Why Regulation will Ignite Innovation in Travel PaymentsPresented by:

John Chaplin, Ixaris Systems Ltd

Xavier Ginesta, Voxel Group

John Howell, Multicom

New Payments Regulation &Impacts on the Merchant

Confidential and Proprietary Information | © 2013 Ixaris System Ltd

What is happening

• Regulators increasingly intervening in payments– Concern about average payment costs– Industry structure prevents efficiency gains being shared– Difficult for new market entrants to have success– Retailer abuse of surcharges in some cases

• EU is leading the charge and national regulators are following - major proposals announced in July, if approved, implementation 2014-16

• Card schemes continue to make new rules– Especially in customer data protection– Rules apply to banks but merchants

are affected

Confidential and Proprietary Information | © 2013 Ixaris System Ltd

July EU proposals that impact merchants

• Interchange rates to be capped at lower levels, especially for credit

• Plan to harmonise domestic and x-border rates

• Card acquirers to be allowed to operate pan-Europe at lowest cost

• Merchants can make separate decisions on accepting debit and credit

• Merchants cannot surcharge debit or credit

• Acceptance of commercial cards and T&E cards is optional and surcharging is allowed subject to limits

Confidential and Proprietary Information | © 2013 Ixaris System Ltd

The likely outcomes of EU proposals

• Proposals could be scaled back as total package is large and complex, and timing may slip

• Pan-European card acquirers will develop

• Transaction charges to merchants will drop but

– Consumers will have to pay higher fees

– Some of the reduction will be clawed back by higher service and scheme fees

• Enforcement of no-surcharging rules because of consumer pressure

• Some unexpected consequence is inevitable

Confidential and Proprietary Information | © 2013 Ixaris System Ltd

What it means for the pre-paid industry

• However the EU changes happen, some directions are clear

• Charges for payments are more likely to be explicit

• Products and services will have to deliver real benefits to users to justify charges

• Prepaid is the best payments platform on which to innovate and new market entrants will be key

• Not keeping up with regulation changes is a bad option

Thank you!

Streamlining the Invoice Settlement Cycle

Voxel Group. Facts & Figures

400+ Travel operators worldwide, including most major US, UK and German operators Present in 40+ countries and Market leaders in major leasure tourist destinations such as Spain, France, Italy, Portugal, Greece, Turkey, Caribbean, etc.

EUR 30B+ Total amount of invoices processed in 2013

20.000+ hotels and other tourist suppliers worldwide

50.000.000+ electronic transactions handled per year

Top 3 Reasons Why Invoices Are Necessary

Avoiding overpayments11

VAT refund regulations22

Good corporate governance33

Top 3 Challenges with Invoice Settlement

Invoice processing costs11

Cost of international wire transfers22

Administrative costs and risks33

Streamlining the Invoice to Pay Cycle

Hotel1

Head Office

Hotel2

Hoteln

baVelManager

baVelManager

Central Servers

...

1 2 3 4 5

Travel Operator

7

6

9 8

Conclusions

The combination of ebilling and VCC payments retains the advantages of waiting for an invoice prior to issuing a payment while:

Virtually cuts down to 0 the invoice processing costs11

Eliminates costly international wire transfers22

Eliminates risks and administrative costs33

Effectively turns a costly procedure into a revenue stream generator

44

Thank you!

World Travel Market 2013Date: 5th November 2013

Multicommerce

• Who are Multicom?

• What do we do?

• Multicom’s FindandBook™

• WebVoyage

• PowerSearch

• MultiCommerce

• Why should you talk to us?

• Recognised UK market leader

• Reliable scalable technology

• Technology that will grow your business

Multicommerce

• What is PCI/DSS?

• Why is it important to you?

• Customer confidence

• Fines and increased service fees for non-compliance

• Increased security

Multicommerce

Ok so what will I need to change to be compliant?

• Anything that uses or has access to card information

• All websites that are bookable

• Desktop selling systems

• Mid and back office systems

• Staff training

• Paying product suppliers (airlines, hotels etc)

• All your IT providers that handle cards must be compliant

Multicommerce

Your business is to sell more travel to your customers

Our business is to provide the best technology to grow your business

So How can we help you grow your business?

• Flexible dynamic packaging

• Global travel marketplace

• Enterprise ecommerce platform

• Strong partner network

• Secure clever payments system

Multicommerce

Do you want help keeping on top of regulations like PCI/DSS?

Do you want to grow your company sales or move into new product areas?

Are you looking to make efficiency savings in terms of reconciliation or card fees?

Then come and see us on stand TT258 where we are co-exhibiting with Ixaris!

Thank you!

www.ixaris.com