Case studies

 

Case Study: Acquiring Product/New Membership Platform Needed

Type of Business: Network Marketing company headquartered in the UK
Products Sold: Manufactures and distributes weight management products
New or Existing: Founded in 2007
Annual Revenue: $17m USD(2009)
International: Offices in 4 Countries including North America with distributors > 15 countries
Current Acquiring Process: Various
     a. Credit cards
     b. Payment processors
Major challenges with the Acquiring/New Membership Process:
     1. Client needed an alternative method to merchant processing for new membership enrollment
     2. The client wanted to reduce overall merchant processing costs associated with product purchases
     3. Meeting a 5 day delivery time with new product orders

The client was expanding their market focus to new territories outside the UK. However, without having international merchant processing services in place, the company needed an alternative for new membership enrollment and product purchases. Credit card charge-backs had also been a problem in the past that should be addressed with a new solution. It was also a key requirement that product delivery would be guaranteed within 5 days of the order being validated.

Global Payout’s eWallet solution:
  • An eWallet account can easily be used for product purchases eliminating all the costs associated with merchant processing and charge backs.
  • For immediately funding the eWallet, Global Payout offers the eCheck as an option to quickly draw funds from an existing bank account. The funds can be automatically redirected back to the parent company.
  • By using the eCheck option to initially fund the eWallet and purchasing product through the eWallet platform, the company was able to deliver product within 5 days and reduce merchant processing costs.

 

Case Study: New Company Launch/International Expansion

Type of Business: Network Marketing company headquartered in the USA
Products Sold: Provides web based marketing and advertising services
New or Existing: Founded in 2010
Annual Revenue: Start-Up
International: Headquarters in the USA but offers new program on a global basis
New Payment and Product Acquiring Process: Various
     a. Payments to affiliate eWallet
     b. eWallet to Bank Account for savings and paying bills
     c. eWallet to prepaid card(ordered from their eWallet) for ATM and Point-of-Sale purchases
     d. eWallet to check
Major challenges for a new company launch and international payments/acquiring product:
     1. How to provide for semi-monthly commission payouts to thousands of new members.
     2. How to support an international membership.
     3. How to provide prepaid debit cards on both a domestic and international scale.

The client was launching their new company with 1000s of prepaid memberships. However, not knowing all the countries where they would be seeing new demand, they needed to install a payment and product acquiring platform to meet anticipated global requirements. The system had to allow the client the means to make commission payouts directly through their own bank’s payout account and not through another issuing bank. There was also a requirement that the affiliate could order their own prepaid card – international or domestic – through the eWallet platform.

Global Payout’s eWallet solution:
  • Each new affiliate created their secure eWallet account for the client to deposit commissions.
  • The platform offers universal access (using a PC or mobile phone) from virtually any country around the world.
  • Many of the new affiliates utilized their eWallet account to order a prepaid card.

 

Case Study: Uniform Payment Platform Needed

Type of Business: Network Marketing company headquartered in Asia
Products Sold: Manufactures and distributes wellness products(energy and nutritional)
New or Existing: Founded in 2006
Annual Revenue: $90m USD(2009)
International: Offices in 17 Countries including North America with distributors > 100 countries
Current Payment Process: Various
     a. Prepaid Cards and checks in North America
     b. Bank transfers to countries where offices are located
     c. Checks outside of countries where offices are located
Major challenges with the Payment Process:
     1. The company is unable to process commissions based on multiple payout mechanisms
     2. High cost of inter-country bank transfers
     3. High cost of international check settlement and extended reconciliation process
     4. Need for standardized payment and acquiring platform worldwide

Even though the company was experiencing substantial growth with their unique suite of wellness products, the back office process for managing payments was not keeping up with demand. First, affiliates were not receiving earned commissions in a timely manner. And then costly stop-gap measures were put in place but still not scalable with the growth. This also had a negative impact on recruiting new sales personnel.

Average membership costs are around $450, and the average revenue per unit or ARPU is about $330. Both of these revenue streams were be jeopardized by simply not having an adequate payment platform to align with the company’s business growth.

Global Payout’s eWallet solution:
  • The client maintains control of funds (and therefore the accrued interest) until the eWallet funds are moved by the members/affiliates to their own bank account, prepaid card, etc.
  • New revenue from product sales and new membership were accelerated.
  • Substantial cost savings were realized.