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From Illusion to Reality: Turning the World into a Practical E-Global Mall

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"Witnessing Cross-Border Successes Daily, Allows Vantiv & Credorax to ‘Knowledge-Share’ with other U.S. Industry Players Looking to Slice off a Piece of the Lucrative Global
E-Commerce Pie" - Vantiv & Credorax talk at #TRANSACT16 about global payments, cross border payments and e-commerce

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From Illusion to Reality: Turning the World into a Practical E-Global Mall

  1. 1. From Illusion to Reality: “Turning the World into a Practical E-Global Mall”
  2. 2. Introduction: 2 &
  3. 3. “Witnessing Cross-Border Successes Daily, Allows Vantiv & Credorax to ‘Knowledge- Share’ with other U.S. Industry Players Looking to Slice off a Piece of the Lucrative Global E-Commerce Pie” • 85% Cross-border transactions from 188 different countries • Merchant Acquiring Banking licenses in Europe, Asia & U.S. $1.316 Trillion 3NR&
  4. 4. Limitless Global Opportunities 4
  5. 5. © 2015 Vantiv, LLC. All rights reserved.5 04/22/16 United States Vs. Global Markets Projected eComm Sales for the 10 Largest Markets Others Countries Among Top 10 United States E-commerce sales volume growing at ~12% annually ROW combined growing at over 17% each year 5N&
  6. 6. © 2015 Vantiv, LLC. All rights reserved.6 04/22/16 6N Top 10 Markets by 2020 $1.8T (China) $700B (U.S.) $141B (Japan) $134B (Germany) $166B (UK) $67B (France) $63B (Canada) $47B (Russia) $36B (Brazil) $62B (S. Korea) &
  7. 7. © 2015 Vantiv, LLC. All rights reserved.7 04/22/16 7NR Market Assessment: HypeVs. Reality • 1% shop online and only 2% will by 2020 India Brazil • Low cross-border shopping online • Very complex regulatory env’t • Very rapid move to online channels with 13% increase year- over-year • Among the most frequent online shoppers in world • Similar payment method mix to U.S. HYPE REALITY Germany UK &
  8. 8. TurnYourselves into the ‘GoTo’ Cross-Border PSP forYour Merchants 8NR
  9. 9. 9N STAGE 1: Transparent Assessment “Be a Transparent ‘Go Global’ Advocate for your Merchants, Because it May Not Work for All” Assessment Audit For Your Merchants: •Will Your Product Appeal Beyond U.S. Borders? •Do You Have Cultural/Language In-House Expertise? •Will ROI outweigh the Financial Investment Necessary? •Can Your Web Site adapt to Local Requirements? •Have You considered Supply Chain Requirements? •Do You have the Resources to Continue to Nurture Local Longevity (post market launch)? &
  10. 10. 10R STAGE II: Local EU Business Entity – A Must! “Help Your Merchants Find the Right Partners to Set Up a Local Entity” &
  11. 11. 11N STAGE III: Pick the Right Acquirer “Selecting the Right Merchant Acquiring Bank Can Make or Break Your Cross-Border Success” PSP Acquiring Audit: •Local EU Banking Licenses •Understands Complex Regulatory Environment •Local Offices: Cultural/Language Natives •Can Seriously Reduce Banking & Exchange Fees &
  12. 12. Be Aware: When Selecting An Acquirer, Make SureYou are Fully Aware of the Challenges & Solutions 12R
  13. 13. 13R Choosing the Right Merchant Acquiring Bank &
  14. 14. 14R Complex Reality of Going Global &
  15. 15. 15R Front End (authorization) Integration Support and account management Reporting harmonization On-boarding and KYC cost Back Office (funding and settlement) integration 45-150K per acquirer 6-10 weeks 30-40K per acquirer per year 20-100K per acquirer per year 2-15K per retailer per acquirer 30-60 days 350-500K per acquirer 6-12 months Source: C onsultHyperion 201 5 High Up-Front Costs for Multiple Merchant Acquiring Bank Integrations &
