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ONLINE

PAYMENTS
MARKET
GUIDE
2015

INSIGHTS
INTO
GLOBAL
ONLINE
PAYMENTS
AND
ECOMMERCE
MARKET

Building

MRC

Better Commerce
Fraud & Payments Professionals

The Paypers is an excellent resource


for fraud and payments professionals to
gain insights into the most recent and
relevant industry news, stories, trends and
developments. The Paypers is one of the
leading industry publications and is set
apart from others by providing innovative
and imperative information such as their
annual Online Payments Market Guide
Markus Bergthaler - Global Director of
Programs and Marketing - MRC

Ecommerce Europe welcomes the


publication of the Online Payments
Market Guide, a most valuable source
of information and guidance for all parties
interested in the current state of affairs of
the payments industry, as well as latest
trends and developments which offer
businesses the know-how for growth,
regionally or globally
Paul Alfing - Chairman e-Payments
Committee - Ecommerce Europe

Company
Title

Platte tekst

ONLINE PAYMENTS
MARKET GUIDE 2015

INSIGHTS
INTO
GLOBAL
ONLINE
PAYMENTS
AND
ECOMMERCE MARKET

AUTHORS
Mirela Amariei

RELEASE

Tiberiu Avram

VERSION 1.0

Ionela Barbuta

OCTOBER 2015

Simona Cristea

COPYRIGHT THE PAYPERS BV

Sebastian Lupu

ALL RIGHTS RESERVED

Mihaela Mihaila
Andreea Nita
Adriana Screpnic

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

Introduction

The payments industry is currently undergoing notable change, not

The omnichannel experience continues to change the way

only through the innovation technology spectrum, but also through

businesses sell and, more importantly, it contributes directly to

regulatory lenses, thus demanding a great deal of effort on behalf

the diversification of the payments plethora for consumers. In this

of merchants, payment services providers and other players in

scenario, PSPs continue to play a vital role in the companies

the business to be tuned to the latest trends, developments and

ecommerce process by implementing the payment methods that

regulatory framework. It is a necessary effort in order to incorporate

consumers want and feel comfortable with in the purchasing

the new requirements and draft a successful agenda for investment

process. As many online merchants are critical about the services

and revenue in the new landscape.

of their PSP, given the greater challenge of handling payments,


both online and offline, payment service providers need to

In order to comprehensibly implement the necessary intelligence

constantly re-examine the basis on which they deliver customer

to stay competitive in the complex and ever changing payments

propositions.

business, The Paypers is committed to providing clear perspectives


and insights gathered from industry experts and thought leaders

In order to grasp the complexities of the changing business

who are eager to share their expertise in order to help businesses

landscape, this year`s edition features a 2-part structure. Part 1

succeed by choosing the best agenda possible, not only in domestic

is dedicated to thought leadership contributions and initiatives in

expansion, but also across borders. Therefore, The Paypers issues

the field of online financial services, featuring various contextual

its comprehensive Online Payments Market Guide on a yearly

approaches for online transactions at a global or regional level, as

basis in order to help all payments industry players keep pace with

presented by key industry players, either in the form of an exclusive

updates on industry developments, as every detail can make the

interview or an elaborate article.

difference between success and failure.


Cross-border ecommerce (with a particular focus on its drivers,
In conducting ecommerce operations, cross-border and omnichannel

challenges and opportunities), omnichannel payments and

remain essential strategies with significant impact on capturing and

innovations, as well as the regulatory landscape in Europe and

harnessing the market potential. Cross-border ecommerce has been

North America and globalising merchant strategies are among

developing at such a rapid pace that it has already become one of

the main topics to be addressed by these industry players, such

the key generators of future business growth for all participants in

as Neira Jones opinion on regulation and innovation within EU or

the industry, including payment gateways or technology providers,

CMS approach on the regulatory context in the US.

merchants, postal and logistics companies.


Likewise, digital transformation, led by innovation, is a hot topic
It is a generally acknowledged fact among industry players that

not only in the regulatory context, but also in the payments and

retail has gone beyond store, mobile, tablet and even language

ecommerce space. New payment tools and devices are released,

barriers, putting customer preference at the forefront. In a context

even as we speak, and technologies such as NFC, both for

in which buyers have become increasingly more confident and

cards and mobile devices, have reshaped consumer behaviour

comfortable shopping online, and the mobile device becoming a

in the purchase experience and merchant attitude during the

popular shopping tool, retailers must reshape their offerings in order

sales process, respectively. The latter is much more aware of the

to accommodate for consumers new preferences. They should

importance of implementing innovative payment services into their

also focus on how the bulk of their efforts could come to fruition

offering: payment preference is a top priority for retailers who want

by making a successful offline-to-online transition or convergence,

to make sure shopping cart abandonment rate is kept in check.

while also boosting their revenues and looking to lower their costs.

ONLINE PAYMENTS MARKET GUIDE 2015

Additionally, notable perspectives around the crucial aspects on

Part 2 presents in-depth company profiles mapping out key players

how to start and manage a business are offered not only by arvato

in the global online payments space, including processors, acquirers

in their interview, but also by many other contributions present in

and alternative payment methods. Furthermore, companies will also

this guide like IMRG, Ecommerce Europe, Alibaba and AIG. These

be featured in our comprehensive PSP and Alternative Payment

are best practices for startups and businesses eager to learn as

Methods database which includes almost 500 players globally,

much as possible in order to stay on top of the industry.

allowing readers unprecedented access to global industry players.

AIG, hellofood and Jumia render a general overview of the

The Online Payments Market Guide 2015 is a must have

actual state of affairs and fundamental principles around which

source of reference to stay informed and keep up to date with the

ecommerce coagulates, such as investments in logistics, building

latest industry perspectives, trends and developments, a highly

trust and diversifying mobile payment options.

useful document that should be kept at hand at all times.

In Europe, PSD2 has drawn a lot of attention as it aims to redefine


European cross-border business and make the EU a common
market by eliminating differences and stressing the similarities.
FleishmanHillard`s point of view is notable in this framework, as
it objectively renders the EU regulatory initiatives to building a
common trade market.
Asia, with precedence on China, and North America, with
precedence on the US, have become competing regional hubs for
the ecommerce industry. This state of affairs is the focal point of
The Paypers own contribution, which attempts to reflect the fierce
battle for global ecommerce dominance between Amazon and
Alibaba. Africa and South America, on the other hand, struggle
to catch up with the more developed regions in order to turn into
promising business growth hubs and gain access to the booming
global enterprise.
Finally, business growth is only sustainable in a secure environment,
and contributions like MRC, NoirePay and Russian Electronic
Money Association highlight the necessary steps which merchants,
PSPs and other payment industry players should take into account,
regardless of business case, market or future developmental plans.
Security is a must and is a fundamental pillar to long term success.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

Table of contents

INTRODUCTION

8 THOUGHT LEADERSHIP SECTION


11 GOING OMNICHANNEL TO WIN
12

Omnichannel Retail Demands 'Open Payments' | Jip de Lange, Senior Consultant, First Annapolis

14

Dynamic Payment Thinking Will Be Key to Omnichannel Success | John Snoek, VP Ecommerce, Acapture

16

Revolutionise Your Shopper Experience with Omnichannel Payments | Roelant Prins, CCO, Adyen

18

Exclusive Interview with Philippe Lazare | Chairman and CEO Ingenico Group

20

Consolidation in Online Payments: Growing Through M&A and Investment | Ycel Yelken, CEO and Founder, yStats.com

23 EXPLORING CROSS-BORDER: THE BIG GAME IN ECOMMERCE


24

Business Intelligence: Multiple PSPs Compare Performance | Son Nguyen, Finance Program Director, vente-privee (part of MRC)

26 The Appeal of Cross-Border Ecommerce for Neighbouring Countries | Linda Uhl, Head of Platform Development and Innovations,
Wirecard
28

Cross-Border Ecommerce: How a Local Approach Can Make the Difference | Martin Schrimpff, Head of Global Sales, PayU

30 How Chinese Giants Have Become a Driving Force for Russian Ecommerce and E-Payments | Adrien Henni, Chief Editor and
Co-founder, East-West Digital News
32

Cross-Border Ecommerce: A Big Opportunity and a Major Challenge | Masha Cilliers, Digital Payments Consultant, IMRG

35 DIGITAL TRANSFORMATION: BETWEEN REGULATION AND GROWTH POTENTIAL


36

Exclusive Interview with Jan Richard | Head of Payment Services, arvato Financial Solutions

38

Planet of the APIs - Making Banking and Payments Programmable | Christoph Tutsch, Founder and CEO, ONPEX

40

Leverage Digitisation to Secure and Develop Your Payment Business | Stphanie Nogus, Head of Marketing, Worldline

42

Exclusive Interview with Neira Jones | Advisory Board Member & Ambassador, Emerging Payments Association

44

The Lego-isation of the Financial Services Industry | Mark Beresford, Director, Edgar, Dunn & Company

46 PSD2 Access to Account (XS2A): Shaking Up the Value Chain | Mounaim Cortet, Strategy Consultant and Tom Rijks, Digital
Innovation and Co-creation Lead, Innopay
48

Technological Transformation in Digital Payments: What Is Next? | Catherine Batch, Associate, Payments Consulting Network

50

PSD2 - Can You Feel the Buzz? | Edwin Jacobs, FinTech lawyer, time.lex

53 JUMPING ON THE PAYMENTS INNOVATION BANDWAGON


54

How to Eat the Elephant of Payments Innovation | Michael Grillo, Director, Marketing Line Leader, ACI Worldwide

56 A EU Digital Single Market: Can Europe Revolutionise Payments? | Martin Bresson, Senior Policy Advisor and Marijn Swinters,
Senior Account Executive, FleishmanHillard Brussels
58

Exclusive Interview with Niamh de Niese | Director of Innovation Delivery, Visa Europe Collab

60 Five Predictions for the Future of Payments | R. Jesse McWaters, Project Lead, Disruptive Innovation in Financial Services, World
Economic Forum and Hwan Kim, Manager, Monitor Deloitte

ONLINE PAYMENTS MARKET GUIDE 2015

63 PAYMENT METHODS DIVERSITY - SPEARHEADING GROWTH


64 Global Payment Methods: Towards a True Seamless Shopping Experience | Paul Alfing, Chairman E-Payments Committee,
Ecommerce Europe
66 When in Rome, Pay as the Romans Pay! Payment Preferences in Different Countries | Ralf Ohlhausen, Chief Strategy Officer,
PPRO Group
68

Online Payment in Germany: Security and Tradition | Miriam Wohlfarth, Co-founder, Managing Director, RatePAY

70 How Developments in Payments Will Truly Establish the Sharing Economy Model | Catrine Rhenberg, Head of Marketplaces,
Trustly
72

The Third ERPB Meeting Agrees Next Steps for Payments in Europe | Javier Santamara, Chair, The European Payments Council


