The Future of Payments:
bringing consumers
on board

Irene Ierardi
Senior Research Executive
TNS Finance

Webinar, 16 Genn...
The roadmap

2
1

Payments today:
an ecosystem in
evolution

4

Taking a closer
look at
consumers’ trends

3

How TNS
resp...
1
Payments today:
an ecosystem in evolution

©TNS 2013
Payment technology hits the newspapers and
magazines headlines

©TNS 2013

4
A range of providers have harnessed technology
to create a range of payment solutions

Devices
Mobiles

Cards

Tablet

Sma...
And created a veritable soup of payment brands

PAY

©TNS 2013

6
2
Taking a closer look at
consumers’ trends

©TNS 2013
Purchasing and payment behaviours are changing due
to emerging trends
1. Technology

Digital technologies,
mobile,
emergin...
Technology is pervasive
Digital facts and figures
European Internet users

(% population*)

European Facebook subscribers
...
Technology is pervasive
Are you on Facebook? Twitter? Pinterest?
CHINA
Internet
Penetration

FRANCE

40%

80%

% of Intern...
Trust and transparency are key words: social media is
hugely influential, more so than a brand’s own voice
“What other peo...
New devices are changing behaviours: mobile and the
financial world
Mobile banking
Checking bank accounts and using online...
Consumers’ needs: at TNS, we speak about 3
currencies
When you employ and activate technology, ask yourself: does it help ...
Social-economic change: the “Grey Age” getting real
0
1

By 2050 2 billion “seniors”
globally–over 60 years
0
2

Europe to...
The “Millenials” have grown up as "digital natives“
this will probably lead to greater demand for payments
to be instantan...
Migration has started to pick up again
Migration has started to pick up again, driven largely by people moving
within the ...
The new “Payment Services Consumer”: an active
Stakeholder who contributes to choose his own
payment way

A new Stakeholde...
TNS can take you
through the details
to unlock growth

3
How consumer responds:
a TNS UK case study

©TNS 2013
The TNS UK case study

Identify opportunities for payment
methods to better serve consumers

Requirements
on payment
occas...
Less is more...
But the consumer
wants more from less

20
Consumers have three “core” needs which account for
41% of their spend; three further needs in financial
planning and pers...
The six ideal needs are complementary and fit with
different parts of the market landscape
Currently no payment methods me...
There are many
opportunities to meet
needs better
Less is more...
but the consumer wants
more from less

©TNS 2013

No pay...
4
Activating insight
to bring consumers
on board

©TNS 2013
There are two key drivers of consumer attitudes and
behaviours; in relation to payments methods, there are
5 segments of s...
There are many
opportunities to
meet needs better

Less is more...
but the consumer wants
more from less

©TNS 2013

No pa...
5
Looking to the future:
pay your way

©TNS 2013
Optimising the ideation process
Personalised & Intelligent: Insight into action
Example of how learning can be used to sta...
©TNS 2013

29
There are many
opportunities to
meet needs better

Less is more...
but the
consumer
wants more
from less

©TNS 2013

No pa...
Thank you
Irene Ierardi
Senior Research Executive
TNS Finance
tel. +39.02.270721
@: irene.ierardi@tnsglobal.com
©TNS 2013
...
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Extract _ The future of payments - Webinar TNS

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Il mercato dei pagamenti offre oggi svariate possibilità. Se un tempo erano disponibili solo contante ed assegni, oggi una moltitudine di nuove opzioni è a disposizione dei Clienti per supportarli nell’acquisto di beni e servizi. Tecnologia, aspettative progressivamente crescenti dello shopper e cambiamenti socio-demografici stanno impattando notevolmente l’esperienza d’acquisto, con effetto anche sul servizio atteso in termini di supporto al pagamento. Ed allora i benefici che la tecnologia offre devono rispondere ad esigenze chiare, offrendo benefit rilevanti all’occasione d’uso.

Si illustra un estratto dei risultati di un’interessante indagine effettuata in Gran Bretagna, sull’evoluzione dell’ecosistema dei pagamenti.

