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PAYVISION Global Card Processing

THE MOBILE PAYMENTS REPORT 2016

An omnichannel evolution

Keira McDermott

CONTENTS1. EXECUTIVE SUMMARY 3

2. MOBILE MONEY – WHERE ARE WE TODAY? 5

3. TYPES OF MOBILE PAYMENTS 8

3.1 SMS 9

3.2 M-COMMERCE / WAP 10

3.3 MPOS / NFC 12

4. ADDRESSING BARRIERS 13

4.1 MOBILE PAYMENTS SECURITY 15

4.2 STUNTED CONVERSION FOR NON-CREDIT CARD HOLDERS 16

4.3 B2B - MINIMAL FOCUS ON MOBILE 17

5. REGIONAL TRENDS 19

5.1 ASIA PACIFIC 20

5.2 EUROPE 23

5.3 MIDDLE EAST AND AFRICA 25

5.4 NORTH AMERICA 26

5.5 LATIN AMERICA 28

6. CONCLUSIONS 31

6.1 MOBILE COMMERCE IS EQUAL TO DESKTOP 31

6.2 B2B IS HUGE WITH ALMOST NO PLAYERS 32

6.3 MORE MOBILE MEANS MORE OMNICHANNEL 32

7. ABOUT THE PUBLISHERS AND EDITORS 33

7.1 ABOUT PAYVISION GROUP 33

7.2 ABOUT THE AUTHOR 34

7.3 ABOUT THE EDITOR 34

The Mobile Payments Report 2016

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EXECUTIVE SUMMARY ALMOST HALF OF ALL DIGITAL PAYMENTS ARE NOW MOBILE

However, the distinction between payment channels is increasingly unclear. For example, if a customer completes a purchase in a physical store via their smartphone linked to their credit card, do we class it as an in-store payment, a mobile payment, a credit card payment, ecom-merce or mPOS?

Traditional in-store purchasing with cash, credit or debit card still prevails as the primary commerce channel, globally. Yet ampli-fied mobile point-of-sale, Research Online Purchase Offline (ROPO) and on-the-go mobile purchasing creates an increasingly hazy line between ecommerce, digital retail, traditional commerce, m-commerce and mobile payments. Tracking payments from each separate channel is progressively problematic, yielding ambiguous results.

Mobile payments are increasingly essential to customers, but the parameters are becoming harder to define. Omnichannel retail, however, is not device or location specific. It looks at commerce as a whole, placing the customer at the heart, allowing them to decide how and

when they wish to purchase. Mobile payments are a catalyst to omnichannel retail activity.

We estimate that around 8 percent of total global commerce is digital – using neither cash nor a card-present means. Within this segment sits mobile (smartphone, tablet, wearables) and desktop commerce. Non-mobile always held the lions share, but now mobile payments are catching up, and make up nearly half of this total. 1

“ OUR RESEARCH HAS SHOWN THAT CONSUMERS ARE UNDOUBTEDLY MORE mobile. It’s important, however, to remember that mobile payments are just one part of the bigger picture. The priority is to identify the preferences of your customers and give them flexibility over how, where and when to pay. Whether that is with a mobile device in-store, from a mobile-optimized website or from their social channels, consumers are omnichannel. They should be in the driving seat now, more than ever before.” GIJS OP DE WEEGH, CHIEF OPERATING OFFICER, PAYVISION

1. Consolidated data interpreted from Internet Retailer, NFC World and MarketsandMarkets

1.

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8%DIGITAL COMMERCE

TRADITIONAL COMMERCE

92%

MOBILE NON MOBILEMOBILE NON MOBILE

47% 53%

MPOS

M-COMMERCE

SMS

24%

48%28%

ECOMMERCE PERCENTAGE OF RETAIL (IN VOLUME)

There are different types of mobile payments, and these can largely be broken down by proximity and distance payments. There are different preferences from region to region, stemming from cultural influence, varying degrees of trust and connectivity barriers in different markets.

As we gather more and more data on mobile payment usage, and with over a year since the initial roll out of Apple Pay, one trend emerges: less developed markets have a stronger will-ingness to embrace mobile payments than advanced economies.

In countries such as the US, the UK, Germany, and many other established markets, mobile payments are evolving and obtaining a place in

mainstream commerce, but this is not where the revolution is taking place. Mobile payments are thriving in the BRICs and other advancing countries like Kenya, Indonesia, Turkey, Ukraine and Mexico, despite customers and businesses having less access to financial institutions, latest technology and banking services.

The reason for this is clear; there is a funda-mental requirement, need or pain point in these markets that mobile payments address directly. In Kenya for example, the fear of carrying cash, or the inconvenience of sending money home without secure financial services, is a strong motivation. In China, an intrinsic desire for socially integrated and immediate payment services in a country wary of credit has propelled adoption. In established markets

1.


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like the US, despite a ‘cool’ factor, there is still little payoff for customers to use their mobile for in-store payments over their credit card.

Yet the convenience of impulse purchasing via mobile is building more momentum across well-connected markets. No longer pigeon-holed as in-store or online shoppers, commerce should be fluid, flexible, and mobile. Omni-channel – one holistic, streamlined purchasing funnel irrespective of device or location – is the anticipated retail landscape of today and tomorrow.

The Payvision Group processing platform is well-suited to both established and aspiring omnichannel merchants. It offers a holistic, 360-degrees solution, covering all channels in the payments chain.

CROWDYHOUSE Co-founder explained why the Payvision Group processing platform was the ideal choice for them.

“ AS A MARKETPLACE, WE TAKE A PERCENTAGE OF EVERY SALE. WE NEED TO pay out to the seller on each transaction and then pay ourselves our commission. This gets complicated without a solution designed to deal with it.

“ WE SPENT OVER A YEAR MEETING WITH A LONG LIST OF LEADING INTERNATIONAL AND local PSPs and none of them o ffered everything we needed at our preferred rate.

“ I ASKED THE SALES PERSON FROM ONE INTERNATIONALLY-KNOWN PSP ABOUT AN essential feature that was listed on their website. He said, “Sorry. That’s only available by requesting it from the board and it’s decided on a per company basis.” IN OTHER WORDS, THEY ADVERTISED A PRODUCT THAT WAS ONLY AVAILABLE TO A SELECT FEW CLIENTS.

“ FINALLY, A BUSINESS ASSOCIATE RECOMMENDED WE MEET WITH ACAPTURE. We sat down with them and were delighted by what they had to say. We chose Acapture because its fees are excellent, it has every payment method we need and it o ffers the most eff ective solution for marketplaces with features like SlicePay for handling split settlements.” MARK STUDHOLME, CO-FOUNDER OF CROWDYHOUSE.

If you are interested in learning more about the preferred payment methods and most popular online purchases in different countries, take a look at our cross-border infographics.

1.

2. MOBILE MONEY – WHERE ARE WE TODAY? WE ARE PREPARING TO ENTER THE THIRD WAVE OF THE GLOBAL DIGITAL REVOLUTION.

According to Steve Case, Internet front-runner and America Online (AOL) co-founder, we are preparing to enter the third digital revolution. In order to enter this phase, the Internet must be taken to the next level. 2

The connected world has come a long way since the Web 1.0 era. Today, our daily reliance on connected technology and mobility already reveals much about the next innovative phase of Internet connectivity. Portable devices and

2. The Third Wave, Steve Case. 2016


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http://www.acapture.com/infographics

fast, secure Wi-Fi connections now influence our day-to-day business.

