mPOS solutions for un- tapped merchants, but not only SEPTEMBER - - PowerPoint PPT Presentation

mPOS solutions for un- tapped merchants, but not only…

SEPTEMBER 18, 2014 OTTILIA ROUGUET EASTERN EUROPE MARKETING SOLUTIONS & SERVICES DIRECTOR / INGENICO GROUP

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mPOS, what is it?

Source: Visa Europe, mPOS Implementation Guide_10 Dec 2013

mPOS Market Dynamics

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mPOS

A promising future…

5M

>50M

2012 2018

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Driven by new merchants acquisition and additional solution to existing merchants in all geographies…

mPOS market growth is driven by complementary solutions to existing merchants and by micro-merchants Europe share in mPOS shipments will reach USA level in 2018

10 20 30 40 50 60

2013 2018 ROW APAC Europe US mPOS Shipments by Geography

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…and by significant changes in consumer - merchant relationship

• Must to accept card payment,

even very small, to do not loose sales

• Need to adapt his payment and

POS technologies to consumers expectations

• Look for consumer engagement

and loyalty to enhance

• Wants deep consumer insight

and data analytics to offer more personalized products

• Smartphone or tablet is at the

heart of consumer relation to products

• Consumer wants to be

considered as unique and expect dedicated offer

• A seamless payment

experience whatever the channel is a must

• Consumer becomes the best

brand promotion power to merchants

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…moving up on the value chain

For micro-merchants but not only…

Retail Merchants (Tier 1, 2 & 3) Small Merchants (Tier 4) Mobile Merchants (Tier 5) Micro Merchants (Tier 6) Field Payments – Delivery, Catering, Pop-up Stores, Food Trucks Line Busting, Client Servicing, Integrations, Global Deployments Basic Mobile Card Acceptance – App + Reader + Processing

The payments ecosystem is becoming increasingly complex as merchants work with consumers in new ways.

Customized Solutions – Loyalty Programs, Offers

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…creating a diverse range of new use cases

Out-of-Store Mobile Payments On-Board Mobile Payments In-Store Mobile Payments

Delivery Delivery Field Sales Field Sales Business Continuity Business Continuity Client Servicing Client Servicing Line Busting Line Busting Fixed Tablet POS Fixed Tablet POS Pop-Up Stores Pop-Up Stores Home Services Home Services Fundraising Fundraising Events Events Onboard Purchases Onboard Purchases Ticketing Ticketing

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Emerging markets where mPOS is leapfrogging fixed traditional POS

• Unique use cases
• Financial inclusion
• Demand for increased efficiency and

security

• Government mandates for tax

collection

High penetration of POS: Merchants looking to extend their business solutions

• Increased competition
• Higher demands from tech-savvy

consumers

• New revenue opportunities and use

cases

• Stay connected to customers in new and

meaningful ways

…meaning that one size does not fit all / mPOS must adapt to different markets

Creating profitable business by answering mPOS market challenges

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New and complex requirements to address

mPOS solution requirements Challenges

Back-end integration

Integration with existing systems (ERP, inventory, CRM) and POS infrastructure Real-time device management Allow to control devices used in nomadic way

Security

End-to-end encryption, PCI, EMV, Visa Ready Risk engine enabling pre-processing controls

White-labelling

White labeling and customized branding options to brand continuity Allow existing applications, value-added services use for brand communication (through APIs)

Scalability

Tools to board and manage thousands of mobile users Support for global deployments (chip & sign, chip & PIN, global gateway connections, certified to international processors) Localization and multi-currency support

Management

Real-time control over devices, users and profiles Transaction reporting, analytics and audit trails Self-service portals for merchant & estate management

Speed to market

Turnkey solution that can be used off-the-shelf or customized Sales training and support

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By building solutions putting complexity out

Powerful Mobile Payments Engine

Back-end Integration Security and Compliance

Customizatio n and Branding

Global Reach and Scalability Device and Merchant Managemen t Speed to Market

Solution providers must take the complexity out of mPOS by managing the work behind the scenes – i.e. connecting to acquirers, local card schemes, security, key injections, hosting and more. Creating a seamless experience, combining powerful business solutions with payment, and changing the relationship between merchants and consumers.

