How PerfectCard Found the Perfect Incentive for Market Discovery

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 “You can’t just go into a market the size of the UK believing you will do the same things you do in Ireland. We decided to target the reseller market for our incentive product in the UK. Going the reseller rather than the direct route will increase our reach greatly.”
Natasha Brasier, PerfectCard

Key Takeouts:

  • PerfectCard is a gifts and incentives tool for both customers and employees.
  • An Enterprise Ireland market research grant helped PerfectCard pick the right strategy for entering the UK, targeting resellers instead of a more direct approach.
  • They won a place on the Enterprise Ireland Innovation for Growth Programme, which grew their UK presence and led to two new partners.

Case Study: PerfectCard

Founded in 2006, PerfectCard has established itself as a leading gift and incentives brand, with its distinctive cards widely used by shopping centres and retailers around Ireland as a gifting solution. Over the past decade the company has expanded and developed its offering to include employee and customer incentive products and has just launched Pecan, a new employee expenses service aimed primarily at Small and Medium Enterprises.

The company has also been preparing the ground for significant growth in the UK market, principally in the incentives area. “We already have customers in the UK and are about to dedicate more resources to growing sales there”, explain PerfectCard business development manager, Natasha Brasier.

The acquisition of a Galway-based IT company some years ago played a critical role in this strategy. “The acquisition allowed us to introduce additional features and benefits”, says Brasier. “For example, customers using the cards to reward employees were able to load them onsite. The solution allowed us to start selling into the UK market. Our customers include a number of Irish- based companies with overseas offices that started using our solution in other markets.”

PerfectCard was the first company in its space to receive e-money authorisation from the Central Bank of Ireland, which is also facilitating its international growth.

Enterprise Ireland support has also been crucial, with the company participating in the Innovation for Growth Programme, while Brasier will shortly complete the Enterprise Ireland-sponsored international sales programme at Dublin Institute of Technology (DIT)

“A few years ago, we also received a market research grant to research the UK market and some great advice through Enterprise Ireland”, she adds. The grant helped the company to assess the best route to market to reach their target customers. The company subsequently developed a much more structured sales process and approach for the UK market.

“You can’t just go into a market the size of the UK believing you will do the same things you do in Ireland”, says Brasier. “We decided to target the reseller market for our incentive product in the UK. We have a few companies using the product there, but going the reseller rather than the direct route will increase our reach greatly.

“The response has been very good, and we have identified two potential partners to work with. They recognise the value of having a separate staff rewards card to pay bonuses or other incentives. It shows that a bit of thought went into it. If it gets paid through payroll it disappears, but if the cash is on a separate card, employees can spend it straightaway or use it to save up for holidays or other treats.”

The intention after that is to grow the business out. “Once customers start using our incentive card solution it will be relatively easy to cross-sell our other products, such as Pecan.”

The launch of the Pecan product in the Irish and UK markets is a particular area of focus currently.

“Pecan will give SMEs and their employees much greater control over expenses. The card can be used to pay for employee expenses and the company gets to view expenditure in real time. The software also allows employees to take pictures of receipts and upload them, thus making reporting much easier.”

Click here to learn more about Enterprise Ireland’s Diversification supports.

CurrencyFair

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“The foresight and belief that Enterprise Ireland has given us, and the practical advice and mentoring, we wouldn’t have gotten that anywhere else. It was really key to our success.”

Caroline Nangle – Head of People & Culture

Who

CurrencyFair gives ordinary people access to foreign exchange rates normally reserved for banks and market professionals, making it cheaper to transfer money internationally.

How

CurrencyFair was able to scale rapidly and internationally through practical advice and mentoring that they received from the Enterprise Ireland team.

Result

CurrencyFair is now a global operation with over 90 staff and offices in Ireland, Australia and the UK.

See How We Helped CurrencyFair

fintech

Nordic Countries Offer Opportunities as Irish Fintech Grows

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As a source of growth in both the Nordic and Irish markets, the fintech sector has become an important focus for innovation initiatives. Over the past five years, Stockholm attracted 18% of all European fintech investment, second only to London. When the organisers of Money 2020, the world’s largest financial services event, came to Europe, they chose to locate in Copenhagen.

