MasterCard Money
Transfer Solutions
Card Based Solutions to Enable
Global Funds Transfer
Department Name
Presentation Date
MasterCard P2P Money Transfer Solutions
Main Menu
P2P: What are the Opportunities?…and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
MasterCard P2P Money Transfer Solutions
Main Menu
P2P: What are the Opportunities?…and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
MasterCard P2P Money Transfer Solutions
Main Menu
P2P: What are the Opportunities?…and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
MasterCard P2P Money Transfer Solutions
Main Menu
P2P: What are the Opportunities?…and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
MasterCard P2P Money Transfer Solutions
Main Menu
P2P: What are the Opportunities?…and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
MasterCard P2P Money Transfer Solutions
Main Menu
P2P: What are the Opportunities?…and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
MasterCard P2P Money Transfer Solutions
Main Menu
P2P: What are the Opportunities?…and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
MasterCard P2P Money Transfer Solutions
P2P: What are the Opportunities?…and Challenges?
P2P: A Significant Opportunity
Key Corridors and Countries
Who Sends the Funds?
What are the Challenges?
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P2P: What are the
Opportunities and Challenges?
P2P: A Significant Opportunity
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Penetrating Cash and Checks
• Until now MasterCard and its members have focused on the
conversion of consumer payments to business and government
• Payments to consumers are virtually untapped
From
Consumer
C2B
C2G
Full Year 2002 MasterCard GDV
C2C
Business
B2B
B2G
B2C
Government
G2B
G2G
G2C
Credit
C2B
B2B
G2B
$873
$73
$5
Billion
Billion
Billion
Debit
C2B
$194
Billion
Business Government Consumer
To
Market Penetration Key
MINIMAL
LIGHT
MEDIUM
MEDIUM
HEAVY
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Payments to Consumers
Checks and cash still dominate
consumer to consumer payments
From
Consumer
C2B
C2G
Business
B2B
B2G
Government
G2B
G2G
Business Government
To
• Gifts
• Loans
• Auctions/Flea
Markets/Classified
• Household services
• Money transfer
• Employee payments and
payroll
• Insurance payments
• Investment payments
• Benefits payments
• Interest and dividends
• Promotions
• Expenses
• Tax disbursements
• EBT
• Pensions
Checks, Cash,
and On-Line
Payments
Checks and
Direct
Deposit
Checks,
Direct
Deposit, and
EBT Cards
Consumer
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C2C Market: High Potential,
Significant Challenges
C2C Payments are Forecast to Exceed 800 billion in the U.S. –
However, There are Challenges For Traditional Credit Cards
Category
1998
2003
Personal Rent Income (G&S)
Housing Purchases (Goods & Services)
Personal Used Car Sales (G & S)
Flea Markets & Classified (G&S)
Personal Care Services (G&S)
Auction Market (Online Only) (G&S)
Personal Inheritance (Cash & equivalent)
Intl. Money Transfer - from the U.S. (C)
Domestic Money Transfer- within U.S. (C)
Allowances (5–18 yr.) (C)
Personal Gifts (C)
Other (Both)
20.0
$ 290.0
38.5
14.0
22.7
1.0
100.0
30.0
14.0
70.0
30.0
63.0
25.5
$370.0
49.5
19.0
28.8
6.5
130.0
40.0
23.5
75.0
38.5
80.6
Total
$693.2 B $886.9 B
New Challenges
1. Payees usually do not
qualify as merchants
2. Overcoming the appeal
of untraceable funds
3. Difficult to identify and
acquire participants
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Person-to-Person (P2P) Money
Transfer is a Logical First Step
Category
1998
2003
Personal Rent Income (G&S)
Housing Purchases (Goods & Services)
Personal Used Car Sales (G & S)
Flea Markets & Classified (G&S)
Personal Care Services (G&S)
Auction Market (Online Only) (G&S)
Personal Inheritance (Cash & equivalent)
Intl. Money Transfer - from the U.S. (C)
Domestic Money Transfer- within U.S. (C)
Allowances (5–18 yr.) (C)
Personal Gifts (C)
Other (Both)
20.0
$ 290.0
38.5
14.0
22.7
1.0
100.0
30.0
14.0
70.0
30.0
63.0
25.5
$370.0
49.5
19.0
28.8
6.5
130.0
40.0
23.5
75.0
38.5
80.6
Total
$693.2 B $886.9 B
Characteristics
1. Established industry
& economics
2. Audit trail regulation
increasing (AML)
3. Existing identifiable
participant base
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Significant Opportunity
• Total P2P Money Transfer is forecast to reach at
200 Billion USD Globally by 2003
• Estimated 800 million transactions annually between
200 million consumers
• Growing at a compound annual rate of 10%
• Both formal channels, (e.g., banks, Western Union) and
informal channels, (e.g., mail, personal courier)
Source: Datamonitor and the Inter-American Development Bank
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Remittance Growth is Being Driven by
Increased Global Migration
Foreign-Born People as a %
of Total Population
Foreign-Born Population in the U.S.
