intuit gopayment•u
TRANSCRIPT
people
GoPayment•UMobile Payment Solutions for College Students
Intuit Proprietary & Confidential
Team GoPayment•U
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Agenda
• Problem & Hypothesis
•Campus Currency
•GoPayment•U Product Overview
•Case Studies & Light Experiment
•Market Analysis
•Conclusion
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Agenda
•Problem & Hypothesis
•Campus Currency
•GoPayment•U Product Overview
•Case Studies & Light Experiment
•Market Analysis
•Conclusion
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Problem Statement & Opportunity
• Problem– Sellers who want to accept credit
cards cannot do so because students don’t carry their wallets on campus.
– Students want to pay with a form of currency held on an campus ID card but this kind of currency is not universally accepted.
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Opportunity for GoPaymentEnable GoPayment to accept campus currency
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Size of the Problem
99% of students have a credit/debit card but only 13% of students carry a credit card on campus
100% of students have an ID card and 97% carry it with them on campus
37% of students who would like to sell goods on campus do not do so because “[other] students don’t carry credit/debit cards”
60% of students would likely or definitely use Claremont cash to buy things from other students
*Source: Survey of 173 students at the Claremont Colleges
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Value Hypothesis
Making GoPayment compatible with campus
currency will bring GoPayment to college
campuses and allow trade among students
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Agenda
• Problem & Hypothesis
•Campus Currency
•GoPayment•U Product Overview
•Case Studies & Light Experiment
•Market Analysis
•Conclusion
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ID Cards & Campus Currency
• Usage of ID Cards–Open doors– Access meal plan – Purchase goods and services with closed-loop debit functionality
• Problems with Campus Currency
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For the buyer
–Campus currency is not universally accepted
–Students cannot use campus currency to purchase goods from each other
For the seller
–Equipment costs• $1,500-4,000 up front or a $40
month rental fee–Transaction Costs• 1-3% for University
organizations and students groups
• 5-8% for off-campus merchants–No mobile payment solution
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How Campus Currency Works
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Who is Blackboard?
• Blackboard is a private company that provides software for:– Course management – Facility access– Campus currency
• $447M annual revenue (2010)
• 12,700 institutions use Blackboard software
• 465 institutions use Blackboard for campus currency (as of 2009)
• Operates mostly in the US and Canada
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Individual students
Student organizations
Student Government
The University
The Library
Dean of Students Office
On-Campus Cafes
Off-Campus Merchants
Cafes
Restaurants
Convenience stores
Potential Sellers
Students
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Agenda
• Problem & Hypothesis
•Campus Currency
•GoPayment•U Product Overview
•Case Studies & Light Experiment
•Market Analysis
•Conclusion
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How GoPayment•U Will Work
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• GoPayment should be able to read the financial data encoded in the CX numbers of track 2
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Track 1: Dining Hall servicesTrack 2: Financial dataTrack 3: Facilities access
Campus ID Tracks
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Agenda
• Problem & Hypothesis
•Campus Currency
•GoPayment•U Product Overview
•Case Studies & Light Experiment
•Market Analysis
•Conclusion
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Case Study: Student Government
• Who:– Student government is a group of elected student representatives– This group subsidizes events and sells tickets, t-shirts, and other
goods but currently cannot accept Campus Currency
• Problems they face:– Blackboard hardware costs are too high– Blackboard hardware is not mobile– Students rarely carry cash, eliminating the possibility for
spontaneous transactions–Other options: Google Checkout: “A nightmare!”
• Opportunity for GoPayment– GoPayment can solve all these problems
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Light-Weight Experiment
• Experiment 1: – Task: We asked the CMC student government to use GoPayment to
sell t-shirts. – Results: $867 across 48 transactions– Insights: “This GoPayment is fantastic, we have to find a way to
allow people to use Claremont Cash with it” –Student Life Chair
• Experiment 2: – Task: We asked Resident Assistants to use GoPayment to raise
money for staff gift – Results: Collected $175 across 15 transactions– Insights: Students who used their credit cards donated on average
$5 more than those who used cash
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Agenda
• Problem & Hypothesis
•Campus Currency
•GoPayment•U Product Overview
•Case Studies & Light Experiment
•Market Analysis
•Conclusion
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Market Size Estimations
• Approximately 15M college students spend $280/year of campus currency per student = $4.2B charge volume
• Assuming 10% market penetration, Intuit will process $420M in payments, resulting in an annual gross revenue of $10.5M
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Potential Partners and Competitors
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BlackBoard CBORD
Nuvision Networks
ITC Systems
Heartland Payments
GoPayment U
Total estimatedannual revenue
$480M ( ) ( ) ( ) $1.99B* $10.5M
Primarily an ID card business?
No Yes Yes Yes No No
Primarily for Universities? Yes No Yes Yes No Yes
Estimated number of schools
450 2000 ( ) ( ) 150 300
In mobile payment business?
No No No No Yes Yes
Likely competitor? No No No No Yes /
* $5.7M for card business
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Agenda
• Problem & Hypothesis
•Campus Currency
•GoPayment•U Product Overview
•Case Studies & Light Experiment
•Market Analysis
•Conclusion
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Next Steps
• Product Changes– Hardware: Modify the GoPayment reader to read the financial data
housed on track 2 of the ID Card– Software: Modify the gateway to process the financial data
• Partnership Opportunities– Partner with Blackboard and other companies that process campus
currencies
• Pilot Programs– Initiate Pilot projects at two types of universities1) A large urban university (Ex: USC, UC-Berkeley)2) A small liberal arts college (Ex: Amherst, Williams)
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Intuit is Positioned to Win
• Intuit has the technology–Most of the technical work required to make this possible has
already been done for GoPayment
• This is a niche market– ID card companies are not focused on mobile solutions–Mobile payment companies are not focused on universities
• This is the right time– Intuit would be the first to bring mobile card readers to universities– Introduces GoPayment to college students and familiarizes them
with other Intuit offerings
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