Payments Intelligence
74

The Third ERPB Meeting Agrees Next Steps for Payments in Europe | Elley Frost, Managing Director, CMSpi

77 PAYMENTS RISK MITIGATION: INDUSTRY INSIGHTS


78 Four Pillars to Prevent, Minimise Data Breaches | Markus Bergthaler, Global Director of Programs and Marketing MRC and Mike
Splichal, Program Manager, MRC US
80

Exclusive Interview with Tim Thompson | CEO, NOIRE

82 Breaking the Glass Ceiling: Innovating AML/CFT in Retail Finance | Dr. Victor Dostov, President, Russian Electronic Money
Association

85 THE MARKETPLACE MODEL OPENING THE WORLD FOR BUSINESS


86

Exclusive Interview with Michael Mang | Head of International Business Development and Marketing, APAC&MENA, Alibaba.com

88

Online Retail: A Social Activity | Dr Windsor Holden, Head of Forecasting & Consultancy, Juniper Research

90

Exclusive Interview with Christophe Bourbier | Chairman & Co-founder, Limonetik

92 The Age of A(ces) in Ecommerce: Alibaba, Amazons Strategies for Global Dominance | Adriana Screpnic, Editor-in-Chief and
Sebastian Lupu, News Editor, The Paypers

95 SELLING GOODS IN THE DIGITAL WORLD


96

Do Subscriptions Make Sense for Your Business? | Craig Vodnik, Co-founder, cleverbridge

98

Proliferation of In-App Payments in Ecommerce | Mark Gerban, Payments Industry Expert

101 THE AFRICAN QUEST FOR A COMPETITIVE ECOMMERCE MARKET


102 The Challenges Facing Ecommerce Companies in Sub-Saharan Africa | Sacha Poignonnec, co-CEO, Africa Internet Group
104 Exclusive Interview with Mohamed Touhami El Ouazzani | General Manager for Morocco and Francophone Africa, Visa Inc.
106 Mobile Internet Is the Future of the African Ecommerce Market | Joe Falter, CEO, hellofood Africa
108 What Does It Take to Bring Ecommerce to the Next Level in Sub-Saharan Africa? | Jrmy Doutt, MD, Jumia

110 COMPANY PROFILES


230 GLOSSARY

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

THOUGHT
LEADERSHIP

JOIN US AT

MRCS SPRING 2016 CONFERENCES

MRC VEGAS 2016


ARIA RESORT & CASINO
LAS VEGAS, NEVADA
7 - 10 MARCH, 2016

2016 EU CONGRESS
BARCELO SEVILLA RENACIMIENTO
SEVILLE, SPAIN
18 - 20 MAY, 2016
Building

Better Commerce
Fraud & Payments Professionals

KEY TRENDS
AND
DEVELOPMENTS
IN THE ONLINE
PAYMENTS &
ECOMMERCE
SPACE

GOING
OMNICHANNEL
TO WIN

First Annapolis
Omnichannel Retail Demands 'Open Payments'

Omnichannel payments have long been regarded as the holy grail

Traditionally, payment services are heavily tied to channels (figure 1).

in the payments industry and, for something that is the subject of

With retailers becoming omnichannel, there are two ways forward

so many articles, sales presentations and conference speeches, it

for payment services:

is surprising how little genuine omnichannel payments we see in the

1. Create one integrated payment solution that serves merchants

real world. In this piece, I will explore why this is the case and what
alternative ways merchants are finding.

across channels
2. Create componentised payment services that are easy to combine
into a wider solution, so merchants can integrate in other parts of

Payment services are part of a broader commerce experience,

their operations

designed to meet the requirements of specific retail environments.


Retailers have created sophisticated commerce experiences and

As mentioned, there are not too many examples of the first approach.

want payments to be a seamless part of them.

Best-in-class providers offer acceptance in all channels, but retailers


often have their own reasons to rely on different partners in different

In contrast to payments services, retail is rapidly becoming

channels or geographies. Because the merchant environment

omnichannel. The webshop is no longer an isolated part of the

consists of different components, both new and legacy, a one-

business but, rather, an extension of the physical stores, or vice

to-one match with available payment services will be challenging

versa. We also see physical stores functioning as pick-up stations

to find (figure 2). At the same time, a trend in payment services is

or drop off points for returns and merchant apps becoming a full

that they are increasingly offered as an integrated part of broader

feature channel. Retailers want the experience of the end-customer

commerce solutions. Therefore, the best option for omnichannel

to be consistent and seamless, they want to recognise customers

payments, I argue, are payment services that are easily combined

across channels and optimise the shopping process by using all

with others. We call this Open Payments.

available data. Payments are merely a part of this equation.


It is debatable whether having the same payment experience across
channels is the best implementation of omnichannel as different
channels pose different demands on the payment options offered.
What is important, however, is that the payment flow is optimally
integrated in a broader retail context and that the right data is
used to create consistent user profiles and optimise conversion.
Services are being combined to form integrated propositions for
specific use cases. Within these integrated propositions, payments
are only one of many parts. Retail is often just too diverse to design
payment methods that are universal (see Figure 2).

Figure 1: Different retail environments have different demands for


payment methods.

Successful PSPs have managed to establish a symbiotic relationship


with other service providers to create seamless experiences that
fit specific niches. These partnerships lean heavily on technology,
target merchants early in their life cycle, offer scalable solutions and
are geo-agnostic. Altogether, we refer to this as Open Payments,
as they rely on partnerships and are non-exclusive by design.
This combination of general components and the specific, targeted

12

ONLINE PAYMENTS MARKET GUIDE 2015

Jip de Lange
Senior Consultant
First Annapolis

services they are integrated in enable merchants to benefit from


economies of scale and high service levels, while offering a unique

About Jip de Lange: Jip is a Senior Consultant

and differentiating retail experience.

in First Annapolis Amsterdam office. He has


Even if payment experiences remain diverse across channels,

worked with leading card acquirers, processors,

PSPs should make an effort to accommodate omnichannel retail by

industry associations and technology providers

offering services that are easily integrated in the wider retail solution:

on various engagements. Jip holds an MSc in

open business models that are accessible, flexible and transparent

Civil Engineering from the University of Twente.

offer the best chance to fit the diverse needs of 21st century retail.

About First Annapolis: Founded in 1991, First


Annapolis is a privately-held management
consulting firm focused exclusively on
payments. Our team of 70+ professionals has
extensive experience supporting the most
prominent financial institutions, payment
schemes, payment service providers and
retailers. Throughout our history, we have
worked with many innovative new entrants to
the industry.
www.firstannapolis.com

Figure 2: Merchants will have to integrate payment solutions with


their operations and are likely to select certain components and
not others.

Omnichannel takes many different shapes


Retail is more global than the services it builds on, which
makes designing omnichannel payments challenging.
When a retailer stops distinguishing between channels
and geographies, this doesn`t mean that solutions are
universally available or that they should be offered in
the same way. Often, retailers apply different pricing
policies to different pricing to different geographies.
Also, legal requirements, shipping options, product
inventories, etc vary by country.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

13

Acapture
Dynamic Payment Thinking Will Be Key to Omnichannel Success

Since 2013, all traditional notions of how the typical ecommerce


consumer behaves have been torn to pieces by technology.
The image of the online buyer sitting at a desk, credit card in one
hand and mouse in the other, is long gone.
This is the era of omnichannel ecommerce, where your websites
visitors could be using any device in any location and paying via
any number of different methods. Needless to say, a seamless,
uninterrupted service is expected by each and every one.
As with everything else in the ecommerce world, so much hinges
on payments. A failure to allow your customer to purchase how,
where and when they wish will quickly send them running to your
competitors. To satisfy every buyer, we need to rethink how we
deal with the online payment process.

A new level of payment choice

Major opportunities, major complications

While everybody agrees omnichannel capabilities have already

On one hand, a world where your target consumer is never more

rearranged retail, there is far less agreement regarding what

than the push of a button away from a purchase promises an

should be done about it. Yet it is impossible to ignore. In 2014,

incredible ability to convert. On the other hand, the customer is

we witnessed the intense mainstream media interest generated

more likely than ever to walk away from the sale at a moments

by Apple Pays launch, the continued increase in popularity

notice, should they encounter the merest complication.

of mobile payments in Europe and a variety of cashless


payment methods being used at major events such as

Mobile payments, mPOS, in-app payments, responsive checkouts,

Coachella and Lollapalooza. Anybody who reads the headlines

O2O shopping all of these things have made the consumer more

can tell you: online and off, the world is hungry for newer, faster

accessible to the merchant. Yet, in return, the level of choice they

ways to pay for products.

offer has given the consumer a new power over the merchant. When
selling cross-border, the issue becomes yet more complicated, as

In Asia, Alibabas all-powerful presence makes running an

varied currencies and preferred payment methods come into play.

omnichannel ecommerce operation easier. With one industry


leader handling the whole process, from ordering to checkout

When your system places an obstacle in front of the buyer, you risk

to fulfilment and more, it is relatively straightforward to follow

instant cart abandonment. A seamless experience must therefore

the shopper from one touch point to the next and offer a quick,

be offered from the moment they arrive at your store to the moment

holistic buying experience.

they access the product. To do this, you need to make the payment
system nearly invisible in the process. Though there are plenty of

In the fragmented ecommerce markets of Europe and the US,

PSPs who claim to do just that, in truth, it is only a few, innovative

however, things are rather more chaotic. The sheer number of

providers who are really blazing a trail in this regard.

PSPs, marketplaces and channels available in these regions makes


crafting a seamless customer journey a far tougher task. Yet, the
rewards for the merchant who can do so will be extremely lucrative.

14

ONLINE PAYMENTS MARKET GUIDE 2015

John Snoek
VP Ecommerce
Acapture

Paying in an omnichannel world


When many providers claim to offer omnichannel payment
processing, what they actually mean is that they handle multichannel

About John Snoek: John Snoek, VP

payments. In other words, their solution has been designed to

Ecommerce at Acapture, has 20 years go-to-

securely deal with a select list of payment methods. As new payment

market experience in product development,

types are introduced, however, they are unlikely to have the flexibility

management and launch. Previously, John

to adapt to them quickly, if at all. If youre a merchant who uses one

was responsible for Global Marketing and

of these PSPs, this can soon see you tied down to an out-of-date

Alternative Payments at GlobalCollect and

system that does not satisfy a large chunk of your potential buyers.

was a consultant for the Dutch government on


ecommerce strategy.

