Multi channel achteraf betalen heeft de toekomst after pay

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Omnichannel ‘pay after delivery’ account models

Online Betaal Congres 2014

René Wietsma

5 maart 2014

A short introduction

Name: René Wietsma

Role: Manager Business and Internet Development Manager

Company: AfterPay

Education: IT

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Today’s Topic

‘pay after delivery’ account models are an important part of the future omnichannel

payment landscape

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Table of contents

Development in the E-commerce market

Developments in the online payment landscape

Pay after delivery

Future omnichannel pay after delivery account models

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Developments in the Ecommerce market

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Dutch e-commerce market place

Bron: Thuiswinkel.org (2014) 6

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The ‘traditional’ shopping process

• Social interaction

• Product discovery

• Marketing and sale offers

• Price and availability checking

Pre-Purchase

Purchase

Post-Purchase

• Fixed set of payment options for online or in-store

• Standard checkout

• Delivery

• Customer service

• Loyalty

However, the process has completely changed… 7

Ph

ysic

al D

igita

l

Direct

Indirect

The number of channels is exploding - each with it’s own strengths…..and weaknesses

Sales

Outlets

Kiosk

Brand store

Telesales

Catalogues

Intermediaries

Video chat

Callcenter

Door to door flyers

Shop in a shop

Dealer Franchiser Magazines

Agents

Online agent

twitter

Webshop

eMail campaign

Affiliate sites

Compare sites

Web auction

Online marketplace

Internet TV

Smartphone apps

Tablets apps

Instore TV

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Technology is dramatically changing the shopping process and experience

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The new consumer uses a non-linear path

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Retailers move from multichannel to omnichannel to offer their customers a seamless shopping experience

Experience Single touch point Channels act alone, customer

experience differences

Channels strengthen each other Experience is aligned across all

channels

Proposition Aligned Different assortment, prices

services

New services: C&C, in-store home

delivery, etc.

Unified brand, high service, extensive

assortment

Focus - Learn Grow Make profitable

Organization One organization Separate eCommerce

department

eCommerce department becomes part

organization

Integrated channel management for

communication & commerce

Technology One platform Systems are silo’s Logistics, assortment & CRM (the

basics) are integrated

Shared platform all channels from

web, to mobile to cash register

Single Channel Multi-Channel Cross-Channel Omni-Channel

The Past The Reality The Ambition The Work in Progress

11 Bron: Qhuba

Changing eCommerce landscape

starts ‘the changing face of payments’

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Rapid retail and payment changes!

Smartphone creates the synergy of retail channels and selecting, ordering, paying and delivering

Rapidly changing consumer behavior, more online via smartphone than PC. A challenge for the retailer to grap this huge opportunity.

Consumers look for an easy way of ordering, expect a safe payment environment, and like to be led by personalized targeted offers

MasterCard, Amex, Visa, invest in integrated solutions (digital wallets) for mobile, internet, and physical stores

Big trend towards a simple checkout process. Battle of the wallet checkouts.

eCommerce giants eBay, Amazon, Google and Apple posses strong mobile and e-commerce checkouts and create a lot consumer traffic!

13 Bron: AfterPay/Qhuba

Financial organizations: • Recognizability to consumer • Limited investments • Enable mobile payments • Cross border activities • Rise of new entrants

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Retailer: • Growth of conversion

• Sales driven • In search for mobile channel solutions

• Supports pay after delivery •Cross channel

Technology: • Mobile-Internet-POS converge • Card brands invest in multi channel

checkouts • Integration ordering-delivering, pay after

delivery & loyalty

Consumer: • Always online via smartphone,

tablet, laptop, TV • Uses social media

• Convenience via mobile is essential • Expects ease-of-use, choice, and security

(r)evolution electronic ordering

and paying

Market drivers

Bron: Qhuba 14

Easy payment is part of the strategy

Integration of payment functions in the order process. Sometimes incorporated as virtually invisible in customer experience.

Traditional providers are discovering slowly that the consumer is in charge. They don’t dictate the channels through which consumers pay anymore.