40
12
31.1
30
11.1
20
10
9.3
8.9
8.3
4
19.8
0
8
6
9.6
10
14.1
1970
5.6
4.8 4.8
4.1 3.9
1980
1990
Origin of Foreign-Born
Population in the U.S.
2.2
2
26%
0
d
ia
rk
S.
m
ds
ny
ce
U. ustr ma giu ran rlan ma lan
F tze
A
er Bel
en her
i
G
D
t
Sw
Ne
UK
ly
Ita
2000
Asia
Latin America
Europe
Other
6%
16%
52%
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Remittances Channels
are Formal or Informal
Formal
• Western Union
• Money Gram
• Bank Wire
Informal
• Mail Funds (Cash/MO)
• Carry Funds
• Hawallas, Mulas, & Aiajeros
Global Money Transfer
200 Billion USD
Informal
40%
Formal
60%
Informal Money Transfer Channels are Under Pressure
• Informal flows have declined from 50% in the 90’s to almost 40% by 2002
• New alternatives
• New AML reporting regulations
• Governments want to gain control
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P2P: What are the
Opportunities and Challenges?
Key Corridors and Countries
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10 Key Corridors Projected
to Grow at 10% Annually
Top 10 P2P Funds
Transfer Corridors
U.S. to Mexico
U.S. to Central America
Saudi Arabia to Egypt
Saudi Arabia to India
UAE to India
North America to China
U.S. to Philippines
North America to India
Germany to Turkey
Germany to Italy
Total
2000 Volume
2005 Volume Projected
(Estimated) USD (Projected) USD
CAGR
5.0 – 10.0 B
3.5 – 6.0 B
3.5 – 5.0 B
3.0 – 4.5 B
2.0 – 3.0 B
2.0 – 3.0 B
1.0 – 2.0 B
1.0 – 2.0 B
1.0 – 2.0 B
1.0 – 2.0 B
9.0 – 19.0 B
6.3 – 10.8 B
6.3 – 9.0 B
5.4 – 8.1 B
3.6 – 5.4 B
3.6 – 5.4 B
1.8 – 3.6 B
1.8 – 3.6 B
1.8 – 3.6 B
1.8 – 3.6 B
10.0%
10.0%
5.0%
5.0%
5.0%
10.0%
10.0%
10.0%
12.5%
12.5%
23.0 – 39.5 B
41.4 – 71.1 B
10.0%
Source: Datamonitor – 2001, World Bank Reports, Internal Calculations
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Focus on a Few Key Countries Can
Achieve Scale Quickly
6 Key Countries Account For Approximately
35% of Total Opportunity
United States
While the U.S. is the largest
outbound sender of funds, the
intra-U.S. business is also
significant
United Kingdom
The UK does not rank as a top
corridor, however, the total
outbound and inbound
remittance volume makes it one
of the most attractive
United States
outbound
$30 B
India
inbound
$13 B
Philippines
inbound
$10 B
China
inbound
$9 B
Mexico
inbound
$9 B
UK
inbound
$5 B
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P2P: What are the
Opportunities and Challenges?
Who Sends the Funds?
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Profile of the
Remittance Consumer
• Participants in cross-border remittances vary by
remittance corridor
• Overall, senders are characterized as:
–
–
–
–
–
Male
Younger
Employed
Having minimal bank relationships
Using technology less
• Sending money cross border 8 to 12 times per year
• An average of 2,800 USD per remitter is sent annually
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P2P: What are the
Opportunities and Challenges?
