Innovations in Payments
EVO Payments International
15 September 2016
• One of world’s largest merchant acquirers
– $100b payments processed each year
– 600.000 merchant locations
• Domestic operations in USA, Mexico, Ireland, Poland,
Spain, Germany and Czechia
• Cross-border customers include C&A, Opodo
• Setting up in the UK, closely aligned with retail
• Easy integration methodology
Why are Payments Important
Annual cost of Interchange to
UK retailers - BRC
Payments CostsThe Peak-End Rule
Q4 2015 conversion rates - Monetate
Desktop Tablet Mobile
Shopper journeys getting longer and more complex
Marketing Visit Shop
Leading to more complex shopper journeys
Marketing Visit Shop
Sent to Mobile
Each retail sector is changing at its own pace
Fashion Grocery Fast food Petrol Rapid transit
Indicative graph only
Payments and shopping…
How easy is it to break into long
standing payment habits?
Speed is relative
Shoppers and the payment industry
have different concepts of time
Shoppers are easily discouraged
The first transaction has to be good
Needs to be clear and consistent
There’s a strong pessimism bias with
Apple Pay may overcome this
Our research showed…
factors determining the
speed of adoption of
new ways of paying
Successful payment innovation requires the
needs of all stakeholders to be aligned
It’s a complex business…
How well did these do?
…with multiple stakeholders. All need to be satisfied…
Get me in/Out quick
Kiosks and self-service | Contactless
Mobile point of sale | Visual merchandising
But forms part of the future of retail
…retailers are focused on transformation programmes delivering a much broader and enriched
Omni-channel customer experience.
Four main questions…
How do I make it easier to
take money on a mobile
phone - website or app?
How can I help my
customers use their phone
to purchase in my stores?
How can I join up digital
and store channels to
serve customers better?
How can I use digital to
grow sales outside my
…retailers need to answer
…and how do I do this securely?
Contactless - a rare, popular payment innovation
18% of all POS
Up 200% y-o-y
ATV = £8.60
Value of contactless transactions. UK £m
Source: Payments UK
Making mobile payment easier.
It’s buttons underpinned with the -Pays.
Improving Plastic Improving payments Removing Payments
The Pays are a valuable underpinning technology
layer but retailers need to build the CX
What of the CX?
Is it (finally) time for app payments in-store?
Retailer Apps Bank AppsMulti-retailer apps
Ability to pay on your mobile is not enough to get consumers to use mobile payments.
Need to create a great customer experience.
If we’re trying to reduce friction, what
future for the terminal?
SmartPOS bundle Single unit with appstore
If we’re trying to reduce friction,
what future for 3DS?
• Annoying shoppers and retailers since 2002
• Schemes working on 3DS 2.0 linked to PSD2
• Likely to feature two factor authentication
– one time passcode
– social graph verification
Future of payments is that you
won’t notice payments
Payments ceases to be a separate business process
EU MIF has been a qualified success
Credit/debit fees have reduced across EU
but watch out for:
• Your acquirer not passing on the reductions
• Schemes introducing new fees
• Shoppers switching to Amex
• Shoppers switch to corporate cards