Major trends in payments were identified across the entire stakeholder framework, including consumers, merchants, payment providers, and financial institutions. Six key trends were highlighted: value chain expansion, alternative payment methods, changing customer shopping and payment behaviors, new business models, regulatory changes, and new entrants. Technology is driving changes in how customers shop and pay. Merchants must invest in technologies to stay responsive to evolving customer expectations. Mobile payments are growing in popularity and laying the foundations for wider adoption of mobile wallets.

1. Changing Times &
Trends in Payments
Fintan Byrne, Executive Vice President and Managing Director
Transaction Network Services
Payments Knowledge Forum 29th - 30th September 2014

2. TNS – Central to the payments ecosystem

3. Major trends identified across entire stakeholder framework
Consumer Merchant
Payment
Technology
Provider
Acquiring
Bank
Card
schemes &
issuers
Stakeholder Framework

4. 6 major trends were identified
Value chain
expansion
Alternative
payment
methods
The way
customers
shop and
pay
New
business
models
Regulatory
changes
New players

5. 6 major trends were identified
Value chain
expansion
Alternative
payment
methods
The way
customers
shop and
pay
New
business
models
Regulatory
changes
New players
Technology is changing the way customers shop and pay. Merchants want to be
responsive but need to invest in the right technologies

6. A bewildering array of investment choices
Cloud
computing
1950 1960 1970 1980 1990 2000 2010
2020
Physical Digital

7. Integrated multichannel – the offline and online worlds have merged
CARDS OFFLINE CARDS ONLINE
ONLINE PREPAID OFFLINE PAYMENT
M-WALLET

8. Customer interaction has changed

9. Click and collect expected to reach €20 to €25bn by 2018

10. Mobile shopping today
Paris
Chicago Seoul
London
London
Paris

11. Redesign of the point of sale – combining virtual and physical worlds
Adidas
Marks & Spencer

12. Mobile point of sale & tablets
 Personalised shopping
 Up-selling & cross-selling
 Stock checking
 Queue busting
 Assisted selling
 Wow factor
 Reduced walk-aways

13. Consumers beginning to embrace ‘tap to pay’ concept
UK
France
Spain
Italy
Contactless terminals: 6,000
Contactless cards: ~ 1 – 2 million
Number of transactions: n/a
Germany
Ireland
Progressive
Contactless
Markets
Contactless terminals: 158,000
Contactless cards: 34.5 million
Number of transactions: 6 -7 million
Contactless terminals: 100,000 – 120,000
Contactless cards: 12.3 million
Number of transactions: 0.5 – 1 million
Contactless terminals: 180,000 – 200,000
Contactless cards: 3 – 4 million
Number of transactions: 1 – 2 million
Contactless terminals: 15,000 – 20,000
Contactless cards: 2 million
Number of transactions: n/a
Contactless terminals: 6,000
Contactless cards: 1 – 2 million
Number of transactions: 0.5 million
Sources: UKCA, CB, Visa, MasterCard,
NFC Times (all figures are 2012/2013)
Nascent
Contactless
Markets

14. …laying the foundations for Mobile Wallets

15. How should retailers respond?

16. Security, simplicity & reliability must be maintained….
What are the key challenges you face to accept payments?
Yes
68%
55% 55%
No
32%
45%
42%
33%
18%
12%
Source: EDC 2013 Retailer Survey
Security
Simplicity
Reliability

17. Conclusion

18. Questions
Fintan Byrne
Executive Vice President and Managing
Director, TNS
www.tnsi.com