Overview - June 2013
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WHAT IS SMARTPAY?
SmartPay (powered by BillFloat®) is a leaseto-own plan that lets consumers purchase
products with convenient monthly payments
•A payment option for consumers
•Merchants are paid in full on approval
•Works both online and in-store
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WHY OFFER SMARTPAY
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Easy online application (NO PAPER)
SmartPay is a new “tender type” that
customers can use
 We reimburse you for the full retail
value (plus sales taxes) of the items
you sell
Minimum initial payment - one of 10 easy
payments deducted from consumer’s debit
card automatically
Dealer does not collect any payment from
consumer, SmartPay collects payments
online
No long term commitments
Less than perfect credit ok
Instant decision – high approval rates
“90 Days Same as Cash” Early Payoff
Option gives consumer a fee free option
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WHAT DO I NEED TO OFFER SMARTPAY?
In Store Option
1.
Establish dedicated computer in your store for consumers to apply
a. Mac or PC with Chrome, Firefox 3.6+ or Internet Explorer 8+
b. Bookmark your specific SmartPay url
c. Each store can login with their unique store login id
2.
Enroll for program by providing basic information to SmartPay
3.
Obtain point-of-sale marketing materials from your BillFloat sales rep or
print authorized marketing materials yourself
4.
Familiarize yourself with how to use the SmartPay system
5.
Start Selling!
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HOW TO SIGN UP FOR SMARTPAY
In Store Option
1. Log onto
www.getSmartPay.com
2. Provide basic business information, Bank
account to receive ACH payments or
virtual debit card payments and agree to
SmartPay terms and conditions
3.
You will be presented with login ID for
your stores to access the SmartPay store
portal and process SmartPay transactions:
– Each store will have a unique Store
Login ID that uniquely identifies the
location
– This Store Login ID determines the
bank account where the ACH
payments are sent
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WHAT DO I NEED TO OFFER SMARTPAY?
Online Option
1.
Enroll for program by signing SmartPay Agreement
2.
Integrate Web Assets and API into your web site check –
out pages
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3.
Utilize your own in-house IT resources
Access a SmartPay Certified IT Resource
Start selling!
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HOW DO I GET PAID FOR WHAT I SELL USING
SMARTPAY
SmartPay pays you directly for the items you sell and you have two payment
options to choose from:
1.
2.
ACH initiated next day; dealer receives funds in 3-5 days (no interchange)
Virtual Debit Card – you run card number on your Merchant card
processing terminal and receive funds like any other debit/credit card
transaction (results in interchange fee)
Notes:
The initial payment is collected directly from the consumer’s debit card by
SmartPay
You pay sales tax on SmartPay like any other transaction
Payment will be for full transaction amount including tax
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PRODUCT OVERVIEW
•
Lease to own a shopping cart up to $1,500
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Easy application process
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Online application process completed in minutes
Real-time decision
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90 days same as cash, or
Payment term 10 installments
 First installment payment of 20% due at time of purchase
 Total financed price equal to 100% of original price
 SmartPay collects all funds from consumer
Includes accessories and equipment
Decision result completed in seconds
Originated and funded by BillFloat
Direct transfer and repayment of funds
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Funds transferred to merchants' bank account
Monthly debit to consumer’s account
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MVNO BENEFITS
Drive Incremental
Sales
Drive Higher Dollar
Sales
No Risk to MVNO
MVNO Paid
Immediately
Drive Increased
Loyalty
10%
50%
60M
Incremental sales
larger cart sizes
credit challenged
customer
Source: Billfloat experience with large national wireless provider
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END USER CUSTOMER BENEFITS
Easy Entry to Higher End
Smartphones and Tablets
Source: Billfloat experience with large national wireless provider
Financing or 90 Days
Same as Cash
Put Mobile Device In the
Hands of Your Entire
Family
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WHICH CUSTOMERS ARE ELIGIBLE?
PLAN ELIBILITY
• 18 years old
• Valid Social Security Number
• Debit Card linked to a bank
account
• $1000 pre-tax monthly income
RESTRICTIONS
Current
• No pre-paid cards accepted
• Valid for tangible goods only
(phones, accessories, airtime)
• Must have enough available funds
in bank account to cover the initial
payment
approvals running 75%
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DEVICE FINANCING ENABLEMENT OPTIONS
Online Solution
In-Store Solution
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Sign Contract
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Share API documentation
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Development with API/Testing
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Confirm financial operations
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Launch Custom Web Portal
Dealer associate qualifies customer
Customer must have the following
 Email address
 18 years of age
 Minimum $1,000 gross monthly income
 Debit card tied to a bank account
 Social security number
• Customer fills out online application
• Dealer associate enters “Store Login ID” as part of
the online application process. The Store Login ID
tells BillFloat which location to reimburse for the
items
Payments get deposited daily into your bank account via
ACH or a virtual debit card transaction is created for real
time processing of transaction
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Dealer associate qualifies customer
Customer must have the following
 Email address
 18 years of age
 Minimum $1,000 gross monthly income
 Debit card tied to a bank account
 Social security number
Customer fills out online application
Dealer associate enters “Store Login ID” as part of
the online application process
The Store Login ID tells BillFloat which location to
reimburse for the items
Payments get deposited daily into your bank
account via ACH or a virtual debit card transaction
is created for real time processing of transaction
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Appendix
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SMARTPAY CONSUMER PAYMENT TERMS
Approved
Amount*
$300
$400
$500
$600
$700
$800
$900
$1,000
Customer
Monthly Income
(minimum)
$1,200.00
$1,400.00
$1,600.00
$1,800.00
$2,000.00
$2,200.00
$2,400.00
$2,600.00
Initial Payment
of 20% (Due at
Purchase)
$59.85
$79.80
$99.75
$119.70
$139.65
$159.60
$179.55
$199.50
9 Additional
Monthly
Payments
$59.85
$79.80
$99.75
$119.70
$139.65
$159.60
$179.55
$199.50
* Other factors apply in addition to income, not all customers are approved. This chart shows the maximum approval amount by
gross monthly income, some customers are approved for lower amounts than indicated by this chart
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ONLINE SOLUTION PRODUCT OVERVIEW
You push
value prop
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ONLINE SOLUTION PRODUCT OVERVIEW
You also
message on
product page
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ONLINE SOLUTION PRODUCT OVERVIEW
You integrate
in shopping
cart with API
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ONLINE SOLUTION PRODUCT OVERVIEW
Consumer
fills
application
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ONLINE SOLUTION PRODUCT OVERVIEW
You pass
add’l data
via API
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ONLINE SOLUTION PRODUCT OVERVIEW
We decision
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ONLINE SOLUTION PRODUCT OVERVIEW
Consumer
signs terms
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ONLINE SOLUTION PRODUCT OVERVIEW
Payment
complete
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IN STORE SMARTPAY APPLICATION PROCESS
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IN STORE SMARTPAY APPLICATION PROCESS
(CONT.)