Significant fintech growth predicted in Ireland

Ireland has become a fintech powerhouse with potential to grow significantly in the next decade. The government’s IFS2020 strategy aims to showcase fintech providers and increase market awareness of the domestic financial services offering. At the end of 2015, Enterprise Ireland counted 8,800 people specifically employed in fintech, up 40% from 2008, with over 100 client companies active in the area.

Showcasing fintech innovation

To capitalise on these growth prospects, Enterprise Ireland expanded the team that supports fintech and launched a sector-specific fintech Competitive Start Fund. The agency fosters fintech innovation through world-class acceleration programs organised with partners including the NDRC and Accenture. The Fintech Innovation Showcase held in Dublin gave ambitious Irish businesses, including Vistatec, Kyckr and Solgari, the chance to explore partnership opportunities with top players from Denmark including Nordea Bank, Danske Bank, Saxo Bank, Nets, SDC, Financial Services Union, Copenhagen Fintech, BEC and Festina Finance. Visitors learned about the capabilities of Enterprise Ireland clients in rapidly developing areas like artificial intelligence, data analytics, payments, cybersecurity, and regulation and compliance.

The opportunity for Irish companies in the Nordics is significant, an attendee explains, “We’re primarily interested in solutions that we can bring to our 10 million retail customers and 700,000 SME and corporate customers. We would like to partner with Irish start-ups that have banks as customers. Potential areas include open banking, solutions leveraging opportunities created by PSD2, like financial aggregators, and AI and machine learning. Inputs on the fintech initiatives of tech giants residing in Ireland are also of interest.”

 

Researching new markets

One challenge clients experience when expanding overseas is to understand the market’s business culture and customers. Attending events like the Fintech Showcase gives Irish companies an opportunity to learn about practical aspects of doing business in the target market. In the Nordics itself, the Copenhagen Fintech hub connects leading companies in the space in Denmark and can be a great starting point for Irish companies keen to see what Denmark can offer.

Before committing to expansion, Irish companies should be aware that the Nordic market is extremely advanced and has many indigenous global players, making competition fierce. Unless your company has a unique solution, it can be difficult to succeed. Fintech businesses in the region want a reliable, trusted, and secure supplier. An attendee describes their ideal Irish partner, “We like to collaborate with global fintech accelerators that provide a consistent pipeline, are highly verticalised within payments and adjacent services, and agnostic to geography. We are particularly interested in connecting with fintechs with IoT-knowledge, especially Internet of Payments. Value-added services connected to retail are of major interest if the technology can be exported to the Nordic context, for example start-ups that collaborate with a merchant to demonstrate a practical solution in the Irish market that can be easily exported overseas.”

In addition to attending events like the Fintech Innovation Showcase, there are a range of supports you can access to realise plans in the Nordics. Enterprise Ireland offers R&D, Innovation and Competitiveness funding to help companies identify and fill knowledge gaps. Local offices can connect you to specialist Market Advisors in the region. Taking time to learn about the realities of the Nordic market will give your plans for growth every chance of success.

A view from the Ireland-Estonia tech bridge

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If your company is interested in expanding to eastern Europe, there are good reasons to consider Estonia. Business people in Ireland and Estonia share a positive attitude, making both tech scenes fun and collaborative. At home, Techireland gathers the community. Estonia has a similar catch-up with the cheeky hashtag #estonianmafia. While Irish companies are particularly strong at sales and networking, Estonians rank very well in mathematical and engineering skills.

Enterprise Ireland organised the Ireland-Estonia Tech Bridge event to encourage collaboration between businesses in both markets. Estonian companies, including Cybernetica, Paytailor, Estate Guru and Guardtime, travelled to the two-day event in Dublin to explore joint opportunities in fintech, e-government and cybersecurity – areas of strength in both economies.

Tech Bridge arrived at an opportune moment, with business between Ireland and Estonia already on the rise. In 2016, Irish CSO data showed a 65% increase in exports to Estonia, when compared with 2015. Enterprise Ireland clients generated over €8 million of exports to Estonia in 2016, with food representing 48%. It’s encouraging that companies like MalwareBytes, Arvato Financial Services and TransferWise are already active in both countries. It’s also great to see the first example of a UK/Estonian startup, Travatar, establishing its head office in Galway. One of the goals of the Tech Bridge visit was to encourage more Estonian companies to consider Ireland as a leading alternative to other European locations.

