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Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
Visa Europe : eCommerce strategy
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Visa Europe : eCommerce strategy

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Please find here the presentation I've realised for VISA EUROPE for my 2d interview of the hiring process : …

Please find here the presentation I've realised for VISA EUROPE for my 2d interview of the hiring process :

Initial subject : What position would you recommend to allow Visa to maintain its leadership in payment e.commerce?

Context : 7 days to realize it with my current job

Visa's conclusion of my presentation :
- Presentation was not enough VISA centric (sorry that eCommerce is not focus on Visa)
- I was supposed to explain more the V.me solution which is not yet released/official in Europe : V.me = Paypal copycat (this was not the subject !)

Very good exercise, but very disappointed with Visa methodology and behavior.

Anyway, the presentation is not perfect, but I should have charge VISA Europe.
Because, I 'm not a Visa collaborator, I can share this presentation I've realised.

Don't hesitate to contact me if you have any questions.

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  • 1. EXPAND & MAINTAIN VISA’S LEADERSHIP IN eCOMMERCE
  • 2. AGENDA• eCOMMERCE & PAYMENT INTRODUCTION• VISA: STATE OF THE ART• eCOMMERCE: SCOPE & STAKES• ePAYMENT: GROWTH DRIVER & ECOSYSTEM• VISA CENTRIC: RISK & MITIGATION• RECOMMENDATION & CONCLUSION
  • 3. INTRODUCTION: eCOMMERCE SCOPE • e-Commerce’s definition by the US department of Commerce: " e-commerce is the online transaction of business, featuring linked computer systems of the vendor, host, and buyer. Electronic transactions involve the transfer of ownership or rights to use a good or service." • e-Commerce market & evolution: - Global e-commerce sales are growing at more than 19% a year - Worldwide retail web sales will reach nearly one trillion by 2013 Source : Goldman Sachs, Sales in billion of dollars
  • 4. INTRODUCTION: ePAYMENT SCOPE• e-Payments are online payments dedicated for eCommerce activities• e-Payment is divided into two main categories: - Bank payment - Alternative payment : 10% in transaction volume of Bank market Share (Capgemini analysis 2011)• But e-Payment has to be approached ‘locally’ (by country) to understand specificities: FINLAND Vs FRANCE ONLINE PAYMENT REFERENCE Source : CyberSource Global Payment options 2011
  • 5. AGENDA• eCOMMERCE & PAYMENT INTRODUCTION• VISA: STATE OF THE ART• eCOMMERCE: SCOPE & STAKES• ePAYMENT: GROWTH DRIVER & ECOSYSTEM• VISA CENTRIC: RISK & MITIGATION• RECOMMENDATION & CONCLUSION
  • 6. VISA EUROPE: STATE OF THE ART LEADER ‘THE’ TRUSTED PAYMENT INNOVATION SYSTEM• Everyday €1 of every €5 is • 26 millions of contactless cards • 11.4 Bn processing transactions: expended on a Visa Card issued issued, cleared & settled • 100 millions invested in R&D in • 99,999% service quality and• 438 millions of debit & credit 2011 accelerate the 100% availability cards in circulation in 2011 for contribution of electronic 1.14 trillions expended in PoS payment in Europe •Target: increase brand and• Target: increase eCommerce, Card • Target: develop and simplify : consumer awareness as the safest & PoS market share mobile, online & contacless payment system payment
  • 7. VISA INNOVATION: ONLINE & MOBILE• Online: V.me - Make online payment with VISA expertise with or without a Visa card - Multi-platform solution: available on computer, mobile and tablet - Competing now with Paypal (soon in France)• Contactless: - Visa payWave is the easiest way to pay for low-value - Nice city experimentation - Currently building an ecosystem with local actors of transport, ticketing, etc...• Mobile & partnership: - Google Wallet involvement - Visa Wallet integrated in the V.me solution - Expansion of V.me to mobile an in-store payment using near field communication
  • 8. VISA’S POSITION IN eCOMMERCEConsumer workflow: PSP Client Support Search eMerchant Flow Bank Delivery Alternative eWallet presence: direct or indirect solutions: Partnership SMS, alert Partnership Olympic games