Published in: Economy & Finance, Business
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Extract _ The future of payments - Webinar TNS

  1. 1. The Future of Payments: bringing consumers on board Irene Ierardi Senior Research Executive TNS Finance Webinar, 16 Gennaio 2014, Milano ©TNS 2013 1
  2. 2. The roadmap 2 1 Payments today: an ecosystem in evolution 4 Taking a closer look at consumers’ trends 3 How TNS responds: a UK case study Activating insight to bring consumers on board 5 Looking to the future: pay your way TNS can take you through the detail to unlock growth ©TNS 2013 2
  3. 3. 1 Payments today: an ecosystem in evolution ©TNS 2013
  4. 4. Payment technology hits the newspapers and magazines headlines ©TNS 2013 4
  5. 5. A range of providers have harnessed technology to create a range of payment solutions Devices Mobiles Cards Tablet Smartphones Laptops Apps Retailers Telcos Banks Technology PAY PAY Software Providers ©TNS 2013 5
  6. 6. And created a veritable soup of payment brands PAY ©TNS 2013 6
  7. 7. 2 Taking a closer look at consumers’ trends ©TNS 2013
  8. 8. Purchasing and payment behaviours are changing due to emerging trends 1. Technology Digital technologies, mobile, emerging retail models marrying virtual and physical environments Reassurance, value for money, convenience, consumer expectations simplicity, time saving 2. The shift in PAY 3. Social economic change PA ©TNS 2013 Social-economic change: Senior, Millennial, Migrants 8
  9. 9. Technology is pervasive Digital facts and figures European Internet users (% population*) European Facebook subscribers (% population**) 63% 31% 518.512.109 250.934.000 European smartphone ownership 45% 52% (% population***) % Internet users among mobile owners European E-Shoppers 31% (% population****) €311,6bn (turnover****) Source: *Internetworldstats, June 30, 2012; **Internetworldstats, December 31, 2012; *** TNS Digital Life 2011; **** Ecommerce Europe , 2012 ©TNS 2013 9
  10. 10. Technology is pervasive Are you on Facebook? Twitter? Pinterest? CHINA Internet Penetration FRANCE 40% 80% % of Internet users that: Go online daily Are brand fans on SN Write about brands online Research brands online % of Internet users that: 62% 85% 33% 23% 74% 91% 29% The digital empowered consumer impacting on Corporate Reputation 88% Source: Digital Life 2011 10 ©TNS 2013
  11. 11. Trust and transparency are key words: social media is hugely influential, more so than a brand’s own voice “What other people say about brands can be trusted more than what brands say themselves” Disagree France 10 Poland Brazil South Africa Agree 63 11 23 68 40 16 62 Source: TNS Digital Life 2011; I11; Comment reading attitudes Base: Online comment readers (all categories); 1167, 896, 1423, 184 ©TNS 2013 11
  12. 12. New devices are changing behaviours: mobile and the financial world Mobile banking Checking bank accounts and using online payment mechanisms through specific apps or dedicated websites on your mobile phone 22% of mobile users globally have performed banking activities on their phones Source: TNS Mobile Life 2013 ©TNS 2013 12
  13. 13. Consumers’ needs: at TNS, we speak about 3 currencies When you employ and activate technology, ask yourself: does it help my customers save money, time or angst? Money The financial crisis gave permission to people to look for value Shoppers are better informed, partly as a result of digital and social media, about deals and about whether they represent good value Time Need of reducing the emotional and mental clutter in life so to make space for the important things Angst Consumers are looking to simplify: brand touch points (shop, online, mobile, tablet) have to guarantee a seamless experience ©TNS 2013 13
  14. 14. Social-economic change: the “Grey Age” getting real 0 1 By 2050 2 billion “seniors” globally–over 60 years 0 2 Europe today: 65 or more years old: 17.5 % 0 3 Europe 2025: 65 or over more than 20% 0 4 Rapid increase in no. of over-80s in the EU-27’s population: is projected to almost triple between 2011 and 2060 ©TNS 2013 EU-27 - Median age: 1990 - 2010 - Eurostat 14
  15. 15. The “Millenials” have grown up as "digital natives“ this will probably lead to greater demand for payments to be instantaneous or 24/7 LIMITLESS CONNECTIVITY: The ability to operate in a multimodal, trans-media world is a baseline for Millennials REAL-TIME INTERACTION: Millennials live on-the-go, and their mobile devices ensure they are always connected and living in real time LIVING LIFE THROUGH TECHNOLOGY: For Millennials, digital isn’t just about bringing the offline online, it is about creating new spaces and behaviors to create, play, share and consume Millennials = born between 1979 and 1997; ages 16-34 in 2013 ©TNS 2013 15