The economic profile of Ireland and Estonia is also similar in ways. Both are small markets, making it essential for home-grown businesses to be export-focused. Tech Bridge is one example of Enterprise Ireland’s Eurozone strategy in action. The plan offers clients multiple supports with the goal of increasing exports to the Eurozone by 50%, to €6.15bn, by 2020. Many companies in eastern Europe look at the supports clients receive from Enterprise Ireland with envy. From both a Polish and Estonian perspective, it is very impressive that a government agency is so active as an investor and that its processes are so efficient and client-friendly. Companies like Combilift and Novareus are examples of companies Enterprise Ireland successfully supported to grow internationally, particularly in EMEA. Combined with a record of attracting overseas start-ups and entrepreneurs, Ireland is in the top league in the competition for tech talent. I see a hunger to emulate that success in many eastern European countries.

There are also great reasons for Irish companies to look eastwards to Estonia. Most obviously, there are opportunities in cybersecurity – NATO has its Cooperative Cyber Defence Centre of Excellence in Tallin. Estonia’s state of the art eGovernment infrastructure is a clear example of strategic, long-term planning combined with tech-savvy spirit and a capable talent pool. Estonia also makes a great base for Baltic and Nordic export activity in general. At Tech Bridge, we connected clients with Estonian counterparts and pointed them towards business opportunities in the Baltics. The outcome of those collaborations will be seen in time.

If your business has an eye on Estonia, there are some practical challenges you should consider. Think about how key staff will travel, for example. Right now, there are only two direct flights weekly between Tallin and Dublin. That’s not very convenient for business travellers. While details like this might seem minor, it’s crucial to make sure they’re built into export plans. There is help available for these challenges big and small. The Irish Estonian Business Network will support any company thinking of moving from one market to the other. Together with Enterprise Ireland and The Embassy of Ireland, IEBN is forging new business relationships at a local level. Overcome the hurdles, and these supports could help your business to thrive in the east.

Enterprise Ireland companies with Global Ambition

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Attendees at Enterprise Ireland‘s International Markets Week heard from established Irish companies successfully selling globally and had the opportunity for meetings with Market Advisors, available to provide expertise on exporting to new markets.

If you are attending IMW please consider the following:

  • In which markets are you successful and how have you achieved this success?
  • What is your business/value proposition?
  • Why have you decided to target this new market?
  • What market validation have you carried out and what evidence do you have for a demand for your product / service?

Contact the International Markets team at International Markets Week for further information.

Top 10 Tips for Exporting to Asia

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Asia is one of the fastest growing markets for Enterprise Ireland clients with companies such as Corvil, Fexco, Cubic Telecom, Dublin Aerospace and Arralis succeeding in areas such as Fintech, ICT and Aerospace. It may be the biggest and most populous continent in the world, with the strongest emerging markets, but its scale can be addressed by choosing the right base to diversify into other markets.

One

Preparation: Possibly the most important tip before entering Asian markets. Being well informed on the different rules and policies of the investment destination is vital. For example, doing business in mainland China can sometimes be complicated and bureaucratic, with vaguely written regulations interpreted differently by different bureaus. Exporters should be aware that setting up a company takes several months and requires a 12-month office lease to be secured at the initial stages. Companies should prepare for the cost involved. Singapore and Hong Kong are comparatively easier. A company can be set up within a few days or weeks. However, these regions have their own obstacles so research and seeking local advice is recommended.

Two

Local Practices: Business practices in Asia are vastly different from Ireland. In most regions, especially China and India, relationships are key. Deals with locals are usually determined by how well you know the counterparty. Many smaller local businesses (eg suppliers) might be uncomfortable dealing with a foreign business and change their prices accordingly. Knowledge of local languages and practices is key. Having trusted local employees certainly smooths things over when dealing with suppliers and clients.

