1. Smart strategies for
cross-border e-commerce
International Payment Processing
Presented by:
Julian Wallis
Head of Sales – UK & Ireland
Ogone Payment Services
Mob: 07884 005565
jwa@ogone.com
23rd April 2013

2. Ogone’s Global presence
Local expertise with global reach and access
USA
New York
UK
London
Netherlands
Mijdrecht
UAE
CPSP
India
EBS
Staffing
Europe: 175+
India: 200+
France
Paris
Belgium
Brussels
Headquarters
Switzerland
Zurich
Germany
Cologne
Austria
Vienna

3. Borders? What borders?
I’m already
selling
online...
I accept
international
credit cards...
My site can be
accessed from
anywhere in
the world...
English is the
international
language...
24 hours a
day...
The whole
world is my
market place!

4. But...
• Are you appealing to local markets overseas?
• Are you thinking the way local people think?
• Are you possibly excluding potential buyers?
 Are you really maximising
your online sales opportunities?

5. Cart Abandonment Vs Increasing Conversions
Consider the marketing
effort and costs to get
people to your site...?
Source: Chase Paymentech Infographic 2013
Not an after thought...
All too often the payment process
is completely overlooked…

6. Consider this...
Visa & MasterCard represent over 100 million credit & debit cards in the
UK alone
American Express, Diners and JCB  Another 25 million.
Since 2000, UK internet shoppers have spent well over £250bn online,
rising from £0.8bn to an estimated £78 billion last year.
£2.50 of every £10 in retail now spent online
The UK accounts for the highest purchase volume in Europe with 14%
growth in 2012
50% year on year growth rates…in the past
Sources: IMRG / Nielson Reports

7. Some say...
The UK market is maturing.
However...
Online sales set to continue to grow in western
continental Europe (estimated 20-30% in 2013)

10. Want to take your
business to the next
level?
Expand your e-commerce
business across borders...
The whole world can be your market place

11. Local payment methods
??
??
??

12. Only credit cards?
In the UK...
Source: Ogone Research 2011

13. Across the borders of the UK...d = less than 15%
France
>>
Spain
>>
Italy
>>
Austria
>>
Netherlands >>
Germany
>>
?
?
?
?
?
?
...less than 76%
...less than 65%
...less than 59%
...less than 33%
...less than 15%
...less than 14%
The use of debit and credit card is
much lower in some countries
Source: Ogone Research 2012

14. Fact is...
60% of all on-line cross-border transactions are not
completed because the merchant trader does not provide
adequate payment methods for international payments.
Source: Study by European Commission on e-commerce for consumers

15. Think outside the credit card box
Source: Ogone Research 2012

16. Acquiring network
Payment methods
by type
Payment methods
mapping
Ogone serves national and international payment methods
Credit Cards
Debit Cards
Online Banking
Pre- Paid & e-Wallets
Direct Debit
Invoice
Online Consumer Credit
Purchasing Cards

17. Acquiring network
BEL
Mister
Cash
Payment methods
by type
NED
GER
iDEAL
ELV
Payment methods
mapping
DEN
Dankort
GBR
VISA
Electron
FRA
Carte
Bleue
SWI
PostFinance
AUT
EPS
ALL
COUNTRIES

18. Ogone Collect - Payment Methods
non-credit card online payment methods
Belgium
Netherlands
Germany
Austria
France
In development
Ogone offers Ogone Collect through its subsidiary Tunz.com who
delivers collecting services using its own acquiring service. Tunz.com collects
funds on behalf of your business and pays out the funds according to the
agreed term & conditions.

19. Secure open invoice & invoice processing
***Third party agents that provide guaranteed Open Invoice & Account payments***
Benefits
1.Increased sales - shown to increase sales by 30%
2.No risk–third party take the credit risk, so guarantee funds to merchant
(note: acceptance of customer payment is dependant on credit score - circa
50% )
3.Seamless – Fully integrated into Ogone’s platform
4.Acceptance – 65% of Germans state that pay by invoice / direct debit are
their preferred payment methods
5.Consumer ease & convenience - just submit bank account details - no
complex PIN or Post-Ident procedure

20. Local payment methods
Local languages
??
??

21. Multilingual / Localised
Payment Pages

22. How many languages!
Consider your payment pages...
Who is your target market?
 Chinese Mandarin
 Danish
 Dutch
 English
 Flemish
 French
 German
 Italian
 Japanese
 Norwegian
 Polish
 Portuguese
 Russian
 Spanish
 Swedish
 Turkish
 etc…

23. Multilingual payment pages
UK Cardholder
English text
UK acquirer

24. Multilingual payment pages
French cardholder
French text
French acquirer

25. Multilingual payment pages
Dutch local
payment method
Airline industry
payment method

26. Multilingual payment pages
German
local
payment
method
German text

27. Multilingual payment pages
French local
payment method

28. International payment pages
EU Domain
Prompts for country
specific sites
Local and
international
payment methods

29. Local payment methods
Local languages
Local currencies
??

30. Multi-currency options...
Local currencies for
local markets...
Dynamic Currency
Conversion = extra revenue!
Accepting Euros =
big advantage
Consider other currencies ...
but balance with the
practical realities

31. Dynamic currency conversion
Multi-Currency DCC
Automatically offer your customers
the choice of paying in their own
currency and benefit from an
additional revenue stream
www.global-blue.com
Find a DCC partner
Now seeing increasing trend in
merchants offering on-line
dynamic currency conversion
www.fexco.com

32. DCC – process flow
Query to DCC
provider
Pay with
CC
Selection
of goods
Conversion to consumer
currency by DCC provider
$100
$ 100,-
$ 100,-
€
€75
EU Customer
EU Customer
Customer opts for payment in €
Credit card
statement
$100 (Merchant currency amount)

€ 75
€ 75 (DCC amount incl. margin)
EU Customer
Bank Account/
Acq. Statement
$100
US Merchant
Transaction processing
Authorisation in €

33. DCC – cardholder has choice

34. Local payment methods
Local languages
Local currencies
Acquiring options

35. Local vs international
United
Kingdom
Other
countries

36. Other considerations?
Cost Savings
Local Vs international suppliers
Economies of scale
Consolidation of suppliers
Accelerated expansion
Local Vs central reporting
Greater market penetration
Currency fluctuations
Increased client base
Pricing across borders
Reduced cart abandonment
Logistics / distribution
Increased conversions
Local taxes and VAT
Increased revenues
Management / staffing
Grow your business...
Julian Wallis | Head of Sales | jwa@ogone.com | 07884 005565

37. Cross Border Ecommerce Summary
Countries & Regions
Consider which countries or regions you are looking to target?
Payment Methods
The landscape offers a huge range of payment methods with different benefits...
Specialist Consultancy
Choose a payment service provider (PSP) that can provide consultancy. Specialist knowledge on
local and international payment methods is an essential ingredient for success
Collecting Services
Consider working with a PSP that offers collecting services on key alternative and local payment
methods to make it easy for you via a single contract
Localisation
Consider your approach to local domains…local language…local acquirers and local
currencies
A Seamless Journey
Don't create unnecessary barriers in your checkout process. Providing a seamless journey will
make the customer far more comfortable and give you a better chance of success.
Successful Results?
Cross-border e-commerce will lead towards increased revenues for UK online retailers and is the
best strategy for success for UK companies in 2013.
Julian Wallis
Head of Sales
jwa@ogone.com
07884 005565