lobary from payment_to_connected_commerce_in_payco _2015_11_04

Leverage digital proximity ecosystems @lobary

François Lecomte-VagniezPartner, LobaryVP Communication, EESTEL

+33 681 494 494 [email protected]

November 4th, 2015

From Payment to Connected Commerce.

Now !

mailto:[email protected]

2From Payment to Connected Commerce, Now !

Agenda : From Payment to Connected Commerce. Now !

• Contactless and mobile payments - what are challenges at POS ?

– Insuring EMV contactless acceptance at EPT

– Manage several kind of mobile payments for future convergence

– Develop a seamless cross canal payment journey

– Undertake payment as part of a “Global Mobile Experience”

• Beside payment : leveraging mobile wallets to improve customer relations

– InApp Payment : in-store and online

– Contactless EMV Payment & m-Wallet : Apple use case

– Disruptive m-Wallet : Fivory use case

• Building your own payment acceptance strategy – what are the key drivers ?


Contactless and Mobile Payment :What are challenges at POS ?


Insuring EMV contactless acceptance at POS

• Visa/MasterCard Liability Shift Compliance

– 2016 : all new EPT (*) installed must have contactless payment activated

– 2020 : all EPT must have contactless payment activated

• Some figures – France, Sept. 2015 (Source : Groupement des Cartes Bancaires)

– Nber of Bank contactless card issued : 35 million (57%)

– Nber of Commerce accepting EMV contactless payment : 330.000 (25%)

• Insuring EMV contactless acceptance is good for merchants

– It’s fast = saving time for small amount payments

– It’s convenient = less cash to manage

– It’s easy = tap & pay gesture

It’s preparing shops for EMV Contactless Mobile Payments

(*) EPT : Electronic Payment Terminal


Mobile Payment overview in Europe

• Today, Mobile Payment is mainly an Online Payment !

– Data card entry : Card user reference must be entered by user + authentication process (3D Secure)

– “One click” payment : Card user references are stored by the merchant

– eWallets : Card user references do not transit over the web (Visa Checkout / MasterPass / PayPal)

• Universal contactless mobile payment (EMV) is now starting in Europe

– Visa HCE models : several bank trials ongoing over Europe (4 in France)

– Apple Pay : after USA, it’s rolling out in UK, soon in Spain…

– SIM Based models : Orange Cash (prepaid account) and a few banks in France.

• Other mobile payment models are showing-up (semi open loop, 3 tiers model)

– Underlying Visa/MC card payment : Yapital, Fivory, etc.

– Underlying a bank wire transfer (IBAN) : Seqr, Zapp, etc.

Key aspect : Payment convergence enabling online and proximity payments


Develop a seamless cross channel payment journey

• Largest Choice• Time optimized• Best Deals

Point of Sale Online Sale


Undertake Payment as part of the « Global Mobile Experience »

Payment

CRM & Loyalty

LBSServices

Others

Locate& Guide

One-to- Oneinteraction

InAppbuy

+ Bank

Example : Apple iPhone user

Some possibleinteraction means

Your Brand© Lobary 2015


Beside payment : leveraging mobile wallets

to improve marketing relations


inApp Payment : in-store AND online

Proprietary Retail App covering a cross channel journey, between brand web site and physical shops.

• Enrolment for a « one click » payment experience

– Payment means associated to the App : Bank Card or IBAN requires

KYC process and/or e-Mandate signature

Secure identification of payment user

– Card & payment information must be store and protected by the merchant.

• Usages in a cross-canal journey

– « One click » payment on the Internet (online)Alternative : inApp payment associated to a m-Wallet (ex. : Apple Pay)

– InStore Payment

Check-out desks & vendors devices (mPOS)

Innovative Payment Experiences (Beacon)

– Hybrid Payments

Pre-payments, partial deposits, staged payments, credit, cash on delivery,…

Issues : Secured Id, non revocability, cost of transaction, data management,…


EMV Payment & m-Wallet : Apple Use Case

• Apple Pay enables universal payment transactions (card present and remote)

– The transaction remains anonymous, by nature.

• Apple Wallet is designed for storing loyalty card, tickets and coupons.

