White Paper Pago Efectivo 2020 (inglés)

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OPPORTUNITIES In an increasingly digital and collaborative economy PagoEfectivo, the mean of payment to buy online and pay in cash in Peru and Ecuador, is agility and innovation at the service of the digital economy. And today, more than a transactional intermediary, it has become a payment solution that constantly grows, evolves and scales, generating new opportunities to do business in the e-commerce arena and giving flexibility to a world in which the habits of consumption are just in the process of transformation.

Presentation Digital transformation cannot be stopped; especially in the current context of teams working from their homes and consumers acquiring products and services on e-commerce platforms. While companies continue to face the challenge of generating experiences to satisfy consumers, clients and users expectations, without neglecting their economic results; today’s technologies favor the emerging of new business models whose value propositions have revolutionized the way we watch television, listen to music, take a taxi or order food.

The need remains the same; however, the way this demand is met has evolved based on how the experience is provided. It is necessary to offer agile, timeless and ubiquitous solutions; characteristics proper to a digital and collaborative economy, especially during scenarios of the pandemic crisis produced by Covid 19. Nonetheless, for companies and brands to fulfill this role, their products and services need to comprehend not only the way the user connects to the world through technology, but how he/she relates to it; the fears, barriers and shortages that could interrupt any interaction with the virtual world.

2

PRE SENTATION

PagoEfectivo is present in Peru and Ecuador. It will arrive soon to Chile and Colombia.

Context:

An emerging digital market

The latest study, from the National Institute of Statistics and Informatics (INEI) of Peru on financial inclusion (2017), reflects that bankarization reaches 45% of the total population, percentage reduced in the population aged 45 and over (38.8%). As to credit cards, the main mean of payment in the virtual world, only 12% of Peruvians hold them, being more men (16%) than women (7.5%), as per the Global Digital Report 2019 / We Are Social.

Around 24% of Latin America population acquires goods and services virtually. This percentage represents more than 150 million buyers, equivalent to 8% of the global total of consumers, according to data from the “Blackindex 2019�, issued by BlackSkip, a Colombian consulting firm. In Peru, according to a recent study from the Lima Chamber of Commerce (2019), there are around 6 million digital consumers, figure that grows every year by 10%. The Electronic Commerce Management of this Peruvian entity estimates that last year US$ 4,000 million in sales were made online. However, unlike other countries, the banking system in the Peruvian market is not growing at the same rate.

The Electronic Commerce Management of Lima Chamber of Commerce estimates that the coronavirus impact will increase the number of online consumers in Peru, from 6 million in 2019 to 9 or 12 million by 2020.

E-Commerce retail

sales by zones between 2015 and 2019

560.7

United States

448.7

Western Europe

64.4

Latin America

*Figures in billions of dollars Source: Statista

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CONTE X T

While e-commerce in the retail field moves sales of more than US$ 61,550 million in Latin America

(Ecuadorian Chamber of Electronic Commerce 2018). According to figures from the World Bank’s

(Statista 2019), Peru represents around 3.6% (S/ 2,339 million / Euromonitor 2019) of virtual pur-

Global Findex survey, 50% of the population is banked and only 6% of the population holds a

chases in the region, behind Brazil, Mexico, Chile, Argentina and Colombia; but above countries

credit card. At the same time, bank accounts report high levels of inactivity; from 40%, since they

that, despite showing higher percentages of internet penetration, have lower e-commerce sales,

possibly open them to receive a credit to not use them again at all.

such as Ecuador, Bolivia, Paraguay, Costa Rica, Uruguay and Puerto Rico (E-Commerce in Peru 2019 / BlackSkip).

The reasons why Ecuadorians in particular are not related to frequent bank accounts movements can be varied. Yet, among the strongest ones is the common use of cash that occurs in this On its side, Ecuador, with a total of more than 17 million inhabitants, according to the National

country, a practice generated by “problems of access, conditions, prices, marketing, or opt-out in

Institute of Statistics and Censuses (INEC) of that country, and an internet penetration of 78.8%

response to negative experiences or perceptions” from consumers, as stated in an analysis from

(Statista 2019), remains still with sales in electronic commerce that do not exceed US$ 1,000

the Economic Commission for Latin America and the Caribbean (ECLAC 2017).

