u-commerce: fueling economic growth with electronic payments mark burbidge, svp and gm, e-visa joint...

U-commerce: Fueling economic growth with electronic paymentsMark Burbidge, SVP and GM, e-Visa

Joint UNCTAD - UN ESCAP Asia Pacific Regional Conference21 November 2002

Every economy needs secure, efficient and

reliable payments to grow

Electronic Payment Enables Commerce

Visa: World’s Largest Payments Engine

One billion cards in use globally

805,000 ATMs worldwide

US$2.3 trillion in global card sales in 2001

More than 21,000 members worldwide

40 payments each second in Asia Pacific

More than 50%

of e-commerce transactions are made with Visa

25 billion transactions a year

Universal Commerce

anywhere, anytime, any

way

POS

e-commerce

Fu

nct

ion

alit

y

Merchant Terminals, MOTO, PCs, Cell Phones, PDAs, Trading Hubs, etc.

Access points

Credit, Debit,Digital Wallets,

Multiapplication Chip, XML, etc.

u-commerce

m- commerce

Standards

Security

Trust, confidence,

ease of use

Putting the Infrastructure in Place

Defining a Secure Payment

Security

Authentication

Confidentiality

Integrity

Online Retail Market is Growing

US$M

Source: IDC 2002

Forecast B2C Commerce Market SizeAsia Pacific (exclude Japan)

Trend: Internet Usage Experience

Source: www.consult (data for Hong Kong)

Regular Internet Users’ Shopping Experience

Trend: Online Shoppers are Young

Source: www.consult, data for Taiwan

Percentage of Online Shoppers by Gender

Less than 15

Over 55

50 to 54

45 to 59

40 to 44

35 to 49

30 to 34

25 to 29

20 to 24

15 to 19

Male1%

8%

34%

16%

6%

1%

0%

1%

2%

4%

11%

22%

33%

20%

5%

0%

33%

Female

71 69 65 6252

29 31 35 3848

0

20

40

60

80

100

1H00 2H00 1H01 2H01 1H02

Male Female

Trend: Women are Catching Up

Internet users (China)

%

Trend: Proven Market Place

Source: www.consult, data Hong Kong

Repeat Purchasing by Product Segment

0

10

20

30

40

50

Bo

oks

Co

nce

rtti

cket

s

Fo

od

Mu

sic

Tra

vel

Ele

ctri

cal

app

lica

nce

s

Co

mp

ute

rh

ard

war

e

VC

D/D

VD

Flo

wer

s

Clo

thin

g

PC

Mag

azin

es

Fu

rnit

ure

Gam

es

To

ys

Once Twice More than twice

%

Consumer Concerns

Source: www.consult

Concerns About Online Shopping

Higher Security Means Higher Spend

Verified by Visa Average Transaction

2002 Averagee-Commerce Transaction

PercentDifference

Issuer A:CreditDebit

$130$118

$99$60

+32%+96%

Issuer B:CreditDebit

$227$140

$138$63

+64%+121%

Issuer C:Credit $207 $89 +133%

Prescriptions

Embrace payments technology for economic development

E-payments remove friction, increase efficiency => strengthen the economy

Support evolving structure of u-commerce

Strengthen domestic banking system

Review and align infrastructure with opportunities

Eliminate regulatory barriers to innovation

Summary

Electronic payments enable commerce and economic growth

Universal commerce