Smart Card Alliance Merchant Business Case Work Group. February 27, 2008

Transcription

1 Smart Card Alliance Merchant Business Case Work Group February 27, 2008

2 The Adoption Challenge Chicken or the Egg? USB peripherals or USB port? Is consumer acceptance driving demand at the retailer? If not, when will the scales be tipped? Are merchants fostering adoption with viable/available solutions? Does in-store marketing mirror the industry desire to migrate? Is the business case for new payment technology clear?

3 Merchant Business Case Work Group Objectives Merchant Web Survey 18 responses Good anecdotal data supporting business case efforts Merchant Case Studies Interviews with merchants ongoing. Several completed Difficult to get details as information is protected Don t want to share a good thing with the competition! Merchant Business Case To be presented today

4 Merchant Interview Overview Overview of Merchant Type of Business Number of stores Number of locations accepting Contactless Annual revenue POS configuration What POS equipment do you use? Electronic Cash Register Credit Card Payment Terminal Contactless Card Reader Installation Straight forward? Any hardware/software issues? Contactless interface used for other applications (e.g. loyalty, gift)?

5 Merchant Interview Overview Contactless Program Details When did you begin your Contactless payments program? What Contactless payment brands are accepted? Why did you decide to implement Contactless payments? Main business drivers?

6 Merchant Interview Overview Contactless Program Results to date Has it Improved competitive position? Has program met or exceeded expectations? Comments on results achieved to date? Data from program Increase in # of transactions Increase in transaction size Transaction Speed improvement: Customer satisfaction: Customer loyalty: Reduced cash handling: Improved POS reliability: Consumer feedback if any

7 Merchant Interview Overview Any implementation challenges? If so, how were they overcome? Was ROI analysis done prior to implementation? If so, what were the ROI drivers? If not, why not and have you done an ROI since? Perspective on NFC mobile payments Was this an important factor for your business? Future plans for Contactless payment? What can industry do to accelerate adoption?

8 Smart Card Alliance Merchant ROI Calculator

9 Goal of Calculator Paint a Merchant Acquiring Picture Is Contactless financially feasible? Is Contactless the right choice for my business? What is the payback on Contactless? Highlight Areas of Benefit Card Lift Chargeback Reduction Improved Transaction Speed Provide Relevant Data/Tools for Merchant Use

10 Data Entry Categories Revenue/Sales Information Stores Transaction Details Basic or Simple Advanced Using Numbers Advanced Using Percentages Contactless Penetration Transaction Speed Systems/Software Ongoing Support

11 ROI Review ROI Summary Revenue and Retailer Data Transaction Data Revenue by cash/check & by card Average transaction amounts by cash/check & by card Card lift created by using card versus cash Contactless penetration Chargeback Reduction is Straight Line Card Lift Assumption is Contactless Lift is same as Credit/Debit

12 Future Additions More Details Related to Cost of Money (cash/check) Account for Interchange Rates Support Surcharges for Credit/Debit Make Contactless Card Lift Configurable Gather default data for specific merchant SIC s Transaction Times Cash, check, card penetration Web-based Calculator Anonymously catch and aggregate different scenarios Create Issuing calculator for card Issuance programs

13 Questions & A Very Special Thanks! Questions? Thank You Special Thanks To: Chris Cox First Data Joe DeFilippo Capital One Cathy Medich Smart Card Alliance Bob Merkert USA Technologies Brent Bowen VP, Sales & Bus. Dev bbowen@insidefr.com