Three

Recruitment and Labour Law: Recruitment of local staff requires care. Online platforms and agencies can help but always check the background of candidates. Be aware that labour law in China is biased towards the worker so ensure an employment contract in Chinese is signed by all staff, with strict internal rules backed up by a staff handbook. Also, ensure Income Tax and Social Insurance are withheld and paid by all employees.

Four

Don’t assume operating to be easy: This is especially true for China, India and Vietnam, with the latter two becoming increasingly popular. Despite the high level of risk that has always been perceived by foreign investors in India, recent policies aimed at improving ease of doing business could represent an attractive change. The recently liberalised FDI caps, the presence of a skilled and low-cost labour force and high English literacy in the country are advantages for foreign investors.

Nevertheless, particular attention must still be paid to the Indian environment. Opening companies in the country can be lengthy and complicated and assistance could be needed. The choice of the location is fundamental due to the numerous regional differences in terms of business licences, overhead costs and consumer behaviours.

Vietnam represents an attractive business environment for foreign investors when compared to other Asian countries. They have a relatively stable government; increasing consumer confidence and domestic consumption; extremely cheap labour force and facilities; and abundant natural resources. However, Vietnam often ranks low in ease of doing business. The complexity of legal processes and the presence of several state-owned enterprises should alert investors to look for professional assistance whenever entering the market.

The country is becoming one of the biggest manufacturing hubs in the world and many investors are still unaware of the great potential of the local consumer market, with one of the fastest growing middle classes in South East Asia.

Five

Corporate responsibility: When doing business in China, make sure you choose a reliable and trustworthy legal representative. They will have full access to the company, cash and capital; and can enter into contracts on behalf of the company.

Six

Banking: Ensure the chosen bank has experience dealing with foreign companies and handles matters such as currency exchange and profit remittance regularly. In Hong Kong, many banks have implemented a ‘know-your-client’ scheme in which it is no longer possible to set up a corporate account remotely or with a proxy. Therefore all directors/shareholders must be present in the bank at time of opening an account.

Seven

Address/Capital/Scope/Name: The four core pieces of registered information for a Chinese company are business name, address, scope and registered capital. Each should be thought out thoroughly prior to investment as changes are time-consuming, costly and would almost certainly interrupt business operations.

Eight

Offshore status: Apply for Offshore Status, if applicable. A company in Hong Kong can be established without substance, that is, with no office or staff, and can be operated remotely. Currently, if all the income is sourced from abroad then a Hong Kong company may not liable for local tax.

Nine

Taxes: Be aware of taxes due. Despite recent reforms, China’s tax system is very convoluted and rates are quite high. Corporate Tax is 25% and VAT rates vary. Hong Kong’s Corporate Tax rate 16.5% and Singapore’s are 8.5% and 17%.

Ten

Due Diligence: No matter what part of the region you are investing in, if a major deal is being made with a local company, or equity is being purchased for a merger, always perform a full corporate health check and due diligence to ensure no liabilities are assumed. Hiring a professional consultant is crucial and can help avoid bad debt or tax liabilities being unknowingly transferred. Any company that refuses an investigation should not be dealt with.

Irish firms should put their money on India for decent returns

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Enterprise Ireland’s Rory Power, Manager for India and South Asia, ruminates on the potential opportunites for Irish businesses in India.

When India’s Prime Minister Narendra Modi withdrew 500- and 1,000-rupee notes from circulation at less than 24-hours’ notice earlier this month, it set off a storm of controversy.

Peculiarly though, while painful in the short-term, the Indian public is broadly supportive of the measure – but not the means of implementation – because it aims to clamp down on counterfeiting, increase tax take and stifle funding for criminal organisations.

It is estimated that 90pc of business in India is cash-based and that the black economy accounts for around 20pc of GDP.

Queues formed outside banks almost immediately after the announcement, as holders of the “demonetised” notes – worth €7 and €14 respectively – lodged them into their accounts in order to realise their value. The government’s swift action was taken to prevent tax evaders with huge stashes of the notes trying to exchange them for other denominations.

While the intention of the measure was to target what is referred to here as black money, it had an unexpected knock-on effect. Because so much cash was being lodged into banks, it drove interest rates down. The State Bank of India has announced it will cut lending rates.

Many analysts believe the withdrawal of the notes, which account for an astonishing 86pc of the total value of currency in circulation, will be economically beneficial.

