Charging and billing (C&B) Traditional payment systems US market - Value and volume of payments

Similar documents
Charging and Billing (C&B)

Time: 3 hours. Full Marks: 70. The figures in the margin indicate full marks. Answer from all the Groups as directed. Group A.

DEMYSTIFYING DIGITAL PAYMENTS

Our Membership background. General Offering Breakdown

Our Membership background. General Offering Breakdown

Pay Now Prices valid from 01 October 2018 until 30 September

2005/2006 Study of Consumer Payment Preferences. Table of Contents

Telecoms Network Management, Services and Billing. T Based on Kirsi Valtari's slides

THE DIGITAL FIRM: ELECTRONIC COMMERCE AND ELECTRONIC BUSINESS

Direct Operator Billing

E-Business & E-Commerce

VISO BUSINESS PLAN. Token sale level Funds raised. Technologies launched. Share of Georgia s cash-desk equipment market

Higher National Unit Specification. General information for centres. Unit code: DV6F 34

Chapter by Prentice Hall

Executive Guide. Strategically Managing Your Company s E-Commerce Capability. E-Commerce: Business transacted over the Internet.

hylabs Y o u S e l l, W e G u a r d Credit Card Fraud Prevention Risk Management Solution

Fundamentals of Information Systems, Seventh Edition

OceanPay. OceanPay Visa Prepaid Card. OceanPay Wire Services. Frequently Asked Questions

E- Publishing: Successful e-commerce efforts to e- publishing online newspapers and independent and independent publication through the internet.

Supporting Local Businesses

The Digital Firm: Electronic Business and Electronic Commerce by Prentice Hall

Treasury Management Guide

PAYBOX E-COMMERCE / CNP SOLUTIONS TEST PARAMETERS

CHPATER 04 E-PAYMENT MBA 61062: ELECTRONIC COMMERCE MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 1

Model paper-i Exam-2016 Paper-E-Banking BCA-III

Telecm services, accounting and billing

E-Money in Russia. Legislation and practice. Jane Zavalishina, CEO Yandex.Money

Visa Inc. (V) Ariel Benton Financials Analyst. Theo Harrison Financials Analyst. November 7, 2017

Expanding to New Verticals

Fundamentals of Information Systems, Seventh Edition

Tribhuvan University Institute of Science and Technology 2068(I)

BILLING PROCESS MANAGEMENT BILLING PROCESS MANAGEMENT PLATFORM

Evaluating Processing Infrastructure, Support & Costs

Verifone e-commerce Solutions CNP / e-commerce Test parameters. Version 8.0. Verifone Solutions Paybox CNP / e-commerce Test Version 8.

Mobile Financial Services : Perspectives with Agent Networks

PAYMERICA. by JEANNIE TACKETT AND LEO KALIPS

Product. LynxGate Build Member Relationships With a Powerful, Secure, Real-Time Transaction Solution

Treasury Management Solutions

My Commuter Check Employee Quick Guide

e-commerce WEEK7 Learning Objectives

Minimizing the Impact of EMV & Churn on Your Subscription Business

PCI FAQS AND MYTHS. Presented by BluePay

The Commission Card is a Direct Selling Company branded VISA debit card issued by Money Network.

Electronic Banking (E-Banking)

Presentation by: Supichaya Smerchuar

Commuter Benefits Overview. Why Commuter Benefits? How Does the Program Work? Let s get started!

EMV THE DEFINITIVE GUIDE FOR US MERCHANTS AND POS RESELLERS

Overview of Electronic Commerce

ESSENTIALS OF E-COMMERCE (UNIT-2) PROCESS OF ELECTRONIC TRANSACTIONS AND THE INDIAN PAYMENT MODEL

Banking Technology in India 2017

Procedural Guidelines RuPay QR code

BSS/OSS Integration. Presented by Rex Rogers V.P. of Information Services

/ Questionnaire: The 70+ questions every MVNO/MVNE should answer

Electronic Banking Bonanza

What Do Merchants Need to Be Successful Online?

