Paying Digital: from Pay(n)ments to Payments?static.viatecla.com/apdc/share/2017-05/2017-05-24150838_f667a14… · security (MB WAY/ MB NET) Credit Card based rney Payment behavior

Paying Digital:from Pay(n)ments to Payments?Ricardo Chaves

SIBS Forward Payment Solutions

Lisbon, May 23th 2017

1

Agenda

▪ It is not about payments!

▪ From payments to pay(n)ments?

▪ From pay(n)ments to payments:

going global (but locally)

2

Some things never change…

3

Dear, I’m leaving for a couple of hours to do some payments, ok? Do you need

anything?

?

People don’t

shop because

they pay…

…they pay

because they

shop

Dear, I’m leaving for a couple of hours to go to the mall and do some shopping, ok? Do you need anything?

Oh, great! Then you can bring me some things from the supermarket. It´s not much, in

fact we need ……….………..…………

Oh, and I justremembered we

also need……………….

The Platypus syndrome

The Ornitorrinco (“Platypus”) is thenew normal

4

Reptiles

Birds

But

Mammals

I visit some sites to see some clothes I

need to buy1

I travel to the shop and pay for parking

with some coins2

I receive the rest of the clothes at home

2 days later5

I order the rest of the clothes in

the App and pay with my card

through MB WAY

4

I take a jacket I really need right now

and pay for it at the shop3

Consumers digital and multichannel behavior is complex

5

Traditional11

Digital only15

Multichannel – from digital to traditional

Multichannel – from traditional to digital

33

41

E-Chat

Forum

Self service

(FAQ)

Virtual

Assistant

Web

account

Social media

Mobile

App

Phone

Mail

Store

Call Center

Traditional Pure digital

Telecommunications sector - 2015

Source: McKinsey

My automated sales

assistant will buy

things for me

My self driven car

will go shopping

I will shop with

augmented reality

I will get my goods

delivered by a

drone

We know little, but we probably already know enough

I will not

feel the

payment

Agenda

▪ It is not about payments!

▪ From payments to pay(n)ments?

▪ From pay(n)ments to payments:

going global (but locally)

7

1950 1960 1970 1980 1990 2000 2010

Increasingly fragmented payment landscape: from payments to pay(n)mentsto payments?

Convergence needed! Where did multichannel go?

Challenge: keep payment invisible across a diversified customer journey

9

Restaurant example

I get to the

restaurant

I eat in the

restaurant and pay

I go for a drink

in a bar nearby

I provide

feedback

I plan/ search

for restaurant

I book a

table

▪ Get advice/

recommend-

dations

▪ Get value for

money

▪ Get discounts

save money

▪ Place an

appointment

▪ Discovery

▪ Gain

efficiency/

save time

▪ Pay simple /

fast

▪ Use any

payment

method

▪ Get discount

▪ Get advice

▪ Pay simple /

fast

▪ Use any

payment

method

▪ Gain

efficiency/

save time

▪ Share

feedback

Two “old” technologies sustained OTT innovation plus some despite disruptive emerging: but journey design remains key

10

OTT (over the top)

Emerging

(alternative and

complimentary):

Instant

payments

Blockchain (e.g.

remittances)

Increasing diversification of players and positioning

11

P2P centric

Bank Based

Social networks / Instant

messaging

Fin. services centric (inc. PISP)

Universal wallets

Targeted/segmented wallets

Specialized services

E-commerce centric

Online Gateway centric

Multichannel centric

Merchant platform centric

B2C B2B

Seamless PSP

OEM1 Pay are expanding but still with low engagement of most relevant banks

12

1 Original equipment manufacturer

Agenda

▪ It is not about payments!

▪ From payments to pay(n)ments?

▪ From pay(n)ments to payments:

going global (but locally)

13

14

Source: SIBS - Market Report, ACEPI - Estudo Economia Digital em Portugal’15

Qual o método preferencial para pagamentos online? (% de intenção de uso)

(Pag. Serviços)

Wire transfer Credit card

Resilience of MULTIBANCO payment methods as particularly secure can bridge traditional segments with e-commerce

Which is your favorite payment method when you shop online?

(% of intentions - 2015)

Cards w/

SIBS digital portfolio: the same old MB in a totally new (and digital) way

15

MB WAY use cases: the future wallet of the Portuguese online consumer

16

+ Tax payments

+ NFC

Seamless online

payments

… online stores

… In App

… At vending Machines

... On TV

… In physical stores

… At Contact Centers

P2P immediate

transfers

MB NET – Virtual

cards managementCash withdrawals

without card

Best in class integrations: journeydesign is the key success factor

17

#1 RNE

Site AppDigital migration strategy

#2 AUCHAN

Self checkout

#3 H3, Slow e Empadaria

In App withbest in class digital loyalty CeX

MB WAY:

Focus on

convenience

and

customer

journey

integration

delivers best

in class use

cases

In App /

Mobile

In Site

In Store w/

loyalty

From digital

to store

At delivery

Pagamento de

serviços

Digital w/

enhanced

security

(MB WAY/ MB NET)

Credit Card

based

Dig

itiz

ati

on

of

pu

rch

as

e j

ou

rne

y

Payment behavior risk tolerance

+

- +

SIBS portfolio let’s the customer pay “his way”, addressing additional segments that typically remain unserved (1/2)

18

Typical scope of

e-commerce

transformation:

not enough to

meet Portuguese

consumer habits

In App /

Mobile

In Site

In Store w/

loyalty

From digital

to store

At delivery Pagamento de

serviços

Digital w/

enhanced

security

(MB WAY/ MB NET)

Credit Card

based

Dig

itiz

ati

on

of

pu

rch

as

e j

ou

rne

y

Payment behavior risk tolerance

+

- +

SIBS portfolio let’s the customer pay “his way”, addressing additional segments that typically remain unserved (2/2)

19

Typical scope of

e-commerce

transformation:

not enough to

meet Portuguese

consumer habits

(50% to 80%

penetration)

It’s time to take action: better to over do it than to over think it

20

«Companies rarely die from moving too fast,

and they frequently die from moving too slowly»

Clayton Christensen, author of “The Innovator’s dilemma”