payment mega trends 2012 - nordic impact
DESCRIPTION
A view of the 3 key trends to emerge in the payments market in 2012 by Kris Hewitt (PayX International) and the implications for Nordic banks and payments institutions. This presentation was designed for the CAC Card Academy Payments Card Conference held in Oslo in November 2012TRANSCRIPT
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WHAT TO EXPECT IN THE NORDICS
MEGA-TRENDS IN PAYMENTS - 2012
KRIS HEWITT | 20-NOV-12 | CAC CARD ACADEMY CONFERENCE 2012 OSLO
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CREDENTIALS
payx.com linkedin.com/in/krishewitt
WE ARE THE TRUSTED ADVISOR TO THE WORLD'S LEADING PAYMENT BUSINESSES WHERE WE UTILISE OUR KNOWLEDGE AND EXPERIENCE TO
ENABLE THEIR SUCCESS
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3 MEGA TRENDS OF 2012 CASH-LESS
A long imagined cashless future is (almost) upon us. Convenience, new technologies and innovative new market entrants all sit behind this new payments eco-system.
BANKING 3.0 Mobile banking is garnering a great deal of attention, but the savvy players are taking things to the next level and unlocking significant opportunities and capturing market share.
DATA RUSH Many industries have been revolutionised by the rise of the Quants and access to powerful data analytics, this is now crossing into payments as Silicon Valley wakes up to the value in payments.
KEY THEMES & DRIVERS
DIY PSPS NFC SUBSTITUTION
DIGITALISATION OF MONEY
SMART DEVICE PROLIFERATION
KEY THEMES & DRIVERS
DEATH OF THE BRANCH
RISE OF THE APPS
GAMIFICATION OF SERVICES
RETAILERS-TO-RETAIL BANKS
KEY THEMES & DRIVERS
REALTIME ANALYTICS
BESPOKE SERVICE
TRANSACTIONS AS A PLATFORM
QUANTIFIED SELF
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3 MEGA TRENDS OF 2012 CASH-LESS
A long imagined cashless future is (almost) upon us. Convenience, new technologies and innovative new market entrants all sit behind this new payments eco-system.
BANKING 3.0 Mobile banking is garnering a great deal of attention, but the savvy players are taking things to the next level and unlocking significant opportunities and capturing market share.
DATA RUSH Many industries have been revolutionised by the rise of the Quants and access to powerful data analytics, this is now crossing into payments as Silicon Valley wakes up to the value in payments.
KEY THEMES & DRIVERS
NFC SUBSTITUTION
DIGITALISATION OF MONEY
SMART DEVICE PROLIFERATION
KEY THEMES & DRIVERS
DEATH OF THE BRANCH
RISE OF THE APPS
GAMIFICATION OF SERVICES
RETAILERS-TO-RETAIL BANKS
KEY THEMES & DRIVERS
REALTIME ANALYTICS
BESPOKE SERVICE
TRANSACTIONS AS A PLATFORM
QUANTIFIED SELF
DIY PSPS
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DIY PSPS
STARTUPS ARE ENTERING THE PAYMENTS MARKET LIKE NEVER BEFORE AS BARRIERS TO ENTRY HAVE EVAPORATED
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REASONS TO BELIEVE
An API wrapper for bank transfer, which allows any business or individual to tap into the UK direct debit network PSD AND TECHNOLOGY COMBINE • The EU Payments Services Directive
(PSD) and recent technological advances have created the perfect storm
MERCHANT FRIENDLY • Charges a one percent fee on the
transaction, but never charges more than £2
PART OF A GROWING “FINTECH” WAVE • A string of digital firms like GoCardless
are exploiting the efficiencies of the internet to offer financial services in cheaper and simpler formats. These include: MarketInvoice, KashFlow and TransferWise
Mobile app which allows users to link their debit or credit card to a unique QR code and then scan this to pay for items. PIVOT TO LOYALTY • Every merchant that accepts LevelUp
as a form of payment also offers monetary savings to users. Users are given “First-Time Visit Specials” and can unlock further credit.
STRONG UPTAKE AND STICKINESS • Now doing over $1 million transactions
a month and has100,000+ users. These users are making payments using the LevelUp system on average two to three times a week.
MAINSTREAM CROSSOVER • Integrated with three of the top U.S.
point-of-sale systems: Micros, Positouch and Dinerware POS Systems, which cover 30 percent of all POS systems.
Offers a free credit card reader for the iPhone, iPad, & Android devices, allowing anyone to accept credit cards PHENOMENAL GROWTH STORY • In the three years since it’s been in
operation in the U.S. it has grown from $1bn in payments processed annually to $8bn.
