How do the dutch pay in 2013

HOW DO THE DUTCH PAY IN 2013?
September 2013
DON’T BELIEVE THE HYPE...........YET
25 September 2013 – Expert group Transaction - FINALCONFIDENTIAL AND PROPRIETARY © Shopping 2020

© Shopping 2020 – Expert group Transaction 11
Payments in NL anno 2013: cash, ‘pinnen’ and iDEAL
Offline: Maestro Online: iDEAL
93%
(market share, # electronic transactions)
58%
(Last used online payment)
Source: DNB, Currence
Remarks:
• In this report we refer to “pinnen” for what is actually a Maestro transaction

Agenda
1. Introduction and background
2. Payment contexts
3. How do the Dutch shop anno 2013?
4. How do the Dutch pay anno 2013?
5. Trends and examples

Expert group Transaction is part of a nationwide study
regarding current and future consumer shopping behavior
19 Expert Groups
Economisch
Demografisch,
Sociaal-Cultureel
Technologisch
Future
Touchpoints
Ecologisch Politiek / Juridisch
Future Trends
Orientation Selection
Transaction Delivery
Customer Care
Customer
Intelligence
Business
Models
Omnichannel
Organisatie
Veiligheid &
Fraude
De Nieuwe
Winkelstraat
Smarter
Shopping
Supply Chain
Shopping2020
Vision
Actieplan
S2020
Nederland
Travel
Actieplan
Finance
Actieplan
Retail
Actieplan
…
Actieplan
Customer Journey Key Themes
Online
Ondernemen
Shopping2020 study

Michel Drupsteen
Sr. Business consultant
ING Bank
Wieske Ebben
Policy Advisor Payment
De Nederlandsche Bank
Max Geerling
Director Card Products & iDeal
Currence
Rene Hodde
Executive Director
Chess Group
Rob Hoitink
Productmanager iDEAL
Currence
Rommert Jorritsma
Consultant Payment Systems
Intersolve
Expert group Transaction: well-grounded with 23 payment
experts from diverse backgrounds (1/2)
Eric van Vuuren (Host)
Business Developer
Equens
Shikko Nijland (Chairman)
Managing Partner
Innopay
Paul Alfing
Policy Adviser
Thuiswinkel.org
Simon Berende
Senior Product Manager Consumer Payments
ABN AMRO Bank
Gert Blom
Manager Strategic Alliances
Paysquare
Gijs Boudewijn
Hoofd Betalingsverkeer & Veiligheid
Nederlandse Vereniging van Banken

Marja van Kalveen
Teamleider productmanagement
Toonbankbetaalproducten
Rabobank Nederland Bedrijven
Gerben Klop
Strategy and Business Development
xXess360
Jip de Lange
Consultant
Innopay
Okke Mönking
Business Leader Acceptance
Mastercard
Raoul Manten
e-Commerce manager
Maxeda
Tom Nijenhuis
Head of Strategy & Development
Equens
Jaques Parson
Detailhandel Nederland
Noor Pierik
Sr. Marketeer Cards Acquiring
Equens
Marja van Reijn
Regional Manager
Global Blue
Michel van Westen
Voorzitter
VBIN
Dennis Wooning
Sr. Productmanager Debit- & Credit Cards
ABN AMRO Bank
Expert group Transaction: well-grounded with 23 payment
experts from diverse backgrounds (2/2)

Expert group Transaction covers the Customer Journey from
Shopping Basket to Check-Out
Source: Bonsing/Mann
ORIENTATION
Visibility
Accessibility
Look & feel
User experience
Performance
Functional elements
SELECTION
Shop entrance
Shop interface
Product search
Product information
Price & delivery details
Selection enhancement
Selection flows
TRANSACTION
Shopping basket
Check-out entry
Opt-in
Check-out-flow flow
Delivery details
Payment flow
Policies & services
DELIVERY
Order confirmation
Track & trace
Deliverance
Unboxing
Returns
CUSTOMER CARE
Follow up
Feedback options
Review options
Customer care
Customer profile mgmt.
How visible, accessible and user
friendly is the site in all channels and
on all devices.
How attractive, easy or inspiring is it
to select products and services. Does
it enhance your shop experience.
How customer friendly, easy and
trustworthy is the transaction
process. What are the payment,
delivery and personalisation options
offered.
How is the process after the
transaction structured. Is the delivery
process adequate and a pleasant and
convenient experience.
How is the customer care and
personal follow-up after the purchase
and what is the level of customer
centricity during all 5 steps of the
process.
SCOPERESEARCHQ
© Bonsing / Mann time
Expert group
ORIENTATION
Expert group
SELECTION
Expert group
TRANSACTION
Expert group
DELIVERY
Expert group
CUSTOMER CARE
Expert group RETAIL LOCATIONS & FUNCTIONS
Expert group RETAIL ORGANIZATION
Expert group CUSTOMER DATA VALUE MANAGEMENT
EXPERTGROUPSSHOPPHASE

This report covers the current situation in transactions
‘Shopping Today’
(2013)
Shopping2020
(To be delivered in January 2014)
Central Research Question Shopping 2020
How does the consumer shop in 2020 and which actions should be taken on national, branch and
company level so that Dutch B2C operating companies can anticipate on that, nationally and
internationally?
Research Questions expert group Transaction
1. What is the current situation for transactions in
Dutch retail practice?
2. What are current trends and examples?
1. What are the most important trends. points for
improvement and opportunities in transactions?
2. What are the most likely future scenarios?

Phase 1: ‘Shopping today’ Shopping2020
Two-phased approach: ‘Shopping today’ and ‘Shopping2020’
Reports ‘Shopping Today’ and ‘Shopping2020’
1. What are the most likely future scenarios?
2. How do we get there from the current situation?
3. What are preconditions and relevant developments in order to make these scenarios become reality?
Future trends (other expert groups)
‘How do the Dutch pay in 2013?’
Work streams on various topics
Determine
scenarios
ImplicationsGather
information Document
September 26:
‘Shopping Today’
January 22/23:
‘Shopping2020’

Agenda
2. Payment contexts

How consumers and merchants are related: a two-sided
market
Two-sided markets:
• Two distinct user groups with different needs that are interdependent
• Network effects: benefits of usage are experienced across sides
Challenges:
• Reach is a chicken-and-egg phenomenon
• Winner takes all dynamics
• Pricing of services across both sides: often one side is subsidized by the other side. In payments, the
payer is subsidized by the payee
Source: Innopay
Purpose of the chapter:
• This chapter illustrates the factors determining how merchants and consumers choose their preferred
payment method.
• Furthermore, this chapter shows how shopping and payments are related.

