Regional Transaction
Processor
* Operates Mission-
Critical, Cloud-based
Data Center – Plus 2
Fully Redundant
Facilties for Quisk
* Data Center Uptime:
Greater than 99.99% for
the last 15 Years
AIS CLOUDCAYMAN
JAMAICA
BAHAMAS
2015: Trinidad, Barbados, St. Lucia and Curacao
Health Claims Processing
0
200
400
600
800
1000
1200
1400
Provider Type
Prov
ider
s
PharmacyDentalOpticalMedicalLABHospital
Number of Card Holders: 1,260,000
Claims Processed Daily: 130,000
CATEGORY TOTALMedical 3512Pharmacy 546Dental 196Optical 132Lab 69Hospital 40GRAND TOTAL 4495
Quisk is Red Herring 100 Winner!
Recognised as: “the most exciting and promising private technology start-ups”
OUR PARTNER:
Thank You!
7 Oxford TerraceKingston 5Tel: 929-7877www.aiswebnet.com