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Fintan Byrne, Executive Vice President and Managing Director Transaction Network Services Payments Knowledge Forum 29 th - 30 th September 2014 Changing Times & Trends in Payments

TNS Changing Times and Trends in Payments Sept 2014

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Fintan Byrne, Executive Vice President and Managing Director of TNS' Payment Gateway Solutions, presents on the latest trends in the Payments industry to the Payment Knowledge Forum conference in London on 30th September 2014

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Page 1: TNS Changing Times and Trends in Payments Sept 2014

Fintan Byrne, Executive Vice President and Managing Director

Transaction Network Services

Payments Knowledge Forum 29th - 30th September 2014

Changing Times & Trends in Payments

Page 2: TNS Changing Times and Trends in Payments Sept 2014

TNS – Central to the payments ecosystem

Page 3: TNS Changing Times and Trends in Payments Sept 2014

Major trends identified across entire stakeholder framework

Consumer MerchantPayment

Technology Provider

Acquiring Bank Card schemes &

issuers

Stakeholder Framework

Page 4: TNS Changing Times and Trends in Payments Sept 2014

6 major trends were identified

Value chain expansion

Alternative payment methods

The way customers shop and

pay

New business models

Regulatory changes

New players

Page 5: TNS Changing Times and Trends in Payments Sept 2014

6 major trends were identified

Value chain expansion

Alternative payment methods

The way customers shop and

pay

New business models

Regulatory changes

New players

Technology is changing the way customers shop and pay. Merchants want to be

responsive but need to invest in the right technologies

Page 6: TNS Changing Times and Trends in Payments Sept 2014

A bewildering array of investment choices

202019901980197019601950

Physical Digital

Cloud computing

2000 2010

Page 7: TNS Changing Times and Trends in Payments Sept 2014

Integrated multichannel – the offline and online worlds have merged

CARDS OFFLINE CARDS ONLINE

ONLINE PREPAID OFFLINE PAYMENT

M-WALLET

Page 8: TNS Changing Times and Trends in Payments Sept 2014

Customer interaction has changed

Page 9: TNS Changing Times and Trends in Payments Sept 2014

Click and collect expected to reach €20 to €25bn by 2018

Page 10: TNS Changing Times and Trends in Payments Sept 2014

Mobile shopping today

Paris

Chicago Seoul

LondonLondon

Paris

Page 11: TNS Changing Times and Trends in Payments Sept 2014

Redesign of the point of sale – combining virtual and physical worlds

Adidas

Marks & Spencer

Page 12: TNS Changing Times and Trends in Payments Sept 2014

Mobile point of sale & tablets

Personalised shopping Up-selling & cross-selling Stock checking Queue busting Assisted selling Wow factor Reduced walk-aways

Page 13: TNS Changing Times and Trends in Payments Sept 2014

Consumers beginning to embrace ‘tap to pay’ concept

UK

France

Spain

Germany

Italy

Ireland

Contactless terminals: 158,000Contactless cards: 34.5 millionNumber of transactions: 6 -7 million

Contactless terminals: 100,000 – 120,000Contactless cards: 12.3 millionNumber of transactions: 0.5 – 1 million

Contactless terminals: 180,000 – 200,000Contactless cards: 3 – 4 millionNumber of transactions: 1 – 2 million

Contactless terminals: 15,000 – 20,000Contactless cards: 2 millionNumber of transactions: n/a

Contactless terminals: 6,000Contactless cards: ~ 1 – 2 millionNumber of transactions: n/a

Contactless terminals: 6,000Contactless cards: 1 – 2 millionNumber of transactions: 0.5 million

Sources: UKCA, CB, Visa, MasterCard, NFC Times (all figures are 2012/2013)

Progressive Contactless

Markets

Nascent Contactless

Markets

Page 14: TNS Changing Times and Trends in Payments Sept 2014

…laying the foundations for Mobile Wallets

Page 15: TNS Changing Times and Trends in Payments Sept 2014

How should retailers respond?

Page 16: TNS Changing Times and Trends in Payments Sept 2014

Security, simplicity & reliability must be maintained….

Yes68%

No32%

What are the key challenges you face to accept payments?

Securit

y

55% 55%

45% 42%

33%

18%12%

Simplic

ity fo

r

cust

omer

s

Paym

ent f

ees

Frau

d

Accep

tance

of A

ltern

ativ

e

Paym

ents

at P

oS

Finan

cial

dat

a

reco

ncilia

tion

Accep

tance

of A

ltern

ativ

e

Paym

ents

at m

y on

line

stor

e

Source: EDC 2013 Retailer Survey

Security

Simplicity

Reliability

Page 17: TNS Changing Times and Trends in Payments Sept 2014

Conclusion

SecuritySimplicity ReliabilitySecurity

SecuritySimplicity Simplicity SecurityReliability Reliability

Simplicity Reliability

Page 18: TNS Changing Times and Trends in Payments Sept 2014

Questions

 Fintan Byrne

Executive Vice President and Managing Director, TNS

 www.tnsi.com