So, how do you address the customers payment needs when those
needs vary so greatly from buyer to buyer and can change at any

About Acapture: Acapture designs payment

minute?

solutions for PSPs and ecommerce merchants


looking to expand internationally. It is the

At Acapture, our answer to this problem was to start from scratch.

daughter company of Payvision. Acaptures

We built an entirely new payment platform without any ties to

platform provides global card acquiring, 18

existing legacy solutions that are no longer fit for purpose in

ecommerce platform plugins and the ability to

an omnichannel environment. By starting afresh, with the card

handle over 50 of the most popular alternative

expertise of Payvision behind us, we crafted a secure, simple,

payment methods and over 150 transaction

integrated solution that was flexible enough to adapt to the huge

currencies.

number of payment methods being used in both domestic and


cross-border ecommerce. For us, it was only by approaching the

www.acapture.com

payment question from an entirely new angle that we could hope


to deliver a satisfactory answer.
Omnichannel ecommerce is, by its nature, unpredictable, with
technological innovations causing massive shifts in its landscape
with startling regularity. It is, therefore, the online merchants and
PSPs that have the ability to stay flexible in their operation that will
have the edge in this ruthlessly competitive arena. That applies
to all parts of the service, from products to payments to logistics.
Truly, this is a market in which the most dynamic thinkers will
triumph.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

15

Adyen
Revolutionise Your Shopper Experience with Omnichannel Payments

We live in a channel-agnostic world. Shoppers expect to move


seamlessly from a retailers physical store to its webshop, while
shifting from device to device as they go about their day. Although
this may present a daunting challenge, it actually means retailers
have more channels through which to convert browsers into paying
customers. The key to this is payments. With the ability to process
frictionless payments across all channels, from the same platform,
retailers can improve customer service, increase repeat purchases
and ultimately drive revenue. The benefits of a holistic, omnichannel
approach to payments are endless. But, what practical steps can
be taken to actually deliver it? Below, I will present some of the

Enable click-and-collect

fundamental omnichannel principals to keep in mind.

Click-and-collect allows the shopper to buy online and then collect


the purchase in a branch of their choice. This is a popular solution

Bring your online inventory in-store

used by 54% of survey respondents. But a key thing to consider

Losing a sale because an item is out of stock is frustrating for both

is that, when choosing click-and-collect, 41% of respondents

the retailer and the shopper. In a recent survey conducted by Adyen

nominated the ability to return the item in-store as an important

and Drapers, 41% of respondents said they had left a store because

factor. This highlights the necessity of a unified payments platform,

the item they wanted was not in stock. This translates into a high

which supports the in-store refund of online purchases.

level of lost sales. The solution is the Endless Aisle, which provides
shoppers in-store with access to the online inventory. In this way,

Support seamless payments

your shoppers can make the purchase, even if their item was not

Contactless payments have been around for some time, but the

in stock, and arrange to have it delivered to a location of their

advent of Apple Pay has pushed them front of mind. 22% of survey

choice. So the sale is saved and your customer leaves satisfied.

respondents said they would like to see contactless payment

Adyen worked with The Cambridge Satchel Company to

options in-store. There is a clear linear connection between the

introduce Endless Aisles to their stores in preparation for Black

introduction and availability of new payment technologies and

Friday 2014. The result was a 124% year-on-year increase in Black

their increasing acceptance. Therefore, retailers should identify

Friday sales.

and support the payment methods used by early adopters, and


consider how they can be used to deliver tangible benefits to

Eliminate checkout queues

these shoppers across all sales channels.

Another frustrating loss of sale is when a shopper leaves the


store because of the checkout queue as was the case for 55%

Adyen supports 250 payment methods worldwide and was one

of survey respondents. By equipping staff with mobile point-of-

of the first official partners of Apple Pay in-store and online in

sale (mPOS) terminals, retailers can deliver a faster payment

both the US and the UK. Its clients are always at the forefront

experience and close more sales.

of the latest payment trends, able to both anticipate and exceed


customer expectations.

16

ONLINE PAYMENTS MARKET GUIDE 2015

Roelant Prins
CCO

Adyen

Deliver a personalised payment experience


We are familiar with one-click payments. Amazon blazed the trail
online, offering 1-Click as early as 1999. Shoppers are used to

About Roelant Prins: Roelant is responsible

sharing sensitive information and 21% of survey respondents

for commercial activities at Adyen. After starting

confirmed they would be comfortable providing personal data if

his career as a consultant, he moved on to

it were used to enable a fast checkout for subsequent purchases.

the online payments industry in early 2000.


Throughout the years, Roelant has held various

The next step is to extend this personalised payment experience

international management roles in sales and

to offline channels. This requires the storage of highly sensitive

business development for companies providing

payment data, which can be a nightmare for retailers in terms

payment solutions to international ecommerce

of PCI compliance. Adyen uses tokenization to store shopper

businesses.

payment data on its own server so retailers can support one-click


or zero-click payments across all payment channels, safe in the

About Adyen: Adyen is the only payments

knowledge that their shoppers payment data is secure.

solution that has built a completely new set


of rails connecting to the card schemes and

With a unified omnichannel payments solution, retailers gain access

local payment methods, and the only solution

to valuable cross-channel shopper data, which can be used

to accept ecommerce and point-of-sale

to tailor the experience to individual shoppers. With this comes

payments in a single platform. Due to this,

enormous potential for incremental sales growth and increasing

Adyen is becoming the go-to solution for global

customer loyalty.

merchants including Mango, ONeill, Crocs and


Superdry.

Unlock your potential with omnichannel payments


With omnichannel payments, retailers can provide their customers

www.adyen.com

with an easy, personalised checkout experience, wherever and


however they choose to pay. Critical to success is the consolidation
of payments operations. Adyen is unique in that it is able to offer
its customers a single platform that will manage every step of the
payment flow regardless of location, currency, payment method or
channel. The result is a frictionless customer experience, valuable
cross-channel conversion data and a significant competitive
advantage.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

17

Ingenico Group

Ingenico Group took on a new dimension to offer seamless e-payments worldwide

Youve recently appointed Pierre-Antoine Vacheron

With the emergence of new consuming habits and ever-growing

EVP e-Payments. Is that new division a pillar of your

touchpoints, this is truer now more than ever. Not only we must

Group strategy? Are you stepping up towards online

provide the right technology but also the right consultative approach,

services?

with tools such as Elevate.

Although Ingenico Group has traditionally been the leader of the


payment terminal market, our business has changed. Todays consu

Can you tell us more about Elevate?

mers tend to switch from one sales channel to another and, for

We created Elevate both to provide merchants with a fast and

this reason, merchants are opting for solutions that can offer their

easy way to grow their business and because we saw that a lot

ultra-connected customers a consistent and seamless purchasing

of our merchants had trouble with getting good insights into their

experience, whether it is in-store, mobile or online.

business.

Ingenico Groups online payment business saw a turning point in

Elevate is a reporting tool and it is about opportunities. It is an

2014 with the acquisition of GlobalCollect. The Group took on a

intelligence tool that gives knowledge to the merchants so that

new dimension to offer seamless e-payment worldwide.

they can make better decisions based on big data, build their
knowledge around opportunities and get better performances.

With both Ogone, which we acquired in 2013, and GlobalCollect,


we expanded the rollout of our global service strategy and marked

Could you explain the value of Elevate towards your

a new stage in the transformation of the Group in favour of cross-

merchants?

channel initiatives. This move provided us with the opportunity

The main strength is that it was developed based on the real

to become a global player in the online payment market and to

business questions that our merchants had. We talk a lot with

replicate our in-store payment services leadership through our

our merchants and use their input to continuously improve and

online payment services.

expand the product. This way we also make sure that every new
dashboard we introduce provides value and helps our merchants.

We want to play an increasingly active part in new trends in commerce


as they emerge, and I am happy to share some news with you:

Elevate is a very visual, interactive, time-saving and easy-to-use

as a logical next step, we are in the process of creating a new

tool. The benchmarking functionality provides great value for our

commercial brand: Ingenico ePayments. The appointment of

merchants, allowing them to compare their performance relative to

Pierre-Antoine as EVP ePayments fully reflects our strategy to

their peers in the industry.

position the Group as the leading provider of innovative payment


solutions across all channels.

Whats next for Elevate?


We are committed to further expand Elevate based on the feedback

18

Merchants dont buy a product or a solution from us; they buy our

we receive developing new insights. However, the big thing we

expertise and our knowledge. It is through our knowledge that they

want Elevate to focus on is to not only show the performance of the

can enhance consumer engagement, improve their sales and in

merchant but also to provide predictions and recommendations on

the end deliver their promise to their customers.

how and where the merchants can improve their business.

ONLINE PAYMENTS MARKET GUIDE 2015

Philippe Lazare

Merchants dont buy a product or a


solution from us; they buy our expertise
and our knowledge

Talking about predictions, where do you think

Chairman and CEO


Ingenico Group

technology and innovation will take you in the next

About Philippe Lazare: Before joining Ingenico

decade?

Group in 2007, Mr Lazare (1956) was Executive

I believe trends will accelerate. From an innovation standpoint, we

Vice President of La Poste and CEO of its retail

must focus on trends, both globally and locally, and continuously

activity, where he was in charge of developing

deliver frictionless payment experiences, with a mobile-first

and optimizing what is Frances the largest

approach. Mobile commerce growth is already outpacing traditional

distribution network in France. He also held

ecommerce growth, and the consumer experience on a mobile

management positions at Sextant Avionics,

device will increasingly determine the success for online merchants.

a division of Thales and at Groupe PSA.

We are a strong player because we offer advanced and developer-

About Ingenico Group: Ingenico Group

friendly solution with a very large coverage. Consumers expect

(Euronext: FR0000125346 - ING) is the global

fast and easy payment on mobile, and our ePayments division

leader in seamless payment, providing smart,

is building new mobile commerce interfaces to help merchants

trusted and secure solutions to empower

increase their conversion rates and provide the best possible

commerce across all channels, in-store, online

consumer experience.

and mobile. With the worlds largest payment


acceptance network, we deliver secure payment
solutions with a local, national and international
scope. We are the trusted world-class partner
for financial institutions and retailers, from small
merchants to several of the worlds best known
global brands. Our solutions enable merchants
to simplify payment and deliver their brand
promise.
www.ingenico.com

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

19

yStats.com
Consolidation in Online Payments: Growing Through M&A and Investment

The global online payment industry is currently experiencing a stage

Services in order to enhance the North and Latin American

of growth. B2C Ecommerce sales worldwide, the main growth

Ecommerce payments business of DataCash, MasterCards own

driver, increase every year, already exceeding USD 1 trillion and

online payment gateway.

predicted by eMarketer to top USD 2 trillion in 2017. Meanwhile,


global online retail payments are forecasted to climb closer to 40
billion transactions per year in 2015, according to Capgemini .
Some of the traits common for industries at a growth stage of the life
cycle have been observed in online payments. Major players have
been acquiring smaller competitors and building large networks,
while fast developing emerging players have attracted significant
investment. Both types of online payment providers are motivated
by similar aims in their acquisitions and funding activities, such as
tapping into new markets and increasing their geographical spread,
expanding the payment options offerings and covering more retail
payment channels in an increasingly omni-channel world.
There are multiple recent examples that illustrate the abovementioned
trends. In 2014, Ingenico Group acquired another European
payments provider, GlobalCollect, to join it with Ingenico Payment
Services, the groups digital payments processing unit already
consisting of previously acquired online payments companies,

Another possible way of reasoning an acquisition strategy is based

such as Ogone, Easycash and others. GlobalCollects worldwide

on both geography and market offering expansion. In some emerging

reach and solid customer base of large merchants complement

markets credit card is not the most used payment method in B2C

Ogones European coverage and Tier 2 and Tier 3 merchant base.

