- 7 November 2018 - Housekeeping Restrooms Refreshments Mobile - - PowerPoint PPT Presentation

• 7 November 2018 -

Housekeeping

Mobile phones Wifi Restrooms Refreshments Photographer & videographer Presentation slides Chatham House Rule Fire drills

Agenda Overview

Plenary sessions with CMSPI and big payments debate round 1

Morning… Early afternoon…

Breakout sessions covering; cash, card and future

Late afternoon…

Keynote talk with and big payments debate round 2

Speakers

Hosted by CMSPI

Dedicated, independent payments consultancy Office locations in UK, USA and Singapore Awards – Financial Times Future 100, Compass Group and Subway Negotiate over €350 billion per annum Specialists in payments industry research and merchant advocacy Like to begin conferences with overly dramatic videos

Slido

• 7 November 2018 -

Opening remarks: what does Brexit mean for payments?

Lord Hodgson – Chairman, CMSPI

• 7 November 2018 -

The Transitioning Payments Landscape

• Brendan Doyle, CMSPI CEO -
• 7 November 2018 -

Understanding the changing payments landscape

Objectives for the day

LANDSCAPE

NAVIGATION

What can you do to navigate these changes? How can businesses prepare for the future of payments?

FUTURE

Key Theme 1

The Changing Payments Mix

Who’d heard of contactless?

2008…

Changing payments mix

2008 2018 2028

CASH CHEQUE CARD OFFLINE CONTACTLESS CARD ONLINE MOBILE DD

Have your payments costs risen or fallen in the past year?

Which is higher – the cost of card or the cost

• f cash?

2010 2015 Forecast 2020

Cost of Cards vs Cost of Cash

Card Costs

Cash Costs

Cost of Cards vs Cost of Cash

What do you think the average cost of changing acquirer is?

Key Theme 2

The New Role of Payments

How does your company view payments?

• Cost centre
• Revenue driver
• Source of competitive advantage

[TO ADD] A source of competitive advantage

SELF-SERVICE KIOSKS

GREATER EMPLOYEE FOCUS ON VALUE-DRIVING ACTIVITIES

UPSELLING

ATV INCREASES

EFFICIENCY QUEUE-BUSTING

SPEED OF SERVICE

Defining Omni-channel If you were a customer, there were two ways you could get served at McDonald’s. You walk to the front counter, line up, take your drink and find a table, or you take the drive through. We’re introducing many options. Customers can order through mobile, they can come curb-side, and we’ll run it out – as well as existing traditional ways. You can pay in different ways and customise your food in different ways. Steve Easterbrook

President and Chief Executive Officer, McDonald’s Corporation

IF YOU THINK ONLY TWO YEARS AGO…

“ “

Evolving View of Payments

2015 2020 COST DRIVER BURDEN

NECESSITY

LIMITED STRATEGIC VALUE

REVENUE DRIVER

ASSET

OPPORTUNITY

SOURCE OF COMPETITIVE ADVANTAGE

OMNI- CHANNEL

Defining Omni-channel

creating a single commerce experience across your brand, allowing you to present the customer with a seamless experience. This sales approach allows merchants to influence the customer journey and drive revenue increases both per customer and overall.

What is Omni-channel?

OMNI-CHANNEL COMMERCE MEANS…

SINGLE CHANNEL MULTI-CHANNEL CROSS-CHANNEL OMNI-CHANNEL

Omni-channel

Do you think your current supplier is innovative?

All within a lost cost environment

How payments purchasing has changed

Reducing costs Processing costs Scheme fees Ancillary charges Gateway Terminals Interchange

Yesterday

Today

Improving customer experience Optimisation

Security

mix is changing rapidly – how is your business adapting?

Summary

PAYMENTS… PAYMENTS…

is no longer a cost-centre but now viewed as a key revenue driver and source of competitive advantage

Break

The next session will begin at 10:50am

How to navigate a disruptive market to gain a competitive advantage

• Callum Godwin and Wayne Ashall -
• 7 November 2018 -

Themes of the day

Themes of the day

• Geography considerations

Card

Future of Payments

Cash

• Surcharge
• Secure authentication
• Open banking

• Geography

• GDPR
• Loyalty

• SCA
• Biometrics
• 3DS 2.0

Ke Key Ar Areas eas:

Omni-channel functionality and business case Consolidation of arrangements in Europe The cost of changing suppliers

3

Ke Key Ar Areas eas:

Omni-channel functionality and business case Consolidation of arrangements in Europe The cost of changing suppliers

3

Omni-channel

Omni-channel

Defining Omni-channel

creating a single commerce experience across your brand, allowing you to present the customer with a seamless experience. This sales approach allows merchants to influence the customer journey and drive revenue increases both per customer and overall.

What is Omni-channel?

OMNI-CHANNEL COMMERCE MEANS…

SINGLE CHANNEL

Defining Omni-channel

creating a single commerce experience across your brand, allowing you to present the customer with a seamless experience. This sales approach allows merchants to influence the customer journey and drive revenue increases both per customer and overall.

