Table Of ContentOnline Payments and Ecommerce
Market Guide 2016
INSIGHTS INTO GLOBAL ONLINE PAYMENTS AND ECOMMERCE MARKET
The guide provides a clear understanding of the The most valuable source of information and guidance
main trends and expectations in the industry. The MRC for all parties interested in the current state of affairs of the
relies on this resource to build better commerce payments and ecommerce industry
Danielle Nagao | CEO | MRC Paul Alfng | Chairman e-Payments Committee | Ecommerce Europe
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Online Payments and Ecommerce
Market Guide 2016
INSIGHTS INTO GLOBAL ONLINE PAYMENTS AND ECOMMERCE MARKET
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Editors
Mirela Amariei
Tiberiu Avram
Daniela Ciobanu
Oana Ifrim
Anda Kania
Emil Juverdeanu
Sebastian Lupu
Mihaela Mihaila
Madalina Mocanu
Andreea Nita
Adriana Screpnic
RELEASE VERSION 1.0
NOVEMBER 2016
COPYRIGHT © THE PAYPERS BV
ALL RIGHTS RESERVED
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Editor’s Letter
It is widely recognized that the development of the money And since consumers are always key to business, it is imperative
economy has been essential to the evolution of human history. to track the main distinguishable developments in their behaviour.
With the advent of electronic or digital forms of money replacing Firstly, there is an increased demand for customer-centric service
paper and coin at a rapid pace, the world has witnessed money models: anytime, anywhere, any device. Secondly, a demand for
transformation stages from something we hold in our hands to faster deliveries has arisen. We have elaborated on both in this
abstract units, i.e. numbers/value we move around the internet. year’s edition of our Ecommerce Payment Methods Report.
As The Economist already pointed out in 2007, "cash, after Ease of use and frictionless transactions have always defned
millennia as one of mankind's most versatile and enduring the terms for omnichannel success. Consumers’ expectations
technologies, looks set over the next 15 years or so fnally to melt regarding a richer, more personalized and seamless journey will
away into an electronic stream of ones and zeros". Against this also continue to evolve in the future. Industry players who are not
backdrop, it has been only a natural step for digital commerce capable of capturing the fundamental importance of a seamless
to become a growth imperative for small and large businesses experience will struggle to survive.
worldwide, not only to sell to customers, but also to engage
them. At the same time, the payments industry - lying at the heart The future of the payment is not in the payment itself
of digital commerce - has evolved into a complex ecosystem or the payment mechanism, but in what the payment does
comprised of merchants, issuers, acquirers, card schemes, for the customer and the merchant contextually.
payment service providers, processors and technology providers, Brett King | Author | Breaking Banks
all occupying unique positions in the ecosystem.
Regulation, another trending topic, continues to play a vital role
The Context in determining the future evolution of payments. The adoption
The present edition of The Online Payments and Ecommerce of the revised Directive on Payment Services (PSD2) has set the
Market Guide covers the main developments and trends – stage for open banking in Europe. By providing standardised
technological, regulatory and international – that are top of access to customer data and banking infrastructure, PSD2 will
mind for global payment executives, and not only. These topics lower the barriers for entry to third-party providers and fnancial
prove to be signifcant success factors in mapping the strategic technology companies (fntechs). In this current edition of our
thinking of merchants, banks, card companies, processors and Guide, we explore the impact of regulation on the payments
technology providers as they determine the best path and the ecosystem, analyzing whether it helps or hinders innovation.
right partners. And, since stories in the media are a constant reminder that in a
world of dynamic technology and evolving consumer behaviour,
In conducting ecommerce operations, cross-border and authentication and security can always be better and more
omnichannel remain essential strategies with signifcant impact effectively performed, regulations to improve data protection and
on capturing and harnessing the market potential. Cross-border the security of payments will have signifcant implications on the
ecommerce has been developing at such a rapid pace that it way individuals and companies do business online. ➔
has already become a key generator of future business growth
strategies for all participants in the industry, including payment
gateways or technology providers, merchants, postal and
logistics companies.
The omnichannel experience continues to change the way
businesses sell and, more importantly, it contributes directly to
the diversifcation of the payments plethora for consumers.
