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Ecommerce-POS Landing

The document provides a comprehensive overview of the global e-commerce industry, highlighting growth trends and projections across various regions, including Europe, China, Japan, and the United States. It outlines key drivers for e-commerce growth such as lower operational costs, increased internet penetration, and the demand for global products. The document also addresses challenges faced by the industry and consumer behaviors regarding online purchases and mobile commerce.

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Market Overview
Content Ecommerce Industry Outline Emerging Ecommerce Industry Trends Ecommerce Sales Projections Worldwide Ecommerce Key Growth Drivers Ecommerce Environment Ecommerce Business Model Ecommerce Challenges Ecommerce Marketing Solutions Ecommerce Features Ecommerce Participants 2
Ecommerce Industry European Union Ecommerce in Europe has once again shown some double-digit growth. The total ecommerce turnover in Europe increased by 11 percent last year, making it worth 534 billion euros. China Total Chinese eCommerce revenue across all product categories is 584 billion USD, and is expected to grow to 917.7 billion USD by 2022. Japan 89.55 billion US dollars and are projected to grow to 122.46 billion US dollars in 2018. Asian Total ecommerce revenue across all product categories is 617 billion USD, expected to surpass 1 trillion USD by 2021. . United States In 2018, online sales of physical goods amounted to 504.6 billion US dollars and are projected to surpass 735 billion US dollars in 2023. $504.6 billion €534 billions $584 billion $617 billion $89.55 billion 3
4500$ bln Cross Border RetailE CommerceSales Worldwide(2021F) 4$ bln CapitalizationofRetail. Global (2021F) 650$ bln RetailE-commerceSales Worldwide(2021F) Ecommerce Sales Projections Worldwide 4
Emerging Ecommerce Industry Trends Lower Operational Costs • Decreased real estate costs; investment funds as far as rentals, energy costs, worker costs and so forth. • Reduced stock expenses with shift from inventory- led models is to commercial center models. Increasing Internet Penetration • Web entrance, rising broadband speedsfacilitating development. • Mobile data clients in country is required to build four times to achieve 1200 million by 2018. Wider Customer Reach • Web interface making it easier to connect with non metro areas. • Driving e commerce players asserting 50% to 60% of incomes from T2/T3 areas. Rise in Demand for Global Product • Clients in developing markets hoping to purchase established international brands. • Increase in worldwide transportation adding to cross border e-commerce growth. 5
Ecommerce Environment Competitors Partners Customers/ Clients Communities Legal / Regulation Technology Economic Force Work Force E-Business 6
Ecommerce Business Model Ecommerce Model Your Website Customer Buys YouGet Paid You Supplier Ships to the Customers You Pay the Supplier 7
Ecommerce Business Model 9 Clients Clients Place Orders Vendors Shipping Magento Marketplace Vendors Receive Orders
Ecommerce Participants 9 B2B B2C B2G Businessto business • PayPal (and B2C, “ B2B2C”) • Optize (and B2C) • Alibabagroup Businessto consumer • Amazon • Freshdirect • Zynga (and C2C) Businessto government “E - Procurement” C2B C2C C2G Consumersto business • Zonzoo • Fotolia • Google Adsense Consumersto customer • Prosper (“P2P”) • EBay • Facebook Citizen to government Agencia Tributaries(Tax AgencyOnline) G2B G2C G2G Governmentto business“E- Government” • AEPM • Certificado digital Governmentto citizen “E- Government” • EDNI • Usa.gov(also G2B) Governmentto government • Government Gateway • Schengen Information System
Ecommerce Features 10 Ubiquity Global Reach Universal, Standards Social, TechnologyPersonalization, Customization Information, Destiny Interactivity Richness E-COMMERCE
Ecommerce Marketing Solutions 11 SocialMediaMarketing Web Design& Development Paid Search Optimization Affiliate Marketing Mobile CommerceGoogle Shopping& Amazon DataFeeds Conversion Rate Optimization EmailMarketing SEO & ContentMarketing Ecommerce Marketing Solutions
Ecommerce Challenges 12 Poor Knowledge and Awareness Tax Security Logistics and Shipment Services Online Security Online Transaction Touch and Feel” Factors Fear Factor Cash on Delivery E-Commerce Challenges
Ecommerce Figures
Internet Penetration INTERNET PENETRATION: TOP 10 COUNTRIES* INTERNET PENETRATION: LOWEST 5 COUNTRIES* Countries​ Share of popu lation using i nternet​ Online populati on​ United Kingd om​ 97.52%​ 63mn​ South Korea​ 95.21%​ 48.3mn​ Japan​ 92.69%​ 116.83mn​ Australia​ 92.44%​ 22.8mn​ Germany​ 91.76%​ 74mn​ Canada​ 91.41%​ 33.5mn​ France​ 86.55%​ 56mn​ Spain​ 82.32%​ 38mn​ Russia​ 79.44%​ 114mn​ Israel​ 79.17%​ 6.6mn​ Countries​ Share of popul ationusing inte rnet​ Onlinepopulatio n​ Brazil​ 61.02%​ 129mn​ China​ 56.26%​ 781mn​ SouthAfrica​ 56.07%​ 31mn​ India​ 33.02%​ 443mn​ Indonesia​ 28.69%​ 75.6mn​
Europe has the highest E2GDP of all the regions Europe 4.91% Source: Ecommerce Foundation, 2017. North America 2.21% South America 1.03% Asia Pacific 4.87% Middle East & Africa 0.74% EDGDP: REGIONAL1 Ecommerce share of GDP, USD, regionally, 2017(f) Overall 2.92%
The U.K. has the highest E2GDP 7.9% 5.8% 3.9% 2.9% 2.7% 2.5% 2.3% 1.9% 1.6% 1.6% 1.6% 1.5% 1.4% 1.3% 1.3% 1.3% 0.8% 0.8% 0.7% 0.7% 0.3% EDGDP:BYCOUNTRY1 Ecommerce share of GDP, $USD, by country, 2017(f)
Less than 6 months 6 months to 1 year 1 to 2 years 2 to 3 years 3Years or more 30% 27% 30% 26% 16% 13% 13% 18% 14% 16% 19% 20% 14% 14% 12% 12% 31%28% 26% 20% Europe North America South America Asia Pacific Over 50% of consumers purchased via mobile device 1+ years ago CONSUMER BEHAVIOR: MOBILE PURCHASE1 Consumers’ first purchase via smartphone/tablet; by region, 2016 Country 1 year agoor longer Europe 57% North America 57% South America 52% Asia Pacific 61% Country Average 57% CONSUMER BEHAVIOR: MOBILE PURCHASE1 Consumers’ first purchase via smartphone/tablet, by region, 2016
Daily 122times a week 223time a month Once a month 5211times a year 224times a year Once a year or less 7% 7% 4% 10% 11% 15% 14% 21% 18% 25% 26% 25%24% 20% 20% 10% 16% 11% 11% 12% 10% 10% 11% 22% 8% 11% 11% 11% Europe North America South America Asia Pacific Total% Weekly or More 31% 22% 21% 15% Europe North America South America Asia Pacific Nearly 25% of consumers purchase weekly via mobile device CONSUMER BEHAVIOR: MOBILE PURCHASE FREQUENCY1 Frequency of mobile purchases; by region, 2016
15% 13% 17% 17% 41% 43% 47% 47% 40% 39% 34% 30% Europe North America South America Asia Pacific Extremely Satisfied Somewhat Satisfied Neither satisfied nor unsatisfied Majority of global consumers are satisfied with mobile purchases CONSUMER OPINION: MOBILE PURCHASE SATISFACTION1 Consumer satisfaction levels with mobile purchases;by region, 2016
89% 87% 85% 85% 84% 84% 81% 80% 80% 79% 79% 79% 78% 78% 77% 75% 75% 73% 73% UK and Canadian consumers are most satisfied with mobile purchase CONSUMER OPINION: MOBILE PURCHASE SATISFACTION1 Share of online purchasers who are satisfied with their mobile purchase; by country, 2016
50% 54% 48% 46% 35% 35% 34% 30% 31% 30%30% 32% 25% 20% 28% 28% 21% 25% 25% 19% 14% 15% 18% 23% Europe North America South America Asia Pacific A retailer's website or app An aggregator website or app An auction website or app A social media website or app A Brand specific website or app A messaging app Retailer websites/apps top mobile purchases CONSUMER BEHAVIOR: MOBILE WEBSITES/APPS1 Types of websites/apps used by consumers to purchase online with mobile device; by region, 2016
