Online Payment Systems in Turkish E-commerce - Merchant Experiences - 2015.02.24-en

Online Payment Systems

in Turkish E-Commerce:

Merchant Experiences

24.02.2015

EticaretSEM, TEB Incubator

İstanbul

1Accepting payment is now easy

https://www.iyzico.com

Predefined and Sequential Life:

Birth, School, University, Consultancy, Corporate Career, ...

2

@hakanerdogan

Life with Entrepreneurship:

Uncertain, ups and downs, stressfull, enjoyable, passionate, roller-coaster ...

1981 2005 2007 2012

2014Feb

Accepting payment is now easyhttps://www.iyzico.com

2014Nov

iyzico

3

Payment Systems Experience, Since 2007

Credit / Debit Cards :- EST / Asseco- Garanti Bank GVP- YKB Posnet

EFT / Wire Transfer:- Integration of

Internet Banking


Business Models in E-commerce

4

Business Model İş Modeli

Marketplaces Pazaryerleri

E-Retailers E-Perakendeciler

Classifieds İlan Siteleri

Private Shopping Özel Alışveriş Kulüpleri

Group Buying Grup Satınalma / Fırsat Siteleri

Verticals Dikeyler

Price Comparison Fiyat Karşılaştırma Siteleri

Services over Internet İnternet Üzerinden Hizmet Satan Siteler

… …


Business Models in E-commerce



Why Payment Systems are so Important ?

• Payment systems are major sub-ecosystems of e-commerce

• Payment Systems always grow parallel with e-commerce:



Why Payment Systems are so Important ?

• Banks and telco companies drives payment systems in Turkey

:

o BKM Express

o İş Bank Parakod

o Garanti Bank iGaranti

o DenizBank FastPay

o Turkcell Cüzdan

o Vodafone Cep Cüzdan

o TTNET & Avea Mobilexpress

o …



8

Chronology of Payment Systems in Turkey

iPara November 2011

PaymentWall Turkey Office October 2011

PayU Turkey Office September 2011

PaytoGo Mid 2011

PayPal Turkey Office Early 2011

Mobilexpress Early 2011

Asseco SEE July 2010


9


Vodafone Cep Cüzdan November 2013

Garanti Bank iGaranti May 2013

iyzico Turkey Office April 2013

DenizBank FastPay January 2013

İş Bank Parakod October 2012

Turkcell Cüzdan October 2012

BKM Express June 2012


10


…

…

Öde.Al April 2014

Monitise – Pozitron Acq. February 2014


Breakdown of Payment Systems in Turkey



Cash on Delivery and EFT / Wire Transfer

12

1. Asenkron Ödeme Sistemleri (Asynchronous Payment Systems)

a. Kapıda Ödeme (Cash on Delivery = CoD)

b. EFT / Havale (EFT / Wire Transfer)


Cash on Delivery and EFT / Wire Transfer

13

1. Asenkron Ödeme Sistemleri (Asynchronous Payment Systems)

a. Kapıda Ödeme (Cash on Delivery = CoD)

b. EFT / Havale (EFT / Wire Transfer)


Card Payment Systems

14

2. Senkron Ödeme Sistemleri (Synchronous Payment Systems)

a. Kartlı Ödeme Sistemleri (Card Payment Systems)

i. Kredi Kartları (Credit Cards) * 57 million

ii. Banka Kartları (Debit Cards) * 102 million

iii. Ön Ödemeli Kartlar (Prepaid Cards)

* BKM, August 2014: http://www.bkm.com.tr/istatistik/pos_atm_kart_sayisi.asp


http://www.bkm.com.tr/istatistik/pos_atm_kart_sayisi.asp


15


a. Kartlı Ödeme Sistemleri (Card Payment Systems)

i. Kredi Kartları (Credit Cards) * 57 million

ii. Banka Kartları (Debit Cards) * 102 million

iii. Ön Ödemeli Kartlar (Prepaid Cards)

* BKM, August 2014: http://www.bkm.com.tr/istatistik/pos_atm_kart_sayisi.asp


http://www.bkm.com.tr/istatistik/pos_atm_kart_sayisi.asp

Online / Digital Wallets

16


b. Alternatif Ödeme Sistemleri (Alternative Payment Systems)

i. Online / Dijital Cüzdanlar (Online / Digital Wallets)

