- 7 November 2018 -
Housekeeping Restrooms Refreshments Mobile phones Wifi Chatham Fire drills Photographer Presentation House Rule & videographer slides
Agenda Overview Morning… Plenary sessions with CMSPI and big payments debate round 1 Early afternoon… Breakout sessions covering; cash, card and future Late afternoon… Keynote talk with and big payments debate round 2
Speakers
Hosted by CMSPI Dedicated, independent payments consultancy Specialists in payments industry research and merchant advocacy Office locations in UK, USA and Singapore Negotiate over €350 billion per annum Awards – Financial Times Future 100, Compass Group and Subway Like to begin conferences with overly dramatic videos
Slido
- 7 November 2018 -
Opening remarks: what does Brexit mean for payments? Lord Hodgson – Chairman, CMSPI
- 7 November 2018 -
The Transitioning Payments Landscape - Brendan Doyle, CMSPI CEO - - 7 November 2018 -
Objectives for the day FUTURE NAVIGATION LANDSCAPE How can What can you Understanding businesses do to navigate the changing prepare for the these payments future of changes? landscape payments?
Key Theme 1 The Changing Payments Mix
Changing payments mix 2018 2028 2008 PISPs, 15% APMs, 8% Biometrics, 9% 2008… CASH CARD OFFLINE CARD ONLINE DD Who’d heard of contactless? CHEQUE CONTACTLESS MOBILE
Have your payments costs risen or fallen in the past year?
Which is higher – the cost of card or the cost of cash?
Cost of Cards vs Cost of Cash 1.200% 1.000% 50% of IFR Savings Eroded 0.800% 0.600% 0.400% 0.200% 0.000% 2010 2015 Forecast 2020 Cash Debit Card Credit/Charge Card
Cost of Cards vs Cost of Cash Cash Costs Card Costs 1.2% 1.2% 1.0% 1.0% 0.8% 0.8% 0.6% 0.6% 0.4% 0.4% 0.2% 0.2% 0.0% 0.0% QSR Restaurant High Street Hotel Supermarket QSR Restaurant High Street Hotel Supermarket Interchange Fees Scheme Fees CIT Banking/CP Deliveries
What do you think the average cost of changing acquirer is?
Key Theme 2 The New Role of Payments
How does your company view payments? • Cost centre • Revenue driver • Source of competitive advantage [TO ADD] A source of competitive advantage
SELF-SERVICE KIOSKS GREATER EMPLOYEE FOCUS ON VALUE-DRIVING ACTIVITIES SPEED OF SERVICE UPSELLING EFFICIENCY QUEUE-BUSTING ATV INCREASES
Defining Omni-channel “ IF YOU THINK ONLY TWO YEARS AGO… If you were a customer, there were two ways you could get served at McDonald’s. You walk to the front counter, line up, take your drink and find a table, or you take the drive through. “ We’re introducing many options. Customers can order through mobile, they can come curb-side, and we’ll run it out – as well as existing traditional ways. You can pay in different ways and customise your food in different ways. Steve Easterbrook President and Chief Executive Officer, McDonald’s Corporation
Evolving View of Payments 2015 2020 COST DRIVER REVENUE DRIVER OPPORTUNITY BURDEN NECESSITY SOURCE OF COMPETITIVE ADVANTAGE ASSET LIMITED STRATEGIC VALUE
OMNI- CHANNEL
What is Omni-channel? Defining Omni-channel OMNI-CHANNEL COMMERCE MEANS… creating a single commerce experience across your brand, allowing you to present the customer with a seamless experience. This sales approach allows merchants to influence the customer journey and drive revenue increases both per customer and overall. SINGLE CHANNEL MULTI-CHANNEL OMNI-CHANNEL CROSS-CHANNEL
Omni-channel
Do you think your current supplier is innovative?