  16. 16. Migration has started to pick up again Migration has started to pick up again, driven largely by people moving within the European Union, after 3 years of continuous decline during the crisis (OECD, International Migration Outlook 2013) Remittance flows to developing countries are expected to reach $414 billion in 2013 (up 6.3 percent over 2012) and $540 billion by 2016 (The World Bank, Migration and Development Brief, October 2013) Continuing to help immigrants to integrate will ensure they can play their part in driving growth ©TNS 2013 16
  17. 17. The new “Payment Services Consumer”: an active Stakeholder who contributes to choose his own payment way A new Stakeholder, who acts as a pro-sumer, who decides which payments best meet his needs and who is aware of the inclusive service the Electronic Payment System supplies ©TNS 2013 17
  18. 18. TNS can take you through the details to unlock growth 3 How consumer responds: a TNS UK case study ©TNS 2013
  19. 19. The TNS UK case study Identify opportunities for payment methods to better serve consumers Requirements on payment occasions Consumers ideal needs Sample size: 1,706 ©TNS 2013 How current payment methods meet those needs Fieldwork: May 2013 19
  20. 20. Less is more... But the consumer wants more from less 20
  21. 21. Consumers have three “core” needs which account for 41% of their spend; three further needs in financial planning and personalisation define a huge opportunity Budget planning Personalised & intelligent o 26 14 No-hassle, quick & easy Service & in-control n 10 19 15 16 Recognised & accepted Fraud-protection & benefits ©TNS 2013 21
  22. 22. The six ideal needs are complementary and fit with different parts of the market landscape Currently no payment methods meet ‘personalised & intelligent’ need Credit card Credit Online Online Tech Debit w/o card with bank 3rd enabled Cash cards benefits benefits account party payments No-hassle, quick and easy 10% Recognised and accepted 15% Fraud-protection and benefits 16% Budget planning 14% Service and in-control 19% Personalised and intelligent 26% ©TNS 2013 22
  23. 23. There are many opportunities to meet needs better Less is more... but the consumer wants more from less ©TNS 2013 No payment method meets consumers biggest need 23
  24. 24. 4 Activating insight to bring consumers on board ©TNS 2013
  25. 25. There are two key drivers of consumer attitudes and behaviours; in relation to payments methods, there are 5 segments of similar sizes (of population) Technologically engaged + Tech loving with limited budget Financially uninvolved + - Risk averse conservative Financially disengaged ©TNS 2013 Tech savvy best deal seeker Financially involved Wealthy traditionalist Technologically disengaged 25
  26. 26. There are many opportunities to meet needs better Less is more... but the consumer wants more from less ©TNS 2013 No payment method meets consumers biggest need Opportunities exist within each consumer segment 26
  27. 27. 5 Looking to the future: pay your way ©TNS 2013
  28. 28. Optimising the ideation process Personalised & Intelligent: Insight into action Example of how learning can be used to start process of developing growth ideas Need gap Target consumer Consumer insight Example idea(*) A “Personalised and intelligent” payment method Tech savvy best deal seeker Rewards connected to the purchase experience pai.com I want an integrated shopping and payment experience. With today’s technology it’s ridiculous that I have to go through a series of disjointed steps (*) New APP for payments that does not exist in reality, it is just an illustrative idea ©TNS 2013 28
  29. 29. ©TNS 2013 29
  30. 30. There are many opportunities to meet needs better Less is more... but the consumer wants more from less ©TNS 2013 No payment method meets consumers biggest need Opportunities exist within each consumer segment Happier consumers and opportunities for all stakeholders 30
  31. 31. Thank you Irene Ierardi Senior Research Executive TNS Finance tel. +39.02.270721 @: irene.ierardi@tnsglobal.com ©TNS 2013 31

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