Ecommerce, with consumers opting for alternative methods like

Considering that the worlds Ecommerce growth potential lies

cash on delivery or bank transfer. Also, in advanced markets,

within the untapped emerging markets, which are targeted by major

offering more payment methods is one possible way to market

online retailers, striving for a global reach is one possible market

online payment services to merchants that are willing to please their

expansion strategy.

customers with diverse payment method preferences. Germanybased payments company Wirecard carried out acquisitions in late

Geographical expansion through acquisitions could also be aimed

2014 and early 2015, seemingly aimed at both expanding to new

at advanced regions which already have large online retail payment

markets and offering new payment methods like mobile payments

volumes for the companies to process. North America is one of

and prepaid cards, including the acquisition of GFG Group Limited,

such regions. The US alone generates over USD 300 million in B2C

a company from New Zealand working with mobile network

Ecommerce sales value, according to Forrester, and is still the

operators and financial institutions, and an Asian subsidiary of Visa

largest online retail market in the world in pure B2C sales, though

Processing Services.

outpaced by China if this countrys C2C segment were also to be


included. For instance, at the end of 2014, MasterCard completed

Finally, covering more retail channels is another avenue for

the acquisition of the Gateway Services unit of Transaction Network

online payment companies to pursue in strategic development.


Consumers buy across various channels such as online, in-store
and on mobile, rather than just one, and often mix them through

20

ONLINE PAYMENTS MARKET GUIDE 2015

Ycel Yelken
CEO and Founder
yStats.com

activities such as webrooming and showrooming, thus encouraging


merchants to offer more omni-channel functionalities and a seamless
cross-channel shopping experience. Hence, the more channels a

About Ycel Yelken: Ycel Yelken, ASU

payment processor offers, the more merchant needs it addresses.

Thunderbird School of Global Management

To develop cross-channel capabilities in a technology-intensive

alumnus, has a combined total of over 15 years

industry, substantial funds are needed, with one way to raise

of B2C Ecommerce and online payment market

them being through attracting investment. Adyen, a primarily

research experience, having worked for a leading

online and mobile payments provider based in the Netherlands,

global Ecommerce company before founding the

attracted USD 250 million in funding in December 2014, which

successful yStats.com.

brought the companys valuation to more than USD 1.5 billion, as

The Financial Times reported. The investment was planned to

About yStats.com: Founded in 2005 and

be used for developing an in-store payments offering, as well as

headquartered in Hamburg, Germany, ystats.com

expansion in Asia and the US.

is one of the world's leading secondary market


research companies committed to providing

As the online payments market continues to grow along with

up-to-date and objective data on global B2C

global B2C Ecommerce in the coming years, we can expect more

ecommerce and online payment markets to

consolidation and investment activity to account for the persistent

sector-leading companies worldwide.

trends of geographical and cross-border expansion, the rise of


alternative payments and the importance of omni-channel retailing.

www.ystats.com

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

21

EXPLORING
CROSS-BORDER:
THE BIG GAME IN
ECOMMERCE

MRC
Business Intelligence: Multiple PSPs Compare Performance

Once business has grown, it is always safe not to only rely on a

However, if you are bound to expand fast and globally, this is

single provider. Multiple providers will provide complementary

definitely not the most convenient choice because collecting and

payments method portfolio, failover, load balancing and of course

international platforms can be a smarter choice for expansion,

keeping the pressure on the budget.

although it comes with a higher price tag per transaction.

Living in a competitive world

Words of merchants vs your own experience

PSPs have popped up like popcorn at the movie theater in the

Many merchants still do not rely on the community to get a

payment space thanks to the growth of ecommerce. They have

feedback on PSPs. Getting knowledge fast is critical and real

become so numerous that it has become difficult to list them all.

feedback comes from fellow peers that already have experiences

Nowadays, merchants are like consumers in the supermarket

with the PSPs. Some PSPs have also questionable knowledge of

in front of various goods and not knowing which one to pick.

local markets, so do not just turn over the brochure and check

The market is already significant and still expanding fast. Now,

your requirements, refunds and settlement can often be left behind

retail and digital are merging and are trending toward omnichannel,

in their platform.

making things even more complex. Although many claimed to be


better than their competitors, it appears that only a few can come

Multi PSP roommating or how to set competition

on top of this melee.

drivers
Once your multiple PSPs are set up, you will need to be able to

Sourcing multiple payment providers

allocate business shares to each PSP.

How many of us have performed a RFP for sourcing a new solution


provider to tag along the way? However, no matter how skillful we

KPIs: MRC have set a few ones for benchmarking the industry

are, there are always surprises. So its always a tradeoff between

and they are already a great step forward. These KPIs have a

benefits and drawbacks. Merchants have to define their focus and

purpose to serve and one should keep it in mind: benchmarking

objectives: payment page integration, support, portfolio of payment

the operational excellence of your providers.The playing field

methods, collecting features, reporting and business intelligence

should be properly designed and each PSP should be aware of

platforms. It all comes down to what your requirements are. As

the rules. Most common are costs, conversions, authorisation,

always, the devil is in the details and the perfect PSP is yet to come.

approval, soft decline vs hard declines per device, availability of


the platform.

Should I go for local or global PSPs?

Objectives can vary for each company so choose KPIs accordingly

It all depends on your strategy, i.e. some markets are so specific

P ricing comparison: onboarding several PSPs enables you to

that a global PSP cannot provide strong local insight and payment

benchmark cost and definitely helps getting the best pricing.

culture subtleties. If your market is mature enough, you should

Periodic reports on KPIs: have your PSPs or your BI team provide

have a local dedicated payment manager. A local payment

you with reportings. Have your recurrent follow-up call with your

manager for handling local PSP will most likely improve conversion

PSPs.

due to local payments knowledge. However, cost-wise, it will be

Service Level Agreements: SLA were designed to maintain some

more expensive due to the additional headcounts. Nonetheless,

QoS with PSPs. Include them in the KPI you share during your

some countries are culturally tied, some local operators only work

recurring meeting with your PSPs. Make sure you execute the

better with local operators or merchants. Some large merchants

penalties when you believe fit and that indicates the vendors

can have this strategy.

have been faulty. Repeated mistakes can indicate lack of


professionalism.

24

ONLINE PAYMENTS MARKET GUIDE 2015

MRC

Building

Son Nguyen

Fraud & Payments Professionals

vente-privee

Better Commerce

Finance Program Director

Human factor: behind companies, behind technology, never forget


that it is people who drive the business. A good cast can make
a difference. It might sound harsh, but sometimes having the

About Son Nguyen: Son is Finance Program

right person that can fit in the relationship makes the difference.

Director at vente-privee. He oversees global

In short, if you believe your account manager is not the right fit,

strategy, product roadmap for payment and

ask for a replacement.

fraud. Son is an EU board member of the


Merchant Risk Council and part of the French

Payment is not always about cost

Merchant association FEVAD.

Many merchants believe that payments processing is a cognitive


science where all results are predictable. But, seasoned veterans

About MRC: The MRC is a nonprofit global

of this industry will tell you otherwise. Pricing in the payment world

forum for ecommerce fraud and payments

is complex to benchmark. You can have 4 PSPs with a specific

professionals. It was launched in 2000 by a

pricing model for each one of them and various performances

small group of industry professionals from

and features. I recommend defining a common matrix for price

leading consumer brands, with a primary goal

comparison for basket average value and according to the volume

to combat online fraud in the card not present

processed. Add to it performance KPIs you wish to follow for each

space. The MRC later added online payments

of your PSPs. It might be worth having financial controllers and

to its portfolio, expanding its presence further

data scientists going through your data. Optimal mix calculation

into ecommerce.

can be quite an undertaking and not to be underestimated.

www.merchantriskcouncil.org
For example, some cost savings like going cross-border in EU
can have an impact on interchanges budget but, in some cases,
conversion can be impacted as well. Is saving 20% on your fees
worth losing a 10% on your revenue, or maybe not? But how about
30% savings vs 1% of loss conversion? There is no silver bullet,
only the fact that you need to define your optimum and key drivers.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

25

Wirecard
The Appeal of Cross-Border Ecommerce for Neighbouring Countries

These days, starting a new online shop in the home country is

If goods were to be transported to Asia or the US, costs relating to

relatively easy. A shop can be launched with a good combination

currency exchange and shipment may impact the buying experience

of payment methods in just a few simple steps. However, if online

and ultimately also increase prices. One exception in this regard:

merchants wish to expand abroad, they are confronted with a

if digital products are being sold online, because these, of course,

variety of challenges: other languages, different buying habits and

do not generate transportation costs.

unfamiliar payment preferences.


The European Union is working on establishing new standards
Despite this, online merchants should not be afraid of looking

that will make online trade throughout Europe less complicated.

beyond their own borders, because cross-border ecommerce offers

The introduction of SEPA in January 2014 is just one example.

great potential. Never before have online retailers been able to

This has reduced the complexity of cashless payment transactions

sell abroad as easily as they can today. The ecommerce market is

within the eurozone. As a result, payment by direct debit has

booming, with successful international online merchants generating

become more popular as a payment method in the eurozone.

sales worth billions. OC&C Strategy Consultants and Google predict

Previously, it was only really known in Austria and Germany.

that the online sales volume attributable to cross-border sales will


increase fivefold by 2020 in six of the largest ecommerce markets,

Its important to create standardised solutions

including Germany.

Standardised solutions such as these are important as they reduce


the barriers to cross-border trade. Many cultural differences remain

According to a recent study by Research and Markets, Asia and

within Europe, including with regard to payment preferences.

the US are indeed the powers dominating the global cross-border

For example, in Poland a country with very strong ecommerce

ecommerce market, with experts predicting that the Asia-Pacific

growth shoppers often opt for local online payment methods such

region will account for around 40% of global internet retail in

as Prezelwy24 (P24). Even in the Netherlands many place their trust

the coming years. Nonetheless, Europe is also advancing. Trade

in national online banking-based processes such as iDEAL, while in

between EU members has intensified quite significantly over the

Belgium Bancontact and Mr. Cash are popular. Foreign merchants

past few years.

wishing to operate in these ecommerce markets have no choice


but to adapt. The same applies for debit card acceptance which is

New growth potential

widespread in the UK.