  16. 16. 16R New Entrants, Consolidation Lead to Reduction in Dependencies POS Terminals Billing Accounting e-Com Solution Providers Banks Card Schemes Logistics PSP Payment Service Provider &
  17. 17. OVERVIEW CHALLENGES Industry: Computergames - MMO ‘free-to-play’ online action games (iWorld of Tanks) Customer Profile: •Revenue: Exceeding €200 million •16 global offices/development centers •140 million international online users Location: HQ in EU. Global traffic including from U.S., Asia & EU (occasionally) Reduce number of global-local acquirers Minimize revenue loss fromcard declines Decrease online fraud incidents SOLUTION Award Winning Alliance Global Unified Acquiring Platform Multiple banking licenses Consultative account management ePower advanced technology Approval rate analysis & optimization Customized fraud management reports and processes Credorax WireCapital Exemplary ‘True’ Global E-Commerce 17R&
  18. 18. RESULTS Strengthened ROI via approval rates * Quarter Avg. Increased processing volume Countries Worldwide in 2015 with a single acquirer Processed card transactions from Jan 201 5 Dec 201 5 200 % 6.3 %Approval Rate 83% above benchmark 125 Achieved maximumscalability Fraud Drastically Decreases over1% Decrease during 2015 Chargebacks: Consistently Low 18R&
  19. 19. STAGE IV: Ongoing “Reality Check, One Size Does Not Fit All” 19RN
  20. 20. I may not have theI may not have the answer, but I’ll find it,answer, but I’ll find it, I may not have the time,I may not have the time, but I’ll make it.but I’ll make it. ClientClient AdvocacyAdvocacy 20&
  21. 21. © 2015 Vantiv, LLC. All rights reserved.21 04/22/16 FOCUS I: Fraud Mitigation Strategies • General Rule:“The nature of payment fraud—and techniques to counter its impact—widen outside the U.S.; Fortifying yourself prior to entering high-risk markets is imperative” • Merchant-Specific Rules: “Every merchant is different and as such you need to execute the right fraud mitigation strategies and tactics that best meet each one’s specific needs” 21N&
  22. 22. & 22R Industry: • E-commerce • Pan-European commerce CustomerProfile: • SME & Enterprise retailers • Over 90% concentration on SME market Location: • HQ in Munich, Germany • Worldwide presence CHALLENGE Transcend traditional ‘ONE-SIZE-FITS-ALL’ acquiring with a flexible, strategic, long-term partner 31 42 Solution Architects Customized solution for Paymill’s specific needs Designed Custom Solution Blueprint: Assessed Client: Targeted pain points Cloud-based digital onboarding portal: •‘Merchant journey’ view: •Real-time Communications Window: Supportive onboarding process & tools: •Electronic Merchant Application Form (MAF) •Automatic KYC wizard: customized per merchant profile •Pre-agreed fixed merchant pricing/terms Implemented Bespoke Technology Solutions: Application– KYC - MID Embedded, live client-sales operation managers dialogue All-hands-on-deck: CCO to SOM Approval rate analysis Target merchant profile optimization Provided Continuous Consultancy: FOCUS II: Customized Technology & Business Solutions
  23. 23. 23R RESULTS Onboarding: Expedited Time-to-marketIncreased Processing Growth Achieved High Approval Rates 2015 1,100% 2016 4X Faster in 1 Year PAYMILL OVERALL TOP MERCHANT TOP 3 MCC CODES benchmark aligned 90% + 92.5% &
  24. 24. 24RN “Critical to analyze and investigate why cards are declined and advise merchants on steps they must take to optimize their payments” •Declines vary from Merchant to Merchant •Numerous Reasons for Declines •High Approval Rates Mean Higher Conversion Rates, which Lead to Higher Revenue FOCUS III: Approval Rates &
  25. 25. Questions & Answers Rod R. Katzfey VP of Sales & Business Dev. NA Credorax Bank North America, MALPB USA  rod.katzfey@credorax.com Neeraj Gupta Senior Product Manager vantiv  neeraj.gupta@vantiv.com 25&

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