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Chris Hughes - The future of commerce


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The future of commerce

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Chris Hughes - The future of commerce

  1. 1. A Visa Solution Future of Commerce 2017 Chris Hughes Head of Digital Acceptance, Asia Pacific @ch_quick A Visa Solution
  2. 2. A Visa Solution Case studies, statistics, research and recommendations are provided "AS IS" and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. You should consult with your legal counsel to determine what laws and regulations may apply to your circumstances. The actual costs, savings and benefits of any recommendations or programs may vary based upon your specific business needs and program requirements. By their nature, recommendations are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Visa is not responsible for your use of the information contained herein (including errors, omissions, inaccuracy or non-timeliness of any kind) or any assumptions or conclusions you might draw from its use. Visa makes no warranty, express or implied, and explicitly disclaims the warranties of merchantability and fitness for a particular purpose, any warranty of non-infringement of any third party's intellectual property rights. To the extent permitted by applicable law, Visa shall not be liable to a client or any third party for any damages under any theory of law, including, without limitation, any special, consequential, incidental or punitive damages, nor any damages for loss of business profits, business interruption, loss of business information, or other monetary loss, even if advised of the possibility of such damages. Disclaimer
  3. 3. A Visa Solution Two key drivers of change Technology and people
  4. 4. A Visa SolutionA Visa Solution Fourth Industrial Revolution is creating breakthroughs Businesses need to adapt ride the disruption and evolve their foundational technologies to succeed. Digital A Visa Solution
  5. 5. A Visa SolutionA Visa Solution Sharing economy is not just a fad Sharing economy will grow from $15B to $335B by 2025 ¹ 78% of consumers are willing to share or rent their personal resources² 20-50bn By 2020³ 2016 6.4bn connected objects ¹PWC The Sharing Economy, 2015 ²Nielsen consumer survey 2014 ³
  6. 6. A Visa SolutionA Visa Solution Merchants want to “follow the money” - Digital is driving global spending growth By 2020… Sources: 1. eMarketer;:,Ro:10,Nr:NOT(Type%3aComparative+Estimate) 2. Juniper: http://kcenter/Documents/Subscriptions/Juniper/Mobile-and-Online-Purchases-2015-2020-Market-Forecasts.pdf 3.eMarketer, March 2017, 4. yStats $2.2T eComm (excl. mobile) 1 16.9% annual growth 2015-2020 $1.8T Mobile 2 17.2% annual growth 2015-2020 $24T Face-to-Face Point-of-Sale (POS) 1 3.5% annual growth 2015-2020 Cross-border 50% 61% 75% 51% 25% USA UK Australia Singapore China, India % of online shoppers who have made a cross border eCommerce purchase3 Global cross border B2C eCommerce volume4 ($B) 530 676 826 994 2017F 2018F 2019F 2020F
  7. 7. A Visa SolutionA Visa Solution Generation “I want what I want when I want it” Millennials have a combined spending power of $2.5 trillion and by 2025, they will make up 75% of the global workforce¹ Now, anyone with a mobile phone can be a merchant, as well as a consumer. ¹Kantar Gllobal Millennial Study 2017 A Visa Solution
  8. 8. A Visa Solution Millennials are receptive of and desire personalisation and customisation 60% of millennials are comfortable with providing their information to retailers vs 47% of overall consumers 61% of millennials want tailored promotions sent to them Source: understanding-of-millennial-consumers-to-capture-share-of-6trillion-wallet-in-asia-accenture-warns.htm
  9. 9. A Visa SolutionA Visa Solution Who then do we target? the individualized needs of consumers toMoving from the mass-produced A Visa Solution
  10. 10. A Visa Solution How payments are changing
  11. 11. A Visa SolutionA Visa Solution Payments landscape in 2017 Electronic payments surpassed cash payments globally in 2016 Mobile and eCommerce are commodities The world has shifted to a digital-first mindset A Visa Solution
  12. 12. A Visa SolutionA Visa Solution Face-to-face Online Click and collect Hybrid Payments is no longer about the digital world or the physical world Rise of ecommerce experiences in a face-to-face environment Increasing need for consistent payment experiences across channels Blurring types of commerce
  13. 13. A Visa SolutionA Visa Solution Payment Complexity is Increasing Consumer Channel 1995 2000 2005 2010 2017 Internet / Ecommerce Wider Digital EconomyCloud / Mobile Payment Types Payment Initiation + Buy it Pin it ++ Unified ACH BANK TRANSFERS
  14. 14. A Visa SolutionA Visa Solution The new meaning of ‘wallet’
  15. 15. A Visa SolutionA Visa Solution Payments go invisible A Visa Solution Payments are smarter, because we are making them more context-aware
  16. 16. A Visa Solution What does this mean for you?
  17. 17. A Visa SolutionA Visa Solution The common theme: Removing friction Integrate payments seamlessly into the customer journey Be where your customers are; enable commerce in the moment Enable the ability to store credentials A Visa Solution
  18. 18. A Visa SolutionA Visa Solution An multichannel strategy fuels growth With every additional channel they used, the more they spent. Customers who used 4+ channels spent 9% more in the store on average. Multichannel consumers spent an average of 4% more in the store and 10% more online than single-channel customers. 4% more 10% more Source: Harvard Business Review survey 2015-2016 A Visa Solution
  19. 19. A Visa SolutionA Visa Solution Consumer expectations disconnected from merchant realities – channel siloes drive complexity Security Merchant account Connectivity Data Kiosk Call center mPOSPOS Web Mobile Customer data Merchant reality Integrated commerce
  20. 20. A Visa Solution Reach new markets… On-demand, localised payment/tax reach Risk analysts on 5 continents Safe… With ConfidenceFast… Global Visa infrastructure / expertise Note: All brand names and logos are the property of their respective owners, are used for identification purposes only, and do not imply product endorsement or affiliation with Visa or CyberSource.
  21. 21. A Visa SolutionA Visa Solution Voice and Chatbots are popping up everywhere WeChat Facebook Messenger order a taxi with Uber update travel schedule play music retrieve video order food Encountered commerce Be where your customers are Note: All brand names and logos are the property of their respective owners, are used for identification purposes only, and do not imply product endorsement or affiliation with Visa or CyberSource. Google Home Alexa from Amazon A Visa Solution
  22. 22. A Visa SolutionA Visa Solution Payment Management Platform Grow Sales | Mitigate Risk | Operate with Greater Agility
  23. 23. A Visa Solution Thank you