The FinTech Report Podcast: Episode 21: Interview with Paul Weingarth, Slyp

‘Obsessive Customer Disorder’ leads Slyp to digitise receipts and loyalty for Australia’s Big Four Banks

Listen to the interview here:

https://www.buzzsprout.com/1643860/10538632

https://fintechsummit.com.au/the-fintech-report-podcast/

The FinTech Report Podcast: Interview with: Paul Weingarth, Co-Founder of Slyp

Prior to co-founding Slyp, Paul worked for the Commonwealth Bank, Microsoft and PayPal. Paul’s now on a mission – he wants to end paper receipts and plastic loyalty cards; how is it that in 2022 we tap our phone or card or watch to make a payment in-store, then we are handed a chemically coated non-recyclable piece of paper to keep a record of the purchase. 20,000KM of paper receipts are printed every day in Australia. Imagine what the global total is?

Key points in the conversation:

Contactless payments is only half finished; Slyp wants to end paper receipts – the ‘last mile’ of the payment process
Paul and the other Co-Founders are obsessed with the customer – Paul calls this ‘OCD – Obsessive Customer Disorder’
Nothing good comes from paper receipts
Paul’s PayPal experience helped him understand the payments process
The Slyp Smart Receipt has been built on ‘pipes’ that haven’t been connected before
Slyp integrates directly into the POS terminal (Point of Sale); merchant side
Plus Slyp has built pipes into the banks, so connecting/matching transaction to receipt in a few seconds
Everything is standardised – so Slyp is the one provider that offers a standard experience for all banks (Apps) and all Merchants
Often standardisation & collaboration happens because of regulation (eg EFTPOS, NPP, Open Banking); but Slyp wasn’t driven by regulation – it’s driven by Slyp.
Slyp receipt is inside the customer’s banking app; receipt is displayed inside the banking App. Completely frictionless for the customer. Fully tax compliant tax receipt.
For Slyp, the receipt is just the start – the customers digital data is available to the Merchant; so the Merchant now has the possibility of starting an ongoing relationship with the customer; eg loyalty, tailoring offers.
Who owns the data? – all parties to the process; Slyp, the Merchant, and the bank, all retain their component parts to the data, and Slyp wants to provide the insights for all parties – Paul uses the term “Data for Delight” – Paul says Slyp is the “Switzerland of the system”
NAB now, the other three banks in the next 12-18 months
Slyp Smart Receipts will always be free. Business model is a SaaS model for the banks, and Freemium service for the merchants; they can take up additional services if they want.
Australia is a great place to start a fintech. Australian consumers who love using new technology, and adopt new technology very fast, especially mobile and payments.
The fintech and banking eco-system is a leader in contactless payments. Concentration in banking of the four majors (NAB, CBA, Westpac, ANZ), plus two large / dominant merchants/supermarket chains (Coles, Woolworths), plus only two card providers (Mastercard, Visa) means it was easier for Slyp to create a standardised product. Paul says this set-up is ‘the perfect storm”
Funding: Slyp has received investment from all four of Australia’s big banks: NAB, ANZ, CBA and Westpac – the first time ever in Australian fintech.
Customer validation in the early stages was key – according to Paul: “the loudest voice is always the customer’s voice!” The customer feedback sessions were great for Slyp; the feedback from customers in the trials & Net Promoter Score was higher than Apple Pay.
NAB Ventures was first investor – Slyp went via NAB Labs to prove the prototype. NAB Ventures and Todd Forrest were a significant help in introducing Slyp to ANZ, Westpac/Reinventure and CBA.
Building the team: Slyp is a mission led fintech, and Paul says he’ll only hire ‘missionaries not mercenaries’ – he says Slyp needs people who are ‘irrationally passionate’ – just like Steve Jobs’ comment that it’s “the crazy ones” who make a difference
Paul discusses the Divipay partnership; using corporate cards that integrate Slyp’s Smart Receipt that go into accounting packages – expense management made easy.
Message to all founders and all fintechs from Paul: one of Slyp’s core values is “Relish the Journey” – a great message to all entrepreneurs!