This document discusses trends and challenges in the future of online checkouts and payments. It notes that while alternative payment methods are rising, integrating them across Europe remains difficult. It also suggests that payments need to focus on ease of use and reducing steps at checkout, especially on mobile, in order to drive conversion. Reducing fees and costs, both direct and indirect, will also be important challenges to address going forward.

1. 11
TITELFuture of check-out
Merchants & Payments 2015
London, September 15th

2. 22

3. 33
Online
Travel
Agency
2002
~110
Hotel Booker ?

4. 44
REACH

5. 55
Trend: Rise alternative payment methods
… however: hassle from merchant perspective

6. 66
Thesis: Reach = Ease of use for merchant
… however: European payment methods don’t
have enough footprint <> rise of global giants

7. 77
Challenge: I welcome them as merchant 
… because: prepared to pay bit more for ease of
use & big reach
=

8. 88
EASE

9. 99
Trend: Further European payments integration
… however: focus on ‘traditional’ payments, online
still too country specific (= hassle)
XS2A

10. 1010
Thesis: Online payments market only mature at a
national level
… because: too fragmented, making it difficult for
cross-border trade & merchants in particular

11. 1111
Challenge: Seamless integration and at a min.
interoperability (ideally full harmonization)
… accelerating the API-economy for banks, with
further regulation as potential pressure instrument

12. 1212
CONVERSION

13. 1313
Trend: Alternative identification & authentification
… safe, but simple and ideally integrated
identification & authentification

14. 1414
Trend: … and no trend would be complete
w/o Mobile of course
… once at the booking page, bring clients as fast
as possible to payment w/o need to think
=> 1 (2) - click payment, also on mobile!

15. 1515
Thesis: Mobile not designed for conversion … but
for risk
… because: too much thinking from the ‘old’
desktop world

16. 1616
Thesis: Payment methods (especially alternative
payments) suffer from functionality bloat / overload
… however: getting too much, need to go directly
to payment, no distraction / x-sell at check-out

17. 1717
Challenge: Innovation needs to serve simplification
instead of diversification !
… less is more!
Stick to your core trade ?!

18. 1818
Challenge: Mobile innovation also needs to facilitate
x-border ease of use
… ideally with 1 European protocol for mobile
payments

19. 1919
COST

20. 2020
Trend: Fees are under pressure
… rightfully so, off-line is already pretty efficient,
but still gap with online

21. 2121
Thesis: Not only direct, but also indirect costs need
to go down
… because: payment disruptions cost money and
settlement days still date from the batch days

22. 2222
Challenge: Reduce payment disruptions
… invest again in online payments (tackle legacy)
+ manage perception

23. 2323
Challenge: eliminate T+2/3 settlement days 
… because transactions are more & more real-time,
with also here pressure of further regulation