A Global Omni-Channel Future
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Global e-commerce growing strong CAGR: 12.2% 180000000000 160000000000 140000000000 120000000000 100000000000 80000000000 60000000000 40000000000 20000000000 0 Note: EU B2C e-commerce forecasts differ across sources, but all estimates show steady growth in the next five years Source: Forrester Research (2012): European Online Retail Forecast: 2011 to 2016. The Asian e-commerce market generated about $377 billion in 2012, beating both the American and European markets.* 11,3% of Adyen transactions in Asia are coming from mobile devices. Adyen customer transactions from Asia have tripled since last year. *Forrester Research
Merchants are driving global innovation in payments
Early days of POS and ecommerce Acquirer Seller Issuer Buyer Acquirer Acquirer Seller Issuer Buyer Acquirer
ecommerce developing quickly Acquirer Acquirer Seller Issuer Buyer Acquirer ewallets Acquirer
Complexity is increasing with global requirements... Issuer Buyer Seller PSP
Mobile creates an additional sales channel Issuer App Buyer App Seller Mobile PSP
Social media becomes an additional sales channel Issuer App Buyer Seller App Mobile Social Media Social Media PSP
Merchants require multi channel solutions Issuer App NFC Buyer Seller App Mobile Social Media Social Media POS POS PSP
PSP's become regulated and move into acquiring role PSP Issuer App Buyer App Seller Acquirer Acquirer Mobile Acquirer NFC Social Media Social Media POS POS Platform Platform
What is next? PSP Issuer App Buyer App Acquirer Seller Mobile Virtual currency? Social Media Social Media NFC POS POS Acquirer Risk prevention Acquirer Branded wallet? Platform Conversion optimization Platform
Global Omni-channel solutions... a complex world Fraud Risk Local Entities Foreign currencies ts s o c n io t c a s n Tra Local payment culture ce i f f o k c a n B o i t a r g e t in Legal re gulation s Chargebacks Technical connections Scheme regulation Refusal rates Foreign l a Intercha n nguages ge Fee's
Payment platform requirements
What are retailers looking for?
Omni-channel challenges Only 32 % of retailers believe they have a successful omni-channel solution * Merchants use different platforms for different channels Merchants use different partners in different countries Gateways & PSP's use different processing platforms Acquirers use different platforms for different channels * RSR June 2012: Cross-Channel comes of age
Case Study: global hotel chain PAYMENT INFRASTRUCTURE POS Terminals : 5 models POS Acquiring: 5 acquirers ECOM: 1 PSP + 2 acquirers MOBILE: 1 PSP+ 1 acquirer IN STORE INNOVATION: 1 PSP MORE COUNTRIES ADD MORE COMPLEXITY
Realtime omni-channel insight Realtime insight in volume per account, terminal, channel and country High-level numbers and KPIs Available in daily and monthly versions
7 Global Payment Trends
1. Card Networks: Multichannel solutions Mastercard s MasterPass Wallet solution Pay with NFC, QR codes and online via mobile Increase conversion and convenience Visa s V.me Online and mobile wallet solution Allows faster and more convenient checkout Customize purchases alerts
2: MPOS devices to disrupt Point-of-Sale market Full compliant EMV readers to replace swipe solutions Devices should be: Cheap, Connected to internet, Secure, Compliant, Easy to use
3: Consolidated Multichannel solutions Merger & Acquisition + + + + + Integrated solutions
4: Big Data: Advanced customer insight
5. Online and offline converging Sold out items and limited collection in-store led to disappointed customers. Traditional customers are slow adopters of mobile sales channels. Solution: tablet assistant sales (TAS) in-store; combining offline and online shopping experience. 1. Order is placed through the online store. Payment is made in-store. Product is delivered to customers house. 2. 3. Result: Increased customer satisfaction and higher mobile conversion rates.
6. Real time cross channel fraud prevention systems Online At the point of sale Mobile Tokenized payment data storage Benefits: Cross channel customer recognition based on any card Cross channel fraud screening Cross channel refunds
7. New simplified offering for the SME market Ready to go configuration for a real time boarding Cards, ideal, ELV Easy implementation: Simplified API Plug-ins on ecommerce platforms One solution for point-of-sale and online
Key take aways A new payment infrastructure replaces legacy systems Some players aggregate platforms to cover the whole chain All payment industry players converge to an omni-channel offering New possibilities offered by multichannel payment and shopper data are unlimited The components of an omni channel commerce solution are becoming more and more complex while services to merchants emphasize on simplicity
For more information ADYEN BV Simon Carmiggeltstraat 6 1011 DJ Amsterdam The Netherlands Telephone +31 20 240 1240 www.adyen.com ROBERT KRAAL Robert.kraal@adyen.com +31 6 5378 5297 One solution All countries, all currencies Everyday innovation Worldwide support