This is a good sign for both merchants and consumers: customers


benefit from an ever greater choice of products and are better able

Efforts are also being made to improve standardisation in the

to compare prices. For online merchants, cross-border ecommerce

area of risk minimisation for customer verification. The European

opens up growth potential by appealing to new customer groups.

Banking Authority has issued new guidelines on the security of

However, sellers should bear in mind that the most promising

internet payments, according to which payees will have to submit

prospect is to first turn to the neighbouring countries before

two separate factors for authentication in online transactions.

endeavouring to expand into the rest of the world.

Guidelines such as the Secure Pay Directive (PSD II) show that the
European Commission intends to make cross-border payments

Why? Because there are generally fewer hurdles to these countries.

faster and more secure in order to minimise the risk for end

The customers live in a similar cultural sphere, may even speak the

consumers.

same language and use the same currency. In addition, it is easy to


calculate the transport paths and shipping costs.

26

ONLINE PAYMENTS MARKET GUIDE 2015

Linda Uhl
Head of Platform
Development and
Innovations
Wirecard
New security methods for all countries
This effective method for countering data theft and misuse is
known as two-factor authentication. It involves two specific

About Linda Uhl: Linda Uhl is Head of Platform

information requests and the combination of two different

Development and Innovations at Wirecard, a

communication channels. For example, for online purchases, just

leading payment service provider. She is an

the card number and CVC code are required. In a second security

expert of cross-border ecommerce and involved

level, customers receive a one-off password or verification code

in the ongoing development of Wirecards

on their smartphone via SMS, which they then enter to confirm

international payment portfolio.

the transaction. It is also possible to use other biometric data or


(hardware) tokens. This straightforward, momentary change of

About Wirecard: Wirecard AG is a global

media makes it significantly more difficult for hackers, whilst still

technology group that supports companies

ensuring a customer-friendly buying process.

in accepting electronic payments from all


sales channels and countries. As a leading

Standardisation is also required when it comes to the development

independent supplier, the Wirecard Group

of alternative payment methods. Acceptance in society is becoming

offers outsourcing and white label solutions for

ever higher, with the variety of alternative payment options growing

electronic payments. Wirecard AG is listed on

at the same time. With this in mind, it is important that banks work

the Frankfurt Securities Exchange.

together throughout Europe to establish uniform alternative payment


processes and standards on the market. If every bank has its

www.wirecard.com

own solution, there is a danger that both consumers and online


merchants will find the situation confusing.
Of course, it takes time to establish new initiatives, such as
SEPA, which are aimed at benefiting many different countries. It is
therefore all the more important to launch further initiatives. Trust is
absolutely essential for cross-border ecommerce: if customers feel
secure in an online shop, with payment methods they recognise and
feel it is reputable, they are more likely to shop there again.
Payment providers like Wirecard support online merchants in
mastering this challenge. With a German bank licence and expertise
as a financial technology provider, Wirecard is proficient in handling
cross-cultural payments and their processing.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

27

PayU
Cross-Border Ecommerce: How a Local Approach Can Make the Difference

As companies look beyond their borders for new opportunities,

2. Use a local acquiring bank

they are often faced with an enticing opportunity to start selling

By ensuring that you are using a local acquiring bank rather than

online in markets where the growth far outpaces what is happening

an international one will significantly help your approval rates.

at home. But this also comes with a web of complexities that are

We have seen merchants in Brazil increase their conversion rate

not encountered in your primary market(s). These complexities

from 20% to 75% by changing from an international acquiring bank

provide new opportunities to merchants, but they also require a

to a local one.

distinct strategy to fully take advantage of the double digit growth


in these markets: a local approach.

Another important reason to use a local acquiring bank is to


be able to offer consumers the option to pay via credit card

It is important to note that going local does not always mean that

using instalments. Instalments, essentially, are where the credit

your company must have a legal local entity in each country. There are

card issuing bank allows for the consumer to pay for his

many instances where it is not necessary, depending on the country

purchase in a specific number of instalments, rather than all

and what you are selling.

up front. The cost of this option is paid by either the consumer,


merchant or bank, depending on the specific promotion.

Below, there are my top recommendations to ensure your business

The details vary by country, but this alternative provides an additional

can take advantage of the opportunities in growing markets by

incentive for the cardholder to make the purchase. In Turkey, 80%

implementing a local approach.

of transactions are made with credit card and of those, 85% use
instalments. In Argentina, because of the high levels of inflation,

1. Offer local and alternative payment methods

many consumers will only make online purchases with credit cards

In many of the high growth markets where we see ecommerce is

where there are promotions for instalments without interest.

increasing in the 20% range, the local markets do not have the bank
nor credit card penetration rates that we see in Europe and the US.

3. Go local on fraud management


Online fraud and its behaviours can vary greatly market-to-market.

While the credit card penetration rate varies by country, in many

What works well in one market to detect fraud, might not work in

of the markets where PayU operates, the credit card penetration is

another market. Having a company that is local and understands

less than 50%. By only offering consumers in these markets credit

what the trends in fraudulent activities are, will minimise your risk

card payments, you could be missing out on more than half of the

of fraud and maximise your conversions. It is also important to

market. Many of the transactions we process in these markets are

have a connection to the local credit bureaus and databases to

made via local credit cards (not associated with an international

ensure the evaluation data is the most up-to-date and valid. In

franchise), debit cards, bank transfers, cash payments, cash on

PayU, we have in-house fraud systems that have been built and

delivery, e-wallets and more. In Poland, more than 60% of the

adjusted over the years with data from the local markets to ensure

transactions are paid by bank transfer, whereas in Argentina, more

we are always one step ahead.

than 50% of the transactions are paid in cash.

4. Understand the trends and habits of consumers


Other countries like India are seeing dramatic growth in the use

Each market has different behaviours and levels in the development

of e-wallets and other state-of-the-art technologies. The reasons

of its ecommerce industry. Knowing the local consumer behaviours

and the trends for the alternative payments come from a variety

will help ensure that the way you are planning to reach and sell to

of circumstances, including everything from the economic state of

the local market will work. For example, the checkout process and

the country to the consumers access to technology to purchasing

information requested varies dramatically per country.

habits of consumers.

28

ONLINE PAYMENTS MARKET GUIDE 2015

Martin Schrimpff
Head of Global Sales
PayU

It is important to understand what consumers are accustomed to


provide when making a purchase online, to maintain a low level of
abandonment during the checkout process. Trends are also moving

About Martin Schrimpff: Martin Schrimpff

quickly in many markets to mobile purchases. Those who cannot

is the Head of Global Sales and a co-founder

afford a personal computer, but own a mobile, are expecting to

for PayU. With over 13 years experience in the

have an easy user experience while purchasing via a mobile device.

payments and tech industry, he is responsible

If you do not offer what the local market expects, you will not be

for supporting multinational merchants to enter

able to capitalise on the growth potential of these markets.

the markets where PayU operates.

To reiterate, there is a huge and growing opportunity to increase

About PayU: PayU is a leading online payment

sales by going cross border. In many of the markets where we

service provider dedicated to creating a fast

operate, we are seeing more than 20% growth year-on-year and

and secure payment process for merchants and

that is not expected to change over the next few years.

buyers. Our presence in 16 high growth markets


and local focus enable us to be the experts and

However, to fully take advantage of this, you must genuinely

provide the best solutions for each market.

understand what it is to go local in each market, as each one is

PayU makes up the e-payments division of

different. If you offer your customers the most user-friendly

Naspers Ltd.

experience, your cross-border sales will be successful.

www.payu.com

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

29

East-West Digital News


How Chinese Giants Have Become a Driving Force for Russian Ecommerce
and E-Payments
Since both the RUB and consumers demand began falling

inked a deal with Ulmart, Russias leading domestic ecommerce

in 2014, Chinese online retailers have seen their share of the

company. JDs products will be promoted and sold via the Ulmart

Russian online retail market increase dramatically. While many

website by using its fulfilment centers and pick-up points across

Western ecommerce companies have seen their sales to Russian

the European part of the country.

consumers stagnate or fall, Alibabas subsidiary, AliExpress, has


become number one ecommerce operator in Russia by

Among other major Chinese players having entered the Russian

traffic and number of fulfilled orders, overrunning even the most

market over the last couple of years are DinoDirects subsidiary

popular Russian websites.

Osell, which is developing an original B2B2C approach, as well as


LightInTheBox.com and DealeXtreme.com.

In late 2014, the Chinese B2C platform sent hundreds of thousands


of packages to Russian consumers every day, and the numbers

Even more recent Chinese entrants are DHgate.com, TradeEase

were reported to have been growing in 2015.

and Umkamall.com, which began operating in Russia in August


and September 2015.

Thus, Chinese merchants are capturing almost the entire growth


of cross-border ecommerce flows to Russia. In 2014, their share

Worthy of note are also such Russian platforms as Kupinatao,

accounted for around 70% of fulfilled orders and 50% of market

Shopotam and Vivatao, which offer a fully localised interface as

value, according to expert estimates cited in EWDNs recent study.

well as mail-forwarding services to make purchases on Chinese


websites even easier.

While Russias production capacities in the field of consumer


goods are widely known to be the weak point of the countrys

Traffic of some domestic and foreign ecommerce websites in Russia

economy, its neighbour, China, has plenty of resources to

(number of monthly visits in July 2015 with changes in % from July 2014)

manufacture these goods. The low priced Chinese-made goods


are ultimately the biggest attraction for Russian consumers,
especially as the Russian economy experiences slowing economic
growth and the RUB continues to depress against the US dollar.

First step to global expansion


Although AliExpress has been one of the first, it was not the only
large Chinese B2C player coming to Russia. In June 2015, JD.com,
Chinas largest online retailer, launched a Russian version of its
platform as the first step in its global expansion strategy. Its stated
goal was to conquer a 20% share of the Russian ecommerce
market. JD.coms English version had already been accessible to
Russian customers for two years, but with no marketing effort or

Source: SimilarWeb via A Petrovsky (Price.ru / Rambler & Co)

adapted logistics to serve them.

Payment innovations

30

Now, JD is ready to invest several dozens and up to one hundred

Not only have these players had to localise their interface, at least

million dollars to develop logistics facilities in Russia, said Victor

partly, while coming to Russia, but they have also had to comply with

Xu, President of JD.coms international business group, as quoted

Russias new legislation on personal data storage and adapt

by the Russian media. Moreover, the Chinese online retailer has

their processes to address the countrys idiosyncrasies.

