ukash mdays - don't forget about cash!
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www.ukash.com www.ukash.com
Mdays
Don’t forget about cash!
Paul Coxhill
Ukash Marketing Director
www.ukash.com
What is Ukash?
• Ukash is pure electronic money – it is cash for the digital age
• You get it by swapping cash for a Ukash voucher in a store, from your bank account online or at an ATM
• Ukash is delivered, secured and identified by a “one time use” 19 digit code
• Just like cash, if the amount tendered is higher, then a new code is given as “Change”
• It is not necessary to register or identify the person (within limits)
• Ukash can be used for payments and to reload prepaid cards and e-wallets
• Ukash is simple, universal and inclusive
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In stores you use cash.
Online you use Ukash!
www.ukash.com
Ukash usage is growing fast
Voucher redeemed every
3 seconds
Over €500m transactions p.a.
Over 85% growth in
transactions p.a.
420,000 global cash-in
locations
Over 70 retail distribution
partners
5,500 websites accept Ukash
payments
300,000 registered users
www.ukash.com
Australia
Live Countries
1. UK
2. Spain
3. Ireland
4. Germany
5. Netherlands
6. Poland
7. Sweden
8. Russia
9. France
10. Belgium
11. Slovenia
12. South Africa
13. Portugal
14. Australia
15. Italy
16. Cyprus
17. Uruguay
18. Canada
19. Ukraine
20. China
21. Norway
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22. Switzerland
23. Bolivia
24. Colombia
25. Mexico
26. New Zealand
27. Morocco
28. Algeria
29. Egypt
30. Tunisia
31. Libya
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32. Saudi Arabia
33. Yemen
34. Oman
35. UAE
36. Qatar
37. Bahrain
38. Iraq
39. Kuwait
40. Syria
41. Lebanon
42. Palestine
43. Jordan
44. Austria
45. Israel
46. Ghana
47. Nigeria
48. Malaysia
49. Argentina
50. Brazil
51. Hungary
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Where do we operate? Over 50 countries in 6 continents
www.ukash.com
Ukash Use Case 1 - The “e-tail excluded”
No formal mechanism to pay online – Ukash enables notes and coins to be used to pay
• There are 2.7bn unbanked consumers globally (Source: World Bank)
• In the UK, 1 in 12 households (2.8 million UK adults) have no bank account (Source: Citizens Advice Bureau)
• In Central/Eastern Europe, low credit card penetration and poor bank payment card infrastructure enables alternative payments to
thrive
• During the recession the use of cash has accelerated with over €840bn in circulation in the EU (Source: EFMA)
• "Reports of the death of cash are premature. Cash is not only alive, it's thriving” (Stephen Robertson DG – British Retail
Consortium)
Therefore, enabling cash consumers to transact online is a clear commercial opportunity
www.ukash.com
Ukash Use Case 2 - The “e-tail uneasy”
Don't want to use card online – Ukash vouchers have 10 billion unique combinations
• 90% of consumers fear online fraud (Source: Shopsafe). Cebr predict the e-commerce fraud will grow from £165.2m in 2011
to £195.3m by 2015 – registering annual growth of 4.3%.
• 50% of consumers don’t shop online due to fear of fraud (Verisign). Just 31.3% of the 55+ group shop online compared with
73.4% of 35-44 year olds (Verdict)
• Verdict estimates in the UK alone over £1bn in retail sales is lost through poor conversion on websites, including lack of
payment options
• Global Collect research demonstrates an uplift in conversion of over 20% when 4 or more payment methods are available
• Whilst CNP fraud is declining in some markets due to 3DSecure, the consumer experience is negatively affecting conversion
(eConsultancy)
• There is an increasing mismatch between consumer demand and merchant acceptance with over 50% of consumers using
alternative payments but only 1/3rd of merchants accepting them (Source: Javelin)
This presents an opportunity for payment options that protect user identity
www.ukash.com
Ukash brings benefits to redemption partners
• Ukash vouchers are redeemable at over 5,500 global brands including:
• Our website partners gain a number of benefits by accepting Ukash:
– Immediate access to cross-border trade in 6 continents through one integration
– No chargeback risk due to vouchers being prepaid
– A global network of 420,000 cash collection points
– Referral business through the free-listing of the website at www.ukash.com
– Marketing opportunities at Point of Sale, online and by leveraging the voucher capability to send
discounts, free credits and payouts to their users
www.ukash.com
How we fit in the mpayments landscape
PSMS
WAP Billing
Payforit
In App
Alternatives & mWallets
Card Payments – Global and local acceptance brands
www.ukash.com
Domestic
Cross-Border
Informational
Transactional
Location based
Contactless (NFC)
Mobile Money
Transfers (P2P)
Mobile
Banking
Mobile Payments
(Proximity)
The core areas of opportunity for mobile financial services
Mobile Payments
(Remote)
Price comparison
Promos & Offers
Ukash is focussed on the latter 3 areas of opportunity in particular
www.ukash.com
Ukash can support the mobile value chain
• Getting cash digitised
• Reload of wallets – e.g.
PayU in South Africa
• Supporting mobile transfer –
through our app
• Enabling consumers to pay
on a mobile site – e.g.
games and gaming sites
www.ukash.com
How we see the mPayments landscape Category PSMS / WAP /
Payforit iTunes / Android / RIM
Ukash PayPal Cards
Merchant considerations
Cost of £10 deposit
Up to £3 (30%) Up to £3 (30%) Circa 60-75p (6%-7.5%)
60p (3% + 30p) Circa 30p (2% + 10p)
Ease of conversion
High – very easy to deposit
High – very easy via app store
Medium – easy, but 2 stage
Medium – simple login to deposit
Low – Tricky data entry + 3DS
Settlement Terms
Up to 90 days Up to 90 days Up to 30 days daily daily
Charge-backs Will claw back losses
Unclear 100% guaranteed Chargeback's possible
Chargeback's possible
Consumer considerations
Ease of deposit (Convenience)
High – very easy to deposit
High – very easy via app store
Medium – easy, but 2 stage
Medium – simple login to deposit
Low – Tricky data entry + 3DS
Availability High – 100% of devices
Mid – Only relevant to 50%
High – 100% of devices
High – 100% of devices
High – 100% of devices
Trust Low –concern about repeats
High – App Stores now well trusted
High – but based on low awareness
High – based on high awareness
Mid –ID theft & fraud concerns
Payouts None – requires other options
None – requires other options
Strong – Card, PoS, ATM, PO
Strong – Card, bank a/c
Mid – VISA OK, others vary
www.ukash.com
We have developed a Ukash app
www.ukash.com
Consumers can add funds
www.ukash.com
And Send Funds
www.ukash.com
Future Opportunities with Ukash
• Ukash from Mobile Airtime
– Working with BT, Dialogue & MNO’s
– Using payforit in UK
– Taking responsibility for:
• Faster settlement
• Lower cost
• Guaranteed payment
• Ukash mWallet transfers/payments
– Currently iPhone only and P2P
– Coming Soon
• Android & RIM
• Direct transfer to Merchant
• Direct payout from Merchant
• Direct top-up of UkashOut Card