Digital payments, contactless technology and mobile applications are a key stimulus to this evolution. A recent study has predicted that the annual transaction value of online, mobile and contactless payments will reach USD 3.6 trillion in 2016, up from USD 3 trillion on 2015; a 20 percent increase. 3

With traction generated by Android Pay, Apple Pay, and Samsung Pay in the West, and TenPay and AliPay in the East, mobile payments are

on a solid upward trend. The mobile payments sector covers a number of payment channels, widely broken down by proximity (NFC) and distance payments (WAP / SMS).

Distance payments now make up over a third of all global ecommerce transactions, 4 almost a 10 percent increase in the last year. 5 The expanding user base of mobile payments undoubtedly indicates strong development on a global scale. According to Statista, only 70 million people worldwide used mobile payments in 2009. This figure is now almost 6.5 times that, the largest proportion from Asia Pacific.

NUMBER OF MOBILE PAYMENT USERS FROM 2009 TO 2016, BY REGION (IN MILLIONS)

0

100

200

300

400

500 LATIN AMERICAAFRICAMIDDLE EASTASIA PACIFICNORTH AMERICAEUROPE

20162015201420132012201120102009

TOTAL

Today, smartphones are used by a third of the world’s population 6 but only 6 percent uses mobile payments, however, so this sector still has enormous growth potential.

Barriers to widespread mobile payment adop-tion remain, even among smartphone users. These include concerns over security, priority for credit cards in app payments, and a general lack of B2B adoption. Addressing and solving these gaps could take the mobile payments business to the next level, and ignite the third wave of digital connectivity.

In this white paper, we simplify the evolving landscape of mobile payments, analyze the

regional trends, and give advice on how to capi-talize the next wave of mobile payments.

We are closer than one year ago, but still some way from the cashless, cardless, mobile payments age of tomorrow.

3. Juniper Research

4. Criteo

5. The Mobile Payments Revolution 2015, Payvision

6. Statista - Smartphone user penetration as percentage of total global population from 2014 to 2019

2.


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LESS DEVELOPED MARKETS ARE MORE WILLING TO EMBRACE MOBILE PAYMENTS THAN ADVANCED ECONOMIES. MOBILE PAYMENTS ARE THRIVING IN THE BRICS AND OTHER ADVANCING COUNTRIES LIKE KENYA, INDONESIA, TURKEY, UKRAINE AND MEXICO.

TYPES OF MOBILE PAYMENTS MOBILE PAYMENT IS A TERM USED TO IDENTIFY ANY TRANSACTION ASSOCIATED WITH A MOBILE DEVICE.

In an increasingly omnichannel retail envi-ronment in which mobile devices can expedite brick-and-mortar transactions, there is ambi-guity about which branch of payment is which, and how merchants can make use of them.

Mobile payments can broadly be broken into two groups:

• PROXIMITY MOBILE PAYMENTS: the customer and/or the vendor is physically present, and the

payment is made or processed through a mobile device.

• DISTANCE MOBILE PAYMENTS: the user makes an ecommerce payment or money transfer through a smartphone or other Internet-enabled device, via a mobile app or browser.

Different mobile payment models, and their predicted growth, are broken below. 7

0 %

20 %

40 %

60 %CAGR

MOBILE PAYMENTS GROWTH BY TYPE (IN USD BILLIONS)

0

5

10

15

20

25

2019

2014

DIRECT MOBILE BILLING

NFC/MPOSMOBILE COMMERCE/WAP

STK/USSDSMS

7. Mobile Money Market, MarketsandMarkets, 2015

3.


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SMS

SHORT MESSAGE SERVICE (SMS) WAS THE ORIGINAL MOBILE PAYMENT, PRE-DATING SMARTPHONES AND MOBILE INTERNET.

Despite today’s advanced technology, this simple method for facilitating mobile payment transfers is still the most popular mobile payment type, globally.

SMS payments are frequently used for paying for goods or services, or making person-to-person payments. The SMS-based transaction market is expected to grow from USD 4 billion in 2014 to USD 22 billion in 2019, at a CAGR of 41.1 percent.

SMS MOBILE TRANSACTIONS (IN USD BILLIONS)

0 5 10 15 20 25

2019

2014

2012

SMS PAYMENTS MARKET SIZE BY REGION (IN USD BILLIONS)

0 2 4 6 8 10

NA

LATAM

MEA

APAC

EUROPE

2019 (EST)

2014

2013

2012

3.1


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While SMS will continue to be a considerable growth area for mobile payments, it will have a lower CAGR than WAP (m-commerce) and NFC (mPOS), as adoption for these methods will increase. 8


3.1

M-COMMERCE / WAP

WIRELESS APPLICATION PROTOCOL (WAP) IS THE MEANS OF CONNECTING A SMARTPHONE OR OTHER DEVICE TO MOBILE INTERNET.

Transactions completed via this facility with an online payment method are WAP payments. This can include in-app payments or browser payments, more commonly referred to as m-commerce.

Examples of m-commerce includes transactions on ecommerce platforms such as Amazon via

a mobile device, a retailer mobile application purchase or an in-app ordering service such as Uber, Deliveroo or Foodora.

M-commerce is expected to grow from USD 2 billion in 2014 to USD 16 billion in 2019, at a CAGR of 51.4 percent.

M-COMMERCE PAYMENTS TRANSACTIONS (IN USD BILLIONS)

0 3 6 9 12 15 18

2019

2014

2012

3.2


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M-COMMERCE PAYMENTS MARKET SIZE BY REGION (IN USD BILLIONS)

0 1 2 3 4 5 6 7 8

NA

LATAM

MEA

APAC

EUROPE

2019 (EST)

2014

2013

2012

Thanks to the extensive development of clean, intuitive mobile apps for consumers, m-com-merce is the strongest predicted growth area for mobile payments in the coming years. 9

Smartphones are the more commonly used than tablets for m-commerce, when broken down by device.

MOBILE COMMERCE PERCENTAGE OF TOTAL ECOMMERCE IN SELECTED GLOBAL MARKETS IN 2015 (BY DEVICE)

0 % 5 % 10 % 15 % 20 %

TABLET

SMARTPHONE

ITALY

POLAND

SPAIN

CANADA

NETHERLANDS

FRANCE

EUROPE (TOTAL)

US

SWEDEN

GERMANY

UK


3.2


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MPOS / NFC

NEAR FIELD COMMUNICATION (NFC) IS THE TECHNOLOGY POWERING CONTACTLESS (PROXIMITY) PAYMENTS, INCLUDING MPOS AND CREDIT AND DEBIT CARDS WITH EMBEDDED NFC FUNCTIONALITY.

NFC mobile devices communicate with NFC enabled points of sale, using radio frequency identification.

Contactless payments on the whole are on a strong upswing. While contactless card

payments take the larger share, mPOS – boosted by Apple Pay, Samsung Pay and Android Pay – is also gaining traction in the market.

