the state of payments in asia

THE STATE OF PAYMENTS IN ASIA

A REPORT FROM INNOVATION IS EVERYWHEREMay 2016

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AREAS OF INSIGHTS

1. Rising Ubiquity of Transport Payment Systems (Ez-Link, Rabbit, Octopus)

2. Financial Inclusion and the Bottom of Pyramid (Nearex)

3. From eCommerce to sCommerce (Snapdeal)

4. Exploring Partnership and Pilot Opportunities (Reebonz, Omnipay.Inc)

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THE STATE OF PAYMENTS IN ASIA

“Cards and Payments Asia 2016 brought together players from the payments ecosystem to discuss, debate and evaluate alternative payment strategies and technologies” - Cards and Payments Asia 2016

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THEME: DISRUPT OR BE DISRUPTED

“Players within financial systems need to get on board with change”from discussions on Cards and Payments Asia 2016

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DIGITAL COMMERCE SHOWS NO SIGN OF SLOWING DOWN

Cards and Payments Asia 2016 was attended by over 6,000 attendees, 200+ expert speakers, and 170 international exhibitors, highlighting tremendous interest in the area of digital commerce.

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AREAS OF INSIGHTS

1. Rising Ubiquity of Transport Payment Systems (Ez-Link, Rabbit, Octopus) - Pg 7-18

2. Financial Inclusion and the Bottom of Pyramid (Nearex) - Pg 21-28

3. From eCommerce to sCommerce (Snapdeal) - Pg 29 - 33

4. Exploring Partnership and Pilot Opportunities (Reebonz, Omnipay.Inc)- Pg 34-38

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1. TRANSPORT SYSTEMS AND PAYMENTS

7In Asia, cards are commonly used as a payment method in transportation systems.


In Asia, numerous countries have moved to the introduction of contactless smart cards as the fare media in an automated fare collection system for transportation

Rabbit Card, Thailand

Octopus Card,Hong Kong

EZ-Link Card,Singapore

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Octopus Cards in Circulation, Hong Kong (WikiBooks, 2014) 9


Key Developments

• Towards increasing interoperability across locations

• Retail partnerships allow for a more rewarding experience

• A proper digital strategy to encourage the cards’ usage

• Data analytics to advise partners on better redemption strategies 10

EZ-link kickstarted the dual-currency purse via province-wide development for a card storing both Singapore dollars and Renminbi.

EZ-Link's partnership with Guangdong

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Increasing Interoperablility:


RETAIL PARTNERSHIP

In developing a payment ecosystem, the importance of quality partnerships is paramount

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EZ-Link in Singapore tied up with brands such as the airline low-cost company TigerAir to offer redeemable promotions through the use of their cards

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RETAIL PARTNERSHIP:


EXAMPLE OF QUALITY PARTNERSHIP:

In its partnership with Perx, a loyalty system, benefits are calculated on a per-trip basis.

This allows EZ-link to continually push the boundaries to make every tap with Ez-link a “rewarding and fun experience”, which in turn expands their network and user base.

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DIGITAL STRATEGY

In encouraging the push for digitization, a comprehensive digital strategy is required.

It compels both customers and merchants in adopting these payment systems

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Rabbit has utilised its reward system as a key marketing strategy by giving more of their Carrot reward points to users who make larger top-up sums.

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DIGITAL STRATEGY


DATA ANALYTICSWith the data that is available through the system, there has to be a feedback loop between merchants, customers,

and providers to ensure the viability of the payment ecosystem

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Regulatory Environment Cash is King

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KEY CHALLENGES


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2. FINANCIAL INCLUSION

According to World Bank data, 2 billion of the world's population lack access to formal financial services, with 95% proportion of developing countries

Global findex data infographic – this index from 0 to 100 provides in-depth data on how individuals save, borrow, make payments and manage risks, based on interviews with about 150,000 adults in over 140 countries (The World Bank , 2014)

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ECOSYSTEM CAPACITY BUILDING

A network of stakeholders

EmpoweringStakeholders

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HOW DO WE APPROACH FINANCIAL INCLUSION


CHALLENGES

• KNOW YOUR CUSTOMERHow to ensure the credibility of customers' individual identities

• RISK ANALYSISData compiled from sources such as social media and web browsing create a profile of the customer which is then analyzed via machine-learning technologies to present a credit score 24


NEAREX’S SUCCESS“Nearex team has

realized that enabling cashless, small day-to-

day payments using mobile wallets in the

emerging world is a business opportunity

worth hundreds of billion dollars annually”

-Mayank Sharma 25


• Payment Pyramid• System Architecture • System Adoption

Catalyst

INTERVIEW WITH MAYANK SHARMA, FOUNDER AND CEO

OF NEAREX

“Nearex is geared as a technology provider for micro-merchants or the unbanked who have traditionally relied on cash, offering a fully integrated solution for a greater financial inclusion in payment ecosystems.”

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“ a fully integrated solution for a greater financial inclusion in payment ecosystems.” - Mayank Sharma

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SYSTEM ARCHITECTURE


3. FROM ECOMMERCE TO SCOMMERCE

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CUSTOMER ENGAGEMENT

To encourage conversions, the Singaporean ecommerce site HipVan, specialized in design furniture, offers a free interior decorating service via WhatsApp where individuals can take a picture of their space and ask a designer for recommendations based on what they need.

With the rise of bots in apps such as Telegram, we could see such services expand across a wider range of businesses to offer a better shopping experience.

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DESIGN

The various speakers shared that it was not about simply having a mobile app but acquiring mobility.

For example, the Singaporean fashion e-tailer “Love, Bonito” offers a mobile-optimized experience without the presence of an app.

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• Snapdeal’s Success• Omnichannel

System• Future e-

Commerce Landscape

INTERVIEW WITH BADAL MALICK, VICE-PRESIDENT OF

OMNICHANNEL AT SNAPDEAL

“despite the lack of a DIY culture, Snapdeal has seen a 20% share of pickups versus deliveries for its Mobile Store Model , suggesting that the omnichannel approach has managed to fulfill (distinct) customer needs. ”

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4. THE OPPORTUNITIES OF EXPLORING PARTNERSHIPS AND PILOTS

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With more and more emerging startups, corporate businesses should take this as an opportunity to expand their partnerships 35

Key aspects to a Successful Pilot - Reebonz’s Success

• Matching technology with a specific need

• Determine your scale• Accessing length of

impact• Post-pilot reports

and next steps

INTERVIEW WITH ELVIN LI, HEAD OF RESEARCH AND DEVELOPMENT

AT REEBONZ

“We have to focus our attention on our core strengths, understanding our own data, and to outsource non-core elements such as building the interface solution to manipulate the data “

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• Delivering quality behind the scenes

• Good partnerships with the government

• Integration with partners to provide a customer-centric product

INTERVIEW WITH SIMOUN UNG, PRESIDENT AND CEO AT OMNIPAY.

INC

“Our core focus is on collaboration, hence, our preference for a revenue-sharing structure to foster a win-win situation between us and our clients”

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Key aspects to a Successful Partnershio - Omnipay’s Success


“The Mabuhay Miles Travel Card for Philippine Airlines, is demonstrative of our advances as the pre-paid card has 10 different currencies in addition to the airline's frequent flyer miles; the card is accepted globally at all UnionPay merchants as well as the airlines' partner establishments.”

- Simoun Ung

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IT’S EVEN BETTER LIVE!

Are you looking for a speaker for your event? Contact us: [email protected]" 39

bit.ly/PAYASIA2016Download our full report at:

40

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THANK YOU

INNOVATION IS EVERYWHERE

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the state of payments in asia

Technology