POS terminals development, a perspective in Eastern Europe 17 TH CEESCA CONFERENCE - CONNECTS THOUGHT LEADERS STEVAN VUKOVIC

Transcription

1 POS terminals development, a perspective in Eastern Europe 17 TH CEESCA CONFERENCE - CONNECTS THOUGHT LEADERS STEVAN VUKOVIC

2 agenda Ingenico Group in a nuthsell Eastern Europe vs Western Europe cashless snapshot What next in Eastern Europe? Three way to grow cashless payments in EE: a Perspective 1. mpos 2. VAS at POI 3. Verticals Our vision moving forward

3 3 Ingenico Group in a nutshell

4 Ingenico global leader in seamless payments Empowering in-store, online and mobile commerce Operating the widest range and base of terminals (>22 Mns), and connected to more than 1,000 acquirers and banks, the Group s smart terminals offer more than 250 payment methods. Ingenico Payment Services turns complex financial transactions into seamless payment solutions. We leverage on historical position in Europe to set the ground for a global offer. The global reference in mobile acceptance today operates in 14 countries, serving 100,000 connected merchants and accounting for 70% of white label mobile solutions in the USA. 4

5 KEY FIGURES / 2014 Solid Financials & Dynamic Revenues growth Revenues 2014 Revenue split by Regions EBITDA 5

6 Ingenico Group in SEE A market leader focusing on innovation in seamless payment 14 European territories + Israel ANNUAL SHIPMENT SHARE IN % terminals delivered in 2014 PART OF INGENICO EASTERN EUROPE CUSTOMER BASE Main references Acquirers Intesa Sanpaolo, Societe Generale, Raiffeisen, Erste, Main references Retailers (Lidl, McDonalds, Agrokor, Delhaize ) PRODUCTS AND SOLUTIONS Our latest innovation on the field Full Ingenico Smart terminals Payment and Value added apps Field services Tailored Vertical solutions Payment services 6

7 7 Eastern Europe vs. Western Europe

8 Eastern Europe A huge market potential EASTERN EUROPE WESTERN EUROPE 188 Mns Habitants 179Mns of Cards POS x 2 x 3,5 x 4,8 x 4,8 391 Mns Habitants 643 Mns of Cards POS 8

9 Eastern Europe cashless payment growth drivers for acquirers Traditional merchants / Acquiring BAU - Contactless devices / Color screen devices / bring payments with highest security requirements and all payment means acceptance New merchants / Acquiring Generate new revenues by extension of merchants portfolio - Vertical markets entering with cashless devices ( i.e. Vending / Transportation) - Vertical markets entering with cashless solutions ( i.e. mpos) Keep merchants loyal/ Acquiring Up-selling by bringing value - Pushing value added services ( (i.e. VAS generating revenues to merchants) - Acquirers becoming VAS aggregator (i.e. Point of Services kiosks) 9

10 What next in Eastern Europe? New Merchants acquisition and Keep merchants loyal 10

11 M P O S mpos Enabling new merchants to accept cashless payments V A P O I VAS at POI Generating new revenues for merchants and acceptance opportunities V E R T I C A L S Verticals Enabling new segments with cashless payments 11

12 M P O S mpos Enabling new merchants to accept cashless payments 12

13 mpos : a significant potential worldwide mpos market growth is driven by complementary solutions to existing merchants and by micro-merchants Europe share in mpos shipments will reach USA level in mpos Shipments by Geography ROW APAC Europe US Source: Smart Insights 2014 report on mpos 13

14 Turn your smartphone / tablet / PC into a secure and mobile POS solution icmp Highest Security PCI-PTS 3.x, SRED certified All Payment Options EMV Chip & PIN, MagStripe, Contactless, NFC Telium 2 Sized for mobility Small and Perfectly flat, the icmp fits with all pockets Telium 2 Advanced Empowered to manage graphical libraries, TouchScreen & multimedia Optimized battery life Up to cover 3 days of work 14 Open up a wide range of opportunities to expand your mobile business leveraging the mobile commerce platform Bluetooth Connectivity Smartphone and tablet connectivity compatible with ios, Android and Windows world

15 Large Merchants are ready for mpos Use case: Retail/ Allianz Hungaria Customer Largest Insurance Company in Hungary Looking for an innovative mobile payment solution to avoid (pricing calculation erroros, cash acceptance) to have immediate cash-in Completing his digitalization strategy with mpos solution launch Why Ingenico? Reliable terminal platform and transaction authorisation speed and contactless acceptance The best fitted solution ( unique actually among solution looked at on) with customized expectations Perfectly suitable Merchant Commerce Manager back-office with perfect integration with the Customer BO Facts & Figures (4 months observation) 7000 tx 560 agents 30% of tx cless Key success factors of mpos solution Excellence & commitment in project coordination Ease, convenience, speed in set-up and operation Demateralized receipt for merchant and consumer (future proof/ paperless) Technical reliability, SECURITY 15

