RESTRICTED AUTHORIZATION NETWORKS: WINNER TAKES ALL

1. INTRODUCTION

• Consumer Behavior Shift
• Requirements of the Incentives Market
• Prepaid Program Innovations
• Restricted Authorization Networks
• Merchant Funded Discount Networks
• Decoupled Debit
• Benefits of Early Action

2. RAN IMPLEMENTATIONS EXPLAINED

3. RAN IN ACTION

• Using Open Networks To Steer Cardholder Spend

4. IMPLEMENTING MERCHANT FUNDED DISCOUNT NETWORKS ON A RAN

5. RAN OPPORTUNITIES AND DEVELOPMENTS BY SEGMENT

• Travel
• Open Money / Financial Services
• Open Gift
• Remittance / P2P
• Business Travel
• Events & Meetings
• Employee & Partner Incentives
• Consumer Incentives
• Relocation Card
• In Store Credits
• Campus
• In-Store Gift Card Sales
• In-Store Distributed Gift Card Sales
• Social Security
• Food Stamps
• TANF
• Transit (Tolls & Light Rail)
• State Unemployment
• Insurance Casualty Claims
• Benefits
• FSA / HSA
• Purchasing
• Prepaid Mobile

6. CONCLUSION

• FIGURE 1: TRACKING CONSUMERS' INCREASED USE OF DEBIT CARDS VERSUS CREDIT CARDS
• FIGURE 2: OPEN LOOP PENETRATION OF THE INCENTIVES MARKET
• FIGURE 3: CARD SPONSOR COMMITS MONEY & MERCHANTS ARE PUT UNDER CONTRACT
• FIGURE 4: RAN NETWORKS PREVENT ACCEPTANCE AT NON-PARTICIPATING MERCHANTS
• FIGURE 5: MERCHANT RECEIVE REPORTS DOCUMENTING SPEND & DISCOUNTS EARNED
• FIGURE 6: DISCOUNT VALUE IS USED TO BENEFIT APPROPRIATE VALUE CHAIN PARTICIPANTS