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IN STORE SMARTPAY APPLICATION
PROCESS(CONT.)
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IN STORE SMARTPAY APPLICATION
PROCESS(CONT.)
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IN STORE SMARTPAY APPLICATION
PROCESS(CONT.)
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IN STORE SMARTPAY APPLICATION
PROCESS(CONT.)
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Additional FAQs
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HOW DO CARRIER MONEY BACK
GUARANTEES WORK WITH SMARTPAY?
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Carrier standard money-back guarantees are supported by SmartPay with standard
guidelines
– Return within carrier’s allowed days of purchase and allowed minutes of talk time
on handset
Associate must process return on SmartPay Portal
– Customer must provide DOB and last 4 digits of SSN
– Lookup consumer, click “Start Processing Return” and select amount of return
– Partial returns are supported
– Funds for the initial payment will be returned to the consumer’s debit card directly
– Funds for the returned phone will be debited from the following day’s ACH
transfer to the dealer, or if dealer was paid using a Virtual Debit Card, processes
debit card return
Consumer cannot receive cash back, return must be processed using Payment
Support
Line of service is canceled
1st month of service return process follows current guidelines
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HOW DO TAXES WORK WITH SMARTPAY?
1. BillFloat pays the dealer for the full price of the items
you sell, including applicable sales tax upon settlement
2. Dealer treats the transaction like any other tender type
3. BillFloat deals with all tax consequences of the lease,
dealer has no involvement
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FAQs
1. Can the dealers get a copy of the deck with the rules and screenshots?
There is document recently sent to the AMs that can be used to train.
2. Can we get the customer application to be able to be pulled up on a tablet?
Not at this time.
3. If the customer decides to wait before purchasing, and later goes to another
store, do they have to go through the application process again?
No, as long as the application is accessed within 72 hours, you can look up and
find an approved basket amount
4. How much is the fee for BillFloat?
About double MSRP. But they can pay off the amount early and save on the
fees. We have a 90 days same as cash offering, which means
consumers pay the same price as if they were taking the device out of the
store as long as they payoff within 90 days. Even after the “same as cash”
period ends, consumers can save money by paying early. For example, a
consumer that pays off after 5 payments saves half the fees!
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FAQs (cont.)
5. When refunded, do they get all their money back?
Yes
6. What is the earliest a customer can pay off what they owe and avoid fees?
It can be as early as the next day.
7. What money does the dealer collect from the customer?
Only fees or charges for items not on the lease. Dealer does not collect on
behalf of SmartPay.
8. Do all handsets, airtime and accessories qualify for BillFloat?
Yes, but airtime must be first month only, and all other goods must be tangible
goods.
9. How long does it take for the funds to go in the dealers account via ACH?
3 to 5 business days.
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FAQs (cont.)
10. Can the dealer take the sales tax from the customer?
No, SmartPay will reimburse the dealer for all costs including
sales tax.
11. If the initial payment isn’t in their bank account, what happens?
“Funds not available” will show up and the transaction will not proceed, therefore
the customer will not be able to proceed with the transaction.
12. In case of a return, how long does it take for the customer to get their money
back on their debit card?
1 to 2 business days.
13. Can the customer pre-pay more to get a smaller monthly payment?
No, a larger pre-payment would give less months but not make the monthly payment
smaller.
14. Can you do this on new and upgrades?
Yes, both new and upgrades qualify. If it is an upgrade, the dealer needs to collect
the upgrade fee.
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FAQs (cont.)
15. What marketing collateral will there be?
You will be able to download printable versions of a take-one flyer, poster and
pricing tags from the SmartPay portal, phone wigglers are also
available from your SmartPay representative
16. How do we show this transaction in our POS system?
It depends on your POS system.
17. Does the way SmartPay handle sales taxes present risk for me as a dealer?
No, SmartPay reimburses you for the full retail amount of the sale including
sales taxes. You treat SmartPay like any other tender type. SmartPay deals
with collecting taxes from the consumer.
18. Can two different customers use the same debit card?
No. Only one debit card per one customer.
19. Can I charge customers who use SmartPay a different cost for the items I am
selling them as compared to other customers?
No. You must charge customers using SmartPay the same price customers
get when paying with cash.
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THANK YOU
QUESTIONS?
EMAIL GETSMARTPAY@BILLFLOAT.COM
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