What are the Challenges?
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Until Now, Banks Have Not Focused on
Cross-border Remittances
Branch economics are
unfavorable for providing
“one off” services for noncustomers
• Traditional wire transfers are highly manual
and
time consuming
No cost-effective systems to
support small dollar transfers
($280)
• SWIFT and ACH networks were designed
primarily
for large funds movement
A significant percentage of
P2P participants have been a
low priority
• Banks historically have not developed strategies
to attract immigrant consumers into branches
• Recipients are largely underserved
• Certain immigrant populations retain a distrust
of traditional banks and use them infrequently
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Banks are Well Positioned to
Offer Cross-border Services
Core competencies and assets include:
• Transaction risk management
• AML compliance methodologies
• Technology platforms and networks
• Card program capabilities
• Retail merchant relationships
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MasterCard P2P Money Transfer Solutions
MasterCard Payment Transaction Solutions
Leveraging Card-Based Technology
MasterCard Payment Transactions
Money Transfer Service: Online and Agent-Based
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MasterCard Payment
Transaction Solutions
Leveraging Card-Based
Technology
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Banks Can Leverage Card-based
Technology to Capitalize on P2P Money
Transfer
• 67% of recipients indicate their desire to receive funds
on a money transfer card instead of going to an agent
to get cash
• 58% of recipients indicate interest in adding their own
funds to a card
• Penetrating the global money transfer opportunity
requires the global processing and connectivity of
today’s modern electronic payments industry
• Card-based capabilities and economics offer improved
security, convenience, and value
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Different Customer Segments Require
Different Business Models...
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Bank P2P Funds Transfer Programs
Fall into Three Business Models
Intra-bank Systems – Facilitates
transfers among a bank’s
customers. Uses bank branches
or bank agents
• Uses proprietary platforms such as c2it and
Chase ReadECash
Bi-lateral Arrangements – Two
banks agree to provide funds
transfer services among their
respective customers
• Closed system to only participating banks
(Examples: Citi/Banamex, BofA/ Santander,
HSBC/Bital, Wells/Bancomer)
Open Alliances – Banks
participate in a centralized
funds transfer program
• Association offers platforms and networks that
can serve any member’s customers (Examples:
MasterCard MoneySend, VISA PayDirect)
• Bank provides origination capabilities to send
funds or load prepaid cards over a platform
limited to bank customers
(Example: HSBC and Yahoo PayDirect)
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How Do We Tap Into the Billions in Cash That are
Sent Globally Between Family and Friends?
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MasterCard Flexible Solutions
MasterCard products and platforms can be
configured to meet a wide variety of
business strategies
Products
• MasterCard Payment
Transaction
• Maestro Payment
Transaction
• Prepaid Cards
• Family Account
Platforms
• RPPS
• Prepaid Service
• MoneySend (Pilot)
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MasterCard Payment
Transaction Solutions
MasterCard Payment Transactions
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MasterCard Payment
Transactions
MasterCard has created the payment
transaction to support a variety of off-line
and online P2P Money Transfer Models
• What is the “payment transactions”
• How does it work?
• What P2P Money Transfer Models does it
support?
• What does a member have to do to use the
new payment transaction?
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What is the Payment Transaction?
• The payment transaction is “a credit to an account
without an off-setting debit”
• The payment transaction brings positive interchange
for the issuing member posting the credit
• Payment transactions have been created for both
MasterCard and Maestro branded products
• The current interchange on both the MasterCard
and Maestro account is $.53 USD plus 19BP
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How Does it Work?
• MasterCard/Maestro payment transactions are used in end-
to-end P2P Money Transfer solutions that rely on a Payment
Service Provider to accept value, create the payment
transaction, and enter it into the MasterCard system
• The payment service provider acts as a merchant and pays the
reverse interchange
• The payment service provider interacts with the sender and
receiver and charges a service fee
• Originating value can be from cash, bank accounts,
or credit cards
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What P2P Money Transfer
Solutions Do They Support?
The MasterCard/Maestro payment transactions were
designed to enable P2P Money Transfer services that
provide both online and offline service, domestically
or globally. Models include, but are not limited to:
• Internet P2P Money Transfer services accessed by PCs,
kiosks, or other internet devices
• Agent based services that can accept cash
• Bank to bank services that move money onto credit or
debit accounts
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What Does a Bank Have to Do to Use
the New Payment Transactions?
