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First Ecom Global E-Payment Processing http://www.firstecom.com

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First Ecom. Global E-Payment Processing http://www.firstecom.com. E-Commerce. E-commerce boom started in 1998 Yahoo, Amazon.com, eBay, etc Only the U.S. is participating in this boom Explosive growth expected in Asia Major limitation is lack of processing - PowerPoint PPT Presentation

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Page 1: First Ecom

First EcomGlobal E-Payment Processing

http://www.firstecom.com

Page 2: First Ecom

E-Commerce

• E-commerce boom started in 1998

– Yahoo, Amazon.com, eBay, etc

• Only the U.S. is participating in this boom

• Explosive growth expected in Asia

• Major limitation is lack of processing

capabilities, multiple currencies

Page 3: First Ecom

E-Commerce Worldwide

• According to Forrester Research:

– Currently valued at US$12 billion

– Expected to be US$1.1 trillion by 2002

Page 4: First Ecom

E-Commerce in Asia

• According to Goldman Sachs:

– End of 1998, 15 million Internet users and an e-commerce market of $700 million

– By 2003, 64 million Internet users and $32 billion in e-commerce sales expected

– Twice the growth rate expected in the U.S. during the same period

Page 5: First Ecom

Internet Evolution

• Phase I– Static web site - Glorified Brochure

– Marketing Driven

– HK$ 78K - 390K

– US 1995/96

– Europe 1997/98

– Asia 1997/98/99

Page 6: First Ecom

Internet Evolution

• Phase II– Moving from static to basic interactivity

– Content becomes more important

– Marketing & IT driven

– HK$ 390K - 2.0M

– US 1997/8

– Europe 1998/99

– Asia 1999

Page 7: First Ecom

Internet Evolution

• Phase III– Fully interactive web site– Revenue source - ROI– Requires new business model– Driven by Upper Management– HK$2.0 Million+– US 1999– Europe 2000– Asia 2000/2001

Page 8: First Ecom

Challenges

• Lack of online credit card processing capabilities in Asia and Europe

• Banks missing E-commerce processing partner

• Internet penetration still low

• Perception of security risks

Page 9: First Ecom

Positioning Statement

“First Ecom provides a global, secure, easy to implement,

low cost, electronic payment processing gateway.”

Page 10: First Ecom

Why First Ecom?

• Idea developed out of necessity

• Tremendous pent-up demand in the market

• Many different disciplines came together to create the First Ecom concept

Page 11: First Ecom

Why First Ecom?

• Solutions for both banks and merchants

– Offshore Payment Processor

– 3rd Party Processor

– In-Country Processor

Page 12: First Ecom

Bank ofBermuda

(Acquirer) First Ecom PaymentGatewayFirst Ecom -

Master Merchant

Approval /Due Diligence /Merchant Account /Money Transfer /Merchant Service

CardNetwork

CardIssuers

Shopping /Payment

Offshore Payment Processor

Cardholder

Internet

MerchantMerchant

Cardholder

Page 13: First Ecom

• Key Benefits to Merchant– Quick time to market

– Multi-currency support

– Tax neutral jurisdiction

– Easy to implement

– Low cost

Offshore Payment Processor

Page 14: First Ecom

MerchantAcquirer

First EcomPaymentGateway

Approval /Merchant Account /Settlement /Merchant Service

CardNetwork

CardIssuers

Shopping /Payment

3rd Party Processor

Cardholder

Internet

MerchantMerchant

Cardholder

First EcomProcessor

3rd Party Processor

Page 15: First Ecom

• Key Benefits to Acquiring Bank– Quick time to market

– Bank retains control on merchant evaluation, selection, and pricing

– Minimal modifications to merchant operations

– No modification to Bank Credit Card System

– Transparent to merchant

– Easy to implement

– Low cost

3rd Party Processor

Page 16: First Ecom

In-Country Processor

MerchantAcquirer

First Ecom PaymentGateway

Approval / Merchant Account /Settlement / Merchant Service

CardNetwork

CardIssuers

Shopping /Payment

Cardholder

Internet

Merchant Merchant

Cardholder

First EcomProcessor

POSMerchant

POSMerchant

TraditionalChannel

E-CommerceChannel

In-Country Processor

Page 17: First Ecom

• Key Benefits to Banking Consortium– Zero cost for system development

– Member Bank retains control on merchant evaluation, selection, and pricing

– No modification on Member Bank Credit Card System

– Transparent to merchant

– Support of local credit & debit authorization

– Support of local clearing and settlement

– Provides EBPP capability

In-Country Processor

Page 18: First Ecom

Purchase Process5) Purchase Confirmation sent to buyer

2) Merchant sends Order Form to buyer with order details

1) Buyer browses Internet & adds items to shopping cart

3) Completed Order Form & card details sent to Gateway

4) Authorization detailssent to MerchantInternetWeb user

(Buyer)

MerchantWeb Site

First EcomGateway

Page 19: First Ecom

Process First Ecom

PaymentNetwork

Issuing Bank

Inquiry routed back with authorization/rejection

First Ecom

Sends to payment network via payment switch

Payment Network (Visa Net/I.Net etc.) routes inquiry to issuing bank

Page 20: First Ecom

Authorization Advice

Online to Merchant

Via Secure Email to

Merchant

Merchant Account

Reporting System (MARS)

First Ecom

Page 21: First Ecom

MARS

• Accessible via Internet• View transaction history and records• Secure access• Four functions:

– Authorization– Settlement– Cancellation– Refunds

Page 22: First Ecom

Merchant Payment Process

Bank of Merchant

Money available to Merchant in chosen currency

Bank

Card Association pays the money into the Bank

Payment Network

Issuing Bank

Funds are deducted from the Buyer’s card by the issuing bank

Money deposited inmerchant account

S$US$ HK$ £€¥C$

Page 23: First Ecom

Secure Sockets Layer (SSL) versus

Secure Electronic Transaction (SET)

Page 24: First Ecom

SSL vs. SETCharacteristic SSL SET

Additional Cost Involved No Yes

Vendor Software Needed No Yes

Time Consuming No Yes

Difficult to Use No Yes

Widely Adopted Yes No

Industry Standard Yes No

Installed on Most Browsers Yes No

Who Needs It Only ISP/website

Every party involved

Page 25: First Ecom

Security

• Online Authorization using SSL with 40 – 128 bit encryption – prevents card fraud

• Content authentication and encryption: OpenPGP (RFC2440) - prevents buyer fraud

• The credit card number is not disclosed to the merchant - prevents merchant fraud

Page 26: First Ecom

Partnerships

• Expert Web

• FedEx

• HKSite

• HLB

• Inter-Merchant

• Intershop

• Microsoft

• Modem Poppe

• Sterling Commerce

• Sun Microsystems

• Sybase

• Topsoft

• USWeb/CKS

• UUNET

Page 27: First Ecom

Goal

For Asia to fully participate in the e-commerce revolution

sweeping the world.

Page 28: First Ecom

First EcomGlobal E-Payment Processing

http://www.firstecom.com