A presentation for our Internet Marketing Class. A study case about Australian Startup Pin Payments, which tries to find a good position in the Online Payment Processing Market for Australia, Asia and The Pacific. They sell an API to process Payments... by now they seem to be targeting Australian Bussinesses and helping them to process payments withing Australia and all over the world.

1. MKTG90017, Semester II 2013
GROUP MEMBERS:
Pearl (Shun) Li: 573083
Mark Turner: 524686
Ivan Sanchez: 594783
Kristen Goulopoulos: 360214
CASE STUDY: Southern
Payment Systems Pty Ltd
(TRADING AS: PIN PAYMENTS)

2. • Formed in Perth, November 2011
• Provides an API for embedded online payments
interface and process transactions on clients
behalf
• Have expanded operations to Melbourne and
Sydney
• About 1000 Australian merchants have used the
service in testing
(Source: Bleby, M. 2013, “Payments group Braintree comes to Australia with eyes
on developers”, BRW online, 20 June.)
Start-up History: Pin Payments

3. • Access to a worldwide market
• Current lack of innovative payment solution
for online purchases
• Merchant accounts
The Problem

4. Advantage Offer/Solution
Expand Australian online businesses to
expand globally in an easy and secure way
• Pin Payments provides a PCI (Payment Card
Industry) compliant set of code for processing
online payments
• Enables retailers to process payments without a
merchant account. Only an ABN and credit card is
required
Easy implementation for Australian online
businesses
• Save mobile application & website development
costs
• Increased speed of website development
Easy & Clear payment method for Australian
online businesses and individual buyers
• Enables processing payments from any debit and
credit card bearing the Visa and MasterCard
brands outside Australia.
• Can choose the currency of payment; AUD or USD
• $50 Monthly and 3% + $0.30 transaction fee
Improve online shopping experience for
individual buyers
• Payment interface embedded in clients' website.
Consequently customers are not moved to a third
party site
Value Proposition

5. Traditional (Competitor) Business
Model
(Source: Booz, Allen & Hamilton in Merritt, C. 2011, "Mobile money transfer services:
the next phase in the evolution of person-to-person payments.", Journal of Payments
Strategy & Systems, vol. 5 no. 2, pp. 143-160.)

6. Pin Payments Business Model

7. Website & Mobile Interface

8. Code Extract [JSON CALLS]
The core Pin Payments product

9. Ref: IBISWorld Industry Report X0004, Online Shopping in Australia, March 2013
Total Online Australian
Businesses
36 655
Market Size

10. 5% online retail share would see annual revenue of over $2.5
million*
(based on estimated $40 transaction amount)
Revenue Model
$50 monthly membership
30c per transaction
+ 3% of amount

11. Competitors

12. Pin Payments
Competitors
Price Structure
Overseas
Capability
Pin Payments
(https://pin.net.au/)
3% + $0.30 per transaction
$50 membership free
Unlimited
PayPal
(https://www.paypal.com/au/cgi-
bin/webscr?cmd=_display
-receiving-fees-outside)
2.4% + $0.30 base rate per transaction Limited
Google Wallet
(https://www.google.com.au/wallet/fa
q.html)
1.9% + $0.30 per transaction or 5% (depending on favourability for
retailer)
Usual card processing fees
Requires end-user to have an account with Citibank
Limited
Ezidebit
(www.ezidebit.com.au/take-the-
tour/faqs/)
Payment structure unavailable Very Limited
Stripe
(https://stripe.com/)
2.9% + $0.30 per successful transaction
No monthly fee
Limited
Braintree
(https://www.braintreepayments.com
/)
2.4% + $0.30 per transaction
No membership free
Strong competitor in the US
Entering the Australian market
Limited
Analysis of Competitors

13. Thank you for listening
Questions?