PayWise Limited

To many persons, eCommerce is the use of credit cards only to pay for goods and services online. This is not the case. According to Wikipedia: eCommerce, is the trading or facilitation of trading in products or services using computer networks, such as the Internet or online social networks. Two noticeable things about the definition are that it is broad and the mode of payment is not prescribed.

There are three main aspects to eCommerce; order management, payment processing, and delivery. The purest form of eCommerce is where all three stages occur online. For example, in the purchase of digital goods like an ebook from Amazon. You order the ebook online, make the payment online and receive delivery of the ebook via the internet. Most orders (of physical goods) from Amazon are two parts online and one part offline. That is, you place the order and make the payment online. However, delivery occurs offline. This is the most common form of eCommerce.

Other forms of eCommerce include the order of goods online only. Payment and delivery occur offline. For example in Germany, invoicing is the most popular means of payment for online shopping. Invoice payments rank first followed by credit card payments. With invoice payments, the customer orders the goods online and receives delivery of the goods including an invoice. The customer either pays for the goods upon receipt or at a later point in time. Typically, payments are made within 10 – 15 working days. Sweden is another country where invoice payment for online purchases is popular.

The beauty of eCommerce in these countries is that popular modes of payment are based on cultural factors. Hence, online businesses in these countries have adapted to modes of payments that are acceptable to the population. In fact, they provide more than one payment option to meet the preferences of customers.

These different payment modes are not as popular in the North American model of eCommerce that we are familiar with. Nevertheless, they form a practical way of getting paid.

In Trinidad and Tobago, a similar pragmatism should apply. Credit card penetration in the US is about 66%. Hence, the credit card-centric payment model. Locally, according to the Central Bank, credit card penetration is about 20%. Including prepaid cards the figure is 25%. This means that over 75% of the adult population or roughly 824,000 persons have cash to spend but no means to conduct payments online. Online businesses must realize that the acceptance of credit card payments only, may impose an artificial limit on their customer base.

Paywise was created to provide a cash payment option for eCommerce in Trinidad and Tobago.

Signing-up for Paywise is very straightforward. The process has three stages: contact, application and activation.

 Contact

Prospective merchants contact Paywise via telephone, email or the pre-registration form on the website.  Using the pre-registration form, the merchant leaves his or her name, email address and telephone number. Once the information is received contact is made within 24 hours. Alternatively, prospective merchants may call 223-9422 or send us an email at [email protected].

 Application

The application process for Paywise is similar to opening a bank account. Firstly, all merchants must have their businesses registered with the appropriate authority. Any registered business can use Paywise: sole proprietor, partnership, company, non-profit, cooperative society, etc. To utilize Paywise, merchants must submit the appropriate application requirements. Requirements for a limited liability company and a sole trader can be found on the website. Requirements for other business types are provided upon request.

 Once the merchant agrees to sign up we send the application email. The application email contains the registration requirements, a link to create the Paywise online account, the application form and an account operation letter. The last two requirements must be completed in hard copy. Soft copies of the application documents may be sent to us.

Activation

The Paywise account is activated once the documents received are in order and the online account is created. Activation means that merchants can begin to accept payments using Paywise. This normally occurs within 24 hours or by the next business day.

Paywise conducts a test transaction after the account is activated. This shows that the account is active and ready to accept payments. Following the test, Paywise will send a copy of the receipt to the merchant. Shortly afterward, the merchant will receive notifications by SMS and email of the test payment. The merchant can then log into his or her Paywise account to view the test transaction. The test transaction allows merchants to see how Paywise works.

The speed of the sign-up process depends on how quickly the merchant submits the completed documents. Merchants have contacted us, completed the application requirements and had their accounts activated within 24 hours.

Branding is everything. Businesses want their brand messages to be prominent throughout the customer buying and payment experience. Hence, merchants have requested that their logos be included on the Paywise payment slip. Knowing the importance of branding to our merchants we have agreed.