It was an eventful time for Enterprise Ireland to be hosting a trade mission, as 13 companies led by Minister of State for Small Business, Pat Breen arrived just days after the surprise announcement. The issue dominated the media and there were huge queues outside banks – though no protests.

We had companies involved in aviation, financial services, health, ICT and education on the mission. These are all sectors where India offers considerable opportunity.

The country has been growing at an average 7pc annually for the past 20 years, has a median age of just 25, and a middle class estimated to increase tenfold over the next decade. This growth is expected to continue.

We visited Bengaluru (formerly Bangalore) as part of our mission. There, Shaw Academy and India’s largest e-commerce marketplace Flipkart agreed a deal for the Irish online educator to provide certified courses in photography. In Delhi, a partnership between Irish video conferencing specialists Vu2Vu and Indian company LAMHAS Satellite Services was agreed. And Shimmer announced details of a €3.5m joint-venture with Essen Technologies, which will see the Dublin-based firm’s sensor technology incorporated into Essen’s wearable ECG monitoring device.

Expanding opportunities in the aviation sector was a key objective of the mission. Minister Breen met the Indian Minister for Civil Aviation and addressed the Aero Expo India convention attended by key decision makers and stakeholders from the Indian aviation, aerospace and related industries.

Most significantly, Minister Jayant Sinha agreed to lead a senior delegation from the Indian aviation sector (poised to be the third largest in the world within 10 years) to Ireland to meet with Irish companies and to explore potential partnerships.

Minister Breen also highlighted Ireland’s capacity as a study-abroad destination during an Education in Ireland fair. Fourteen Irish Higher Education Institutes are participating in the event which tours four cities.

India is a stable democracy with a strong business ethic. The market still poses bureaucratic challenges but has been making progress; and the almost-universal conduct of business through English removes at least one hurdle to entering the market. As the clients on our mission have shown, Irish companies can thrive in India with the right approach and a little persistence.

Australian Dream Up for Grabs for Fintech, ICT and Construction Firms

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Aborigines believe the world was created during the dream time. And from the latter part of the 20th century onwards, the same term could be used for the Australian economy.

When Australia’s dollar was floated in 1983 as part of an economic liberalisation strategy, it led to investments and trading relationships that turned open the spigot on the country’s unrealised wealth. Since then, Australia has confidently ridden economic headwinds to become the 12th largest economy in the world, boasting 24 years of uninterrupted growth averaging 3.3pc. A considerable feat considering its relatively small 23m population.

Australia offers a powerful combination of a highly-skilled workforce, legal and political stability, efficient and transparent regulation, sound legal and governance frameworks and close ties to the fast-growing markets of Asia. It is, and will continue to be, a dynamic and dependable market for Irish exporters. Its high rating in ease of doing business is a key differentiator from its Asian neighbours.

Key sectors in Australia

Many sectors are enjoying growth – including financial services, telecoms, IT for health, enterprise software, HR solutions and consumer products – but the burgeoning fintech sector is particularly noteworthy. Australia is on the verge of becoming the fintech centre of Asia driven by changes in government, the rise of fintech innovation hubs such as Stone & Chalk and an increased national focus on the sector.

While focal points for the fintech industry have popped up around the world, there’s yet to be a major player in Asia, and this is where Australia’s opportunity lies. Irish companies such as CurrencyFair, FEXCO and Fenergo have been seizing this opportunity over the past number of years.

Further opportunity lies in the increased construction and engineering activity to meet the demands of the oil and gas boom in Western Australia and Queensland. Australia will become the largest LNG producer in the world by 2017 following investment of around €179bn over the last seven years.

Combilift, Suretank, Chemstore, and Abcon among others supply the operation and maintenance of these facilities. While the economy has slowed as the mining boom wanes, be assured that end-users will buy, though it means buying cycles are often longer and negotiations harder to secure significant contracts.

Last year, prime minister Malcolm Turnbull pledged AU$1bn (€640m) to promote business-based research, development and innovation. This “innovation agenda” means businesses will have easier access to the €3bn spent by the government on IT each year via a new digital marketplace.