Value of internet retailing By category between 2013 - 2019 Fashion (clothing and footwear) Beauty and Personal Care Home appliances Consumer electronics (technology) Health Food and drinks Home articles and furniture Multimedia products Personal accessories Pet care and supplies Toys and articles for children Video games Others TOTAL *Figures in millions of soles.

Source: Euromonitor International

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CONTE X T

2013

2014

2015

2016

2017

2018

2019

18,3 9,3 243,1 3,5 9,7 1,5 98,3 45,5 0,6 0,7 181 611,6

51,8 7,4 10,9 285,1 4,6 10,6 1,8 116,2 51,2 0,7 0,9 239,2 780,4

81,4 17,8 12,6 320,8 5,8 32,9 2,1 134,3 57,4 1,3 0,7 1 332,4 1.001,4

124,3 31,8 14,6 363,3 7,6 45,1 2,4 154,9 64,7 1,9 0,8 1,2 434,3 1.248,7

180,6 31,8 16,7 416 14,5 58,9 2,7 177,1 74,2 2,9 0,9 1,5 535,7 1.522,1

260,8 46,2 20,3 511,5 18,1 80 3,3 212,6 89,4 3,8 1 1,8 679,1 1.933,1

358 52,3 23,7 600,4 22,6 98,7 3,8 242,7 103,6 4,8 1,2 2,2 816 2.339

Internet penetration / bankarization / credit card usage A R G E N T I N A

C H I L E

44.49

19.13

92,9% 50% 27% 25% 28%

Bankarization Card Holder Female Card holders Male Card holders

CONTE X T

P O P U L A T I O N

81,9% 63% 28% 28% 28%

I N

M I L L I O N S

Internet penetration Bankarization Card Holder Female Card holders Male Card holders

E C U A D O R

P E R U

C O L O M B I A

17.4

32.36

49.27

78,8% 50%

5

M I L L I O N S

Internet penetration

P O P U L A T I O N

6% 4% 7%

I N

I N

M I L L I O N S

Internet penetration Bankarization Card Holder Female Card holders Male Card holders

P O P U L A T I O N

72,9% 45%* 12% 10% 14%

I N

M I L L I O N S

Internet penetration Bankarization Card Holder Female Card holders Male Card holder

P O P U L A T I O N

68,2% 39% 14% 11% 17%

I N

M I L L I O N S

Internet penetration Bankarization Card Holder Female Card holders Male Card holders

Source: BlackSkip / Hootsuite / *INEI

P O P U L A T I O N

even exceeding the use of debit cards (11%). In other words, considering that 24 million Peruvians own a smartphone, there are consumers who expect innovative payment solutions that allow them access to digital shopping opportunities without having to use their cards.

“Although more than 70% of Peruvians are connected to the internet, this figure is not yet translated into sales.”

On its side, the Ecuadorian Chamber of Electronic Commerce (CECE) has identified (2019) that, for Ecuadorians, one of the main reasons for not buying online is distrust in the form of payment and fear of being cheated (30% and 36%). As a conclusion, the CECE assures that Ecuador “is emerging as a country with a promising future in e-commerce, as long as they have more security, education and support from commercial users to decide to buy online”.

Likewise, the CECE reveals in said study figures that are encouraging with respect to the total number of Internet users. They state that 91%

Rolando Arellano Founder of Peruvian Consulting Firm, Arellano Marketing

of them use Internet many times a day, and 35% of such a percentage do it to buy, paradoxically. Therefore, distrust is a barrier that can be eliminated with education on the use of channels and with different means of payment, that include the use of cash in their formula.

In fact, despite the panorama of user distrust and other obstacles, according to CAPECE of Peru, e-commerce growth rates between 30% Just before the arrival of COVID-19, the Peruvian Chamber of Electronic Commerce (CAPECE) referred to Distrust as the main obstacle to the e-commerce growth in that country.

This is why, it is estimated that 22% of online purchases occur without using credit cards (67%),

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CONTE X T

and 40% are estimated for countries such as Peru and Ecuador. These figures will surely be revised upwards in the post-COVID-19 context, since e-commerce will become a formula to acquire products and services without the risk of contagion.

How is the Peruvian digital consumer?

