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Touch Networks launches paysafe card for safe online payments

Newsagents will have access to the paysafecard, a new product launched by Touch Networks for sale to shoppers wanting to shop online safely. While the margin is slim, 2.5%, there is no stock carrying cost.  here are some details from the product announcement sent today:

paysafecard is a prepaid voucher that lets you pay safely online. Prepaid means that you purchase paysafecard from sales outlets worldwide and you will receive a 16-digit PIN. Online payments are made by entering this paysafecard PIN on websites where paysafecard is accepted. paysafecard is safer than other payment methods because you don’t have to enter any personal information or your bank or credit card details when paying online.

Any newsagent can access Touch through their computer system.

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  1. shauns

    2.5% that is definantly a WTF and FFS moment . Just yesterday I was having a winge to myself about only getting 4% on phone recharge and now there is an all time low 2.5% on offer . Do these companies not understand the running cost of a business have gone up and not down .

    3 likes

  2. Gary

    anyone know what margin the post office and supermarkets get for offering phone recharge and gift cards?

    I bet its higher.

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  3. Jack

    What extra expense are you incurring by offering this product shauns? Where is the downside?

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  4. James

    No more money go rounds for this little black duck.

    1 likes

  5. shauns

    Jack , last i looked rent goes up every year , power goes up every year wages every year . the down side is 2.5% what is that all about . Ok there is no cost in having the product on your floor but some one has to be on the floor to sell it and last i checked they cost money .

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  6. James

    The simple equation is – what percentage of turnover is Rent, overheads, and wages. Mark would know the bench mark, but I would think 15% ish. Thats the cost of providing the facility to sell the product. Anything below 15% GP has to be assessed hard and scrutinised regularly.

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  7. subaru

    Gary (comment #2),

    I have to wonder about this also, cause i went into my local coles store for groceries on the weekend and they were offering 20% off phone recharge. I can’t remember if it was for all brands or only 1, but FFS the margin must be good to be able to offer this to customers

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  8. Mark Fletcher

    I look at this differently in that it’s on top of a service I already offer – phone recharge, phone cards. There is no additional cost in offering this product.

    Am I happy with 2.5%? No. But it’s better than making 12.5% off newspapers that have a higher labour / space cost.

    In terms of margins on iTunes cards and phone recharge in supermarkets, the deals get get are between them and the phone company and Apple.

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  9. michelle

    Ok so 2.5% is not great. I look at this and think it costs me nothing up front and if it satisfies some of my existing customers and more importantly brings some new customers to my shop (particularly new online purchasers who can engage with my stock) then it has to be worth a try. My big question is what sort of marketing is going to be happening around this product and which large volume suppliers will be taking it up. If that aspect it being dealt with then I for one will give it a go.

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  10. Jack

    Shauns are you planning on putting another staff member on to cope with the demand for this product? no. So lets be realistic about this. It’s not going to cost you anything to sell this product. Sure it’s not going to make you much money either but i’ll take any dollars I can get especially if it isn’t costing me nothing and is using a facility (ezipass) which I already use anyway.

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  11. Chris - Touch Networks

    Hi. Great feedback and thoughts from all and I will ensure these are passed on to the supplier (paysafecard).

    @Michelle, in regards to marketing, paysafecard and Touch Networks are producing a “welcome pack” that will be mailed to Touch Networks’ merchants. Inside this folder will be an introductory letter explaining the product and its benefits (and where the vouchers can be redeemed) posters, window decals (A5 size) and other similar materials. We’ll also be providing a range of information and materials to stores via email and Touch Magazine. paysafecard are also launching an Australian version of their website, listing locations where their product can be purchased and online sites where it can be redeemed.

    The paysafecard product is hugely popular online and overseas and consumer uptake has been swift when the product has been launched in new markets / countries.

