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DrivingPayments Innovation
Stephen Coulter, Managing [email protected]
040.333.8888
©2012 Emerging Thought
Innovation is NOT.....
©2012 Emerging Thought
• Committees, APCA, ABA
• Myopic Process Focus– It’s not just a payment!– Payments are ancillary.
• Regulator Inspired, RBA
Innovation Is
©2012 Emerging Thought
• Customer Focus– Consumer– Business
• Big Picture Need
• Increasingly Global
• Right Culture
• Right People
(with piercings & nose ring recently
removed)
Payments is Communicationpayments are secondary - focus on the context
©2012 Emerging Thought
Banker to Entrepreneur....
©2012 Emerging Thought
Dec 2005
Wouldn’t it be great if customers could set up and manage all their Direct Debits centrally online
And Banks will be really keen to offer the service to capture share of wallet and improve “trust” values
April 2006Lodged Patent Covering USA, Australia & Canada
Our Rationale
Direct Debit under utilised
Remove the pain point while giving control to customer
Around 80 million DD’s in place with 25m new/changed each year
Make it simple for customers, cloud based for billers and banks
No Capex or Back End integration
Simple IdeaFocus on the pain point - “authority management”
©2012 Emerging Thought
Biller
Consumer
Bank
1.Authority Established Authorising Biller to
Debit Customer’s Account
2.Biller Sends Invoice to Consumer of Amount and Due Date Account
Will Be Debited
3.Biller Sends File to
Bank to Debit Consumer’s Account
4.Bank Sends Statement
of Consumer’s Account Reporting
Transactions
Controlabill Focusses on Step 1, All Other Processes Unchanged
Initial Market Focus - Banks
©2012 Emerging Thought
• Lots of Meetings
• Crossed Silos - No clear business owner
• Lots thought it’s a good idea
• No real traction
• GFC starting
• Get a job to pay rising Patent Attorney Bills!
Not Invented Here TrapThink About Strategic Alliances/Investments
©2012 Emerging Thought
• Remember these guys?• Founders of a small start-up in late
1990’s• PayPal!• No Aussie Bank took up an offer to
own 1% of PayPal for a 7 figure amount.
• At least one Bank had an internal project that cost more than potential investment - never launched
Payments is Communicationcommunicate information more useful than the payment
©2012 Emerging Thought
An Entrepreneur’s Life
©2012 Emerging Thought
2010
• Patent investment $100K+• Look for Investors• Finovate San Francisco,
Tech23 Sydney, others• Mint, a hot topic• Controlabill, good fit with
emerging trends
An Entrepreneur’s Life
©2012 Emerging Thought
2010
• Met US Banks, Billers, Tech Leaders, Card Schemes
• Identified US partners, due diligence on targets
• Detailed business plans
• Relationship with FinTech VC’s and investment areas of leading tech companies
• Commercialisation Australia grant investigation
An Entrepreneur’s Life
©2012 Emerging Thought
2011
• US trip to close deal
• Close, but no funding
• Patent investment $200+
• Lots of inspiration & ideas
• Create a new business
• Leverage learnings, cross pollinate both ways!
Payments is CommunicationPayments are data rich - share it with customers
©2012 Emerging Thought
Square’s Services Today
©2012 Emerging Thought
Square’s Doing Alrightso is Jack!
©2012 Emerging Thought
• $8b in payments• Growing Rapidly
• Raised $341m• Valued >$3B• Shareholders include
– Visa
– Citi
– Sir Richard Branson
– Starbucks– Marissa Mayer(Yahoo CEO)
– Biz Stone (Twitter Co-Founder)
– Who’s Who of VC’s
• No Australian investors?
Advance Australia Square
Wouldn’t Square be Worth Aligning With? • Quick to market - for any Acquirer
• Good fit for Tyro?
• Loyalty Operator with many merchants
• CommBank?, CAN’T or CAN?
An Entrepreneur’s Life Today
©2012 Emerging Thought
2012
‣ Working 2 Businesses is more productive!
‣ Australian patent approved, US close, Canada 2013
‣ Successful 1st round capital raising
‣ Account Switching Regulations introduced
‣ Commercialisation Australia grant imminent
‣ Pilot customers projects - still room for more!
‣ Australian product for, billers, direct to consumer brands and banks incl Account Switching service
iSwimtoo beta launched, corporate interest!
Innovation Tips
©2012 Emerging Thought
• Focus on Customer behaviour trends NOT Pure Payments
• Payments is communication - think like a publisher
• Payments is data rich - transform it to wisdom for yourself and customers
• Don’t reinvent - identify, adopt, license/invest
• Protect & Promote Intellectual Promote early - claim ownership and draw out any prior art - Ric Richardson
• Look for distribution in Payment Apps with likely long term wallet leaders, Apple, Google, PayPal, Amazon
‘You Should Not have to Think About the Mechanics of Payments” Jack Dorsey