WADING INTO MOBILE PAYMENTS FOR LARGE MULTINATIONALS • Recently partnered with Starbucks,
where it will process all card transactions across its 7,000 stores in the U.S. with scope to expand this globally.
A NUMBER OF CLONES HAVE EMERGED • Copycats and rivals are emerging all the
time, notably: iZettle, PayPal Here, VeriFone SAIL, Payleven, SumUp and mPowa
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“As more companies are providing services instead of the banks, and the banks are under fire, the message is being reinforced that these services can be provided by other people in a better way” TAAVET HINRIKUS, TRANSFERWISE , JUL 2012
WHAT DOES THIS IMPLY?
1 LAUNCH OF FS OWN BRAND RESPONSES
2 CUSTOMER RELATIONSHIP IS KEY
3 iZETTLE CONTINUES TO SET PACE IN EUROPE
For the Nordics, we believe this will mean:
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3 MEGA TRENDS OF 2012 CASH-LESS
A long imagined cashless future is (almost) upon us. Convenience, new technologies and innovative new market entrants all sit behind this new payments eco-system.
BANKING 3.0 Mobile banking is garnering a great deal of attention, but the savvy players are taking things to the next level and unlocking significant opportunities and capturing market share.
DATA RUSH Many industries have been revolutionised by the rise of the Quants and access to powerful data analytics, this is now crossing into payments as Silicon Valley wakes up to the value in payments.
KEY THEMES & DRIVERS
DIY PSPS NFC SUBSTITUTION
DIGITALISATION OF MONEY
SMART DEVICE PROLIFERATION
KEY THEMES & DRIVERS
DEATH OF THE BRANCH
GAMIFICATION OF SERVICES
RETAILERS-TO-RETAIL BANKS
KEY THEMES & DRIVERS
REALTIME ANALYTICS
BESPOKE SERVICE
TRANSACTIONS AS A PLATFORM
QUANTIFIED SELF
RISE OF THE APPS
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RISE OF THE APPS
THE GROWTH OF APPS USAGE WILL RESHAPE THE WAYS AND MEANS MOST CUSTOMERS TRANSACT WITH THEIR BANK
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REASONS TO BELIEVE
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“We’re moving toward mobile personal financial management, where the consumer not only has banking functions, but can also use the phone to do budgeting, receive alerts about overspending, get offers etc” BEN LOVE, VP VANTIV, JAN 2012
WHAT DOES THIS IMPLY? For the Nordics, we believe this will mean:
1 LESS ME-TOO
2 ALTERNATIVE PAYMENT TOKENS
3 CUSTOMER SERVICE REVOLUTION
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3 MEGA TRENDS OF 2012 CASH-LESS
A long imagined cashless future is (almost) upon us. Convenience, new technologies and innovative new market entrants all sit behind this new payments eco-system.
BANKING 3.0 Mobile banking is garnering a great deal of attention, but the savvy players are taking things to the next level and unlocking significant opportunities and capturing market share.
DATA RUSH Many industries have been revolutionised by the rise of the Quants and access to powerful data analytics, this is now crossing into payments as Silicon Valley wakes up to the value in payments.
KEY THEMES & DRIVERS
DIY PSPS NFC SUBSTITUTION
DIGITALISATION OF MONEY
SMART DEVICE PROLIFERATION
KEY THEMES & DRIVERS
DEATH OF THE BRANCH
RISE OF THE APPS
GAMIFICATION OF SERVICES
RETAILERS-TO-RETAIL BANKS
KEY THEMES & DRIVERS
REALTIME ANALYTICS
BESPOKE SERVICE
QUANTIFIED SELF
TRANSACTIONS AS A PLATFORM
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TRANSACTIONS AS A PLATFORM
SILICON VALLEY INVESTORS HAVE WOKEN UP TO THE FACT THAT PAYMENTS EQUALS BIG DATA AND BIG REVENUES
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REASONS TO BELIEVE
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REASONS TO BELIEVE
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“The platform in this case is the payment network. Software developers will add new capabilities to cards by programming the payment network to link online applications to specific payment events.” REID HOFFMAN, CHAIRMAN LINKEDIN, MAR 2012
WHAT DOES THIS IMPLY?
1 THE NEW OIL
2 NOBODY HAS MONETIZED THIS YET
3 PARTNERSHIPS ARE KEY
For the Nordics, we believe this will mean:
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CONTACT US
St. James House 13 Kensington Square London W8 5HD UNITED KINGDOM
Suite 5 2nd Floor Tower Park Graham Street, Sliema SLM 1713 MALTA
3340 Peachtree Rd NE Atlanta Georgia 30326 USA
KRIS HEWITT Digital Payments Innovation
@krishewitt