Member banks can use the new MasterCard/Maestro
payments transactions in two ways:
• Recipient Banks: complete the maintenance required
to become certified to accept the payment transactions
and complete the AML* compliance review
• Sending Banks: develop in-house capability or partner
an outside payment service provider platform to
generate the payment transaction, (e.g., Yahoo,
CertiPay). Complete an AML compliance review
• *AML = Anti-money laundering – See U.S. Patriot Act
and FATFA
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Benefits of the Payment
Transaction
Enabling the MasterCard/Maestro payment
transaction provides instant access to P2P
Money Transfer
• Banks can accept transactions from any participating funds
transfer service
• Banks can receive P2P Money Transfer transactions from any
domestic or global originating point
• Banks require no special development after becoming certified
to create or accept the payment transaction
• Banks can rely on the MasterCard global systems for P2P
Money Transfer settlement and connectivity
• Banks can use the payment transaction in a wide range of
service designs
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Consumer Benefits
Using the MasterCard/Maestro Payment Transactions
will provide a P2P Money Transfer Service that is:
• Usually less expensive than agent-to-agent funds
transfer services
• Easier and safer than receiving and keeping cash
• Easily accessed a hundreds of thousands of ATMs
• Used immediately in millions of merchants worldwide
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The Role of the Payment Service
Provider
Money Transfer Services:
Online and Agent-Based
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What is a Payment Service
Provider?
A payment service provider stands between
the sender and the receiver
Business Model – Qualified merchant or Acquirer
Target Consumer Segment – Fully banked or underserved
Channels – Online or Face-to-Face
Economics – Transaction-based fees, interchange, and FX
Key Challenges – Ensure banks in the receiving markets are
prepared to accept the payment transaction
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Payment Service Provider in an
Online P2P Service
Banks leverage online payment service
providers to support money transfer
MasterCard Solution – MasterCard/Maestro Payment Transaction
Target Consumer Segment – Fully banked and technology aware
Channels – Online or kiosk
Economics – Transaction-based fees, interchange, and FX
Key Challenges – Ensure banks in the receiving markets are
prepared to accept the payment transaction
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Online P2P
Money Transfer Service
• A member or co-brand partner offers the ability to send
money to family and friends over their online website
• Sender and recipient register to be a part of the service
• The sender selects the account that will be used to fund the
transfer and identifies the sender and a pass code
• The sender reviews and accepts the fees and foreign
exchange rates if applicable
• The recipient receives an email message with a link to the P2P
Money Transfer Service
• The recipient enters their name, the pass code, and the
MasterCard account to which the money will be transferred
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Online P2P Money Transfer Service
MasterCard/Maestro Payment Transaction enables funds to be
place on any credit or debit card from bank or card account via
an online payment service provider.
Debit Card Issuers
Kiosk
PSP
Provider
MasterCard Systems
Payment
Transactions
Acquirer
Website
Email link to Payment
Service provider
Credit Card Issuers
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Online P2P
Money Transfer Service
How a Member Makes Money
Service Provider
• Service fees
• Foreign exchange
Acquirer Bank
• Discount Rate
Receiving Bank
• Account fees
• Interchange (Payment Transaction and Usage)
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Online P2P
Money Transfer Service
How the Member Will Sell It
Online Promotion
• Pop-up ads
• Portal ads
• Email ads
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Payment Service Provider in an
Agent-Based P2P Service
Banks leverage retail agents and a payment
service provider to support money transfer
MasterCard Solution – MasterCard/Maestro Payment Transaction
Target Consumer Segment – Underserved
Channels – Retail agent
Economics – Transaction-based fees, interchange, and FX
Key Challenges – Establishing a retail relationship that appeals to
the under served market—developing internal
or outsourcing payment service provider
capability
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Agent-based P2P
Money Transfer Service
• A member or co-brand partner offers the ability to send money to
•
•
•
•
•
family and friends through a network of retail agents
Sender and recipient register to be a part of the service – recipient is
given an registration number and provides it to the sender
The sender goes to the retail store with cash, the name of the
recipient’s name and ID number
The retail agent submits the transaction to the payment service
provider who translates the ID number to the recipient’s registered
PAN
The transaction is sent to the MasterCard system through the
acquirer
The payment transaction is accepted by the recipient’s card issuer
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Agent-based P2P Money Transfer Service
MasterCard/Maestro Payment Transaction enables funds to
