POS terminals development, a perspective in Eastern Europe 17 TH - - PowerPoint PPT Presentation

POS terminals development, a perspective in Eastern Europe

17TH CEESCA CONFERENCE - CONNECTS THOUGHT LEADERS STEVAN VUKOVIC

agenda

Ingenico Group in a nuthsell Eastern Europe vs Western Europe cashless snapshot What next in Eastern Europe? Three way to grow cashless payments in EE: a Perspective

1. mPOS 2. VAS at POI 3. Verticals

Our vision moving forward

3

Ingenico Group in a nutshell

4

Ingenico global leader in seamless payments

Empowering in-store, online and mobile commerce

Operating the widest range and base of terminals (>22 Mns), and connected to more than 1,000 acquirers and banks, the Group’s smart terminals offer 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.

5

KEY FIGURES / 2014

Solid Financials & Dynamic Revenues growth

Revenues 2014 Revenue split by Regions EBITDA

6

Ingenico Group in SEE

A market leader focusing on innovation in seamless payment

PART OF INGENICO EASTERN EUROPE

14 European territories + Israel CUSTOMER BASE

Main references

Acquirers

Intesa Sanpaolo, Societe Generale, Raiffeisen, Erste, …

Main references

Retailers (Lidl, McDonalds,

Agrokor, Delhaize…)

ANNUAL SHIPMENT SHARE IN 2014

60%

PRODUCTS AND SOLUTIONS

• Full Ingenico Smart terminals
• Payment and Value added apps
• Field services
• Tailored Vertical solutions
• Payment services

160.000

terminals delivered in 2014

Our latest innovation on the field

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Eastern Europe vs. Western Europe

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Eastern Europe A huge market potential

188 Mns Habitants 179Mns of Cards 1 590 000 POS 391 Mns Habitants 643 Mns of Cards 7 815 000 POS x 2 x 3,5 x 4,8 x 4,8

EASTERN EUROPE WESTERN EUROPE

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Eastern Europe cashless payment growth drivers for acquirers

Traditional merchants / Acquiring “ BAU”

• Contactless devices / Color screen devices / bring payments with highest security requirements

and all payment means acceptance

New merchants / Acquiring “ Generate new revenues by extension of merchants portfolio”

• Vertical markets entering with cashless devices ( i.e. Vending / Transportation)
• Vertical markets entering with cashless solutions ( i.e. mPOS)

Keep merchants loyal/ Acquiring “ Up-selling by bringing value”

• Pushing value added services ( (i.e. VAS generating revenues to merchants)
• Acquirers becoming VAS aggregator (i.e. Point of Services kiosks)

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What’ next in Eastern Europe?

New Merchants acquisition and Keep merchants loyal

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VAS at POI Generating new revenues for merchants and acceptance

• pportunities

mPOS Enabling new merchants to accept cashless payments Verticals Enabling new segments with cashless payments

M P O S V A S @ P O I V E R T I C A L S

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mPOS Enabling new merchants to accept cashless payments

M P O S

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mPOS : a significant potential worldwide

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

Source: Smart Insights 2014 report on mPOS

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Turn your smartphone / tablet / PC into a secure and mobile POS solution

Telium 2 Advanced

Empowered to manage graphical libraries, TouchScreen & multimedia

All Payment Options

EMV Chip & PIN, MagStripe, Contactless, NFC

Bluetooth Connectivity

Smartphone and tablet connectivity compatible with iOS, Android and Windows world

Sized for mobility

Small and Perfectly flat, the iCMP fits with all pockets

Highest Security

PCI-PTS 3.x, SRED certified

Optimized battery life

Up to cover 3 days of work

Telium 2

Open up a wide range of opportunities to expand your mobile business leveraging the mobile commerce platform

iCMP

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Customer

• Largest Insurance Company in Hungary
• Looking for an innovative mobile payment solution to avoid (pricing calculation erroros, cash acceptance) to

have immediate cash-in

• Completing his digitalization strategy with mPOS solution launch

Why Ingenico?

• Reliable terminal platform and transaction authorisation speed and contactless acceptance
• The best fitted solution ( unique actually among solution looked at on) with customized expectations
• Perfectly suitable Merchant Commerce Manager back-office with perfect integration with the Customer BO

Large Merchants are ready for mPOS

Use case: Retail/ Allianz Hungaria

Facts & Figures

(4 months observation)

• 7000 tx
• 560 agents
• 30% of tx cless

Key success factors of mPOS solution

• Excellence & commitment in project coordination
• Ease, convenience, speed in set-up and operation
• Demateralized receipt for merchant and consumer

(future proof/ paperless)

• Technical reliability,
• SECURITY

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Customer

• PSO established in 2010, dedicated to small merchants
• Focusing on innovation in payment and value-added services
• Pioneer in card based bill payment and advanced rewards
• First contactless mPOS provider in Poland

Why Ingenico?

