Wednesday, July 7, 2010

Welcome to Dragonpay!

As the Philippine e-commerce scene starts to pickup, we are beginning to see the rise of online payment solution providers. Mozcom PayEasy is one such excellent system which offers a complete suite of payments covering credit cards, PayPal, Bancnet and Megalink ATM cards, and mobile payments like Globe G-Cash and Smart Money. There are also the traditional banks which provide credit card processing online. So you might wonder -- is there really a need for yet another online payment system?

A large majority of online transactions today are done using credit cards. This severely limits the market because only about 4% of the Philippine population owns a credit card. Merchants who focus on this market are barely scraping the surface of a larger market of young people with no credit history, or even a bank account.

Here are some more interesting information based on market studies
  • More than 70% of the world population does not have a credit card [PayPal]
  • 75% of Internet users do not like to give out their credit card info [Pew Internet]
  • More than 75% of online shoppers have access to online banking [Forrester Consulting]
  • Internet retailers offering multiple payment options see a conversion rate increase of 20% [Quality Research Associates]
  • 4% of international orders turn out to be fraud vs. 1.1% for domestic [Cybersource 2009]
Dragonpay was created specifically to allow this broader market to buy goods and services online through the following channels:
  1. Online Banking - anybody with a local bank account can apply for Internet banking from their bank for free. Using this facility, they will be able to make online purchases from Dragonpay-affiliated merchants in real-time.
  2. Over-the-Counter Banking - customers can go to any branch of a bank that we support and make an over-the-counter deposit. In a matter of minutes, our system will detect the payment and appropriately notify the online merchant that a payment has been made. We expect to have more than 3,000 bank branches in the network where customers can go to make a deposit/payment by year-end 2010.
  3. Over-the-Counter, Non-traditional Payment Centers - we will be working with convenience stores, pawnshops, remittance centers, business centers and Internet cafes to allow our customers to make their payments there. We will notify the merchant in near real-time once a payment is made.
As an alternative payment provider, Dragonpay will work side-by-side with the other, more "traditional", payment providers. We do not plan to supplement them but to complement them. After all, at the end of the day, the common goal is to develop the local e-commerce industry.

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