2. Agenda
• Background and market size
• Some success stories
• Prepaid in the new contactless and mobile
world
• Some conclusions
Exploring prepaid in the Nordics
2
CAC Conference – Helsinki 16.04.2013
3. Our story
Making a difference in the Nordics
3
CAC Conference – Helsinki 16.04.2013
Close to our customers
• 50 cities with capacity to
deliver
• 11 regional offices with
specialist competencies
Cultural affinity
• ”Local” language
• Business made easy
Diversity and business
agility
• Empowered local
management
• Enthusiastic and
motivated employees
Delivery models for any
segment
• Meeting the needs and
expectations of Large and
SME customers
Critical importance for
society as a whole
• Banking & finance
• Public sector
Shareholders
• Posten 40%
• Telenor 30,2%
• Listed at Oslo Stock
Exchange since 1995
100+ employees
4. Pay before Pay now Pay later
CAC Conference – Helsinki 16.04.2013
4
7. 7
CAC Conference – Helsinki 16.04.2013
Denmark
Finland
150
135
Sweden 120
Norway 113
365
330
468
334 40.215
53.074
54.651
44.457
Avg. card usage per year Avg. card spending
NOKNo.of transactions per card NOK
Avg. card spending per year
Kilde: Visa Datamonitor, Country statistics for cards 2011
8. 8
CAC Conference – Helsinki 16.04.2013
Estimate prepaid market size 2015 – NOK 170 billion
170.2
37.7
30.8
34.7
67.0
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
Sverige Danmark Finland Norge
Visa Europe Prepaid Market Sizing Study 2011, prognosis 2015
9. 9
CAC Conference – Helsinki 16.04.2013
6,9 7,7 6,5
21,6
4,6 6,5
7,7
4,0
13,1
6,28,5
8,5
20,0
Finland
21,6
Denmark
17,9
Sweden Norway
42,4
Prepaid private market in 2015 – NOK 100 billion
Travel/Gift/etc
Gaming
General purpose
I mrd NOK
Visa Europe Prepaid Market Sizing Study 2011, prognosis 2015
10. 10
CAC Conference – Helsinki 16.04.2013
3,9 3,1 3,4
3,5
4,5
3,1 2,5
2,3
6,9
4,6 4,6
14,6
23,1
2,7
NorgeSverige
17,0
1,7
Finland
12,2
1,7
Danmark
12,3
1,5
Prepaid corporate market in 2015 – NOK 65 billion
Benefits
Incentives
Wages
Other
I mrd NOK
Visa Europe Prepaid Market Sizing Study 2011, prognosis 2015
26. • There is a Market for niche players
• There is a need amongst corporate
clients for prepaid
• Prepaid can stimulate innovation
• EVRY can be your partner exploring
prepaid opportunities
26
CAC Conference – Helsinki 16.04.2013
Conclusions
Exploring prepaid in the Nordics
28. Embrace
infinite
opportunities.
28
CAC Conference – Helsinki 16.04.2013
We live in a world that's changing rapidly, in which the pace of change
is accelerating all the time. But with change comes an infinite range of
new possibilities. We remain open to every opportunity, constantly
seeking out new challenges and new solutions that help to build our
customers' businesses and benefit the wider community.
Editor's Notes
One slide about EVRY; Localpresence, a lot ofcompetenceFull service card house – 5 millcards in issue – 13 millcardsproduced – Fraudprevention – Switching services – 24/7 customer service
The Nordics,howdoesthemarketplace for prepaidlooks like?
First somestatisticsregardingcardusageA comparionsbetweenthecountries – A maturecardmarketFinland: 1,9 cards per inhibitantNorway: 2,6 cards per inhibitantSweden: 1,7 cards per inhibitantDenmark: 1,4 cards per inhibitant
Visa did a largestudyonpotentialofprepaid all over europe in 2011, hereare som figures from theirnordicanalysisHow much is therealready? And also cash, cupons, and other none electronicalpaymentsarethere?A lot ofpotentialvalue to make prepaidable
The private marketarethebiggest, speciallyinside travel, gifting and remittance
At corporates,wages to seasonalworkersarebig and theincentivemarketarealreadythereThe missing 5 billion marketare at thegoverments, Riksgjäldenare in a bidprocessnow. Immigrationarethebiggest area.
Are thereanysucessstories in the Nordics?
BankAxeptprepaidcard, launched in 2009 and use in themuncipalities and immigationscenter. It is a Cash replacementproducts; 150-200 millions per yeararereplacedwithcardtransactionsICA banken in Sweden has a similar Maestro solution for theswedishmuncipalities
Open loop gift card; In Norway therewere sold open loop giftcards for over 200 NOK millions in 2012, up from about 10 millthe first year in 2008. There has been a 40% growtheachyear. Same solutionarerunning in Sweden and Denmarkinside Reitan Convenience.The key to thesuccess is Distribution – Distribution – Distribution and ofcoursemarketing
Paymentof dividends in Sweden for Länsforsäkringar, over 100 000 cardswith 60 millions SEKSpend anywhere, marketingcampaign.Alsothenorwegianinsurancecompany Gjensidige didpaytheir dividend as reloadable Visa cards
Closed loop Giftcards in shopping malls and at retailers 2 millioncardsannualy in Norway, 80% ofthose in november and decemberBut so far it is mostly a Basket product Look to othermarketswith gift rack malls like in UK, France and the US. Open and closed loop giftcardsarecounted as a uniqueinstorecategory and wrapped as a gift. Paper congratulationcardsare dominant in the Nordics and not electronicgiftcards.
Whataboutprepaid in thenewworldofcontactless and mobile wallets, emergingtechnologies
Prepaid for Arenas – Combinedcontactless and sesonalticketsaretypicalprepaidsolutions – Auto topup
Transport ticketing,prepaidBut in London ordinarypayWave & Paypasscardscan be used nowon buses
Butordinarycontactless in coming, bothcredit, debet and prepaid
Visa and London, prepaid mobile contactless to athletes and VIPS1 of 4 transaction at venuesmadecontactless, mostlyprepaid
Someresults from Visa….
Wywallet in Swedenare a prepaidsolutions
Paypalcheckout/walletsolutions Isn’tthis a closed loop solutionwithcardsfundingthepaypalaccount? An innovative solutionwhereinternetpaymentsolutionsareintegrated in thephysicalworldon a betterwaythanthe banks oppositewayoftrying to takethephsyicalworldonlunbe (3DSecure). V.Me and Paypasswalletare first the last monththe banks answer to thischallenge
In thisperiodof time with all newcustomerbehaviour, newtechnology, newplayers, banks have to comeoutoftheircomfortzoneInsidetheprepaid area, there is a lot ofinnovationgoing on. Mye be it is easier for banks and merchants to innovateonthesekindofsolutionsthanthe more tradional debet and creditcardssolutions?
EVRY: A completevaluepropospal for open and closed loop prepaidsolutions
Rememberthatthecustomersarethenewcreativeones
The world is changingrapidly, butremeberthatthisgiveusalsonewpossibilities!