BKM Express

iPara

PayPal

…


Online / Digital Wallets – BKM Express

17



i. Online / Dijital Cüzdanlar (Online / Digital Wallets)

BKM Express

iPara

PayPal

…














Mobile Wallets

22



ii. Mobil Cüzdanlar (Mobile Wallets)

İş Bank Parakod

Turkcell Cüzdan

TTNET & Avea Mobilexpress

iGaranti

Vodafone Cep Cüzdan

FastPay

…


Mobile Wallets – İş Bank Parakod

23



ii. Mobil Cüzdanlar (Mobile Wallets)

İş Bank Parakod

Turkcell Cüzdan

TTNET & Avea Mobilexpress

iGaranti


FastPay

…











SMS Based Payment Systems

27



iii. SMS Bazlı Ödeme Sistemleri (SMS Based Payment Systems)

Mikro Ödeme

PaytoGo

…


Infrastructure Providers

28

3. Altyapı Sağlayıcılar (Infrastructure Providers)

a. iyzico

b. PayU

c. PaymentWall

d. …


API Providers & Gateways

29

4. API Sağlayıcılar (API Providers & Gateways)

a. Asseco SEE (EST)

b. Garanti Bank - GVP

c. Yapı ve Kredi Bank - Posnet


Breakdown of Payment Systems in Turkey

30

Asynchronous Payment Systems

Cash on Delivery

EFT / Wire Transfer


Credit Cards

Bank Cards

Prepaid Cards

Online Wallets

BKM Express

PayPal

iPara

…

Mobil Wallets

İş Bank Parakod

TurkcellCüzdan

TTNET & AveaMobilexpress

iGaranti


…

SMS Based Payment Systems

Mikro Ödeme

PaytoGo

…

Infrastructure Paroviders

iyzico

PayU

PaymentWall

…

API Providers and Gateways

Asseco SEE

Garanti Bank GVP

Yapı ve KrediBank Posnet

Alternative Payment Systems

Synchronous Payment Systems


E-commerce Steps and Flows

31

SEO

Adwords

Affiliate

SEM

…

1- Traffic

$ $ $

Product Image

Add to Basket

E-commerce Site

Product Info

4- Add to Basket2- Registration

E-mail

Name

Surname

Password

Password (re)GSM

Sex

+90

Reg. Form

M F

Register

3- Desire

Search, browse, find

women shoes Search



32

Address(Delivery/Invoice)

Selection

Basket –Product

Selection

Payment Method Selection

PaymentResult





How to Increase Basket Conversion Rate

34

Address(Delivery/Invoice)

Selection

Basket –Product

Selection

Payment Method Selection

PaymentResult

SUCCESS = CONVERSION

SHOPPING CART ABANDONMENT

%65+ *

* http://www.ritholtz.com/blog/2012/05/shopping-cart-abandonment/* http://baymard.com/lists/cart-abandonment-rate

GOAL: To Increase Conversion

• Minimum page transition

• Minimum click

• Minimum distracting elements

• Maximum information

• “Above the fold” concept


http://www.ritholtz.com/blog/2012/05/shopping-cart-abandonment/

http://baymard.com/lists/cart-abandonment-rate

Minimum Page Transition and Click

35

Max. 3 pages

No name surname, bank selection, card type (visa, mastercard, amex) selection

If there is only 1 address then skip address page

Do not use 3DS in possible

Expire Month & Year is asked before CVC2 and formatted as 08/17


Minimum Distracting Elements

36

No Menu, banner, logo, ads, basket items are clear

Additional info is given in modal/lightbox without leaving page

Clear header and no links


Maximum Information

37

Clear breadcrumb

Card logo, bank, and association is displayed

Basket and address summary is displayed

All banks installments and given card installments are displayed

CVC2 and 3DS information is given


Above the Fold Concept

38

Visible area of page



39

Buttons and links are below the page




40


Buttons and links are placed in the visible area of the page





Design of Card Payment Page

42

Syntactic and SemanticValidations

• Length validation

• Numeric input validation

• 3DS supported card validation

• Debit card installment validation

• BIN validation and not existingVirtual POS – installment validation

• …

e.g.: Card Number• 15 or 16 digits, • CVV/CVC 3 or 4 digits, numeric• Luhn Algorithm check


http://en.wikipedia.org/wiki/Luhn_algorithm

Distribution of Payment Errors

• 20 – 25 % of payment requests are failed

• Roughly 1/3 of those failed payment requests are caused by “insufficient funds– not enough limit” (33 – 38 %)

