Worldline SA · EURONEXT:WLN
Worldline SA — Rise of Digital Commerce: Navigating trends, unleashing tomorrow's opportunities (March 6- (March 2024)
37 slides from Worldline SA's conference presentation, March 2024
Slide 1: Market insights
Market insights Speaker Mark Beresford Director, Edgar Dunn & Company - 22
Slide 2: Rise of Digital Commerce: Navigating trends, unleashing tomorrow's opportunities
Rise of Digital Commerce: Navigating trends, unleashing tomorrow’s opportunities March 6 – 8, 2024
Slide 3: Global e-commerce market continues to grow, 23% of retail spend by 2027
The global e-commerce market continues to grow, and is expected to account for 23% of total retail spend by 2027 E-commerce Market z 15 30% 21% 22% 23% (% of Total Retail) E-commerce Value of 19% 19% 20% 20% 18% E-commerce 10 20% Penetration (USD Trillion) Transactions 5 10% 0 0% 2020 2021 2022 2023
Slide 4: Future of e-commerce is shaped by technological and regulatory changes
The future of e-commerce is shaped by technological and regulatory changes Technological Trends Regulatory Changes Advanced Payment Methods Payment Service Directives (PSDs) In-app Payments Electronic Money Directives (EMDs) Open Banking General Data Protection Regulation (GDPR) Direct-to-Consumer B
Slide 5: Advanced Payment Methods
Advanced Payment Methods Advanced – Alternative – Appropriate
Slide 6: APMs have gained greatest adoption in Asia Pacific
Advanced Payment Methods (APMs) have gained greatest adoption in Asia Pacific region – in Europe and North America, payment cards continue to maintain significant relevance but this starting to change E-commerce Transaction Values – By Payment Method in 2022 100% 80% 60% 40% 20% 0% Worldwide North L
Slide 7: APMs increase choice for consumers and help capture new segments
APMs increase choice for consumers and help to capture new consumer segments Local APMs Emerging Solutions Digital Wallets Global APMs QR-code Payments Buy-now-pay-later 2 8
Slide 8: APMs expected to account for 75% of global transaction values in 2028
APMs are expected to account for 75% of the global transaction values in 2028 E-commerce – Global Transaction Values 2018 2022 2028e 4% 2% 1% 46% 33% 24% 50 65% 75 % % Cash on Delivery Payment Cards APMs 2 9 Source: Statista, EDC Analysis
Slide 9: In-app payments
In-app payments
Slide 10: Today's connected consumer centres their life around their smartphone
Today’s connected consumer centres their life around their smartphone Consumers use their smartphone as the primary device for Advertising Targeted notifications Product research & comparisons Brand engagement Completing a purchase After-sale servicing 3 1
Slide 11: In-app payments enable consumers to pay within the merchant's mobile app
In-app payments enable consumers to pay for products or services within the merchant’s mobile application Advantages of in-app payments: Higher An easier payment process decreases the chances of cart 1 conversion abandonment rate Consumer App Quicker 2 Some in-app payment solutions offer A2A payment
Slide 12: Future of e-commerce evolving into a technological platform for consumers
The future of e-commerce is expected to evolve into a technological platform for consumers upon which a multitude of distinct app will be integrated Consumers can pay within Possibility of choosing and using the merchant’s mobile app the digital wallet from the platform, convenient in some use cases
Slide 13: Open Banking
Open Banking
Slide 14: What is Open Banking?
