FAST, SECURE .AND RECONCILED! How MasterCard is changing the way we - - PowerPoint PPT Presentation

FAST, SECURE ….AND RECONCILED!

How MasterCard is changing the way we think about commercial payments

Gerald Sun

Vice-President, Business Development, Trade & Industry, Asia Pacific MasterCard Worldwide

Neil Johnson

Head of Business Development, Asia Pacific Bolero International

FAST, SECURE ….AND RECONCILED!

How MasterCard is changing the way we think about commercial payments

– MasterCard shares its vision for true end to end digitization in the commercial payment space – The challenge and the opportunity in global payments in the new economy – How strategic partners like Bolero are helping to deliver this vision for MasterCard’s partner banks

Pain Points In Trade

Disjoint Flows

INEFFICIENT COSTLY RISK OF FRAUD

↓TRANSPARENCY

Flow of goods, information, and payments do not interoperate.

• A. GOOD TO FINANCE
• B. GOOD TO PAY
• C. GOOD TO TRANSFER

TRANSACTION LIFECYCLE

• 1. GOODS
• 2. INFORMATION
• 3. PAYMENTS

LC PO BL TITLE

Trade Terms Agreed Buyer uses PO to apply for Financing Goods shipped to buyer LC used as payment guarantee to seller Title transferred to Buyer Funds released upon title exchange

Resolving Pain Points

Commercializing & Digitizing Trade Flows In Commodities

Disjoint Listing, Trading, Payment & Financing Integrated End-to-End Digital Experience

Pay Now Pay Later

Pay later. Please select: 60 days at 16bps 90 days at 24bps 180 days at 48bps Other: days at 96bps 360 Insufficient funds in account. Please select: Pay 3 bps ($x) for overnight credit to complete transaction Cancel transaction

BRINGING CONSUMER EXPERIENCE TO TRADE FINANCING

Resolving Pain Points

An E2E Digital Trade Infrastructure

Need for a solution that allows interoperable flow of payment, information, and goods.

• A. GOOD TO FINANCE
• B. GOOD TO PAY
• C. GOOD TO TRANSFER

TRANSACTION LIFECYCLE

• 1. GOODS
• 2. INFORMATION
• 3. PAYMENTS

LC PO BL TITLE

Trade Terms Agreed Buyer uses PO to apply for Financing Goods shipped to buyer LC used as payment guarantee to seller Title transferred to Buyer Funds released upon title exchange

MasterCard’s Solution (三 流 和 一)

1.Super primary key

• 3. Ledger that

interoperates between 3 flows

• 2. Authentication/Rights

Management

• 4. Broad ISO Adoption

ENABLERS

↓ COSTS ↑ EFFICIENCY ↑ SECURITY ↑ TRANSPARENCY

Enabling An E2E Digital Trade Infrastructure

EXECUTION STANDARDS

KYC/ CERTIFICATION

1

TECH/SECURITY STANDARDS

2

LIABILITY FRAMEWORK

4

LEGAL / TITLE TRANSFER

3

CONNECTION

1

SUBSCRIPTION

2

ENABLEMENT

3

BUREAU/ ARBITRATION

4

Enabling An E2E Digital Trade Infrastructure

Mastercard’s Mission In Trade

Buyer Seller Traditional Trade Financing

L C W

Logistics Carrier Warehouse

L C W

Paper-based Digital

Digital Trade Financing

L C W

PORTS

Powered by

Buyers / Sellers Banks Trade Eco-System Customs / Regulator Marketplaces

Moving from a multi-touchpoint, paper-based approach to an authenticated digital workflow.

Range of Efforts That Will Converge

Solution Depth Scale

Cross Border Domestic

Point Solutions Physical – Financial Decoupled Eco-system Participation Physical / Financial Proc. Connectivity

Commercial Readiness National Trade Platform IDA Trade Safe Pilot

Bolero has led the switch to digital trade …....

World’s electronic Bill of Lading World’s electronic document presentation under eUCP rules

$80bn+ Annual transaction value 1.5m Completed payment presentations 19,000+ Monthly presentations 65+ Banking Groups 58 Trading Countries

Trusted by our global corporate clients ...to transact with their global trade banks… …and their critical logistics partners. Best trade finance software provider in Asia

2016

Advising Bank Issuing Bank Carrier

LC Management ePresentation Management

Current - Full Electronic Presentation For LC

Buyer Seller Release Request

All parties connected through Bolero

Message Flow

Document Preparation

Additional bank connectivity through MasterCard Merchant’s Banks Issuing Banks

Bolero Evolving Beyond Commodities On LC…

Banks and Funding Providers Logistics Service Providers Trading Networks

Buyer Seller

Trade Finance

Our Joint Collaboration Delivers Real Advantage….

• For Buyers

– Harness existing credit lines – Ability to flex settlement window – Globally understood product – Competitive pricing

• For Sellers

– Transparent credit clearance – Easier to administer – Paid faster – Automatic reconciliation

• For Banks

– Easier to onboard new clients – Easier to administer – Greater margin potential – Ability to tailor rates – Promotes greater digitisation – Opens up new trade flows – Reduces admin costs – Reduced management burden

Visit Us On Stand 28 In The Main Exhibition Hall

Gerald Sun

Vice-President, Business Development, Trade & Industry Asia Pacific MasterCard Worldwide

Neil Johnson

Head of Business Development Asia Pacific Bolero International