Now Paywise offers co-branding on payment slips. This feature is available for merchants that utilize the manual payment method only. See the co-branded payment slip below.

Co-branding is free of charge to merchants. To include your logo on the payment slip send us a clear, high-resolution image of your logo. We will add the logo to the payment slip and send the co-branded payment slip to you. 

Let your brand reach further.

Paywise is a straightforward and simple system that allows businesses to receive cash payments from customers anywhere in Trinidad and Tobago. It is a safe, convenient and reliable way to receive cash payments from customers. We have been operating since 2013 and have satisfactorily facilitated payments from customers to many businesses.

Locally, over-the-counter payments are the predominant means of payment. Over-the-counter payments comprise cash payments and electronic payments. Electronic payments are payments made using a credit card or a debit card via the LINX network. Less prevalent forms of payment to businesses are cheques, bank account deposits, and direct account transfers.

In over-the-counter payments customers choose the means of payment; cash or card. The use of cash, card or both is based on several motivations. The important thing is that customers have a choice and they select the best means of payment for them, at that point in time. This is extremely convenient and practical for customers.

More businesses are accepting payments from customers outside of the store; some have no physical store. They deliver or ship goods to customers and may accept payment-on-delivery. Payment-on-delivery takes the form of cash payment or electronic payment via a portable LINX machine. Some businesses do accept credit card payments online. However, relatively few businesses offer this payment option.

Accepting payment-on-delivery requires a face-to-face interaction. That is, a business representative must meet the customer. There are many instances when a face-to-face encounter is not practical or necessary. For example, when payment has to be made before the goods are shipped or when cash simply has to be collected from the customer.

Today businesses are selling to more customers outside their geographic location. Hence, it is more practical to have locations closer to customers at which payments can be made. The benefit to the customer is greater convenience. Businesses benefit by being able to receive payments from any customer across the country at a nominal transactional cost.

These are the benefits that Paywise provides to its clients every single day. In so doing, we have added another option to the local payment landscape. We allow businesses to focus on generating sales anywhere in the country, knowing fully well that how they receive payments is a done deal.

 

The Paywise Account Number is a 12 digit number that can be used to identify a merchant, a customer or a transaction. As mentioned in a previous article there are 3 payment methods in Paywise: Manual, Automated and Integrated. The type of account number used depends on the payment method.

Identify a Merchant

The Paywise Account Number is used to identify the merchant. It represents the account number assigned to the merchant by Paywise. The merchant provides customers with the Paywise Account Number to make payments at the LOTTO VIA agents. This number is fixed for all payment transactions to the merchant. This number type is used for the Manual Payment Method only.

Identify a Transaction

In this case, the Paywise Account Number represents a transaction number generated by the merchant. Each customer is given a unique transaction number by the merchant. Each time a customer conducts a transaction a unique number is given to him to make a payment.

Identify a Customer

The Paywise Account Number represents a customer. Some organizations, like associations, want to identify payments made by members. So the Paywise Account Number represents the member’s identification number. This enables the organization to recognize members by name whenever dues are paid and easily reconcile their accounts.

Two Account Number Types

Generally, a merchant will use a single account number type. However, two account number types (transaction and customer) can be used. For one off transactions or first time customers the merchant can issue a transaction number. However, for repeat customers the merchant then issues a unique customer number to each customer.

For example, an association may issue a transaction number to an applicant in order to pay a registration fee. Once the application is processed and accepted the association then issues a customer number to the member. The member uses this number to make all subsequent payments.

Merchants that select the Automated Payment Method may use both the transaction and customer account types.

To manage the account numbers in Paywise is a very easy and simple process. Upon registration, we provide merchants with guidance on how to do so.

Persons can make payments using the Paywise payment slip. The payment slip contains the product code which identifies Paywise on the NLCB LOTTO terminal system. Also, the payment slip has the merchant’s account name and account number on the Paywise system plus Paywise contact information. A sample of the payment slip is shown below.