39% 42% 46% 43% 34% 44% 39% 38%39% 38%37% 34% 32% 33% 35% 28% 27% 25% 33% Europe North America South America Asia Pacific Fashion (clothing, shows, accessories, etc.) Tickets (events, movies, concerts, attractions, etc.) Toys and Games Digital entertainment products (stream/download music, films, audio books etc.) Fashion is the leading category globally for mobile purchasing CONSUMER BEHAVIOR: MOBILE PURCHASE CATEGORIES1 Share of consumers making mobile purchases, by category; by region, 2016 Smartphone/table game or app 50%
23% 27% 27% 29% 30% 30% 32% 33% 36% 42% 44% Chile France Canada US Brazil Japan Mexico Australia UK China Turkey Bank credit cards are most used payment method globally Turkey leads in monthly online payments MONTHLY ONLINE PAYMENTS1 Share of population making online payments, monthly; by country, 2016
24% 20% 19% 17% 16% 14% 13% 10% 9% 7% China UK Japan Australia US Canada France Brazil Mexico Chile Turkey China utilizes the mobile wallet payment method the most CONSUMER BEHAVIOR: MOBILE WALLET PAYMENT1 Share of population using mobile wallet as payment method; by country, 2016 47%
Apple 801 Google/Alphabet 680 Amazon.com 476 Facebook 441 Tencent 335 Alibaba 314 Priceline.com 92 Netflix 70 Uber 70 Baidu 66 TOP INTERNET COMPANIES1 Market value of the top internet companies worldwide, billions of USD, May 2017 Apple is the highest market value internet company
Amazon 107.0 Alibaba 12.3 eBay 8.6 Rakuten 6.3 Zalando 3.3 Groupon 3.1 flipkart 1.5 ASOS.com 1.4 LARGEST ECOMMERCE COMPANIES1 Largest ecommerce companies (inventory, revenue generated, number of employees), billions of USD, 2015 Amazon is the largest ecommerce company worldwide
29% 27% 26% 29% 34% 21% 15% 27% 25% 17% 23% 26% 18% 24% 24% 17% 17% 18% 13% 16% 11% 15% 12% 9% 9% Asia Pacific North America Europe South America Middle East& Africa BrandPrice/promotions Online reviews Product features Other CONSUMER BEHAVIOR: PURCHASE DECISIONS1 Percentage of factors driving purchase decisions, by region, 2017 Price/promotions drive most purchase decisions globally 27% 23% 22% 17% 5% 4% Price/promotions Product features Brand Online reviews Newest trends or arrivals Peer influences/recommendations CONSUMER BEHAVIOR: PURCHASE DECISIONS2 Percentage of factors driving purchase decisions, 2017
39% 38% 29% 27% 28% 23% 18% 30% 26% 24% 22% 19% 16% 29% 27% 30% 26% 32% 31% 26% 21% 23% 21% 17% Europe North America South America Asia Pacific Clicked on the ad to find out more information Clicked on the ad to visit the advertiser's website Checked out the product or service at another time Visited the advertiser's website another time Clicked on the ad to purchase the product/service Shared the ad with others Majority of consumers click on ads to find out more informationCONSUMER BEHAVIOR: ADVERTISEMENT CONVERSION1 Share of consumers influenced by advertisements; by region, 2016
Online search for reviews and recommendations 55% Visited the company website 47% Visited physical stores to see, try or fit the product 26% Spoke with my friends or family about it 23% CONSUMER BEHAVIOR: RESEARCH METHODS1 Share of different research methods used by consumers before purchasing online, 2017 Majority of consumers search online for reviews/recommendations
2% 1% 6% 28% 6% 6% %13 17% 26% 23% 25% 25% 19% 18% 10% 10% 6% 29% 9% 10% 12% %16 40% 24% 38% 29% 40% 62% 63% South America Middle East & Africa Europe North America Asia Pacific WeChat WhatsApp Instagram Blogs Twitter Facebook CONSUMER BEHAVIOR: FEEDBACK & SOCIAL MEDIA1 Most popular websites used by consumers for feedback, by region, 2017 Facebook is the most popular social media platform for feedback
Penetration:Online shopping penetration by country illustrates what percentage of the population has purchased goods or services online.
Forecasted compound annual growth rate from 2018 to 2022 (statista.com) COMPOUND ANNUAL GROWTH RATE: THE COMPOUND ANNUAL GROWTH RATE FOR ECOMMERCE SALES BY COUNTRY INDICATES ONLINE PURCHASING MOMENTUM. ​
Country comparisons The Central Intelligence Agency (CIA) has compiled key data in its World Factbook so you can compare countries side by side. This tool offers an inside look at infrastructure, consumption, and demographic profile, with information like: •Population groups segmented by ethnicity, language, and religion •Demographic pyramids, household income and consumption, and urbanization rates •Mobile phone users, internet and broadband availability, and ranking •Statistics like these can determine the total market and inform your decisions about warehouse or inventory locations, as well as localized online stores. Ecommerce revenue per user (in USD) and number of users in 2018 (statista.com)
Ease of doing business The relative difficulty of operating in foreign regions or countries is known as the ease of doing business. Use the World Bank’s Doing Business report to supplement your country-by- country assessments, with considerations like infrastructure, internet speed, and bureaucracy. Ease-of-doing-business ranking in 2018 based on the distance to frontier (DTF;World Bank)
How to test new regions quickly, easily, and nearly risk-free
The top mistake your business can make with global expansion is investing significantly up front before validating that your brand resonates with target consumers. Initially, you need to test, learn, and iterate. Before launching a localized online store, consider experimenting with a marketplace that serves your target region or country. A total of 60% of global online sales takes place on marketplaces. Marketplaces are great for experimentation if you lack brand awareness. Brand- agnostic shoppers, those who know what but not who they want, tend to use online marketplaces.16 These shoppers value the comparison shopping and convenience that marketplaces offer. Most popular online marketplaces worldwide in 2017 (statista.com)
▪ Using technology solutions from multiple vendors can offer out-of-the- box flexibility, agility, and customization. All of these empower you to scale your global operations more cheaply and quickly than with some ERP implementations. •Multi-store management • Ecommerce platforms designed to help you scale globally make it easy to create expansion stores to serve specific regions or countries. An expansion store operates independently in the areas of reporting, product inventory, accounting, and order management. It’s imperative for businesses with expansion stores to manage them in one place. Ecommerce software platforms worldwide in 2017 (statista.com)
Enterprises with international warehouses might consider using a warehouse management system to assist with managing inventory, picking, packing, and shipping. Mobile warehouse management systems give you real-time analytics in the palm of your hand and help warehouse pickers in two ways: • Batch picking: Pickers receive a list of items to pick on their mobile devices and can fulfill a single order with multiple items, multiple orders with the same item, or multiple orders with multiple SKUs (multiple batch picking). • Intelligent pick routes: The list sent to a picker’s mobile device is arranged to maximize efficiency and minimize the walking distance between inventory bins.