Customer recognition (authentication) with face, fingerprints, and/or voice that is linked to registrated features and device recognition is the future.

New providers create services where payment solutions are fully integrated.

Payment is more often based on the (credit)profile of the consumer. Pay after delivery, disconnected from the order process, without the need of PIN, credit card or banking tokens

The reach of payment methods stays important. eMaestro becomes competitor of iDEAL and is cross border utilizable.

15 Bron: Qhuba

Evolution of the checkout process

Pure players like eBay & Google move towards physical retail

Creating access of inventory to commerce platforms

Integration with POS systems and offering mPOS solutions (PayPal)

Reach a large scale of consumers

Search, compare, connect, reward, order, deliver, and pay by smartphone

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The start of wallets: for example Turkcell Wallet (mobile)

17 Source; Turkcell

PayPal, an omnichannel approach

Via mobile to POS

Order functionality

Acceptation points

Coupons

Check-in and pay with your face

Bill me Later

Support fingerprinting (Samsung) https://www.youtube.com/watch?feature=player_embedded&v=Rww0ZcannKg

18 Image Source: PayPal

Amazon, developing alternative wallets

Amazon Check-out

Available for resellers in the US, Luxembourg, UK, Germany

Largest web retailer of the world

Biggest credit card hub after Apple

An example but also competitor for web retailers

Software perfectly aligned

Customer protection

Familiarity of this service by Dutch consumers?

19 Image sources: Amazon.com

Visa

one

click

buy

• Mobile development engine V.me intro

• Serving banks UK, France, Spain

• Partnering telco’s Telefonica, Vodafone,

Samsung

• Investing in technology partners

Evolution of the checkout process, Visa investing in V.me

20 Image sources: Visa

Apple developments

Image Source: Wall Street Journal (2014) 21

Interesting facts:

600 million account holders (Oct 2013)

Increase of 500.000 per day (Oct 2013)

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‘Pay after delivery’ as today

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30% of the Dutch consumers prefer to use an open invoice or direct debit payment option

Bron: Thuiswinkel.org (2013)

5%

5%

5%

6%

24%

55%

Other

PayPal

Creditcard

Direct debit

Post Payment

iDEAL

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Why online consumers want to pay after delivery

Safe and reliable First inspect then pay (or return) Payment terms of 14 days after delivery Chross-channel applicable Financial self-management and control

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How payment after delivery generally works

Data validation

Other payment method (digital) invoice

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Pay after delivery accounts in an

omnichannel landscape

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Pay after delivery account approaches in other domains

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Our criteria for a omnichannel pay after delivery account

Buying with open invoice should be a one-click experience regardless the channel of purchase;

The purchase with account needs to be same customer experience in every channel (mPos,Pos, Mobile, Web, TV);

Aggregation of all purchases and returns in one customer account;

One single point of contact for the customer regarding payment related questions;

Direct financial insights and obligations.

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Direct benefits

Customer

One account for all retail purchases (online, Pos, mobile, offline);

Easy to use and secure ;

Monthly settlements;

Financial self-management;

Reliable storage of personal data.

Merchant

Seamless integration of every channel through one account;

Offering a preferred payment concept to the customer;

Higher conversion rate;

Micropayments ready;

One click buy experience.

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Mobile payment after delivery with account

Checkout

using

account

Payment

confirmation

Pay after

delivery

(through

mobile or

web)

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Wherever you go, pay with your Account on your mobile, web and store

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Consumer’s bank

Merchant’s bank

Payment with account in front of your television (t-commerce?)

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AfterPay and future account model

The first version of the AfterPay account is planned to be released this summer

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Picture left out

In Summary AfterPay strongly believes in omnichannel ‘pay after delivery’ account models as part of the future payment landscape.

Three import reasons:

Pay after delivery accounts enhance the omnichannel developments;

Pay after delivery is preferred by more then 30% of the online shoppers;

Self management and financial control is available for the customer for all the omnichannel retail purchases.

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Questions?

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