A payment slip is generated and sent to Paywise merchants upon registration. The payment slip is in an image format.

Merchants send the payment slip to customers so that they have the information to pay to the merchant’s Paywise account.

Normally, the payment slip is sent via WhatsApp or Messenger. It can be sent by email or other electronic means. Since the payment slip is an image, customers can save it on their mobile phones as a photo.

To make a payment customers simply show the image on their phones to the NLCB LOTTO agents. There is no need to print the payment slip.

Although we recommend the use of the payment slip to make payments it is not always necessary. Many merchants only provide their customers with the Paywise account number. Customers go the NLCB LOTTO agent, state they are making a Paywise payment, and present the account number and cash to make the payment. This works.

Paywise is a new system and there are over 900 agents.  Some NLCB LOTTO agents may be doing a Paywise transaction for the first time. In such a case, customers may experience delays in making the payment, if the payment slip is not presented to the agent. As mentioned above, the payment slip has the product code which the agent can use to identify Paywise on the NLCB LOTTO terminal system. Once the agent is familiar with Paywise payments the payment slip is not necessary.

Many merchants do not use the payment slip. They provide the customer with the account number only. If the customer experiences any delay in making the payment the payment slip is sent to the customer. Alternatively, the merchant calls us and we walk the customer through the process. Since the payment process is very simple, few calls are received.

All businesses do not confirm payments in the same way. This is mainly due to the size of the business. A small business may confirm payments manually. On the other hand, a large business may need a payment system that communicates with their ordering system when payments are received. Paywise can address the payment confirmation needs of small to large businesses.

There are 3 ways to confirm a payment Paywise: Manual Method, Automated Method, and Integrated Method. With each method, the merchant issues the customer a number to make the payment.

Manual Method

The merchant issues a fixed number to all customers. In other words, all customers make payments using the same number. To confirm the payment, the customer must provide the merchant with a copy of the payment receipt.

Usually, the customer sends a copy of the receipt using WhatsApp or Messenger. The image must clearly show the receipt number and other payment information.

The merchant then logs into his or her Paywise account and verifies the receipt information against the Paywise payment transactions.

Automated Method

The merchant issues a unique number to each customer. There is no need for the customer to send a copy of the receipt.

An example of how this works: Each customer is given a unique number to make a payment. This number could be a customer number or an order number. The customer uses the unique number to make the payment at the NLCB LOTTO agent.

When Paywise processes the payment the merchant knows exactly which customer or order was paid. The merchant has to view the list of payment transactions to identify paid transactions.

Integrated Method

Like the automated method, the merchant issues a unique number to each customer. However, when payments are processed Paywise will post the payment information to the merchant’s website.

With the integrated method, the customer does not have to provide a copy of the receipt and there is no need for the merchant to check the transactions on Paywise.

By posting the payment transactions to the merchant’s website, the merchant system can automatically identify paid transactions and update the transaction status accordingly.

All three methods are available free of charge to Paywise clients.

 

What service does Paywise provide?

Paywise provides businesses with a safe, convenient and efficient way to receive payments from their customers. Payments are made at NLCB LOTTO agents and the money received is transferred directly to the business bank account.

Our website is www.paywise.co.

When was Paywise established?

Paywise has been in business since 2013.

Is Paywise right for my business?

Some good reasons to use Paywise:

1. Your business sells online and/or has customers across the country
2. A safe and efficient way to receive payments is needed
3. Customers prefer to pay using cash
4. Too much time is spent meeting customers to receive payments
5. Time meeting customers could be better spent on sales
6. Safety concerns when receiving cash in person
7. Sales are lost when customers are asked to make bank deposits
8. Reconciling bank deposits made by customers is time-consuming
9. Other payment options are too expensive

Where can my customers make payments?

Payments are made at over 900 NLCB LOTTO agents nationwide.

What are payment slips?

