Priority Technology Holdings | Deserve

Transcription:

Rajan Annadurai (00:08):

I am Rajan Annadurai, Chief Technology Officer at Deserve.

Akash Jatangi (00:12):

Hey everyone, I'm Akash Jatangi. I'm a Director of Product at Deserve.

Rajan Annadurai (00:17):

We are a mobile first credit card platform. What it means is we provide everything for you to run a fully functional credit card from underwriting to K-Y-C-K-Y-B, the web apps, APIs and including card processing. We are the processor by itself, the credit ledger rewards, all features and capabilities that you need to run and manage a credit card.

Akash Jatangi (00:42):

Yeah, so we are an end-to-end vertically integrated stack, which means when you want to run a credit card program, you're not facing integration issues with multiple vendors or any sort of data reconciliation issues as well. We offer a great consumer experience. All your customers are in their mobile apps and we essentially allow you to give an Apple card like experience straight out of the box. Using this mobile first approach, we're able to significantly reduce fraud and disputes on the credit card program and we'd love to show you how.

Rajan Annadurai (01:14):

Perfect. Thank you Akash. So what you are seeing is my credit card, my personal credit card running on the Deserve platform. So the first thing you would see right away is transactions do not look like your typical credit card statement, right? It's enriched. They are like real logos and brand logos. So for example, I'm going to open one of my transactions Costco, so that's an actual Google Photos, Google. So I live in Palo Alto. This is Mountain View, that's the Google Photos picture of Costco. That's a real address. We don't stock MCC language, we say it as shopping. It's an in-person transaction. This is pretty cool. Next, if you go to Amazon and you buy a product the second time, it'll tell you you bought the same product sometime before. Here we will say that I've been to Costco four times, I've spent $400. These are the kind of insights we provide to customers so that it's easy to manage their transaction. Now disputes as a credit card product, you are supposed to give dispute processing. So if at all, I think this is a wrong transaction and let's say Costco has never done this and It should have been a hundred dollars, I can basically file a dispute right here from my app. If I submit the dispute, the transaction will show us it's under dispute. That will be an entire dispute workflow which happens and it'll resolve either in merchant's favor or the customer's favor. Everything will happen transparently for the customer. Now similar to this,

(03:00):

This is another pretty cool feature. We all have credit cards. We have no idea which merchants online have my card stored. So this is the list of merchants who have my card on file. So for example, at and t is my wireless carrier. I made all these transactions with at t and if I move to T-Mobile and I don't want at t to ever charge me again, I can say Block and at t won't be able to charge me again. So we provide controls to customers and also this will significantly reduce online fraud. And subscription management is another key area we all struggle with managing all our subscriptions. We clearly categorize and make. These are the subscriptions in my credit card. For example, Netflix, I spent 22.99 a month. They charge me on the 24th of each month. If I ever think I don't need Netflix anymore, it gives me an insight.

(03:56):

I've already spent $300 so I can cancel it, I'll know full visibility on what's happening. So a lot more features. We have one really, really cool feature which we do is family sharing, which is our implementation of authorized users. If you think about authorized users for the last 30 years, nothing has changed. You call your issuer, they ship you a card in three to five days. What we've made is because we are mobile first, we made it so easy to add an authorized user. So I'm actually going to add Akash as an authorized user on my card and you will see that how easy it is. I just have to enter his name and number and include his date of birth and I can set up a spend limit. So I have $10,000 in this card. I'm going to add, I'm going to set him up for $1,000, which means every month he gets $1,000. He has his own pan. I can add his SSN if I want to. I'm going to skip it now. But think about it, this is great for family. You have young kids and you want to build credit, you can add their SSN and we'll start reporting to them reporting to the bureau. So I'm going to skip and meanwhile I'm going to show Akash's phone also.

(05:43):

Hold on. Okay, So you will see Akash got a text message and why don't you Akash start?

