Published on March 3, 2014
#tnspaymenttrends Unique insights into top payments market trends facing merchants in 2014 Travis Lee, Director, Product Marketing February 20, 2014
2014 Payments Ecosystem Trends Pace of change is accelerating customer focus and risk management are the driving actions A shift from the Point of Sale transaction to the Point of Interaction with the customer More in Play than Ever Before Payments acceleration and risk concerns cause merchants to question their focus and their scope of management Great Infrastructure Required Sea Change at the POS It’s About the Data TNS Confidential Information Yesterday’s environment was about card data. Tomorrow’s environment ties device driven personal data to cloud-based services 2
More in Play Than Ever Before What commerce will look like in 5 years is difficult to say, but it will be drastically different than what it was in 2013? What we can say is that in 2014 … Channels are blurring – no longer multi or omni channel – it is the integration of channels into “One-Channel” and it is about commerce and the customer. NRF Report – the word on everyone’s lips: omni channel. ECommerce and mCommerce took their places next to traditional brick-and-mortar in New York as panelist after panelist acknowledged the importance of bringing products to customers in exactly the ways they want. Cardnotpresent.com TNS Confidential Information 3
More in Play Than Ever Before What commerce will look like in 5 years is difficult to say, but it will be drastically different than what it was in 2013? What we can say is that in 2014 … Security is paramount – your payment systems (networks, databases, POS) need to be locked down and cleansed of card data. Previously it was about compliance management, now it is about risk management. FBI Jan 17th Report – discovered 20 more hacking cases involving the same RAM scraping malware technology used against Target. “We believe POS malware crime will continue to grow over the near term.” TNS Confidential Information 4
More in Play Than Ever Before What commerce will look like in 5 years is difficult to say, but it will be drastically different than what it was in 2013? What we can say is that in 2014 … Mobile is happening – it needs to be a critical part of how you create and maintain loyal customers as well as enable intelligent merchant associates. Adyen 3rd Mobile Payments Index – mobile payments accounted for 19.5% of online transactions, up 55% over 2012. Smartphone payments proved the highest volume, but tablets showed the highest average transaction value. TNS Confidential Information 5
More in Play Than Ever Before What commerce will look like in 5 years is difficult to say, but it will be drastically different than what it was in 2013? What we can say is that in 2014 … Tender types are increasing – forever it was cash, check or a handful of credit cards; then Paypal and a couple alternatives came along, now we are seeing a flood of options and some that are changing the paradigm for merchants, customers and banks. WorldPay January 2014 report “Global Guide to Alternative Payments” – within three years alternative payments will eclipse card payments as the dominant way to pay online. Paypal is the current alternative payment leader with 57% market share. Alipay is second with 20%. TNS Confidential Information 6
Sea Change at the POS • POS terminals attached to tablets will be transitional implementation • Reduce number of aisles to free up floor space • In aisle customer service, including payments • Line busting • Inventory lookup • Payments Smartphones • Tied to PC-based systems Tablets Traditional POS We are moving to a Point of Interaction with the convergence of channels that are not solely focused on transactions • Line busting payments acceptance • Restaurant order entry and payments • Curbside • Delivery • Loyalty • Know Your Best Customer (KYBC) Source – Glenbrook Partners TNS Confidential Information 7
Sea Change at the POS – Mobile Revolution A recent survey revealed that more than one third of instore shoppers accessed their mobile device to check product reviews, browse alternatives, price match and check stock availability while on the shop floor. TNS Confidential Information 8
Sea Change at the POS – Merchant Readiness TNS Confidential Information : RIS News, 2013 9
Sea Change at the POS – Merchant Readiness TNS Confidential Information 10
Sea Change at the POS – Merchant Mobile Priorities TNS Confidential Information : RIS News, 2013 11
Sea Change at the POS – Mobile Strategy TNS Confidential Information : RIS News, 2013 12
It’s About the Data Tomorrow’s environment ties device driven personal data to cloud-based services. Age of Big Data • Many channels of data from “Always Connected” devices mobile, social media, sensors, and location technologies will need to be connected to analyze, communicate, and act Beyond Card Data • In the past, only card data was examined. Now, these additional channels of data, requires the merchant to manage multiple data providers Data to Drive Behavior • Advertising, incentives, customer analytics, and other behavior shaping approaches Risk Management Mandate Global Big Data Spend *Glenbrook Partners • Increased data requires greater security • Will grow from $31B in 2013 toward $114B in 2019* TNS Confidential Information 13
Great Infrastructure Required Payments acceleration and risk concerns cause merchants to question … Are we Payments experts or Retail experts? Should I do this in house or securely managed outside of my scope? How can I access services in the cloud that will allow me to add new functionality, increase security and decrease operations and capital costs? Ensure focus Avoid complexity, cost and liability TNS Confidential Information Enhance payments roadmap flexibility 14
2014 Payments Ecosystem Changes • The traditional payments landscape is under pressure • Advancements in payments technology will continue at a faster pace • Security and risk management must be a roadmap driver • Flexible platforms will be required to deliver a “Customer” focused experience • Cloud-based payments provide flexibility, security and control TNS Confidential Information 15
Questions and Follow Up Q&A If you have any further questions or would like to discuss any of the items mentioned in more detail please contact Travis Lee at 703-453-8352 or email firstname.lastname@example.org www.tnsi.com TNS Confidential Information 16
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