▪ Return deliveries are estimated to cost $550 billion USD by 2020 in the U.S., 75.2% more than in 2016.50 Ecommerce returns are growing even faster, up 94.8% in the past five years.51 Part of a best-in-class global customer experience ▪ hinges on your international return operations, or reverse logistics. ▪ Canadian consumers have long complained about the problems they have when returning international purchases. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)
• One of the top challenges chief marketing officers face is targeting content for international audiences. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)
• Be aware that channels that perform well in your home country might not be trusted, or even allowed, in your expansion countries. Although 38% of consumers in the U.S. say social media influences their shopping behavior, that number is almost double in China despite strict government censorship. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com) Internet users whose online shopping behavior is influenced by social media
•Even though Facebook is the leading social network in 152 of 167 countries,58 consider including competitors in your global campaigns. •Facebook Messenger is the most popular messaging app in the world,59 followed by WeChat and WhatsApp. WeChat is used heavily in China, where Facebook and Twitter are officially banned, although Facebook Messenger is widely used through consumer workarounds. •Though not always seen as a channel, online reviews are one of the fastest ways to gain traction and jump-start sales in a new market. Trustworthy reviews are one of the top five influences on shopping behavior.60 •Don’t make the same mistake nearly 25% of companies do.61 Instead of sending the same email to every country, localize your international email marketing with language, location, currency, and imagery. Take into account the time of year. A winter holiday hero image of a model bundled up in a heavy coat and scarf won’t be appropriate for southern-hemisphere consumers in the middle of summer. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Desktop search traffic originating from Google by country (Jun 2018; statista.com)
Supply-chain automation •There’s a correlation between businesses that expand internationally and supply- chain automation. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Top factors that increase spending in supply chains (statista.com)
Though most businesses use semi- automation72 for data-heavy processes,73 inventory management automation is a key growth driver for businesses scaling globally. Worldwide spending on robotic process automation is expected to top $3 billion USD by 2020.74 Although cost remains a top barrier to implementing robotic process automation,75 48% of businesses that use new technologies like automation expect it to reduce their workforce.76 Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Top factors that increase spending in supply chains (statista.com)
Level 5 automation, automation with no humans involved, needs the highest level of machine learning to replace human intelligence with artificial intelligence (AI). Businesses expanding globally expect to spend big dollars on AI-powered automation. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Top factors that increase spending in supply chains (statista.com)Total automation and artificial intelligence operations spent worldwide from 2016 to 2021 (statista.com)
Ecommerce automation With tools like ShopifyFlow, businesses create custom workflows to run automatically based on the triggers,conditions,and actions they select.Set-it-and- forget-itworkflows enable businessesto simplifytheir processes and free up staff to focus on more meaningful activities. Ecommerceautomation not only reduces cost and complexity,but also helps brands grow internationally. Automation tools empower enterprises to operate globally with fewer internal resources.And these tools expedite your international entry and growth by helping you: • Schedule changes to your online store for major events • Reverse those changes automatically • List new products on multiple channels • Tag and segmentcustomers forretention • Streamline tracking and reporting • Identifyand cancel high-risk orders • Send inventory alerts forreordering and Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Top factors that increase spending in supply chains (statista.com)Total automation and artificial intelligence operations spent worldwide from 2016 to 2021 (statista.com) Artificial intelligence use cases by category(2017;statista.com)
Automation is also preventing one of the biggest risks in international trade: fraud. Nearly 60% of businesses use a combination of ecommerce automation and AI to detect fraud. Detecting fraud is the first step. The real value of ecommerce automation is stopping fraud from happening right after it’s detected. Learn how the lifestyle brand Shelfies saves thousands of dollars using ecommerce automation to detect and prevent fraud in real time. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Top factors that increase spending in supply chains (statista.com)Total automation and artificial intelligence operations spent worldwide from 2016 to 2021 (statista.com) Artificial intelligence use cases by category(2017;statista.com)
Ecommerce Payment Solutions
52 Ecommerce Customers Merchant’sSecure Ecommerce Store Merchant’sBank PaymentGateway & PaymentProcessor Happy Merchant
53 Customer The cardholder initiates apurchase. Payment Gateway The paymentgatewayroutes information to theprocessor. Card Network The card network submits the authorization requestto the issuer. Card Network The card network forwards the authorizationresponse to the acquiring bank. Merchant The merchantaccepts the transaction. Merchant The merchant processes the credit card information and requests authorization. Processor The processor submits the authorization requestto the card network. Issuer The issuer approves the transaction. Acquirer The acquiring bank forwards the authorization response to themerchant. Customer The cardholder receives the purchased items orservices.
HTTPS://MAGENTICIANS.COM/TOP-PAYMENT- GATEWAY-FOR-ECOMMERCE/ ▪ Best Payment Gateways For Ecommerce Website ▪ Authorize.Net ▪ PayPal ▪ Stripe ▪ SecurePay ▪ Payline Data ▪ Amazon Payments
POS Landing
One of the biggest trends in fintech today is the rise of digital banking products like mobile checking accounts and new debit cards. From Square to Paypal, a host of fintechs are creating products that let consumers spend money directly out of digital accounts using a physical card. In particular, fintechs are targeting their young, engaged client bases, creating products that build on their core values. SoFi, for example, allows users to see all their assets and liabilities in one place, while Square uses vendor partnerships to offer credit card-like rewards for its debit card. This strategy makes sense, as younger clients are most open to trying new fintech products: about 60% of US bank customers say they are willing to try a financial product from a tech firm they already use, and that number rises to 73% for
How the products work These companies come from diverse fintech backgrounds — P2P money transfers, wealth management,lending — but all are rushing to create checking account alternatives within their pre- existing products.These new products are designed to track and monitor spend,and aim to convert monthly active users (MAUs) into daily active users (DAUs).
CREATIVE DESIGN CATCHES USERS’ EYES You might not expect to find the “instagrammability” trend surfacing in the world of debit cards, but fintech companies are hoping to draw millennials to physical cards with colorful, minimalist designs. Fintechs can distinguish their debit cards from traditional bank cards through clean layouts, customization, and heavier materials. Personalization in card design can help buoy customer loyalty and relationships. As chip readers become more ubiquitous, vertical layouts (as with Venmo, Acorns, and SoFi) are the logical card orientation of the future, and also give cards a distinctive look.