3 ONLINE PAYMENTS AND ECOMMERCE MARKET GUIDE 2016 | EDITOR’S LETTER
➔ The mobile (r)evolution. The mobile commerce ecosystem is This report is greatly enhanced by the contributions of some
at the heart of a revolution that is fundamentally changing how of the most authoritative industry voices (Chris Skinner and
retailers and consumer engage with one another while online, Neira Jones), top industry players, including Visa, PayPal, ACI
in-store and via social media. M-commerce development in the Worldwide, Adyen, Acapture, PayU, as well as relevant strategic
coming years is set to be marked by continuous growth, thus insights from consultancy/ technology or market research
reconfiguring the retail sector and the consumer behaviour: companies (Edgar Dunn, Aite Group, Juniper Research, yStats,
according to a BI Intelligence report, mobile commerce will make Innopay) or expert opinions from key associations/ regulatory
up 45% of total ecommerce by 2020, equaling USD 284 billion bodies or industry forums (Merchant Risk Council, Emerging
in sales. That is more than three times the prediction for 2016. Payments Association, Euro Banking Association).
Banking. Antony Jenkins, the former CEO of Barclays, talks Part 2 presents in-depth company profiles mapping out key
about banks being at an "Uber moment" and argues that pressure players in the global online payments space, including
from new technology-based competitors "will compel banks processors, acquirers and alternative payment methods.
to significantly automate their business". With the increased Furthermore, companies will also be featured in our
ubiquity of the mobile internet, such as increasing fintech comprehensive PSP and Alternative Payment Methods
competition and the wave of new challenger banks, banks database, allowing readers unprecedented access to global
of all shapes and sizes will have to remain focused on giving industry players.
customers the banking services they want and deserve or,
otherwise, risk losing business. We would like to express our appreciation to the Merchant
Risk Council and Ecommerce Europe - our endorsement
Blockchain: the next big thing? Fintech investment in blockchain partners who have supported us year after year – and also to
technology could be revolutionary as it replaces the core fnancial our thought leaders, participating organisations and top industry
infrastructure and allows banks to rethink legacy systems that players that contributed to this edition, enriching it with valuable
could work more effciently. Whether blockchain will eventually insights and, thus, joining us in our constant endeavour to
end up replacing the current fnancial infrastructure nexus -or not depict an insightful picture of the industry. Enjoy your reading!
– it remains to be seen.
Adriana Screpnic
Guide Structure Editor-in-Chief, The Paypers
In order to grasp the complexities of the changing business
landscape, this year`s edition features a 2-part structure. Part 1
is dedicated to thought leadership contributions and initiatives in
the feld of online fnancial services, featuring various contextual
approaches for online transactions at a global or regional level, as
presented by key industry players, either in the form of an exclusive
interview or an elaborate article. Such contributions serve as best
practices, food for thought and inspiration for evolution within the
ever-changing digital commerce and payments space.
4 ONLINE PAYMENTS AND ECOMMERCE MARKET GUIDE 2016 | EDITOR’S LETTER
Table of contents
3 Editor’s Letter
7 Thought Leadership
8 Omnichannel and Big Data
9 Data Is Money: Why Data Science Is the Future of the Payments Industry | Nathan Trousdell,
Director of Strategy & Corporate Development, Acapture
11 POS Terminals Within the Omnichannel Environment | Ralf Gladis, Founder & CEO, Computop
13 Payment Data: Valuable Insights to Drive Proftability on Merchant Sites | Gabriel de Montessus, CEO, HiPay
15 Omnichannel Commerce and Big Data | Jörn Leogrande, Executive Vice President of Mobile Services, Wirecard AG
17 Is a Data Protection Offcer Mandatory for Your Company? | Edwin Jacobs, FinTech lawyer, time.lex
20 Mobile (R)Evolution
21 What Does the Rise of Mobile Really Mean for Global Retailers | Roelant Prins, CCO, Adyen
23 Smartphone Adoption Is Transforming the US Consumers Payment Preferences | Tim Spenny,
Card and Payments expert, GfK