What is Open Banking? Open Banking enables financial service providers to access banking data through application programming interfaces (APIs) Telco Insurance Wealth Utilities Managemen t Lending Retail Open Open Open Payments Banking Finance Data Asset Transit Managemen t Mortgages Smart Cities On
Slide 15: Advantages of Open Banking for e-commerce
There are several advantages of Open Banking for e-commerce Cheaper payment process (compared to payment cards) Challenges of Open Banking Lack of awareness Instant funds for the Authorisation rate Advantages merchant & instant Distrust & perceived risks higher than 95%* for refunds for the e-commer
Slide 16: Direct-to-Consumer business model and Marketplaces
Direct-to-Consumer business model and Marketplaces
Slide 17: Brands combining traditional channels with D2C e-commerce websites
Many brands are combining traditional sales and distribution channels with direct-to-consumer (D2C) e-commerce websites Brands using D2C e-commerce channels Innovative D2C e-commerce channels M-commerce Social commerce Livestream Shopping Subscriptions 3 8
Slide 18: Marketplaces anticipated to be fastest-growing retail channel
However, marketplaces are anticipated to be the fastest-growing retail channel, reaching almost 60% of the share of global e-commerce sales in 2027 Marketplace Sales Share of Global Ecommerce Sales 4000 Global Chain Retail 100% 3000 80% Sales… 49% 52% 54% 54% 55% 56% 57% 57% 2000 58% 58% 59% 60% 100
Slide 19: Payment Orchestration Platforms
Payment Orchestration Platforms
Slide 20: Before Payment Orchestration
Before Payment Orchestration Merchants built and maintained multiple connections to payment providers, gateways, Acquirers and APMs PSP Gateway Acquirer PSP Gateway Acquirer Merchant APM Acquirer APM PSP Gateway Acquirer PSP Gateway 4 1
Slide 21: Payment orchestration is a technical middle layer
Payment orchestration is a technical middle layer It connects the merchant to multiple payment providers, gateways, acquirers and APMs through a single API PSP Gateway Acquirer PSP Gateway Acquirer Merchant Payments Orchestration Platform APM Checkout Routing Settlement Acquirer APM PSP Gateway Acqu
Slide 22: A long list of POP providers
A long list of POP providers… Some highlights from the EDC POP database: 54 providers offering payment orchestration 44 Agnostic Standalone Fintech Companies 8½ years – average age of 10 Full Stack providers the standalone POPs Head office locations $700m to $750m 10 London Investment announcements
Slide 23: Three implementation models: in-house, full stack and agnostic
There are three implementation models: in-house, full stack and agnostic orchestration services Full Stack Agnostic In-House or or Solution Integrated Solution Standalone Solution ORCHESTRATION SOLUTION POWERED IN-HOUSE BY THE MERCHANT Presented in no specific order and this is not an exhaustive lis
Slide 24: Artificial Intelligence
Artificial Intelligence
Slide 25: Predictive AI is impacting the e-commerce landscape
Predictive AI is impacting the e-commerce landscape by delivering value- added services for both consumers and businesses directly Chatbots Personalised Offers Virtual Assistant Personalised Offers Netflix Amazon Alexa’s voice ordering Sephora Decathlon 4 6
Slide 26: Generative AI expected for applications from fraud prevention to wealth planning
Generative AI is expected to be used for a range of applications – from fraud prevention to wealth management planning New payment Fraud Prevention Wealth Management methods PayPal implemented a tool to detect anomalies in real-time Salesforce is exploring generative AI for wealth management Amazon’
Slide 27: Augmented reality
Augmented reality
Slide 28: Augmented reality already used in e-commerce
Augmented reality is already being used in e-commerce, by delivering an interactive and personalised shopping experience IKEA Place Sephora virtual artist Nike Fit 4 9
Slide 29: Other examples
Other examples Converse Shoes Chrono24 5 0
Slide 30: Regulatory Changes
Regulatory Changes
Slide 31: PSDs, GDPR, EMDs and eIDAS shaping e-commerce
The PSDs, the GDPR, the EMDs and the eIDAS regulation have been shaping e-commerce Designed to create a single market for payments in the EU PSD 1&2 Regulation for electronic payment systems in the EU EMD Proposed directive that aims to PSD3 update and enhance the EU 1&2 rules put in place by the PS
Slide 32: Where and what will the impact be?
Where and what will the impact be? Strong Customer Authentication (SCA) requirements Creation of new e-money More competition, as banks opened their payment services services to Third Party Payment Service Providers (TPPs) Increased competition PSD between market participants 1&2 EMD PSD3 1&2 Implic
Slide 33: The digital Euro is a proposed electronic version of the Euro
The digital Euro is a proposed electronic version of the Euro currency that will be available to everyone, for free Use cases Advantages for e-commerce Physical purchases Cost-efficient cross-border payments Online shopping July 2021 Merchants will need to accept A2A transfers it as they do with cas
Slide 34: With the DMA, the European Commission aims to make digital markets fairer
With the DMA, the European Commission aims to make the digital markets fairer Examples of the new rules Not Permitted Must do’s Prioritise the gatekeeper’s services Allow interoperability with third parties Prevent consumers from connecting to other businesses Allow users to access their own data Ga
Slide 35: Summary
Summary
Slide 36: Embrace technological trends and regulatory changes to increase sales
To embrace both the technological trends and regulatory changes will help to increase sales for e-commerce merchants To align with consumer preferences Embrace APMs Stay Prepare for Compliance ensures data informed and Open Partnerships with banks will compliant security and consumer with Banking in
Slide 37: Thank You Mark Beresford
edgar, ne > em & Thank You Mark Beresford