How People Pay Around The World And What It Means For The Future Of Payments
Digital lenders offer consumers faster, more transparent financing, and these online players now aim to conquer the offline market. The emergence of new financing options at the moment of purchase is transforming consumer finance. Will these new options see payment service providers further disintermediate traditional banks from their heritage short-term consumer-financing business? Not long ago, the only financing options available to a consumer at point of sale (POS) were credit cards, overdrafts or bank loans. While the first two options are quick and easy, consumers paid the price for convenience in higher credit terms. And while bank loans offered better terms, the paperwork and time involved were big deterrents. But consumer credit is undergoing radical changes. Technology and abundant data indicate merchants and financial institutions can now offer loans at the moment of purchase, either online or in stores. FinTechs are front-runners in the POS lending trend, where buyers make a direct agreement with the merchant for partial payment, meaning the loan is not subject to the anti-money laundering laws of banks (and does not require additional legitimation). These FinTechs are putting banks and other traditional consumer financing businesses under pressure. For consumers, it’s easy to see the appeal of POS financing. It’s instantaneous and digital and can offer greater transparency on the total cost of the purchase. And this alternative form of financing liberates customers from mainstream credit options. For merchants, the key selling proposition of POS lending is — not surprisingly — fewer abandoned online shopping carts and higher sales. This new form of consumer financing potentially increases conversion rates by offering consumers intuitive, seamless and error-free loan processes and delivers high approval rates for loan applicants. After already being successful in the online world, POS lenders are increasingly aiming to conquer the offline world by repli cating the online lending experience at the real-world checkout. This is being done through means such as direct integration into POS terminals and through mobile apps that can generate a one-time-use virtual credit card number for universal acceptance. Point-of-sale lending is an instant and convenient credit-granting process for consumers that is seamlessly embedded in the checkout process. Merchants benefit from potentially higher conversion rates. Young borrowers put technology first and expect transparency POS lending and the digital transformation of consumer financing meet the changing expectations and habits of young borrowers. Millennials and their successors in Generation Z are digital natives with smartphones, their devices of choice. Rather than talking to a specialist when taking out a loan, they prefer digital self-service tools that allow them to make an informed decision best suited to their needs. These buyers have high expectations around digital offerings that have been shaped by leading digital and technology players. POS lenders have understood this from the beginning, and one of their hallmarks is their ability to provide a superior user experience. The rationale is easy to follow since one of the key metrics, conversion rate, is ultimately driven by a frictionless credit-granting process.
The US card payment system involves a series of middlemen taking a cut. Digital systems, like those used in China and Kenya, could threaten banks and other players. Payments systems vary across the globe, from cash-based economies to those driven by credit. The way consumers pay in the US, for example, might seem obsolete to consumers in other countries. In Kenya, anyone with a mobile phone — smartphone or not — can use M-Pesa to send money, pay for things, and access credit. The service is used by almost all adults in the country. More importantly, users don’t need a credit card, bank account, credit history, or minimum balance to open an M-Pesa account. Instead, they provide cash to any one of thousands of independent cashiers to top up their mobile wallets. This effectively circumvents Kenya’s limited banking infrastructure — a boon for financial inclusion and commerce. In contrast, mobile payments in the US have yet to catch on. This isn’t due to a lack of mobile devices (according to the World Bank, the US had 123 mobile cell subscriptions per 100 people in 2016), nor is it due to a lack of offerings — a study in the same year found that 88% of US consumers were aware of Google Pay, but only 14% had tried it. Rather, banks and payments providers have established a system that’s worked — and is still working. Consumers like credit card perks, merchants have bought in, and banks and payments players are happy to provide the infrastructure in exchange for a piece of the pie.
UNDERSTANDING THE CREDIT AND DEBIT CARD VALUE CHAIN In the United States, 93% of consumers have some sort of bank account. Virtually all US private sector wage earners receive wages into bank accounts, according to the Global Findex database, which are insured by the FDIC and offer an easy way to earn interest. Users of the traditional financial system can also build credit and access credit instruments, like credit cards. Banks are happy to offer credit cards to their customers — they’re highly profitable, and consumers like their convenience, among other benefits. The credit card system involves a number of different parties that allow consumers to pay using a line of credit. Banks, payment gateways, payment processors, and card networks (among others) establish a web of trust between customers and merchants. For their services, these middlemen charge fees. In the scenario below, five middlemen — the issuing bank, payment gateway (or point-of-sale terminal provider), payment processor, card network, and acquiring bank — establish trust and take a cut.
From Point-Of-Sale To Money Transfers: 109 Startups Disrupting The Payments Industry
From point-of-sale solutions to money transfers, payments makes up one of the largest categories within the larger fin tech industry. Payments startups have been seeing considerable momentum, and are on track for $3.8B in funding this year. From point-of-sale solutions to money transfers and mobile payments, these startups are changing how electronic payments are made, accepted, and processed. We used CB Insights data to identify 109 private companies in payments and mapped them according to the nine main categories where they’re operating. The 109 payments startups included are addressing general payments needs as well as a range of payments market niches, including bitcoin-powered payments, mobile commerce, and specialized consumer-focused payment markets like child support or in-restaurant payments.
The breakdown is as follows: Online payment services: Startups including Stripe and WePay that help businesses move their payments- processing online and make it more available, secure, and inexpensive. Billing automation and streamlining: Zuora and Paymentus, among others, streamline invoicing and automate financial processes and billing. Point-of-sale payments: iZettle, Revel Systems and others offer point-of-sale products and services, including card readers, stands, and digital storefronts. These startups compete with now-public Square in some segments, although Square has put more of an emphasis on small business lending and financial services more recently. Personal payment services: Companies like MobiKwik and Affirm focus on providing consumers with more convenient payment platforms. Some of these companies focus on particular consumer niches. Bitcoin payments: Companies like Coinbase and BitPay that use digital currency to make payments faster and more secure. E-commerce payments: Klarna and other startups focus on the e-commerce market with payments solutions geared to the challenges seen by online merchants. Klarna, for example, extends instant credit for online purchases to consumers without them having to provide payment details, easing the friction involved in completing an online transaction. Connected card payments: Companies like Coin and Stratos are betting that all-in-one connected credit cards will be a key link in the payments value chain. Money transfer services: TransferWise and Remitly provide digital solutions for sending money across borders quickly and cheaply.
Square facilitates transactions between buyers and sellers with its free credit card reader for the iPhone, iPad, and Android devices, allowing anyone to accept credit cards anywhere. Square Register serves as a full point-of-sale system for businesses to accept payments, track inventory, and share menu and location information. Pay with Square is a seamless way to pay, enabling individuals to pay with their names at local merchants, discover nearby businesses, explore menu listings, and store receipts.
Web Traffic
Twitter @Square 247.96k followers
Cash Flow Statement 12/31/2018 12/31/2017 12/31/2016 Net Income (Starting Line) (38.45) (62.81) (171.59) Depreciation 60.96 37.28 37.74 Deferred Taxes & Investment Tax Credit (0.65) (1.38) 0.06 Other Funds (Non Cash) 319.07 237.28 189.97 Funds from Operations 340.94 210.36 56.19 Extraordinary Item - - - Changes in Working Capital (45.86) (82.64) (33.05) Net Operating Cash Flow 295.08 127.71 23.13 Capital Expenditures (62.79) (26.1) (25.83) Net Assets From Acquisitions (112.4) (1.91) (1.36) Sale of Fixed Assets and Businesses - - 0.3 Purchase or Sale of Investments (730.66) (312.6) (87.34) Other Uses - - - Other Sources - - - Net Investing Cash Flow (905.85) (340.61) (114.24) Cash Dividends Paid - - - Change in Capital Stock 245.98 219.75 90.91 Issuance or Reduction of Debt, Net 459.75 334.68 (0.17) Net Financing Active Other Cash Flow (189.97) (99.49) - Net Financing Cash Flow 515.76 454.93 90.74 Exchange Rate Effect (7.22) 4.3 (0.44) Miscellaneous Funds - - - Net Change in Cash (102.23) 246.34 (0.81) Free Cash Flow 233.88 101.61 (2.3)
79 Ecommercenews.eu Statista Eshopworld ey.com cbinsights.com

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Ecommerce-POS Landing

  • 1.
  • 2.
