Omni-channel
payments in retail
Geoffrey Barraclough
Cards & Payments Conference
July 2013
Innovation in action
Payment innovation often driven by
necessity
1
650BC
Coins

2500BC
Gold bars

1659AD
Cheques

960AD
Banknotes

1

1855
Ful...
Retail is changing but transactions remain
at the heart

Store
Mobile

Social
Field Force

Transactions
What are retailers asking about?

Invest in
Contactless?

Make refunds
across channels?

How do I get cost-effective
data ...
Making payments easier
Contactless growing for low ATV/high throughput
Value of contactless transactions
£30,000,000
WorldPay

£25,000,000

£20,0...
The Omni-Channel Customer
New technology is pervasive but not ubiquitous
Which of the following do you use nowadays on a regular basis, i.e. at leas...
Loyalty is ubiquitous…
Which of the following do you use regularly (once a month)?

68%

13%

6%

4%

59%

13%

5%

4%

On...
…increasingly linked to payments….
Which of the following cash do you use at least once a month?

16%

8%

2%

15%

8%

2%...
…..and open to digitisation
Agreeing it is very convenient to receive vouchers in the following ways

53%

48%

44%

16%

...
Interest in future payments in isolation is negligible
I would like to
use

Nice to have

18%
9%
8%
6%
6%
6%

31%

An onli...
Attitudes to new payment systems
Consumer attitudes to new payment systems
Well designed payment
application
- consumer pe...
Omni-channel
payments in retail
Geoffrey Barraclough
Cards & Payments Conference
July 2013
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Omni-channel Payments - what retailers need to know

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Presentation to 2013 Cards & Payments Conference.
What our customers are asking for.
Quant research indicating key shopper needs are (1) link payments and loyalty cards (2) make m-commerce less hassle
Qual research indicating little interest in many new payment ideas

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  • imperative of omni-channel reconfiguring of the store’s role within the omni-channel propositionmaking the most of mobile (in-store and m-commerce)customer intimacy as the only alternative to price as a competitive weaponmaximise sales to global shopppersuncertainty – nobody has the answers to what happens nextsuppliers – need flexible experts, future proofed
  • How can I choose the right payment type for each new country?Do I need to accept Union Pay?What’s the best Tax Free Shopping service?Can I have a single payment service that works across all channels?How do I block the fraudsters without annoying my customers?What about tokenisation?Make reconciliations easier.How to I take money when my till becomes an iPad?How can I make it easy for my customers to buy with a mobile?Is my payment infrastructure really future proof?Can you make PCI painless?Should I implement contactless?
  • Question 6SmartPhoneUsers/NonSmPhoneUsers I don't use any of these regularly 51% 65%Cash back on your debit card or bank account 18% 14%Cash back on your credit card 15% 15%Groupon 15% 5% Quidco 12% 5% TopCash 11% 5%VoucherCloud 6% 0%Wowcher 3% 1% Travelzoo 2% 1%
  • Q8
  • Omni-channel Payments - what retailers need to know

    1. 1. Omni-channel payments in retail Geoffrey Barraclough Cards & Payments Conference July 2013
    2. 2. Innovation in action
    3. 3. Payment innovation often driven by necessity 1 650BC Coins 2500BC Gold bars 1659AD Cheques 960AD Banknotes 1 1855 Fully printed notes 1694 UK banknotes £1 1968 BACS 1951 Diners Club D 1987 Debit cards 1966 UK credit card UK 2003 Chip & PIN 1997 e-banking & mobile payments 2007 Contactless 2008 Faster Payments Debit cards achieved 50% penetration in 5 years Cash machines achieved 50% penetration in 16 years
    4. 4. Retail is changing but transactions remain at the heart Store Mobile Social Field Force Transactions
    5. 5. What are retailers asking about? Invest in Contactless? Make refunds across channels? How do I get cost-effective data security? Make payments cheaper Reducing scope of PCI? What about loyalty schemes? Should I worry about digital wallets? Take payments on the move?
    6. 6. Making payments easier
    7. 7. Contactless growing for low ATV/high throughput Value of contactless transactions £30,000,000 WorldPay £25,000,000 £20,000,000 Total UK Market Olympic marketing £15,000,000 £10,000,000 £5,000,000 £0 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
    8. 8. The Omni-Channel Customer
    9. 9. New technology is pervasive but not ubiquitous Which of the following do you use nowadays on a regular basis, i.e. at least once a month?  69% of women use Facebook, compared to 52% of men
    10. 10. Loyalty is ubiquitous… Which of the following do you use regularly (once a month)? 68% 13% 6% 4% 59% 13% 5% 4% Only 9% Do not use a loyalty card regularly 48% 9% 5% 4% 21% 8% 4% 3%
    11. 11. …increasingly linked to payments…. Which of the following cash do you use at least once a month? 16% 8% 2% 15% 8% 2% 11% 3% Cash back on debit card Cash back on credit card 56% do not use any of these schemes regularly (e.g. once a month)
    12. 12. …..and open to digitisation Agreeing it is very convenient to receive vouchers in the following ways 53% 48% 44% 16% At the till on paper/card By post By email By searching online 12% 10% 5% By text Through an App Using a QR code
    13. 13. Interest in future payments in isolation is negligible I would like to use Nice to have 18% 9% 8% 6% 6% 6% 31% An online wallet where you can store cards a smartphone (e.g. Google Wallet) 5% 20% Chirpify 2% 10% Fingerprint, Iris scanner Using your smartphone to make payments but still with a PIN Using your smartphone to make contactless payments to £20 Supermarket poster in railway station to scan for later deliveries/pick up SMS payments e.g. Pingit Would not store loyalty cards 21% 21% 21% 17% 21%
    14. 14. Attitudes to new payment systems Consumer attitudes to new payment systems Well designed payment application - consumer perception Good, gimmicky High effort Irregular transaction Polarising, Good v freaky Hassle-free Great - safety Strong consumer need Weak consumer need Do I need this? Complicated, high effort Less well designed payment application - consumer perception Too easy, insecure
    15. 15. Omni-channel payments in retail Geoffrey Barraclough Cards & Payments Conference July 2013

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