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And creating more value by combining business solutions with payments

Source: McKinsey Small Business Panel – June 2013 Smart Insights Report: mPOS Expansion Shakes the POS Industry

Ingenico Group & Ingenico Mobile Solutions

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INGENICO GROUP at a glance

Global footprint / multi-local solutions Trusted partner / from small merchants to global brands Seamless experience / whatever the channel Security / Ingenico’ DNA Innovation / consumers’ lifestyles

• A Solid financial

track record

• A continuous

growth

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One group

Empowering in-store, online and mobile commerce

Operating the widest range

• f terminals, and connected

to more than 1,000 acquirers and banks, the Group’s smart terminals

• ffer more than 250

payment methods. Ingenico Payment Services turns complex financial transactions into seamless payment solutions. We leverage on historical position in Europe to set the ground for a global offer. The global reference in mobile acceptance today

• perates in 14 countries,

serving 100,000 connected merchants and accounting for 70% of white label mobile solutions in the USA.

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Merchant Commerce Manager Platform

Ingenico Group innovative mobile payment solutions

Ingenico App Your App

Device management Merchant Boarding & Support Fraud Engine Transaction Analytics

What the merchant commerce manager platform deliver?

• Enables each

component to work seamlessly together & integrate with external services.

• Provides centralized

management through two intuitive interfaces – one for the estate

• wner and one for the

merchant.

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Building a value proposal to all players

• Gain access to their own self-

service management portal

• View real-time reporting of all

transactions for both merchant and sub-merchant accounts

• Customize receipts with

branding, messaging and social media links

• Integrate with back-office

systems and reduce the need for reconciliations

• Enrich enterprise offerings to

capture high value customers and migrate to professional accounts

• Drive market share while

generating recurring transactional revenues

• Increase average revenue per

user (ARPU) and create long- term relationships with professional account holders

• Disrupt the payments

ecosystem and ensure customer and merchant adoption of their mobile money and value-added services programs

• Add new recurring revenue

streams from their small business channel

• Enhance customer loyalty by

providing small business merchants with a solution that lowers card acceptance costs

• Enables them to take

payments anywhere, anytime

• Grow their brand outside of

your traditional markets, becoming a recognized leader in mobile payments

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US: Operating 70% of enterprise- level mPOS solutions International: Leveraging Ingenico Group’s strong network to grow

Leading to a strong commercial success

New verticals: QSRs and Fundraising Direct Sales Organizations ISOs and Acquirers New Entrants

The only player

• perating in

14 countries

Strong network of acquirers New Entrants

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mPOS is a complete mobility solution & professional service Our business model is simple, transparent and customer tailored

Our baseline model

• HW
• Set-up
• Monthly operation fee

Full managed services in white label

• All components delivered from payment to merchant commerce manager back-office and

mobile apps

• Fully white-labelled with customization need
• Project based design & build and implementation

Tailored managed services trough SDK components and APIs

• SDKs available for Customer own mobile apps or payment apps developments
• APIs available to easy integration in existing reporting system

mPOS Solution implementation success factors

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mPOS Solution on the field

The winning implementation model in 5 steps Define and agree on the scope Put in place a strong multi-party project management team Architecture & build the solution Integrate and test Pilot and roll-out

1 2 3 4 5

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Customers feedback on mPOS so far

What’s going well, what to improve ?

Small merchants

• New merchant acquisition for mPOS solution subscription is not difficult because of its

attractiveness compared to traditional POS for specific merchant segments or for vertical experience the solution has a market !

• More appropriate support to provide to merchants in the “ 1st step use” period to

facilitate the apps downloading and the solution grip phase. This is the best guarantee

• f the regular use of the mPOS Solution by the merchants

Large retailer

• Seen as a complementary solution to standard POS as value added services are a great
• pportunity and easiest to be addressed thru this solution compared to standard ones
• Extended functionalities on the mobile apps in order to increase the solution usability

and more functionality on the business side are the main success factor

Thank you!