Visa Prepaid Public Sector Opportunities

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Visa PrepaidPublic Sector Opportunities

• Carol Heath
• Head of Public Sector Prepaid
• Visa Europe
• 9th September 2009

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What is Prepaid?

• Prepaid products provide a complementary funding
  option which penetrates new payment opportunities

• Credit products draw funds from a credit line
  Pay Later

• Debit products draw funds from a current account
  Pay Now

• Prepaid products draw funds from a pre-funded
  account which can be funded from a variety of
  sources Pay Before

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Variety of Niche Opportunities

• Prepaid offers innovative payment solutions to
  segments currently relying on cash and cheques

Consumer
Commercial
Travel
Payroll
Youth
Corporate Incentives
Corporate Vouchers
Remittance
Government Disbursements
Internet
General purpose
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Visa Prepaid benefits
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• We are convinced
• Prepaid is set to be very big in the public
  sector
• Local government is the best entry-point
• Let me explain why

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Its on the radar

• A big success elsewhere
• A whole range of propositions have emerged

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It plays to todays public sector agenda

• Total accountability
• Transparency of public finances
• Comprehensive Area Assessment (CAA) rating
• The efficiency agenda
• New requirements and initiatives
• Comprehensive Spending Review
• Putting people first and social inclusion
• By definition, recipients tend to be vulnerable
• 2 million adults have no banking relationship
• An insistence on predictable, measurable costs
• A deep aversion to products with variable or
  per-transaction costs

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So, where does it fit?

• As an employer
• Payroll
• Employee benefits
• Pensions
• As an administrator
• Petty cash
• Procurement
• TE expenses
• As a distributors of benefits
• Social benefits
• Housing benefits
• Healthcare payments
• Transport subsidies
• Child support
• Emergency assistance

A role for Visa Prepaid across every dimension
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Lets think of some specifics

• Reducing the reliance on petty cash
• Reduced cash handling costs
• Administrative burden
• Insurance costs
• Cash security and distribution costs
• Improved controls
• Visibility of spend
• VAT reconciliation
• Spending reports
• Quantifiable savings
• 160k over three years
• 57 reduction in staff time over three years

Study based on 935 imprest accounts c.f. 935
prepaid cards per annum
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Lets think of some specifics

• Improving the Direct Payments process
• Definition local council payments for people
  who have been assessed as needing help from
  social services, and who would like to arrange
  and pay for their own care and support services
• So much better than alternatives (cash, cheques
  or direct debit)
• Much simpler internal processes
• No need for recipient to have a bank account
• Possible to block accounts or recoup funds
• Visibility of where/when/how payments are spent
• Potential for improved CAA rating
• Quantifiable savings
• 21 saving over three years
• 135 working days per year (84 of an FTE)

Study based on 100, 260 and 630 prepaid
accounts in years 1, 2 and 3
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Lets think of some specifics

• The same principles apply to
• Payroll cards
• Temporary or contract workers
• Employees with no bank account
• Other welfare/benefits payments
• Asylum seekers
• Tax credits
• Housing benefits
• Child support
• Disability living allowance
• Emergency funds or one-off payments

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Conclusions

• Business case based on a combination of tangible
  and non-tangible benefits
• Benefits are realised by both the council and the
  recipients
• Choice is an important factor
• Not everyone wants a bank account
• Not everyone will want a card
• Helps position a council as best in class
• A definite contribution to the citizen
  experience
• A definite factor in the Comprehensive Area
  Assessment (CAA) rating

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Any Questions