Profile of Peruvian consumer AGE

PURCHASES MOTIVATION

22,8% Between 18-24 yrs 43,6% Between 25-34 yrs 20,6% Between 35-44 yrs

33,66% Exclusive Offers 27,31% Better Prices 16,34% Time saving

SEX

CHANNEL

54,4% Women 45,6% Men

53,15% Smart Phones 42,05% Laptops or Desktops

FREQUENCY

MEAN OF PAYMENT

CONTROL

30,6% Credit card 24,6% Debit Card 14,4% PagoEfectivo (Agency & Agents) 12,3% PagoEfectivo (Internet and Mobile Banking) 11,7% Payment against delivery 6,4% Other Options

25,23% Research in social networks 24,55% Research in google 24,47% Do not research (Only buy in realiable market stores)

17,55% Visit a physical store to observe the product.

LOCATION

PRODUCTS

50% Lima 50% Provinces

75% Tickets & Hotels 61,03% Electronic Technology 57,41% Sports & Entertainment 53,39% Fashion

8,21% Call for more information

SOURCE: CCL 2019 + CAPECE

27,78% Once a Month 11,64% Twice a Month 15,39% Sporadically

According to a study by IAB Peru and Kantar World Panel called “What opportunities do we have to grow e-commerce in

the payment method or the platform. Likewise, figures from this study show that around 25% of consumers prefer to pay in

Peru (2018)?”, it estimates that there are 60% of offline buyers, and near 70% of them do not buy online due to distrust on

cash or through a bank transfer.

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CONTE X T

How is the Ecuadorian digital consumer?

Profile of Ecuadorian consumer

FREQUENCY

(In local websites)

AGE

PURCHASES MOTIVATION

21% Between 18-25 yrs 40% Between 26-33 yrs 23% Between 35-41 yrs 16% Older than 42 yrs

53% Return Guarantee 41% Guarantee of Confidentiality of Information 29% More information on how to buy

26% Assistance during the process 16% Low costs

4% Always 65% Occasionally 31% Never

FREQUENCY

(In international websites) 14% Always 72% Occasionally 14% Never

SEX 55% Women 45% Men

CHANNEL 64% Smart Phones 29% Laptops or Desktops 5% Tablets 2% TV with internet connection

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CONTE X T

61% Credit card 17% Debit Card 10% PayPal 8% Cash / Deposits 4% Other Options

SOURCE: CECE 2017

MEAN OF PAYMENT

This data highlights a reality in which it is essential face-to-face payment solutions or those involving payment transactions without the use of credit or debit cards, so not to lose potential

In Peru, from the total of online consumers, it is estimated that 22% do not use a credit or debit card due to distrust. Being a US$ 4,000 million market (2019), we are talking about an exchange of more than US$ 800 million in cash. And, considering that only 45% of Peruvians are banked, and among them only 12% hold a credit card, we are talking about a solution for more than 15 million Peruvians who could get access to online commerce through PagoEfectivo.

digital consumers and close the selling process as well as to expand users within the digital economy for countries such as Peru and Ecuador, and in general for the entire region.

Another relevant data that further accentuates the need for alternative payment methods is preference, according to the age group, in the cancellation modalities.

According to figures in this table, despite the fact that more than 20 million Peruvians have internet connection and more than 24 million own a smartphone, cash is highly used as a mean of payment, especially among the youth population (16 to 18 years old), which represents 45% of Peruvian Internet users. Clearly, this Peruvian population is not banked, so they do not have a credit or debit card. On the other extreme, preference for cash grows from the age of 41 to 65 years old (20% to 22%), for whom distrust and ignorance are one of the main triggers to use

16-18 years

fewer digital means of payment.

In general terms, a study on the use of cash, by d-Local, called “Unlocking e-commerce in Latin America”, states that “the total opportunity for cash in Latin America equals to US$ 12 billion”.

In the region, 91% of consumer operations are paid in cash, according to a study by the “In-

19-25 years

26-30 years

31-35 years

36-40 years

41-45 years

46-55 years

56-65 years

Credit Card

25% 34% 36% 40% 38% 39% 44% 45%

Debit Card

23% 37% 43% 38% 43% 30% 30% 21%

Cash

38% 17% 14% 12% 16% 20% 22% 22%

Banking Trend

14% 12% 8% 10% 4% 11% 3% 12%

stituto de Coordenadas de Gobernanza y Economía Aplicada”, published in 2017. Since world average is 85%, the continent stands as one of the most dependent on this form of money.

