Tapping into overseas markets can boost revenue, expand your subscriber base, and experiment with new use cases. In some industries, the rapid growth of online spending (more than 25 percent in the top 10 markets outside the United States) can make global expansion imperative simply to keep up with competition. Once a particular geography has proven to be a valuable market, setting up a local entity is the next logical step for many merchants. Clearly, this gets you closer to your customers and positions you to better understand their needs. Less obviously, it helps you optimize the way you accept payments to take your sales figures, subscriber count, and profitability to the next level. Learn more about common benefits of this approach, including: - Increased approval rates on credit and debit card payments - Reduced cost of payments acceptance - Minimized FX risk and fees along with streamlined A/P through receiving settlement locally

2. ≈
Land to Expand
Establish Foreign Legal Presence to Increase
Revenue and Profitability
Neeraj Gupta
Leader of International Product, Vantiv

3. Growing International Opportunity
page
03
The rest of the top-10
markets combined are
growing at ~25%
every year.
Projected eCommerce Sales for the 10 Largest Markets
Others Countries
Among Top 10
United States
In the US, eCommerce sales are
growing at ~12% yearly.

4. Many Ways to Enter Overseas Markets
page
04
taking the
tour
accidentally
global
permanent
resident

5. Setting Up Shop Overseas
 Be closer to existing customers
 Understand prospective
customers better
 Streamline supply & distribution
chains
What else?

6. Less Obvious Advantages
page
06
Pricing in local currency goes a long
way to boosting conversion/acquisition.
Local presence goes one step further
by maximizing approval rates on
credit/debit card payments.
Increased Sales
Maximize profitability by reducing FX
risk and fees and reducing the fees
imposed by card brands and issuing
banks—all through local legal
presence.
Reduced Cost

7. REVENUE

8. Ecosystem Background
page
08
ISSUING BANK MERCHANT ACQUIRING BANK
I A

9. How Issuers Make Decisions
page
09
I A

10. Impacts to Top Line
page
010
Increased Card Approval Rates
Issuing banks tend to allow far more domestic authorizations than those
cross-border. In some markets, can be an all-or-nothing proposition.
Reduced Foreign Trxn Fees to Customers
Issuing banks will often levy these fees when shopping cross-
border. Merchants don’t see these but they can deter conversion.

11. approval rate 
8%
~potential lift in sales (£)
TTM
£970K
potential lift in sales ($)
TTM
$1.2M
Example Results

12. PROFITABILITY

13. Ecosystem Background, Revisited
page
013
I A

14. EU Interchange Fee
Regulation
Caps fees imposed by issuing
banks and card brands on
merchants.
 Credit - 30 bps + EUR 0.05
 Debit - 20 bps + EUR 0.05

15. Impacts to Bottom Line
page
015
Reduced Cost of Processing
Domestic credit and debit card transactions are subject to far lower
issuer (interchange) and card brand (assessment) fees.
Reduced Risk and Fees Due to FX
Receive proceeds of net sales in local currencies to avoid
repatriation and associated currency conversion risk and cost.

16. passthrough fees 
77%
reduction in cost ($)
TTM
$240K
Example Results

17. CONCLUSION

18. Wrapping Up
page
018
Increased Sales Reduced Cost
Establishing operations in overseas markets is a logical step in your global
strategy. It helps drive your customer acquisition/retention efforts while
streamlining your supply- and distribution chain.
You can also realize less obvious—but significant—advantages from your
payments strategy.

19. thank you.