Sagepay Online Payment trends


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Sagepay Online Payment trends

  1. 1. Screenpages Client Day, Sage Pay Jenny Homer
  2. 2. Agenda <ul><li>Leveraging the latest trends in online Payments </li></ul><ul><ul><li>Cross channel and mobile </li></ul></ul><ul><ul><li>Social commerce </li></ul></ul><ul><ul><li>Tokenisation </li></ul></ul><ul><ul><li>Sneak peak at our e-benchmark Study results </li></ul></ul><ul><li>Payments Card Industry Data Security Standard </li></ul>
  3. 3. Sage Pay credentials <ul><li>UK’s fastest growing Payment Service Provider (PSP) </li></ul><ul><li>Acquired by Sage Group PLC in 2006 and re-branded to Sage Pay 2009 </li></ul><ul><li>33,000+ customers growing at 600+ customers per month </li></ul><ul><li>Over 10 million transactions processed each month, over 1.1 Billion transactions per year </li></ul><ul><li>PCI level 1 compliant / member of PCI SSC </li></ul><ul><li>UK based 24/7 customer support </li></ul>
  4. 4. Where do we fit?
  5. 5. Latest trends in payments <ul><li>The major focus of the internet retailer is, and will be next year: Mobile Commerce , Social Commerce, International … </li></ul><ul><li>“ Mobile is no longer a gadget, it's what our IT will become&quot;  IBM </li></ul><ul><li>By 2015 mobile will level out at about 15% of the ecommerce market </li></ul>
  6. 6. Latest trends in payments <ul><li>Customer shopping patterns are changing and we talk about Channel Convergence , namely that... </li></ul><ul><ul><ul><ul><ul><li>customer touch points are exploding in terms of sales/revenue </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>this is customer driven </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>particularly driven by mobile </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>- customers have higher expectations </li></ul></ul></ul></ul></ul>
  7. 7. Social Commerce <ul><li>An increasingly critical customer touch point </li></ul><ul><li>Not just a marketing tool but now a sales tool </li></ul><ul><li>Customers now keen to buy directly from Social Networking sites </li></ul><ul><li>Study conducted by Dublin City University found that a facebook ‘Like’ doubles the willingness of a person to buy from a facebook store </li></ul><ul><li>Trust was very important too. 20% of respondents indicated that security concerns were a reason for not buying, while 82% of people trusted a friend’s recommendation over company advertising. </li></ul>
  8. 9. Latest trends in payments <ul><li>As a payment gateway we don’t differentiate between transactions that come from a mobile, a social networking site or a desktop computer </li></ul><ul><li>Important to consider usability and data collection on your payment pages </li></ul><ul><li>We recommend tokenisation here to streamline the check out and boost conversion </li></ul>
  9. 10. Sage Pay eBenchmark study 2011 <ul><li>Takes a close look at: </li></ul><ul><ul><li>Factors that contribute to making e-commerce a success, </li></ul></ul><ul><ul><li>why visitors drop out of a purchase and </li></ul></ul><ul><ul><li>how to avoid these pitfalls in order to maximise conversion rates </li></ul></ul><ul><li>We took this information and compiled a report to enable businesses to see how they compared to others in their sector </li></ul><ul><li>We are in the process of collating our findings from this year’s survey but can offer you a sneak peak today…. </li></ul>
  10. 11. What did it reveal about mCommerce? <ul><li>Mobile apps remain largely untapped channel. Only 5% already have an app, but there is significant interest in the technology </li></ul><ul><li>Growth is being led by bigger businesses. 13% of businesses with over 5000 transactions have an app versus 4% of smaller businesses </li></ul><ul><li>29% of all respondents claim they are planning to develop an app - 57% of businesses with more than 50 employees plan to develop apps and 28% of smaller businesses </li></ul><ul><ul><ul><ul><ul><li>Jury is still out for more than a quarter (27%) of businesses who don’t see the relevance of the technology to their business, but for the biggest percentage (45%) it’s simply a lack of time that is stopping them from developing an app </li></ul></ul></ul></ul></ul>
  11. 12. … Overseas expansion? <ul><li>More than half of businesses (56%) already trade in overseas territories , with the main focus on European countries and English-speaking markets like the US </li></ul><ul><li>Trade in China remains an emerging territory with one in ten respondents trading in the territory </li></ul><ul><li>Processing different currencies remains one of the biggest challenges for businesses that expand overseas , alongside operating in a different language – Of those who operate in overseas markets, a majority (68%) do not accept transactions in foreign currencies </li></ul>
  12. 13. Do you trade overseas, and if so, do you accept foreign currencies? <ul><li>Does your business currently trade overseas? </li></ul><ul><li>If you do trade overseas, do you accept foreign currencies? </li></ul>
  13. 14. Face your PCI demons <ul><li>PCI has given the ecommerce marketplace a comprehensive data security standard to work to </li></ul><ul><ul><li>– designed as a framework to help in the prevention, detection and appropriate reaction to security incidents </li></ul></ul><ul><li>PCI compliance is not yet a legal requirement - only one third of online businesses fully adhere to PCI DSS regulations </li></ul><ul><li>But it’s important to understand the risks of handling card data </li></ul><ul><ul><ul><ul><ul><li>Card Schemes are able to award potentially unlimited fines </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Reputational impact on your business of a breach </li></ul></ul></ul></ul></ul>
  14. 15. And beat them… <ul><li>A few guiding principles: </li></ul><ul><ul><ul><ul><ul><li>Regulatory requirements will become more stringent as your business grows - needs constant monitoring! </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Ask for help - ‘What is the best firewall in the business?’ ‘Which encryption service should I use?’ </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Use a Payment Service provider with certified PCI DSS Level 1 compliance , to collect, store and transmit card data on your behalf – outsource! </li></ul></ul></ul></ul></ul>
  15. 16. Thank you! <ul><li>Jenny Homer , Partner Channel Exec </li></ul><ul><li>0208 685 3324 </li></ul><ul><li>[email_address] </li></ul><ul><li>Twitter: @jenny_homer </li></ul><ul><li>The Sage Pay team available to chat… </li></ul><ul><li>From the Sales Team… Rob McEwen, Chris Ross </li></ul><ul><li>From Business Development… Martyn Boddy </li></ul>