Payment Gateway Overview. Get familiar with credit card processing & our platform

Ken Sinarski BC Worsley Devin Herod

10+ M EFTPOS TERMINALS M Software Solution TransLink.iQ OPERATIONS PER MONTH WITHIN OUTSOURCING PROJECTS

QIWI in figures. Established in over $14 bln. turnover in mln. of unique monthly users of payment collection points

Emerging Payments The Changing Landscape

STAR Network Overview

Dear Valued Member, Sincerely, Jerry Jordan President & CEO CGR Credit Union

E-Debit International Inc. Introduction to Transaction Processing. Basic Overview of our Payment & Processing Systems 08/13

Frontier Agents Learning Agenda Oxigen India Case Study Focus on Deployment Models. Vartika Shukla Pablo Garcia Arabehety June 2017

Payment Exchange. An introduction. 26-May-15. In Commercial Confidence

B.V. Patel Institute of Business Management, Computer & Information Technology, Uka Tarsadia University

Experience and its Comparison with Korea and China. Research Center for Advanced Science and Technology University of Tokyo

Oklahoma Universal Service Fund (OUSF) Fiscal Year 2017/2018 Remittance Worksheet Instructions

5 Selling Products. From Code to Product gidgreen.com/course

5 STRATEGIES TO BOOST YOUR RETAIL SALES

My new Apple device will have a payment feature. How do I set it up?

Gift & Loyalty Cards

Mobile Money in Jamaica. Kavin Hewitt CEO MCONEC Mobile Payment Services

Card Present. User Guide for Resellers

Virtual Terminal Plus Product Insights for Merchants and Sales Offices. A virtual terminal that does virtually everything"

A New Representative Standard for Online Research

E Commerce By: Vitthal Jagtap SBPCOE Indapur.

To maintain your ability to use the integrated credit card module after October 31 st, 2017 you need to choose one of two options.

Universal Payment Gateway (UPG)

The Bank of Elk River: Digital Wallet Terms and Conditions

Solutions. Card Risk Management Leverage Our Industry-Leading Solutions and Services to Fight the Rising Cost of Fraud

Sponsored by Results Report. U.S. Independent ATM Deployer Survey

Commuter Benefits Overview. Why Commuter Benefits? How Does the Program Work? Let s get started! Registration is Simple

Online Product Management (i) Business models (2h)

2018 Visa. All rights reserved.

SADAD Payment System United Nation Public Service

E-COMMERCE AND SECURITY CONCERNS A SURVEY

A2Billing, Pre-paid & Post-paid Telecom Switch and Billing Platform. Arezqui Belaïd

Enhancing SWITCHaai with Micropayment Functionality for Swiss Universities White Paper

Next. Grow. Your guide to maximising Dynamic Currency Conversion. elavon.co.uk

Financial Technology/MLM

Digital Ecosystems for Telcos

The Perimeter Guidance Manual. Chapter 15. Guidance on the scope of the Payment Services Regulations 2017

The Complete Guide to Subscription Billing

9/17/12. Chapter 4 Jeff Bezos. Learning Objectives. Where is the money B2B or B2C? Electronic Commerce. Key Capabilities: Integration

Getting Started Guide Vipps via Netaxept

Unit-4: Security Environment:

Technology Developments in Card-Based Payments WACHA Payments 2013

Enabling Financial Services for Postal Operators

Emerging Payments: The Next Step in Providing Member Convenience via Channel Expansion. Presented by CO-OP Financial Services

Transcription:

Charging and billing (C&B) S-38.041 Networking Business Slide 1 Traditional payment systems US market - Value and volume of payments Percentage share Source: U.S.Census Bureau, 2002 50 45 40 35 30 25 20 15 10 5 0 Cash Checks Other paper Credit cards Debit cards Electronic By money value By number of transactions Slide 2 1

Value()/ Transaction Traditional payment systems Finland 50 Nordea Internet bank (c. 300/tr, 4trs/month) VISA credit card (45, 6trs) 5 Cash 0.5 Mobile handset (0.3, 50trs) 15 30 Transactions/Month Role of cash decreasing very sly Mass of micropayments to be optimized Slide 3 Traditional payment systems Key features Cash Credit card Debit cards Accumulating balance Cost per transaction Merchant fixed cost User fixed cost 0 Merchant fee 0 3-5% Account required Anymous Risk for consumer limited limited Risk for merchant Slide 4 2

E-commerce Basic business sectors Business-to-Business (B2B) 90% of all e-commerce Consumer-to-Consumer (C2C) 1% of all e-commerce Business Business-to-Consumer (B2C) 10% of all e-commerce Consumer Network Public Operator Role of network operators Access and transport service provider Charging for small content transactions of consumers Slide 5 E-commerce Revenue models Revenue model Advertising Subscription Transactions Sales Affiliate Examples Yahoo.com WSJ.com Sportsline.com ebay.com E-Trade.com Amazon.com Sears.com MyPoints.com Revenue source Fees from advertizers in exchange for advertisements Fees from subscribers in exchange for access to content Fees for enabling or executing a transaction Sales of goods, information, or services Fees for business referrals Source: Laudon&Traver, 2003 Slide 6 3

