SLIDE 1
Experian Payment Strategies London, June 2011 Drivers for change - - PowerPoint PPT Presentation
Experian Payment Strategies London, June 2011 Drivers for change - - PowerPoint PPT Presentation
Experian Payment Strategies London, June 2011 Drivers for change What are the pressures on the European retail payments sector in 2011 and where will these pressures result in real change over coming years? Please copy and distribute 1
SLIDE 2
SLIDE 3
Technology Drivers
3 Please copy and distribute Version 1, 6/13/2011
The technology roadmap for the short- to medium-term is actually pretty well-known and doesn’t contain too many surprises
SLIDE 4
Key Technology Drivers
4 Please copy and distribute Version 1, 6/13/2011
Moore’s Law will continue for the foreseeable future The mobile ecosystem will take longer to assemble (and is more complicated) than we thought ID and authentication technologies, such as biometrics, will change the mass market Social networks and virtual worlds make the whole real/virtual boundary a little fuzzy
SLIDE 5
Moore’s Law
5 Please copy and distribute Version 1, 6/13/2011 Moore’s law will continue over the foreseeable future, although it will become less important in shaping payments.
SLIDE 6
Mobile Ecosystem
6 Please copy and distribute Version 1, 6/13/2011 This is harder than it looks and the battles over the technology are only just starting
SLIDE 7
Mass-Market Biometrics
7 Please copy and distribute Version 1, 6/13/2011 Nearer than many people think, and driven by convenience, not security
SLIDE 8
Social Networks
8 Please copy and distribute Version 1, 6/13/2011
That whole real/virtual thing… …is starting to get a bit fuzzy
SLIDE 9
Business Drivers
9 Please copy and distribute Version 1, 6/13/2011
The business pressures are intense because of downward pressure on interchange and new, non-bank competitors exploiting new technology
SLIDE 10
Key Business Drivers
10 Please copy and distribute Version 1, 6/13/2011
Adding value instead of reducing costs (like Google) The entry of non-bank competitors (like Square) The demands of retailers will reshape products and services Pan-European consolidation (the SEPA effect) will begin to bite
SLIDE 11
Cost Models
11 Please copy and distribute Version 1, 6/13/2011 Perhaps it’s time to start adding value instead of reducing costs?
SLIDE 12
Non-Bank Entry
12 Please copy and distribute Version 1, 6/13/2011 There are plenty of payments markets where current solutions are poor or non-existent and non-banks can offer something new
SLIDE 13
Retailer Demands
13 Please copy and distribute Version 1, 6/13/2011 The retailers don’t just want payments, they want coupons, loyalty, group purchasing, check-in
SLIDE 14
Pan-European Consolidation
14 Please copy and distribute Version 1, 6/13/2011 SEPA and PSD should continue to mean movement toward a genuinely pan- European marketplace that still doesn’t exist
SLIDE 15
Social Drivers
15 Please copy and distribute Version 1, 6/13/2011
Social changes are the most unpredictable because they depend on human nature
SLIDE 16
Key Social Drivers
16 Please copy and distribute Version 1, 6/13/2011
Balkanization and interconnection Worsening identity theft and fraud means regulation Falling tax revenues and economic efficiency mean that European governments will have to take action against cash Consumers will be more open to considering complementary and alternative money and payment systems
SLIDE 17
Balkanisation
17 Please copy and distribute Version 1, 6/13/2011 Every shopping mall, every transit system, every web property to have its
- wn payment system? That can’t be right, can it?
SLIDE 18
New Regulation
18 Please copy and distribute Version 1, 6/13/2011 If identity theft and account fraud gets worse, then “knee jerk” regulatory responses could (eg, on KYC) will impair the development of new payment solutions.
SLIDE 19
War on Cash
19 Please copy and distribute Version 1, 6/13/2011 Perhaps European governments, driven by the need for revenues, will get serious in the war on cash
SLIDE 20
Economic Crisis
20 Please copy and distribute Version 1, 6/13/2011 Perhaps people are more prepared to consider alternatives to the “conventional” money and payment systems
SLIDE 21
Some Predictions
21 Please copy and distribute Version 1, 6/13/2011
Always a dangerous game! However, there are some high-probability factors that can shape corporate strategy
SLIDE 22
Prepaid is set to expand
22 Please copy and distribute Version 1, 6/13/2011 I thought, and still think, that pre-paid alternatives to cash will emerge to make for a step-change in cash usage
SLIDE 23
Contactless will grow
23 Please copy and distribute Version 1, 6/13/2011 Not particularly because of payments, but because of retailer replacement cycles linked to value-added propositions around payments (cf Google)
SLIDE 24
Mobile will build on contactless
24 Please copy and distribute Version 1, 6/13/2011 In time, local and remote mobile payments will integrate to the point of using the same application for all transactions (cf PayPal)
SLIDE 25
Virtual will go mobile, not web
25 Please copy and distribute Version 1, 6/13/2011 The real and virtual boundary is already fuzzy and mobile will make it almost transparent
SLIDE 26
Conclusions
26 Please copy and distribute Version 1, 6/13/2011
It’s not a bad time to be in payments as competition means innovation
SLIDE 27