The document presents insights on the evolving global payment landscape, highlighting key trends such as the rise of digital commerce, retail innovation, and the influence of fintech on traditional banks. It discusses the significant growth projections for payment cards and transaction values across regions from 2019 to 2022. Additionally, it emphasizes the importance of customer experience and regulation in shaping payment security and innovation.

1. A World Payment Perspective
Greg Toussaint – Director at Edgar, Dunn & Company
27 November 2019
© Edgar, Dunn & Company, 2019

2. Confidential 2
Agenda
10:00 – A World Payment Perspective
Greg Toussaint – Edgar, Dunn & Company
10:15 – Challenges Ahead in Fast Changing Landscape
Sirpa Nordlund – NETS.EU
10:50 – Panel discussion: Instant Payment and Open Banking
11h40 – Panel discussion: Authentication and the Impact on Payments
12h20 – Panel discussion: Payment Innovation
10:30 – Beyond payments. Revamping business management for SMEs
Stefan Stankov – myPOS

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Edgar, Dunn & Company (EDC) is an independent global payments strategy
consultancy working closely with retailers in the luxury sector to optimise payments
EDC Office LocationsEDC: Independent, Global, Focus on Payments & Retail
Founded in 1978 in San Francisco, the firm is widely
regarded as a trusted advisor to its clients, providing a
full range of strategy consulting services, expertise
and market insight, and M&A support
EDC has been providing consulting support to its client
base working with:
 Many of the world's leading merchants, including
leading luxury retailers
 More than 40 European banks & card
issuers/acquirers
 Most of the top 25 US banks and credit card issuers
 All major international card associations / schemes &
many domestic card schemes
 Many of the world's most influential mobile
payments providers
+1,000 projects completed
+250 clients in 40 countries & 6 continents
EDC Key Metrics
Financial services and payments focus
Six office locations worldwide
Independent - owned and controlled by EDC Directors
Office locations
Shaded blue countries represent markets where EDC conducted client engagements
London
Sydney
Frankfurt
ParisSan
Francisco
Dubai

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Reports of the death of payment cards have been greatly exaggerated
11 B
1,49 B 1,46 B
0,8 B 0,7 B
13 B
1,61 B 1,60 B
0,9 B 0,8 B
Asia-Pacific North America Europe South &
Central
America
Middle East &
Africa
Total number of cards from 2019 to 2022 (in
Billions)
2019 2022
+17%
+8% +10% +11% +21%
Source : GlobalData
92 Tn €
40 Tn €
29 Tn €
5 Tn €
9 Tn €
118 Tn €
50 Tn €
35 Tn €
6 Tn €
11 Tn €
Asia-Pacific North America Europe South &
Central
America
Middle East &
Africa
Total value of transaction from 2019 to
2022 (in Trillions €)
2019 2022
+28%
+25%
+21%
+25% +30%

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5 key trends in the payment ecosystem
1. The rise of digital commerce
2. Retail innovation
3. Instant Payments
4. IoT payments
5. Impacts of regulations

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Digital commerce will continue to grow significantly especially in Asia-Pacific
0%
5%
10%
15%
20%
25%
30%
35%
40%
2018 2019 2020 2021 2022 2023
E-commerce as % of total retail sales per region
Asia-Pacific Global North America Europe Latin America Middle East & Asia
Asia-Pacific
Global
North America
Europe
Latin America
Middle East &
Asia
Source : EDC Advanced Payment Report 2018

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19%
25%
43%
60%
65%
81%
Beacon technology/proximity marketing
Internet of Things & Connected Commerce
Faster Payments
In-App Payments
Frictionless In-Store Payments (e.g. Uber-type Experience)
Seamless / Frictionless Cross-Channel Payment Acceptance
Importance for merchant's payment acceptance strategy
Retailers are now placing greater emphasis on customer experience
Source : EDC Advanced Payment Report 2018

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The deployment of faster payments platforms is accelerating
52%
44%
42% 41%
32%
29%
26%
24%
P2P Online Retail
Payments
Bill Payments B2B Payroll Consumer to
Small
Businesses
B2C and C2C
distributions
(non-payroll)
Low value
payments at
POS
Faster Payments schemes that are expected to have over 20% of
market share over the next 5-10 years
Source : EDC Advanced Payment Report 2018

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Internet of Things (IoT) and connected objects are developing significantly
Consumers Merchants
Smart Home and Payments
Wearables
Connected transport
Connected screens
Kiosks
Source : EDC Advanced Payment Report 2018

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Payment regulations have strong impacts on payment security and innovation
PSD2 main objectives
Contribute to a more integrated and efficient
European payments market
Improve the level playing field for payment
service providers (including new players)
Make payments safer and more secure
Protect consumers
Open-Banking and Third
Party Providers (TPPs)
Strong Customer
Authentication (SCA)
Key recent regulations
Source : European Commission
Example in Europe

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Fintech also impact significantly the development of the payment market
EDC newly released
report on the impact of
Fintech on the payment
value chain

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Why Fintech threaten traditional banks?
Innovation
Competition
Regulation
Fintech lead the disintermediation of the
payment value chain
New specialised and innovative lenders are
emerging
New neo-banks, payment providers and
Fintech have emerged since 2005 (1,400 in
Europe)
Big technology groups are also
strengthening their offering related to
financial services (GAFA)
Regulatory developments are designed to
encourage competition in the payments
sphere
Traditional banks
1
2
3
Sources : Deloitte and Financial Times

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Fintech investments in 2019 and different categories of payment companies
Source : EDC Fintech Report , CB Insights and EDC Analysis
18%
21%
21%
37%
51%
57%
Banking Infrastructure
Blockchain and
Cryptocurrency
Security & Fraud
Management
Payments
Open Banking - APIs
AI & Automation &
digitisation
Fintech investment areas 2019 The Payment Market Map
Point of sale payments
Bitcoin Payments Billing, Automation, Streamlining
Payment Processing Services Mobile Payments infrastructure
Personal Payment Services
Money Transfer Services Connected Card Payments

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Consumer and business pain points that should be solved by Fintech to compete with
traditional banks
Source : EDC Fintech Report
Consumer Pain Points Merchants Pain Points
Real payments – but not real time
Proof of account ownership
P2P Payment
High cross border costs
Fighting fraud

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Global remittances: an example of market where Fintech have accelerated the shift to
digital
$61
$106
$149
$189
$237
$285
$339
$382
$421
$442
$543
$489
$440
$444
$453
$439
$422
$409
$401
$397
$- $100 $200 $300 $400 $500 $600 $700 $800 $900
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Global recorded remittances (in US$ Billions)
Digital Non-Digital
$ 604
$ 595
$ 589
$ 633
$ 690
$ 724
$ 761
$ 791
$ 822
$ 839
Source : EDC Fintech Report

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Conclusion
“It’s all about the experience.
Either banks remove
friction…. or someone else
will.”
Brett King – Futurist, author
and CEO of Moven

17. Contact details
Edgar, Dunn & Company
1 bis rue du Havre
75008 Paris
France
Tel +331 4007 9224
Mobile +336 7026 9925
gregoire.toussaint@edgardunn.com
Greg Toussaint
Director
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