Post on 04-Oct-2020
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Omnichannel payment in retail A business enabler
4 key benefits of an omnichannel payment solution for the retail
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170
88
25
countries
R&D centers
offices
4,5B
32M
6800
transactions
employees
terminals
Ingenico - Key figures
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Some Ingenico References – Payment processing
In-store Services Online Services
Omni-Channel Services
> 300 merchants in > 20 countries > 60k merchants in > 100 countries
> 50 multi channel merchants
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1 Omnichannelmarket trends
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Omnichannel sales customer experience
Connected Continuous Contextual
DIGITAL
of shoppers consider that
experience & convenience prevails
over price or rewards
merchants eager to
tailor sales offers to
customers
of shoppers use
their mobile in-
store
55% 50%
* DigitasLBi 2014 study** Retail digital mutation, 2015, LSA/Oliver Wyman
36%
*** Mastercard, The OmniShopper Project, 2015
* *****
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Consumer behavior evolution
MULTI CHANNEL BEHAVIOR
Consumers use anaverage of 3 differentscreen combinationeach day.3
43%MULTI CHANNEL PURCHASE
of consumers would likein-store unavailableproducts be shipped totheir home** CONTINUITY
36%of shoppers considerthat experience &convenience prevailsover price or rewards
SHOWROOMING
60% of mobile shoppers usetheir smartphones whilein store.
CLICK & COLLECT
of cart abandonment due tolong waiting lines atcheckout*
PATIENCE ANDEXPERIENCE
30% 77% of consumers keen to be identified by their payment card for goods collection**
Source: VivaKi Advance : Connected Commerce 2014
58%INTOLERANCE TO
MARKETERS ABUSING DATA
of US consumers are blockingads online. Consumers willcontinue to give theirinformation but they expect abetter purchase experience.
* IFOP study, April 2014** Les comportements d’achat des Français : An Opinea study for Ingenico Group, January 2016.
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Market trends
Digital commerce• Organizations changing in front of reactive pure players (fast click & collect)• The rise of unified commerce platforms : logistics, loyalty and marketing also concerned• Digital in-store coming from click & collect & going on with connected sales assistants• Increase virtual sales in-store : OoS items, web items and marketplace items sale
And payments…• The move to cashless payments : cost, security, flexibility, data• Web payment is more flexible than in-store payment process• Mobility and web in store brings about new challenges• IoT to increase loyalty towards retail and subscription-based retail
Moving towards 3 distinct customer payment interfaces : Intelligent payments, fast payments and passive payments
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2 Retail challenges and solutions
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Who are the top retailers today ?
• According to Planet Retail, in 2019 Amazon will become the second largest playerafter Walmart, from 9th position in 2014…due to a forecast of almost 100% growthin 5 years!
• Most physical retailers will slow down their expansion rate, as they invest in newtechnologies to preserve their value.
+98%
+17%
+40%
Source: PlanetRetail 2016
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A changing marketplaceB
rick
& m
orta
rE-
com
mer
ce
RETAILING ON THE MOVERETAILING EASIER RETAILING FASTER
Self-scanning
Convenience stores
Buy ButtonsFacebook & Google
Speed up checkout with NFC/RFID
Self-checkout
1-hour deliveryAmazon Prime Now
One click payment
Improved mobile payment experience
Mobile-empowered associates deliver better service to shoppers
CLICK & COLLECT
500 000 locations in Europe in 2016
MOBILE WALLETS DEVELOPMENT
Pay in-store with NFC (Apple Pay, Samsung Pay) or online through email, phone number, apps (Google Wallet).
Instant savings & communi-cation with
beacons
Mobile POS terminals
Mobile content as a
priority
Endless aisle
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Typical omnichannel retail challenges
Improve customer knowledge• 67% of retailers already have a unique CRM and 19% are working on it
Manage stocks globally• Breaking silos and get real-time store inventory for web efficiency
Enable customer journey mix• Only half of retailers with physical stores allow goods return in-store• Only 39% provide click & collect service whereas 69% of consumers like this service
worldwide (68% in France, 73% in the UK)
65 % of retailers have implemented or are being implementing an omnichannel strategy
Tomorrow:Omni-
channel
Today:Multi-
channel
• Yesterday:channels
in silo
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How can payments help ?
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Current multi-channel solutionsDisjointed, complex and costly
MobileOnline MOTO Subscriptions
Loyalty
KioskPOS
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Omnichannel payments4 key benefits for the retail
Improvecustomer
experience
Improvecustomer
knowledge
Makesavings
Increasesales
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Tokenization at the core
Main properties• Replace the card number by non-sensitive data, allowing the merchant
to store them• The token is provided for every transaction processed
Big data on customer segmentation & purchase behavior• Same card will bring about same token at any time on any channel
Facilitates customer journey mix• Move from web to the store (click & collect)• Increase in-store payment flexibility & options (debit & credit)
• Master payment terminals• In-store and online payment processing gateway• Omnichannel capacity
Key requirements :
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Sample omnichannel use-casesImprove customer knowledge and make savings
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Sample omnichannel use-casesImprove web to store experience and make savings
Web & mobile
Click & collect
Store
Improve customer experience and reduce fraud attempts• E-commerce order with or without payment• Secure in-store goods collection with payment card and
PIN entry on terminal
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Sample omnichannel use-casesIncrease in-store sales and improve customer experience
Payment in installments
StorePayment upon delivery
Subscription
Capture & tokenize
Provide new services to your customers in-store• Sell out of stock items, items from the web site or
from a marketplace• Sell subscriptions in-store or make installment
payments• The customer debit is triggered by the merchant :
upon shipment or delivery, upon due date or per service use
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Sample omnichannel use-casesMake savings with instant refund
The refund of an in-store transaction represents :• 2 to 5% of transactions processed• An issue when it is requested remotely – not accepted by
several retailers• A processing cost : from 30 to 50 Euros• 60% of French consumers dissatisfied
Refund in a clic whatever the transaction channel• Via a web interface or in automated mode• Whatever the initial payment channel, a unique refund
process
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Omnichannel payments4 key benefits for the retail
Improvecustomer
experience
Improvecustomer
knowledge
Makesavings
Increasesales