"Light Rises from the East" - Opportunities in the Orient for Payments

“Light Rises from the East”Opportunities in the Orient for Payments

Barbaros ÖzbuğutuCEO & Co-Founder iyzico6th April 2016

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Orient – Countries and Market Overview

16countries

Turkey, Iran, UAELargest E-Commerce Countries

$40bE-commerce Sales

in 2015

45%E-Commerce Growth

in 2015

410mPopulation

Turkey

Iran

Saudi Arabia

Egypt

SyriaIraq

Jordan Kuwait

UAEOman

Yemen

Bahrain

Qatar

Cyprus

IsraelLebanon

Cyprus

Saudi Arabia

Egypt

SyriaIraq

Jordan Kuwait

UAEOman

Yemen

IsraelLebanon

Bahrain

Qatar

Middle East – Territory Without Turkey & Iran

Middle East – Internet & E-Commerce Stats

128mInternet Users

58mMobile Internet Users

250mPopulation

35mOnline Buyers

$19bnE-Com Sales

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Middle East – Cash on Delivery Remains King

32%9 %

Credit Card Penetration Egypt KSA

Credit Card Penetration KuwaitUAE

67% 75%

Ratio of

80% 20%

Turkey & Iran have different payment dynamics

Turkey

Turkey – Internet & E-Commerce Stats

46mInternet Users

17mOnline Buyers

79mPopulation

10mMobile Buyers

36mMobile Users

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Turkey – Payment Stats

58mCredit Cards

112mDebit Cards

2.2mPOS Terminals

Ranks  #1  Source: http://webrazzi.com/2015/12/03/bkm-turkiye-banka-karti-ve-kredi-karti-siralamasinda-birinci-siraya-yukseldi/

Turkey – E-Commerce Market Growth (bn $)

1.6%  of  Total  Retail

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of E-commerce Transactionsare made by Credit Cards85%

Online Payments use Instalment Option65%

Turkey –Cards Dominate Online Payments

Traditional Credit Cardsare not sufficient in Turkey

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Loyalty Scheme

• Installments• Loyalty Points• Cash-Back Rewards• Special Discounts• Travel Benefits• Merchant-specific Campaigns (Retail,

Travel, Fuel, Entertainment, etc)

e.g. Card Family – Bonus

Turkey – Local Bank-Driven Card Programs

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Instalment Period (3/6/9 instalments)

Credit CardFamily which offers

the instalment

Turkey – Online spending driven by Instalments

of online purchases areinstalment transactions65% Instalment offers are key

driver for E-Commerce growth

Iran

Iran –The Next Big Thing?

Iran – Internet & E-Commerce Stats

47mInternet Users

80mPopulation

$6bnDigital Sales

29mMobile InternetUsers

32mAge Group 15-34

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Iran – Strong local card network: Shetab

• International credit cards are not accepted in Iran

of online purchases areLocal debit transactions100%

231mio

debit cards

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Enter the fastest growing e-commerce region

TurkeyIran

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Enter the fastest growing e-commerce region

TurkeyIran

400m93mInternet Users Local Cards

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Key Takeaways

• Strong and persistent cash culture in MENA

• Turkey & Iran with high local card penetrations

• Loyalty cards with installments are driving E-Commerce

growth in Turkey

• International card schemes are not accepted in Iran

• Shetab Network with 231 Million Cards

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iyzico – at a glance

• Founded in 2013

• Investors

• Over 5.500 Live Merchants

• Unique acquirer for local card schemes in Turkey & Iran

• Cross-border E-Commerce enabler for the Orient

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iyzico – contact

CONTACT

[email protected]