Transactions consist of three processes: agreement,
payment and delivery
Transactions are determined by contexts
• The ‘transaction context’ is the total of situational circumstances in which three processes of the
transaction take place: agreement, payment and delivery
• A successful transaction typically consists of two actors: buyer and seller
• Risk is at the heart of every transaction, for buyer and seller
Source: Innopay

e-Commerce changed the relative timing of the three
processes, resulting in unbalanced risks
• In traditional commerce, three processes are executed at one time, in one place: agreement, payment,
delivery. The Risk is balanced.
• The introduction of new channels such as internet changed the dynamics of transactions. Transaction
processes are now disconnected in time and place, introducing unbalanced Risks.
• These risks can be characterized by four risk factors:
• Relation (r)
Do buyer and seller know or even trust each other?
• Product (p)
What is the value and substance of the product involved?
• Location (l)
Where does the transaction take place?
• Timing (t)
In what order are Agreement, Payment and Delivery executed?
Source: “Understanding buyer and seller behaviour for improved payment product development”, C. Liezenberg, D. Lycklama, H. Smorenberg. Journal of Payment Strategy & Systems, April 2007
Point of Sale
transaction
Internet
transaction
A
Agree
P
Pay
D
Deliver
R
Risk
A
Agree
P
Pay
D
Deliver
R
Risk
RA RP
RD
Context:
Relation (r)
Product (p)
Location (l)
Timing (t)
A
Agree
P
Pay
D
Deliver
R
Risk

Timing determines whether Buyer or Seller bares the risks
Timing (t): The timeline and order in which the processes are executed. Processes can be executed
simultaneously or disconnected. In the latter case the order of Payment and Delivery can be swapped.
This leads to three generic types of timing.
Source: Innopay
A
Agree
P
Pay
D
Deliver
Pay in advance
Risk with buyer
time1
A
Agree
D
Deliver
P
Pay
Pay afterwards
Risk with seller
time2
A
Agree
P
Pay
Pay and delivery at same time
Risk equally divided
time3a D
Deliver
A
Agree
P
Pay
time3b D
Deliver

… leading to endless payment methods to match all contexts

Person-to-Person Consumer-to-Business
Proximity
 Cash  Debit and Credit Cards
 Prepaid
 Wallets
 Giftcard
 Cash
Remote
 eWallet
 Credit transfer
 Online Banking ePayments
 eWallet
 Credit transfer
 Debit and Credit Cards
 PayPal
 Gift Cards
Every context has its own payment methods
1
4
2
3
Source: Innopay 2010

Payment and Loyalty and related fee structures are mainly
based on three or four corner models in 2013
2.Merchant1.Consumer
3.Issuer 4.Acquirer
PSP
(Clearing &
settlement)
(C&S)
Good/
Servicess
Authorisation Paymen
t
TRX FeePeriodic
Fee
4-corner payment model 3-corner payment model
2.Merchant1.Consumer
3.Service
provider/
Bank
PSP
Goods/
Services
PaymentAuthorisati
on
TRX Fee
Periodic
Fee
2.Merchant1.Consument
EGI
autorisatie
CPSP
3.Brandowner
Giftcard (C&S)
Goods/
Services
3-corner gift card/loyalty model
• Most payment methods and fee structures in The Netherlands are based on a four corner model (f.i.
debit card, Maestro, Mastercard, Visa, iDEAL)
• Interchange fees are relatively low in The Netherlands compared to EU
• Most gift/loyalty methods are based on a three corner model
• 1.2B euro is paid in gift cards and vouchers in NL in 2012
Source: Intersolve, Innopay

Since the beginning of e-Commerce, we’ve seen continuous
evolution of the payment landscape …
• Both three and four party models have adapted for usage on the internet
• Ever more niches demand new functionality and therefore new payment methods
Source: Innopay
1995 20152005
2. Making traditional payment products
suitable for use on the internet
(...cards were never designed for the web…)
3-party based challengers
4-party based challengers
3-party
model
4-party
model
New 3-party based challengers
Online Banking
based ePayment
Volume
1. In the beginning, there
were cards
4-party
model
3-party
model
3. New payment methods were
designed specifically for use on the web
4. In reaction, the 4-party paradigm
was translated to the web
5. New contexts demand new
functionality. A new wave of 3-party
models aims to fulfill these needs

… but only a few new payment methods make it through
their infancy
Source: Innopay, Equens
• As new payment methods will need reach to become successful, many do not survive for long
• As the uptake of the payment method takes too much time, merchants and consumers will
loose faith and abandon the novelty
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Cash
PIN
Maestro / V Pay
Chipknip
MasterCard / Visa
Acceptgiro
Wallie card
MiniTix
eWallet
Bill
iDEAL
Travik
Payter
emPayment!
Mobiel betalen NL
Payment products on the Dutch market (non exhaustive)

Successful payment solutions provide Reach and Conversion
against fair Cost
Reach
Cost
1.
2. 3.
Conversion
Merchants:
1. REACH: Merchants are looking
for those payment methods
that their target audience
uses: this makes a visitor an
potential customer  reach
2. CONVERSION: Payment
methods that consumers
trust, that are fast and easy to
use increase the number of
potential customers that
actually buys  conversion
3. COST: The cost of payment
methods are primarily born by
merchants. Therefore,
merchants will offer those
payment methods that are
most economical for them.
Fraud can also be regarded as
a cost factor  cost
Source: Thuiswinkel, Innopay
Consumers:
1. REACH: Consumers choose
payment methods that are
widely accepted by
merchants  reach
2. CONVERSION: From those
payment methods that
merchants accept, consumers
will choose those that they
trust, that are fast and easy to
use  conversion (ease-of-
use)
3. COST: Although consumers
might not be very aware of
the cost of the payment mix
they use, they do
acknowledge cost factors like
risk  cost

Summary: new payment contexts demand constant
development of payment methods
• The choice of a payment method depends on the context
• Many factors determine the context of a payment, which leads to many different contexts
• This could lead to many different payment methods to cater for all these contexts
• Risk (or perceived risk: trust) is a determining factor in the choice for a payment method by
consumers and merchants
• The rise of the internet introduced a totally new context in which new risks were introduced
• The challenge is to balance ‘fit-for-purpose’ (a payment method should meet the requirements of
the specific context) with ‘simplicity’ (fragmentation leads to complexity for merchants and
consumers)
• Successful payment methods balance reach, conversion and cost
• The added value of payments is to create loyalty (enable the building of client shopping profiles and
provide relevant merchant offers)

