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Aeromexico and Adyen - Transformation of E-Commerce Payments

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Aeromexico implemented the Adyen payments gateway, leading to revolutionary improvements in both acceptance rates and the customer experience. Presented at Airline & Travel Payments Summit (ATPS), Berlin, May 2017

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Aeromexico and Adyen - Transformation of E-Commerce Payments

  1. 1. Digital Transformation and the Role of Payments ATPS Worldwide, Berlin, 3-5th May 2017
  2. 2. Tim van Diest SVP Global Accounts Brian Gross Head of Digital Innovation
  3. 3. Some facts about Adyen
 • Tech company founded in 2006 • One platform, one integration • $90 Billion processed volume in 2016 • 7 own + 90 external acquiring connections + LPM’s • 13 offices in 5 continents 
 • 560 employees globally
  4. 4. Adyen & Travel • 30% of total Adyen volume • Active in all regions • Integrated with Amadeus, Sabre and Navitaire • Multi acquiring routing tool • 39 Airlines live on the platform
  5. 5. wherever people pay
  6. 6. Digital transformation with an unexpected discovery
  7. 7. Heritage
  8. 8. Aeromexico today
  9. 9. Digital transformation • Insourced, staff 5 > 80 • New website • API • New check-in kiosks • Chatbot, AI • Doubled Web as % of sales
  10. 10. Our e-commerce goals Best Latin American airline in e-commerce Global top 10 airline in digital innovation Customer Experience BrandProfit
  11. 11. So we must provide an Omnichannel Experience
  12. 12. Omnichannel experience
  13. 13. The biggest surprise of all…
  14. 14. Our payments transformation • Architecture • Local acquiring • Monitoring • 3DSecure & Risk • Results • Future
  15. 15. Aeromexico’s architecture before Aeromexico.com Front end Aeromexico API SABRE back end 1 acquirer – MX 1 acquirer - US Issuing banks Cybersource Other Connections
 (Mexico cash) 3DS
  16. 16. Aeromexico’s architecture:
 Connections to our back end are expensive Aeromexico.com Front end Aeromexico API SABRE back end Issuing banks Cybersource Other Connections
 (e.g. Mexico cash, Central America, Colombia, Argentina) 3DS 2 acquirer – MX 1 acquirer - US 1 acquirer - BR 1 acquirer - EU 1 acquirer - UK 1 acquirer - CA
  17. 17. Adyen enables local acquiring in new markets Benefits of local acquiring • Cost savings channel shift • In-country transaction • Higher acceptance rates • Local currency • No foreign exchange or surcharging • Local instruments • Parcelas in Brazil - 50% of sales • Installments in other Latin countries - 30-80% of sales
  18. 18. Monthly transactions for AM.com (2015-2017) 0 300 600 900 1200 Jan 15 Mar May Jul Sept Nov Jan 16 Mar May Jul Sept Nov Jan 17 Mar United Kingdom France Spain Netherlands Rest of Europe Europe Growth vs previous year (MoM, %) Launch of EUR and GBP in Feb. 16 Local acquiring boosts sales -3% 34% 164% 120% 263% 219% 239% 203% 431% 286% 234% 253% 352% 112% 55%
  19. 19. Tips and Tricks Check message configurations • Acquirers have special configurations for certain cards, countries or Forms of Payment (e.g. installments). • Check the set-up with them to find gaps or underperforming categories Retry transactions with other acquirers • Around 10% of Rejections from Acquirer A, might be authorized by Acquirer B Validate end-to-end flow • Auth, Capture, Settlement, Refunds, etc. Every new PoS might need specific adjustments Solve frequent unclear error types • Focus on the most common ones that are unclear or vague. Acquirers might have unpleasant surprises. Monitor daily performance
  20. 20. Adyen Dashboard • Monitor daily performance • Solve concerns, deep analysis • Performance by acquirer by BIN • Identify misconfigurations for installments, cards by country, etc. • Change % traffic to different acquirers • Generate manual procedures for refunds, captures or cancellations
  21. 21. We removed 
 3D Secure • No significant Fraud increase in Mexico • Fraud increased beyond tolerable levels in US, so we put 3DS back on, but… • New acquirer in US – Elavon – fraud remained under threshold • Cybersource = effective! • Implementing Dynamic 3DS with Adyen
  22. 22. Overall results: high acceptance rate, increased customer satisfaction Success rate Visa/MC payments Web Mexico in 2016 70% 90% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sept-20 Oct-20 Nov-20 Dec-20 77% 78% 76% 74% 79% 80% 80% 82% 86% 86% 84% 84% Launch ofAdyen asG atew ay M SIQ 6 code, Accep.from 57% to 75% Santanderas 2nd Acquirer Retrieson AcquirerB 9% recovery rate, 5M USD per year
  23. 23. The future • Central and South America: • Local card acquiring • Cash • Installments (30-80% of market) • Adyen + Asia, AFP Europe, etc. • 3rd acquirer Mexico • 2nd acquirer USA • Chatbot • Payment inside of Messenger
  24. 24. Aeromexico…
 the world’s most 
 advanced
 airline chatbot! m.me/AeromexicoMX
  25. 25. Coming soon…
 Payment inside of Messenger • With Visa assets e.g. • Cybersource Decision Manager • Tokenization • Visa Checkout
 • Secure, PCI • High approval rate • Reconciliation • Automatically issue ticket • Confirmation page and email
  26. 26. Q and A ATPS Worldwide, Berlin, 3-5th May 2017

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