Embed Size (px)
DESCRIPTION
Traditionally, merchant expansion into international markets has been fraught with challenges from the payments side. The multitude of contracting needs and technical integrations required, combined with wide variations in payment habits and local market expectations often combined to prevent ISOs, Acquirers and merchants from expanding their CNP payments offering beyond international cards, and perhaps one or two of the "mainstream alternative” payment types. The result has been lost customers, lower conversion rates, and foregone opportunities. This, however, is changing. As North American merchants are pushing their payment providers to “follow them” into European, Latin American and Asian markets, the payments industry has responded with new technology, new services and new solutions that go a long way toward reducing the complexity, time-to-market and effort required for payment providers to “go international.” This presentation will look at the ways these international payment challenges are being overcome by globally-focused industry players, and will spark discussion regarding the right strategy for following merchants to new markets quickly, cost-effectively, and successfully.
Citation preview
Keys to Frictionless International Payments Acceptance
May 19, 2014 | CNP Expo, Orlando
Adam Bowman, VP, Sales and Business Development
PAY.ON America Inc.
WHO IS PAY.ON?
enables your payment businessGlobal, white-label, payments infrastructure provider
a neutral partnerNo direct contractual agreements with merchants
Subsidiaries
New York
Hongkong,
Salzburg,
Sales Offices & Partners
Umea, Moscow,
Sydney, Paris
Data Centres
London, Munich
Headquarters
Munich
LOCATIONS
Why aren‘t all payment providers already international?
The friction points inhibiting „going international“...
•Which currencies?•Which countries?•Which payment types?•Which channels/POI?•Which languages?•What commercials?•What technical architecture is needed?•What local support?•What level of service?•What go-to-market strategy?
offering the suitable payment setup in every region and market
offering a customizable payment infrastructure reflecting the merchant’s or PSP’s business model
payment processing through all channels and devices
Significant progress is being made toward „frictionless“ international payments
Payment solutions in 3 dimensions
offering the suitable payment setup in every region and market
offering a customizable payment infrastructure reflecting the merchant’s business model
payment processing through all channels and devices
Frictionless payments provided to merchants by 3-dimensional solutions
Source: CyberSource
Frictionless payments:1st Dimension: Suitable payment setup
Choose the right set of local and industry specific payment methods
Choose the right set of local and industry specific fraud prevention tools
14% lift Up to 25% lift14% liftUp to 25% lift
Prevalence of payment methods vary country to country.
Data are not complete, sample data only.
Frictionless payments:1st Dimension: Suitable payment setup
Data are not complete, sample data only.
Suitable fraud prevention tools vary by country, segment and payment method
Frictionless payments:1st Dimension: Suitable payment setup
Data are not complete, sample data only.
Suitable fraud prevention tools vary by country, segment and payment method
Frictionless payments:1st Dimension: Suitable payment setup
Alternative payment methods
• providing local payment methods to international merchants selling to Brazilian consumers
• one solution across the region
Brazil
Mexico
Colombia
Peru
Chile
Venezuela
Argentina
and other banks
national national
Frictionless Payments case study: allpago payment methods in Brazil
Credit and debit cards
Source: allpago
20%
+ 49%
+ 31%
80%Increase in market penetration withallpago bringing local payment methods
Payment penetration without allpago providing local payment types
Frictionless Payments: allpago growing merchant revenues through increased market penetration
boleto bancário and others
international credit cards
international
international
international
international
national credit cards
national national
Source: allpago
Credit Cards Boleto Bancario100,00 USD
-17,88 USD
-6,99 USD
75,13 USD
100,00 USD
-17,88 USD
-4,30 USD
77,82 USD
15,00 USD
90,13 USD
15,00 USD
92,82 USD
Revenue
Taxes
Cost & Fees*
Remitted Revenues
Taxes Recovered via allpago
Net Revenue
Total Net Revenue 90% 93%
*Excluding technical transaction fees of 0.25 USD per transaction
Frictionless Payments: allpago growing merchant revenues by ~20% through local tax recovery models
Source: allpago
offering the suitable payment setup in every region and market
offering a customizable payment infrastructure reflecting the merchant’s business model
payment processing through all channels and devices
Frictionless payments provided to merchants by 3-dimensional solutions
Merchant dashboard
Frictionless payments:2nd Dimension: All channels and devices
Today
Consumer behavior changes due to the increasing use of smartphones and tablets
In 2013, more people used mobile devices than desktop PCs or laptops for online retail (55% vs. 45%) .By 2018, mobile commerce is expected to grow globally to nearly 5 times its current size.In the US, by 2018 mCommerce will generate 32% of all eCommerce business, with a value of $131 billion (3X current levels).
32
o 76% of US smartphone users use their devices while shopping
o In 2013, US holiday shopping on mobile devices increased by 40% vs. 2012 to 29% of total on-line sales
o Over 80% of US mobile commerce sales over the 2013 holiday period were placed by iOS users.
Frictionless payments:2nd Dimension: All channels and devices
Sources: Goldman Sachs; PRS; IBM; ComScore
The blurring lines (and understanding) of “mobile payments” and “mobile commerce”
Source: Payworks
Description
Processing Type
Card Not Present Card Present
Merchant Type Offline Merchant
Mobile at POS
Shopper uses mobile wallet to purchase goods at POS
Mobile Wallet
Mobile as POS
Merchant uses mobile app to accept card payments
Mobile Chip & PIN
POS
Merchant uses POS terminal to accept card payments
TraditionalPOS terminal
Example
Frictionless payments case study: Opentabs
offering the suitable payment setup in every region and market
offering a customizable payment infrastructure reflecting the merchant’s business model
payment processing through all channels and devices
Frictionless payments provided to merchants by 3-dimensional solutions
Every currencyEvery language
Individual dashboards
Every channelEvery peak
Recurring payments
Managed services
Consultancy
24/7 support
Local data protection jurisdiction
Every country
eCommece platform plugins
One choice – no restrictions
Always PCI compliant
Local expertise
One reporting
Every ERP integration
100% reconciled
Frictionless payments:3rd Dimension: Customizable payment infrastructure
Frictionless paymentsBenefits for merchants
More revenues
• Increasing conversion rate
o up to 40% using local card acquiring
o up to 30% suitable local payment methods
o up to 15% One-page checkout process, Dynamic 3D secure, Recurring billing, ...
• All channels, from eCommerce to mCommerce, mPOS to POS
• A customizable payment platform to cater for individual needs
Source: PAY.ON Research
Reduced costs• Lowering the total cost of acquiring
• Using advantages of local collecting PSP models
• Using local and industry-specific fraud prevention tools
• Saving server maintenance and PCI costs
Frictionless paymentsBenefits for merchants
offering the suitable payment setup in every region and market
offering a customizable payment infrastructure reflecting the merchant’s business model
payment processing through all channels and devices
Frictionless payments: 3-dimensional solutionsMain take-aways
International coverage, deeper channels, flexible architecture…more easily achieved than ever before.
Thank you!E-mail: [email protected]