Agenda
2. Payment contexts

NL Shopping landscape: small supermarkets, historic city
centers and domestic e-Commerce
The Dutch shopping landscape is characterized by:
• Small distances and therefore relatively strong regional shopping areas, located in old city centers
• Shopping areas often restricted to (historic) city centres
• Absence of hyper markets and relatively small number of ‘big-box retailers’
• A relatively strong e-Commerce sector
Source: Van der Gijp 2013, Innopay analysis
• This chapter illustrates the factors determining where and how consumers shop anno 2013

Online shopping is growing, while offline retail is declining
0
2
100
90
80
70
60
50
40
30
20
10
0
12
16
14
10
8
6
4
TurnoverinBillion€
2013
79
11
2012
83
10
2011
87
Percentage
89
8 9
2009
92
7
2008 2010
5
6
2007
83
90
Offline retail turnoverOnline retail turnover% online retail / total retail
+14%
Development online vs. offline retail (NL)
-10
-5
0
5
10
15
20
25
30
35
40
45
2005 2006 2007 2008 2009 2010 2011 2012
Percentage
Growth compared to the previous year
Retail Total Online Retail
• The Dutch online market is one of the most developed e-Commerce markets in EU (after UK ~96 Bn, DE ~50
Bn, FR ~45 Bn online sales of goods & services [2012])
• In NL online retail will account for 12% of total retail turnover in 2013
• The double digit e-Commerce growth in NL is stabilizing at ~ 10% per year since 2013
• The vast increase of online retail until 2030 is for nearly 30% at the expense of offline retail
• The prices in offline retail have increased, as the amount of goods sold (i.e. volume) have decreased
substantially since 2009, while recovery is not expected in the short term (> 2015)
Source: Thuiswinkel.org, ING Economisch Bureau, Internet World Stats, Emerce, E-commerce Europe, Roland Berger, CBS, Innopay analysis

Stable retail landscape, in spite of declining turnover
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6120
110
100
90
80
70
60
50
40
30
20
10
0
#companiesinthousands
2013
31
12
10
4
3
1
2010
32
12
10
10
14
7
4
3
1
2009
33
12
10
1
2008
33
12
10
10
11
7
4
3
1
2007
32
12
10
10
10
7
4
3
1
3
4
7
13
11 10
24
7
4
3
1
2012
32
12
10
10
21
7
4
3
1
2011
32
12
10
10
17
7
Street trading '(no shop or market)
Shops in recreational items
Supermarkets and department stores
Shops in consumer electronics
Gas station
% growth y/y retailMarket trade
Shops in food products
Shops in other household goods
Shops in other articles
• Declining turnover of total retail sector is not (yet) reflected in the number of businesses
• Number of shops over verticals is relatively stable, except for alternative (micro) retailers, ~16% yoy
• Top 10 largest retailers all active in ‘Food’ ((top 10 retailer (# shops): Ahold (759), Jumbo (685), Aldi (480),
Emté (Sligro) (130), Plus (270), Lidl (270), Super de Boer(20), Makro (17), Dirk vd Broek (99))
Division of verticals in Dutch retail
+2%
Source: CBS, Innopay analysis

e-Commerce in the Netherlands compared to Europe: high
internet penetration and uptake of online shopping …
0
20
40
60
80
100%
EUDEFRUKNL
% of online shoppers / total population
’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12
200
150
100
50
0
350
300
250
EUDEFRUKNL
Mn Number of online shoppers
% Internet penetration (2012)
’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12
100%20%0% 80%60%40%
DE 83
FR 80
UK 84
NL 93
EU 73
• % Online shoppers in NL as part of
total population well above EU
average and leading e-Commerce
countries
• High internet penetration in NL
contributes to high share of Dutch
population shopping online
• Although a modestly sized market,
the Netherlands is seen as one of
the frontrunners in e-Commerce
Source: ANVED, Datamonitor, Euromonitor, Ecommerce Europe, Innopay analysis

0
20
40
60
80
100
120
140€
EUDEFRUKNL
Average transaction value (’10 – ’12)
3,500
3,000
2,500
2,000
1,500
1,000
500
0
€
EUDEFRUKNL
Average yearly online spending per user (’10 – ’12)
’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12 ’10 - ’11 - ’12
• Average yearly spending is relatively low, even lagging behind EU average
• Relative success of the Dutch online market is due to the high percentage of people shopping online
• Next wave of growth to be expected from increased spending of experienced users
• An average spending per user in line with other EU markets would result in a growth of 35%!
… although average spending per user is relatively low
Source: ANVED, Datamonitor, Euromonitor, Ecommerce Europe, Innopay analysis

e-Commerce in the Netherlands highly concentrated in small
number of large retailers
Top 10 Top
11-100
Outside
Top 100
1.8
2.0
2.0
3,2
Travel
• In 2011 the top 100 online retailers represented € 3.8 Billion revenue (an increase of € 700 Million compared
to 2010), this exludes the large Travel websites (e.g. KLM), that accounted for € 3.2 Billion revenue
• The top 100 online retailers account for ~70% of online retail turnover and growth in online retail is primarily
claimed by larger online retailers
• The trend that large webshops will grow further and smaller players will either be acquired, remain small or
drop out, is likely to continue in the future
• Although 5 of the top-10 e-Commerce players have offline operations, channels still seem strictly separated
RevenueinBillion€
70% 30%
Distribution of (B2C) online retail revenue (NL)
Note: total online turnover amounted to € 9 Bn in 2011
110
83
94
106
108
108
130
200
358
469
BAS Group
(e.g. MyCom)
KPN
Ahold
Bol.com
RFS Holland Holding
(e.g. wehkamp.nl)
Amsterdamgold.com
Thuisbezorgd.nl
HEMA
H&M
Coolblue
Online retail revenue in Million €
Top 10 online retailers (NL)
Source: Twinkle, Innopay analysis

Summary: Dutch consumers are embracing ‘online’, although
in 2013, online and offline still seem separated channels
• Offline retail is dominant, but growth is centered in e-Commerce
• There is a trend of retail shifting towards larger businesses. This trend is strengthened by the growth
of online, where large, professional players are dominant
• Top 10 retailers are all supermarkets with (very) limited online activity
• Small group of businesses sets the standard for the way people shop and pay in the Netherlands
• Offline and online channel still seem to be strictly separated