• Other Payment Errors:

o General declined (15 – 18 %)

o Invalid expire year or month (10 – 12 %)

o Invalid CVV / CVC (2 – 3 %)

o 3DS not supported by card / bank

o Card does not support installment

o Can not proceed, card is not allowed to internet payments

o Technical problems, …



Error Messages to Display

44

• Your card number is not valid, …

• Your expire year and month is not valid, …

• Your CVV / CVC2 is not valid, …

• Your card does not support installment …

• You can not make installment payments with debit cards, …

• Your card limit is below the payment amount, …


Error Messages to Display

45

• Your bank does not proceed the payment request, …

• Your card/bank does not support 3DS payments, …

• Order ID is already used before, …

• The items you are getting to buy are out of stock, …

• Payment transaction is failed, …

• …


Payment and Refund Tests

46

Total 100 TL

20 TL

30 TL

50 TL

32 x Virtual POS x … ~ 100+ payment tests

Refund Tests

• Refund and cancel of 100 TL• Refund of 20 TL• Partial refund: 5 TL of 20 TL• Second partial refund: 10 TL of 20 TL• Cancel of refund of 100 TL • …



47

• Payment systems do not have a tolerance for a mistake

• You have to go live with 0 bug

• It’s better not to accept payment than accepting payment with bugthat you haven’t realize (it may be too late when you realize thebug)

• If there is a 2 minute outage, the alarm bells start to ring

• Payment systems for the health of the heart and blood vesselsMaximum adrenaline


Proactive Monitoring: Payment and Refund

48

Now is Thursday 03:40 pm.

Considering last week Thursday between 00:00 – 03:40 pm and last 4 week average:

o How many payment transactions requested ?

o What about the amout of those transactions ?

o What about the breakdown of those transactions based on Virtual POS’sesand card families?

o What about the success and failure rates ?

o What about the distribution of payment errors ?

o What about the standart deviation of those transactions ?

o …


Proactive Monitoring: Payment and Refund



• Daytime- Based on Virtual POS’ses

o The count of payment transactions in last 2 minutes > 0 ?

o The count of payment transactions in last 3 minutes

> (last 4 week average) x 0.85 ?

o The amount of payment transactions in last 5 minutes


o The count of payment errors in last 10 minutes


• At Night- Based on Virtual POS’ses

o …

Status Quo



Shopping Steps

Card Payment Page (minimalist approach, the maximum information)

Syntactic and Semantic Validations

Distiribution of Payment Errors

Payment Errors to Display


Proactive Monitoring

New Feature Development ve 4 Check Points

51

4- Is there a payment problem ?

51

1- Is there a Fraud risk ?

2- Is there a refund problem?

3- Is there an accounting problem?


Fraud and Chargeback

52

• Fraud detection, fraud prevention and monitoringmechanisms

o User’s history and profileo Item’s priceo Online item / offline itemo Payment location, IP address and cookie informationo Other cards used by the usero Cardholder name surname vs user membership name

surnameo Shipment address vs membership address informationo Payment errors encountered by usero Payment fail / success statistics of usero …


Fraud and Chargeback

53

• Fraud detection, fraud prevention and monitoringmechanismso Rule setso Learning systemso Data mining considering previous datao Potential risk algorithms

• Chargeback Flowo Chargeback requesto The appeals processo Returning/rejecting the chargeback request


Security

54

• Personal Security

o Using known and safe shopping sites

o Considering key-logger in public internet

o Using 3D Secure

o Using virtual cards

o … • Corporate Security

o Not storing card information

o PCI – DSS

o Audit

o Penetration tests

o …


No Response Payments



Thanks

56

@hakanerdogan

[email protected]

http://www.odemesistemleri.org

@odemesistemleri