MPOS PAYMENTS TRANSACTIONS (IN USD BILLIONS)

0 3 6 9 12 15 18

2019

2014

2012

MPOS MARKET SIZE BY REGION (IN USD BILLIONS)

0 1 2 3 4 5 6

NA

LATAM

MEA

APAC

EUROPE

2019 (EST)

2014

2013

2012

3.3


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MPOS payments are seeing increasing niche adoption, and this area will continue to grow. Over the next few years, reports predict that mobile contactless payments will rise steadily as more merchants implement the technology to accept such payments, and consumers become more familiar. 10

The mPOS transaction market size is expected to grow from USD 1.8 billion in 2014 to USD 13.7 billion in 2019, growing at a compound annual rate of 50.5 percent. 11

In order to provide omnichannel retail expe-riences, many in-store businesses are also capitalizing on mPOS technology to process their payments. Retail staff can accept payments from any location in the store, allowing consumers to shop in a more relaxed and personalized environment, similar to that of online shopping.

PayPlaza is a technology company with a focus on developing omnichannel retail through mobile payments. It offers retail merchants the full suite of software to accept traditional EMV, contactless and mobile payments through their mobile terminals in-store. Edgar Plasa, CEO of PayPlaza explains,

“ A MERCHANT ALWAYS WANTS TO HAVE CLOSE INTERACTION WITH HIS CUSTOMERS. When using a mobile POS solution, including a payment device, it increases upsell of products by the store employee, and avoids queue busting in the store. Most of all, the attention and support to the customer is high, the transaction ‘pain point’ is short and it improves the customer shopping experience overall. In turn, mPOS generates a faster repeat visit to the store.” EDGAR PLASA, CEO, PAYPLAZA

10. Deloitte, 2015


3.3

4. ADDRESSING BARRIERS TAKING MOBILE PAYMENTS TO THE NEXT LEVEL

Mobile payments are growing steadily. Niche adoption is on a stable, upward trend but main-stream use, particularly with older genera-tions, has not reached a tipping point. This is partly due cultural influence, a lack of payment pain points in some established markets, and technological barriers for consumers and busi-nesses.

Mobile penetration is almost at global satura-tion, and in many developing economies mobile Internet supersedes desktop Wi-Fi access. Yet mobile payments are still relatively undevel-oped. If perfectly smooth, reliable, invisible mobile payments can be cracked, the market will be vast. So why are consumers still rela-tively slow to adopt mobile payments, compared to smartphones?

In order to take mobile payments up a level, existing barriers should be addressed. The principal obstacles are summarized below:


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TODAY, SMARTPHONES ARE USED BY A THIRD OF THE WORLD’S POPULATION, BUT ONLY 6 PERCENT USE MOBILE PAYMENTS, SO THIS SECTOR HAS ENORMOUS GROWTH POTENTIAL.

4.1 MOBILE PAYMENTS SECURITY

“MOBILE IS THE BIGGEST EMERGING OPPORTUNITY AND RISK FOR BUSINESSES AND FINANCIAL INSTITUTIONS TRYING TO DELIVER FRICTIONLESS EXPERIENCES.” THREATMETRIX 12

In a 2015 Payments Fraud and Control survey, more than three-quarters of participants stated that security keeps consumers from embracing mobile payments. 13

The back-end technology behind mobile payments is largely unknown to most consumers. Moreover, there have been numerous high-profile merchant data breaches in recent years, sitting close to the surface in consumers’ minds. The result is a longer than anticipated time frame for consumers to trust the ‘invisible’ mobile security measures protecting their financial data.

Indeed, identifying a user is harder via a mobile device. A recent survey showed that over 50 percent of mobile commerce fraud is related to identity theft and erroneous identification. 14

Significant technical improvements have increased trust, such as the rollout of Host Card Emulation (HCE). Gradually, with increased trust comes more adoption, and vice versa.

Before HCE, the payment credentials were either stored in a Secure Element (SE) on the mobile device, or on the cloud. The relevant details are then encrypted and accessed when necessary, assuming a good connection is present.

HCE, however, creates an exact representation of the user’s card. The mobile SE is no longer needed, lowering market entry barriers for start-ups. In addition, tokenization is now in place removing the need to access the cloud

each time the financial credentials are required, making mobile payments smoother.

While these methods have raised security and lowered barriers, cyber criminals are also evolving to create different ways to access financial tokens. Authentication methods, in turn, need to be more and more robust to deter them.

Uniquely identifiable physical qualities are being used more frequently for identity verifica-tion and payment authentication. As a result, biometric security is witnessing a huge surge. Revenue for the global biometrics market is expected to grow at a CAGR of 38 percent from a base of USD 126 million in 2015 to reach USD 2.2 billion by 2024. 15

Automated face technology, like that offered by SightCorp, allows for physical recognition, such as face, age and gender to be integrated into mobile applications. Their API and software can be used to identify and authenticate user identity.

Concern over the security of mobile payments, however, is not equal across all generations. According to GfK and FutureBuy, in the United States older consumers have a greater fear of mobile payment security. Generation Z (18 to 24 year olds), by contrast, are far less concerned about security and privacy. A third of this group indicated that they are entirely confident that mobile payments are secure, compared to 20 percent of the general popula-tion. 16

12. Mobile Payments Security 101, Mobile Payments Today, 2015

13. The Association for Financial Professionals, 2015

14. Barclays - European Payments & FinTech, 2015

15. Biometrics for the finance applications

16. Mobile Payments Today.com


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http://sightcorp.com

Gen Z's usage of mobile payments is more than double the national rate: 7 percent versus 3 percent. As this generation matures and their earnings increase, mobile payments will grow organically. Coupled with improved identity

authentication methods, thus greater trust and adoption from older generations, inherent concerns over mobile payments security will gradually slip away.

4.1

4.2 STUNTED CONVERSION FOR NON-CREDIT CARD HOLDERS

THERE IS A BURST OF NEW MOBILE APPLICATIONS OFFERING INTEGRATED PRODUCTS OR SERVICES, AND IN-APP PAYMENTS, SUCH AS FOODORA, UBER AND DELIVEROO.

These start-up businesses employ contractors to deliver a service or product quickly. Their smooth and easy-to-use applications make life more convenient for consumers, and are exploding in popularity.

All these examples utilize the mobile Internet network, GPS location, and offer a physical service such as quality food delivery, or taxi rides from contracted drivers. The concept is global, the model works across the world, except for one detail: the principal business model of these apps is crafted on the tech-nology of credit cards.

Credit card is the most widely accepted payment method across the world. From a technical standpoint, it is clear why credit cards are preferred by merchants. Credit card payments facilitate recurring billing, are easy to set up, they can be tokenized. With an increas-ingly on-demand payment economy these in-app services are all built on the possibilities of credit card parameters. Debit schemes, by contrast, are local, non-recurring, and non-in-telligent. Debit card is a conversion killer.

Unlike the US, not all countries are as enthusi-astic credit card users. Figures have indicated

that up to 60 percent of Europeans do not have a credit card. In China, 75 percent do not use credit cards, yet only 33 percent are without a smartphone, indicating a gap for these trending mobile app services.