    As always, if you have questions you’re more than welcome to call the Touch support team on 1800 286 824 or if you would like to reach me directly my email address is chris.allsop@touchnetworks.com.au

    Thanks,
    Chris Allsop
    Marketing Communications Executive
    Touch Networks

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  12. shauns

    Jack this is the key problem with this industry Newsagents will accept what ever % that is on offer just to make a couple of dollars . Oh it bring in traffic I hear yeah and so does a handful of other thing . The good old traffic generator pitch .

    3 likes

  13. Garry

    I agree shauns and while we are willing to sell someone else’s product for so called “foot traffic” 2.5% is all we will ever get.
    Are we a retailer or someone else`s agent

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  14. Mark Fletcher

    My position on agency business is well documented. I do, however, make an exception for this type of agency business which I can leverage at no additional cost and can be used to build the basket.

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  15. shauns

    I know hubbed is a totally different situation (and I would hate to bring it up again) but just about every one on here was saying they do not want to be AGENTS anymore but yet are over the moon to get this hot new product in @2.5%.

    2 likes

  16. Bretts

    I don’t view these products as I would selling a Stamp (not a LPO).
    I view this as an add on to allow MY customer to only need to shop with me.
    Most of the younger Gen could not care where the Phone Credit is purchased from.
    While the commision is bad we will not be seeing better on these products no matter what you think we can do.
    So not so much as food traffic but customer satisfaction.

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  17. Steve

    As newsagents we should already have the feet through the door its maximising the profit out of them thats the challenge. A lot of these low margin products claim to be traffic drivers when in fact their just hoping to benefit from the customer base you already have. I think its a parasitic relationship but sometimes you need them because thats the service your customers want,and if customers want it its in your best interest to provide it.

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  18. Mark Fletcher

    Shaun don’t report as if you are News Corp. The facts are that people are not over the moon. Some say this new product is an opportunity without cost.

    Steve, the channel does not have enough traffic. year on year traffic is down 10%.

    1 likes

  19. Clive

    The minimum amount on paysafecard overseas looks to be 5 euro/pound. If they make this the minimum here that’s a grand total of 12.5c commission. Then if they pay by eftpos on savings/cheque you will be lucky to get 7.5c. The higher the amount they are likely to pay by credit so deduct another 1%. Then if you pass these costs on you get a dirty look. Talk about nickel and dime stuff.

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  20. shauns

    News Corp ?

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  21. Steve

    Your right Mark about the declining traffic, I suppose the question is to counter this would you prefer to increase the gross profit/customer you already have or increase the number of customers through low margin products? I know the answer is do both but 2.5% commissions aren’t going to achieve that.

    1 likes

  22. Mark Fletcher

    Shaun you said: just about every one on here was saying they do not want to be AGENTS anymore. I don’t see evidence of this.

    1 likes

  23. shauns

    Ok Mark I am not going to go back and look for proof because I just couldn’t bothered wasting my time , but in saying that I am pretty dam positive I have read it on here a fair bit where posters have said they do not want to be agents anymore or sick of being agents or maybe I was seeing things

    1 likes

  24. Mark Fletcher

    I think it’s a mixed bag of opinions here and among newsagents. Not all or the majority against being agents. I am but I think I’m in the minority.

    I took a cheap shot at you in terms of accuracy. No offence intended.

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  25. Mark Fletcher

    Steve I want to achieve three things: more traffic, better margin from current products and more products sold to existing shoppers. Lots of small steps to create a better business.

    1 likes

  26. rick

    off topic, how many people have had the phone call re eftpos offer from suncorp. They say they have snaffled quiet a few from tyro. They did a comparison for me on my last tyro statement. Tyro $491 Vs Suncorp $265 that’s a very big difference considering my normal Tyro account is about $600 per month. Anyone else looked into it?

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  27. Mark Fletcher

    Rick, ask Suncorp to list the newsagencies that have changed. I suspect the facts will not reflect the spin. Also ask them for a guarantee that the amazing low price they are now offering is locked in. My understanding is that past similar claims on price have not lasted.