    Content Ecommerce Industry Outline Emerging Ecommerce IndustryTrends Ecommerce Sales Projections Worldwide Ecommerce Key Growth Drivers Ecommerce Environment Ecommerce Business Model Ecommerce Challenges Ecommerce Marketing Solutions Ecommerce Features Ecommerce Participants 2
  • 3.
    Ecommerce Industry European Union Ecommercein Europe has once again shown some double-digit growth. The total ecommerce turnover in Europe increased by 11 percent last year, making it worth 534 billion euros. China Total Chinese eCommerce revenue across all product categories is 584 billion USD, and is expected to grow to 917.7 billion USD by 2022. Japan 89.55 billion US dollars and are projected to grow to 122.46 billion US dollars in 2018. Asian Total ecommerce revenue across all product categories is 617 billion USD, expected to surpass 1 trillion USD by 2021. . United States In 2018, online sales of physical goods amounted to 504.6 billion US dollars and are projected to surpass 735 billion US dollars in 2023. $504.6 billion €534 billions $584 billion $617 billion $89.55 billion 3
  • 4.
    4500$ bln Cross BorderRetailE CommerceSales Worldwide(2021F) 4$ bln CapitalizationofRetail. Global (2021F) 650$ bln RetailE-commerceSales Worldwide(2021F) Ecommerce Sales Projections Worldwide 4
  • 5.
    Emerging Ecommerce IndustryTrends Lower Operational Costs • Decreased real estate costs; investment funds as far as rentals, energy costs, worker costs and so forth. • Reduced stock expenses with shift from inventory- led models is to commercial center models. Increasing Internet Penetration • Web entrance, rising broadband speedsfacilitating development. • Mobile data clients in country is required to build four times to achieve 1200 million by 2018. Wider Customer Reach • Web interface making it easier to connect with non metro areas. • Driving e commerce players asserting 50% to 60% of incomes from T2/T3 areas. Rise in Demand for Global Product • Clients in developing markets hoping to purchase established international brands. • Increase in worldwide transportation adding to cross border e-commerce growth. 5
  • 6.
  • 7.
  • 8.
    Ecommerce Business Model 9 Clients ClientsPlace Orders Vendors Shipping Magento Marketplace Vendors Receive Orders
  • 9.
    Ecommerce Participants 9 B2B B2C B2G Businesstobusiness • PayPal (and B2C, “ B2B2C”) • Optize (and B2C) • Alibabagroup Businessto consumer • Amazon • Freshdirect • Zynga (and C2C) Businessto government “E - Procurement” C2B C2C C2G Consumersto business • Zonzoo • Fotolia • Google Adsense Consumersto customer • Prosper (“P2P”) • EBay • Facebook Citizen to government Agencia Tributaries(Tax AgencyOnline) G2B G2C G2G Governmentto business“E- Government” • AEPM • Certificado digital Governmentto citizen “E- Government” • EDNI • Usa.gov(also G2B) Governmentto government • Government Gateway • Schengen Information System
  • 10.
    Ecommerce Features 10 Ubiquity Global Reach Universal, Standards Social,TechnologyPersonalization, Customization Information, Destiny Interactivity Richness E-COMMERCE
  • 11.
    Ecommerce Marketing Solutions 11 SocialMediaMarketing Web Design&Development Paid Search Optimization Affiliate Marketing Mobile CommerceGoogle Shopping& Amazon DataFeeds Conversion Rate Optimization EmailMarketing SEO & ContentMarketing Ecommerce Marketing Solutions
  • 12.
    Ecommerce Challenges 12 Poor Knowledge and Awareness Tax Security Logisticsand Shipment Services Online Security Online Transaction Touch and Feel” Factors Fear Factor Cash on Delivery E-Commerce Challenges
  • 13.
  • 14.
    Internet Penetration INTERNET PENETRATION:TOP 10 COUNTRIES* INTERNET PENETRATION: LOWEST 5 COUNTRIES* Countries​ Share of popu lation using i nternet​ Online populati on​ United Kingd om​ 97.52%​ 63mn​ South Korea​ 95.21%​ 48.3mn​ Japan​ 92.69%​ 116.83mn​ Australia​ 92.44%​ 22.8mn​ Germany​ 91.76%​ 74mn​ Canada​ 91.41%​ 33.5mn​ France​ 86.55%​ 56mn​ Spain​ 82.32%​ 38mn​ Russia​ 79.44%​ 114mn​ Israel​ 79.17%​ 6.6mn​ Countries​ Share of popul ationusing inte rnet​ Onlinepopulatio n​ Brazil​ 61.02%​ 129mn​ China​ 56.26%​ 781mn​ SouthAfrica​ 56.07%​ 31mn​ India​ 33.02%​ 443mn​ Indonesia​ 28.69%​ 75.6mn​
  • 15.
    Europe has thehighest E2GDP of all the regions Europe 4.91% Source: Ecommerce Foundation, 2017. North America 2.21% South America 1.03% Asia Pacific 4.87% Middle East & Africa 0.74% EDGDP: REGIONAL1 Ecommerce share of GDP, USD, regionally, 2017(f) Overall 2.92%
  • 16.
    The U.K. hasthe highest E2GDP 7.9% 5.8% 3.9% 2.9% 2.7% 2.5% 2.3% 1.9% 1.6% 1.6% 1.6% 1.5% 1.4% 1.3% 1.3% 1.3% 0.8% 0.8% 0.7% 0.7% 0.3% EDGDP:BYCOUNTRY1 Ecommerce share of GDP, $USD, by country, 2017(f)
  • 17.
    Less than 6 months 6months to 1 year 1 to 2 years 2 to 3 years 3Years or more 30% 27% 30% 26% 16% 13% 13% 18% 14% 16% 19% 20% 14% 14% 12% 12% 31%28% 26% 20% Europe North America South America Asia Pacific Over 50% of consumers purchased via mobile device 1+ years ago CONSUMER BEHAVIOR: MOBILE PURCHASE1 Consumers’ first purchase via smartphone/tablet; by region, 2016 Country 1 year agoor longer Europe 57% North America 57% South America 52% Asia Pacific 61% Country Average 57% CONSUMER BEHAVIOR: MOBILE PURCHASE1 Consumers’ first purchase via smartphone/tablet, by region, 2016
  • 18.
    Daily 122times a week 223timea month Once a month 5211times a year 224times a year Once a year or less 7% 7% 4% 10% 11% 15% 14% 21% 18% 25% 26% 25%24% 20% 20% 10% 16% 11% 11% 12% 10% 10% 11% 22% 8% 11% 11% 11% Europe North America South America Asia Pacific Total% Weekly or More 31% 22% 21% 15% Europe North America South America Asia Pacific Nearly 25% of consumers purchase weekly via mobile device CONSUMER BEHAVIOR: MOBILE PURCHASE FREQUENCY1 Frequency of mobile purchases; by region, 2016
  • 19.
    15% 13% 17%17% 41% 43% 47% 47% 40% 39% 34% 30% Europe North America South America Asia Pacific Extremely Satisfied Somewhat Satisfied Neither satisfied nor unsatisfied Majority of global consumers are satisfied with mobile purchases CONSUMER OPINION: MOBILE PURCHASE SATISFACTION1 Consumer satisfaction levels with mobile purchases;by region, 2016
  • 20.
    89% 87% 85%85% 84% 84% 81% 80% 80% 79% 79% 79% 78% 78% 77% 75% 75% 73% 73% UK and Canadian consumers are most satisfied with mobile purchase CONSUMER OPINION: MOBILE PURCHASE SATISFACTION1 Share of online purchasers who are satisfied with their mobile purchase; by country, 2016
  • 21.
