ECOSYSTEM Change, Disruption & Innovation in the Industry Amy - - PowerPoint PPT Presentation

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Dec 22, 2022 279 likes •555 views

NEW PLAYERS IN THE PAYMENTS ECOSYSTEM Change, Disruption & Innovation in the Industry Amy Zirkle VP Industry Affairs, ETA electran.org DEFINING NEW ROLES IN AN EVOLVING INDUSTRY Industry Evolution Transformation of the Payments

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NEW PLAYERS IN THE PAYMENTS ECOSYSTEM

Change, Disruption & Innovation in the Industry

Amy Zirkle VP Industry Affairs, ETA electran.org

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DEFINING NEW ROLES IN AN EVOLVING INDUSTRY

▪ Industry Evolution ▪ Transformation of the Payments Ecosystem ▪ Industry Initiatives for Emerging Players

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Industry Evolution

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PAYMENTS THEN …

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… AND PAYMENTS NOW

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ELECTRONIC PAYMENTS MODEL

The basis of the electronic payments system is the 5-party model

Buyer Merchant Acquirer Payments Network Issuer

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$2.97 $3.26 $3.60 $3.78 $4.05 $4.44 $4.53 $5.14 $6.62

2009 2010 2011 2012 2013 2014 2015 2016 2017

Data from the Federal Reserve and Nilson Report

Card volume grew 8%

year over year from 2009 to 2017 ($trillions)

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Data from The Nilson Report

67.9 48.6 34.6 10.4 6.8 70.6 49.4 37.7 8.7 7.0

Debit Cards Cash Credit Cards Checks Prepaid Cards 2016 2017 Purchase transactions (billions)

DEBIT CARDS ARE US CONSUMERS’ PREFERRED WAY TO PAY

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0% 2% 4% 6% 8% 10% 12% 14% $0 $20 $40 $60 $80 $100 $120 $140

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Data from the US Census Bureau and US Department of Commerce

2010 2011 2012 2013 2014 2015 2016 2017 2018

eCommerce Sales in the U.S.

$Billions % of all Retail Sales

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Transformation of the Payments Ecosystem

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TODAY’S ELECTRONIC PAYMENTS MODEL

Buyer Merchant Acquirer Issuer

Acquiring Processor

Payments Network

Issuing Processor

Sub-Merchant Sub-Merchant

Gateway

Payment Facilitator ISO/MSP

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THE EVOLVING SALES CHANNEL

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DRIVERS FOR TRANSFORMATION

▪ Technology ▪ New companies ▪ New products and services ▪ Mergers and Acquisitions

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CONTINUING INDUSTRY CHANGE

▪ Expansion of ecommerce ▪ Companies serving multiple roles ▪ Technology drivers ▪ New players

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PARTNERING WITH NEW PLAYERS

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INDUSTRY EVOLUTION

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FURTHER INDUSTRY EVOLUTION

▪ New Technologies ▪ New Players ▪ New Business Models ▪ New Merchants ▪ New Approaches

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CONSIDERATION OF A CHANGING ECOSYSTEM

▪ Things to watch for in the payments industry – Seamless and frictionless payments – Emergence of more “Payments in the Cloud”

ptions

– Increasing merchant insistence on streamlining the payments process – Continued blurring of functions and roles

In payments
In banking

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Industry Initiatives

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Education for a rapidly changing market

TECHNOLOGY SECURITY BUSINESS

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PROMOTING PROFESSIONAL EXCELLENCE

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