Sign2Pay is an m-commerce company that would like to open up the convenience of mobile payments and in-app billing to non-credit card holders. Nicolas Mertens, the CEO of the company explains:

“ WE HAVE DEVELOPED A WAY TO MAKE IT AS EASY FOR CONSUMERS TO PAY WITH DEBIT as it is with credit card. With a credit card you provide your card details, a code and that is it. With debit schemes it is almost always more complex. Look at iDeal or PIN transactions in the Netherlands, or Belgian bank transactions; they are always authenticated with a card reader or another mechanism. You inevitably lose conversion, especially looking at the increasing trends in mobility.”

The benefit of mobile payment is buying on impulse. Sign2Pay wants to break that conve-nience open to debit cards holders, too. They developed a means to use the SEPA direct debit scheme to legally sign a mandate, then authen-


PAYVISION 16

ticate a transaction with a biometric signature on a touch enabled device. All that is needed is the device, the account and your finger. Any impulse buying intentions can be fulfilled. He continues:

“ LOOKING AT THE FUTURE OF MOBILE PAYMENTS, I EXPECT THE LANDSCAPE WILL develop more and more into the billing relationships you see between consumers and a merchant like Uber, rather than relying on single transactions. This is based on the simple fact that you cannot easily set up a payment on a smartwatch, for example. This type of billing is important for mobile payments because it doesn’t harass conversion.

“ WE HAVE NOW LAUNCHED A PRODUCT FOR PRE-APPROVED PAYMENTS, A COPY OF THE credit card authorization capture, made famous through tokenization with Amazon, Uber, Hotel Tonight and iTunes. If this system

can be so successful for credit card, upon which whole companies model their business, it is safe to argue it should be the same for debit card. So we asked ourselves why it isn’t possible in countries such as the Netherlands or Belgium, where 80 percent of consumers are used to paying with debit, to connect their bank account to these applications.”

“ FINALLY, THE GROWTH OF MOBILE PAYMENTS FORCES COMPANIES TO FOCUS more on conversion. Not so long ago companies could focus on this less because their main platform–and majority of traffic–was desktop. Now you see companies placing more value on conversion specialists, UX designers, and front-end developers. The next shift will be full omnichannel transparency: it won’t matter what platform or device you’re buying from, you will be dynamically recognized and signed in.” NICOLAS MERTENS, CEO, SIGN2PAY

4.2

4.3 B2B - MINIMAL FOCUS ON MOBILE

BUSINESS TO BUSINESS (B2B) IS THE UNSUNG HERO OF ECOMMERCE.

Focus has always been on Business to Consumer (B2C) ecommerce; it is the most visible to those outside the industry. Consumers are accustomed to reading reports on house-hold B2C names of ecommerce: Amazon, Alibaba, JD.com, Otto, Rakuten and Walmart.

The statistic less shared outside the industry is the proportion of B2B ecommerce to all ecommerce, globally. From 2012 to 2016, B2B has been valued at more than triple that of B2C. As B2C grows steadily, from USD 1.5 trillion in 2012 to USD 2 trillion in 2016, B2B continues to grow in the same proportion. B2B is predicted to reach USD 6.7 trillion by 2020,

making up almost 70 percent of all global ecommerce. 17

A new household name is emerging in China: DHGate is a business-to-business ecommerce platform that facilitates the sale of manufac-tured products from small and medium enter-prises to buyers.

This year, there is increasing focus on B2B ecommerce; businesses are considering strat-egies to take their share of this expanding market.

17. Frost & Sullivan, 2015


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GLOBAL ECOMMERCE VALUE B2B AND B2C (IN USD TRILLIONS)

0 1 2 3 4 5 6 7 8

B2C

B2B

2020

2016

2012

6.732% 68%

3.2

GLOBAL ECOMMERCE MARKET SIZE 2020 (USD TRILLIONS)

B2C B2B

The B2B branch of mobile payments, however, is considerably behind that of B2C. This is arguably because B2B transactions are gener-ally higher value than B2C, so mobile spending habits (smaller value transactions) could be to blame.

But, consumers are gaining more confidence in mobile payments, especially Gen Z with their inherent trust in mobile payment security, thus transaction volumes are increasing. Larger value purchases are now being made via mobile in a B2C environment.

Despite the fact that many large enterprises now have employees comfortably enjoying the convenience of mobile payments as consumers,

they are not yet set up to make use of them in a B2B environment.

There is potential for B2B to significantly boost the mobile payments market. In an interview with PYMNTS.com, Christina Hall, Senior Product Development Manager at TSYS explains how the landscape is likely to adapt.

“ FOR YEARS, WE HAVE WATCHED THE CONVERGENCE OF PERSONAL CONSUMER preference impact the corporate setting. There is a shifting mindset among employees, who now expect to conduct and manage their [professional] business with the benefit of intuitive tools and applications similar to those they use to conduct ‘personal’ business.” CHRISTINA HALL, SENIOR PRODUCT DEVELOPMENT MANAGER, TSYS

In B2B industries there is often a focus on bringing forward B2C-type experiences. While procurement and financial managers may be working on behalf of a corporation, they are still individuals that prefer the convenient experi-ences they encounter as consumers.

Bringing B2B payments to a mobile setting is already underway in other parts of the world.

4.3


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Happay is an Indian SMS mobile payments business, a purely B2B mobile payments wallet. Founders Varun Rathi and Anshul Rai estimate that more than USD 150,000 is being transferred a day between businesses on their platform. 18

B2B Mobile Banking is also gaining significant momentum. Adoption of HSBC’s HSBCnet mobile payment authorization service shows that, since its 2011 introduction, HSBCnet has reportedly been used by corporate clients in the UK to authorize more than USD 50 billion in payments, worldwide.

Nadya Hijazi, Global Head of PCM Ecommerce at HSBC explained,

“ THE WORLD IS ON THE BRINK OF A NEW ERA IN MOBILE PAYMENTS WHICH WILL revolutionize the way businesses operate. Since the launch of the HSBCnet Mobile app we’ve seen a marked increase in the use of smartphones and tablets by our corporate customers. At the current rate of growth, we expect to reach USD100 billion in the next 18 months.” 19

As financial service providers develop new tools for businesses, many are looking at the latest trends in consumer usage. By capitalizing on trends such as mobile and omnichannel payments, there is significant potential for B2B mobile payments to change the way SMEs and larger corporations do business.

18. PYMTS.com, 2015

19. Payment Week, 2015

4.3

5. REGIONAL TRENDS MOBILE DISTANCE PAYMENTS ARE NOW 34-36 PERCENT OF ALL ECOMMERCE TRANSACTIONS, GLOBALLY. 20

Mobile-first behavior is increasingly character-istic across many regions, notably in developed Western countries but most significantly in APAC, fuelling double-digit annual sales growth over the past five years for Asian Pacific tech companies. 21

In APAC, popular consumer mobile apps, such as WeChat, Line and KakaoTalk are synony-mous with multipurpose functionality, incor-porating ecommerce, payments processing, gaming and other digital goods and services. Western counterparts, with more detached platforms such as Pinterest, Twitter, Instagram and Facebook, have taken inspiration from the

East by launching “buy” buttons in their plat-forms during 2015.

