irish internet association portlaoise – october 2006
TRANSCRIPT
Irish Internet AssociationPortlaoise – October 2006
Introduction
• Colm Lyon• Founder and MD of Realex• Chairman IIA
Agenda
Enabling your site for eCommerce
Some local e-players
•46,000 of 63,000 applications online.
•35,000 paid with laser/credit card.
•40,000 change of minds! 83% online.
•Massive reduction in paper.
•Vacant Places Courses – from a week to a day.
•June 2002 – it all began.
•76% Online bookings.
•1m Passengers in 2004 over 25 routes (62% Inc).
•500 flights a week, 15UK, 5 Local, 3 French.
•Open Skies Platform.
•Aux revenue and partners – hotel, insurance, car
•$160 on new planes.
•Huge turnaround in processes.
•75% of bookings online (77%/78% in Q3). 3% 2001.
•Local payment methods/languages.
•Multiple systems/suppliers involved.
•Sales – 1,000 bookings an hour.
•Non web advertising reduced dramatically.
•Email alerts of 30,000.
•Search Engine Optimisation (SEO)
•Dynamic Currency Conversion.
•Cross Selling – Aux Revenue.
•1996/7 – 80/90% sales via travel agents.
•Feb 2000, 20% online in 2/3 months.
•2005 – 35m Passengers from 4m in 2000
•98% online bookings – peak 16,000 hour.
•Scale – site itself is a revenue centre/asset.
•Open Skies Platform.
•Aux revenue - hotel, insurance, car – 16%
•Excess of 1m email addresses.
•Live since march 2004.
•In excess of 70,000 renewals per month.
•Jan to Aug 2004 – 29% completed online.
•August 31% - rising steadily.
•Dublin 46%, Donegal/Longford 12%
•Verified by Visa/SecureCode.
•First time tax – on way.
•Change of ownership tracking.
•Established 1997, based in Kerry.
•Third largest player in market.
•Royalty Free Stock Photo.
•70 countries across the globe.
•40% North US.
•Now sold for $135m.
•Established in 2000.
•Niche player – 10% of Irish Market.
•Great success in UK market.
•9,000 passengers in 2005.
•22 routes, 6 countries, 34 resorts, 170 properties.
•Raised €3m recently to fund UK Sales.
•White Labelling – OPODO and Aer Lingus.
•Certain insurance will not sell well online.
•Issues around immediate cover and negotiation.
•Health Insurance
•Travel Insurance.
•Develops online e-estate.
•Cross sell auxiliary goods and services.
•Citizen to state payments – large market.
•Local and central governments departments.
•Over 40 public depts accepting payments online.
•CRO, Comreg, RPA, State Exams, Passport Office.
•Driving Test, Motor Tax, Fisheries Board, FAS
•County & Town Councils
•Kilkenny, Carlow
•Cashel, Clonmel, Dun Loaghaire/Rathdown.
•Dungarvan, Donegal, Laois, Mayo, Offaly, Sligo
•Waterford, Tipperary, South Dublin, Westmeath
•Wexford, Cavan, Monaghan.
•Traffic and Parking Fines.
•Waste/Bin Charges.
•Environmental
•Rent.
•Loan Repayments.
•Planning.
•Selling goods and top ups online.
•Highly liquid good – pre paid customers.
•Real time analysis of data.
•Highly automated risk management.
•Online gaming and gabling.
•Racing, sports, Poker, Casinos.
•One of the biggest online markets.
•Betting exchanges – betdaq (IFSC).
•Spread Betting, Futures
•Merging of Financial Instruments and gambling.
•Best singer/song writer yet!
•Global fan base.
•Distributes MP3 files of music to fans.
•Sells CDs & tickets online.
•Turnover 300 sales in a day following a email.
•Local – Galway based trader.
•Extended reach via internet to global market.
•Sales may need a personal touch.
•Example of reinforcement of traditional sales.
•Hand written card, personally from Des!
•Email address and direct phone number.
•Online Donations
•30 Charities processing online payments.
•January – in excess of €1m a day.
•Extremely important channel.
•Doubling of new merchants trading in 6 months.
•1 Customer in 2001, 20 in 2002, 1,000 in 2005.
•1,500 – June 2006
•Excess of €3b annual online trade.
•Risk/price is reducing.
•From local eBusiness to global eCommerce.
Market Developments
• €m per day being traded online.• Growth is strong – every month.• Across all sectors/sizes.• Positive outlook and expectation.
Market – Scale• £5b in UK over Christmas – ten week
period, up 50% on 2004.• Internet shopping 9% of retail purchases.• 24 million people spending an average of
£208.• Retail market – sluggish – up 2.6% in
December.• Overall 2005 eCommerce grew by 32% to
£19b.
Enabling a site for eCommerce
Merchant
• What’s the business objectives?
• Sell more?• Connect more?• Streamlined processes?• Project a new
brand/image?
Enabling a site for eCommerce
Merchant
• Style, content, brand.• Shopping Carts/Stock.• Language Versions• Search Engines, email,
marketing.• End to end processing and
integration. • Site needs to be capable of
processing payments.
Credit Cards
• Merchant Services Agreement – provided by bank.
• Gateway - Connection to bank for authorisation and settlement – usually via a Payment Services Provider.
Merchant
Credit CardsCredit Cards
• Others! – single solution Others! – single solution provider – suits early stage provider – suits early stage company, costs and company, costs and settlement times.settlement times.
• Bank and Realex – two Bank and Realex – two independent contracts – the independent contracts – the best of both worlds!best of both worlds!
• Technical integration Technical integration completed by web developer.completed by web developer.
Merchant
Merchant ContractMerchant Contract
• Acquiring BankAcquiring Bank• Turnover/OverdraftTurnover/Overdraft• Risk Assessment – Percentage Risk Assessment – Percentage
FeeFee• Liability rests with merchant in Liability rests with merchant in
the Internet Market.the Internet Market.• Limits imposed by BanksLimits imposed by Banks
Merchant
Safety Issues
• Security – a significant and real issue – requires decisions and management - PCI.
• Secure server certificate.• Encryption and retention of
data. Where the data is stored and who has access?
• User experience.• Policies – privacy, refunds etc.
Merchant
Easy to Implement!
• Option 1 – redirect the cardholder to a secure page with the payment processor.
• Option 2 – secure your own site and collect card details and submit to the processor.Merchan
t
Easy to Implement!
• Option 1 – redirect the cardholder to a secure page with the payment processor.– Branded the same as the rest of
your pages;– No card numbers;– Watch SSL flag;– Use of frames.
Merchant
Easy to Implement!
• Option 2 – secure your own site and collect card details and submit to the processor.– Card holder stays on your site;– Background request;– Deeper integration – more
control.Merchan
t
Other Issues
• Fraud – scoring options• Verified by Visa• MasterCard SecureCode• Online Reporting• Dynamic Currency Conversion
And finally…
Thanks for listening…
Sd secure process
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