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First Ecom

First Ecom. Global E-Payment Processing http://www.firstecom.com. E-Commerce. E-commerce boom started in 1998 Yahoo, Amazon.com, eBay, etc Only the U.S. is participating in this boom Explosive growth expected in Asia Major limitation is lack of processing

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First Ecom

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  1. First Ecom Global E-Payment Processing http://www.firstecom.com

  2. E-Commerce • E-commerce boom started in 1998 • Yahoo, Amazon.com, eBay, etc • Only the U.S. is participating in this boom • Explosive growth expected in Asia • Major limitation is lack of processing capabilities, multiple currencies

  3. E-Commerce Worldwide • According to Forrester Research: • Currently valued at US$12 billion • Expected to be US$1.1 trillion by 2002

  4. E-Commerce in Asia • According to Goldman Sachs: • End of 1998, 15 million Internet users and an e-commerce market of $700 million • By 2003, 64 million Internet users and $32 billion in e-commerce sales expected • Twice the growth rate expected in the U.S. during the same period

  5. Internet Evolution • Phase I • Static web site - Glorified Brochure • Marketing Driven • HK$ 78K - 390K • US 1995/96 • Europe 1997/98 • Asia 1997/98/99

  6. Internet Evolution • Phase II • Moving from static to basic interactivity • Content becomes more important • Marketing & IT driven • HK$ 390K - 2.0M • US 1997/8 • Europe 1998/99 • Asia 1999

  7. Internet Evolution • Phase III • Fully interactive web site • Revenue source - ROI • Requires new business model • Driven by Upper Management • HK$2.0 Million+ • US 1999 • Europe 2000 • Asia 2000/2001

  8. Challenges • Lack of online credit card processing capabilities in Asia and Europe • Banks missing E-commerce processing partner • Internet penetration still low • Perception of security risks

  9. Positioning Statement “First Ecom provides a global, secure, easy to implement, low cost, electronic payment processing gateway.”

  10. Why First Ecom? • Idea developed out of necessity • Tremendous pent-up demand in the market • Many different disciplines came together to create the First Ecom concept

  11. Why First Ecom? • Solutions for both banks and merchants • Offshore Payment Processor • 3rd Party Processor • In-Country Processor

  12. Offshore Payment Processor Card Network Bank of Bermuda (Acquirer) First Ecom Payment Gateway Card Issuers First Ecom - Master Merchant Shopping / Payment Internet Approval / Due Diligence / Merchant Account / Money Transfer / Merchant Service Cardholder Cardholder Merchant Merchant

  13. Offshore Payment Processor • Key Benefits to Merchant • Quick time to market • Multi-currency support • Tax neutral jurisdiction • Easy to implement • Low cost

  14. 3rd Party Processor Card Network First Ecom Payment Gateway First Ecom Processor Card Issuers 3rd Party Processor Merchant Acquirer Shopping / Payment Internet Approval / Merchant Account / Settlement / Merchant Service Cardholder Cardholder Merchant Merchant

  15. 3rd Party Processor • Key Benefits to Acquiring Bank • Quick time to market • Bank retains control on merchant evaluation, selection, and pricing • Minimal modifications to merchant operations • No modification to Bank Credit Card System • Transparent to merchant • Easy to implement • Low cost

  16. POS Merchant POS Merchant In-Country Processor Card Network First Ecom Payment Gateway First Ecom Processor In-Country Processor Card Issuers Shopping / Payment Internet Cardholder Merchant Acquirer Cardholder Approval / Merchant Account / Settlement / Merchant Service E-Commerce Channel Traditional Channel Merchant Merchant

  17. In-Country Processor • Key Benefits to Banking Consortium • Zero cost for system development • Member Bank retains control on merchant evaluation, selection, and pricing • No modification on Member Bank Credit Card System • Transparent to merchant • Support of local credit & debit authorization • Support of local clearing and settlement • Provides EBPP capability

  18. 5) Purchase Confirmation sent to buyer Internet Purchase Process 1) Buyer browses Internet & adds items to shopping cart Merchant Web Site Web user (Buyer) 4) Authorization details sent to Merchant First Ecom Gateway 2) Merchant sends Order Form to buyer with order details 3) Completed Order Form & card details sent to Gateway

  19. Process First Ecom Payment Network (Visa Net/I.Net etc.) routes inquiry to issuing bank Sends to payment network via payment switch Payment Network Issuing Bank First Ecom Inquiry routed back with authorization/rejection

  20. Authorization Advice First Ecom Via Secure Email to Merchant Merchant Account Reporting System (MARS) Online to Merchant

  21. MARS • Accessible via Internet • View transaction history and records • Secure access • Four functions: • Authorization • Settlement • Cancellation • Refunds

  22. Issuing Bank Payment Network Bank of Merchant Money deposited in merchant account Bank US$ S$ HK$ ¥ C$ € £ Merchant Payment Process Funds are deducted from the Buyer’s card by the issuing bank Money available to Merchant in chosen currency Card Association pays the money into the Bank

  23. Secure Sockets Layer (SSL) versusSecure Electronic Transaction (SET)

  24. SSL vs. SET

  25. Security • Online Authorization using SSL with 40 – 128 bit encryption – prevents card fraud • Content authentication and encryption: OpenPGP (RFC2440) - prevents buyer fraud • The credit card number is not disclosed to the merchant - prevents merchant fraud

  26. Partnerships • Modem Poppe • Sterling Commerce • Sun Microsystems • Sybase • Topsoft • USWeb/CKS • UUNET • Expert Web • FedEx • HKSite • HLB • Inter-Merchant • Intershop • Microsoft

  27. Goal For Asia to fully participate in the e-commerce revolution sweeping the world.

  28. First Ecom Global E-Payment Processing http://www.firstecom.com

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