The mobile payment trends across different regions are broken down below.

20. Criteo, 2015

21. TechCrunch, 2015


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5.1 ASIA PACIFIC

HOME TO 3.7 BILLION PEOPLE, THE ASIA PACIFIC REGION HOLDS OVER HALF THE GLOBAL POPULATION. CHINA ALONE HOLDS ALMOST 20 PERCENT.

Digital retail sales in APAC are growing faster than any other region; more than 10 percent faster than the worldwide average rate. China, India and Indonesia are the main drivers of growth, with the latter two markets experi-encing growth in 2015 of 129.5 percent and 65.6 percent, respectively.

This region not only has the largest digital retail market in the world, but its share of global digital retail spend has reached 52.5 percent — for the first time it holds an outright majority of the world market. 22

The region is extremely mixed from a connec-tivity and technological perspective. Beneath the region’s 42 percent mobile broadband penetration lies incongruities: in advanced economies like South Korea, Australia, Taiwan and Hong Kong, penetration is more than 100 percent, but drops down to less than 10 percent in Papua New Guinea, Nepal and Timor Leste.

While an average mobile Internet user in developed economies such as Singapore or Japan would consume 1.5 to 2Gb of mobile data per month, their counterparts in China and the Philippines use more than a fifth less, at 200-300Mb. Cost remains one of the biggest barriers: broadband in developing economies, including landlocked countries in Asia and small islands in the Pacific can be up to 18 percent of monthly average gross national income. 23

China drives APAC mobile payments Despite a mixed landscape, APAC is the leading region for mobile commerce, largely because it houses the global super power China, and the two extremely established, mobile-first econo-mies Japan and South Korea.

China has the largest percentage of mobile purchases across the world, 68 percent of e-shoppers purchased via mobile in 2015. China is also the top country for shopping via a mobile app rather than desktop: 84 percent, versus 50 percent purchasing on desktop. 24

TOP 3 COUNTRIES WITH THE LARGEST PERCENTAGE OF MOBILE SHOPPERS (IN %)

53% 57% 68%

TURKEY UAE CHINA

22. eMarketer, 2015

23. Internet Society - Mobile Internet Usage Trends in Asia-Pacific, 2016

24. Tech in Asia - Mobile commerce growing 300% faster than ecommerce (Infographic), 2015


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TOP 3 COUNTRIES WHERE SHOPPING VIA AN APP IS MORE POPULAR THAN VIA A BROWSER (IN %)

0 % 20 % 40 % 60 % 80 % 100 %

BROWSER

APP

USA

MEXICO

CHINA

Across the APAC region, m-commerce is the fastest growing segment. Although growth is

slowing for SMS payments, they currently make up the largest proportion in the region.25

ASIA PACIFIC MOBILE PAYMENTS (IN USD BILLIONS)

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P2P strongest growth predicted in APAC Person to person (P2P) mobile payment is the transfer of funds from a bank or credit card from one peer to another. This is one of the most widely used forms of mobile payment, globally, but transaction value is low.

The growth of P2P mobile payments is expected to be strongest in APAC than else-where in the world, 43 percent CAGR by 2019 compared to global average of 37 percent.

Our cross-border ecommerce infographics contain country specific import and export data on emerging and established markets, including China, India, Indonesia, Japan, Singapore and South Korea.


5.1


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PAYVISION 22


M-COMMERCE (WAP) IS THE STRONGEST PREDICTED GROWTH AREA FOR MOBILE PAYMENTS IN THE COMING YEARS, THANKS TO THE EXTENSIVE DEVELOPMENT OF CLEAN, INTUITIVE MOBILE APPS FOR CONSUMERS,

5.2 EUROPE

THE VALUE OF GOODS AND SERVICES BOUGHT DIGITALLY ACROSS EUROPE HAS BEEN RISING STEADILY AT 15 PERCENT, ANNUALLY, AND 185 MILLION EUROPEANS ARE EXPECTED TO USE MOBILE PAYMENT APPS THIS YEAR. 26

Europe is the second largest ecommerce region, after Asia Pacific. Overall, however, due to to the accelerated growth of ecommerce in APAC, Europe’s share of global ecommerce is predicted to decline. The strong Western European sub-region ranks third worldwide in total proportion of ecommerce, behind APAC and North America, but with its individual share expected to decrease. Eastern Europe’s share however, fourth worldwide, is predicted to remain stable.

While ecommerce in Europe is well devel-oped, within the region there are noteworthy variances in ecommerce maturity, needs and culture. The UK, Germany and France are the strongest ecommerce countries of the region, collectively accounting for approximately 60

percent of the total digital spend for Europe – with individual shares of 30 percent, 17 percent and 13 percent, respectively. Russia ranks third with a 4.4 percent share of regional online retail sales, but had the largest Internet audience, accounting for 19 percent of desktop Internet users in Europe in May 2015. 27

UK, Germany and France take the lead These top three markets are expected to account for almost 90 percent of the total 2016 mobile spending in Europe. 28 SMS payments hold the largest share of European mobile payments, but will grow at the slowest pace. M-commerce will grow the fastest, however, at 52.5 percent CAGR 2012 – 2019. 29

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26. Statista, 2015

27. yStats - Europe B2C E-Commerce Market, 2016

28. RetailMeNot – Mobile Shopping in Europe and North America, 2015



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Criteo released data in May 2016 that suggests that almost half (48.9 percent) of all UK ecommerce transactions now take place on mobile devices, via WAP. This is 6 percent more than last year: mobile commerce is increas-ingly influential on UK retail. The multi-device, omnichannel funnel is a progressively important strategy for merchants. Four in ten UK ecommerce transactions now involve multiple devices along the path to purchase. 30

From an NFC perspective, 2014 saw USD 3.2 billion worth of mPOS transactions in the UK, and this figure is expected to reach almost USD 10 billion by the end of 2016. 31 Switzer-land is also heavily contactless, and in Spain consumers have started embracing contactless payments.

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MOBILE NFC TRANSACTION VALUE IN THE UNITED KINGDOM 2013 TO 2016 (IN USD MILLIONS)

The interest in mobile payment apps specifi-cally is relatively gradual across the stronger European economies, ING reports. One in eight have made payments via smartphone or tablet in the Netherlands (13 percent), while a quarter across Germany (23 percent) and France (25 percent). Turkish users, however, are the most advanced in mobile payments, according to ING’s study. 56 per cent of them have used a mobile payment app.

In Eastern Europe, the payment landscape is quite a contrast to that of Western Europe. Central and Eastern Europe currently make up only 6 percent 32 of the global revenue through mobile payments – a relatively small percentage. The solid growth and the strong appetite for mobile payments in the sub-re-gion means the contribution could soon be significantly more. In Ukraine and Turkey, over

40 percent of smartphone owners already have experience with mobile shopping.

It is worth noting that a large percentage of Eastern European consumers still rely on feature phones rather than smart devices, and there is still a large unbanked population. Alter-native mobile services in this sub-region are engaging the population, such as the previously mentioned M-Pesa that is making grounds in Africa.

