Post on 22-Jan-2018
transcript
Digital Transformation and the Role of Payments
ATPS Worldwide, Berlin, 3-5th May 2017
Tim van Diest SVP Global Accounts
Brian Gross Head of Digital Innovation
Some facts about Adyen
• Tech company founded in 2006
• One platform, one integration
• $90 Billion processed volume in 2016
• 7 own + 90 external acquiring connections + LPM’s
• 13 offices in 5 continents
• 560 employees globally
Adyen & Travel
• 30% of total Adyen volume
• Active in all regions
• Integrated with Amadeus, Sabre and Navitaire
• Multi acquiring routing tool
• 39 Airlines live on the platform
wherever people pay
Digital transformation with an unexpected discovery
Heritage
Aeromexico today
Digital transformation • Insourced, staff 5 > 80
• New website
• API
• New check-in kiosks
• Chatbot, AI
• Doubled Web as % of sales
Our e-commerce goals
Best Latin American airline in e-commerce Global top 10 airline in digital innovation
Customer Experience BrandProfit
So we must provide an Omnichannel Experience
Omnichannel experience
The biggest surprise of all…
Our payments transformation • Architecture
• Local acquiring
• Monitoring
• 3DSecure & Risk
• Results
• Future
Aeromexico’s architecture before
Aeromexico.com Front end Aeromexico API SABRE back end
1 acquirer – MX 1 acquirer - US Issuing banks
Cybersource
Other Connections(Mexico cash)
3DS
Aeromexico’s architecture: Connections to our back end are expensive
Aeromexico.com Front end Aeromexico API SABRE back end
Issuing banks
Cybersource
Other Connections(e.g. Mexico cash, Central America, Colombia, Argentina)
3DS
2 acquirer – MX 1 acquirer - US 1 acquirer - BR
1 acquirer - EU 1 acquirer - UK 1 acquirer - CA
Adyen enables local acquiring in new markets Benefits of local acquiring
• Cost savings channel shift
• In-country transaction
• Higher acceptance rates
• Local currency
• No foreign exchange or surcharging
• Local instruments
• Parcelas in Brazil - 50% of sales
• Installments in other Latin countries - 30-80% of sales
Monthly transactions for AM.com (2015-2017)
0
300
600
900
1200
Jan 15 Mar May Jul Sept Nov Jan 16 Mar May Jul Sept Nov Jan 17 Mar
United KingdomFranceSpainNetherlandsRest of Europe
Europe Growth vs previous year (MoM, %)
Launch of EUR and GBP in Feb. 16
Local acquiring boosts sales
-3%
34%
164%
120%
263%
219%
239%
203%
431%
286%
234%
253%
352%
112% 55
%
Tips and Tricks Check message configurations • Acquirers have special configurations for certain
cards, countries or Forms of Payment (e.g. installments).
• Check the set-up with them to find gaps or underperforming categories
Retry transactions with other acquirers • Around 10% of Rejections from Acquirer A,
might be authorized by Acquirer B Validate end-to-end flow • Auth, Capture, Settlement, Refunds, etc. Every
new PoS might need specific adjustments Solve frequent unclear error types • Focus on the most common ones that are
unclear or vague. Acquirers might have unpleasant surprises.
Monitor daily performance
Adyen Dashboard • Monitor daily performance • Solve concerns, deep analysis • Performance by acquirer by BIN • Identify misconfigurations for
installments, cards by country, etc. • Change % traffic to different acquirers • Generate manual procedures for
refunds, captures or cancellations
We removed 3D Secure • No significant Fraud increase in Mexico • Fraud increased beyond tolerable
levels in US, so we put 3DS back on, but…
• New acquirer in US – Elavon – fraud remained under threshold
• Cybersource = effective! • Implementing Dynamic 3DS with
Adyen
Overall results: high acceptance rate, increased customer satisfactionSuccess rate Visa/MC payments Web Mexico in 2016
70%
90%
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sept-20 Oct-20 Nov-20 Dec-20
77% 78%76%
74%
79%80% 80% 82%
86% 86% 84% 84%Launch of A
dyen
as Gate
way M
SI Q6 code,
Accep. from
57% to 75%
Santander a
s
2nd Acquire
r
Retries on
Acquirer B 9% recovery rate,
5M USD per year
The future • Central and South America:
• Local card acquiring
• Cash
• Installments (30-80% of market)
• Adyen + Asia, AFP Europe, etc.
• 3rd acquirer Mexico
• 2nd acquirer USA
• Chatbot
• Payment inside of Messenger
Coming soon…Payment inside of Messenger • With Visa assets e.g.
• Cybersource Decision Manager • Tokenization • Visa Checkout
• Secure, PCI • High approval rate • Reconciliation
• Automatically issue ticket • Confirmation page and email
Q and A
ATPS Worldwide, Berlin, 3-5th May 2017