• Reliable terminal platform and transaction authorisation speed
• Perfectly suitable devices with customer changing needs: design, ergonomic, size & seamless

use

• Fully certified (1st solution certified by Master Card for contactless in Poland )

Small merchants are ready

Use case/ PeP Pioneer with mPOS contactless solution in Poland

Facts & Figures

(3 months observation)

• Different merchants segments on board (taxis,

hospitality, mobile services, cosmetics...)

• 70% of tx cless, 30% C&P, no Magstripe
• Several 000’ of tx so far

Key success factors of mPOS solution

• Easy, quick and convenient payment service.
• No printed receipt, no need for paper to store
• Technical reliability, «zero-issue» authorization process

so far

• Well documented merchant portal to get transactions

statistics

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mPos deployment approach fitting with new merchants expectations: flexibility and seamless

Easy & fast merchant activation Limited commitment Dedicated

• perations &

support Flexible business model New distribution channels

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VAS at POI Generating new revenues for merchants and acceptance opportunities

V A S @ P O I

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Offering VAS at the POI

New challenges for merchants and banks

Develop cost reduction programs Strengthen security Differentiate from competition Increase revenues Diversify its core business activities Reduce operating expenses Boost daily productivity @ store Merchants acquisition and retention

Banks Merchants

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Example : VAS revenue generation at French SMB merchants

Convenience stores (tobacco, press, phone shops) Typology : urban zone, 1 to 10 employees VAS portfolio : mobile top up, gift card, e money Average net revenue per stores : 250 euros /per month Small grocery stores Typology : urban zone , 1 to 3 employees VAS portfolio : mobile top up, e money Average net revenue per store : 50 euros /per month

Increase revenues

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Verticals Enabling new segments with cashless payments Vending, Transportation

V E R T I C A L S

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Cashless payment the next step for Vending

Time to move is now

Cashless payment generate more revenues and bring security to Vending machines

• Secure & reliable
• Seamless purchase experience for Consumers ( no limited by cash in the pockets)
• Consumer could be refunded in real time
• Almost all consumers have a card or a smartphone
• Complementary revenues (cashless payment generate +5-10% revenues as per our field experience)
• Huge vending machines installed base in Eastern Europe ( >500K, estimation)
• High potential transactions number ( EU statistics, 6 Bn of items / year, 295 Mns of Consumer purchasing at least
• nce per week
• Almost all Vending machines are only cash based

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Cashless payment in Transportation

Huge opportunity in all segments Card Present At the counter At Kiosk Wireless Card not present On line On the move Use cases

Public transportation: on- board, in-store, on-line Taxi : in-door, out-door, mobile parking, call a taxi VAS services Air Transport: Pay at kiosk for additional services

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Use case «Air Transportation»

Tailored smart terminals and payment services for all sales channels

Our solutions

• Self-service kiosk equipment with unattended cashless payment devices
• Mobile payment devices for on board payment integrated with PDA/smartphones
• Centralised cross-border payment platform for transaction collection
• Consolidated reporting on several sales channels (desk, mobile, self-service)

Solution across Europe and in the US More than 800 kiosks Several running projects with cross-border payment services

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Use case «Taxi»

One stop shop offering beyond cashless payment acceptance

Our solutions

• Terminals to call a taxi from Hotels, Restaurants, Airports, Stations, Leisure

Centres, Shops, simply pressing a key

• Mobile payment devices for on board payment (banking payment and closed loop),

w/GPRS-3G link

• Centralised platform to manage Closed Loop Cards & reporting
• Integration with on board equipment for ride amount and duration control

Integration with taxi equipment

Closed Loop Cards Management

Call a taxi simply through a dedicated button on the POI

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Use case «Public Transportation»

Addressing business needs and ready for the future

Our solutions

• Comprehensive unattended payment devices range for transport ticketing
• Broad range of countertop for attended Ticketing counters or travel agencies
• Wireless devices for on board payment, integrated with PDA/smartphones
• Card not Present management for remote booking (i.e subscription) and ticket issuing
• Contactless payment accepting prepaid and general purpose contactless card
• Compliant with cless Calypso & Mifare & Desfire Cards and EMV Cless cards
• Cross-channel payment with consolidated reporting on in-store, online and mobile channel
• Ready for Open Payments (open payment means bank cards use for transport/payment)

Many tailored projects running worldwide Dedicated business apps easy integration In-store Online and On-board solution fully integrated with companies systems

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Our vision moving forward

Combining innovation excellence in payment solutions to traditional merchants with out of box innovations to new targets for cashless payments

Title of the presentation - DD/MM/YYYY

1 2 3

• Keep focus on innovation securing continuity in delivery

quality of traditional payment solution (this is very important for the banks) Bring seamless solutions to acquirers to enter new merchant segments ( whatever the sales channel and the industry segment, reaching untapped segments) Provide the link to new merchant - customer relations with future proof seamless offering with security always as a top priority ( mobile, online face to face)

Thank you!