Concerns over Eastern European security One of the biggest barriers to full adoption in this region is the concern over cybercrime and security. While this proves a barrier at a global level, consumers are intrinsically more cautious in Eastern Europe due to the large proportion of cyber criminals operating from there. In

30. Internet Retailing, 2016

31. Statista - Mobile near field communications (NFC) transaction value in the United Kingdom (UK) from 2013 to 2016 (in million U.S. dollars), 2015

32. Omlis - Mobile Payments Security in Central and Eastern Europe, 2015

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February 2015, it was revealed that approxi-mately USD 1bn had been stolen from banks in over 30 countries including Russia and Ukraine by cybercriminals from Eastern Europe.

Our cross-border ecommerce infographics contain country specific import and export data on emerging and established markets, including France, Germany, Greece, Italy, Poland, Russia, Spain, Turkey and the UK.

5.2

5.3 MIDDLE EAST AND AFRICA

IN THE MEA REGION, FIXED WI-FI IS BELOW 25 PERCENT, BUT MOBILE BROADBAND IS AVAILABLE TO 50-75 PERCENT OF THE REGIONAL POPULATION. 33

The region is heavily reliant on mobile Internet as a main form of connectivity.

MEA MOBILE PAYMENTS (IN USD BILLIONS)

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NUMBER OF MOBILE PAYMENT USERS IN MEA (IN MILLIONS)

33. Fortumo - Mobile Payments in the Middle-East & North Africa, 2015


PAYVISION 25


In poorer, sub-Saharan African countries, mobile money is revolutionizing business. It allows consumers to retain money in a value store not linked to a bank account, giving people access to money or financial services without requiring access to traditional financial institutions.

As basic mobile handsets are popular with the African population, SMS mobile payments make up the largest proportion in MEA, making up USD 1.96 billion in 2014, and predicted to grow to USD 7.43 billion by 2019. 34

In Kenya, services like M-Pesa are exception-ally popular. Via a mobile SIM card, customers can deposit and withdraw or transfer cash by exchanging cash for electronic value at a network of retail stores (often referred to as agents). Once customers have deposited money, they can use their phones to transfer funds to other M-Pesa users or to non-registered users, pay bills, and purchase mobile airtime credit. All transactions are authorized and recorded in real time using secure SMS, and are capped at USD 500. Kenyans made 911 million transac-tions using M-Pesa in 2015. 35

Africa’s largest lender by assets, Standard Bank, has joined forces with Chinese mobile money wallet WeChat to tap Africa’s expanding mobile payment market. The Standard

Bank-backed WeChat Wallet was launched in November 2015 in the region most industri-alized nation, South Africa, and gives users access to a variety of the Chinese version’s most popular offerings, including peer-to-peer money transfers and in-app WAP payments for taxis and other services. 36

The Middle Eastern residents of the MEA region, however, are prolific smartphone users with penetration over 100 percent in some countries. The ME region was the original smartphone hub of the world before Asia: in 2012, 10-15 percent of global mobile subscribers used smartphones, and of this group, 6-7 percent were located in the Middle East. 37 Mobile payments, however, are still under-utilized in this region.

This trend supports the case that mobile payments are not dependent on tech-savviness, akin to the most developed countries. Mobile payments are most successful where there is a consumer pain point, or need in the market, and the mobile payment can address this need with a convenient solution.

Our cross-border ecommerce infographics contain country specific import and export data on emerging and established markets, including Israel, South Africa and UAE.


35. Central Bank of Kenya, 2016

36. HuffingtonPost, 2016

37. CMO Council Middle East, 2015

5.3

5.4 NORTH AMERICA

THE US, REPRESENTING 87 PERCENT OF TOTAL NORTH AMERICAN ECOMMERCE TURNOVER, LED THE ONLINE SHOPPING MARKET FOR DECADES. CHINESE ECOMMERCE SUPERSEDED THE US IN 2014, BECOMING THE LARGEST GLOBAL MARKET.

From a regional perspective, North America remains third globally, after APAC and Europe.

At a growth rate of 12.2 percent in 2014 and 12.6 percent in 2015, North America was the


PAYVISION 26

http://www.payvision.com/infographic

slowest growing region in the world. The gap between North America and the strongest two regions has only increased. 38

Accustomed to online purchasing, North American consumers are tech-savvy and well-connected. It seems rational to assume that that mobile payments would be a natural fit in this region. The reported use of mobile payments in North America, however, is mixed: some reports indicate strong growth and other reports are more lackluster.

Criteo’s State of Mobile Commerce report in 2015 that mobile commerce now makes up 29 percent of ecommerce transactions in the US, and mobile transactions grew 10% in the first three months of 2015. 39

According to Accenture, of 4000 surveyed smartphone users in the US and Canada, 52 percent are aware that they can use their

handsets to make payments, 10 percent more than the previous year. Yet, despite the arrival of Apple Pay and Android Pay – Apple reported more than a million credit cards registered with Apple Pay in its first three days of availability – only 18 percent in the survey use their phones to make one payment or more a week. That is a rise of only one percent on 2014.

The discrepancy is largely explained between usage of m-commerce and in-app purchasing (WAP) and over the counter mPOS (NFC). Currently, WAP and SMS make up the largest proportion of North American mobile payments, while NFC is still some way behind. NFC is predicted to reach USD 2 billion by 2019, compared to WAP which will be closer to USD 3 billion and SMS at USD 3.15 billion. 40 Apple Pay dominates the NFC market, just one year after launching. It is used for more than two-thirds of all mobile payments in US stores. 41

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One standout mPOS success story in North America is Starbucks. The coffee chain reported that as much as 90 percent of the USD 1.6 billion spent in US stores via smartphone in 2013 was on their products (prior to Apple Pay rollout). CEO Howard Schultz says the compa-ny's loyalty program is the catalyst to their mobile payments success. Patrons purchase Starbucks cards, load them with funds from a credit card, then scan barcodes in the Star-

bucks app or iOS Passbook wallet to pay for food and drinks at its cafes.

The use of mobile payments in North America is developing, and growing steadily. However, compared to many APAC countries and devel-oping countries in MEA, the emphasis is on an evolution, not revolution.

38. European Commission, 2015

39. Criteo - State of Mobile Commerce, 2015


41. Finextra - North American mobile payments usage stagnates, 2015

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Our cross-border ecommerce infographics contain country specific import and export data on emerging and established markets, including Canada and the US.

5.4

5.5 LATIN AMERICA

ECOMMERCE SALES IN LATAM ACCOUNT FOR 4.3 PERCENT OF GLOBAL TOTAL.42

The Latin American ecommerce market is still underdeveloped in comparison to the Asian Pacific or North American regions. Latin America has an equally undersized mobile payments industry, despite housing one of the fastest growing smartphone markets in the world. In Latin America, more than 90 percent of mobile users are on prepaid plans – many of them unbanked – and use devices with limited features and capabilities. Moreover, even in countries where smartphone penetration is high – Brazil, Mexico and Colombia are all above 60 percent penetration – there is a vast discon-nection between these figures and credit card penetration: 32 percent, 17.8 percent and 13.7 percent, respectively. 43

Mobile payments in LATAM are beginning to bridge this financial gap. New opportunities have arisen, with regulatory change encour-aging partnerships between banks and mobile providers. Mobile money in Latin America is fast evolving into both a convenience tool and credit opportunity boosting financial inclusion. What’s more, 38 percent of Internet users in Latin America used their mobile device to search for a product or a service online and 27 percent of internet users purchased a product last year.

