FinTech Connects… with Luke Massie, CEO, Vibe Tickets
Payments are entering a significant period of change. The plate tectonics of the payments ecosystem are shifting. Cash has had its day, open banking is here, and Strong Customer Authentication looms large.
There will be no loyalty to lame ducks. If it wants to entice and retain customers, eCommerce must shift alongside payments.
Vibe Tickets is doing exactly that. They are building their own payment solution by taking full advantage of PSD2 and open banking. Cutting out third party providers and transaction fees with its service VibePay, Vibe Tickets fit a niche vantage point hanging between merchant and payment provider. But before introducing their merchant and marketplace solution, VibePay is launching a consumer app which allows friends to socially plan and pay in groups.
We hear how their CEO Luke Massie sees the lay of the land.
What is Vibe Tickets doing in the payment space?
Ever since the start, Vibe Tickets has been all about fairness for the fans. However, the third party provider we had to use for transactions charges fees (= bad vibes) and the savvy vibe community turned to alternative payment solutions, even sharing bank details with strangers in the chat. We knew we could offer something better and with the arrival of PSD2 and Open Banking, VibePay was made possible.
We've built a payment ecosystem based on Open Banking, enabling direct-from-bank payments. The first product to market will be a consumer app launching in September, making it easier for friends to split the cost of concert tickets, presents, holidays, dinners, etc. This is soon to be followed by a B2B solution, allowing consumers to pay direct from their bank when they’re shopping online - on Vibe Tickets and other sites.
What are the key trends in merchant payments in 2019?
Bypassing expensive card schemes and offering direct-from-bank payments. This is an exciting change facilitated by Open Banking. Fact is, most drop offs at basket is because consumers don't have their cards at hand.
How can ticketing and eCommerce sites fight chargebacks and fraud?
By using direct-from-bank payments. With direct-from-bank payments, cardholder not present fraud is eliminated.
How will Strong Customer Authentication impact checkout conversion?
Multi-factor authentication isn't new for consumers. Many people already use it to log into their email or even social media. And let's face it; it's a lot easier than having to find your card and entering endless card numbers to complete a purchase. In other words, I think the transition will be relatively smooth.
How do you see the use of PISPs evolving – will they replace credit and debit cards in the near future?
Looking at markets at the forefront of mobile payments, such as China with 900 million WeChat users and the US with 40 million Venmo users, I think it's safe to say that PISPs will certainly give card payments a run for their money.
How can the ticketing industry future proof their payment process?
By listening to consumers and creating services they want and need. The next generation of concert-goers expects safe, instant and mobile payments, not having to find their debit card and entering numerous digits to finalise their purchase.
The ticketing industry should also offer the option to split the cost with friends directly at checkout, gone are the days when one friend buys all the tickets on their card and has to chase their friends for money.
Luke Massie will be taking part in PayTech Connect, sitting on the panel Is Open Banking the dominion of Generation Z, or can merchants and financial institutions hit critical mass with consumers of all ages? Alongside a roster made of open banking adopting merchants and financial institutions, Luke will hash out the state of the industry and consumer in opening up to open banking. Come on down to the ExCeL London on 4th December and watch the debate unfold before your very eyes.