    The benefits of a broadband based integrated solution are considerable.

    1 likes

  28. shauns

    Rick I cannot remember the exact figures (News Corp comment is playing on my mind now 😉 ) but last time I looked from memory suncorp was slightly better but not worth changing over due to being locked in for a few years . That was about 6 months ago when we last looked into it . I bank with suncorp and my local bank has always wanted me to change over so if there offering deals again I say they will pop in one day soon

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  29. rick

    they are offering a broadband integrated solution, that’s what has me looking at them seriously this time. From memory its a 3 year deal.

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  30. Ben

    We threw out the photocopier because of the time spent with the customer and the low return, phone cards are more and more becoming the new ‘photocopier’. Customers monopolise staff time because they don’t know what it is they want, they want an explanation of what the cpm is for 8 different cards, or they want you to enter the credit into their phone. I agree Mark that there is no cost to hold stock/cost of entry, but I am starting to thing that on Saturday morning we do more damage to our business trying to serve these customers low margin customers than we make from them during the week!

    7 likes

  31. Brendan

    Sell 1 x sun @ 25% (I’m actually on 12.5%) = 30 cents

    Sell 1 x paysafe voucher for $100 ( I expect this would be an average ) @ 2.5% = $2.50

    Whats wrong with that????

    Sometimes we need to consider what we earn for the transaction as opposed to the % involved particularly where there is no real cost other than the time taken to serve a customer.

    5 likes

  32. Paul

    Rick, changed over from CBA to Suncorp EFTPOS a few weeks ago after doing the comparisons and speaking to a mate who works for NAB in corporate lending/sales/eftpos. Even he stated that none of the other banks would get anywhere near the charges offered by Suncorp and stated that he know of no one else that got even close. It reinforced the figures that I came up with for my business after comparing quotes from the banks and the rates on TYROs website. At the moment for me at least Suncorp was a no brainer. I actually went wireless/mobile terminal and am still infront of anyone one else that I compared them too.

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  33. allan wickham

    Paul, its not broadband though is it?

    Al

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  34. Paul

    Allan,

    I could have had the broadband one but opted for the mobile one as I have an expanding new part of the business that may require I have eftpos available offsite and this fits the bill nicely ! It costs me $12 more per month but still came out far and away the best based on my comparisons.

    I’m fairly certain that the basic contract was for broadband as I had a requiremnt to free up the phoneline the older CBA unit had been piggy backing onto and had made that clear after my initial discussions with Suncorp and the other bank EFTPOS providers.

    One thing I will say for TYRO is that at least they are clear on their rates whereas the banks generally don’t publish their rates and I had to approach them to get that information and when they found I was looking to switch immediately and was looking at other options they offered much better than their initially advised rates.

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  35. June

    Shaun I have often made the agents’ comment here. I agree with you – we do lotteries, bus tickets, ticketek, top up phone vouchers, taxation forms, WU, and a myriad of others. AGENCIES COST US IN LABOUR WHICH IS MONEY and sometimes do NOT pay their way. Ticketek is a prime example. We have people do “pickups” from us all day for zilch. They buy online and then use my staff and my time to collect. Oh I forgot to say how lucky I am that they come into my shop. Likewise when we have a hotsell concert (springsteen e.g.) and we only sell 3 tickets before it is sold out, the customers think it is our fault and probably don’t come back. I think agencies have been good to us in the past for ensuring we are a destination but those days are now long gone and we need to make a profit and we shouldn’t be apologizing for that.
    Off topic has anyone had the same experience with me this week with netonline. I do all my returns and finalize them after I have sent them thru xchangeit then I go to netonline to capture the shipping dockets and yesterday only the current returns were available not the supplementary.
    Considering it was the last week of the month and considering also it was a very large supplementary return I am feeling quite anxious about not receiving this credit in time to ensure it is credited on this month’s statement.
    Is anyone else experiencing this sort of delay in large credits?