Data published by the GSMA show that a quarter of all mobile money transfers in Latin America are now to third parties including merchants, utility providers and schools. Users of mobile payments have more than quintupled since 2009. 44

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42. Statista, 2015

43. Fortumo – Mobile Payments in Latin America, 2015

44. Statista, 2015


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In Latin America, SMS payments continue to make up the largest proportion of mobile payments, but NFC is expected to grow the

fastest, with a CAGR of almost 50 percent from 2012 to 2019. 45

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PAYVISION 30


MOBILE PAYMENTS THAT ARE ELEGANTLY CRAFTED INTO THE OMNICHANNEL EXPERIENCE CAN INCREASE CONVERSION, UPSELL AND REPEAT CUSTOM.

CONCLUSIONS WHAT NOW AND WHAT NEXT?

MOBILE COMMERCE IS EQUAL TO DESKTOP WHAT NOW?

Mobile commerce is now almost half of all digital transactions, globally: 47 percent.

The goalposts for merchants have shifted considerably. Just a few years ago, mobile optimization was an afterthought. Conversion via a mobile device was a low priority, because merchants knew that their ‘main’ platform was a large screen with more space to tell their story, and win their customers.

By contrast, merchants today must focus on converting a customer as smoothly, quickly and cleanly as possible. With such limited space, copy must be concise, and imagery bold and eye catching. It is not unusual today to encounter a small or medium-sized online webstore, with limited resources or budget, that has chosen to be mobile optimized over desktop. If a startup SME has to choose one over the other to launch their business, mobile optimization is the forward-thinking choice.

WHAT NEXT?

To be successful in converting mobile traffic into sales, learn the art of less is more. Full screen imagery, a clear user journey, large menu buttons, minimal content distrac-

tions ensure you are channeling the customer directly to unique selling point of your business, and in to the purchasing funnel.

Give more budget to UX design and front-end development to ensure your online presence is customer-centric and clean. Payments should be seamlessly integrated, and as easy to authenticate as possible, such as with a biometric identifier.

Note that, while the majority of mobile app startups focus on credit card users, a large proportion of global customers prefer alterna-tive payment methods. To tap the debit card market without the conversion kill, partner with a technology company like Acapture that can give your app a debit card-friendly check out facility, giving all customers the same, clean experience.

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http://www.acapture.com

B2B IS HUGE WITH ALMOST NO PLAYERS WHAT NOW?

B2B ecommerce is three times the size of B2C, and growing. With B2C ecommerce plateauing in some regions, focusing on B2B is a new direction for online merchants to continue expanding their online business in 2016.

With mobile payments now making up almost half of all digital (B2C) ecommerce, there is a strong argument for businesses to take their B2B payments into the mobile sphere. Yet to date, aside from niche local pockets, this is a largely untapped market.

Mobile payments were often processed in much smaller values than desktop ecommerce, and with B2B e-payments often larger still, it widened the gap between the two. Trends

are noticeably shifting, however, with younger consumers placing more trust in the mobile payment technology and making higher value purchases.

WHAT NEXT?

With Generation Z consumers now developing into young professionals, it will become more important to conduct corporate affairs with the same simplicity and ease as personal business. The mobile B2B payments industry holds huge potential to entirely renovate the way SMEs and larger enterprises conduct their business.

B2B businesses, payment providers and finan-cial institutions should consider widening their scope to make room for this trend before the market becomes flooded in a couple of years’ time.

MORE MOBILE MEANS MORE OMNICHANNEL WHAT NOW?

Growth statistics on mobile payments and ecommerce give the illusion that digital payments eclipse tradition commerce. While growth is exceptional, brick-and-mortar retail still remains 92 percent of entire ecosystem. We cannot ignore the continued preference for traditional, in-store consumerism, despite the predictions.

Increased mobile-first behavior tells us, however, that consumers are present across multiple channels, both physical and digital. They operate on many different devices and expect to connect to brands and merchants interchangeably.

Mobile payments are becoming increasingly hard to define, track and measure. Consumers are certainly becoming more and more mobile, but on top of their normal in-store activities.

WHAT NEXT?

Rather than focusing on growing more mobile sales, or increasing your mobile-based busi-ness, consider mobile payments one branch of the wider omnichannel retail landscape. Mobile payments can facilitate cleaner in-store sales, provide greater personalization and win brand trust for the traditional merchant.

For those merchants focused on purely brick-and-mortar retail, a mobile point of sale

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PAYVISION 32

facility can bring the joy of online to in-store. Customers can enjoy the laid-back experience of home shopping by browsing from seating areas or changing rooms. They can obtain the face-to-face interaction they arrived for, with a stress free point of purchase.

Most importantly, mobile payments elegantly crafted into the full omnichannel experience will increase conversion, upsell and repeat custom.

6.3

ABOUT THE PUBLISHERS AND EDITORS

ABOUT PAYVISION GROUP Payvision and Acapture are housed under the umbrella of Payvision Group. Awarded with “Best Acquirer” at MPE Berlin 2016 and ‘Best Merchant Acquirer/Processor’ at the 2015 Payments Awards, Payvision is one of the fastest-growing global acquiring networks in the world.

Together with its subsidiary company, Acap-ture – a new, scalable, streamlined alternative payment platform, Payvision combines the experience of an industry leader and the flex-ibility and speed of a start-up, not tied to the out-of-date legacy platforms. Payvision Group gives clients access to a full suite of omni-channel tools behind one central interface and maximizes merchant revenue. Merchants have now the opportunity to migrate away from their multi-vendor strategies and implement a totally

integrated, end-to-end platform for all their payment processing.

Payvision Group is headquartered in Amsterdam, with offices in New York, Utah, San Francisco, Madrid, London, Toronto, Singa-pore, Tokyo, Hong Kong, Macau and Auckland.

Please visit www.payvision.com and www.acapture.com for more information.

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PAYVISION 33

ABOUT THE AUTHOR KEIRA MCDERMOTT

Keira McDermott has been the B2B Content Writer for Payvision since 2014. Prior to joining Payvision, she worked as an Online Marketing Specialist for Belkin.

Keira is a graduate in English from Oxford Brookes University. She is the author of the Payvision white papers including KEY BUSI-

NESS DRIVERS AND OPPORTUNITIES IN CROSS-BORDER ECOMMERCE 2014 AND 2015, THE MOBILE PAYMENTS REVOLU-TION 2015, and PROFITABLE OMNICHANNEL RETAIL. She is also author of the Payvi-sion INFOGRAPHICS, available to download on the Payvision website.

linkedin.com/in/keiramcdermott

ABOUT THE EDITOR ROLF VISSER

Rolf Visser is the Vice President of Global Marketing at Payvision, an independent global card processor for the ecommerce industry. In an expanding cross-border ecommerce market, Payvision is one of the fastest-growing global acquiring networks, connecting Acquiring Banks, PSPs, ISOs and their merchants to ONE Global Acquiring Platform, based on a non-competitive partnership model.