– Consumer side : Items could be added into the Wallet by compatible Services Provider’s Apps :

over Mail or Messages in Apple Apps, a web browser, barcode scanning, peer-2-peer shares over Messages or AirDrop or emails, or using a Mac laptop.

Apple Wallet is also the solution used for enrolment of EMV bank cards for Apple Pay use.

– Merchant side : Items are read by reading iPhone’s screen with a camera or scanner, or automatically for geolocalized alerts, airdrop or beacon interactions, etc.

• Apple Pay + Apple Wallet = ONE single contactless transaction at EPT

– Tests are ongoing in UK.

Issues : Limited number of iPhone 6 users, disintermediation risks


Disruptive m-Wallets : FIVORY use case

• Fivory focusses on Mobile Shopping experience

– Users can select their preferred place and deals

– Merchants can push offers and reward loyalty

• Fivory is a semi-universal m-Wallet solution

– Users must load the App and enroll with their EMV Card

– Merchant must develop Fivory acceptance scheme (QR-Code or Contactless)

• Fivory combines Mobile Payments and Smart Advantages

– User’s centric : ease of use, personalized deals, opt-in, social sharing, etc.

– Merchant’s friendly : marketing profile, localized deals, low commissions rate, etc.

It’s actually on test at Boulogne (92), Paris and Strasbourg – 585 merchants in France

Issues : Massive adoption, Acceptance Upgrades, Marketing Channel


Building your own payment acceptance strategy What are the key drivers ?


Massive acceptance & customer adoption

• Universal Payment acceptance (EMV) :

– Electronic Payment Terminals infrastructure up-to-date for contactless payments

Visa/MasterCard AND local schemes (ex. CB in France).

– Develop consumer’s habits with sales team trained and information at POS for card/mobile payments

• M-Wallets acceptance strategies (all kind)

– Interest for merchant : traffic generation, social shopping, convenience, massive adoption, etc.

– Risk for merchant : cost models, payment warranties, data ownership, complexity, poor adoption, etc.

• Overall digital proximity performance

– Quality of customer’s journey : between virtual and physical experience with the brand/shop

– CRM systems : tuned for the best one-2-one marketing approach

– Ability to manage the complexity to simplify the end-user’s experience

Multiple OS : iOS, Android, Windows Mobile…

Multiple form factors : Cards, Smartphone, Watches, Physical cookies, etc.

Multiple payment means : From EMV to close loop payments, vouchers to coupons redeem, any currencies, etc.


In Summary

• Payment – by all means – is a crucial component in the overall Digital Strategy.

• Payment acceptance is highly sensible, as it impacts the turnover :

– Cost of acceptance, risk of unpaid transactions, customer data collection.

• Massively customers deployed solutions should be preferred : “existing habits” & “installed trust”

• The merchant must keep control on customer’s data for marketing use and payment risk’s score.

Merchant’s biggest challenge in the Connected Commerce is to make the payment instant ALMOST INVISIBLE

to focus on global friendly customer relation

Leverage digital proximity ecosystems @lobary

François Lecomte-VagniezAssocié, LobaryVP Communication, EESTEL +33 681 494 494 [email protected]

Thanks!

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About François Lecomte-Vagniez, Partner, Lobary

• Global Expertise on Connected Commerce solutions

– Omni-channel customer’s journey : stimulation, loyalty, satisfaction, gamification, social engagement,…

– Technologic solution’s deployments at POS : NFC/QR-Codes/Beacon, Tablets, Digital Signage, etc.

– Dematerialized transactions – universal and close-loop payments, online & proximity transactions, electronic money, coupons…

• Double competency : Business & Consulting

– Strategic Consulting to drive disruptive digital project’s launch in B2B & B2B

– Strong Sales background as pioneer in promoting innovative solutions such as Tablet PC or CRM software’s

• Senior profile

– Partner and Founder, Lobary : digital proximity consultancy, mobile payment & marketing

– VP Communication, EESTEL : Association of European Experts in e-Transactions Systems.

– Program Committee Chairman, Smart Contactless World 2015 – September 15-17, 2015.

• Strong references