25 How Your Smartphone Will Replace your Wallet and Why that’s a Good Thing | Markus Bergthaler,
Director of Programs, MRC
28 Expanding Ecommerce across Borders
29 How to Adapt Your Strategy to Consumer Behaviours in Emerging Markets | Matthias Setzer,
Chief Commercial Offcer, PayU
31 International B2B Payments Crossing Borders without Delays and High Fees | Anders la Cour,
Co-founder and Chief Executive Offcer, Saxo Payments
33 European Markets Refect Diversity in Payment Methods for Online Purchases | Tatiana Teplova,
Head of the Research Department, yStats.com
35 Driving Ecommerce Growth
36 The Role of Payment Acceptance in Driving Ecommerce Growth Strategies | Markus Rinderer,
Senior Vice President, ACI Worldwide
38 IoT and the Connected Consumer | Steffen Sorrell, Senior Analyst, Juniper Research
40 Can You Digitalise a Pizza? Food Delivery Services Are Going Through an Extraordinary Change | Mark Beresford,
Director, Edgar, Dunn & Company
42 Exclusive interview with Charles Brewer | Chief Executive Offcer, DHL eCommerce
5 ONLINE PAYMENTS AND ECOMMERCE MARKET GUIDE 2016 | TABLE OF CONTENTS
Table of contents
45 PSD2 and Impact on Payments Ecosystem
46 PSD2 – A Call to Innovate | Peter O'Halloran, Vice President & General Manager, eCommerce, EMEA, First Data
48 What the PSD2 (Payment Services Directive 2) Is Changing for Merchants and Their Customers | Pascal Durdu,
Head of Business Strategy & Product Management for Merchant Services, Worldline
50 Pushing PSD2 Push Payments | Tim Richards, Principal Consultant, Consult Hyperion
52 PSD2: Opportunities and Challenges for Payment Stakeholders | Vincent Jansen, Principal and Mounaim Cortet,
Manager Strategy, Innopay
54 Payment Services Directive 2: Goodbye to Home Country Shopping? | Nadja van der Veer, Co-Founder, PaymentCounsel
57 Optimising Payments
58 Simplify Your Payments with a Tailor-Made Strategy | Thibaut Faurès Fustel de Coulanges, CEO, Be2bill
60 Nine Ways to Optimise Your Payment Pages and Boost Conversion | Elie Casamitjana, Global Lead,
Offering & Go-To Markets, Ingenico ePayments
62 Cutting-Edge Technology Helps PSPs Optimize Processes and Portfolio | Thomas Pietsch, Business Operations,
Project Management and Compliance specialist, ONPEX
65 Payment Innovation
66 The Future of e-Money | Jens Bader, Chief Commercial Offcer, Secure Trading
68 Exclusive interview with Neira Jones | Advisory Board Member & Ambassador, Emerging Payments Association
70 A Cashless Future Is Around the Corner | Luca Cassina, General Manager, PayPal
72 The Challenge of Customer Due Diligence in Online Era: Changing the Mindset | Victor Dostov,
President and Pavel Shoust, Executive director, Russian Electronic Money Association
75 Bank (R)Evolution
76 Long Live the Bank Account: Why the Bank Account Is Becoming Increasingly Relevant | Stefan Backlund,
Head of Marketing and Communication, Trustly
78 Exclusive interview with Chris Skinner | Chairman of the Financial Services Club
80 Exclusive interview with Thomas Egner | Secretary General, The Euro Banking Association
82 The Programmable Bank | Ron van Wezel, Senior Analyst Retail Banking & Payments Practice, Aite Group
85 Fintech Developments
86 Exclusive interview with Todd Latham | CMO & Head of Product, Currencycloud
88 Payment Services Future Is Fintech | Christophe Bourbier, Chairman CEO, Limonetik
90 Spotlight on Card Schemes
91 How Visa Drives Payments Innovation | Daniel van Delft, Country Manager for The Netherlands, Visa
93 Exclusive interview with Diane Offereins | Executive Vice President, President – Payment Services, Discover
95 Part 2 – Company profles
172 Glossary
6 ONLINE PAYMENTS AND ECOMMERCE MARKET GUIDE 2016 | TABLE OF CONTENTS
Thought Leadership
Omnichannel and Big Data
Acapture
Data Is Money: Why Data Science Is the Future of the Payments Industry
Back in 2013, IBM told the world that 90% of its data had been From a security point of view, data science is equally valuable. By
created during the previous two year period. Three years later, tracking and studying the patterns and activities that surround
it is clear that the era of Big Data is here to stay. What is less past fraudulent transactions, we can optimise the processes we
certain, however, is what the average business should be doing use to prevent future fraud with a revolutionary level of effciency
to take advantage of the situation. and accuracy.