Rolf is also the Founder and Chairman of the CBEC (Cross-Border Ecommerce Community), a strategic global cross-border knowledge hub for the ecommerce industry. The CBEC focuses on sharing research and knowledge, thus

educating the ecommerce market in a variety of disciplines and industries.

Rolf is a graduate in Digital Internet Marketing with Highest Honors from Beeckestijn Business School at VU University of Amsterdam, with 12 years’ experience in the retail POS industry prior to 12 further years’ experience in inter-national marketing. The last seven years of his work have been in the payment industry.

Rolf has a forward thinking marketing vision, introducing content strategies and holistic, inbound marketing techniques and an award-winning business model, helping trans-form and elevate businesses through brand equity. (linkedin.com/pub/rolf-visser/)

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PAYVISION 34

http://www.payvision.com/infographic

https://www.linkedin.com/in/keiramcdermott

http://nl.linkedin.com/pub/rolf-visser/0/473/ab6


PAYVISION 35


Key Business Drivers and Opportunities in Cross-Border Ecommerce 2015

CONNECTING THE DOTS

ONE FULL SERVICE PAYMENT PLATFORM FOR ALL YOUR TRANSACTIONS. GLOBAL DOMESTIC AQUIRING WITH THE SAME QUALITY IN EACH REGION.

PAYVISIONCONNECT AND GROW

Payvision Payvision Payvision Payvision

Payvision

Payvision

Payvision

Payvision

Payvision

Payvision

Payvision

OFFICES

DEVELOPMENT CENTER

LEGEND

HQ

ACQUIRING BANKS / BIN SPONSOR

MadridAmsterdamLondonNew YorkTorontoUtah

Tokyo

Hong Kong

Macau

Singapore

Auckland

GLOBAL AQUIRING NETWORK

OMNICHANNELPAYMENTS

PAYMENTEXPERTISE

RISK & FRAUDMANAGEMENT


PAYVISION 36


PAYVISION, AN INDEPENDENT GLOBAL CARD

PROCESSOR, OFFERS INTERNATIONAL PAYMENT

SERVICE PROVIDERS AND ISOs UNPRECEDENTED

BUSINESS OPPORTUNITIES BY CONNECTING

THEM TO ACQUIRING BANKS IN OUR GLOBAL

CARD PAYMENT NETWORK. PAYVISION HAS THE

IN-HOUSE EXPERTISE TO OFFER GLOBAL DOMESTIC

ACQUIRING FOR CROSS-BORDER ECOMMERCE.

PAYVISION PROVIDES ITS CUSTOMERS WITH:

ONE

ONE PAYMENT PLATFORM FOR GLOBAL CARD PROCESSING• GLOBAL DOMESTIC ACQUIRING

WITH THE SAME QUALITY IN EACH REGION

• 150+ TRANSACTION CURRENCIESAND REGIONAL CARD SETTLE-MENT CURRENCIES

• RISK AND FRAUD MANAGEMENTSOLUTIONS

• ONE SINGLE HIGH-ENDREPORTING INTERFACE FOR WORLDWIDE TRANSACTIONS

• ONE INTERNATIONALLYAPPROVED RISK AND UNDER-WRITING PROTOCOL

• COST REDUCTION AND OPTIMIZA-TION FOR PROFITABLE CROSS-BORDER ECOMMERCE

• 24/7 SUPPORT

FOR MORE INFORMATION VISIT WWW.PAYVISION.COM

PAYVISION


PAYVISION 37

PAYVISION LAUNCHES ACAPTURE, THE COMPLETE GLOBAL PAYMENT PLATFORMEmpowering online merchants to make flawless cross-border transactions

Amsterdam, the Netherlands – Wednesday, September

23, 2015. Payvision, one of the world’s fastest growing

acquiring networks, is delighted to announce the launch

of Acapture, a brand new global omni-channel PSP.

Designed specifically to meet the needs of cross-border

ecommerce PSPs and merchants, Payvision’s daughter

company offers the most comprehensive payment

solution available for boosting conversion rates in the

world’s top 25 emerging economies.

“ FOR MORE THAN A DECADE NOW, PAYVISION HAS BEEN

ONE OF THE MOST DYNAMIC INNOVATORS IN THE

PAYMENTS INDUSTRY.

“THE LAUNCH OF ACAPTURE CONTINUES THAT TREND. IT

IS A SOLUTION THAT SMASHES THE BARRIERS THAT

HAVE, FOR TOO LONG, SLOWED DOWN

INTERNATIONAL ECOMMERCE GROWTH.” RUDOLF

BOOKER, PAYVISION CEO AND FOUNDER.

Regardless of the currency being used or the preferred

payment method in the region, with Acapture, transac-

tions are handled through a single, simple and secure

system. This platform has been used over the last

year by Payvision’s existing clients, and it has proven

to be very flexible, working both in POS and online

environments. The customer pays using the method

and currency with which they are most comfortable.

The merchant gets one dependable process for all their

transactions, with customized reporting capabilities,

offering clearer data analysis.

“WE KNOW THAT MERCHANTS HAVE BECOME

FRUSTRATED WITH THE COMPLEXITY OF THE ONLINE

PAYMENT PROCESS, SO WE DECIDED TO APPROACH IT

FROM A NEW ANGLE. WE DESIGNED A PLATFORM THAT

IS SIMPLE, FAST AND STRAIGHTFORWARD TO USE.

“AS ACAPTURE IS NOT HELD DOWN BY ANY EXISTING,

BLOATED LEGACY PLATFORM, WE BUILT OURS FROM

SCRATCH TO SUIT THE MODERN MARKET. DEVELOPERS

CAN INTEGRATE OUR SOLUTION IN A DAY AND FINANCE

DEPARTMENTS GET A STREAMLINED RECONCILIATION

PROCESS. AT EVERY LEVEL OF THE SERVICE WE

PROVIDE, FROM OUR WHITE LABEL PLATFORM

FOR PSPS TO OUR READY-TO-GO SOLUTIONS FOR

MARKETPLACES, ACAPTURE MAKES THINGS EASY.”

JOHN SNOEK, VICE PRESIDENT OF ACAPTURE.

Acapture solutions are supported by Payvision’s years

of experience, deep local knowledge, ability to handle

alternative payment methods and proven security. With

ecommerce changing at a forceful pace, Payvision and

Acapture deliver the payment platform the modern

merchant needs to support their growth ambitions and

deliver international success.

“OUR AIM IS TO ELIMINATE THE OBSTACLES MERCHANTS

ENCOUNTER IN THEIR DAY-TO-DAY PAYMENTS

PROCESSES, WHETHER IT’S IN TECHNICAL INTEGRATION,

RECONCILIATION OR INCREASING CONVERSION. WE SUM

UP ACAPTURE IN FOUR WORDS: ONE SOLUTION. NO

BORDERS.” JOHN SNOEK, VICE PRESIDENT OF ACAPTURE.


PAYVISION 38

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