better cashless than less cash - innovative payment solutions · cashless payments have a positive...
TRANSCRIPT
Better cashless than less cashthe potential of digital payment methods for SMEs in Germany
Your speaker today:
Anja D. Traum Managing Director
SME Sales
We see large potential in the SME Segment
53% of SMEs believe that cashless payments have a positive influence on
their revenue
Contactless payments with card have become popular with customers and its usage increases
continuously
52% of consumer prefer to pay cashless,
among smart consumer*1 even 70% ~3.4m SME’s exist in the German market, of
which only ~0.9m offer cashless payment
30-40% of SME dealers see user-friendliness, terminal reliability & high-quality service as decisive purchase criteria
45% higher time consumption for processing cash
transaction in the back office
~2/3 of the market
consists of SMEs
Companies across various industries
benefit from cashless payments on revenue-
as well as cost efficiency-perspective
Only 37% of SMEs in Germany currently accept contactless
payments
52% of SMEs experienced that
contactless payments lead to significant faster
processing at the POS
Source: Concardis Cashless study 1 *1: Smart consumer= educated, technology savvy consumer
33
25
10
5
2
6040
No
Yes
74
of customers believe that in the future they will pay (much) more frequently cashless in the future.
of customers would prefer cashless only.
49 % 66 %
52 % 70 %
Change in payment behaviour
I more often pay with my smartphone via mobile apps from
retailers/restaurant operators.
I more often pay with a card for insertion into a card terminal.
I more often pay contactless by card.
I more often pay with cash.
I more often pay with my smartphone via mobile payment
solutions.
The payment behavior in Germany changes
2
PAYMENT BEHAVIOR AT THE POS DEVELOPS TOWARDS CARD PAYMENT-EVERY 2ND PERSON PREFERS CASHLESS
HIGHER REVENUE GENERATION THROUGH CASHLESS PAYMENT
PROCEDURES
INCREASED COST SAVING POTENTIAL THROUGH CASHLESS PAYMENT
PROCEDURES
Positive development of cashless payments for SME in Germany, particularly popular in the hotel industry and in the retail
Despite an increased interest in contactless payment, most SME fail to offer this payment method to their customers.
Cashless payments have a positive impact on e.g. revenue stream, gaining new customers and increase of amount on receipt
Every 2nd German customer is more price sensitive if there is cash only
Accounting-related processes, cash desk settlement and transportation of cash to the bank are most time-consuming actions
Significant efficiencies can be reached by interlinking backend processes & systems
Cashless payments provide three major opportunities for SME
4
"The processing of cash payments requires a full monthly salary in
itself."(Comment from an SME interview, costs refer to one
year.)
Concardis‘ approach to tackle the German digital payment market
„Customer centricity stands in the
middle of all our activities – we create
solutions that perfectly serve the needs
of our customers“
Bankkartenforum September 2019 5
Through a customer-centric perspective we create a holistic approach in our product design
CommercialComplete product lifecycle ownership including marketing, pricing and commercial rational
ChannelsOffer propositions based on customer behaviour in various channels and segments
CustomersDesigned customer experiences through innovative products and services
OpportunitiesAlways keeping in mind potential new business
opportunities during idea generation
PerformanceLifecycle management
and monitoring for continuous product
innovation
5
Incorporating a radical customer-centricity creates new approaches to fulfil customer needs
2. Target Segment(s)
Definition of focus
segment(s) for „digital“
focus of upcoming
digital initiatives
3. Persona(s)
Developing personas
based on customer
segmentation and
identify persona'
needs /Pain Points
4. Customer
Journey(s)
Creation of overall
product
management unit
journey; deriving n
customer journeys
for specific
persona(s)
5. Product
Roadmap(s)
Creation of strategic
digital roadmap
based on customer
journey(s) and
commercial
outcomes
6. Requirements
Deriving
requirements from
overall product
roadmap
Collaboration model
between Bus & IT to be
developed, and feedback
loop into Roadmaps
Implementation
Creation of Epics and
User Stories for
sprint start 1. Vision
Development of
common vision
within Product
Management and
the Product vertical
6
Our new product SmartPay
Our take-off into the future: SmartPay
Secure & Reliable
Progressive & Innovative
Smart & Simple
Customer focused
New target operating model
New platform
All in One
Flexible & Adaptable
New sales strategy
End2end digitalized processes Product order onboarding
New strategy for product management
New sales channels New target customers New service approach
Merchant portal with various functions & services
Omnichannel availability
• Various sales channels – digital and personal
• Focus on self-service, sales hubs etc.
7
SmartPay provides a digitized end2end process to our merchants
One daily deposit reduces line-item bank fees
Receive money in 2 days for all card types
Gross settlement (transaction amount = deposit amount), fees taken monthly
Easy reconciliation
Simple, online application
One sign up for all of your payment needs
One contract for your card device and all cards types
Plug-and-play setup
Same simple fee structure for all card types
Channels:Payment Methods:
24/7
Next Day Hardware Deployment and
Maintenance
Single Point of Service, via Email,
Online, Phone
Merchant Portal with Easy Reconciliation
Dashboard
All card and payment types, across channels included in one package
Fully digital and web-based reporting and servicing
Coverage for All Payment Type, POS + Online
Easy, Fast Sign Up and Set-upOne Daily Settlement,
Fewer Bank FeesOne Vendor, One
Contract
Online Portal For Reporting &
Reconciliation
8
Our app makes portal features available on the go
Business Insights
Dashboard
Transactions &
PaymentsEasy Customer Service
10
Our new brand promise
From transaction-processor to business booster
We rethink our customer promise
CHANGE PERSPECTIVE CHANGE PORTFOLIO CHANGE PROMISE
• We think payments new
• We understand the needs of different industries
• We consistently think and act from a customer-
centric perspective
• We consistently develop our product portfolio
further
• We provide user-friendly technologies
• We provide personal and comprehensive
customer service
• We make easy-to-understand products
• We have longtime experience in providing high-
quality customer service
• We have a deep know-how as a big player in the
payments industry
11
What characterizes our customers?
The interest in their business
We think customer-centric and approach our customers on an emotional level
The fascination of being self-employed and the opportunity to realize their dream
Their commercial success
12
ENTREPRENEURIAL SPIRIT
We re-think digital payment:Perspective, portfolio, brand promise
We use real customers as brand ambassadors
In the beginning of September 2019 we have started a new media campaign
We are present on all channels; Facebook, YouTube, different Websites (womenshealth.de) and Instagram
We have created a new website to purposefully approach our new target group
We create a more digital appearance; our products and services can be purchased fully online
13
Our product: SmartPayOur message: Concardis pays off
We think and act purely customer centric
We build relationships with our customers and tell stories together
We trigger emotions in our customers
We provide the best possible solutions for our merchants and their business
We inspire and motivate our (potential) customers to go their way
14
Our aim is a close relationship to the customer: digitally & personally
2121
Self-service (desktop & mobile)Digitized offer and onboarding for SMEs
Tele salesCompetent advice, support and sales via phone
Field salesAdvice and sales closure through a local sales consultant
Sales hubsOnline booking of appointments in one of our new sales hubs in i.e. Berlin, Mannheim, Munich
16