For those of us in the omnichannel payments industry, however, Data in action
there can be no hesitation. Data science gives us the chance Though the results of data science are compelling, in action it
to offer a new standard of payment services to merchants, with is a rigorous, exacting and time-consuming process. That’s why
solutions that adapt based on systematic analysis of the oceans the only way to employ it in your business is as part of a strict,
of key data accrued from the long list of potential sources: from monitored and strategic approach. Plus, you need some
sales channels to public government information to social media specialists on board who are passionate about payments and
data and more. willing to devote hours to extensive data mining.
Merchants have a right to demand solutions from PSPs that use At Acapture, we have deployed our Data Science Team to work
every possible tool to improve revenue and reduce risk. If you are on maximising the revenue of our clients. Through deep analysis,
not taking data science seriously, you simply can’t claim to be the team identify what card types or banks might be commonly
doing everything in your power to support your clients. So, how at the root of declined transactions and assess the potential
does data science ft into the modern payment mix? And what causes.
should merchants be expecting from PSPs in the Big Data age?
Then, it allows the merchant to route future transactions differently,
The power of information so they are more likely to gain acceptance. They can also report
While the potential uses of data in the payments industry are back to the merchant with advice on technical changes that is
many, two areas in particular stand out as benefiting the most backed up not only by experience but also by a solid, scientifc
from intelligent data science: security and authorisation. Let’s take breakdown of their recent transaction history.
the latter issue frst.
As well as improving the chances of legitimate buyers being
In the past, a merchant would receive reports back from their accepted, data is equally useful to ensure that fraudsters are
PSP with a list of transactions, noting which ones were declined kept at bay. Since the dawn of ecommerce, PSPs have struggled
and which ones were approved. No insight was offered into why to strike the right balance when it comes to risk management:
declines were happening or how they could be prevented from keeping things loose enough to protect conversion rates while
happening again. The results were infexible facts leaving the providing enough protection to eliminate fraud.
merchant with no clue as to how to use them.
By approaching risk scientifically, we can identify customers
PSPs are now crunching the data behind the numbers, breaking and track behaviour based on website profles, device usage,
down the patterns and motivations of consumers, as well network usage, customer behaviour and more. This makes it
as how this relates to whether a transaction was approved or increasingly difficult for online scam artists to operate from
declined. This way, rather than hand back a long list of complex their traditional hiding places, while guaranteeing that honest
information, they can return concrete advice on technical tweaks customers are rarely locked out by mistake. ➔
that will eliminate obstacles in the authorisation process.
9 ONLINE PAYMENTS AND ECOMMERCE MARKET GUIDE 2016 | THOUGHT LEADERSHIP
➔ Data scien ce may even make it possib le to mi ni mise many
of the costs that merchants face when handlin g card payments ,
whi ch are determi ne d by thousan ds of com p le x an d ever-
chan gi n g ru les. I n many cases, we are ed u cati n g our c lients
Nathan Trousdell
on elements of their payment processing that they did n ’t k no w
Director of Strategy & Corporate Development about. That is the real power of data scien ce – it alows us to
Acapture
tinker with parts of the payment dynamic that were previously o f
limits. The results? Better authorisation rates, improved security
and hapier merchants.
About Nathan Trousdell: Nathan is Director of As I have already mentioned, data science is not simp le. eY t, as
Strategy & Corporate Development at Acapture, the amou nt of data grows, it wi l l be the PSPs an d ac q uirers
a Payvision company. He works with the founders that tru ly u n derstand and utilise in formation that wi l l take the
and department managers across all areas of the advantage in the increasingly competitive omnichanel payments
firm, including sales strategy, data science and arean .
product. He is also responsible for the valuation
and analysis of strategic investments and merger &
acquisition activity.
About Acapture: Acapture is a global omnichannel
PSP whose system features SlicePay for simplifed
allocation of funds to multiple parties from a
single transaction, data science management for
improved authorization rates, a one day integration
using one RESTful API, consolidated reporting,
streamlined reconciliation process and global card
acquiring and processing.
www.acapture.com
Click here for the company profile
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