    50% 54% 48% 46% 35% 35% 34% 30%31% 30%30% 32% 25% 20% 28% 28% 21% 25% 25% 19% 14% 15% 18% 23% Europe North America South America Asia Pacific A retailer's website or app An aggregator website or app An auction website or app A social media website or app A Brand specific website or app A messaging app Retailer websites/apps top mobile purchases CONSUMER BEHAVIOR: MOBILE WEBSITES/APPS1 Types of websites/apps used by consumers to purchase online with mobile device; by region, 2016
  • 22.
    39% 42% 46% 43% 34% 44% 39% 38%39% 38%37% 34% 32%33% 35% 28% 27% 25% 33% Europe North America South America Asia Pacific Fashion (clothing, shows, accessories, etc.) Tickets (events, movies, concerts, attractions, etc.) Toys and Games Digital entertainment products (stream/download music, films, audio books etc.) Fashion is the leading category globally for mobile purchasing CONSUMER BEHAVIOR: MOBILE PURCHASE CATEGORIES1 Share of consumers making mobile purchases, by category; by region, 2016 Smartphone/table game or app 50%
  • 23.
    23% 27% 27% 29% 30%30% 32% 33% 36% 42% 44% Chile France Canada US Brazil Japan Mexico Australia UK China Turkey Bank credit cards are most used payment method globally Turkey leads in monthly online payments MONTHLY ONLINE PAYMENTS1 Share of population making online payments, monthly; by country, 2016
  • 24.
    24% 20% 19% 17% 16% 14%13% 10% 9% 7% China UK Japan Australia US Canada France Brazil Mexico Chile Turkey China utilizes the mobile wallet payment method the most CONSUMER BEHAVIOR: MOBILE WALLET PAYMENT1 Share of population using mobile wallet as payment method; by country, 2016 47%
  • 25.
    Apple 801 Google/Alphabet 680 Amazon.com476 Facebook 441 Tencent 335 Alibaba 314 Priceline.com 92 Netflix 70 Uber 70 Baidu 66 TOP INTERNET COMPANIES1 Market value of the top internet companies worldwide, billions of USD, May 2017 Apple is the highest market value internet company
  • 26.
    Amazon 107.0 Alibaba 12.3 eBay8.6 Rakuten 6.3 Zalando 3.3 Groupon 3.1 flipkart 1.5 ASOS.com 1.4 LARGEST ECOMMERCE COMPANIES1 Largest ecommerce companies (inventory, revenue generated, number of employees), billions of USD, 2015 Amazon is the largest ecommerce company worldwide
  • 27.
    29% 27% 26%29% 34% 21% 15% 27% 25% 17% 23% 26% 18% 24% 24% 17% 17% 18% 13% 16% 11% 15% 12% 9% 9% Asia Pacific North America Europe South America Middle East& Africa BrandPrice/promotions Online reviews Product features Other CONSUMER BEHAVIOR: PURCHASE DECISIONS1 Percentage of factors driving purchase decisions, by region, 2017 Price/promotions drive most purchase decisions globally 27% 23% 22% 17% 5% 4% Price/promotions Product features Brand Online reviews Newest trends or arrivals Peer influences/recommendations CONSUMER BEHAVIOR: PURCHASE DECISIONS2 Percentage of factors driving purchase decisions, 2017
  • 28.
    39% 38% 29% 27% 28% 23% 18% 30% 26% 24% 22% 19% 16% 29% 27% 30% 26% 32%31% 26% 21% 23% 21% 17% Europe North America South America Asia Pacific Clicked on the ad to find out more information Clicked on the ad to visit the advertiser's website Checked out the product or service at another time Visited the advertiser's website another time Clicked on the ad to purchase the product/service Shared the ad with others Majority of consumers click on ads to find out more informationCONSUMER BEHAVIOR: ADVERTISEMENT CONVERSION1 Share of consumers influenced by advertisements; by region, 2016
  • 29.
    Online search forreviews and recommendations 55% Visited the company website 47% Visited physical stores to see, try or fit the product 26% Spoke with my friends or family about it 23% CONSUMER BEHAVIOR: RESEARCH METHODS1 Share of different research methods used by consumers before purchasing online, 2017 Majority of consumers search online for reviews/recommendations
  • 30.
    2% 1% 6% 28% 6% 6% %13 17% 26% 23% 25%25% 19% 18% 10% 10% 6% 29% 9% 10% 12% %16 40% 24% 38% 29% 40% 62% 63% South America Middle East & Africa Europe North America Asia Pacific WeChat WhatsApp Instagram Blogs Twitter Facebook CONSUMER BEHAVIOR: FEEDBACK & SOCIAL MEDIA1 Most popular websites used by consumers for feedback, by region, 2017 Facebook is the most popular social media platform for feedback
  • 31.
    Penetration:Online shopping penetrationby country illustrates what percentage of the population has purchased goods or services online.
  • 32.
    Forecasted compound annualgrowth rate from 2018 to 2022 (statista.com) COMPOUND ANNUAL GROWTH RATE: THE COMPOUND ANNUAL GROWTH RATE FOR ECOMMERCE SALES BY COUNTRY INDICATES ONLINE PURCHASING MOMENTUM. ​
  • 34.
    Country comparisons The CentralIntelligence Agency (CIA) has compiled key data in its World Factbook so you can compare countries side by side. This tool offers an inside look at infrastructure, consumption, and demographic profile, with information like: •Population groups segmented by ethnicity, language, and religion •Demographic pyramids, household income and consumption, and urbanization rates •Mobile phone users, internet and broadband availability, and ranking •Statistics like these can determine the total market and inform your decisions about warehouse or inventory locations, as well as localized online stores. Ecommerce revenue per user (in USD) and number of users in 2018 (statista.com)
  • 36.
    Ease of doingbusiness The relative difficulty of operating in foreign regions or countries is known as the ease of doing business. Use the World Bank’s Doing Business report to supplement your country-by- country assessments, with considerations like infrastructure, internet speed, and bureaucracy. Ease-of-doing-business ranking in 2018 based on the distance to frontier (DTF;World Bank)
  • 38.
    How to testnew regions quickly, easily, and nearly risk-free
  • 39.
    The top mistakeyour business can make with global expansion is investing significantly up front before validating that your brand resonates with target consumers. Initially, you need to test, learn, and iterate. Before launching a localized online store, consider experimenting with a marketplace that serves your target region or country. A total of 60% of global online sales takes place on marketplaces. Marketplaces are great for experimentation if you lack brand awareness. Brand- agnostic shoppers, those who know what but not who they want, tend to use online marketplaces.16 These shoppers value the comparison shopping and convenience that marketplaces offer. Most popular online marketplaces worldwide in 2017 (statista.com)
  • 40.
    ▪ Using technologysolutions from multiple vendors can offer out-of-the- box flexibility, agility, and customization. All of these empower you to scale your global operations more cheaply and quickly than with some ERP implementations. •Multi-store management • Ecommerce platforms designed to help you scale globally make it easy to create expansion stores to serve specific regions or countries. An expansion store operates independently in the areas of reporting, product inventory, accounting, and order management. It’s imperative for businesses with expansion stores to manage them in one place. Ecommerce software platforms worldwide in 2017 (statista.com)
  • 41.