Agenda
2. Payment contexts

Offline and Online can still be considered as two different
payment channels in 2013
Remarks:
• Payments can be initiated in the real world; Offline or in the digital world; Online
• This context determines the choice of payment method
• In our research m-Commerce is considered a type of e-Commerce and thus online
• In this report we refer to “pinnen” what is actually a Maestro/V Pay transaction
Offline Online
+
• In this chapter the most important payment methods for the Dutch market are described

If the consumer is not already registered, online payments
are typically more complex than offline payments
1. Choice of
Products
2. Account-
registration
2. Log In
7. Order
Tracking
6. Validation +
Order
Referention
5. Payment-
proces/
Authorisation
3. Order Check
4. Choosing
Payment
Method
2. Filling in
Contact/
Delivery Details
2b. Log In
2a. Filling in
Contact/
Delivery Details
Online
2. n/a 7. n/a
6. Validation +
Order
Referention
5. Payment-
proces/
Authorisation
3. Cash
Register/ Order
intake
4. Choosing
Payment
Method
1. Choice of
Products
Offline

Main differences in the Transaction flow are in Checkout,
Delivery details and Payment Flow
Basket Checkout Delivery
details
Payment flow Receipt Service Policies Payment
method
Device
Offline • Physical • Loyalty card • NA • Pay now • Paper
• Email
• On site
• Phone
• Law:
“Verkoop en
garanties
voor
consumenten
goederen”
• Cash
• D/C Cards
• Giftcards
• Kassa
• Terminal
• Dongle
• Mobile
Online • Virtual • Log-in
• Input prefs
• Input
prefs
• Stored
prefs
• Virtual
register
• PSP
• Email • Website
• Phone
• Law: “Kopen
op afstand”
• PSD
• iDEAL
• Credit card
• Paypal
• Acceptgiro
• DD/CT
• Cash on
delivery
• Giftcards
• PC,
• Laptop
• Tablet
Mobile • Virtual • Log-in
• Input prefs
• Input
prefs
• Stored
prefs
• Virtual
register
• PSP
• Email • Website
• Phone
• Law: “Kopen
op afstand”
• PSD
• DD/CT
• Paypal
• Acceptgiro
• Cash on
delivery
• Smartphone
• Tablet
Orientation Selection Transaction Delivery Customer Care

Current Account is the core funding source of basically all
payment methods
Offline Online
Funding
Channel/
Payment-
product
Context
SEPA
Direct
Debit
Internet
Banking
Credit
Card
Cash
Debit
Card
Cash
Credit
Account
Stored
Value
Virtual
Currency
Loyalty/
Points
Current
Account
Loyalty
Card
Prepaid
‘Card’
Wallet
iDEAL
SEPA
Credit
Transfer
Gift
‘Card’

A broad variety of loyalty schemes and gift cards exist as
‘alternative currencies’
Legal supervision for consumer protection (e.g. In case of bankruptcy) differs among the
products: FRS, Cadeaubox and the paper VVV bon lack legal supervision, while the consumers
enjoy protection with the electronic ‘boekenbon’
Types of loyalty programs and examples
Brand Retailchain
Brand combinations Savings Card
Branch combination Temporary Savings
Program
Shoppingstreet/ -mall Gift Cards Closed-loop
Semi-open-loop
Open-loop
Source: Intersolve

70%
100%
90%
80%
60%
50%
40%
30%
20%
10%
0%
2012
93%
6%
2005
88%
10%
2% 1%
2011
92%
7%
2%
2010
91%
8%
1%
2009
90%
8%
2%
2008
89%
9%
2%
2007
88%
10%
2%
2006
88%
10%
2%
PINChipknipCreditcard
1.000
1.500
2.000
2.500
3.000
0
500
+8%
2012
2.474
148
38
2011
2.285
172
39
35
2008
1.756
176
37
2007
1.588
175
34
2006
1.451
164
1.946
2005
1.334
147
30
#transactions(millions)
177
2009
35
178
2.154
2010
32
Split of electronic payment methods relatively stableNumber of electronic payments in NL
Offline - Dutch still like to pay with PIN (Maestro)
• In this report Maestro (or V-Pay) transaction are called PIN transactions since this is the commonly used term
by Merchants and Consumers
• Chipknip was introduced in ’96 as a payment scheme to facilitate low value payments, i.e. payments under € 10
• Credit cards are in NL mainly used for high(er) value payments (travel, clothing, catering) rather than everyday
purchases, thereby explaining their limited share of total transactions in the offline context
Source: DNB, Innopay analysis

Offline – # Debit card transactions is increasing considerably
2000 2002 2004 2006 2008 2010 2012
0
20
40
60
80
100
120
1403.000
2.500
2.000
1.500
1.000
500
0
Trxvaluein€
#oftrxinMillions
Avg. Debit Card trx value
Total # of Debit Card trx NL
Development # of debit card trx
and avg. trx value at POS (NL)
2008 2009 2010 2011 2012
0
20
40
60
80
100
120
140
20
40
60
80
120
140
100
160
0
Trxvaluein€
#oftrxinMillions
Avg. Credit Card trx value NL
Total # of Credit Card trx NL
Development # of credit card trx
and avg. trx value at POS (NL)
• Convenience, speed and (lower) costs (for merchants) have driven the increase in debit card transactions
• Phasing out ‘Chipknip’ in 2015, the intended Dutch payment method for low value payments, and campaigns
such as ‘Pinnen, ja graag!’ and ‘Klein bedrag? Pinnen mag!’ has also contributed to the increase in debit card
transactions and a decreasing value per transaction
• Low value payments represented ~ 30% of total offline debit card transactions in 2012
• Average transaction value of credit cards has been rather stable for several years at ~ €120,-
Source: BVN, Currence, Panteia, Innopay analysis

Online - iDEAL by far most used for internet payments
1%
1%
1%
2%
3%
4%
4%
8%
13%
58%
1%
1%
1%
1%
3%
4%
7%
8%
14%
54%
1%
1%
1%
1%
4%
5%
5%
6%
13%
58%
0% 10% 20% 30% 40% 50% 60% 70%
One-off Mandate
Cash
PIN
Recurring Mandate
Acceptgiro (paper)
PayPal
Online bank credit transfer
Credit Card
Acceptgiro (Online)
iDeal
Buyers 2011-2 (n=1296)
Buyers 2012-1 (n=1440)
Buyers 2012 -2 (n=1453)
Note: the percentages indicate market shares based on surveys
• iDEAL is the most used (58%) and preferred (74%) payment method online in 2012
• Pay later payment methods are also popular in 2012 (21%)
• The Accept giro will be phased out in 2019, leaving an opportunity for other payment methods to fill the gap
Top 10 payment methods used last purchase
Source: Blaauw, GfK 2013
Prefered online payment method
2%
4%
4%
74%
7%
10%Acceptgiro
(Online)
iDEAL
One-off
Mandate
PayPal
Other
Credit Card
20% 40% 60%

