How to reduce disintermediation for transactional platforms

1. 1
Reducing disintermediation
for transactional platforms
Max Bougeard
max@paybase.io

2. When and why?
❏ Repeat, multi-touch, in-person transactions
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3. When and why?
❏ Repeat, multi-touch, in-person transactions
❏ Non-commodotised service: Deliveroo vs Book a Chef
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4. When and why?
❏ Repeat, multi-touch, in-person transactions
❏ Non-commodotised service: Deliveroo vs Book a Chef
❏ Marketplace itself delivers a small percentage of the service
provider’s total income
4

5. When and why?
❏ Repeat, multi-touch, in-person transactions
❏ Non-commodotised service: Deliveroo vs Book a Chef
❏ Marketplace itself delivers a small percentage of the service
provider’s total income
❏ Value added by the platform < Cost to use platform
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6. Low Risk vs. High Risk of leakage
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Low Risk High Risk
● Airbnb ● UpWork
● Amazon ● Sitter
● Uber ● Blablacar

7. Reason: Value - Cost Gap
1. Decrease the costs for users - REACTIVE
2. Increase the value for users - PROACTIVE
3. If you can’t do either - stop taking payments!
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8. When and how you decrease costs
1. Repeat transactions
2. Loyalty Schemes
3. Flexible Commission structure
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9. Tailored seller fees
Monthly
Revenue
10 % 7 %
< £ 500 > £ 500 > £ 1000
5 %Fees
SELLER SELLER SELLER

10. Repeat business fees
Transaction
Number
10 % 7 %
1 2 5
0 %Fees
First We Go Again Long Term

11. How to Increase Value
1. Trust
Reviews, Community, Rating Systems
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12. How to Increase Value
1. Trust
Reviews, Community, Rating Systems
2. Improve user experience
Handle disputes, visibility of contracts, sell for your sellers, allow
specific matching
3. Manage the entire process and capture transactions that
originate off-platform
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13. Do payments increase the value you offer?
1. Escrow and conditional payments
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14. Escrow milestones
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15. Do payments increase the value you offer?
1. Escrow and conditional payments
2. Instant end-to-end payments
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16. Do payments increase the value you offer?
1. Escrow and conditional payments
2. Instant payouts
3. Simplified check-out flow
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17. Carrot vs. Stick
1. Measure your metrics
2. Reward the top dogs
3. Punish accordingly
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18. The Prince & The Platform
❏ ”In general men are ungrateful, fickle, false, cowardly, covetous,
dissimulating, hungry for profit and quick to evade danger.“
❏ ”Every prince ought to desire to be considered compassionate and not
cruel“
❏ ”A Prince who cannot be both loved and feared, is more effective if he
chooses to be feared rather than loved“
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19. So...
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20. Thank you. Any questions?
Max Bougeard - Partnerships Manager
max@paybase.io