Screenpages Client Day,Sage Pay

Jenny Homer

Agenda

Leveraging the latest trends in online PaymentsCross channel and mobileSocial commerceTokenisationSneak peak at our e-benchmark Study results

Payments Card Industry Data Security Standard

Sage Pay credentials

•UK’s fastest growing Payment Service Provider (PSP)

•Acquired by Sage Group PLC in 2006 and re-branded to Sage Pay 2009

•33,000+ customers growing at 600+ customers per month

•Over 10 million transactions processed each month, over 1.1 Billion transactions per year

•PCI level 1 compliant / member of PCI SSC

•UK based 24/7 customer support

Where do we fit?

Latest trends in payments

The major focus of the internet retailer is, and will be next year: Mobile Commerce, Social Commerce, International…

“Mobile is no longer a gadget, it's what our IT will become"  IBM

By 2015 mobile will level out at about 15% of the ecommerce market

Latest trends in payments Customer shopping patterns are changing and we talk

about Channel Convergence, namely that...

- customer touch points are exploding in terms of sales/revenue

- this is customer driven

- particularly driven by mobile

- customers have higher expectations

Social CommerceAn increasingly critical customer touch point

Not just a marketing tool but now a sales tool

Customers now keen to buy directly from Social Networking sites

Study conducted by Dublin City University found that a facebook ‘Like’ doubles the willingness of a person to buy from a facebook store

Trust was very important too. 20% of respondents indicated that security concerns were a reason for not buying, while 82% of people trusted a friend’s recommendation over company advertising.

Latest trends in paymentsAs a payment gateway we don’t differentiate between transactions that come from a mobile, a social networking site or a desktop computer

Important to consider usability and data collection on your payment pages

We recommend tokenisation here to streamline the check out and boost conversion

Sage Pay eBenchmark study 2011

Takes a close look at: Factors that contribute to making e-commerce a success, why visitors drop out of a purchase and how to avoid these pitfalls in order to maximise conversion rates

We took this information and compiled a report to enable businesses to see how they compared to others in their sector

We are in the process of collating our findings from this year’s survey but can offer you a sneak peak today….

What did it reveal about mCommerce?

Mobile apps remain largely untapped channel. Only 5% already have an app, but there is significant interest in the technology

Growth is being led by bigger businesses. 13% of businesses with over 5000 transactions have an app versus 4% of smaller businesses

29% of all respondents claim they are planning to develop an app - 57% of businesses with more than 50 employees plan to develop apps and 28% of smaller businesses

Jury is still out for more than a quarter (27%) of businesses who don’t see the relevance of the technology to their business, but for the biggest percentage (45%) it’s simply a lack of time that is stopping them from developing an app

…Overseas expansion?

More than half of businesses (56%) already trade in overseas territories, with the main focus on European countries and English-speaking markets like the US

Trade in China remains an emerging territory with one in ten respondents trading in the territory

Processing different currencies remains one of the biggest challenges for businesses that expand overseas, alongside operating in a different language – Of those who operate in overseas markets, a majority (68%) do not accept transactions in foreign currencies

Do you trade overseas, and if so, do you accept foreign currencies?

Does your business currently trade overseas?

If you do trade overseas, do you accept foreign currencies?

Face your PCI demons

PCI has given the ecommerce marketplace a comprehensive data security standard to work to – designed as a framework to help in the prevention, detection

and appropriate reaction to security incidents

PCI compliance is not yet a legal requirement - only one third of online businesses fully adhere to PCI DSS regulations

But it’s important to understand the risks of handling card data

- Card Schemes are able to award potentially unlimited fines

- Reputational impact on your business of a breach

And beat them…

A few guiding principles:

Regulatory requirements will become more stringent as your business grows - needs constant monitoring!

Ask for help - ‘What is the best firewall in the business?’ ‘Which encryption service should I use?’

Use a Payment Service provider with certified PCI DSS Level 1 compliance, to collect, store and transmit card data on your behalf – outsource!

Thank you!

Jenny Homer, Partner Channel Exec0208 685 3324jenny.homer@sagepay.comTwitter: @jenny_homer

The Sage Pay team available to chat…

From the Sales Team… Rob McEwen, Chris RossFrom Business Development… Martyn Boddy