Akash Jatangi (05:56):

Yeah. So I just got an SMS with a link saying, Hey, you have a new card and I click on it. It takes me to what essentially is a native app experience which we're powering through app clips. From a user standpoint, it's a great experience. I know I have thousand dollars, I have the ability to provision this into my digital wallet instantly, which means it's top of wallet. I'm able to use the card immediately. And other key thing, how we control fraud here is that we are checking in the background if the phone number on the device is the same as the phone number that we sent the SMS to prevent any sort of online fraud. And with all of this, what we're able to do is increase the spending available for each consumer. We're able to put more power into the hands of the users itself. And once this card is in the digital wallet, I'm able able to set it as my default card and great, it gives me the option to download the app, but let me go ahead and use the card in the first place. Now that it's in my wallet, I'm able to see the last four, it's 6478. I'm able to see all my card details and essentially make sure that, hey, the card's here, so let me go ahead and make a purchase. I have stuff in my cart ready. I feel like purchasing something from Target and with Apple Pay, I'm able to immediately make the purchase all within a few seconds straight from the SMS without even having to download the app. And it's done.

Rajan Annadurai (07:29):

And if you see it now, he just made a target purchase and I had an existing transaction, Starbucks, and he just made a purchase. And I as the owner can see all transactions. While he can only see his transactions, I can go inside, I can manage Akash's card, I can change his limit, I can pause his card, I can remove him as an authorized user, I can add an authorized user. So there's a lot more capabilities which we can do. Makes it super easy to manage our card now. So there is a lot more features and capabilities in our platform. But if you have to summarize, we are an end-to-end credit card platform. We do everything from a program management aspect of it for what you need for a credit card and also the card processing though. So we are not using a different processor.

(08:23):

And the important thing here is credit card is a crowded space. There is no real differentiation with us. You can really differentiate and stand out in the market and we have a lot more capabilities and fraud controls everything, which will reduce fraud and make it easy for you to manage this, manage your card program and everything. What you saw in our demo is available as APIs, which means you don't have to use our white label. You can directly embed within your apps if you're interested. Please talk to anybody who's wearing these hats, the gentleman over there, we can show you a lot more and tell you why Deserve is the best platform for our launching credit cards. Thank you.

Sean Kiewit (09:06):

Good morning everybody. Thanks for sticking around. I am Sean Kiewit, Chief Strategy Officer at Priority Technology Holdings. Excited to be here. Today we're going to talk about and demo our priority passport product for SMB. For all of you guys that are in the enterprise or government or corp. space, don't worry, you'll see a lot of these features are exactly what you're used to seeing, but I only have eight minutes to demo. So I had to do a smaller product. So first of all, what is operational banking? The operational banking, he might be saying, hey, it looks just like a bank account. Operational banking is the marriage of merchant account banking, infrastructure payables, and card management all through one platform. So in this one view you can have all of your enterprises. So if you're at SMB with franchises and you've got hundreds of locations, you can manage them all through.

(09:59):

I just have two here on the platform. You can also have all your accounts in one spot. Here I've got operating account and a sales tax account. I could have hundreds per location and I can also have thousands of sub-accounts attached to each account. More on that later if I dial into one of these accounts, first thing I want to talk through is collecting money. So this is the merchant side of the house. So taking payment over card, you can take card, ACH, paper check through lockbox, inbound wire, all of those through one interface. So that's your point of sale, your invoicing capability, your social website, everything coming through one place. We are a single stack to do everything. Sending money. I want to send a wire, I don't know how long it takes you guys to send a wire, but I will send one here.

(11:02):

So I'm going to send a $10 wire and away it goes. So I'll show you what that looks like when I set up that contact. This would be a vendor in the system. And you can see a little bit of what we have for options. So we have ACH wire, international wire, which isn't just for enterprise. Now a lot of SMBs asked for this, for international remittance, that's probably one of our highest growth check and virtual card. And then payment ID is you can pay passport to passport for free on our platform. So that's a big deal. So you might be thinking, well hey, that was really easy, but kind of scary, right? I'm going to give that kind of capability to my staff. What are the controls? So we brought down from enterprise the, I would say the most advanced permissioning system for SMB.