E-commerce U.S. on-line payment market merchants view Debit cards 4 % Credit card by phone, fax, mail 7 % E-check 1 % Other 4 % Checks by mail 8 % Credit card online 76 % VISA has over 50% marketshare of all Internet payments (ref. Verified by VISA ) Source: Gartner Group, 2002 Slide 7 Merchant E-commerce On-line credit card process Request transaction 3 Clearing house Merchant bank 2 SSL Internet Verify balance 4 5 Issuing bank credits merchant account (batch) 1 Consumer makes purchase 6 Monthly statement with debit for purchase Consumer s card issuing bank Weakness in authentication (Secure Socket Layer Secure Electronic Transaction) High cost (0.2-0.3 per transaction minimum purchase 10) Slide 8 4

E-commerce vs. digital content Japanese on-line market wired vs. mobile in 2001 Mobile content market 110B Mobile e-commerce market 115B Mobile Internet 23% Wired e-commerce market 706B Wired Internet 77% Wired content market 32B Source: ECOM, Natsu, 2003 Slide 9 Digital content Digital wallet core techlogy Digital wallet authenticates the consumer digitally (certificates, SET, etc) stores and transfers value secures the payment from consumer to merchant Potential benefits one-stop-shopping for transactions and bill presentment user information pre-set better usability (single sign-on) real-time integration of the complete transaction chain enables payments of < 5 in Internet Two basic digital wallet approaches client-based wallet for consumers (e.g. MasterCard Wallet) server-based wallet for merchants (e.g. MSN Wallet/MS.NET) consumers resist storing personal information in servers! Successful standard missing (e.g. Liberty Alliance, 3GPP) Slide 10 5

Digital content Mobile super-distribution Operator C&B 5 DRM server Content server Legend DRM = Digital Rights Management MRV = Mobile Rights Voucher = Content path = Control path 4 3 2 MRV Content object 1 Mass delivery of legal mobile content with cost (e.g. peer-to-peer MMS) Micropayment mediation for a large number of retailers (content aggregation) Operator gets the rights clearing revenue from content retailers Usage rules in MRV control the usage of a content object (e.g. music) Mobile operator can integrate DRM with existing charging (pre/postpaid) Slide 11 Operator charging and billing Basic concepts Charging: a process where subscriber accounting information is retrieved for billing purposes Billing: generate and send a bill to subscriber based on certain tariffs Charging and billing are key components of Business and Operations Support Systems (BSS/OSS) Traditional circuit-switched charging is based on subscriber id and Call Detail Records (CDR) generated by network elements Packet-switched networks involve xdr, e.g. Internet Protocol Detail Records (IPDR) for new services such as IP telephony, public WLAN, digital cable, and content Slide 12 6

Operator charging and billing Traditional system Billing Accounting system Business & operational support processes Customers Bill Bill f f Administration module Billing module Fraud control module Customer care module Roaming/interconnect module Credit control module Rating module CDR processing module Network management Charging CDR CDR f f Mediation device Network infrastructure Slide 13 Operator charging and billing Cost breakdown example mid-size operator (3-5M subs) OPEX, billing Unit price # Total per year Comments Personnel 90000 100 9000000 Post-processing 3000000 1 3000000 Pre-paid/inter-operator? Marketing 200000 1 200000 CAPEX/billing Billing system 20000000 5 4000000 Divided over 5 years Software upgrades 20000000 0,1 2000000 10% of purchase price OPEX, charging Installation and maintenance 90000 10 900000 CAPEX, charging Charging system 4000000 5 800000 20% of billing system Software upgrades 4000000 0,1 400000 10% of purchase price CAPEX, total 7200000 OPEX, total 13100000 Total 20300000 CAPEX % of total C&B costs 35 % Source: Gartner Group, Comptel, Swan 2003 Slide 14 7

Operator charging and billing Cost analysis Total cost per bill (on paper) in traditional C&B can be several euros New features in mobile such as GPRS, prepaid, and multiaccess roaming add C&B costs significantly (30%?) Mobile operators fight the C&B cost by offering their service to others or by outsourcing it Mobile C&B transaction cost can be reduced by avoiding paper bills (electronic bills) removing credit losses (post-paid pre-paid/real-time) eliminating history (digital credit digital cash) aggregating for settlement (digital wallet) automating the top-up process (digital wallet) Slide 15 Operator charging and billing Mobile pre-paid process Top-up side Payment side Pre-paid phone cards Automatic Teller Machines Credit account Physical goods Physical services Digital goods On-line digital wallet Digital services Digital transport Slide 16 8