120.000
110.000
100.000
90.000
80.000
70.000
60.000
50.000
40.000
30.000
20.000
10.000
0
Numberoftransactions
2012
116.870
2011
93.063
2010
62.961
2009
43.575
2008
27.865
2007
14.811
+51%
Number of iDEAL Transactions (1,000)
Number of iDEAL transactions is growing rapidly
• 117M transactions with a total value of 8.8B EUR in 2012
• Number of iDEAL transactions has increased with a CAGR of 51% between 2007 and 2012
• Number of iDEAL transactions is growing faster than e-Commerce
• Consumers state that they prefer iDEAL because of high trust and convenience
Source: DNB, GfK, Innopay analysis
Why do consumers prefer iDEAL
5% 10% 20%15% 25%
Habit
Fast
Convenient
Familiar
Safe

Roughly the same preferences for mobile payments as for
online payments
1%
11%
2%
5%
7%
5%
6%
8%
54%
0%
2%
2%
1%
4%
7%
8%
6%
70%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Do not know
Other
One-off Mandate
Cash
PayPal
Online Bank credit transfer
Credit Card
Acceptgiro (Online)
iDeal
Payment method last mobile order 2012
Tablet(n=225)
Smartphone (n=196)
Source: Blauw 2013

Though electronic transactions score relatively good
compared to other EU markets, cash is still popular
0 10 20 30 40 50 60 70 80 90 100
75
Spain 80
Italy 89
Poland
Nordics 46
France 50
Netherlands
90
Greece 97
%
52
Belgium 54
UK 57
Austria 64
Switzerland 66
Germany 69
Ireland
Cash’s share of total transactions NL 2011 (%)
• Compared to other EU countries NL has a lower % of
cash transactions
• Merchants value cash payments due to its
ubiquitous acceptance and the direct income of
revenue streams, while consumers experience cash
payments as easy and ‘common’
• Despite the fact that average costs for a debit card
trx are lower (~€ 0.21 ) compared to cash payments
(~€ 0.24), > 50% of transactions are cash based
• For certain contexts, alternatives for cash are not
considered valid
• However, the higher costs, safety risks, counterfeit
money and the administrative handling are reasons
for merchants to revert to debit card payments
• Cashless checkouts continue to grow in NL
• Cash will also remain the number one fall-back
option in case the electronic payment system
encounters technical problems
Source: McKinsey, Innopay analysis

Summary: Dutch like to pay with Cash, ‘pinnen’ and iDEAL
• Offline and online can still be considered as two different
and not yet integrated payment channels
• In spite of all the fuzz around new payment methods, Dutch
still like to pay offline and electronic with Pin: 93% (2012)
and online with iDEAL: 58% (2012)
• Pay later payment methods are also popular online since it
decreases the (delivery) risk for the consumer
• Current account is still the core funding source of almost all
payment methods
“Cash is still king”

Agenda
2. Payment contexts

Many trends have been identified of which nine have been
selected as most likely to change the way Dutch pay
Transaction
Technology
Economy
&
Society
Legislation
&
Regulation
3. Digital wallets
4. Changing POS interaction
9. Increasing regulation
1. Digital identity
7. Consumer in control
5. Changing checkout
6. Convergence of channels
8. P2P payment
2. Mobile shopping and payments

Trend 1: Digital identity
Using a single digital identity throughout the shopping experience can enable seamless payments
Increasing electronic interaction between parties
leads to demand for identification/authentication
in the virtual world, thus requiring a trust
framework and providing the participants with
clarity on rules of engagement , risk and liabilities
Since trust is a basic requirement for consumers
and merchants to participate in (e-)commerce,
having an online identity which is as strong as a
real-world identity is the ultimate solution
Description
• During current e-Commerce shopping
experience, consumer identifies multiple times;
towards the shop, payment provider and
delivery service provider
• Having a single digital identity decreases
customers effort of multiple identification and
minimizes effort of maintaining identification
credentials
Impact on shopping
• Making payments between parties identified
and authenticated early in the shopping
experience can enable a true seamless
payments
• Providing payments as an invisible step in the
shopping experience will increase consumer
demand for budget control and insight in
payments carried out
• Seamless payments may affect the sense of
safeness negatively. The actual act of pushing a
button or entering a code creates awareness of
the expense
Impact on payments
“It's wrong to say IRL means offline: Facebook is real life.”
Nathan Jurgenson (2012) The IRL fetish
"Easy access, via a single digital identity, to reliable
information about the person with whom you do business
is crucial for the continued growth of online shopping. It
may also be interesting for retailers and customers to
learn more of each other for 'tailored' services.“
Paul Alfing – Thuiswinkel.org

Signicat:
• To reuse existing strong authentication mechanisms for various
purposes
• Based on trusted banking technologies
Benefits:
• Bilateral agreements between banks and businesses
• Five assurance levels, tailored to set of needs
• One solution to fit various needs
IDchecker:
• Multichannel solution to verify ID documents
• Automated checks based on various large databases
Benefits:
• Effective, cross channel solution
• Extensive database for accurate checks
DigiD:
• Secure online identification with the Dutch government
Benefits:
• One gateway for all online services of the Dutch government
http://www.digid.nl
http://www.signicat.com
http://www.idchecker.nl
Trend 1: Digital identity
Examples