(11:56):

And you can take a look here, I'm not going to go through all of it, but you can see how granular you can get. You can push and pull anything you want in terms of a authorized user, these users can be segregated into accounts like by location or by account level. We also offer a really important tool, which is approval policy. So in this case I did that wire for $10, probably don't need approval for that, but I can create a new rule. It says, Hey, anytime I have a wire greater than 5,000, I want to go ahead and have John and Hemanchu approve. That might be, Hey, I've got procurement entering the data, I've got the business team approving the account, and maybe I have an executive that approves it after that. That actually just goes up into an approval queue. So you'll see here, I had a withdrawal that I need to approve so I can approve it, I can reject it with comments.

(12:57):

And this is a big thing we see all the time at s and b, certainly in government. And B2B is this ability to separate concerns. The modern business doesn't have a bottleneck at accounting anymore. They want to have the controls out where it makes sense, but you have to have very, very good controls, permissions and approval separation of duties to make that effective. The second thing we brought down from enterprise to SMB is our card program. So card programs, we've seen them before. This is ability for you to issue your employee cards, your contractor cards, virtual cards we offer commercial we offer and consumer. We also offer field cards where you can activate cards in the field via text approvals, via text, and do all the management through one tool. So here you can see, I can show the card, I can block or freeze the card.

(13:52):

I can manage its limits, where it can be spent, how long it's live, everything all through one interface. And as we know in the enterprise space, this is the future of payables. Like everything rolls through this capability, much more control. Very fine grained on the platform there. So the last thing I want to talk through is on the bottom here, I didn't go into this summary where it summarizes all your transactions. One of the unique things about owning the whole stack is that we can give real time access to funds. So you don't have to wait for if you're processing on the weekend, you don't have to wait until Monday, Tuesday to get your money. We have three modes real time on the transaction level. What that means is when a transaction comes in off your point of sale, through what we call forecasted settlement, we can give you access to that fund in real time.

(14:45):

A thousand dollars. In a thousand dollars, I can use it. And lemme tell you something, modern s and merchants, they work on the weekend. It's a 24 7 world, and having this capability to keep transacting over the weekend without waiting for funds is a big deal. We also offer it on batch close, settle, close and at time. So hey, I want to close everything out at midnight. So let's say you've gone through a passport and you've set up your world. You've set up your bank accounts, you've set up, by the way, you can set up a bank account with us in under seven minutes. Incredibly fast sub-accounts in less than 20 seconds fast as the API call will happen. So let's say you set up your account, you set up your environment just the way you want. It matches your ERP, it's sinking to your accounting system.

(15:36):

You've got all your cards out. What next? Well, the next thing that we offer is a real game changer, which we call funding rules. So you'll notice one I've got here called a surcharge funding rule. So we see this often in enterprise land where I have a transaction that comes through, I want to take some fees off the top of a card, for example, but I don't want to necessarily co-mingle it in my operating account. Well, with a funding rule, I can just take the transaction, take 3% off, drop it into a fee account or a sub account. I can create a rule. You notice that at the beginning I had a sales tax account. So I can say, Hey, I want to apply this to all merchants, all incoming transactions. I want you to move into my sales tax account, 8% or a dollar amount.

(16:29):

So now every time a transaction comes through, I'm going to go ahead and move that traffic over to the sales tax account. And you can have as many rules as you want. You can layer this stuff down as many rules as you need, and this as important franchising and others where you have multi-jurisdictional tax concerns and you want to have all of your money in a jurisdictional tax account so that you don't have to worry about it. So that's operational banking in a nutshell. We have a table right out back. We'd love to show you more about it. Obviously didn't go through all of the bells and whistles. And if you're government or enterprise, obviously there's a lot more than that. Anyway, thanks for your time and my minutes are up.