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Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
Prepaid Summit 2010   Di Marco (Final)
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Prepaid Summit 2010 Di Marco (Final)

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Digital contents, gift cards and a worldwide cash in network

Digital contents, gift cards and a worldwide cash in network

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  • 1. A Euronet Worldwide Company New trends in the Gift Cards markets & global cash collection in Europe Giuseppe Di Marco epay Italy Managing Director Prepaid Cards Summit Milan, 13th of October 2010
  • 2. A Euronet Worldwide Company Contents of Presentation Today there are two main drivers that are pushing the prepaid digital market: (becoming Digital Goods) (mobile phones, music players, game consoles, E-books readers, TVs, tablets, etc.) This market involves many players: Large Retailers (willing to sell their goods using new ways) Contents Providers (needing new ways to distribute and sell their products) Devices suppliers (aiming to fill their new marvels) TelCo Companies (bored to provide roads making other to get the money) Financial Institutions (interested in new ways of managing payments) Trusted Third Parties (needed to integrate all these players) We will go through this new way of selling goods 2
  • 3. A Euronet Worldwide Company Evolution of virtual goods The evolution of virtual goods, maybe, is not giving us the right perspective: Once there were just Mobile Top Ups and other telephone related products. This has been and is even now a huge market. But the margins are decreasing Other products joined the Mobile Top Ups: Pay TV Top Ups Financial Products (Open Loop Cards, eVouchers, etc.) Music Top Ups (i.e.iTunes Cards) Moreover many Retailers and Contents Providers created their own Cards All of them have been seen as Cards, Gift Cards, in general PRODUCTS But, given the wide range of virtual goods might be, we need to change the focus we look at this market 3
  • 4. A Euronet Worldwide Company Today Cards and Gift Cards have become a CATEGORY - these are no more just a product!
  • 5. A Euronet Worldwide Company5 Gift Card How much Did you know that: * Today the Gift/Prepaid Category The #2 category in sales at grocery stores The #1 fastest growing category The #1 in margin per square meter The #1 in revenue per square meter The average overspend amount is 72% * Source: FirstData
  • 6. A Euronet Worldwide Company6 Gift Card - Why Why a Customer decide to choose a card as a gift? * Receiver can buy what they want71% Convenient to purchase50% Flexibility in redeeming a gift card35% He doesn't know what else to buy the gift receiver33% * Source: FirstData
  • 7. A Euronet Worldwide Company How to approach to the European gift card world Distribution Content New Products We need to make the flyweels start.... on the Consumer side and ... ... on the Retailer side 7
  • 8. A Euronet Worldwide Company Distribution Content New Products RETURN ON INVESTMENT 8 How to approach to the European gift card world DESIRE FOR A VARIETY CONVENIENCE & TARGETING PROMOTION & INNOVATION SERVICES TURNKEY SOLUTIONS
  • 9. A Euronet Worldwide Company Marketing and destination merchandising Source: Mercator, 12/09 consumer brands Destination merchandising both in store and in third party malls Increased sales, profits and brand exposure 9
  • 10. A Euronet Worldwide Company10 How to approach the Consumers DESIRE FOR VARIETY Today the European prepaid market is dominated by Mobile Top Ups We need to enrich this offer, even if already important, with a wide range of products, that is extending in different sectors, both Global and Local contents: Digital Contents: Gaming, Music, eBooks, Software, Social Networks Credits, etc. Physical Contents: Fashion, Electronics, Toys, Dining Out, Pet, Travel, Recreation, Luxury, Home, etc. Transportation and Ticketing (Transit) Financial Products: Open Loop Cards, eVouchers, etc.
  • 11. A Euronet Worldwide Company11 How to approach the Consumers CONVENIENCE & TARGETING Different Targets for the different Retailers: Once in 2 months Large Retailers: Women 25/65 (The Decision Maker) Independent Retailers: Cross 15/65 (The Self-Shopper) TARGET Electronic Large Retailer: Adults 25/40 (The Specialist) People buy here specific products: accessories for pc, People buy here products and services Top ups, pay TV recharge, People go here for grocery shopping They can find also other services: Once a week Once a day Through the Gift Card Mall, choice has extended, and cards, issued by a company, may be sold through a wider network (Hypermarkets, Supermarkets, Convenience Stores, Bars, Newsagents, etc.)
  • 12. A Euronet Worldwide Company12 How to approach the Consumers INNOVATION We have to find the best ways and release soon new solutions to integrate the gift cards with the contactless technology to give new services to the customers We must deliver new applications to bring the Gift Cards, Couponing and other related contents on smart phones and on the other types of new devices very shortly
  • 13. A Euronet Worldwide Company13 How to approach the Retailers TURN-KEY SOLUTIONS Technology, Merchandising and logistics: sales systems (cash registers and POS Terminals) integration, card printing, fixture installation, display maintenance, inventory management Marketing and promotion: full loyalty program to allow SMS, email, and or mail campaign management B2B Sales: availability of sales portal to allow marketing to B2B customers including ordering, shipping and fulfillment RETURN ON INVESTMENT When redeeming their gift card, over a quarter of receivers purchase an item they had not planned to spend money on and an additional one in ten buy a more expensive version of an item they were already planning to buy Gift cards are a great way for businesses to spread the brand, while simultaneously improving cash flow (the gift card sales are for a retailer a no- interest cash advances)
  • 14. A Euronet Worldwide Company14 How to approach the Retailers VALUE ADDED SERVICES The Merchants platform must allow consumers to self-register, so Merchants can truly acquire their customers Self registration allows card issuers to capture names, addresses, phone numbers, email addresses, and demographic information The Merchants platform must allow card issuers tools to send SMS messages, create cash back or points-based promotions, couponing, create email campaigns, or send direct mail offers to consumers
  • 15. A Euronet Worldwide Company15 Case History: Euronics Euronics is one of the major Electronic Large Retailer in Europe and in Italy there are 270 Points of Sale, active to epay system Closed-loop gift card, issued in 3 denominations: 50 euro 100 euro 200 euro Can be used also for the Internet purchases Target: not only B2C, but also B2B
  • 16. A Euronet Worldwide Company16 THANK YOU For further information: Giuseppe Di Marco gdimarco@epayworldwide.com Mobile: +39 335 7716461

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