Paying Digital: from Pay(n)ments to...
Transcript of Paying Digital: from Pay(n)ments to...
Paying Digital:from Pay(n)ments to Payments?Ricardo Chaves
SIBS Forward Payment Solutions
Lisbon, May 23th 2017
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Agenda
▪ It is not about payments!
▪ From payments to pay(n)ments?
▪ From pay(n)ments to payments:
going global (but locally)
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Some things never change…
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Dear, I’m leaving for a couple of hours to do some payments, ok? Do you need
anything?
?
People don’t
shop because
they pay…
…they pay
because they
shop
Dear, I’m leaving for a couple of hours to go to the mall and do some shopping, ok? Do you need anything?
Oh, great! Then you can bring me some things from the supermarket. It´s not much, in
fact we need ……….………..…………
Oh, and I justremembered we
also need……………….
The Platypus syndrome
The Ornitorrinco (“Platypus”) is thenew normal
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Reptiles
Birds
But
Mammals
I visit some sites to see some clothes I
need to buy1
I travel to the shop and pay for parking
with some coins2
I receive the rest of the clothes at home
2 days later5
I order the rest of the clothes in
the App and pay with my card
through MB WAY
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I take a jacket I really need right now
and pay for it at the shop3
Consumers digital and multichannel behavior is complex
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Traditional11
Digital only15
Multichannel – from digital to traditional
Multichannel – from traditional to digital
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E-Chat
Forum
Self service
(FAQ)
Virtual
Assistant
Web
account
Social media
Mobile
App
Phone
Store
Call Center
Traditional Pure digital
Telecommunications sector - 2015
Source: McKinsey
My automated sales
assistant will buy
things for me
My self driven car
will go shopping
I will shop with
augmented reality
I will get my goods
delivered by a
drone
We know little, but we probably already know enough
I will not
feel the
payment
Agenda
▪ It is not about payments!
▪ From payments to pay(n)ments?
▪ From pay(n)ments to payments:
going global (but locally)
7
1950 1960 1970 1980 1990 2000 2010
Increasingly fragmented payment landscape: from payments to pay(n)mentsto payments?
Convergence needed! Where did multichannel go?
Challenge: keep payment invisible across a diversified customer journey
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Restaurant example
I get to the
restaurant
I eat in the
restaurant and pay
I go for a drink
in a bar nearby
I provide
feedback
I plan/ search
for restaurant
I book a
table
▪ Get advice/
recommend-
dations
▪ Get value for
money
▪ Get discounts
save money
▪ Place an
appointment
▪ Discovery
▪ Gain
efficiency/
save time
▪ Pay simple /
fast
▪ Use any
payment
method
▪ Get discount
▪ Get advice
▪ Pay simple /
fast
▪ Use any
payment
method
▪ Gain
efficiency/
save time
▪ Share
feedback
Two “old” technologies sustained OTT innovation plus some despite disruptive emerging: but journey design remains key
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OTT (over the top)
Emerging
(alternative and
complimentary):
Instant
payments
Blockchain (e.g.
remittances)
Increasing diversification of players and positioning
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P2P centric
Bank Based
Social networks / Instant
messaging
Fin. services centric (inc. PISP)
Universal wallets
Targeted/segmented wallets
Specialized services
E-commerce centric
Online Gateway centric
Multichannel centric
Merchant platform centric
B2C B2B
Seamless PSP
OEM1 Pay are expanding but still with low engagement of most relevant banks
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1 Original equipment manufacturer
Agenda
▪ It is not about payments!
▪ From payments to pay(n)ments?
▪ From pay(n)ments to payments:
going global (but locally)
13
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Source: SIBS - Market Report, ACEPI - Estudo Economia Digital em Portugal’15
Qual o método preferencial para pagamentos online? (% de intenção de uso)
(Pag. Serviços)
Wire transfer Credit card
Resilience of MULTIBANCO payment methods as particularly secure can bridge traditional segments with e-commerce
Which is your favorite payment method when you shop online?
(% of intentions - 2015)
Cards w/
SIBS digital portfolio: the same old MB in a totally new (and digital) way
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MB WAY use cases: the future wallet of the Portuguese online consumer
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+ Tax payments
+ NFC
Seamless online
payments
… online stores
… In App
… At vending Machines
... On TV
… In physical stores
… At Contact Centers
P2P immediate
transfers
MB NET – Virtual
cards managementCash withdrawals
without card
Best in class integrations: journeydesign is the key success factor
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#1 RNE
Site AppDigital migration strategy
#2 AUCHAN
Self checkout
#3 H3, Slow e Empadaria
In App withbest in class digital loyalty CeX
MB WAY:
Focus on
convenience
and
customer
journey
integration
delivers best
in class use
cases
In App /
Mobile
In Site
In Store w/
loyalty
From digital
to store
At delivery
Pagamento de
serviços
Digital w/
enhanced
security
(MB WAY/ MB NET)
Credit Card
based
Dig
itiz
ati
on
of
pu
rch
as
e j
ou
rne
y
Payment behavior risk tolerance
+
- +
SIBS portfolio let’s the customer pay “his way”, addressing additional segments that typically remain unserved (1/2)
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Typical scope of
e-commerce
transformation:
not enough to
meet Portuguese
consumer habits
In App /
Mobile
In Site
In Store w/
loyalty
From digital
to store
At delivery Pagamento de
serviços
Digital w/
enhanced
security
(MB WAY/ MB NET)
Credit Card
based
Dig
itiz
ati
on
of
pu
rch
as
e j
ou
rne
y
Payment behavior risk tolerance
+
- +
SIBS portfolio let’s the customer pay “his way”, addressing additional segments that typically remain unserved (2/2)
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Typical scope of
e-commerce
transformation:
not enough to
meet Portuguese
consumer habits
(50% to 80%
penetration)
It’s time to take action: better to over do it than to over think it
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«Companies rarely die from moving too fast,
and they frequently die from moving too slowly»
Clayton Christensen, author of “The Innovator’s dilemma”