Sydney Subscribed 2016: How the World Pays

transcript

How the world paysKevin Dallas, Chief Product & Marketing officer

Experts in helping companies go

global

31.5 million transactions/day,

$500 billion processed / year

Largest FinTech IPO in London

Stock Exchange history

Number 1 international

acquirer

Own the full payment chain from

end to end

Worldpay fast facts

ACQUIRING TREASURY GATEWAY ALTERNATIVES RISKGUARDIAN

Fully licensed for all the leading card schemes in over 100 countries with a local acquiring offering in 50 countries

A global payments proposition that delivers an end-to-end solution

More than just a gateway…

Drive up conversion rates

Reduce the costs of running your business across multiple markets

Optimize payment

acceptance rates

Announcing Australia local acquiring license

DatingSocial NetworksBusiness networksAddress books

Tech & ServicesContentPublishing

We understand digital content

MusicMoviesTVSoftwareeBooks

MagazinesAdvertisingImagesApp

TipsinformationEducationCollaboration

SaaSPaaSIaaSHosting

Is global eCommerce growing?

In 2015, the global eComm market was estimated to be

worth:Up

since 2014

expected to hit

trillion by 2019trillion

Americas: how the world pays – today and tomorrow

APM25%29%

Card75%71%

20142019

Americas 29%

26%20%

40%16%

North America

Latin America

Debit cards eWallets

Bank transfer

Bank transferPostPayCredit card

Top 3 payment types

Europe: how the world pays – today and tomorrow

APM49%55%

Card51%45%

20142019

Europe

26%20%

21%17%

2019Debit cards

eWalletsBank transfer

Top 3 payment types

APAC: how the world pays – today and tomorrow

APM58%63%

Card42%37%

20142019

APAC34%

38%31%

26%11% 9%

2019eWallets

Credit cardBank transfer

Top 3 payment types

Languages Payment preferences& spending habits

Tax laws Currencies

Local cultures Optimizing business cost & risk

Legal Local entity/offshore

Getting the basics right – key considerations

Trust Simplicity Support

The importance of the payment journey

What about subscriptions?

Only want to pay for what they use

Do not want to commit to a service

long term

Concerned about sharing personal information over

the long term

What holds people back from subscribing?

Pull VS. Push Alternative billing models Tokenization

What works for subscriptions?

eWallets will overtake credit cards for share of

global eCommerce spend by 2019

The big winners are eWallets

However… Cards are not dead!

Most Indian recurring and SAAS companies are domiciled out of the US or Singapore.

Cross border transactions in Brazil

see an average decline rate of about 70%.

Cross-border acquiring Start taking payments quickly

• No local entity required• No additional regulatory

requirements• Rapid access to markets

globally

Domestic acquiringImproved transaction success

• Domestic interchange rates• Potential reduction in

international cross-border fees

• Settlement and payments tolocal partners or customers in local currency

Global vs. local acquiring

…but why now?

Payments are blowing up…

Connected devices

&The Internet

of Things

Biometrics&

Rise of the cloud

Cheap storage costs

&A data driven

Tech trends influencing payments

Totallyseamless

Incredible sophistication

Always on identity

What do these trends mean for payments?

What to take away?

• Customers want convenience, transparency and the option to say no

• The accelerating focus on experience and the relationship will drive new models

• Whilst subscriptions are on the rise, other billing methods are of growing interest

Global Payments Report is available at: worldpay.com/global/insights

Questions?