While in the eurozone average is 80%, as to data from the European Central Bank, in countries like Peru, the percentage reaches 99%. These data point to an extended reality for cash, which is sustained over time and has a significant life expectancy, so means of payment such as PagoEfectivo have a promising future.

Source: iab.pe y Kantar, What opportunities do we have to grow e-commerce in Peru?, 2018

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CONTE X T

Means of payment: How do you buy in Latin America?

Currently, the consumer purchases in a marketplace and pays through a payment gateway (such as Culqi or PayU) or alternative payment systems through codes. In this universe, there are many people who are banked and who have a credit or debit card, but who feel more comfortable and secure paying in cash, transfer or through a mobile banking app.

This trend is not only proper to Peru. According to global data from the region by the consulting firm Minsait, in its report, “Trends in Means of Payment, 2018”, at least 38% of users use cash in their online purchases and more than 40% feel little or not at all secure paying purchases on line; which accentuates the value of having alternative payment solutions in digital stores. PagoEfectivo represents one of these options, because the user can pay being or not a cardholder.

Phases of digital sales We may say that digital sales can be structured in the following phases: 1. Management of the online store (Backend and Frontend, Stock, CRM, etc.)

2. Diffusion of products or services.

3. User tracking, browsing and in the “shopping cart”.

4. Purchase process (forms, gateways, etc.).

5. Transaction (verification, etc.).

6. Review of the order.

7. Billing.

8. Preparation of the order.

9. Sending the order.

10. Sales support.

11. After sales service.

12. Loyalty.

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ME ANS OF PAY MENT

Depending on the case, different needs arise within the process.

If it is the case of a growing e-commerce, they need to be out-

Digital payments evolution in Peru

sourced to comply with requests and keep the client secure and satisfied. In this sense, a decisive point and in which the user often declines for different reasons (lack of banking and / or trust) is at the payment stage.

1967

1980

Diners Club Card arrives in Peru

ATM Cards without international brands become popular:

1978

1991

ATM “Ramón” from Banco Continental

Unibanca is formed, a network of common banking services

For this reason, alternative means of payment are almost a necessity that would alleviate this phase, adding value to the user experience. Similarly, introducing this type of payment solutions becomes a great advantage. People, who prefer the use of

Mercantil, Comercio, Latino, Wisse

cash, opt for payment methods “against delivery” or “delivery online”, avoiding problems or errors incurred sometimes by the payment platforms of the marketplace, easing the payment, provided the product has reached the consumer’s hands.

While digital payments are a reality today, they have evolved since they emerged. This dynamism allowed services such as payment gateways to become what we know today and to continue adding value to the consumer experience, integrating them to different payment options.

1979

1997

First Visa Cards: Bancard, Credibank, Conticard

The Card CRM Falabella is launched; Visa net starts its operations

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ME ANS OF PAY MENT

1998

2007

2015

Procesos MC starts operations. Ripley Card is launched.

SafetyPay is founded in Peru

There are 28+ million cards issued in Peru. (2.5+ MM active).

Approx. 12% of private consumption is processed. Visa, Inc. opens offices in Lima.

2000

2011

2 017

Local launching of American Express

PagoEfectivo starts operations

Mercado pago starts operations in Peru

2002

2013

2019

Alignet starts operations

The Electronic Money Law No. 29985 is promulgated

QR Code Payment Services are offered

with Interbank and BCP.

Payu Latam enters the Peruvian market The Culqi startup is born

12

ME ANS OF PAY MENT

SOURCE: Orazio Parodi, Digital Marketing Consultant

MasterCard Inc. starts operations in Lima

Currently, in Latin America, the ecosystem of payment methods is in the shape of

“PagoEfectivo is a mean of payment to buy online without having to use a credit card. It is a fast, easy and secure way to buy in hundreds of affiliated electronic stores. So far, it is operating in Peru and Ecuador and plans for its expansion to Colombia and Chile are in place within the next six months”.

a pyramid. At the top, with a lower percentage of options, we see the use of international credit cards, followed by the local ones. Finally, in the widest part of the pyramid, we find means of payment related to cash (physical and digital). In this way, the payment alternatives that have the most potential, due to their market presence

Sandro Del Rosario

are solutions such as PagoEfectivo.

New Business Manager - PagoEfectivo

Means of payment in Latino America BRAZIL

International credit cards

Domestic credit cards

Debit and bank transfers

Cash payments

13

ME ANS OF PAY MENT

MEXICO

COLOMBIA

PERU

ARGENTINA

CHILE

How does PagoEfectivo function?

