Omni-channel payments in retailGeoffrey Barraclough

Cards & Payments ConferenceJuly 2013

Innovation in action

Payment innovation often driven by necessity

650BCCoins

1659ADCheques

1855Fully printed

notes

11

1968BACS

1987Debit cards

2003Chip & PIN

2007Contactless

2500BC Gold bars

960ADBanknotes

11

1694UK banknotes

£1£1

1951Diners Club

DD

1966UK credit card

UKUK

1997 e-banking& mobilepayments

Debit cards achieved 50% penetration in 5 yearsCash machines achieved 50% penetration in 16 years

2008 Faster

Payments

Retail is changing but transactions remain at the heart

Transactions

Store

Mobile

Social

Field Force

What are retailers asking about?

How do I get cost-effective data security?

Invest in Contactless?

Make payments cheaper

Reducing scope of PCI?

Should I worry about digital wallets?

What about loyalty schemes?

Take payments on the move?

Make refunds across channels?

Making payments easier

Contactless growing for low ATV/high throughput

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13£0

£5,000,000

£10,000,000

£15,000,000

£20,000,000

£25,000,000

£30,000,000

Value of contactless transactions

WorldPay

Total UK Market

Olympic marketing

The Omni-Channel Customer

New technology is pervasive but not ubiquitousWhich of the following do you use nowadays on a regular basis, i.e. at least once a month?

69% of women use Facebook, compared to 52% of men

Loyalty is ubiquitous…Which of the following do you use regularly (once a month)?

59%

48%

21%

13%

13%

9%

8%

6%

5%

4%5%

4%

4%

4% 3%

Only 9%Do not use a loyalty card regularly

68%

Cash back on credit card

Cash back on debit card

…increasingly linked to payments…. Which of the following cash do you use at least once a month?

16%

15%

11%

8%

8%

3%

2%

2%

56% do not use any of these schemes regularly (e.g. once a month)

…..and open to digitisationAgreeing it is very convenient to receive vouchers in the following ways

53%At the till on paper/card

48%By post

16%By searching online

5%Using a QR code

44%By email

12%By text

10%Through an App

Interest in future payments in isolation is negligible

I would like to use

Nice to have

Fingerprint, Iris scanner 18% 31%

Using your smartphone to make payments but still with a PIN 9% 21%

Using your smartphone to make contactless payments to £20 8% 21%

Supermarket poster in railway station to scan for later deliveries/pick up 6% 21%

SMS payments e.g. Pingit 6% 17%

Would not store loyalty cards 6% 21%

An online wallet where you can store cards a smartphone (e.g. Google Wallet) 5% 20%

Chirpify 2% 10%

Well designed paymentapplication

- consumer perception

Weak consumerneed

Strong consumerneed

Less well designed paymentapplication

- consumer perception

Good, gimmicky Higheffort

Irregulartransaction

Polarising,Good v freaky

Do I needthis?

Complicated,high effort

Too easy,insecure

Great - safety

Attitudes to new payment systemsConsumer attitudes to new payment systems

Hassle-free

Omni-channel payments in retailGeoffrey Barraclough

Cards & Payments ConferenceJuly 2013