be place on any credit or debit card from bank or card
account via an online payment service provider
Debit Card Issuers
Bank
Branch
PSP
Provider
MasterCard Systems
Payment
Transactions
Acquirer
PSP
Provider
Agent
Credit Card Issuers
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Agent-based P2P
Money Transfer Service
How a Member Makes Money
Agent
• Commission
• Foreign Exchange
Acquirer Bank
• Discount Rate
Recipient Bank
• Account fees
• Interchange (Payment Transaction and Usage)
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Agent-based P2P
Money Transfer Service
How the Member Will Sell It
• Targeted Local Market Promotion
• Local print
• Community Promotion
(Ethnic associations, church groups)
• Selected branch advertising
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MasterCard P2P Money Transfer Solutions
MasterCard P2P Prepaid Cards
Introduction: The MasterCard Prepaid Card Opportunity
The Sender Centric Model
The Recipient Centric Model
MasterCard Prepaid Services
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MasterCard P2P Prepaid Cards
Introduction: The MasterCard
Prepaid Card Opportunity
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MasterCard P2P Prepaid Cards
Prepaid cards can play a role in a number
of P2P Solutions
• Effective for targeting underserved/unbanked
segments
• A solution MasterCard members can support
now using existing infrastructure
• Low cost of entry
• Sender-centric and/or receiver-centric programs
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Consumer Benefits of Using
Prepaid Cards for P2P
• Research indicates recurring money transfer consumers
find prepaid cards an attractive proposition
• Provides greater security and privacy than traditional
transfers
• Offers greater convenience for both sender and recipient
• Can be less expensive for the consumer than current
funds transfer options
• Improves the personal self-worth of the underserved
remittance customer
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Opportunities for Members at
Either End of Funds Flow
Supports Issuers in “Sending” and
“Receiving" Countries
Sending model
Issuer offers a prepaid card account to sender with
an additional access card for the recipient
Receiving model
Issuer offers recipient a card account to which funds
are transferred by a participating sender
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MasterCard P2P Prepaid Cards
The Sender Centric Model
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P2P Prepaid Card
Sender Centric Model
• A single prepaid account with two cards at a bank
in the sending country
• Sender and recipient name, address, and ID
captured for AML compliance
• Secondary card is delivered to recipient
• Recipient uses cards at ATMs or POS
• Sender can reload at designated locations using
the primary card and photo ID for authentication
• Sender has equal access to funds
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Sender Centric Model
MasterCard Prepaid Cards using any of the MasterCard
family of brands and two or more authorized users.
Prepaid
Platform
Issuer
MasterCard
Prepaid Platform
MasterCard
Systems
ATM
Acquirer
ATM
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P2P Prepaid Card Programs
How a Member Makes Money
Fees and float
• Annual fees
• Loading fees
• Interchange (when used at POS or with the
“payment” transaction)
• Servicing fees
• FX on sender centric model
• Float
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P2P Prepaid Card Programs
How the Member Will Sell It
Targeted Local Market Promotion
• Local print
• Community Promotion
(Ethnic associations, church groups)
• Selected branch advertising
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MasterCard P2P Prepaid Cards
The Recipient Centric Model
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P2P Prepaid Card
Recipient Centric Model
• A single prepaid account at a bank in the receiving
country
• Recipient is the primary account holder – name,
address, and ID captured for AML compliance
• Recipient uses cards at ATMs or POS
• Sender can send funds at designated branches or
retail locations that are certified to send a payment
transaction
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Recipient Centric Model
MasterCard Prepaid Cards using any of the MasterCard family of brands
Bank
Branch/
Agent
Sender
PSP
MasterCard
Systems
Issuer
Account
Holder
ATMs
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P2P Recipient Centric
Prepaid Card Programs
How a Member Makes Money
Fees and float
• Annual fees
• Loading fees
• Interchange (when used at POS or with the
“payment” transaction)
• Servicing fees
• Float
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P2P Recipient Centric
Prepaid Card Programs
How the Member Will Sell It
Targeted Local Market Promotion
• Local print
• Community Promotion
(Ethnic associations, church groups)
• Selected branch advertising
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MasterCard P2P Prepaid Cards
MasterCard Prepaid Services
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MasterCard Prepaid Services
• MasterCard Prepaid Cards can be used with
any proprietary or third party prepaid platform
• Members are free to use a prepaid platform of
their choice
However, MasterCard Prepaid Services
has features that makes it ideal for
global funds transfer
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MasterCard Prepaid Services
What is MasterCard Prepaid Services?
