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 TRANSACTION LIFECYCLE C. GOOD TO TRANSFER A. GOOD TO FINANCE B. GOOD TO PAY 1. GOODS Title transferred to Buyer PO BL TITLE 2. INFORMATION Goods shipped to Trade Terms Buyer uses PO to apply Funds released upon buyer Agreed for Financing title exchange 3. PAYMENTS LC LC used as payment guarantee to seller Flow of goods, information, and payments do not interoperate. ↓ TRANSPARENCY COSTLY RISK OF FRAUD INEFFICIENT
Resolving Pain Points Commercializing & Digitizing Trade Flows In Commodities BRINGING CONSUMER EXPERIENCE TO TRADE FINANCING Disjoint Listing, Trading, Payment & Financing Integrated End-to-End Digital Experience Pay Now Pay Later Insufficient funds in account. Pay later. Please select: Please select: 60 days at 16bps Pay 3 bps ($x) for overnight credit to complete transaction 90 days at 24bps 180 days at 48bps Cancel transaction Other: days at 96bps 360
Resolving Pain Points An E2E Digital Trade Infrastructure MasterCard’s Solution ( 三 流 和 一 ) ENABLERS TRANSACTION LIFECYCLE A. GOOD TO FINANCE C. GOOD TO TRANSFER B. GOOD TO PAY 1.Super primary key 2. Authentication/Rights 1. GOODS Management Title transferred to Buyer 3. Ledger that PO BL interoperates between 3 2. INFORMATION TITLE flows Trade Terms Goods shipped to Buyer uses PO to Funds released upon Agreed buyer apply for Financing title exchange 4. Broad ISO Adoption 3. PAYMENTS LC LC used as payment guarantee to seller Need for a solution that allows interoperable flow of payment, information, and goods. ↑ TRANSPARENCY ↑ SECURITY ↑ EFFICIENCY ↓ COSTS
Enabling An E2E Digital Trade Infrastructure STANDARDS EXECUTION 1 2 1 2 KYC/ TECH/SECURITY CONNECTION SUBSCRIPTION CERTIFICATION STANDARDS 3 3 4 4 LEGAL / TITLE LIABILITY BUREAU/ ENABLEMENT TRANSFER FRAMEWORK ARBITRATION
Enabling An E2E Digital Trade Infrastructure Mastercard’s Mission In Trade C C Buyers / Marketplaces L W L W Sellers Carrier Logistics Warehouse C L PORTS W Powered by Buyer Seller Customs / Trade Regulator Eco-System Banks Digital Trade Financing Traditional Trade Financing Paper-based Digital Moving from a multi-touchpoint, paper-based approach to an authenticated digital workflow.
Range of Efforts That Will Converge Scale Cross Border National Trade Platform Solution Depth Domestic IDA Trade Safe Pilot Commercial Readiness Point Solutions Eco-system Participation Physical – Financial Decoupled Physical / Financial Proc. Connectivity
Bolero has led the switch to digital trade ….... $80bn+ Annual transaction value 1.5m Completed payment presentations 19,000+ Monthly presentations 65+ Banking Groups World’s electronic Bill of World’s electronic Lading document presentation 58 Trading Countries under eUCP rules 2016 Best trade finance software provider in Asia …and their critical logistics Trusted by our global ...to transact with their global trade banks… corporate clients partners.
Current - Full Electronic Presentation For LC Merchant’s Banks Issuing Banks Advising Bank Issuing Bank Additional bank connectivity through MasterCard All parties connected through Bolero Seller Buyer Release Request Carrier Message Flow LC ePresentation Document Management Preparation Management
Bolero Evolving Beyond Commodities On LC … Seller Buyer Trade Banks and Trading Finance Funding Networks Providers Service Logistics Providers
Our Joint Collaboration Delivers Real Advantage…. • • For Banks For Buyers – Harness existing credit lines – Easier to onboard new clients – Ability to flex settlement window – Easier to administer – Globally understood product – Greater margin potential – Competitive pricing – Ability to tailor rates – Promotes greater digitisation • For Sellers – Transparent credit clearance – Opens up new trade flows – Easier to administer – Reduces admin costs – Paid faster – Reduced management burden – Automatic reconciliation
Visit Us On Stand 28 In The Main Exhibition Hall Gerald Sun Neil Johnson Vice-President, Business Development, Trade & Industry Head of Business Development Asia Pacific Asia Pacific MasterCard Worldwide Bolero International
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