How payments purchasing has changed Today Yesterday Improving customer experience Reducing costs Processing costs Increased loyalty Upselling Scheme fees Customer insights Increased footfall Ancillary charges Gateway Optimisation Terminals Acceptance rates Chargebacks Interchange F.X D.C.C Security P2PE Tokenisation Secure Customer Authentication All within a lost cost environment
Summary PAYMENTS… mix is changing rapidly – how is your business adapting? PAYMENTS… is no longer a cost-centre but now viewed as a key revenue driver and source of competitive advantage
Break The next session will begin at 10:50am
How to navigate a disruptive market to gain a competitive advantage - Callum Godwin and Wayne Ashall - - 7 November 2018 -
Themes of the day
Themes of the day Cash Card Future of Payments Falling cash volumes Scheme fees Alternative payments - Geography considerations Innovation Omni-channel Supplier consolidation 1. Alternative payments Regulation (PSD2) Open banking 2. Omni-channel Innovation & cash office - Surcharge 3. Open banking technology -Secure authentication Customer banking 4. Customer banking -Open banking -GDPR a) GDPR -Loyalty Outsourcing b) Loyalty IFR review 5. Customer preferences Customer preferences Interest rates 6. Authentication Consolidation a) SCA -Geography Authentication Government intervention considerations b) Biometrics -SCA -Biometrics Labour costs Common standards -3DS 2.0 (NEXO) Fixed costs
3 Ke Key Ar Areas eas: Omni-channel The cost of Consolidation of functionality changing arrangements in and business suppliers Europe case
3 Ke Key Ar Areas eas: Omni-channel The cost of Consolidation of functionality changing arrangements in and business suppliers Europe case
Omni-channel Omni-channel
What is Omni-channel? Defining Omni-channel OMNI-CHANNEL COMMERCE MEANS… creating a single commerce experience across your brand, allowing you to present the customer with a seamless experience. This sales approach allows merchants to influence the customer journey and drive revenue increases both per customer and overall. SINGLE CHANNEL
What is Omni-channel? Defining Omni-channel OMNI-CHANNEL COMMERCE MEANS… creating a single commerce experience across your brand, allowing you to present the customer with a seamless experience. This sales approach allows merchants to influence the customer journey and drive revenue increases both per customer and overall. SINGLE CHANNEL MULTI-CHANNEL
What is Omni-channel? Defining Omni-channel OMNI-CHANNEL COMMERCE MEANS… creating a single commerce experience across your brand, allowing you to present the customer with a seamless experience. This sales approach allows merchants to influence the customer journey and drive revenue increases both per customer and overall. SINGLE CHANNEL MULTI-CHANNEL CROSS-CHANNEL
What is Omni-channel? Defining Omni-channel OMNI-CHANNEL COMMERCE MEANS… creating a single commerce experience across your brand, allowing you to present the customer with a seamless experience. This sales approach allows merchants to influence the customer journey and drive revenue increases both per customer and overall. SINGLE CHANNEL MULTI-CHANNEL OMNI-CHANNEL CROSS-CHANNEL
Building your omni-channel jigsaw Building your Omni-channel Jigsaw
Transforming your business Transforming Your Business
Full omni-channel solution? “ ” One complete solution EUROPE USA APAC Overall Secondary Tertiary Supplier Core Channel Channel Channel Supplier 1 78% 75% 72% 76% 51% 73% Supplier 2 21% 35% 19% 64% 12% 27% Supplier 3 95% 89% 85% 91% 0% 81% Weight 30% 25% 25% 10% 10% 100%
Finding the maximum value proposition - Cost competitive - Required use cases - Low cost - Maximised value - Low capability Value to business - Little added value - High cost - Unnecessary use cases - Inefficient LIMITED ANALYSIS Supplier omni-channel offering
3 Ke Key Ar Areas eas: Omni-channel The cost of Consolidation of functionality changing arrangements in and business suppliers Europe case
Su Suppl pplier er C Capabi pability: Pr Pre-IFR IFR 10 Number of Transactions Processed (Billions) 9 8 7 High volume > Low Spread of Active Countries 6 5 4 3 Low volume > High spread of active countries 2 1 0 European Presence – Number of Active Countries
Suppl Su pplier er C Capabi pability: C Curren ent Lands dscape ape 10 Legend Number of Transactions Processed (Billions) Catalysts for Change 9 Acquirers • IFR and Removal of 8 Scheme Tiers • Increased co-badging 7 Post-IFR 6 5 4 3 Pre-IFR 2 1 0 European Presence
Catalysts for or C Change: e: N New ew Pl Play ayer ers 10 9 Number of Transactions Processed (Billions) IFR as a Catalyst for Change 8 • Driving innovation! 7 Post-IFR 6 5 4 3 Pre-IFR 2 1 0 European Presence
Su Suppl pplier er C Capabi pability: S Separ eparation on f from om Banks 10 9 Number of Transactions Processed (Billions) IFR as a Catalyst for Change 8 • Ownership changes and specialisms 7 6 Post-IFR 5 4 3 Pre-IFR 2 1 0 European Presence
Recommend
More recommend
