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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