• Prepaid is one of the processing services
MasterCard delivers today using its core
processing infrastructure
–
–
–
–
Credit (Banknet)
Debit (Banknet/MDS)
Prepaid (PDC)
Gateway Services
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MasterCard Prepaid Services
• MasterCard processing services support
prepaid programs using any of the MasterCard
family of brands
– Maestro/Cirrus – online, PIN
– MasterCard/MCE – signature
• MasterCard authorizes, clears and settles
prepaid transactions, and manages balance
information on behalf of issuing members
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MasterCard P2P Money Transfer Solutions
MasterCard Family Account
The MasterCard Family Account
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The MasterCard Family Account
• A convenient "passive"
recurring transfer solution
– No need for either party to take
action unless parent wants to
change limit
• A low risk way to give a
MasterCard card to teens and
young adults
– Parent is accountholder
• Can also be used for extended
families or household employees
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Family Card
Uses traditional bank card platform
with card level controls
MasterCard Solution – MasterCard Family Card
Target Consumer Segment – Fully banks consumers
Channels – Bank branches or website
Economics – Account fees, interchange, and interest income
Key Challenges – Limited to issuer customers
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Family Card
Components and Customer Experience
Components
• Bank card management platform
• Bank branch or website
• MasterCard branded cards with card level controls
Customer Experience
1. Primary account holder designates an authorized user
2. Primary account holder sets spending and credit limits
3. Authorized user uses card at POS or to access cash at ATMs
or bank branches
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Family Card
How a Member Makes Money
Interest and Interchange
• Interest on larger outstanding balances
• Interchange from multiple users
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Family Card
How the Member Will Sell It
Targeted Direct Response
• Direct Mail
• Out Bound Calls
• Targeted Take-one Applications
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Family Card
Featuring MasterCard Branded Cards
MasterCard Branded Cards leveraging account level controls.
Authorized User
ATM
Card
Management
Platform
Primary
Acc’t
Holder
Issuer
MasterCard
Systems
Acquirers
Proprietary or
Third Party
POS
Authorized User
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MasterCard P2P Money Transfer Solutions
Supporting Bank Business Models
Intra-Bank Systems Model
Bi-Lateral Model
Open Alliance Model
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MasterCard P2PPayment
Money Transfer Solutions
Intra-Bank Systems Model
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Intra-Bank Systems Model
Uses bank proprietary systems to move
funds among bank accounts
MasterCard Solution – MasterCard RPPS
Target Consumer Segment – Banked customers
Channels – Personal computers, PDAs, phone, or branch kiosks
Economics – Transaction-based fees or bundled with other
bank services
Key Challenges – Limited to banks on common platforms—
limited to consumers with electronic access
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Intra-Bank Systems Model
Components and Customer Experience
Components
•
•
•
•
Electronic terminal (PC, phone, PDA, or kiosk)
Bank branded Internet portal
Electronic transaction processor (e.g., CheckFree)
Global network and transaction manager (MasterCard RPPS)
Customer Experience
1.
2.
3.
4.
5.
6.
Customer signs up for electronic banking service
Accesses funds transfer option
Enters recipient name and bank account information
Selects source of funds from accounts with the bank
Approves the transaction for delivery
Recipient receives the funds automatically in DDA or credit card account
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Intra-Bank Systems Model
Using MasterCard RPPS, Prepaid Services, & Global Network
MasterCard Remote Payment and Presentment Service allows
consumers who use electronic bill payment channels to send
money to other bank accounts or credit cards.
