SimplyTapp: Innovate: BIN or IIN sponsor

Thursday, May 7, 2015

Innovate: BIN or IIN sponsor

Doug Yeager CEO, Co-Founder at SimplyTapp

1 day ago

BIN or IIN sponsor

guys, i'm a rookie here in this group, but the title looks interesting. we are trying to streamline the BIN sponsor step if there is such a thing. does anyone know of or have a low friction way through this process?

JJ Hornblass, Breanna Punzone, Doug Yeager, +1 like this

Doug Yeager

to be clear. we would love to call or go to a web form and "buy a BIN", fill out some forms and pay our money in a week or two and be able to issue card PAN's. is that too much to ask in a bank sponsor?

1 day ago
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Bill Ralston

Doug, why do you need the BIN? What makes finding a sponsor something you need to do on a regular basis?

1 day ago
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Doug Yeager

we would like to issue cards to an app that can be used at NFC POS terminals that we can settle over ACH through settlement partners like dwolla or paypal, enabling them to compete against the card networks at the POS. sort of like de-coupled debit. the key is having the merchant NOT change anything (except for maybe an opt-in procedure), but not change any hardware or POS software on their end. but we get to authorize the transaction at our switch on the other side of the network. to get the routing on that network, my understanding is that we need a BIN or IIN (for pin debit...this would work too), in order to route the auth request to our backend.

1 day ago
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Bill Ralston

Which network would the merchant be using?

1 day ago
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Doug Yeager

i think there are some options that include:
pin debit networks, but also Discover Zip transactions could be an option

1 day ago
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Bill Ralston

But I thought you were trying to avoid those card networks?

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Doug Yeager

good point. the goal is more to enable competing payment forms. by separating the network rail fee from the settlement fee, it becomes much more like buying rights to use the pipes. effectively allowing for innovation on those pipes. my understanding is that the rights to use the pipes could be as little as 7 cents or so. which means the settlement form still has a lot of room to be competitive for the merchant. this would allow for digital payments that exist in the online space only today to migrate to the physical POS. just a few redemption forms that come to mind would be folks like paypal or dwolla, but also points aggregators for both loading points and redemption of, but also loyalty tracking, merchant stored value, etc. there would be a market, even at 7 cents adder for the transaction (price not to change merchant network or hardware) for many merchants just to jump right in.

1 day ago
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Tom Bellenger

Interesting points but for this to work well you really want a BIN from MC, Visa or Amex to get good acceptance. What's in it for the network or the issuer?

21 hours ago
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Doug Yeager

great idea, but the rumors i've heard are that discover may be easier to work with in this context as they have modular offering that would be able to just buy access to the network. some other bank sponsors i assume can give similar functionality on visa/mc networks i suppose.

as far as what is in it for the sponsor, i think just money through pay to play. not much else would be involved as the brand would be controlled separately. this business in the MNO world is very similar to MVNO. basically the real MNO charges a fee for usage of their pipes to the MVNO who controls the end customer.

19 hours ago
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Sebastien Poly

100% agree Doug. An easier access to the pipes and to the amazing acceptance the schemes have built would boost innovation in a lot of verticals.

14 hours ago
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