A payment slip contains the account number and name associated with the business. The customer presents the payment slip to the NLCB LOTTO agent to make a payment to the business.

How does the customer get the payment slip?

Payment slips are provided by Paywise to the business. The payment slip is sent as a photo image. Businesses can send the slip to their customers via WhatsApp, Messenger, email, etc. The slips do not have to be printed. Customers simply show the NLCB LOTTO agent the slip on their phones.

Note, payments can be made without a payment slip. The customer must have the right account number and tell the NLCB LOTTO agent that he is making a Paywise payment.

What is the cost?

The cost to the business is $5.00 per transaction.

Is there a setup cost?

No

Can my customers pay using LINX or a credit card?

The NLCB LOTTO agents accept cash only.

How does the service work?

Click here to see our video on how Paywise works.

What are the registration requirements?

Click here to see our registration requirements.

How do I register?

Send us an email at [email protected] for our registration guide. Please state your business type: sole proprietor, partnership, limited liability company or non-profit.

How soon will my customers be able to use the service?

Once the registration process is completed your account will be activated within 24 hours.

Can Paywise integrate with my website?

Paywise has APIs that can easily integrate with your website.

Can Paywise refund payments to my customers?

Yes. Businesses can use Paywise to refund their customers.

How robust is the system?

Paywise has joined forces with IGT, to bring to their customers the ability to make cash payments through the VIA Bill Payment System!

VIA Bill Payment System is delivered to the customer through the NLCB LOTTO Terminals – today there are over 900 NLCB LOTTO Terminals located across Trinidad and Tobago.

IGT, the largest lottery company in the world, efficiently manages the terminal network on behalf of the NCLB with up to date technology and expertise, and have proven this by their track record of a network uptime of 99.9%.  In Trinidad and Tobago, VIA has been managing bill payment transactions since 2004 and in 2015 have delivered over 1 Million transactions with this service.

Is Paywise regulated?

Paywise is regulated by the Financial Intelligence Unit of Trinidad and Tobago and the Central Bank of Trinidad and Tobago.

When will Payments be Credited to my Account?

Payments are credited on Tuesdays and Fridays. Payment received from Monday to Wednesday will be credited on Friday. Payments received from Thursday to Saturday will be credited the next Tuesday.

Can Paywise Accept Part Payment?

Paywise accepts any amount paid by the customer. This includes part payment, the full payment, and even an overpayment. Paywise will credit any amount received to the merchant account.

Local banks offer online merchant accounts that are tailored for big companies. The high cost of online merchant accounts is a strong disincentive for smaller entities to use the service.

Below is a quick examination of the fees charged by local banks for online merchant accounts.

Setup Fee

The charge ranges from USD 100 to USD 750 to set an account.

Security Deposit

The security deposit could be a minimum of $25,000. 

Usage Fee Structure

The usage fee structure refers to what merchants pay to use the service. The fee structure comprises a discount rate, a transaction fee and a monthly charge. The usage fee structure of three local banks are examined below.

Discount Rate

This is the interest rate charged by the bank on the credit card payment amount. This rate is assessed by the bank for each merchant. The higher the assessed risk the higher the rate.

Fee per Transaction

A fee charged per transaction. Normally, the fee is stated in USD cents.

Monthly Fee

This is a general fee charged per month regardless of any transaction activity. The fee is a USD dollar amount.

Fee Structure Applied

This is an example of the monthly sales and transaction volume for a merchant. Based on these figures the average monthly fees paid is calculated and an annual cost estimated.

A discount rate of 3.9% is used. In other words, it is assumed that all banks assess the same merchant at the same risk. However, this is not always the case.

Looking at the discount fee and the fee per transaction, there is no real difference in cost amongst the banks (based on the assumption that all banks assess the same merchant as the same risk).

However, the monthly fee makes a big difference in what is paid. Depending on the bank and total transaction value the monthly fee can account for over 50% of the fees paid.