Trend 2: Mobile shopping and payments
Smart mobile devices have quickly changed the way we shop, both in-store and on the go
The share of smartphones of total mobile phone
penetration in The Netherlands has well passed the
50% mark. Nearly 3/4 of Dutch smartphone users
browse the internet every day, and more than 70%
have used them to make informed shopping
decisions.
Mobile devices are increasingly being used in
different contexts:
• In store: to look up product information and to
compare prices at competitors’ webshops
• On the go: mobile commerce enables users to
visualize products and offers while not in front
of a computer screen. Localized offers are also
available thanks to GPS functionalities
Currently mobile shopping is held back from the
lack of widely adopted payment methods that are
designed for the smaller screens (although PayPal
and KNAB and ING’s iDEAL implementation are
exceptions to this rule)
Description
• Mobile devices are increasingly being used in
store to access product information and to find
cheaper offers (also known as “showrooming”)
• According to Thuiswinkel.org, in 2012, 1,2 M
Dutch consumers made at least one purchase
with their phone
• Mobile based services often share the same
user profile as online counterparts. This makes
possible to continue researches and manage
lists both on the go or behind a bigger screen
• Mobile internet glues together the traditionally
separated, worlds of online and offline shopping
Impact on shopping
• Existing payment methods should be adapted
for use with mobile
• Mobile devices require different user
interactions, due to the smaller screens and
different input methods
• Users are asking for familiar online payment
methods to be redesigned for the mobile
screens
• Future expected developments will allow
deeper integration between mobile phones and
POS terminals, with solutions that close the
loop of advertising, payment and loyalty points.
This will increase the need for payment
methods that are able to seamlessly integrate in
the integral shopping value chain
• Mobile devices will provide new opportunities
for cheaper PoS payment terminals for
acceptance of online and offline payment
methods
Impact on payments
“Mobile phones as successors of cards are one
part of the ‘mobile revolution’, but more profound
is the idea of smart devices bringing internet into
all contexts”
Innopay

Trend 2: Mobile shopping and payments
Examples
OKit:
• Single brand covering market needs over multiple contexts
• Multi-channel experience, both online and offline
Benefits:
• Underlying payments via credit cards and direct debits
• Future direct connection to bank account available
• Reusability for other purposes than payments (eg: mandates)
• Integration with merchant terminals with no dedicated hardware
http://www.okit.com
eBay:
• Scan any barcode and see the available listings and offers
• Exploits the link between online and mobile profiles
• Payments carried through digital wallet profiles
Benefits:
• Users can access competitors’ prices in store easily
• No need to manually type,
• Frictionless interaction
http://mobile.ebay.com/

“The increasing number of parties offering digital wallets
asks for a stronger supervision of the e-money institutions
from the Central Banks to protect the stored-funds of the
consumer.”
Source: Rommert Jorritsma - Intersolve
Trend 3: Digital wallets and in-app payments
Payments are initiated from digital wallets, making payment means less relevant
Digital wallets offer services for payment and
loyalty, storing consumer and payment credentials.
Wallets aim to:
• Increase speed and convenience for consumers
• Provide conversion and customer retention for
retailers
We currently see many parties are trying to offer
wallets to consumers and retailers, resulting in a
“war on the wallets”. The current market shows
diversified reach & acceptance and channels
supported. There are Internet- and POS-only
wallets as well as omni-channel wallets. Wallets
can be used in a variety of contexts and from a
variety of consumer devices (PC, Tablet, mobiles).
Many additional and innovative services are
expected as wallets try to claim the primary
customer and merchant interface
Description
• Digital wallets providing loyalty influence
consumer shopping behavior in the orientation
and selection phase.
• Wallets steer consumers in where to buy and
what to buy by providing relevant offers and
financial benefits to consumers
• Digital wallets are increasingly used as quick-
checkout method in web shops as alternative
for traditional PSP-checkout
• Upon checkout digital wallets disclose consumer
and payment credentials
Impact on shopping
• Consumer’s bank account is still the preferred
location to store funds
• Digital wallets offer initiation of different types
of payments (cards, direct debit) resulting in
charging the current account, credit account
and/or stored-value
• By providing a seamless payment initiation and
additional services from a Digital Wallet, the
relevance of the payment means (and it’s
provider) decreases and shifts to the provider of
the Digital Wallet
Impact on payments

Trend 3: Digital wallets and in-app payments
Examples
PayPal:
• Single brand covering market needs over multiple contexts
• Multi-channel experience, both online and offline
• Arguably the largest online 3-party model
Benefits:
• Integration of different channels
• One single user experience, brand trust
• Capability to support future payment innovations
• Targeted offers by merchants
• Enable relevant merchant offers (which will benefit customers and
merchants)
http://www.paypal.com
Minitix:
• Cash-replacement app, allows for various services to be paid
through mobile phones
• Funded with traditional payment methods (iDEAL, CT)
Benefits:
• Integration with third party platforms
• Mobile user experience adapted to users needs
http://www.minitix.nl

Trend 4: Changing POS interaction
Contactless payments provide convenience and new technologies challenge the classic POS terminal
The in-store Point of Sale terminal (POS) is
changing to new interfaces, the classic magstripe
has been changed to the EMV chip and a next step
is the contactless interface, allowing consumers to
tap with either a contactless card or a contactless
mobile phone supporting Near Field
Communication (NFC).
New technologies are challenging the traditional
POS terminals and the way payments are initiated
in-store. The need for smart and secure terminals
might decrease with security moving into the
network and shifting to the consumers mobile
device. Here we also see the use of new forms of
hardware, identification and data communication,
such as mPOS devices, Biometrics, NFC and QR-
codes.
Increased use of loyalty, in combination with
contactless mobile phones will require multi-read
capabilities at the checkout, where not only
payment credentials need to be exchanged but also
coupons, vouchers, tickets, loyalty points and so
on. Providing consumers with a uniform user
experience is the challenge here
Description
• In the current Dutch market, consumers can
walk into a store without considering
acceptance of payment cards
• Consumer and merchant interact in a two-sided
market
• Both sides need to be enabled for the new
types of interaction to complete the shopping
with the preferred means of payment.
• All developments aim for a smooth and hassle
free checkout
• Goal is taking the pain* out of the shopping
experience
Impact on shopping
Contactless payments
• NFC contactless payments provide consumer
with new interaction with a POS
• Using NFC enabled card or mobile phone.
• Contactless payments allow for PIN-less low
value payments
In-store alternative payments
• New technologies, enables use of non-card
alternatives
• This brings e-Commerce payment experiences,
into the physical store
• Examples; Digital Wallets and Card-not-present
(CNP) transactions
Impact on payments
“There is a positive correlation between pain of paying
and the amount spend on the purchase. More
surprisingly, research indicates that the payment method
used influences the level of pain of paying experienced.”
Source: The irrationality of payment behavior
A DNB Occasional study, describing the ‘pain of paying’