16 Small merchants are ready Use case/ PeP Pioneer with mpos contactless solution in Poland Customer PSO established in 2010, dedicated to small merchants Focusing on innovation in payment and value-added services Pioneer in card based bill payment and advanced rewards First contactless mpos provider in Poland Why Ingenico? Reliable terminal platform and transaction authorisation speed Perfectly suitable devices with customer changing needs: design, ergonomic, size & seamless use Fully certified (1 st solution certified by Master Card for contactless in Poland ) Facts & Figures (3 months observation) Different merchants segments on board (taxis, hospitality, mobile services, cosmetics...) 70% of tx cless, 30% C&P, no Magstripe Several 000 of tx so far Key success factors of mpos solution Easy, quick and convenient payment service. No printed receipt, no need for paper to store Technical reliability, «zero-issue» authorization process so far Well documented merchant portal to get transactions statistics 16

17 mposdeployment approach fitting with new merchants expectations: flexibility and seamless Flexible business model Easy & fast merchant activation Dedicated operations & support New distribution channels Limited commitment 17

18 V A P O I VAS at POI Generating new revenues for merchants and acceptance opportunities 18

19 Offering VAS at the POI New challenges for merchants and banks Merchants Boost daily store Increase revenues Diversify its core business activities Reduce operating expenses Banks Merchants acquisition and retention Differentiate from competition Strengthen security Develop cost reduction programs 19

20 Example : VAS revenue generation at French SMB merchants Increase revenues Small grocery stores Typology : urban zone, 1 to 3 employees VAS portfolio : mobile top up, e money Average net revenue per store : 50 euros /per month Convenience stores (tobacco, press, phone shops) Typology : urban zone, 1 to 10 employees VAS portfolio : mobile top up, gift card, e money Average net revenue per stores : 250 euros /per month 20

21 V E R T I C A L S Verticals Enabling new segments with cashless payments Vending, Transportation 21

22 Cashless payment the next step for Vending Time to move is now Cashless payment generate more revenues and bring security to Vending machines Secure & reliable Seamless purchase experience for Consumers ( no limited by cash in the pockets) Consumer could be refunded in real time Almost all consumers have a card or a smartphone Complementary revenues (cashless payment generate +5-10% revenues as per our field experience) Huge vending machines installed base in Eastern Europe ( >500K, estimation) High potential transactions number ( EU statistics, 6 Bn of items / year, 295 Mns of Consumer purchasing at least once per week Almost all Vending machines are only cash based 22

23 Cashless payment in Transportation Huge opportunity in all segments Card Present At the counter At Kiosk Wireless Use cases Public transportation: onboard, in-store, on-line Taxi : in-door, out-door, mobile parking, call a taxi VAS services Air Transport: Pay at kiosk for additional services Card not present On line On the move 23

24 Use case «Air Transportation» Tailored smart terminals and payment services for all sales channels Solution across Europe and in the US Our solutions More than 800 kiosks Several running projects with cross-border payment services Self-service kiosk equipment with unattended cashless payment devices Mobile payment devices for on board payment integrated with PDA/smartphones Centralised cross-border payment platform for transaction collection Consolidated reporting on several sales channels (desk, mobile, self-service) 24

25 Use case «Taxi» One stop shop offering beyond cashless payment acceptance Integration with taxi equipment Our solutions Call a taxi simply through a dedicated button on the POI Closed Loop Cards Management Terminals to call a taxi from Hotels, Restaurants, Airports, Stations, Leisure Centres, Shops, simply pressing a key Mobile payment devices for on board payment (banking payment and closed loop), w/gprs-3g link Centralised platform to manage Closed Loop Cards & reporting Integration with on board equipment for ride amount and duration control 25

26 Use case «Public Transportation» Addressing business needs and ready for the future Many tailored projects running worldwide In-store Online and On-board solution fully integrated with companies systems Dedicated business apps easy integration Our solutions Comprehensive unattended payment devices range for transport ticketing Broad range of countertop for attended Ticketing counters or travel agencies Wireless devices for on board payment, integrated with PDA/smartphones Card not Present management for remote booking (i.e subscription) and ticket issuing Contactless payment accepting prepaid and general purpose contactless card Compliant with cless Calypso & Mifare & Desfire Cards and EMV Cless cards Cross-channel payment with consolidated reporting on in-store, online and mobile channel Ready for Open Payments (open payment means bank cards use for transport/payment) 26

27 Our vision moving forward Combining innovation excellence in payment solutions to traditional merchants with out of box innovations to new targets for cashless payments 1 Keep focus on innovation securing continuity in delivery quality of traditional payment solution (this is very important for the banks) 2 Bring seamless solutions to acquirers to enter new merchant segments ( whatever the sales channel and the industry segment, reaching untapped segments) 3 Provide the link to new merchant - customer relations with future proof seamless offering with security always as a top priority ( mobile, online face to face) 27 Title of the presentation - DD/MM/YYYY

28 Thank you!