Electronic Bill
Payment Service
MasterCard
Systems
MasterCard
DDA
RPPS
Issuer
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MasterCard P2PPayment
Money Transfer Solutions
Bi-Lateral Model
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Bi-Lateral Model
Banks develop a funds transfer among their
customers using an agreed upon system
MasterCard Solution – MasterCard/Maestro Payment Transaction
Target Consumer Segment – Banked customers & underserved
Channels – Bank branches or electronic channels
Economics – Transaction-based fees along with float
Key Challenges – Not a global solution
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Bi-Lateral Model
Components and Customer Experience
Components
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•
•
•
Payment Service Provider platform. (Acquirer or merchant)
One or more bank account(s). (DDA or Credit)
Bank branch, bank kiosks, or bank agent retail locations
MasterCard “payment transaction”
Customer Experience
1.
2.
3.
4.
5.
Sending customer signs up for bank branded funds transfer service
Bank captures user profile and performs authentication
Sender selects service from a terminal or is supported by a branch teller
Sender identifies the recipient in the partner bank via a program ID
Funds are sent to partner bank via PSP platform using the MasterCard/
Maestro “payment transaction” to credit card account or debit account
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Bi-Lateral Model
Using the MasterCard Payment Transaction
MasterCard/Maestro Payment Transaction enables funds to be placed on any
credit or debit card from many sources of value – Credit Card, DDA, or Cash.
Bank
Payment
Platform
MasterCard Systems
Payment
Transactions
DDA
Acquirer
Partner Bank
Bank Internet
Channel
Payment Service
Provider
Credit Card
Account
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MasterCard P2P Money Transfer
Solutions
Open Alliance Model
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Open Alliance Model
Banks leverage an open alliance to provide their
customers with global funds transfer capability
MasterCard Solution – MasterCard/Maestro Payment Transaction
Target Consumer Segment – Underserved
Channels – Participating retail agents
Economics – Transaction-based fees, interchange, and FX
Key Challenges – Engage underserved consumer segment
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Open Alliance Model
Components and Customer Experience
Components
•
•
•
•
Payment Service Provider platform (Acquirer or Merchant)
One or more bank account(s). (DDA or Credit)
Bank branch, bank kiosks, or bank sponsored agent retail locations
MasterCard/Maestro “payment transaction”
Customer Experience
1. Sending customer signs up for bank branded funds transfer service
at participating retail agent
2. Retail agent captures user profile and performs authentication
3. Sender identifies the recipient in the partner bank via a program ID
4. Funds are sent to any qualified MasterCard branded card using the
MasterCard/Maestro “payment transaction”
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Open Alliance Model
Featuring MasterCard Payment Transaction
MasterCard/Maestro Payment Transaction enables funds to be placed on any
credit or debit card from cash or card at participating retail or Internet agents.
Debit Card Issuers
Website
PSP
Provider
MasterCard Systems
Payment Transactions
Website
PSP
Provider
Agents
PSP
Provider
Agents
Acquirer
MasterCard has just announced
MoneySend™ an “On-Behalf-Of”
P2P Service for the European Union
Credit Card Accounts
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MasterCard P2P Money Transfer
Solutions
Conclusion:
Next Steps
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MasterCard Solutions Can Support
Most Bank Business Strategies
MasterCard Solution
Intra-Bank
Bi-Lateral
Open Alliance
Yes
Yes
Yes
Yes
n/a
n/a
• RPPS (U.S. Only)
Yes
Yes
Yes
• Prepaid Services (Global)
Yes
Yes
Yes
• MoneySend (Pilot)
n/a
Yes
T.B.D.
• MasterCard Payment
Transaction
Yes
Yes
Yes
• Maestro Payment
Transaction
Yes
Yes
Yes
Products
• Prepaid
• Family Card
Platforms
Enabling Technologies
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MasterCard Funds Transfer Card
Next Steps...
• Select customer segment
• Select business model
• Develop product and plan and requirements
• Identify technology platform
The team is ready to support you!
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MasterCard Funds
Transfer Solutions
Consumers transferring money to other consumers
represents a new opportunity for card issuers.
MasterCard envisions a not too distant future when
value is exchanged over a myriad of personal
terminals.
However, the business case today for person-toperson funds transfer is cross-border remittances.
The MasterCard provides cross border solutions you
can implement Today!
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