TNS Trends in the Payments Value Chain
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Changing Times: Trends in the Payments Value Chain Fintan Byrne, SVP & General Manager, TNS Mark Beresford, Director, Edgar Dunn & Company
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Fintan Byrne, Senior Vice President and General Manager of TNS and Mark Beresford, a Director of EDC, opened proceedings in the Retailer Payments Theatre at RBTE. Their presentation, Changing Times: Trends in the Payments Value Chain, evaluated how evolving consumer behaviour is shifting power and influence to the customer.
Transcript of TNS Trends in the Payments Value Chain
Changing Times: Trends in the Payments Value Chain
Fintan Byrne, SVP & General Manager, TNSMark Beresford, Director, Edgar Dunn & Company
TNS – Central to the payments ecosystem
Major trends identified across entire stakeholder framework
Consumer MerchantPayment
Technology Provider
Acquiring Bank Card schemes &
issuers
Stakeholder Framework
6 major trends were identified…
Value chain expansion
Alternative payment methods
The way customers shop and
pay
New business models
Regulatory changes
New players
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
Integrated multichannel – the offline and online worlds have merged
CARDS OFFLINE CARDS ONLINE
ONLINE PREPAID OFFLINE PAYMENT
M-WALLET
A bewildering array of investment choices
202019901980197019601950
Physical Digital
Cloud computing
2000 2010
Customer interaction has changed
Click and collect expected to reach €20 to €25bn by 2018
Mobile shopping today
Paris
Chicago Seoul
LondonLondon
Paris
Redesign of the point of saleCombining virtual and physical worlds
Adidas
Marks & Spencer
Virtual mirrors
Mobile point of sale & tablets
Personalised shopping Up-selling & cross-selling Stock checking Queue busting Assisted selling Wow factor Reduced walk-aways
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
…laying the foundations for Mobile Wallets
How should retailers respond?
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
Conclusion
SecuritySimplicity ReliabilitySecurity
SecuritySimplicity Simplicity SecurityReliability Reliability
Simplicity Reliability
Questions
Mark BeresfordDirector, Edgar Dunn & Company
www.edgardunn.com
Fintan Byrne
Senior Vice President and General Manager, TNS
www.tnsi.com