ONLINE PAYMENTS MARKET GUIDE 2015

Adrien Henni
Chief Editor and
Co-founder

East-West Digital News


In certain cases, innovative payment methods have been launched.
Thus, the AliExpress platform accepts payments via QIWI, Yandex

About Adrien Henni: The author is co-founder

Money and WebMoney, the three leading e-currency operators

and chief editor of East-West Digital News.

which combine online and offline payment channels across

After 10 years of experience in the digital

Russia. The Chinese company has also made mobile payment

and venture industries in France, Russia

methods available, with Alibabas in-house payment system, Alipay,

and Ukraine, Mr Henni advises a variety of

partnering with Russian payment company Rapida and mobile

companies.

solution provider Soyuztelecom. These payment methods have


been made available to subscribers of the four main Russian mobile

About East-West Digital News: East-West

operators Beeline (VimpelCom), MegaFon, MTS and Tele2.

Digital News is an information company


dedicated to digital industries in Eastern

Mobile payments have been developing fast over the past few

Europe. Its websites EWDN.COM and UADN.

years in Russia, with all major mobile carriers launching ambitious

NET provide news and business analysis on

mobile payment platforms. So far, however, this payment method

Russia and Ukraine. The company also provides

has been used essentially to settle utility bills and online services

in-depth industry reports and consulting

rather than for online purchases of physical goods, as analysed

services to international players.

in EWDNs ecommerce research . In a certain sense were


pioneers in this field, commented Mark Zavadskiy, AliExpress

www.ewdn.com

business development director in Russia.


Whats more, AliExpress has teamed up with Russian online bank
Tinkoff Bank to launch a co-branded loyalty program. Associated
with MasterCard credit and debit cards, this programme is the first
of its kind in the world, said Zavadskiy.
DHgate, too, has been relatively innovative by launching a cashon-delivery offer in partnership with QIWI and express shipment
operator SPSR Express.
Cash-on-delivery is, by far, the main payment method in Russian
ecommerce as far as physical goods are concerned, as consumers
are reluctant to pre-pay their orders through electronic means.
However, the cash-on-delivery option had been the exception
in cross-border sales, with SPSR only launching pioneering
experiments in 2013 and 2014.
East-West Digital news has published an in-depth report on
ecommerce and e-payments in Russia. To download a free
summary, please click here.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

31

IMRG
Cross-Border Ecommerce: A Big Opportunity and a Major Challenge
Ecommerce - a global perspective to growth

Foresters report, Seizing the Cross Border Opportunity, highlights

As digital penetration grows, so does ecommerce. Consumers are

that these new growth avenues are not only for the global

getting comfortable and more adventurous in their online purchasing

retailers, but also for SMEs. They are well positioned to leverage

habits. They also have a choice of devices which means that the

the increasing availability of support and delivery services and

larger section of the population has access to virtual shopping.

marketplaces, whilst offering unique merchandise and addressing


the varying needs of the international consumer, often overlooked

However, the rate of growth in the developed markets is slowing

by the large retailers.

down whilst the other regions, such as Asia, Latin America and
Eastern Europe, are developing fast and with huge growth capacity.

Language plays an important part. English speaking countries tend

The online sales percentage, from overall sales, ranges from 27% in

to sell and buy more abroad while those countries with language

Denmark, 24% in the UK, 12% in China and 7% in the US to less

ties such as Spain and Latin America will have a closer online

than 1% in India and Indonesia (Eurostat, IMRG).

trading bond.

Currently, China leads, with USD 565 billion predicted in 2015.

Finally, marketplaces like Amazon, Alibaba and eBay are allowing

The US is second, with USD 349 billion and the UK is third with USD

borderless transactions for everyday items with the same ease

104 billion. From 2014 to 2015, there was a staggering 35% growth in

as shopping at local corner shop. According to a recent study

China, whilst 16% in the US and 17% in the UK. Russia and Brazil are

conducted by the Ecommerce Foundation, collectively they will

also growing by high double digit percentage (eMarketer, December,

own almost 40% of the global online retail market by 2020.

2014). The European ecommerce is growing dramatically, collectively


being second after China. It grew by 16% in 2014, with total volume

Planning for challenges

of USD 410 according to the Ecommerce Europe trade group.

Selling online in multiple countries removes traditional barriers


like opening shops and legal entities, but it entails additional

The desirability of cross-border sales

challenges: retailers need to understand many new areas to

As the developed markets are looking for further growth, they are

them in order to comply with the regulations, satisfy customer

starting to explore the emerging opportunities abroad. According to

expectations and stay competitive with the locals.

2014 eMarketer study, cross-border ecommerce sales reached USD


300 billion, nearly 25% of the global ecommerce flow. Consumers get

Packing and postage charges can easily exceed the price of the

more familiar with digital shopping and start seeking cheaper, better

goods themselves. This is often not obvious from the initial search

quality or unique products abroad.

and frustrates the consumer when it becomes apparent only at


checkout. Intelligent shopping carts and clear labelling are key to

Whilst China and the US are by far the biggest cross-border

getting this right.

markets, some European markets rely heavily on selling


abroad, with the Nordic countries like Denmark, Finland and

Returns can prove notable customer satisfaction challenges. Is it

Lithuania being ahead of Italy, France or Spain. Building on

worth sending a product bought through a marketplace from Indonesia

the retailer interest to sell abroad, AT Kearney has devised a Retail

back and pay for delivery of the replacement? Clear policies and

Ecommerce Index, weighing up a number of criteria such as online

product strategies are needed, and the use of local delivery and

market size, consumer behaviour, growth potential and infrastructure

support companies can help address this better.

to publish a list of the most desirable ecommerce markets. The top


ten list in 2015 is, as follows, from top: US, China, UK, Japan, Germany,
France, South Korea, Russia, Belgium and Australia.

32

ONLINE PAYMENTS MARKET GUIDE 2015

Masha Cilliers
Digital Payments
Consultant
IMRG
Accepting international credit brands like Visa, MasterCard or Amex
can be challenging. Generally, the schemes prohibit acquirers
working with retailers from other countries than theirs, meaning they

About Masha Cilliers: Masha Cilliers is

will have to work with their local providers for international payment

Digital Payments Consultant with 20+ years

acceptance. Thus, retailers will not benefit from the local, frequently

experience in the payments industry. Prior to

much lower card fees: their domestic payment providers may not

becoming a consultant, she played key strategic

be as well informed about the specifics of the foreign markets as

management roles at DataCash, GlobalCollect

the local providers. New payment methods are announced every

and Cybersource. Before that Masha worked at

week, such as the well-publicised launch of Apple Pay and, whilst

Microsoft and Visa.

some of them might not get a chance to gain market share, others
already have and will have and be very much accepted and even

About IMRG: IMRG (Interactive Media in Retail

expected by the consumers.

Group) is the voice of online retail in the UK.


We are a membership community comprising

The VAT system in the EU has changed recently and the companies

businesses of all sizes multichannel and

selling abroad over a certain volume will have to register locally

pure play, SME and multinational, and solution

for the value add tax. There are also various regulations as to the

providers to industry. We support our members

information about taxes and how it should be presented to the

through a range of activities including market

consumers online, not to mention the different types of consumer

tracking and insight, benchmarking and best

rights and chargeback processes for the variety of payment

practice sharing.

methods used abroad. As an illustration, the direct debit transaction


in Spain is open for chargeback indefinitely, whilst in the UK it

www.imrg.org

expires after six months.

Conclusion
Indeed, cross-border is the growth area of ecommerce. But, there
are many aspects of it which retailers should study carefully before
committing to the glories of international trade!

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

33

PAY360 INNOVATE
25 November 2015, Vinopolis, London
Advancing Payments Innovation

Join us at the Emerging Payments


Associations flagship event to discuss
the latest in payments innovation.
Highlights include:

SPONSORSHIP
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Our Innovate showcase featuring the latest trailblazers


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PayTech innovations are we at the Uber point for banks?
Keynotes from renowned FinTech investment expert Matteo
Rizzi, SBT Venture Capital on PayTech investment trends,
and Dr Nicola Millard, Head of Customer Insight, BT
about putting the I into intelligent customer services
A dedicated PayTech specific exhibition to meet the
Payments people who count!
Join the conversation
@EPAssoc #EPAInnovate

Tel: +44 207 378 9890


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events@emergingpayments.org

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DIGITAL
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AND GROWTH
POTENTIAL

arvato Financial Solutions

We aim to make the complex payments world simpler. Hence, we strive to make merchants lives less cumbersome.

What are the strategic challenges that merchants

We view ourselves as an aggregator of best practices and

face when choosing and implementing alternative

constantly challenge our setup in order to deliver globally local

payments?

payment services. We want to be regarded as a valued partner by

The main challenges include proper research regarding local

our merchants.

penetration and growth rates, as well as legal and technical


constraints. Selecting the true local payment heroes is key when

In an internet economy, cross-border ecommerce has

it comes to checkout conversion optimisation. Yet, the selection

become commonplace. What are the implications

process is rather difficult. There are so many APMs around

for online fraud internationally and how does this

hundreds globally - and it is not always easy to assess which APM

influence merchants' strategies?

is truly necessary in a certain market for a specific merchant vertical.

To most international players it is not adequate anymore to limit

Plus, additional APMs pop up all the time, sometimes shifting the

payment options to cards. As ecommerce is maturing, merchants

APM landscape and making established players obsolete.

are more focused than ever on delivering local payment solutions


to cater to local demands and, at the end, to increase payment

Once a merchant has agreed on its APM strategy, the real

conversion. By diversifying payment options, merchants are also

workload unfolds. Even if the merchant is working with collecting

faced with novel process flows and fraud issues associated with

PSPs, some alternative payment methods require the merchant

specific payment methods.

to sign a direct contract. This puts a burden on the merchants


legal team. Furthermore, technical implementations are necessary,

For instance, a common parameter of any fraud solution is the

blocking scarce IT resources.

physical address. At the end, the fraudster wants to receive the


goods he fraudulently ordered, yet he does not want the transaction

How does arvato Financial Solutions address these

to be linked to his local address. Thus, the risk potential of internatio

challenges?

nal shipping addresses needs to be assessed. Sometimes, fraudsters

We aim to make the complex payments world simpler. Hence, we

also take advantage of newly developed omnichannel strategies.

strive to make merchants lives less cumbersome. By conducting

If goods can be ordered online, but picked up at the store, an

thorough APM research, bundling contracts whenever possible and

important parameter (the address) is lost. Professional fraudsters

providing a single gateway for international payments, we simplify

make use of that fact and try to use the circumstance to their

processes for our clients.

advantage. This means that the fraudsters themselves impact


merchants decision making.

What differentiates your API model from others?


We realised early on that there is no one-stop shop when payment

Different local payment solutions influence merchant strategies.

methods are concerned a realisation triggered by our own merchant

For example, open invoice, a pay after delivery payment option

business (we sometimes act as a merchant of record). Hence, we

widely desired by German consumers, requires merchants to send

bundled the payment method offer of various leading payment

out a parcel without an underlying payment vehicle (such as a

service providers (PSPs) in order to maximise conversion globally.

credit card) that can be analysed and scored. Hence, merchants


need to take different data sources into consideration when
deciding to offer such payment methods to shoppers.