Only One payment Code (CIP)

ONLINE STORE APP MOBILE RECOVERIES CALLCENTER

You are about to end your purchase!

Mobile and Internet Banking

Company: PagoEfectivo

MASSIVE COLLECT CASH COLLECT FIELD SALES

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ME ANS OF PAY MENT

Service: PagoEfectivo (Currency) Payment Code (CIP)

Amount to be paid

30383452

S/ 50.00

Pay before 22/04/2020 – 03:00 hrs

Agents & Agencies

RK FOR PHYSICAL AND VIRTUA WE OFFER A WIDE Key players of this innovative solution are:

Each one of them offers a benefit, differentiated by the type of point and allows the users to be close at making their payment through many facilities.

WE OFFER A WIDE NETWORK FOR PHYSICA 1. MERCHANT: ONLINE STORE

2. USER: CLIENT OR CONSUMER

3. ALLIED PARTNERS: PHYSICAL AND DIGITAL

WE OFFER A WIDE NETWORK FOR PHYSICAL AND VIRTUAL PAYMENTS

In the case of the collection network, they receive a commission per transaction, as well as the

MOBILE INTERNET TODOS LOS CENTROS DE PAGO BANKING BANKING

Allied partners by country:

Collection networks become the main PagoEfectivo partners, since it is through them that money is collected and commissions are distributed to merchants.

PERU

2 COLUMNAS ECUADOR

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ME ANS OF PAY MENT

FORMATO LINEAL

3 COLUMNAS

WIDE NETWORK NETWORKFOR WE WE OFFER OFFER A AWIDE FOR PHYSICAL PHYSICAL AND AND VIRTUAL VIRTUAL PAYMENTS PAYMENTS INTERNET BANKING

consumer traffic increase at their physical facilities.

INTERNET INTERNET INTERNET BANKING BANKING BANKING

MOBILE BANKING

MOBILE MOBILE MOBILE BANKING BANKING BANKING

AGENTS & AGENCIES

AGENTS AGENTS AGENTS & AGENCIES & & AGENCIES AGENCIES

INTERNET MOBILE AG BANKING BANKING & PUNTOS A NIVEL NACIONAL

PUNTOS PUNTOS PUNTOS A NIVEL AANIVEL NIVEL NACIONAL NACIONAL NACIONAL

4 COLUMNAS Currently PagoEfectivo has the most important collection partners both in Peru and Ecuador, facilitating to their customers the electronic commerce processes from their online stores.

Our clients: Why join PagoEfectivo?

In addition, since distrust is one of the most common barriers in the segment, this payment alternative, being backed by Grupo El Comercio, a highly prestigious and reputable Peruvian media conglomerate, reduces user stress regarding the uncertainty issue. Thanks to the support of a nearly 180-year-old brand who opted for digital solutions, PagoEfectivo is today a recognized brand in Peru that conveys trust to the user.

PagoEfectivo, as a mean of payment, aims to support and promote sales in affiliated stores.

This work is carried out through different ways guaranteeing a significant scope. Databases of subscribed users are managed, to whom current offers are constantly communicated, applying a 360º Marketing strategy, in which they are covered through digital media, from public roads (posters in the Lima Metro and in the Metropolitan buses system), to radio and written press, in the case of Peru. Communication is also reinforced with signage at the collection points so that the user can identify the payment solution, as it is the case in Ecuador.

Types of Communications used by PagoEfectivo

B2B INTERNAL FOR STORES When we talk about the e-commerce market, we are talking about a constantly growing financial ecosystem. For 2019, figures of US$ 4 billion were estimated, of which PagoEfectivo moved more than US$ 250 million, with more than 650 thousand transactions. The brand is expected to double its growth by 2020.

16

OUR CLIENTS

B2C TOWARDS FINAL CONSUMER

“We offer to be an additional arm for the Store communication and marketing efforts; more than a commission and traffic into the facility, we provide support to our allies”.

Oscar Barriga Digital Marketing Manager - PagoEfectivo

PagoEfectivo participates in the most important events of the digital community and carries out actions within the commercial schedule of activities on dates that generate traction, such as:

Ecuador: • CyberMonday (August and November).

