mobile, alternative payment methods and cross-border: drivers for your e-commerce success
TRANSCRIPT
DOCOMO Digital’s e-commerce payments enabler
Mobile, alternative payment methods and cross-border: drivers for your e-commerce
successApril 27, 2016
Past Megatrend 1: Smartphone
2
There are more tablets and smartphones in the world than there are people. The gadgets are multiplying five times faster than we are, with our population growing at a rate of about two people per second.
More people have a mobile phone than a bank account.
Data Source: GSMA Intelligence, 2016
Past Megatrend 2: Social Media
3
There are 2.3bn active social media users and 2.0bn of them are active MOBILE social media users.
Social media is mobile, channelled, visual and international.
Data Source: www.wearesocila.sg, 2016
Impact 1: Social Commerce4
Data Source: PwC, 2016
Aspects that influence online shopping behaviour
Reading reviews,
comments and feedback
Receiving promotional
offerings
Viewing advertisements
Staying on top of current fashion and product trends
Writing reviews, comments and feedback
Associating with particular brands or retailers
Purchasing products directly via a social media channel
Impact 2: M-Commerce Market
5
Data Source: Ovum, 2016; PwC, 2016, Goldman Sachs Inc., 2014
2014 2015 2016 2017 2018 2019 20200
200
400
600
800
1000
1200
1400
M-commerce revenue ($bn)30%
34%
2014 2015
“Mobile phone becomes my main tool through which to purchase items.”
By 2018, almost half of e-commerce will be mobile because of new mobile channels.
Challenge 1: New Markets6
Data Source: Accenture-AliResearch report, 2015
Volume Growth
p.a.
27%
Cross-Border
Shoppers 2020
45%
2014 2015 2016 2017 2018 2019 20200
5001000150020002500300035004000
Global Cross-Border B2C Volume
Domestic Cross-Border
2014 2015 2016 2017 2018 2019 20200
500
1000
1500
2000
2500Global Cross-Border B2C Shoppers
Domestic Cross-Border
Customer Acquisition
Challenge 2: New Payments7
Data Source: www.ystats.com, 2014
Lack of consumer trust due to missing local online payment methods in %
Challenge 3: Global Acquiring8
Data Source: LinkedIn Loviit AG, 2016
300+Conne
ctors
160Countries
Boost Sales
40%
Single Point of Contact
One-time
Acquiring
Process
No Restrictions on Pay-out
Weekly Settlem
ent
Global Acquiring Features
Inter-nation
al
Challenge 4: Guaranteed Pay-out
9
Data Source: www.ystats.com, 2014; LexisNexis 2015
Fraud & Risk Systems(Global & Local)
Customer Scoring
Transaction Scoring
Geo-location
Velocity Checks
Validation
Blacklist
Device Ident
Up to 7 times more difficult to
prevent int. mobile
fraud
100k EUR min. spending on fraud
mitigation
Guaranteed Pay-
out
HIGHER AVERAGE TICKETS
Challenge 4: Hire Purchase10
Data Source: *Hitachi Capital Consumer Finance, 2014
Key Facts Consumer*
Influenced my decision to buy (80%)
Influenced my decision to spend more (48%)Stopped purchasing without finance option (26%)
Key Facts Merchant
Guaranteed cash payment
Reduced barriers & white label
International solution (one-stop solution)
no registration, no redirections
consumers’ favourite payment
option
different optional payment terms
HIGHER CUSTOMER
SATISFACTION
HIGHER CONVERSION
Challenge 5: Cross-Border Service
11
VAT Reporti
ng
Invoice Templat
e
Collection
ServiceCross- Border
Increase of Complexity
Result I: Complexity12
CONSUMER MERCHANT
Multi Applicatio
nsMulti
ServicesMulti
VendorsMulti
Platforms
Result II: No Funnel Connectivity
13
Megatrend: Unbundling14
Siri (Speech Interpretation and Recognition Interface) is a computer programme that works as an intelligent personal assistant and knowledge navigator, part of Apple Inc.'s iOS, watchOS, and tvOS operating systems.
Watson is a question answering (QA) computing system that IBM built to apply advanced natural language processing, information retrieval, knowledge representation, automated reasoning, and machine learning technologies to the field of open domain question answering.
Messenger platform is taking first steps to bring businesses on Messenger with the goal of enhancing how people and businesses communicate. Users will be able to sign up to connect with businesses in Messenger, receiving personalized updates. Businesses can use custom layouts designed for order confirmation, shipping updates and more.
Ecosystem Platform15
Solution16
E-Commerce + M-Commerce + Social Commerce = ONEFind a partner that offers omni-channel customer journey orientated/centric services internationally.
Global Acquiring & Global SettlementOnline business becomes more international and requires a global payment solution with local approach from a single hand.
Guaranteed Pay-outs & Hire PurchaseMobile & International e-commerce as well as hire purchase increase conversion but are more difficult to protect from fraud and default.
Add-on Services & White LabelCross-border business becomes complex very quickly and, at the same time, consumers require that all services are fulfilled by their (trusted) shopping brand. Ecosystem PlatformConnected customer acquisition, shopping tools and checkout options in cloud computing enable m-commerce for the next generation.
Thank you!