Trend 4: Changing POS interaction
Examples
Octopus, Hong Kong:
• One of the world’s leading smart card payment systems
• Enables payment for transport systems as well as at retail outlets
and online transactions
Benefits:
• One single card to enable different payment services
• Reloads automatically by connecting to users’ bank accounts,
solving the loading problems
http://hong-kong-travel.org/octopus/
Snel en simpel betalen, The Netherlands:
• Enables caterers to speed up checkout
• Supports biometrics and contactless initiated payments
Benefits:
• Increasing the speed at checkout
• Providing an alternative for e-Purse (Chipknip)
• Automatic reloading of stored value by connecting to users’ bank
accounts
http://youtu.be/_o4kyCcb6to & http://www.snelensimpelbetalen.nl
Mobile NFC Leiden:
• Collaboration between banks and one mobile operator
• Banks and mobile operators to subsidize the issuing of capable
devices
• Contactless NFC retail payments from mobile phone
Benefits:
• Collaboration between different types of players
• Mobile operators providing hosting of secure banking application
http://www.mobielbetaleninleiden.nl

Trend 5: Changing checkout
New shop floor experiences with evolving cash registers and payment terminals
In combination with the capabilities of smart
devices such as tablets and smartphones, the in-
store checkout and payment flow is changing.
Some stores allow sales assistants to freely roam
the shop floor, where checkout can be delivered
from a smart device such as a tablet and payment
is carried out by mPOS. Others allow consumers to
scan products using their mobile device and pay via
a wallet, thus eliminating the need for a checkout
as a whole.
Where electronic payments used to be made based
on POS terminals, the capabilities of smart devices
allow for the customer to pay with a digital wallet
in the store
Description
• Shop floor experiences are evolving from new
technologies
• Location based services (geo-location, in-store-
wifi, etc) allow for direct recognition and
identification of the consumer
• Using CRM services to determine customer
preferences and sales history over all channels
maximizes cross and upselling
Impact on shopping
• If user is identified and authenticated
sufficiently, the payment can be carried out as
seamless part of checkout
• Using CRM to linking customer’s payment
history to checkout, decreases the merchant’s
need for a guaranteed payment
• New technologies are used to initiate payments;
e.g. NFC, QR-code and biometrics
Impact on payments

Trend 5: Changing checkout
Examples
LevelUP:
• Platform to enable payments and loyalty solutions together
• ‘Closing the loop’ of commerce by issuing consumer app and
providing merchants with new terminals
Benefits:
• One solution for merchants’ advertising & payments needs
• Hiding the payment interaction behind a pleasant user experience
http://www.thelevelup.com
Apple Store checkout:
• Dematerialisation of the counter: mobile POS solutions allow for
payment interaction anywhere in store
• Counters can be reused for customer service purposes
Benefits:
• Better use of store space
• Customers do not have to wait in line to pay anymore
• Mobile POS terminals are less expensive than traditional
http://www.apple.com

Trend 6: Convergence of channels
Customers are not distinguishing e-, m- or physical commerce; the future will be commerce
As the internet maturity of the Dutch population
continues to grow, consumers are by default
considering both the online and offline channel to
make purchases. On top of this, there is a growing
possibility at merchants to go across channels
during in the shopping experience, creating a true
omni-channel customer experience. For the
consumer this means no longer distinguishing
between e-Commerce, m-Commerce or physical
commerce, but just commerce
Description
• Omni-channel integrates e-Commerce platforms
into the physical stores
• Enabling sales personnel to sell products even
when they are not in stock
• Delivery of goods in an e-Commerce manner.
• Increasingly online orders can be picked up at
physical store or pick-up-point
Impact on shopping
• Payment is specific to the context, resulting in
separate payment user experiences for the
virtual world and for the physical world
• Digital wallets try to provide a generic payment
user experience across channels
• Other payment means are adapting to the
variety of channels, e.g iDEAL growing to mobile
Impact on payments
“iDEAL Mobile goes beyond channels and offers
“payments everywhere.”
Source: Max Geerling

Examples
Tesco Virtual Store, South Korea:
• Pilot for window shopping through QR codes in metros
• Users can scan selected products, pay in-app and get groceries
delivered conveniently at home
Benefits:
• Extension of grocery shopping spaces in creative locations
• Online shopping enables better stock management, while
payments are carried forward in-app
http://www.tescoplc.com
Clicks-in-Bricks:
• Extending online commerce experiences in-store
• Tablets are connected to terminals that allow users to ‘self service’
checkouts
Benefits:
• Merchants can still sell goods when not in stock
• Buyers can browse through merchants catalogs in store and
purchase directly
http://www.clicks-in-bricks.com

Examples
MyOrder SideKick: Cookies for the physical world
• Know who’s in the shop
• Reach the customer on the smartphone and the tablet with
attractive offers
• Geo fencing technology, customer gets a reminder when in a
certain radius of the store
• Consumer gets a reward when he checks in the shop
Benefits:
• Learning to know your customer
• Cross sell possibilities
• Push offers over the air
• Instant rewards and offers
http://www.myorder.nl
xXess360°. Scan & Shop Around, The Netherlands:
• Online multi-channel, loyalty and e-Commerce platform. Providing
consumers a real shopping experience through innovative ways of
product discovery (360°shopping)
Benefits:
• Turns real shopping malls into mobile and personalized shopping
environments for consumers
• Transforms smart phones into personal point of transaction
devices allowing consumers to discover, scan & buy products
• Retailers expand their stores with mobile shops allowing personal
interaction with their customers and increasing loyalty .
http://xxess360.com

Trend 7: Consumer in control
Increasing need to be in control of personal (payment) data
• The need to register yourself over and over
again forced consumers to leave information
across websites. Sensitive information is left
scattered on the internet, which makes it
vulnerable for fraudsters. This is also causing
many privacy risks especially when online or
offline personal data is being used for big data
mining
• As a reaction to this scattering and usage of
personal data and related privacy issues an
interesting trend emerged to turn the
ownership of personal data around
• Life Management Platforms or Personal Data
Ecosystems provide users the possibility to
retain full control over their own personal data
and can basically determine what data to share
with which company
Description
• Consumers want to know if merchants respect
their privacy (transparency) both online and
offline
• Increasing attention towards merchant and
third party behavior by consumers and privacy
interest groups
• Need to balance shopping experience
improvement versus privacy
Impact on shopping
• Increasing need for transparency and security
• Rising need for anonymous and less centrally
controlled payments method such as Bitcoin
• Consumers may have to be protected or made
aware of risks when payments are being
pushed to the background or further integrated
into the seamless shopping experience
Impact on payments
“The Age of Privacy is Over.”
Mark Zuckerberg

