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e-billing e-payments e-receivables e-trading  

Case Study - iSUBSCRIBE

PaySecure Platform Enables iSUBSCRIBE to Improve Cashflow and Take Greater Control of Sales and Marketing Opportunities

Industry/Market

Magazine Subscription Sales

Challenge

To improve cashflow and financial control by enabling iSUBSCRIBE to process credit card transactions direct, rather than relying on its publishing suppliers to handle customer transactions.

Solution

iSUBSCRIBE’s PaySecure solution, which facilitates electronic payments for credit card and direct debit from all major Australian banks.

Highlights

  • iSUBSCRIBE has implemented CommSecure’s PaySecure platform to process all customer credit card and debit transactions
  • CommSecure provided industry knowledge and advice to assist iSUBSCRIBE in identifying the functionality it needed
  • The implementation was quick and easy, enabling iSUBSCRIBE to begin processing payments within weeks
  • iSUBSCRIBE is now planning to roll out the PaySecure platform to its New Zealand and United Kingdom websites

Benefits

  • iSUBSCRIBE now enjoys greater financial control, better cashflow and immediate access to profits as customer numbers grow, instead of having to wait for supplier remittances
  • iSUBSCRIBE customers can now select and pay for their magazine subscriptions in a single transaction
  • The CommSecure system is highly scalable to support iSUBSCRIBE’s growth of between 30 and 60 per cent in its PaySecure-supported markets: Australia, New Zealand and the UK

“You tend to take what vendors say with a grain of salt, but CommSecure really delivered exactly what they promised: a powerful and secure payment platform that is very easy to use and hasn’t given us a single problem.”

Hunter Drinan
General Manager, iSUBSCRIBE

Australia’s leading independent online seller of magazine subscriptions, iSUBSCRIBE, has improved cashflow, increased its financial control and established a strong platform for growth by implementing a secure online payment platform from CommSecure.

Since December 2000, iSUBSCRIBE has operated an Australian magazine aggregating website, selling subscriptions to around 1,250 different titles from the leading publishing houses and offering discounts, special offers and prizes to drive sales. Today, iSUBSCRIBE also operates similar sites in New Zealand, the US and UK, where it holds the distinction of being the largest independent magazine aggregator.

Time to Upgrade Payment Processing

As a new entrant to the publishing sector six years ago, iSUBSCRIBE had no credit history with the publishers whose magazines it wanted to sell.

The solution was an interim arrangement under which iSUBSCRIBE agreed to capture each customer’s credit card details and hold them securely on its server, allowing the relevant publisher to log into the system to download orders and process credit card transactions.

“The publishers handled the money and then we invoiced them for commissions,” explained iSUBSCRIBE’s General Manager, Hunter Drinan.

“This was a no risk approach that allowed iSUBSCRIBE to establish itself in a high growth market and it worked well for us, our suppliers and our customers,” he said.

“However, after five years of solid growth which saw us achieve a strong position in each of our markets, we knew it was time to take control of our financial destiny. That’s where CommSecure came in.”

With four successful magazine websites to its name and consistent double digit growth, iSUBSCRIBE decided to introduce its own payment platform to process customer transactions.

Marketing Leading Solution

Rather than developing a platform in-house, iSUBSCRIBE went to the market for an industry-standard solution. The company was in the process of meeting with several vendors considered to have state-of-the-art offerings when a partner firm suggested it contact CommSecure.

“CommSecure impressed us right from the start,” said Mr Drinan.

“It was clear from their presentation that they had a good understanding of the marketplace and our business model, and had an offering that was exactly what we needed.

“As an online aggregator of other suppliers’ products, we operate on slim margins and must leverage process automation to enhance efficiency and keep our costs low, so we can maximise profitability while still offering discounts to our customers.

“CommSecure showed a good grasp of our requirements and was able to make some useful recommendations about how to optimise the technology to take advantage of potential opportunities. They really gave us a sense of confidence about choosing CommSecure as our payment partner,” he said.

Easy Installation

iSUBSCRIBE chose to implement CommSecure’s PaySecure solution, which facilitates electronic payments for credit card and direct debit from all major Australian banks.

PaySecure uses military-strength encryption technology to guarantee tight security, supported by fault-tolerant architecture to enable rapid data re-routing in the case of individual equipment failure. Full automation and workflow promised maximum cost-effectiveness and efficiency while minimising the need for human intervention.

“Implementation of the new payment gateway was very quick and easy,” said Mr Drinan. “It took our IT specialist just a couple of weeks to integrate PaySecure with our Australian website and test its performance, in fact we were frankly surprised at just how painless the project was. The hardest part was getting all our 280 publishers over the line, but from a technical point of view, it was a simple matter to modify the site and get everything up and running smoothly.”

Simple, Reliable and User-Friendly Solution

The CommSecure solution has been operating successfully for iSUBSCRIBE since November 2005 and Mr Drinan said it has been 100 per cent reliable.

Customers simply select the magazines they wish to purchase and place them into their shopping cart. When they click on the check-out icon, they are taken to the iSUBSCRIBE-badged PaySecure gateway where they enter their credit card details to finalise the transaction.

“The entire process usually takes a few minutes and is completely seamless,” he said. “Our customers find it very intuitive and easy to use and we have lots of opportunities to build in cross-selling incentives.

iSUBSCRIBE is delighted with the success of the PaySecure platform and the support provided by CommSecure.

“You tend to take what vendors say with a grain of salt, but CommSecure really delivered exactly what they promised: a powerful and secure payment platform that is very easy to use and hasn’t given us a single problem.

Extending Benefits of PaySecure Platform

“We’re now making plans to implement PaySecure on our New Zealand and UK websites over the next few months before we hit our busy sales period in the lead up to Christmas,” he said.

Not only is iSUBSCRIBE the largest magazine aggregator in Australia, but this progressive Australian company has also become the largest independent aggregator in the international markets in which it operates.

“We established the New Zealand site in July 2003 and the UK later that same year. While our Australian sales are growing at a solid 30 per cent per annum, New Zealand is up 60 per cent on last year and the UK 50 per cent, so things are looking very good.

“Extending the CommSecure technology to these other sites gives us greater control over our international finances while allowing us to offer customers innovative incentives to help drive sales,” said Mr Drinan.

“We do around half our annual sales in November and December alone, so there are enormous benefits for iSUBSCRIBE in implementing the CommSecure technology for these sites before that period hits.

“I have no hesitation in recommending CommSecure’s technology and expertise to any other company seeking an online payment solution. It’s been a very positive experience,” he said.