Since 2005, the Commonwealth, States and Territories have also been investing (through the Digital Health Agency) in key building blocks for a national e-health platform. These initiatives are boosting IT investment in the sector and delivering opportunities for Irish enterprises to provide solutions. This March, medical software company Oneview became the first Irish company to list on the Australian Securities Exchange due to their success in the healthcare sector here.

Advice for Exporting to Australia

When evaluating the Australia export opportunity, be aware of the vastness of the country. Larger companies who take on agencies often have an office in each of the major cities, while smaller partners tend to operate only in their local states.

Exporters should also be aware that given the distance from Ireland, many companies feel that by simply appointing a partner they have satisfied their market-entry requirements; however, agents and distributors in Australia often require as much servicing as direct sales teams.

The Irish diaspora is always willing to assist with market knowledge and introductions so help is at hand when choosing the best approach.

Mary Kinnane is Enterprise Ireland director for Australia/New Zealand

This article originally appeared in the Sunday Independent

Iran: From Zero to Trading Hero?

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With the lifting of economic sanctions, Iran could well be THE global market growth story of the coming year

It isn’t often that a large and mature economy opens for business with half the world in one fell swoop. But that’s exactly what occurred, following the lifting of sanctions, on the Islamic Republic of Iran.

Only the Saudi Arabian economy is currently bigger in the Middle East and North Africa (MENA) region, and Iran, with a population of some 80 million, almost two-thirds of whom are under 30, is poised to challenge for the number one spot in the coming years.

First Steps

Tehran Honorary Consul for Ireland in Iran Alireza Feizollahi says that a path is now being beaten to Iran’s door.

“Right now, if you want to book a hotel in Tehran, it’s almost impossible. Trade delegations are coming here every week from all over the world,” Feizollahi says. But he cautions that this is a highly regulated country and companies must carefully study the market to see how they can be successful.

Sean Davis, Enterprise Ireland’s Manager for the MENA region, has been closely following developments in Iran’s $400 billion economy. He points to a very real hunger in the Iranian business community for new technology and innovation to fuel economic development.

“Iran has been on the side lines of global growth for some time, and there is a huge appetite to redress that. All around, you get the sense of people driven to capitalise on the new opportunities.”

Given the closed nature of the economy in recent times, primary research, in the form of market visits and relationship building, is highly recommended. Davis stresses that preparation and planning are very important on every front, from securing the necessary business visa to identifying the best way to utilise your time there.

“Though English is commonly spoken, it doesn’t predominate. You won’t be able to use your ATM or credit cards, and Tehran is a very large and very busy city, and by no means cheap. Packing a short itinerary with meetings that criss-cross the city isn’t going to be a runner,” he warns.

Enterprise Ireland supported a number of exploratory visits, with sectors such as healthcare, aviation, agri-tech, education, ICT, financial services and fintech, all in the mix. Fintech is likely to be among the more immediate opportunities given that the country’s financial services sector requires considerable investment and upgrading as it reconnects with its peers across the globe.

For clients, Davis recommends the first step is to contact Enterprise Ireland itself. “We are building a contact base of people Irish companies can reach out to, who will help suggest meetings and allow them to hit the ground running.”

Search for Quality

Dr Amir Kordvani, a senior associate with international law firm Clyde & Co, advises on sectoral investments across the Middle East and recently undertook a detailed look at the potential Iran offers to companies across the business spectrum. “What Iranian businesses are looking for, and it will be a requirement to any procurement proposal, is to show that you are bringing the very latest know-how and technology to the country. They are not interested in something from 10 years ago,” he says.

Irish companies are frequently warned of long sales cycles when they enter a new market, but Kordvani’s view is that Iran could represent something of an exception. “It really depends on how strong you are in the area you are operating. However, generally, Iranians are very commercially minded, value strong relationships and are very frank and open, so it doesn’t take that long to build trust from that perspective.”

A final, but important, piece of advice is to recognise that, whatever field you operate in, the value of quality customer service as a differentiator cannot be overstated. “In the past, customer service has been very poor in Iran,” Dr Kordvani says.

“If you want to lead and exploit your opportunity, then you should prioritise your customer service and your after-sales support as much as the quality of your product. Companies that can do that will be very well rewarded in this market.”