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From Illusion to Reality:
“Turning the World into a Practical E-Global Mall”
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Introduction:
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“Witnessing Cross-Border Successes Daily, Allows Vantiv & Credorax to ‘Knowledge-Share’ with other U.S. Industry Players Looking to Slice off a Piece of the Lucrative Global E-Commerce Pie”
• 85% Cross-border transactions from 188 different countries
• Merchant Acquiring Banking licenses in Europe, Asia & U.S.
$1.316 Trillio
n
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Limitless Global Opportunities
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© 2015 Vantiv, LLC. All rights reserved.5 05/01/23
United States Vs. Global Markets
Projected eComm Sales for the 10 Largest Markets
Others Countries Among Top 10United States
E-commerce sales volume growing at ~12% annually
ROW combined growing at over 17% each year
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© 2015 Vantiv, LLC. All rights reserved.6 05/01/23 6N
Top 10 Markets by 2020
$1.8T
(China)
$700B(U.S.)
$141B
(Japan)
$134B
(Germany)
$166B(UK)
$67B(France)
$63B(Canada)
$47B(Russia)
$36B(Brazil)
$62B(S. Korea)
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© 2015 Vantiv, LLC. All rights reserved.7 05/01/23 7NR
Market Assessment: Hype Vs. Reality
• 1% shop online and only 2% will by 2020
India
Brazil
• Low cross-border shopping online
• Very complex regulatory env’t
• Very rapid move to online channels with 13% increase year-over-year
• Among the most frequent online shoppers in world
• Similar payment method mix to U.S.
HYPE REALITY
Germany
UK
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Turn Yourselves into the ‘Go To’Cross-Border PSP for Your Merchants
8NR
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9N
STAGE 1: Transparent Assessment“Be a Transparent ‘Go Global’ Advocate for your Merchants, Because it May Not Work for All”
Assessment Audit For Your Merchants: •Will Your Product Appeal Beyond U.S. Borders?•Do You Have Cultural/Language In-House Expertise?•Will ROI outweigh the Financial Investment Necessary?•Can Your Web Site adapt to Local Requirements?•Have You considered Supply Chain Requirements? •Do You have the Resources to Continue to Nurture Local Longevity (post market launch)?
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10R
STAGE II: Local EU Business Entity – A Must!
“Help Your Merchants Find the Right Partners to Set Up a Local
Entity”
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11N
STAGE III: Pick the Right Acquirer
“Selecting the Right Merchant Acquiring Bank Can Make or Break Your Cross-Border Success”
PSP Acquiring Audit:•Local EU Banking Licenses•Understands Complex Regulatory Environment•Local Offices: Cultural/Language Natives•Can Seriously Reduce Banking & Exchange Fees
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Be Aware:When Selecting An Acquirer, Make Sure You are Fully Aware of the Challenges & Solutions
12R
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13R
Choosing the Right Merchant Acquiring Bank
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14R
Complex Reality of Going Global
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15R
Front End(authorizatio
n) Integration
Supportand account management
Reportingharmonizatio
n
On-boardingand KYC cost
Back Office(funding andsettlement)integration
45-150Kper acquirer6-10 weeks
30-40Kper acquirer
per year
20-100Kper acquirer
per year
2-15Kper retailerper acquirer30-60 days
350-500Kper acquirer6-12 months
Source: Consult Hyperion 2015
High Up-Front Costs for Multiple Merchant Acquiring Bank
Integrations
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16R
New Entrants, Consolidation Lead to Reduction in Dependencies
POS Terminal
s
Billing
Accounting
e-Com Solution Provider
s
Banks
CardSchemes
LogisticsPSPPayment Service Provider
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OVERVIEW CHALLENGESIndustry: Computer games - MMO ‘free-to-play’online action games (iWorld of Tanks)
Customer Profile: •Revenue: Exceeding €200 million•16 global offices/development centers•140 million international online users Location: HQ in EU. Global traffic including from U.S., Asia & EU (occasionally)
Reduce number of global-local
acquirers
Minimize revenue loss from card
declines
Decrease online fraud incidents
SOLUTIONAward Winning Alliance Global Unified
Acquiring Platform
Multiple bankinglicenses
Consultative account management
ePoweradvanced technology
Approval rate analysis & optimization
Customized fraud management reports and processes
Credorax WireCapital
Exemplary ‘True’ Global E-Commerce
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RESULTSStrengthened ROIvia approval rates
* Quarter Avg.
Increased processing volume
CountriesWorldwidein 2015 witha single acquirer
Processed card transactions from
Jan 2015
Dec 2015
200%
6.3%Approval Rate
83%above benchmark
125
Achieved maximum scalability
Fraud Drastically Decreasesover 1% Decrease during 2015
Chargebacks: Consistently Low
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STAGE IV:Ongoing “Reality Check, One SizeDoes Not Fit All”
19RN
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I may not have the I may not have the answer, but I’ll find answer, but I’ll find it,it,I may not have the I may not have the time, but I’ll make time, but I’ll make it.it.Client Client AdvocacyAdvocacy
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© 2015 Vantiv, LLC. All rights reserved.21 05/01/23
FOCUS I: Fraud Mitigation Strategies
• General Rule:“The nature of payment fraud—and techniques to counter its impact—widen outside the U.S.; Fortifying yourself prior to entering high-risk markets is imperative”
• Merchant-Specific Rules: “Every merchant is different and as such you need to execute the right fraud mitigation strategies and tactics that best meet each one’s specific needs”
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& 22R
Industry: • E-commerce• Pan-European
commerce
Customer Profile: • SME & Enterprise retailers
• Over 90% concentration on SME market
Location: • HQ in Munich,
Germany• Worldwide presence
CHALLENGETranscend traditional ‘ONE-SIZE-FITS-ALL’ acquiring with a flexible, strategic, long-term partner
31 42
Solution ArchitectsCustomized solution for Paymill’s specific needs
Designed CustomSolution Blueprint:
Assessed Client:Targeted pain points
Cloud-based digital onboarding portal:•‘Merchant journey’ view:
•Real-time Communications Window:
Supportive onboarding process & tools: •Electronic Merchant Application Form (MAF)•Automatic KYC wizard: customized per merchant profile•Pre-agreed fixed merchant pricing/terms
Implemented Bespoke Technology Solutions:
Application – KYC - MID
Embedded, live client-sales operation managers dialogue
All-hands-on-deck: CCO to SOMApproval rate analysisTarget merchant profile optimization
Provided Continuous Consultancy:
FOCUS II: Customized Technology & Business Solutions
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23R
RESULTSOnboarding: Expedited Time-to-marketIncreased Processing Growth
Achieved High Approval Rates
2015
1,100%
2016
4X Faster in 1 Year
PAYMILL OVERALL TOP MERCHANTTOP 3 MCC CODESbenchmark aligned
90%+ 92.5%
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24RN
“Critical to analyze and investigate why cards are declined and advise merchants on steps they must take to optimize their payments”
•Declines vary from Merchant to Merchant•Numerous Reasons for Declines•High Approval Rates Mean Higher Conversion Rates, which Lead to Higher Revenue
FOCUS III: Approval Rates
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Questions & Answers
Rod R. KatzfeyVP of Sales & Business Dev. NACredorax Bank North America,MALPB USA [email protected]
Neeraj GuptaSenior Product Managervantiv [email protected]
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