What is Omni-channel?

OMNI-CHANNEL COMMERCE MEANS…

SINGLE CHANNEL MULTI-CHANNEL

Defining Omni-channel

creating a single commerce experience across your brand, allowing you to present the customer with a seamless experience. This sales approach allows merchants to influence the customer journey and drive revenue increases both per customer and overall.

What is Omni-channel?

OMNI-CHANNEL COMMERCE MEANS…

MULTI-CHANNEL SINGLE CHANNEL CROSS-CHANNEL

Defining Omni-channel

creating a single commerce experience across your brand, allowing you to present the customer with a seamless experience. This sales approach allows merchants to influence the customer journey and drive revenue increases both per customer and overall.

What is Omni-channel?

OMNI-CHANNEL COMMERCE MEANS…

SINGLE CHANNEL MULTI-CHANNEL CROSS-CHANNEL OMNI-CHANNEL

Building your Omni-channel Jigsaw

Building your omni-channel jigsaw

Transforming Your Business

Transforming your business

One complete solution

Full omni-channel solution?

“

”

Supplier omni-channel offering

Value to business

Finding the maximum value proposition

• Low cost
• Low capability
• Little added value
• High cost
• Unnecessary

• Inefficient
• Cost competitive
• Required use cases
• Maximised value

Ke Key Ar Areas eas:

Omni-channel functionality and business case Consolidation of arrangements in Europe The cost of changing suppliers

3

Su Suppl pplier er C Capabi pability: Pr Pre-IFR IFR

Su Suppl pplier er C Capabi pability: C Curren ent Lands dscape ape

• IFR and Removal of

• Increased co-badging

Pre-IFR Post-IFR

Catalysts for Change

Catalysts for

• r C

Change: e: N New ew Pl Play ayer ers

IFR as a Catalyst for Change

• Driving innovation!

Pre-IFR Post-IFR

Su Suppl pplier er C Capabi pability: S Separ eparation

• n f

from

• m Banks

IFR as a Catalyst for Change

• Ownership changes and

Pre-IFR Post-IFR

Ca Catalys alysts for Cha Chang nge: Co Cons nsolid lidatio ion

IFR as a Catalyst for Change

• Mergers, Acquisitions

Pre-IFR Post-IFR

Ca Catalys alysts for Cha Chang nge: Co Cons nsolid lidatio ion

IFR as a Catalyst for Change

7 Figure Savings Consolidated Back Office Improved Capabilities Tier-based Advantages Homogenous Solution Simplified Contract Management

Consolidation benefits?

Business case: key considerations

Each market needs to be analysed individually

European Presence

The future of pan-European acquiring

• Small Localised

• Low Volumes
• Technologically

• Lower Cost
• Bigger Reach
• React Quicker

Ke Key Ar Areas eas:

Omni-channel functionality and business case Consolidation of arrangements in Europe The cost of changing suppliers

3

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

2010 2011 2012 2013 2014 2015 2016 2017

Profit Margin

>35%

Why are margins so high in the card acquiring sector?

Overcoming the cost of change

Hard Costs

Components of the cost of change

Reducing asymmetric information problems Incentives from challengers in tender processes Interoperable standards

On average, challengers offer more than double the savings that incumbents offer

Cost of change

Round 1

Round 2

Round 1 Round 2

Savings following 2nd round of bidding

Key Takeaways

• Define and understand what omni-channel

capability is best for your business

Great service at a reduced cost: no need for a trade-off

• Balance the benefits of a single supplier with

the benefits of local expertise

• The costs of changing acquirer are higher

than necessary, but are not insurmountable

Key Takeaways

Omni-Channell Consolidation of Arrangements The Cost of Change

1 2 3

Thank You

Round 1: Challenging the rising costs of payments

John Drechny

• Merchant Advisory Group

Mark Falcon

• Zephyre

Grant Hatton

• CMS Analytics

Peter Robinson

• EuroCommerce

Callum Godwin

• CMSPI (facilitator)

Slido

• Has interchange regulation been effective? Yes / Somewhat – further

amends needed / No / Unsure

• Are scheme fees regulated? Yes / No / Unsure
• Is open banking going to revolutionise payments? Yes / No / Unsure

Slido

Slido

Lunch

Breakout sessions begin at 12:50pm

(For information on breakout sessions, refer to the conference brochure)

Coming up: keynote talk

Keynote: One click to solve all your problems?

Mario de Armas – Walmart Jeffrey Shinder – Constantine Cannon

Round 2: Open Banking

Isabelle Clairac

• Market Pay / Carrefour Group

James Daley

• Fairer Finance

Simon Vans-Colina

• Monzo

Muayad Sayd-Ali

• PPRO

Francesco Simoneschi - TrueLayer Patrice Ellis

• CMSPI (facilitator)

Closing Remarks

Brendan Doyle – CEO, CMSPI

How knowledgable

“We support the petition against excessive card fees.” www.cmspi.com/eur/

DATE AND VENUE ANNOUNCED SOON

Thank you