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  36. Peter

    Yes June I am at Cootamundra. My On Time Return went straight through and I am still waiting since about 3pm yesterday for the Supplementary (which was for me very large). I have contacted Net and I am told it is widespread problem and that if I submitted it yesterday it will be in this months statement.

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  37. June

    Peter, thanks for the info – it had better be taken off this month’s statement or
    I will take it off before payment.
    I do wonder about conspiracy theories sometimes with these people.
    We would all have had large supp. returns as it is the last week of the month.
    5000 odd agents returning let’s say $3k
    each = $15 million – great cashflow to say
    the least.
    Even as important is the room factor – it is imperative that we remove as much as possible from our premises as we have no
    storage space to speak of any more and it
    is just about impossible to have 2 weeks of returns.

    1 likes

  38. Peter

    Didn’t you know they have already booked an armored truck for all the extra cash they will collect (before we became aware of the problem).

    0 likes

  39. JONO

    June, do you still get commission if the customer only pick up the ticket? Thanks

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  40. June

    Jono, zilch for collections from a ticketek
    agent. I have had the conversation with the highest person in Sydney to be told that “you can choose whether or not you
    allow people to pick up from you or not”.
    Can you imagine me telling the customer that we “don’t do pickups” when they’ve been to the website and it says the customer can pick up from ANY TT outlet?

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  41. rick

    You still do western union? Why? Dumping it 3 years ago was the best thing ever, you should see the line up over the road at the post office on a friday arvo now. PO staff I talk to say they hate it. On the suncorp offer it is for integrated broadband, I will follow it up on Tuesday, offer looks very compelling, will save me at least $200 a month, also found tyro acting more like a bank lately when I enquired about swapping out my old style terminals for the new sleeker touch and go terminals, told that if mine worked still then they would not give me new ones even tho I am only renting them, I asked what would happen if mine both fell off the counter, let’s just say they don’t have a sense of humour, like I said starting to act like a bank. One of their big pluses in the early days when so many newsagents supported them, was that they were not a bank, they have short memories, or maybe we not so important anymore.

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  42. June

    Rick I dumped WU too many years ago but lots of agencies still do it. I wasn’t
    necessarily talking about me – I meant the industry as a whole.
    No one could possibly say we have not been “used and abused” over the years.

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  43. Steve

    Some of these products have end customer merchant fees of only around 4%. Giving 2.5% to end retailers means there is only 1.5% to pay for distribution costs, vouchering, support, technical matters, hardware swaps, etc. Would anyone here be comfortable if the margin you earnt was disclosed along with what the merchants are paying? Would that make it easier for you to understand why the margins are so tight? Given that EPay simply add new products and you carry no other expense, why is it so bad that the margins are low?

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  44. June

    Steve, I happily do epay etc because it is fast and efficient. Ticketek is very time consuming (as was WU) and I now don’t do pickups (for zilch) nor do I do TT on a Sunday. They dropped their margins to us with no discussion and our profit was halved so I would have no problem getting rid of TT (they are only using us
    until we have collected enough data for them to sell online only).
    The product is far too time consuming for my staff and myself so it has to be looked at very carefully on a cost benefit analysis.
    My husband says it brings people in but I say it doesn’t pay for the wages it incurs in my business because it takes too long for each transaction and the TT purchasers do not buy other goods in the shop.
    I am interested in other agents’ opinions about TT.
    Steve, epay is also only a stopgap for customers who don’t have smart phones to do their topups online.
    It is getting less and less – month by month.
    Mark F says agencies do not pay their way and I am inclined to agree with him with the exception of Lotto.

    1 likes

  45. Peter B

    June, we had venuetix and ticketmaster(for AAMI stadium only). We worked out that they didn’t cover staff and other associated costs. The ticket buyers never purchased anything else and got in the way of REAL customers. They were also not the carefree type customers and liked to make life difficult.
    So Venuetix and ticketmaster got the chop and life is much better without them.

    1 likes

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