Peru: • Cybers (3 per year, during April, July and November)

At the same time, the brand participates in events such as E-commerce Day (July), supporting in-

• Sports events (soccer, important cups, etc.)

ternational speakers for relationship purposes. And, in general, more than US$ 200,000 is invest-

• Black Friday • Seasonal campaigns • National Holidays (promoting trips) • New Year • Mother’s Day (for the movement of gifts, coupons in experiences, etc.)

17

OUR CLIENTS

ed in communication, marketing, advertising and even in promotions in which the user benefits from discounts of up to S / 100 in selected stores.

PagoEfectivo is not only a payment solution but it is also a communication partner to educate the user. We may say that it takes part of an e-commerce evangelization movement, since you must first educate and teach the user as to there are multiple options to buy digitally if you want to break the distrust barrier.

Success stories: A solution that transcends

The field of action of PagoEfectivo is not limited to e-commerce. This payment solution is also found in non-face-to-face sales, call centers or in massive collections, as for example in the case of memberships. Likewise, there is the “Cash

“We are present in 95% of Peruvian e-commerce, but we detect a generalized need in the field of collection, which can be very well covered by a solution like the one we offer “

Collect” modality, through which customers are able to collect profits, as Rappi does with its Rappitenderos or Uber with its taxi drivers, who need to manage cash funds to capitalize their activity without having to go to a bank or ATM. Jaime Wu

Commercial Head - PagoEfectivo

In the ecosystem of land tickets selling by phone, there is a perfect opportunity for interprovincial transport companies. When buying a bus ticket, there are a series of doubts and details that make a phone call necessary. However, it is not possible to pay through this way unless you have a special system for it.

Thus, PagoEfectivo intervenes, being the mean by which the ticket is paid, by

18

SUCCESS S TORIES

issuing a CIP code. This is something in practice today with some clients, giving excellent results, since a high percentage of reserved tickets are finally being paid. Likewise, other sectors came to light.

One of them is the Business Process Outsourcing (BPO), when companies subcontract call services, either for the sale of products or services, or for integrating them into their debt collection system. Specifically, we would be refering to the sale of insurances, SOAT (compulsory accident insurance), subscriptions, cell phone services, among others.

Today, there are many companies that probably cannot sell digitally because they do not have a payment method, since they would need an IVR (system that enables you paying with a card), but this is not always profitable. PagoEfectivo offers these companies the possibility of integrating its payment codes into their current process, a possibility that they would not have in a simple and convenient way independently, and that besides strengthens their capabilities, their value proposition and therefore volume of sales they can generate per year.

“The potential of this mean of payment is difficult to determine.

Although we were born as an internal solution for Grupo El Comercio for its own subscription services, today we offer automation, traffic, 24/7 attention and scaling. So, what is the limit? There is no any�.

Just the simple solution of being able to deliver a code through the call, that the same employees of the company can handle, narrows the gap and makes the sales of a product or service more independent. PagoEfectivo is a solution for multichannel

19

SUCCESS S TORIES

Juan Fernando Villena

General Manager - PagoEfectivo

PagoEfectivo is a solution for multichannel sales; not only for electronic commerce in market places (digital), but also for non-face-to-face sales (by telephone via call centers, WhatsApp or social networks).

sales; not only for electronic commerce in marketplaces (digital), but also for non-face-to-face

for both the brand and the user, since it facilitates payment processes and even budget optimi-

sales (by telephone via call centers or even by mail, WhatsApp or social networks), through which

zation. The wallet is loaded with the approximate amount to be used and the user no longer

you can send a CIP payment code to close the sale.

has to worry about “separating” the money intended for transportation, and is eligible for obtaining a certain money discount.

Finally, as to the PagoEfectivo’s added value to customers, there is the possibility to place an option indicating that payment can be done through PagoEfectivo, if the traditional method the

PagoEfectivo also recognizes another opportunity pointing to be present at this market niche

user choses fails or has system problems. This makes the recovery of the sale (the closing) almost

related to collection. It is that of electronic invoicing. Nowadays, up to 7 million documents are

immediately when the user faces an obstacle.

issued daily and not all of them are necessarily invoices; they may be tickets, guides or sales notes, which coexist in an ecosystem with a high level of credit sales.

PagoEfectivo growth opportunities.