  • 9. AGENDA• eCOMMERCE & PAYMENT INTRODUCTION• VISA: STATE OF THE ART• eCOMMERCE: SCOPE & STAKES• ePAYMENT: GROWTH DRIVER & ECOSYSTEM• VISA CENTRIC: RISK & MITIGATION• RECOMMENDATION & CONCLUSION
  • 10. eCOMMERCE: FOCUS ON EUROPE MARKET• 40% of the European population buy on- line, but already 70% in some countries (France, Germany,...)• eCommerce in 2012: 16% growth expected in Europe, 22% in France• eCommerce in Europe is worth over €307 billions Source : Nielsen Online, December 2011
  • 11. eCOMMERCE: EUROPEAN GROWTH PERSPECTIVES• eCommerce in Europe currently limited to 3.4% of retail sales• Only 57% of Europe’s internet users buy on- line vs 66% in the US and 94% in South Korea• Only 14% of European companies sell their goods or services online• eCommerce is still a local industry: only 6% of European businesses sell cross-borders eCommerce in Europe has still a great potential of growth Europe is currently the largest eCommerce market in the world Source : European Commission January 2012
  • 12. eCOMMERCE: SWOT ANALYSIS • Companies expand their customer base to a global level • The target consumer has huge possibilities • Direct consumer communication • Customer & eCommerce need to trust each other • Web retailers live and die by organic search engine placement • The closer consumer is of payment, the acquisition cost increases • Take orders around the clock on every day • Retail sales have seen double digit growth each of the past 8 years • Sell products to a global market • Hard competition due to a relative easy entry into the market • Some consumers are leery of doing business online out of concerns of fraud • Some consumers prefer not to give any personal information
  • 13. AGENDA• eCOMMERCE & PAYMENT INTRODUCTION• VISA: STATE OF THE ART• eCOMMERCE: SCOPE & STAKES• ePAYMENT: GROWTH DRIVER & ECOSYSTEM• VISA CENTRIC: RISK & MITIGATION• RECOMMENDATION & CONCLUSION
  • 14. ePAYMENT: ALTERNATIVE PAYMENT & LOYALTY PLAN• The entry of prepaid (non-bank) specialists into the payment ecosystem will improve and satisfy the overall quality of service for the customer experience LIMONETIK SOLUTION FOR EMERCHANTS• Main alternative means of payment are: - Pre paid & loyalty cards - eWallet - P2P transfer ALTERNATIVE PAYMENT PERSPECTIVES• Alternative payment market will reach 70 Billions€ in Europe in 2015• Mastercard Europe & Accor have created a specific company to target this market: PrePay Solutions Source: Limonetik 2011
  • 15. ePAYMENT: SOCIAL PAYMENT• 901 millions members• Facebook credit have been launched in 2009 and recently Facebook gave up this credit system• Simplify the consumer experience is the leitmotiv of this change, Facebook will accept local currency• A new solution of subscription will be soon be settled• Is it a first step to anticipate lower value payment & NFC/eWallet ?
  • 16. ePAYMENT: NFC MARKET GLOBAL NFC HANDSET SALES: % OF TOTAL Source: Strategy Analytics 12 2011 PROS CONS• Benefit from an ecosystem and its branding (e.g., Cityzi logo) • Very limited audience ‒ phone, sim card, and subscription are all specific - High level of security on payment • Cannot be done rapidly• Similar to traditional smart cards ‒ dependence upon consortiums/partnerships • Risk of confusing users (tap to pay vs tap to get info) • Technology cost quite elevated
  • 17. ePAYMENT: NFC PERSPECTIVES 1- USER SUBSCRIBES TO CITYZI 2- USER SUBSCRIBES TO INDIVIDUAL SERVICES THROUGH HIS OPERATOR• Operators (Orange / SFR / Bouygues) • ST2N: buy tickets and validate Payments above 10 euros need a subscription too• Provides specific NFC phones • Banks: payment applications similar to traditional• A preinstalled Cityzi app allow access to debit card services CIC m-carte Visa BNPP « KIX »• Provides specific SIM card • Couponing / Loyalty programs• Charges small expenses on telephone bill Collective scheme (e.g. Carte Magique) Chains (e.g. La Croissanterie)
  • 18. ePAYMENT ECOSYSTEMC MO EN RS CU HM AE NR TS S Source : Payfirma Payment ecosystem 2011
  • 19. AGENDA• eCOMMERCE & PAYMENT INTRODUCTION• VISA: STATE OF THE ART• eCOMMERCE: SCOPE & STAKES• ePAYMENT: GROWTH DRIVER & ECOSYSTEM• VISA CENTRIC: RISK & MITIGATION• RECOMMENDATION & CONCLUSION
