Trends and topics related to eCommerce and conversion. A brief concentrated snapshot to give you a quick dive through into this area. More? Go and check me on LinkedIn and search for Atahan Tepe!

1. Atahan Tepe
eCommerce
a snapshot

2. Hello!
• In the following slides, I have briefly captured my thoughts on the
eCommerce industry - where I believe the market and involved
stakeholders are moving.
• What is your view on how you believe this sector will evolve and
where the market will go from an acquirers perspective?

3. What is the potential to unlock?
>800 mn inhabitants 565 mn are online 264 mn are eShoppers min. ~5 bn EUR potential for PSP‘s

4. • 2013 GDP in EU 2.2%, 2016it will double and 2020it will tripple
• Whereas globally the share is 4.2% in EU is 5.7%.
• 46% of purchases are services [20% via mobile, 7% via tablet],
54% are goods [10% via mobile, 18% via tablet].
• Only three european countries made it into the Top 10 of eCommerce:
How big will eCommerce grow?
3..UK
5..DE
6..FR

5. What are the challenges?
• Interchange fee rules are reshuffling the earning side, new services to be introduced to
cover losses, shifting of cost to cardholders expected.
• Selling more phones than tablets impacting shopping behaviour and also influencing
customer interaction, shopping/instore experience and therefore payment behaviour.
• Younger generation will help further adoption of mobile and lead to additional investments.
• Cross border payments provide insights into performance per country, per payment
method, per time period, which requires investments into BI.
• Fraud prevention mechanisms as mobile payments initiated from non-domestic consumers
result in higher fraud ratio as a percentage of revenue.
• No borders between e- and m-Commerce / -Payments, ist all about omnichannel retailing
with personalized customer approach.

6. How is retail moving into eCommerce?
 Merchants need traffic generation, customer
interaction and heavy usage of social media
 Professional webshop and click-once experience
to select, inform, order, pay… multiple regions
and languages
 Track data and analyze site usage, enable
``member get member“ deals to utilize online
investments
 Auto-detect customers in-store based on NFC,
QR or LBS; using such methods also for payments
 Ask about ``I like“ items which the POS can get
from backend (social media) to „upsell@(m)POS“
 Offer special deals based on loyalty scheme and
influence (combined) payment method selection

7. What is important to the merchant?
• Merchants want CONVERSION, increased CONVERSION and CUSTOMER DATA to build
LOYALTY. Consultation in the area of legal setup of Biz, usage of local / central Acqur. / PSP is
very important.
• Similar to traditional retail, Russian and Chinese consumers do also shop online and prefer
to use their own, well known payment methods – if not supported, high opt-out ratios are
seen (potential is aprx. 12-14 bn EUR for CY and from 10 – 25 bn EUR for RU).
• Critical painpoints for merchant that want to go international are the same:
• Marketing across different countries/cultures
• Fragmented payment methods, many players, > agnostic platforms?
• Logistics/Delivery/Return mechanisms

8. What is important when – listening – to
merchants!
Unattended from
anywhere
Today a customer
can shop anytime,
anywhere and
compare pricing
easily
Using long haul
transport
Inflight
entertainment and
shopping channels
enable new ways of
communication
Using local
transport
Cabs in London
promote stores and
hotels, QR codes to
get deals, pay
mobile/NFC
Digesting the
experience,
customer support
Stay close with
social media,
promotions and
VIP events, loyalty
statements
Attended at
merchants site
Service customer,
use loyalty data,
have mPOS
equipped staff to
show you “care”

9. Who else is fishing in this pond?
• Non traditional:
• PayPal, Amazon, Apple, Adyen, Kalixa, Yapital, Klarna, iDeal, VeroPay, MPay24, Viveum,
Skrill, BillSafe, RatePay, Click&Buy, Telco‘s (paybox and similar)
• Traditional:
• Elavon, Worldpay, First Data, Aduno, B+S, CardComplete, Concardis, Wirecard, BNPP,
Atos Worldline,
• To be:
• CUP is supporting local HW manufacturers funding NFC, and compete with ApplePay
based on Android; expected to come up later in 2015.
• SamsungPay, quite similar to ApplePay using NFC and fingerprint; cooperating with Visa

10. Most frequented e-tailers in GER-AUT-CHE
DE CH
• PKZ Burger-Kehl
• Zalando
• Voegele
• Dein Deal
• Interio
• Westwing
• Brack Electronics
• Windeln.de
• Ex Libris AG
• World of Games
• Amazon
• Ebay
• Otto
• Tchibo/Eduscho
• Zalando
• Lidl
• Bon Prix (Otto)
• Weltbild
• Conrad
• Ikea
And some others stakeholders I know…AT
• Amazon
• Universal
• Otto
• Neckermann
• Tchibo/Eduscho
• Conrad
• Weltbild
• Ditech [liqu]
• Amazon
• Esprit

11. How do we pay – in general?
• 22% of ttl transactional value
are paid with AP methods
(~165 bn €) • Real-time bank transfers are
popular, but also eWallets will
generate twice as many trx.

12. Region Payment method Spending
DE, AT 58% INV, 34% CC, PP, GP, COD,
ELV, C&B
1.300 EUR
CH 55% INV, 40% CC, 35% PP, 24%
OB [PF]
1.600 EUR
FR CC [CB], PP 1.100 EUR
ES CC, Debit, 4B[OB] 1.000 EUR
UK, IE 40% CC, 35% Debit, 21% PP,
Laser[CC]
1.900 EUR
BE, LX, NL CC, OB, PP, iDEAL, MrCash 1.600 EUR
Which PAY methods preferred in EU?
UK, IE: CC
DE: INV
ES, FR, IT: CC, PP
Nordic: CC
TR: CC
RU: COD, CC
AT, CH: CC, INV
BeNeLx: CC, OB, PP
CC-CreditCard, INV-Invoice, PP-PayPal, COD-CashOnDelivery, C&B-Click&Buy,
OB-OnlineBanking, GP-GiroPay, CB-CarteBleu, PF-PostFinance
China: Alipay, Tenpay, Unionpay
62% cross border (54% DE,
16% FR, 15% US, 8% UK).
55% via phone, 33% via tablet

13. Examples of merchants needs
Merchants are all experimenting within the omnichannel topic. There is not
yet a standard or ``go to“ solution commonly visible among them. A short
term strategy to start going with any kind of ``solution“ seems to be given as
comittment from merchants IT teams to their Retail Operations.

14. What can I do for you?
Having a long experience in payment, retail, value added services and much
more I can give you some ideas and also help to implement those into your
environment.
Don‘t hesitate to drop me a note and I‘ll come back to you!
Happy Sales and let‘s make sure the cash register never stops ringing!