Learn from e-payments experts at WEX Bank, Expedia and HotelTonight who will discuss how single-use virtual accounts can help drive efficiencies in the payment and settlement process for OTAs, traditional agencies and tour operators.
Topics include:
domestic and global adoption trends and drivers
tips from inside Expedia and HotelTonight implementations
choosing the right partner and best solution
Panelists for this FREE webinar are:
Monica Fallo, WEX Bank, director US sales
Chris Richter, Expedia, senior project manager
Jared Simon, HotelTonight, COO
Kevin May, Tnooz, editor and moderator
Gene Quinn, Tnooz, CEO and producer
2. K
Kevin May Gene Quinn
Editor & Moderator CEO & Producer
3. Panelists
Monica Fallo Nicole Tackett Chris Richter Jared Simon
Director Manager, Sr Project Manager COO
WEX Bank Payment Solutions Expedia HotelTonight
WEX Bank
6. Agenda
Recent trends in ePayments
Single Use ePayment: How it works
Case study: Expedia
Case study: HotelTonight
Best practices and implementation considerations
7. Travel Industry and ePayments
…Ahead of the curve Percent B2B Payments
Electronic
80%
44%
GPCC
emerge as
default for
business
UATP travelers SWIFT SUGAs All Sectors* Travel**
’30s ’60s ’70s ’80s ’90s ’00s ’10s
ATC, IATA, SITA, ARC
* 2012 RPMG Benchmark Survey
** WEX internal estimates
10. What Is a Single Use ePayment?
No physical plastic (It’s virtual!)
Transaction-specific, one-to-one payment
Each authorization request is evaluated
against a range of controls (transaction
and user level)
A secure payment method that is accepted
globally by all suppliers via existing card
terminals
Captures a range of user defined data
associated with each payment
Automated reconciliation reducing
incidences of payment fraud and disputes
11. Travel Booking, Early Adoption Drivers
Volume of transactions
Paying broad, disaggregated supplier base
Global marketplace
Comfort level with new technologies (particularly OTAs)
Card accounts existing role in travel booking
Broad acceptance of cards in the travel supplier market
16. Case Study: Expedia
• Expedia Fast Facts
– Around 55M annual transactions
– Pay over 111K vendors
• Payment Needs
– Improve control
– Automate accounting reconciliation with true single use
solution
– Support growing international transactions
• Solutions Leveraged
– WEX Purchase Log with Web Services
– Proprietary electronic invoicing – Expedia Pay
17. Case Study: Expedia
• Implementation
– First run in 2008; broader rollout in 2010
– Launched Expedia Pay in late 2005
• Results
– Reduced headcount by 3% while also processing a 61%
increase in booking volume
– Reduction in paper payments
– Significantly improve vendor relationships
18. Case Study: Expedia Insight
• Keys to Success
– Focused industry experience & knowledge
– Identifying a true single use product
– Ongoing relationship with a committed partner
21. Case Study: HotelTonight
• HotelTonight Fast Facts
– Mobile app launched in 2010
– Same-day mobile booking of distressed hotel inventory
• Payment Needs
– Solution that is scalable, and low-cost
– Eliminate inefficiencies of paper payments
– Seamless, real-time presentment of payments
• Solutions Leveraged
– WEX Purchase Log with Web services
22. Case Study: HotelTonight
• Implementation
– Very quick implementation, including internal
training
– Technology team wrote to WEX API in a couple
of days
• Results
– Nearly all payments are electronic
– Met scalability objectives
25. Four Critical Success Factors
1. Executive sponsorship
2. Consultative partner and engagement
3. Customization Optimization
4. Portfolio approach
26. 1. Executive Sponsorship
• Payments are a strategic initiative
• Empower the organization to welcome “what is possible”
27. 2. Consultative Partner
• Whiteboard sessions
• Lead business process mapping
• Proactive versus reactive orientation
• Align stakeholders:
– “Mr. VP Finance, meet Ms. VP Operations”
28. 3. Customization & Optimization
• Direct access to product, sales engineers and IT experts
• Flexible payments technology that interfaces with existing
processes
• Speed to market; nimble development
29. 4. Portfolio Approach
Card-less/Virtual
Credit limits for exact payment amounts
Append data
1 REAL TIME
1+ BULK, OR
BATCH A/P
o Transaction-specific o Require vendor enrollment
o Vendors process through card terminals o Buyer-initiated, direct deposit
o Can leverage approval workflows o Interfaces directly with ERP; approval workflows from ERP
o One-time use, secure account number o One -time use, secure account number
32. Thank You!
Replay and presentation from today’s webinar will be
available at www.tnooz.com
Please send your questions to kevin@tnooz.com
Notas do Editor
WEX stats: - Formerly Wright ExpressExclusively commercial paymentsGlobal presence with offices in North America, United Kingdom, Australia, New Zealand, Brazil$25+ billion annual payments; 350,000 business customersBoth proprietary and open loop network solutionsPioneered single-use payment technology to address the complexity of reconciling payments in the online travel industryFour of the top five U.S. online travel agencies are WEX customers
The Travel Industry has always been ahead of the curve with Electronic Payments, with multiple options for a breadth of situations… bringing Buyers and Sellers together in the travel space from a payments perspective.Continue to evolve and innovate.
Although the Travel segment has led the way…From a comparison perspective we are seeing a consistent strong adoption across all industries. Trending at a 20%+ annual growth rate over the past few years. Looking back just a few years to 2009 as compared to projected 2014 adoption we see a projected 350% (enormous) increase in the number of organizations using epayments.Adoption data specifics:2007 14.5 2009 16.1 2011 34.9 2012 43.6 2014 56
Tell story as to why OTAs, TMCs, Tour operators were quick to see value
Add’l points:Ownership of payments can be tenuous. Many disciplines can be involved and take a leadership role:Treasury, Finance, or Procurement?
Whiteboard session-- thorough needs assessments-- demonstrate mapping to their processes; not re-engineering to fit our frameworkAlign stakeholders-- In some situations, we find ourselves building bridges across organization where collaboration is not traditionally deeply entrenched.-- Success requires cross-discipline collaboration and commitment.
Ensure multiple options for your vendors to maximize enrollmentPush-pay (direct deposit into supplier’s account)Pull-pay (supplier runs a credit card transaction upon notice)Avoid situation of A/P clerks becoming reconciliation clerksFor B.I.P., card acceptance rates can make a difference