1. Geolocation & Mobile Payments
A Marriage Made in the Cloud
Payments Innovation 2016
Conference Dates: 23-24 February 2016
Novotel Sydney Australia
Presented by Carlos Piteira

2. The emergence of
online commerce
prompted an
explosion in the
number of specialist
PSP’s (Payment Systems
Providers)
Ecommerce and the
payment companies
servicing this sector
generate a vast amount of
news and excitement in the
industry but is the hype
matched by reality?

3. Ecommerce is virtually non existent
in large regions of the world
EVEN WHERE IT HAS THE HIGHEST PENETRATION, SUCH AS IN THE UK,
IT BARELY REACHES 10% OF TOTAL RETAIL VOLUME AND THIS IS WITH THE EXCLUSION OF FOOD
AUSTRALIA
2013 2015
$22,175 $490 $23,477 $717
MILLION MILLION (2.2%) MILLION MILLION (3.0%)
Average
monthly retail
expenditure across all categories
Average monthly
retail expenditure
across all categories
Average monthly
ecommerce expenditure
across all categories
Average monthly
ecommerce expenditure
across all categories

4. Ecommerce is gaining less than 0.5% a year in market share
The rate of growth is slowing down:
25% 16%from 2013 to 2014 from 2014 to 2015
Total Retaill
Online Retaill

5. Australian Retail MoM Variation
There is not a marked difference between
the MoM variation for all retail and ecommerce
Total Retail MoM Variation Online Retaill MoM Variation

6. Australian Retail by Sector
Total Online
Ecommerce is not going to take over the bricks and mortar retailers anytime
soon because it is simply not strong enough in the dominant sectors of food
and household goods

7. Why is all this relevant to payments?
Because if the PSP’s are going to take any significant market share
away from the incumbents – the banks and card companies – then
they need to look beyond the online space and come up with
solutions that also cover payments in stores and other physical
environments
ENTER THE OMNICHANNEL EXPERIENCE

8. From a customer’s perspective omnichannel is about tearing
down the walls
The most innovative merchants are now using their online resources as part of an augmented world that
complements their in-store display, supports their loyalty programs and is their main data collection point

9. The Payments Industry has the tool kit to
build the Omnichannel Payments Ecosystem
The all pervasive mobile
infrastructure means that
customers can be reached
anytime, anywhere
Bluetooth Beacons can launch
cloud based apps which are
location relevant and can
deliver personalized content
Single sign-on with social
media accounts allows one
click payments inside content
and with any device
Payment solutions that support the omnichannel experience provide the opportunity
that PSP’s need to extend their presence across the whole market

10. These are the five pillars upon which the industry can build a new ecosystem
that will really transform shopping and payments
Geolocation, Mobile Payments and Cloud Services combine to make delivery
of these services a reality

11. Instant and Dynamic Content Delivery
A Content Engine can deliver location aware and relevant
messages based on consumer's location and known history
DEMOGRAPHICS DEMAND
LOCATION
PREVIOUS BEHAVIOUR TRIGGER POINTS
AND EVENTS
Low Energy Bluetooth Beacons provide location of an
individual with an accuracy better than 30cm

12. Location and Navigation
DESTINATIONS CUSTOMERS STAFF
Stores
Products in the store
Customer service points
Entry and exit points
Meeting points
Location
Demand
Event
Trigger point
Demographics
Buying history
Location
Product
Activity
Customer
Trigger point
Appointments

13. Advertising Services
Deliver targeted messages via other
channels such as digital signage based
on real time way point analytics
PERSONALISED MESSAGING
Communicate with an individual based
on his demographics and past
purchasing history

14. Advertising Services
Deliver targeted messages via other
channels such as digital signage based
on real time way point analytics
AGGREGATED MESSAGING
Communicate with the masses based
on the demographics of the immediate
environment

15. Social Media
USE SOCIAL MEDIA FOR SINGLE
SIGN ON AUTHENTICATION
COLLECT INDIVIDUAL
CUSTOMER DATA
DRIVE LOYALTYREAL TIME MARKETING
Automatically capture social media
check ins enriched by likely product
interest based on consumer location

16. Way Point Analytics
LOAD
BALANCING
WAIT POINT ANALYSIS
IN REAL TIME
CONGREGATION
POINTS
AREAS OF
CONGESTION
DWELL TIMES /
POINTS
PATHING

17. Geolocation Matters
IT HELPS DELIVER THE RIGHT INFORMATION ABOUT THE RIGHT
PRODUCT TO THE RIGHT PERSON AT THE RIGHT TIME
API based embedded payments are the final link in the chain
They allow consumers to respond with a positive action
The likelihood of impulse buying is increased because all communication
is contextual and relevant

18. Sales and
Payments
Everywhere
with NFC and
Beacons

19. Where and how is this happening?
More than 200 merchants, including Carrefour
and Universal Music, are using Beacons to
detect the customer presence in the store and
use the phone’s camera to read digital signage
Gilbarco is using Beacons to provide
customers with personalized offers as
they refuel
Starbucks mobile “Order and
Pay” got to five million
transactions a month and more
than 20% of total transactions
in less than three months
Click and collect already
represents 10% of Target sales
and growing. 60% of the
customers that come to collect
spend on average another 30%
Some Australian museums are
using Beacons and Apps to
provide guided tours,
augmented displays and
multimedia sales.

20. H U R D L E S
T R A P S
A N D
This is about changing consumer behavior. While there are
many recent examples of this happening on a very large scale it
can never be taken for granted
It requires a comprehensive integration of all the company’s business
systems and processes. For many companies with lots of legacy
infrastructure this could be an unsurmountable task
Design and implementation of an omnichannel strategy with all the bells
and whistles can be very expensive and call for resources which are
beyond the company’s capability
Even if there is widespread adoption of these technologies and behavior
by the consumers there is no guarantee of a decent ROI or that it will be
for the long term. For example, the average useful life expectancy of a
fitness bracelet is three months
However, most of these changes are consumer driven and the
different elements are all out there in common use
1
2
3
4
5

21. A Bit of History
100.000 Years 10.000 Years 1.000 Years
Limited commerce opportunities
Maybe with the cave across
the valley
Agricultural revolution
First localized commerce
Strictly bartering
Low volume commerce
established across Eurasia
Bartering still prevails but
coins are now widespread

22. A Bit of History
100 Years 50 Years 10 Years
Industrial revolution
Cash is king
Global trading and banking systems
Information revolution
Mega Malls
Plastic cards
Ecommerce
Internet of Things
Digital Currencies
History tells us that the rate of change is exponential and unpredictable

23. Summary
To be relevant, innovations in payments
must cater for all the channels and not just
focus on ecommerce
Invisible payments embedded in cloud based apps can make a
significant change to the way people shop and pay
Geolocation is an important tool to deliver
contextually relevant and personalized
content

24. About QuayPay
QuayPay core product is
an API based authentication
solution that ties payments
to user accounts
QuayPay creates new
payment experiences
including invisible payments
with loyalty points built in
This can be embedded
within Apps, websites and
locations and provided as a
cross platform digital wallet
Provides Marketers with
a higher level of control
and client engagement

25. Thank You
Carlos Piteira carlos@quaypay.com