how innovations in payments ecosystem impact consumer behavior
TRANSCRIPT
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How Innovations in Payments Ecosystem
Impacts Consumer Behavior
Mark CoffeyEVP - Head of Strategic Partnerships,
GasBuddy
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THE #3 TRAVEL APP 1. Yelp
2. Uber
3. s
4. TripAdvisor
5. Lyft
6. Fly Delta
7. United Airlines
8. American Airlines
9. AT&T Global Wi-Fi
10. Southwest Airlines
Source: App Annie2
12mm
Monthly Active
Users
16.5mm
Marketable Emails
>85mm
Lifetime Downloads
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“When it’s time to
refuel, you’ll be
happy to have
GasBuddy on your
phone.”
GASBUDDY NAMED TOP TRAVEL APP OF 2018 & 2019PC Magazine recognizes GasBuddy as a best travel app of 2018 & 2019
Source: PC Magazine, August 2019
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PAYMENT AS INNOVATION
2000 2005 2010 2016 2017 TODAY
GasBuddy is
Founded
First Office
Opened in
Regina, Canada
GasBuddy
App
Launched
Boston Headquarters
Established
GasBuddy Launches
Business Pages and
Pay with GasBuddy
Organic growth to 12M monthly active users
Insights into 157,000+ fuel/convenience retailers across the U.S. and
Canada
TODAY
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20-Year-Old Business
• GasBuddy was founded in April 2000
• GasBuddy had been a simple but powerful utility, empowering drivers by showing them where the cheapest gas was based on their current location
• As one of the most successful crowdsourced apps, GasBuddy fuel price data has been the primary data source in the US
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With 2 million
crowd sourced
price reports a
day, GasBuddy is
the primary source
of retail fuel prices
in the US &
Canada
Access to a scaled
audience with 12M
MAU’s generating
over 44 million
users session per
month
Monetization is
focused on
impression based
digital banner ad
market
Legacy Utility - Unlocked Potential
AdsAudienceUtility
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Source: NACS, Digital Commerce 360
Fuel & Convenience Retailer Market
50% bigger than U.S. E-Commerce
$600BConvenience &
Fuel Retail
market
$395BE-Commerce
market
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The Opportunity
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The Opportunity
GasBuddy aimed to transform its
business from a fuel price utility with a
large base of users to a transactional
platform of registered customers through
payment as an innovation, influencing an
increasing consumer spend directly and
indirectly through the new GasBuddy
platform.
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Drivers who purchase fuel at one
brand
Drivers who purchase fuel at
multiple brands
Large, But Largely Brand Agnostic Market
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80%+ Drivers
Brand Agnostic
81%
19%
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Debit Card
Credit Card
Cash
I don’t Pay for Gasoline
Other
Mobile Pay
How We’re Paying for Gasoline
10
42%
*Survey with 1,016 responses from GasBuddy’s 2019 Consumer Sentiment study, Jan 2019
36%
13%
1%
5% 3%
1%
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The Obstacles
• Not payments for the sake of payments
• How would we fund that discount?
• Acceptance
• Mobile payments vs. Card
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A Path to Payments
GasBuddy uses Plaid
to verify that our users
are linking an active
bank account and that
we are able to transact
with them
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GasBuddy uses
Dwolla, to securely
connect bank and
credit union accounts
to facilitate payments
Pay with GasBuddy
runs on the WEX
payment rails at 95%
of gas stations
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The Risks
• Building a consumer based product (B2C) on top of a Fleet product (B2B)
• As an ACH program, how will we protect ourselves from fraud (NSF)?
• Mobile Payments have been very slow to gain traction in the US
• Merchant data quality
• Idempotency
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● Pay with GasBuddy® is the first-of-its kind
gasoline savings program giving U.S. drivers a
discount on every gallon of gas they pump
● The program is free to join and gives drivers 5¢
off every fuel purchase
● Pay with GasBuddy® works at 95%+ of stations
nationwide, is completely secure with no credit
application required
Pay with GasBuddy
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If we build it, will they come?
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Pay with GasBuddy
Soft Launched September 2017
● 625K+ Enrolled users
● $355M In fuel purchases
● $9.8M In savings passed to users
● 12M+ cardholder transactions
Payments Innovation Pays Off
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Mobile Payments at the Pump
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From Utility Users to Frequent Transactional Customers
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GASBUDDY APP
Find the Cheapest Gas
PAY WITH GASBUDDY
Never Pay Full Price
for Gas
GASBACK
The Free Gas App
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40:1When A User
Becomes A Customer, Everything Changes
• Measured across all user behaviors, when a GasBuddy user becomes a Pay with GasBuddy customer their engagement and value dramatically increases
• 75% of GasBuddy’s membership enrollments come from Pay With GasBuddy users
• More than 80% of GasBuddy’s GasBackearners are Pay with GasBuddy users
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Key Takeaways
● Consumers are brand agnostic at the pump. If you have the ability
to target them with discounts on the way to the pump, it will
influence their decision on where to fuel up.
● Innovation in a fragmented space: think of creative paths to growth
instead of going along with the crowd.
● Payments innovation relies on strong partnerships. Find partners
you can trust and that can scale with you.
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Questions
Mark Coffey
EVP - Head of Strategic Partnerships