Trend 7: Consumer in control
Examples
Personal Data Ecosystem Consortium:
• Community: face-to-face events in Europe and North America
• Education: white papers and hold seminars explaining the
personal data economy to enterprises, investors, and
entrepreneurs.
• Advocacy: engagements with government US and European
initiatives like NSTIC to promote user-centric identity and
personal control of personal data.
• Research: research and share findings about personal data
technology, business models, ecosystems, and social impact for
our members and the public
Benefits:
• Credible organization that can provide access to global best
practices
Qiy:
• Platform for users to control their data and privacy levels
• The Qiy Foundation is an independent organisation that
developed an infrastructure of which your personal Qiy domain
is part. This infrastructure is called the Qiy Trust Framework
Benefits:
• Qiy gives you a personal domain to manage your personal data.
That way, you decide who and when others may access your
personal data and for what purpose
http://www.qiy.nl/

Trend 8: P2P payments
Why would only merchants be able to accept payments?
Peer to peer payments, payments with less links in
the chain and less central control, will be an
alternative in retail contexts, when messaging
surrounding the transfer of funds becomes real
time.
Such payment methods could be based on mobile
technology because it gives both sender and
receiver an interactive (and real time
communicating) device.
Description
The distinction between a merchant and just any
economic actor might become less obvious as
shopping contexts become more fluid. The
acceptance of a payment by just any economic
actor would enable also less formal shopping
contexts and, in the same time, embrace ‘System
D’: the informal economy
The informal economy is currently responsible for
about $ 10 trillion and completely dependent on
P2P payment methods. Because of the lack of
alternatives, this part of the economy is 100% cash
based
Impact on shopping
• The development of a P2P payment method
would create a payment method that is
applicable to a wide variety of contexts
• Card schemes add value because they enable
real time trade between actors that do not
know each other, in a world where funds travel
at less than real time speed. Real time
messaging around a P2P payment method
would challenge this functionality
• The business case in most retail payment
contexts is based on fees paid by the receiver.
A P2P payment method is likely to find its
business case more equally distributed
between payer and payee
• This could result in fragmentation of payment
methods and thus additional complexity for
regulators and end users
Impact on payments
“The ultimate payment method is aP2P payment method”
The experts from the Transaction working group discussed
about this statement and found that there may be some
truth in it as any ‘economic actor’ might be wanting to
accept payments.“

Trend 8: P2P payments
Examples
Bitcoin:
• First ever decentralised virtual currency
• Monetary policies do not exist, an algorithm keeps the system in
balance
• Funds are stored decentralised in enduser’s bitcoin wallets
Benefits:
• Immediate, worldwide transfers between users and businesses
• Zero or low-cost payment processing
• Added benefits of anonymity and limited traceability
http://bitcoin.org/
Mobile Payments, UK:
• Coordinated by the Payments Council, allows users to send money
between bank accounts
• Using mobile phone number as alias to the bank account, providing
high ease of use
Benefits:
• Instant payments, via trusted provider (bank)
• Payments carried through Faster Payments for quick settlement
http://www.paymentscouncil.org.uk/current_projects/mobile_payments/
mPesa:
• Mobile money remittance service. Launched by Vodafone in 2007
• Became most successful domestic P2P payment service, forced
merchants to accept it as well
Benefits:
• Money messages sent through mobile devices, via Telco operators
• Instant transfers, with immediate notification that helped uptake
with businesses
http://www.safaricom.co.ke/personal/m-pesa

Trend 9: Increasing regulation
A clear direction towards a digital economy, increased competition and innovation in payments
The European Commission (EC) has been providing
the legislative directives to harmonize payments on
a European level. This has resulted in the initial
Payment Services Directive (PSD) and the
implementation of SEPA payments under the
European Payments Council (EPC). Another
relevant directive is the Electronic Money Directive
(EMD), setting the rules on funds held in non-bank
managed stored value accounts.
Parallel to this the EC is working on the Digital
Agenda for Europe (DAE) to help European citizens
and businesses to get the most out of digital
technologies. In general, the EC is focusing on
increased competition and innovation in payments
as well as safeguarding the trust and reducing
fraud and cybercrime.
Mid July 2013 a new legislative pack has been
released with regards to payments; PSD2. This
drafted legislation sets out new rules on Access-to-
the-Account (XS2A). As a result of this Third-party
Payment Providers (TPPs) can get access to the
consumer’s payment account for informational
services and payment initiation. This will lead to
merchants seeing new providers of payment
services.
Description
• Banks will implement XS2A in the payments
portfolio offered to the account holders
• XS2A is expected to trigger a broad range on
new and innovative payment user experiences
The PSD2 only drafted legislation on XS2A, it is now
up to the market players to continue to come to a
mutual understanding and further detailing of the
framework. Depending on the speed generated,
the ultimate date of implementing the legislation
into national laws of EU member states is 2017.
There is a risk of diversification, leading to confused
consumers and a lack of trust in XS2A payment
solutions. A clear understanding on consumer
dispute handling and related liabilities is crucial for
the trust in and adoption of XS2A services.
Impact on shopping
• XS2A payments will use SEPA Credit Transfers
for settling funds between payers and payees
• Consumers will be able to initiate payments
with greater convenience
• Increasing complexity and possibly the cost
structure of commerce and payments
Impact on payments
“XS2A is a clear example of opening up of the payments
industry. Banks can either see this as a threat or an
opportunity, but when done properly, linking the
innovation capacity of new entrants to the reliable and
trusted payment capabilities of banks can be a
tremendous boost for Commerce.”
Eric van Vuuren - Equens

Trend 9: Increasing regulation
Examples
SEPA:
• 2014 will be the end date for the SEPA migration
• Trough unified standards, Europe is making payment systems
effective and reducing their costs
Benefits:
• Common standards across the region
• Cost effective solutions for maintenance of systems
http://www.europeanpaymentscouncil.eu/
PSD2:
• Opening up access to the payment account for informational and
transactional services
• Linking innovation to standardized payments
Benefits:
• New services to become available using bank accounts
• Payment account’s access will develop in services including cash
management and investment advisory
http://ec.europa.eu/

Eric van Vuuren (Host)
Business Developer
eric.vanvuuren@nl.equens.com
Equens
Shikko Nijland (Chairman)
Managing Partner
shikko@innopay.com
Innopay
Contact information expert group Transaction

How do the dutch pay in 2013

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