    Enterprises with internationalwarehouses might consider using a warehouse management system to assist with managing inventory, picking, packing, and shipping. Mobile warehouse management systems give you real-time analytics in the palm of your hand and help warehouse pickers in two ways: • Batch picking: Pickers receive a list of items to pick on their mobile devices and can fulfill a single order with multiple items, multiple orders with the same item, or multiple orders with multiple SKUs (multiple batch picking). • Intelligent pick routes: The list sent to a picker’s mobile device is arranged to maximize efficiency and minimize the walking distance between inventory bins.
  • 42.
    ▪ Return deliveriesare estimated to cost $550 billion USD by 2020 in the U.S., 75.2% more than in 2016.50 Ecommerce returns are growing even faster, up 94.8% in the past five years.51 Part of a best-in-class global customer experience ▪ hinges on your international return operations, or reverse logistics. ▪ Canadian consumers have long complained about the problems they have when returning international purchases. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)
  • 43.
    • One ofthe top challenges chief marketing officers face is targeting content for international audiences. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)
  • 44.
    • Be awarethat channels that perform well in your home country might not be trusted, or even allowed, in your expansion countries. Although 38% of consumers in the U.S. say social media influences their shopping behavior, that number is almost double in China despite strict government censorship. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com) Internet users whose online shopping behavior is influenced by social media
  • 45.
    •Even though Facebookis the leading social network in 152 of 167 countries,58 consider including competitors in your global campaigns. •Facebook Messenger is the most popular messaging app in the world,59 followed by WeChat and WhatsApp. WeChat is used heavily in China, where Facebook and Twitter are officially banned, although Facebook Messenger is widely used through consumer workarounds. •Though not always seen as a channel, online reviews are one of the fastest ways to gain traction and jump-start sales in a new market. Trustworthy reviews are one of the top five influences on shopping behavior.60 •Don’t make the same mistake nearly 25% of companies do.61 Instead of sending the same email to every country, localize your international email marketing with language, location, currency, and imagery. Take into account the time of year. A winter holiday hero image of a model bundled up in a heavy coat and scarf won’t be appropriate for southern-hemisphere consumers in the middle of summer. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Desktop search traffic originating from Google by country (Jun 2018; statista.com)
  • 46.
    Supply-chain automation •There’s acorrelation between businesses that expand internationally and supply- chain automation. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Top factors that increase spending in supply chains (statista.com)
  • 47.
    Though most businessesuse semi- automation72 for data-heavy processes,73 inventory management automation is a key growth driver for businesses scaling globally. Worldwide spending on robotic process automation is expected to top $3 billion USD by 2020.74 Although cost remains a top barrier to implementing robotic process automation,75 48% of businesses that use new technologies like automation expect it to reduce their workforce.76 Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Top factors that increase spending in supply chains (statista.com)
  • 48.
    Level 5 automation,automation with no humans involved, needs the highest level of machine learning to replace human intelligence with artificial intelligence (AI). Businesses expanding globally expect to spend big dollars on AI-powered automation. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Top factors that increase spending in supply chains (statista.com)Total automation and artificial intelligence operations spent worldwide from 2016 to 2021 (statista.com)
  • 49.
    Ecommerce automation With toolslike ShopifyFlow, businesses create custom workflows to run automatically based on the triggers,conditions,and actions they select.Set-it-and- forget-itworkflows enable businessesto simplifytheir processes and free up staff to focus on more meaningful activities. Ecommerceautomation not only reduces cost and complexity,but also helps brands grow internationally. Automation tools empower enterprises to operate globally with fewer internal resources.And these tools expedite your international entry and growth by helping you: • Schedule changes to your online store for major events • Reverse those changes automatically • List new products on multiple channels • Tag and segmentcustomers forretention • Streamline tracking and reporting • Identifyand cancel high-risk orders • Send inventory alerts forreordering and Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Top factors that increase spending in supply chains (statista.com)Total automation and artificial intelligence operations spent worldwide from 2016 to 2021 (statista.com) Artificial intelligence use cases by category(2017;statista.com)
  • 50.
    Automation is alsopreventing one of the biggest risks in international trade: fraud. Nearly 60% of businesses use a combination of ecommerce automation and AI to detect fraud. Detecting fraud is the first step. The real value of ecommerce automation is stopping fraud from happening right after it’s detected. Learn how the lifestyle brand Shelfies saves thousands of dollars using ecommerce automation to detect and prevent fraud in real time. Issues Canadian shoppersface when returning online purchases (Apr 2013;statista.com)Top factors that increase spending in supply chains (statista.com)Total automation and artificial intelligence operations spent worldwide from 2016 to 2021 (statista.com) Artificial intelligence use cases by category(2017;statista.com)
  • 51.
  • 52.
  • 53.
    53 Customer The cardholder initiates apurchase. PaymentGateway The paymentgatewayroutes information to theprocessor. Card Network The card network submits the authorization requestto the issuer. Card Network The card network forwards the authorizationresponse to the acquiring bank. Merchant The merchantaccepts the transaction. Merchant The merchant processes the credit card information and requests authorization. Processor The processor submits the authorization requestto the card network. Issuer The issuer approves the transaction. Acquirer The acquiring bank forwards the authorization response to themerchant. Customer The cardholder receives the purchased items orservices.
  • 54.
    HTTPS://MAGENTICIANS.COM/TOP-PAYMENT- GATEWAY-FOR-ECOMMERCE/ ▪ Best PaymentGateways For Ecommerce Website ▪ Authorize.Net ▪ PayPal ▪ Stripe ▪ SecurePay ▪ Payline Data ▪ Amazon Payments
  • 55.
  • 56.
    One of thebiggest trends in fintech today is the rise of digital banking products like mobile checking accounts and new debit cards. From Square to Paypal, a host of fintechs are creating products that let consumers spend money directly out of digital accounts using a physical card. In particular, fintechs are targeting their young, engaged client bases, creating products that build on their core values. SoFi, for example, allows users to see all their assets and liabilities in one place, while Square uses vendor partnerships to offer credit card-like rewards for its debit card. This strategy makes sense, as younger clients are most open to trying new fintech products: about 60% of US bank customers say they are willing to try a financial product from a tech firm they already use, and that number rises to 73% for
  • 57.
    How the productswork These companies come from diverse fintech backgrounds — P2P money transfers, wealth management,lending — but all are rushing to create checking account alternatives within their pre- existing products.These new products are designed to track and monitor spend,and aim to convert monthly active users (MAUs) into daily active users (DAUs).
  • 58.
    CREATIVE DESIGN CATCHESUSERS’ EYES You might not expect to find the “instagrammability” trend surfacing in the world of debit cards, but fintech companies are hoping to draw millennials to physical cards with colorful, minimalist designs. Fintechs can distinguish their debit cards from traditional bank cards through clean layouts, customization, and heavier materials. Personalization in card design can help buoy customer loyalty and relationships. As chip readers become more ubiquitous, vertical layouts (as with Venmo, Acorns, and SoFi) are the logical card orientation of the future, and also give cards a distinctive look.
  • 59.
    How People PayAround The World And What It Means For The Future Of Payments
  • 60.