Today, beyond traditional sales and companies, FinTech companies have emerged, a new

An example is the textile sector in Gamarra, an area of Lima where a large amount of income is

member of the financial system, which combines technology with investment. These technology

moved on credit and where a pilot is now being run. This pilot consists in having PagoEfectivo

companies are committed to capturing above all a young and unbanked audience. Furthermore,

present within the invoice or in a platform in which the person, who owes money, can see the

this public is highly populated by freelancers -or independent workers-, who are looking for “zero

invoices that he/she owes and choose which one to pay, being able to do so with a CIP code. In

fee”, something that PagoEfectivo can offer in their transactions.

this sense, returns could be optimized and especially their recording.

Likewise, the applications that provide different services for daily use are betting on offering

On the other hand, there are also platforms such as Sieweb, an electronic services operator

“prepaid” options through “wallets”.

in which PagoEfectivo is present as a mean of payment, for more than 400 schools in Peru, and with more than 300 thousand parents therein registered. Those parents may prefer to pay monthly obligations in cash with a CIP code. The idea is to replicate this type of model to get

Thus, PagoEfectivo is an applicable solution both for payments to be made and for the “re-

access to international systems in which PagoEfectivo can be integrated, becoming a shorter

charging” of these wallets. This way works now for Uber and it has been a successful modality

route to enter the region.

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SUCCESS S TORIES

COVID-19

The Mandatory Starting Point for Digital Transformation

The consumer will be different after COVID-19. But he/she had already changed and since a long time ago. Around 200 countries are experiencing the social and economic effects of coronavirus expansion. An infection that in addition to impacting health systems, has hit the way we were used to interacting. But electronic commerce, online transactions and payment gateways already existed before we were forced to stay at home for long preventing periods.

Thus, opportunities for PagoEfectivo arise in different sectors,

Today, as face-to-face sales have come to a standstill and

Therefore, the possibility of connecting brands with people and

such as health, education, consulting services, among others,

online purchases will become one of the few ways to reach

platforms with users will not stop. On the contrary, the process

as in all those in which the client does not have access to

products and services, digital solutions and payment methods

will accelerate, forcing the technology areas of companies and

virtual payment methods or is not familiar with online trans-

are required more than ever for the entire unbanked popu-

people in general to make the definitive leap to the digital eco-

actions. Beyond this situation, many people will continue

lation. In this sense, the PagoEfectivo formula will become

system. Under this approach, the value propositions of payment

prefering to make their payments in cash. But, they will go to

the gateway for those companies selling online or for users

solutions will be measured in this new scenario by their useful-

facilities closest to their home, so as not to have to move or

seeking to acquire products and services without having to

ness in this volatile, complex and uncertain reality.

stand in long lines in areas at risk of contagion.

have credit or debit cards.

21

COV ID -19

Digitize your Sale and Collection processes 4 ways to digitally sell and collect

In this context, in which the so-called ”New Normal” is imposed, in which people will purchase products and contract services online, there are many sectors that can take advantage of PagoEfectivo to digitize their sales.

1 • • • • • •

2

DIRECT SALES

Food Hygiene & cleaning supplies Health Education Fashion Technology

B E N E F I T S

SALE BY PHONE OR MESSAGING

• Call Center • Social Networks • Whatsapp

O F

U S I N G

3 • • • •

AUTOMATION OF COLLECTION PROCESSES

COV ID -19

Memberships Building Administration Debts Collection Service payments, fees, tuition and monthly quotas.

4 • • • • •

SALE AND COLLECTION IN THE FIELD

Collect and recovery Managers Sales Force Orders with Payments Against delivery Collection for companies and institutions in general

P A G O E F E C T I V O

XPANSION OF YOUR PAYMENT NETWORKS: E INTERNET BANKING, MOBILE BANKING, AGENTS & SMALL STORES

22

MASSIVE COLLECTION

TIME AND MONEY SAVING, ELIMINATING MANUAL PROCEDURES REMINDERS OF PENDING PAYMENTS

“In search of improving PagoEfectivo experience, we have integrated the digitization of contracts and documents, optimizing processing times. The process will allow the video signature, with biometric technology”.

Pamela Peña Deputy Manager of Operations PagoEfectivo

© PagoEfectivo Perú 2020 - All rights reserved

PERU pagoefectivo.pe contacto@pagoefectivo.pe ECUADOR pagoefectivo.ec contacto@pagoefectivo.ec