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CONVERSATIONAL COMMERCE
Entering the game with differentiated products & fast follower advantage
Conversational Commerce“Conversational Commerce refers to the intersection of messaging apps
and shopping”
“WeChat generates over $1.1 billion in revenue by offering its 440 million users an all-in-one approach,
letting them pay their bills, hail taxis, and order products with a text”
-TechCrunch
“Mobile Payments have grown from a niche market to a potential $700-$800 billion opportunity by 2017”
-Deloitte
How can VISA build a winning solution and be a key player in the global landscape of conversational commerce?
THE CHALLENGE
Peer to Peer
Telecom Partners Businesses
BanksBill Pay
Access the Network
What do they need?- Security
- Convenience
- Legitimacy- Connectivity
- Prosumer Status- Legitimacy
Keyboard Application Works across Messengers Variety of Payment Uses
Peer-to-PeerC2B, B2CBill PayApple Pay
Keyboards mean Big DataConnectivityIoT
“The Keyboard is key to conversational commerce”
VISAccess Keyboard
Online Mobile P2P Contactless Unbanked
Pre-Pay VISAccess:• Telecom Companies
Keyboard Partnerships:• Apple • Android
PARTNERSHIPS
Positions & Capabilities Value Barriers & Moats
• World’s largest retail payment network
• Partner network• VISAccess
• Visa developer platform
• Keyboard works across all applications
• Fast follower into conversational commerce
SUSTAINABLE COMPETITIVE ADVANTAGE
• For Merchants:• Instant authorization
will increase spend• For Consumers:
• Network effect• Convenience,
reduced friction• Accessibility• Security
• For Visa:• Capture merchant
value
• Strength and Scale of partnerships
• On-demand payment token generation
• Brand Loyalty• Unbanked markets• Data Analytics• R&D investment
• Localized “lablets”
COMPETITIVE ADVANTAGE
A
B
C
10, 15
5, 5
0, 0
6, 20
FAST FOLLOWER
Sequential Game Theory• Later moves mean more info• Differentiating strategic positions• Better forecasting & planning
VISA CUSTOMER
COMPETITION
• Trust/security• Brand loyalty• Network access• Personalization • Accessible
• Security/trust• Ease• Network access• Affordability• Personalization
• Accessible for banked• Security• Ease
• Ease
THE SWEET SPOT• Trust & security• Network access• Personalization• Accessibility• Ease
DIFFERENTIATION
WHY IT WORKS
LONG TERM POTENTIAL
Africa & SE Asia
• Increased e-commerce• GDP & small business growth• Partnership with WHO & UNDP• SMS communication, diagnosis, & transaction
for antibiotics (Malaria, ARVs, Dengue, etc.)• Drone delivery of antibiotics • Enhanced quality of life
Visa Developer APIs:• Geo-location• Real-time alerts• Automatically programmed transactions
Combined APIs Application: 1. Automatic contactless payments from smart-phones (Ex. City Metros, road pay-tolls )
2. Wearable technologies (synchronize agenda with payments)
Developed World: IoT
Internet of Things• Conversational Commerce
will change to a conversation between devices• When you enter the
Subway, you program your phone to pay your fare… and VISAccess is there
Smart PhonesFeature Phones
Unbanked
Banked
• Many competitive options
• No substitutes• Many new entrants• Consumer has
bargaining power
• Few competitive options
• No substitutes• Many new entrants• Consumer has
bargaining power
• Few competitive options
• No substitutes• Many new entrants• Consumer has some
bargaining power
• Many competitive options
• No substitutes• Many new entrants• Consumer has
bargaining power
SCENARIOS
MOVING FORWARD
TRANSFORM TECHNOLOGYo Fast follower advantageo 6 month smartphone keyboard launcho Free on app storeso Integration of VISAccess through all
communication channels via devices
DEEP PARTNERSHIPSo Developing world: Africa & SE Asia
telecom companies o Launch VISAccess SMS for feature
phoneo Developed world: Apple & Android
o VISAccess keyboard native to phones
EXPANDED ACCESSo Re-engage bankedo New market: unbanked o Enhanced ease o Life-changing access
DIGITAL LEADERSHIPo Constant innovationo Surpass competition
EMPLOYER OF CHOICEo Innovative leadership in
$700B market is attractive