    Digital lenders offerconsumers faster, more transparent financing, and these online players now aim to conquer the offline market. The emergence of new financing options at the moment of purchase is transforming consumer finance. Will these new options see payment service providers further disintermediate traditional banks from their heritage short-term consumer-financing business? Not long ago, the only financing options available to a consumer at point of sale (POS) were credit cards, overdrafts or bank loans. While the first two options are quick and easy, consumers paid the price for convenience in higher credit terms. And while bank loans offered better terms, the paperwork and time involved were big deterrents. But consumer credit is undergoing radical changes. Technology and abundant data indicate merchants and financial institutions can now offer loans at the moment of purchase, either online or in stores. FinTechs are front-runners in the POS lending trend, where buyers make a direct agreement with the merchant for partial payment, meaning the loan is not subject to the anti-money laundering laws of banks (and does not require additional legitimation). These FinTechs are putting banks and other traditional consumer financing businesses under pressure. For consumers, it’s easy to see the appeal of POS financing. It’s instantaneous and digital and can offer greater transparency on the total cost of the purchase. And this alternative form of financing liberates customers from mainstream credit options. For merchants, the key selling proposition of POS lending is — not surprisingly — fewer abandoned online shopping carts and higher sales. This new form of consumer financing potentially increases conversion rates by offering consumers intuitive, seamless and error-free loan processes and delivers high approval rates for loan applicants. After already being successful in the online world, POS lenders are increasingly aiming to conquer the offline world by repli cating the online lending experience at the real-world checkout. This is being done through means such as direct integration into POS terminals and through mobile apps that can generate a one-time-use virtual credit card number for universal acceptance. Point-of-sale lending is an instant and convenient credit-granting process for consumers that is seamlessly embedded in the checkout process. Merchants benefit from potentially higher conversion rates. Young borrowers put technology first and expect transparency POS lending and the digital transformation of consumer financing meet the changing expectations and habits of young borrowers. Millennials and their successors in Generation Z are digital natives with smartphones, their devices of choice. Rather than talking to a specialist when taking out a loan, they prefer digital self-service tools that allow them to make an informed decision best suited to their needs. These buyers have high expectations around digital offerings that have been shaped by leading digital and technology players. POS lenders have understood this from the beginning, and one of their hallmarks is their ability to provide a superior user experience. The rationale is easy to follow since one of the key metrics, conversion rate, is ultimately driven by a frictionless credit-granting process.
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    The US cardpayment system involves a series of middlemen taking a cut. Digital systems, like those used in China and Kenya, could threaten banks and other players. Payments systems vary across the globe, from cash-based economies to those driven by credit. The way consumers pay in the US, for example, might seem obsolete to consumers in other countries. In Kenya, anyone with a mobile phone — smartphone or not — can use M-Pesa to send money, pay for things, and access credit. The service is used by almost all adults in the country. More importantly, users don’t need a credit card, bank account, credit history, or minimum balance to open an M-Pesa account. Instead, they provide cash to any one of thousands of independent cashiers to top up their mobile wallets. This effectively circumvents Kenya’s limited banking infrastructure — a boon for financial inclusion and commerce. In contrast, mobile payments in the US have yet to catch on. This isn’t due to a lack of mobile devices (according to the World Bank, the US had 123 mobile cell subscriptions per 100 people in 2016), nor is it due to a lack of offerings — a study in the same year found that 88% of US consumers were aware of Google Pay, but only 14% had tried it. Rather, banks and payments providers have established a system that’s worked — and is still working. Consumers like credit card perks, merchants have bought in, and banks and payments players are happy to provide the infrastructure in exchange for a piece of the pie.
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    UNDERSTANDING THE CREDITAND DEBIT CARD VALUE CHAIN In the United States, 93% of consumers have some sort of bank account. Virtually all US private sector wage earners receive wages into bank accounts, according to the Global Findex database, which are insured by the FDIC and offer an easy way to earn interest. Users of the traditional financial system can also build credit and access credit instruments, like credit cards. Banks are happy to offer credit cards to their customers — they’re highly profitable, and consumers like their convenience, among other benefits. The credit card system involves a number of different parties that allow consumers to pay using a line of credit. Banks, payment gateways, payment processors, and card networks (among others) establish a web of trust between customers and merchants. For their services, these middlemen charge fees. In the scenario below, five middlemen — the issuing bank, payment gateway (or point-of-sale terminal provider), payment processor, card network, and acquiring bank — establish trust and take a cut.
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    From Point-Of-Sale ToMoney Transfers: 109 Startups Disrupting The Payments Industry
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    From point-of-sale solutionsto money transfers, payments makes up one of the largest categories within the larger fin tech industry. Payments startups have been seeing considerable momentum, and are on track for $3.8B in funding this year. From point-of-sale solutions to money transfers and mobile payments, these startups are changing how electronic payments are made, accepted, and processed. We used CB Insights data to identify 109 private companies in payments and mapped them according to the nine main categories where they’re operating. The 109 payments startups included are addressing general payments needs as well as a range of payments market niches, including bitcoin-powered payments, mobile commerce, and specialized consumer-focused payment markets like child support or in-restaurant payments.
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    The breakdown isas follows: Online payment services: Startups including Stripe and WePay that help businesses move their payments- processing online and make it more available, secure, and inexpensive. Billing automation and streamlining: Zuora and Paymentus, among others, streamline invoicing and automate financial processes and billing. Point-of-sale payments: iZettle, Revel Systems and others offer point-of-sale products and services, including card readers, stands, and digital storefronts. These startups compete with now-public Square in some segments, although Square has put more of an emphasis on small business lending and financial services more recently. Personal payment services: Companies like MobiKwik and Affirm focus on providing consumers with more convenient payment platforms. Some of these companies focus on particular consumer niches. Bitcoin payments: Companies like Coinbase and BitPay that use digital currency to make payments faster and more secure. E-commerce payments: Klarna and other startups focus on the e-commerce market with payments solutions geared to the challenges seen by online merchants. Klarna, for example, extends instant credit for online purchases to consumers without them having to provide payment details, easing the friction involved in completing an online transaction. Connected card payments: Companies like Coin and Stratos are betting that all-in-one connected credit cards will be a key link in the payments value chain. Money transfer services: TransferWise and Remitly provide digital solutions for sending money across borders quickly and cheaply.
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    Square facilitates transactionsbetween buyers and sellers with its free credit card reader for the iPhone, iPad, and Android devices, allowing anyone to accept credit cards anywhere. Square Register serves as a full point-of-sale system for businesses to accept payments, track inventory, and share menu and location information. Pay with Square is a seamless way to pay, enabling individuals to pay with their names at local merchants, discover nearby businesses, explore menu listings, and store receipts.
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    Cash Flow Statement12/31/2018 12/31/2017 12/31/2016 Net Income (Starting Line) (38.45) (62.81) (171.59) Depreciation 60.96 37.28 37.74 Deferred Taxes & Investment Tax Credit (0.65) (1.38) 0.06 Other Funds (Non Cash) 319.07 237.28 189.97 Funds from Operations 340.94 210.36 56.19 Extraordinary Item - - - Changes in Working Capital (45.86) (82.64) (33.05) Net Operating Cash Flow 295.08 127.71 23.13 Capital Expenditures (62.79) (26.1) (25.83) Net Assets From Acquisitions (112.4) (1.91) (1.36) Sale of Fixed Assets and Businesses - - 0.3 Purchase or Sale of Investments (730.66) (312.6) (87.34) Other Uses - - - Other Sources - - - Net Investing Cash Flow (905.85) (340.61) (114.24) Cash Dividends Paid - - - Change in Capital Stock 245.98 219.75 90.91 Issuance or Reduction of Debt, Net 459.75 334.68 (0.17) Net Financing Active Other Cash Flow (189.97) (99.49) - Net Financing Cash Flow 515.76 454.93 90.74 Exchange Rate Effect (7.22) 4.3 (0.44) Miscellaneous Funds - - - Net Change in Cash (102.23) 246.34 (0.81) Free Cash Flow 233.88 101.61 (2.3)
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