36

ONLINE PAYMENTS MARKET GUIDE 2015

With customer-friendly checkout


processes, arvato easily increases
your conversion rate. And we ensure
a convenient purchasing experience

Jan Richard
Head of Payment Services
arvato Financial
Solutions

For open invoice, a consumers credit worthiness needs to be


assessed, something completely uncommon when it comes to card

About Jan Richard: Jan Richard is head of

fraud practices.

payment services at arvato Financial Solutions,


a Bertelsmann company. After graduating from

At arvato Financial Solutions, we provide exactly those tools to

Wichita State University (USA) he returned to

make the right choices. Many merchants trust us in making these

Germany to earn his MBA at WHU in cooperation

decisions for them and outsource the complete process to us,

with Kellogg (Northwestern University).

which is certainly a strategic merchant decision.

About arvato Financial Solutions: arvato


What are some innovative approaches to risk

Financial Solutions is a global and Europes third

management youve addressed?

largest integrated financial service provider and

We asked ourselves the following question: What does the

part of Bertelsmann. The company has around

merchant want when it comes to risk management? And the

7,000 employees in 22 countries, including a

answer was easy: No risk! We are convinced that any merchant

strong presence in Europe, America and Asia,

would agree as long as conversion rates are in check. Thus, we

and offers flexible full-service solutions for

have invested in creating a solution that does not just cater for

the value-oriented management of customer

local payment acceptance, but also outsources all risk to us. We

relationships and cash flows.

aim to secure all payments for our clients - from local APMs such
as open invoice to international credit cards, by actually purchasing

finance.arvato.com

receivables combined with a completely transparent pricing model.

How do you foresee the payments landscape evolving


and how will this affect the way merchants accept
payments in the future?
Disruptive technologies such as cryptocurrencies will probably play
a role. With more certainty, I believe that consolidation will continue
in this industry. At the end, supply will be triggered by consumers
and merchants yearns. The desire for more convenience in every
transaction will shape the future payment landscape.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

37

ONPEX
Planet of the APIs - Making Banking and Payments Programmable

ONPEX stands for The Online Payment Exchange. Christoph

The test environment should be usable, stable and performant

Tutsch, Founder and CEO of ONPEX, explains: At ONPEX we

and therefore should provide no big hurdles for developers to

have built a platform that enables access to and interactivity

overcome.

with many payment methods and payment-related products.


Everything available on our platform is seamlessly integrated

API integration needs a teacher or support team who can fully

and accessible, configurable and controllable via APIs.

provide working examples with context and fully supporting the

Our focus is to keep these APIs as simple as possible.

process from the beginning to the end. In payment terms it would

Our customers can easily integrate our APIs into their shops,

be the complete workflow from procurement to receive funds

gateways or own software development projects.

physically.

Understanding the planet of the APIs

2. High performance

As the title indicates, APIs can seem something alien. But, it is vital

Once the rules of the language are understood, and you are able

that they are understood because banking and software developers

to test some communication, the next step is the speed of the

are increasingly looking to simplify the integration of application

communication. For APIs, this means that there needs to be

programming interfaces (APIs). With multiple choices, it is important

a low latency and execution time. Time equals money and, if

that payments providers, merchants and banks comprehend what

transactions are too slow, then either the API is not doing its job

makes up a good API and choose the right APIs to work with.

properly or it is not being used properly.

How APIs work is actually straightforward. Comprising a set of

3. Error handling and fail safety

tools, protocols and routines, well-designed APIs should give

Developers need to create defined errors per method so that a clear

software developers the building blocks they need to create

outcome of each scenario can be made. By creating notification

software. The main aspects of a good API can be broken down into

for cases in which something goes wrong, it will offer a secure and

five categories: easy to integrate, high performance, error handing

error free setting.

and fail safety, security and design.

4. Security
1. Easy to integrate

Security should not be an afterthought; it should be at the heart of

An API can be treated like a foreign language that allows

every transactional process. So, the new language has rules about

communication and connectivity. For that reason, they should be

authentication, authorisation and encryption:

easy to integrate into existing systems. There needs to be clear

- Authentication is the start of this process. Protocols must be in

documentation on use scenarios, use cases and flows to allow


understanding of how it works. Worse than a missing documentation
is wrong and misleading documentation.

place where only authorised users can access the systems.


- A uthorisation handling is the second part: once the system
knows who you are, it will also know what you are allowed to do.
- Encryption and Signatures will prevent data manipulation.

It is also important to understand that even though we are


communicating in the same language, there might be different

5. Design

dialects spoken within it. Therefore, an API should have clients for

Getting the design right is critical, so make sure these five

different technology stacks so it can communicate through all the

requirements are ticked off.

different computer languages. In order to improve progress and test


the language, a sandbox environment needs to be provided.

38

ONLINE PAYMENTS MARKET GUIDE 2015

Christoph Tutsch
Founder and CEO
ONPEX

Simplicity: Keep the design and requirements simple so that any


developer can follow the steps easily.
Standards: Use the same behaviour in every method. Keep the

About the author: Christoph Tutsch, founder

base data structure simple.

and CEO of ONPEX, started the company

Rules: Make sure that you have defined clear rules and follow them

with the vision to revolutionise the payments

consistently.

industry by providing simplicity, transparency

Language: Stick to the defined interface language in order to avoid

and automation. He is responsible for the overall

confusion.

direction of the business and its continuing

Documentation: Explain what the interface is and how it works and

global growth.

communicate any changes.

About ONPEX: ONPEX is an award-winning,


The rewards of getting it right vs. the cost of getting

white-label payment platform supporting

it wrong

omni-channel, local and cross-border card

At ONPEX, we use APIs in three distinct ways:

processing, alternative payment methods

1) We connect to third-party APIs

and payment related solutions. ONPEX helps

2) We provide external APIs to our partners, banks and merchants

customers to accelerate international expansion

3) We provide internal APIs for custom third party plug-ins and

and offers them the flexibility to grow globally.

connectors

For more about ONPEX, contact: connect@


How we use them is indicative of how they should be used in our

onpex.com.

industry. We create our own ones and share them with clients and,
in turn, we connect to other APIs used by third-parties. How we

www.onpex.com

use them has helped our business grow and thrive. We work by
connecting with partners and, in order to do this, we need to ensure
that our systems speak the same language as partner systems. This
ability to communicate without interruption or confusion is vital in
payments. Errors and downtime do not just cost money, they cost
reputation.
* A t ONPEX we are also aware that, sometimes, not everything
goes perfectly or as planned, but we are doing our best and
there is always room for improvement.
APIs have a critical role in facilitating this communication. Getting the
right one for your job is the difference between a seamless system
and a glowing reputation and downtime and a poor reputation.
So choose carefully, choose wisely and know what you want.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

39

Worldline
Leverage Digitisation to Secure and Develop Your Payment Business
Digitisation, the business fertiliser for banks and

Stimulating your security improvement

merchants

We are witnessing an upsurge in fraud attempts in Europe, mainly

In an increasingly digitised world, with ever more performant network

due to the shift from the physical to the online world.

infrastructures, consumers equipped with smart devices are hyper


connected. Today, 28% of the world population is equipped with a

According to the ECB, 60% (Card Fraud Report, February 2014)

smartphone and it is expected to continue growing. Free from time and

of the total value of card fraud come from card-not-present

space constraints, people expect a homogeneous user experience,

payments. Besides, fraud has never stopped evolving along with

enabling them to interact with you at home or on-the-go and

technological advances, constantly challenging all the actors of the

creating new touchpoints. Implementing mobile applications or

ecosystem to secure their activity. It is moving from an organised

wallets improves interaction with your customers and allows you to

fraud to an automated and global fraud with a growing expertise

catch all the digital moments of their lives.

of fraudsters. The issue at stake here for merchants, as for banks,


is to find the right balance between anti-fraud measures and

Besides, the flourishing online business is another way of increasing

user experience. You need an efficient fraud risk management

your revenues. But, reaching a global audience entails dealing with

strategy based on big data intelligence and expertise. After KYC

locals needs in terms of payment means and consumer habits.

(Know Your Customers), we can now talk about KYF (Know Your

Partnering with payment service providers with local knowledge

Fraudsters). Learning engines, included in fraud prevention tools,

and connections is then the best time to market a way to reap the

deliver the most appropriate protection to quickly evolving fraud

benefits of this situation.

patterns. This prevention strategy can be reinforced by additional


solutions like trusted authentication, as strongly recommended

Digitisation also increases the data volumes of the ecosystem.

by regulators such as EBA or card schemes.

They allow you to better understand your customers behaviours


and preferences. As such, you can adapt your communication

Data breaches can also create major damages to your business.

and your loyalty programs to create a personalised customer

By being only threatened in their privacy, consumers lose trust

relationship to enhance customer satisfaction and increase

in the system and are more reluctant to share their personal and

your revenues.

payment data with you. When it actually occurs, your brand is


seriously crippled. The recovery is extremely difficult both in
terms of image and revenue losses. New ways of handling
payment are needed to decrease the spread of sensitive data.
For example, Online Banking ePayments (OBeP) keep the
data within the banks, or Mobile Host Card Emulation (HCE)
payments which only transmit tokens.

40

ONLINE PAYMENTS MARKET GUIDE 2015

Stphanie Nogus
Head of Marketing
Worldline

And energising your attractiveness


Your business is also increasingly challenged by new and agile
competitors. Indeed, they leverage digitisation to offer disruptive

About Stphanie Nogus: Stphanie has

online banking or commerce services. Telco addressing unbanked

been Head of Marketing at Worldline since July

people, worldwide e-merchants offering their own payment means or

2013. Innovative and enthusiastic marketing

completely disruptive business models such as Uber are significant

expert, her main objective is to create,

examples.

communicate and deliver superior value to


Worldline customers. Previous to Worldline,

To fight competition, digitisation allows you to replace your

she was Innovation Manager at Atos and has

traditional services by more attractive ones and offer innovative

a track record of 12 years of brand marketing

services, such as Card Link Offers which leverage the value of

management in the CPG business. Stphanie is

your customer data and reinforce your client relationship.

a Graduate from ESCP Europe.


About Worldline: Worldline [Euronext: WLN]
is the European leader and a major global
player in the payments and transactional
services industry. Worldline contributes to
provide seamless and innovative transactional
experiences to the end users. Worldline
activities are organised around three axes:
Merchant Services & Terminals, Mobility &
e-Transactional Services, Financial Processing
& Software Licensing.
www.worldline.com

www.worldline.com/blog

www.worldline.com/linkedin

Whats next?
We are all moving in a great period, transforming the way people are
living or making business. And innovation is a permanently roaring

www.worldline.com/twitter

www.worldline.com/youtube

engine. Strongly grab this power! And leverage your partners


know-how and innovations to test new services in a quick and
efficient way. At Worldline, digital payments are our DNA and we are
excited to contribute to this adventure by leveraging these changes
to create and provide you with the best of our future.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

41

Emerging Payments Association

Is an Uber of banking likely? New business models created by digital transformation. XS2A PSD2. Transformational
technologies. In this interview, Neira Jones delves into these topics and then some.