  • 20. VISA: GEO/DEMOGRAPHIC RISK• A major risk is to underestimate the growth of eCommerce in emergent markets• This increase is strongly correlated to the penetration of PC/mobile• Example : UnionPay (China) is now the largest payment card company in the world, issuing three of every ten cards worldwide
  • 21. VISA: OPERATORS RISK Initiatives of the operators are varied but bounded geographically• Internet + initiative in France allow all fixed and mobile operators to provide inBill payment for low value amount (under 10€)• Ireland: Vodafone launched in-bill app payment which encourages downloads. Mobile operator lets Nokia,BlackBerry and Android users pay for apps via their invoice• Push the SIM centric approach for NFC to keep customer value by proposing NFC services of third Service Provider
  • 22. VISA: SECURITY VS USER FRIENDLINESS RISK The payment procedure has to remain a compromise between the accepted risk and the user-friendliness • The process of collecting and processing online payments is confusing. There are many parties involved and the fees can be difficult to decipher • 3D Secure initiative : create an additional client authentication providing a payment guaranty for authenticated transactions and blocking chargeBack • Verified by Visa and MasterCard SecureCode cause higher abandon rates
  • 23. VISA: THE eWALLET-GATE 75% of ePayment actors are launching their own eWalletConsumer workflow: PSP Client Support Search eMerchant Flow Bank Delivery Alternative eWalleteWallet example from payment workflow: Apple already Apple has recently eWallet will Because banks Google Wallet is an Clear positioning announced the be released in know their client, knows 200 app that makes millions iTunes on ePayment with futur the creation 2012 in eWallet or your phone your the launch of the of an eWallet in Europe complementar y users with Card wallet with Citi, identification kindle iOS6 services are MasterCard, Sprint launched & Visa
  • 24. AGENDA• eCOMMERCE & PAYMENT INTRODUCTION• VISA: STATE OF THE ART• eCOMMERCE: SCOPE & STAKES• ePAYMENT: GROWTH DRIVER & ECOSYSTEM• VISA CENTRIC: RISK & MITIGATION• RECOMMENDATION & CONCLUSION
  • 25. BRING STAY DEVELOP VALUE TO CONSUMER DIVERSIFY mCOMMERCE eMERCHANT CENTRIC ECOSYSTEMeCOMMERCE RECOMMENDATIONS
  • 26. MID TERM ECOSYSTEM To maintain their relationship with customers,global operators are seeking to become trusted enablersContent & AdvertisingServices Trusted Enablers Access & Traffic
  • 27. LONG TERM What will be ePayment/mPayment in 5 years ? What are future authentification means ? How to handle new Actor / Risk ?What if the younger generation no longer need bank account ?
  • 28. RECOMMENDATIONS BRING STAY DEVELOP VALUE TO CONSUMER DIVERSIFY mCOMMERCE ECOSYSTEM eMERCHANT CENTRIC • Create a one click • Strength relationships• Push your easy registration • Create partnership or with manufacturers solution to integrate : joint venture with a V.me to the market major prepaid European • Propose more services • Build your ecosystem of with support & actor (like playSpan services for consumers acquisition in the US) communication • Regularly invest into A & • Reward consumers for • Climb the value chain• Propose more B Series fundraise their adoption and up to delivery with payment solution guarantees/services for loyalty to use the new eMerchants partnership (Limonetik) V.me solution • Launch as soon as• Offer more attractive possible an operation rates than PayPal with successful mCommerce eMerchant: Vente-Privee.com , Groupon
  • 29. THANK YOU
  • 30. ANNEXES
  • 31. MARKET OVERVIEW Classification by the nature of transactions: a wide range of models• Business to business (B2B)• Business to consumer (B2C)• Consumer to business(C2B)• M-commerce• l-commerce or location base commerce• Business to employees (B2E)• Collaborative commerce(c-commerce)• Consumer to consumer (C2C)
  • 32. ePAYMENT MAPPING TECHNOLOGYPlatformCentral GLOBALISATIONPeer-to-Peer Decentral Bank as trusted party Non-Bank as trusted party
  • 33. FRENCH USER’S: DIGITAL PROFILE Where they used the smartphone Uses Source : Oct 2011 Google Source : Oct 2011 Google
  • 34. eBay APPROACH VIA ITS PLATFORM PLAY Source: eBay CEO John Donahoe, Innovate Developer Conference, Oct. 12, 2011eBay generates now about 50% of its business in Europe its fastest growing region

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