Unique Insights into the Top Payment Trends - TNS Webinar

Unique insights into top payments market trends facing merchants in 2014

February 20, 2014

Travis Lee, Director, Product Marketing

#tnspaymenttrends

2014 Payments Ecosystem Trends

Yesterday’s environment was about card data. Tomorrow’s

environment ties device driven personal data to cloud-based services

Payments acceleration and risk

concerns cause merchants to

question their focus and their scope of

management

A shift from the Point of Sale transaction to the Point of Interaction with

the customer

Pace of change is accelerating -

customer focus and risk management are the

driving actions

More in Play than Ever

Before

Sea Change at the POS

It’s About the Data

Great Infrastructure

Required

2TNS Confidential Information

More in Play Than Ever Before

What we can say is that in 2014 …

What commerce will look like in 5 years is difficult to say, but it will be drastically different than what it was in 2013?

Channels are blurring – no longer multi or

omni channel – it is the integration of

channels into “One-Channel” and it is about

commerce and the customer.


NRF Report – the word on everyone’s lips: omni channel. ECommerce and mCommerce took their places next to traditional brick-and-mortar in New York as panelist after panelist acknowledged the importance of bringing products to customers in exactly the ways they want. Cardnotpresent.com


Security is paramount – your payment

systems (networks, databases, POS)

need to be locked down and cleansed

of card data. Previously it was about

compliance management, now it is

about risk management.



FBI Jan 17th Report – discovered 20 more hacking cases involving the same RAM scraping malware technology used against Target. “We believe POS malware crime will continue to grow over the near term.”




Mobile is happening – it needs to be a

critical part of how you create and

maintain loyal customers as well as

enable intelligent merchant associates.



Adyen 3rd Mobile Payments Index – mobile payments accounted for 19.5% of online transactions, up 55% over 2012. Smartphone payments proved the highest volume, but tablets showed the highest average transaction value.



Tender types are increasing – forever it

was cash, check or a handful of credit cards;

then Paypal and a couple alternatives came

along, now we are seeing a flood of options

and some that are changing the paradigm

for merchants, customers and banks.



WorldPay January 2014 report “Global Guide to Alternative Payments” – within three years alternative payments will eclipse card payments as the dominant way to pay online. Paypal is the current alternative payment leader with 57% market share. Alipay is second with 20%.

Sea Change at the POS

We are moving to a Point of Interaction with the convergence of channels that are not solely focused on transactions

Trad

ition

al P

OS • Tied to PC-based

systems

• POS terminals attached to tablets will be transitional implementation

• Reduce number of aisles to free up floor space

Tabl

ets • In aisle customer

service, including payments

• Line busting

• Inventory lookup

• Payments

• Loyalty

• Know Your Best Customer (KYBC)

Smar

tpho

nes • Line busting

payments acceptance

• Restaurant order entry and payments

• Curbside

• Delivery

Source – Glenbrook Partners 7TNS Confidential Information

Sea Change at the POS – Mobile Revolution

A recent survey revealed that more than one third of in-

store shoppers accessed their mobile device to check

product reviews, browse alternatives, price match and

check stock availability while on the shop floor.

* Carlisle and Gallagher Consulting Group 8TNS Confidential Information


Sea Change at the POS – Merchant Readiness

*Graphs: RIS News, 2013

Sea Change at the POS – Merchant Readiness


Sea Change at the POS – Merchant Mobile Priorities

*Graphs: RIS News, 2013 11TNS Confidential Information

Sea Change at the POS – Mobile Strategy

*Graphs: RIS News, 2013 12TNS Confidential Information

It’s About the Data

• Many channels of data from “Always Connected” devices - mobile, social media, sensors, and location technologies will need to be connected to analyze, communicate, and act

Age of Big Data

• In the past, only card data was examined. Now, these additional channels of data, requires the merchant to manage multiple data providers

Beyond Card Data

• Advertising, incentives, customer analytics, and other behavior shaping approaches

Data to Drive Behavior

• Increased data requires greater security Risk Management Mandate

• Will grow from $31B in 2013 toward $114B in 2019*Global Big Data Spend

Tomorrow’s environment ties device driven personal data to cloud-based services.

*Glenbrook Partners 13TNS Confidential Information

Great Infrastructure Required

Are we Payments experts or Retail experts?

Should I do this in house or securely managed outside of my scope?

How can I access services in the cloud that will allow me to add new

functionality, increase security and decrease operations and capital costs?

Payments acceleration and risk concerns cause merchants to question …

Ensure focus Avoid complexity, cost and liability

Enhance payments roadmap flexibility


2014 Payments Ecosystem Changes

• The traditional payments landscape is under pressure

• Advancements in payments technology will continue at a

faster pace

• Security and risk management must be a roadmap driver

• Flexible platforms will be required to deliver a “Customer”

focused experience

• Cloud-based payments provide flexibility, security and control



Q&A

If you have any further questions or would like to discuss any of the items mentioned in more detail please contact Travis Lee

at 703-453-8352 or email [email protected]

www.tnsi.com

Questions and Follow Up

mailto:[email protected]

http://www.tnsi.com/

Economy & Finance

Unique Insights into the Top Payment Trends - TNS Webinar