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Attaining Global Travel Success: A roadmap for payments
Dubai – 7 October 2019
Strategic Sales DirectorMerchant Sales and Acceptance
Aziza Tazi
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Case studies, comparisons, statistics, research and recommendations are provided “AS IS” and intended for informational
purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa
neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor
assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not
intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such
advice is required.
Global travel is a different world…
…and payments innovation has been key to this evolution
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Mobile Inflight PaymentsAI Chatbots using
Messenger AppsDigital Cash Compensation
New travel digital payments experiences
Source: Phocuswright Global Online Travel Overview, July 2019
Growing TWICE as fast as the overall travel market
Total travel bookings increased a projected
7.3% to US$1.4 trillion in 2018
Online travel bookings…
Framework for
global payments
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Acquirer / ProcessorConnections
Local Payment Methods
FraudManagement
Reporting and Analytics
Regulation and Compliance
A roadmap to increase global travel
success in payments
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2
3
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Countries, currencies, and channels supported
Settlement andfunding timelines Key KPIs Payment types
Product breadth,open APIs Risk and compliance Pricing Partnerships
Selecting an acquirer/processor is the 1st step1
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Median fraud chargeback rate(in basis points)
10
10
60
70
India
China
U.K.
NA
Note: : Above fraud chargeback rates represent median values and are self-reported. A chargeback is defined as a transaction where the card issuing bank disputes a previously authorized transaction. It includes all payment methods, payment cards and alternative
payments. Source: CyberSource 2019 Global eCommerce Fraud Management Report, Feb 2019. Covers North America, Latin America, Europe, the Middle East, Africa and Asia Pacific Q: Please indicate your annual fraud-coded chargeback rate for [COUNTRY].
Fraud rates vary by country, requiring a tailored
fraud strategy
3
10
0.3%
1%
1.1%
1.5%
Airline online fraud rates per region
1%
1.1%
Base: Airline companies (Asia Pacific, N=15; Europe, N=11; Latin America, N=10; North America, N=4)
Source: Phocuswright CyberSource Benchmark Study: 2018 Global Airline Online Fraud Management
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7%
4.4%
3.8%
1.7%
Airline rejection rates per region
4%
4.7%
Base: Airline companies (Asia Pacific, N=15; Europe, N=11; Latin America, N=10; North America, N=4)
Source: Phocuswright CyberSource Benchmark Study: 2018 Global Airline Online Fraud Management
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5.4%
7.4%
6%
35.5%
Airline manual order review rates per region
29.1%
6.7%
Base: Airline companies (Asia Pacific, N=15; Europe, N=11; Latin America, N=10; North America, N=4)
Source: Phocuswright CyberSource Benchmark Study: 2018 Global Airline Online Fraud Management
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Interchange
Authorization rate
Chargeback
Domestic vs. cross-border
By region, country, channel
North America
U.S.
Canada
LAC
Brazil
Mexico
EMEA
United Kingdom
France
Spain
x each channel
By acquirer processor
Acquirer 1
Volume
$ volume
Auth. rate
Chargeback
Acquirer 2
Volume
$ volume
Auth. rate
Chargeback
Acquirer 3
Volume
$ volume
Auth. rate
Chargeback
By payment type across regions
x each channel
NorthAmerica
LAC
EMEA
U.S.
Canada
U.K.
France
Spain
Direct debit
U.K.
Brazil
Spain
NorthAmerica
LAC
EMEA
U.S.
Canada
Brazil
Mexico
$
As global travel grows, so does the need for robust
reporting and analytics
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Add countries,acquirers,payment types…and you getcomplexity
83%
63%
24%
95%
Merchant CountriesCross-border and in-Country
Purchase Authorization by Issuer Country
Top Issuing CountriesCross-border only
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From September 14, 2019, two
factor authentication is required for
certain transactions. Some
transactions are out of scope.
Transition periods for enforcement
are being announced at a regional
level.
GDPR requires businesses to
protect the personal data and
privacy of EU citizens as of May
2018. It covers how data is
collected, stored, processed and
destroyed.
Nigeria, Russia, China and most
recently India, have put laws in
place requiring that payment
data of citizens be stored in-
country.
PSD2 SCA GDPRDatalocalization
Regulations are a necessary component of global
travel and commerce
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Regulation & client
experience coming
together
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Payment Regulation
Strong Customer Authentication in TravelYour questions answeredWith Amadeus and CyberSource, a Visa solution
From *14 September 2019 Strong Customer Authentication (SCA) is legally required on remote eCom on transactions over €30
Transactions under €30 may require SCA under the cumulative rule. You will need the ability to support SCA by 14th Sept 2019 or you may see a decline in approved transactions.
*relaxed by most regulators
SCA requires the payer to present two or more of the following
e.g. finger print, voice recognition (i.e. biometrics)
Something the payer is
e.g. a pre-registered mobile device, SIM card or key
generation device
Something the payer has Something the payer knows
e.g. PIN or static password
1 2 3
Mostly friction-free
Biometric authentication
Removing activation during shopping
Slick and simple enrolment
Optimised for all devices
Customisable screens for issuers and merchants
Expanded to digital wallets
Universal Device UsageEnhanced User Experience
10x more data shared by the merchant (135 data
elements in total)
Including non-payment related data (such as device ID,
transaction history)
Enabling PSD2 compliance for issuers, including:
Dynamic linking, Transaction Risk Analysis (TRA) and Strong Customer
Authentication (SCA)
New services: TRA, TL, biometrics
Enhanced risk scoring – enabling issuers to take full advantage of PSD2 SCA exemptions
Regulatory SmartGreater Data Sharing
3DS 2.X provides the support for exemptions and an enhanced experience
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Impact on Travel merchants
Traveller
Direct
Indirect(Supplier Merchant)
Indirect(TA Merchant)
Travel Supplier(Air, Hotel…)
1
2
3
Impacting Direct and Indirect Sales
SCA is impacting all Travel & Payment Eco-SystemsDifferent players – Different duties
GDSNeed to support authentication data from T.A, send it at payment time and Report it to BSP
Travel AgentsNeed to apply Authentication Solution for different Use Cases
BSPNeed to extract authentication data and provide it to Airline and its acquirer
AcquirerRequests clearing with authentication data when received
Regulator
Control regulation is correctly applied
Solution overview
3DS 2Travel
✓ Collect more data✓ Support Issuer Authentication Methods✓ JavaScript and SDK integration
Powered by
✓ Seamless 3DS1 and 3DS2 experience✓ Convey additional data collected✓ Flow orchestration
Thank you!
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