Digital transformation: is it disruptive? Which are the


enabling technologies of digital disruption that have
relevance in the industry?
It is undeniable that digital transformation has created new business
models:
In 2015, Uber, the worlds largest taxi company, owns no vehicles
Facebook, the worlds most popular media owner, creates no
content
Alibaba, the most valuable retailer, has no inventory
And Airbnb, the worlds largest accommodation provider, owns no
real estate.

How does Europe compare with the US in terms of


leveraging opportunities of digital age (transformation)?

Many commentators keep wondering who will be the Uber of

None of the top digital companies by market capitalisation

banking and no one provides the answer yet. There is a very good

originate in Europe and most are either located in the US or Asia.

reason for that: banks and financial services in general, are heavily

However, this is only one aspect of the landscape: whilst the US are

regulated. So, rather than calling digital transformation disruptive,

hailing real-time payments as a holy grail to be actively pursued, the

lets call it transformative. Most existing and established players

UK successfully deployed Faster Payments in 2008. Similarly, EMV

have digital transformation initiatives and are placing digital at the

was deployed in Europe decades ago and the US are struggling

core of their strategy to keep pace with consumer behaviours.

to meet their October 2015 deadline. It is however, undeniable

Still, new entrants, have to rely on banks to provide the underlying

that US investment in fintech is still way ahead of Europe, but the

infrastructure and services. Thus, new entrants are forcing existing

situation is changing: mobile payments are gaining wider adoption,

players to accelerate, with no legacy infrastructure, their digital

contactless technology has become mainstream and European

transformation pace and a few digital-only challenger banks are

investments are growing. With European political agendas set on

already established and some are emerging.

digital transformation, the situation can only improve.

The enabling technologies themselves will be driven by consumer

Which of the latest developments in payments are

adoption of different modes of interaction (mobile devices,

banks most likely to adopt?

wearables, IoT etc.) and different channels (websites, TV and other

No bank can afford to ignore that mobile developments and

media , YouTube, social media networks etc.). This in turn will

consumer preference are the main driver. Mobile banking, or

suggest building infrastructures with API connectivity, cloud-based

mobile financial services in general, is already mainstream in some

services (for elasticity and omnichannel), big data (for CRM and risk

markets and this is only set to grow. In markets where cash is still

management), and of course, security to ensure the integrity of the

predominant, we have already seen the success of M-Pesa and this

ecosystem (identity management, authentication technologies such

model will be replicated (e.g. Kenyas Equity Bank).

as biometrics, adaptive fraud monitoring etc.).


Money remittance via mobile seems to be a particular area of
interest (see PayPal and Xoom or MasterCard and Azimo ) and
mobile money transfers via social media are predicted to hit 13

42

ONLINE PAYMENTS MARKET GUIDE 2015

Neira Jones

Many commentators keep wondering


who will be the Uber of banking and
no one provides the answer yet

Advisory Board Member


& Ambassador

Emerging Payments
Association

billion transactions in 2015 . In addition, payments through

About Neira Jones: The author advises

social media (with large players such as American Express and

organisations of all sizes on payments, cyber

others already offering services) has attracted a lot of investment,

risk, information security and digital innovation.

with Google, Facebook, Twitter and Pinterest all attempting

She also chairs the Advisory Board for mobile

to bridge the gap between desktop and mobile purchasing and

innovator Ensygnia and is listed on the City AM

offering Buy buttons.

FinTech Most Influential Power List.

Do you believe that XS2A PSD2 is accelerating the

About Emerging Payments Association:

trend of digital transformation in banking or is it just

The Emerging Payments Association brings

another regulation?

together companies across the emerging

The short answer is yes, I believe PSD2 will accelerate digital

payments spectrum to help shape the future

transformation. But only time will tell as the devil is in the detail

of the payments industry landscape. Our vision

and some areas of PSD2 remain unclear, particularly for access

is to make the UK a global leader in payments

and liability.

innovation by attracting investment capital and


creating a hospitable regulatory environment for

What will be the most 'transformational' technologies


impacting digital payments in the next 5 years?
Over the next 5 years, the following technologies will impact the

innovators, new entrants and disruptors.


www.emergingpaymentsassociation.com

digital payments landscape:


Biometrics;
More mobile, leading perhaps to more wearables. After all, even
in the UK where plastic card usage is very high, 49% of payments
are still conducted using cash. Plenty of scope still for cash
displacement worldwide;
B ehavioural analytics and big data to deliver the transparent
payments experience that consumers expect, whilst controlling
fraud rates;
API-driven services to enrich the consumer experience, wherever
the point of interaction might be, such as the recent announcement
by British Airways opening up their APIs for flight information and
bookings to encourage developers to create value-added travel
applications;
Distributed ledgers (e.g. blockchain). Indeed, many large players
such as BNP Paribas, Deutsche Bank, Citi and Barclays, to name
but a few, are already exploring its possibilities.
Read the first part of this interview here.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

43

Edgar, Dunn & Company (EDC)


The Lego-isation of the Financial Services Industry

Are you an AFOL? An AFOL is an Adult Fan Of Lego. Most

For the last 30 to 40 years, data has been growing and its value

people have heard of Lego. It is a toy for all ages, consisting of

has increased proportionately. However, data is usually shared

colourful interlocking plastic blocks that can be assembled and

within the same organisation by using internal Application

connected in many ways to construct various objects like vehicles,

Program Interfaces (APIs) between applications. These are closed

buildings, and even working robots. Practically anything that can be

APIs. Silos of consumer data in different organisations have

constructed can then be taken apart again, and the pieces used to

limited value, compared to sharing consumer data across different

make other objects. The real beauty of Lego is that bricks sold in

organisations. An open API will allow different organisations to

1975, around the time when I was buying them, can still be fitted

share data across businesses. You may have found yourself

with Lego bricks sold in 2015. The reason for this interoperability

wanting to register on a website using your Facebook or LinkedIn

or compatibility is that each Lego piece is manufactured to an

credentials; this is in fact a great example of an open API called

exacting degree of precision. This is effectively the Lego standard.

an OAuth, an open standard for authorisation which provides

The financial services industry and, in particular, the payments

applications a 'secure delegated access' to resources on behalf

industry, have not had the same view when it comes to standards.

of a resource owner. It specifies a process for resource owners

Interoperability, openness of systems and data in the payments

to authorise third-party access to their resources without sharing

and financial services industries, has been marked by a long

their private credentials. It is one example of a rapidly growing

history of various shifts and changes.

number of open APIs that are becoming a de facto standard and


are already in wide use by companies using Web 2.0 techniques.

Over the last century, the banking sector has controlled their own

Facebook has been using open APIs since 2007.

rules of the game and, for example, LIBOR (London Interbank


Offered Rate), which sets a benchmark rate that the worlds leading

There has been a rapid growth of open APIs since 2010, when

banks charge each other for short-term loans, was based on the

there were only approximately 2,000 while now there are over

traditional, "gentleman's agreement" approach. It serves as a

13,500 available from various organisations, including Apple,

benchmark for interest rates of loans globally and it has never had

Amazon, Microsoft, Google, Visa, MasterCard, Twitter, Facebook

any formal control rules or standards.

and PayPal just to name a few of the leading players in publishing


their APIs and making them available to third parties. The best and

To avoid any recurrence of the recent multi-billion LIBOR and Forex

most widely understood example is Apple. They have made their

scandals, the UKs Financial Conduct Authority is expected to

hardware, i.e. their iPhones and computers, accessible (open) via

announce significant steps in 2015 to ensure adoption of formal

standard APIs by thousands of software developers who create

standards. As with the LIBOR example, the Payment Services

products and services that make Apple products more valuable.

Directive (in its current draft form of the PSD2) is the starting
gun for a dramatic change in the payments industry. Notable
implications are expected for the financial services area and the
payments industry once standardisation of payment processing
takes place and non-bank institutions (the more innovative third
party providers) gain access to data that banks keep for their
customers.

44

ONLINE PAYMENTS MARKET GUIDE 2015

Mark Beresford
Director

Edgar, Dunn & Company


(EDC)
The financial services industry is just starting to wake up to open
APIs. The PSD2, with the help of the European Banking Authority
(EBA), is expected to set the standards for the banking industry

About Mark Beresford: Mark Beresford is a

to allow Payment Initiation Service Providers (PISPs) and Account

Director at Edgar, Dunn & Company (EDC) and

Information Service Providers (AISPs) to gain access to data held

has over 20 years of experience in the payments

within the banks. Crdit Agricole, BBVA, Fidor, Banco Sabadel,

sector. He works on strategic client engagements

ING, BNP Paribas and Garanti are experimenting with open APIs

including major multi-channel retailers and

by either opening up specific segments of consumer data, hosting

payment service providers across the globe.

their own App Stores, or facilitating hackathons for API software

About Edgar, Dunn & Company (EDC): Edgar,

developers to innovate. It is only the tip of the iceberg.

Dunn & Company (EDC) is an independent


In the future, we will see the API-sation of the banks, which will

global financial services and payments

effectively turn a closed shop or closed game into an open game that

consultancy. Founded in 1978, the firm is

can be played on a level playing field with greater standardisation

widely recognised as the world's preeminent

this is what I call Lego-isation of the financial services industry. Like

expert in the payments industry. EDC assists

Lego, there will be a standard set of building blocks that banks and

organisations in developing and implementing

third party providers will use to work together, to offers consumers

strategies and capitalising on the opportunities

greater choice and enhanced next generation products and services.

that change provides within financial services.

By 2025, we will see more from the financial services and payments

www.edgardunn.com

sectors as a result of Lego-isation and open APIs. This is an exciting


time for open banking and the enriched usage of consumer data.
The future winners in Lego-isation are unlikely to be traditional
banks; technology disruptors and challenger banks with an open
mind to open data, innovators that are unhindered with legacy
systems are expected to be the new service providers to the
millennial generation of consumers.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

45

Innopay
PSD2 Access to Account (XS2A): Shaking Up the Value Chain

In this article we would like to share four basic strategic options

These two fundamental choices result in four strategic options for

for banks to act upon PSD2 and provide you some key insights

banks as depicted in the figure below. Note that these options are

we gained from analyzing these strategic options.

not mutually exclusive, as banks could evolve from one scenario


to the other based on the choices made regarding positioning and

PSD2 XS2A is not just another regulation requiring only an

product portfolio.

operational and compliancy approach. It can be considered an


accelerator for technology driven innovation in the payments
industry. It is disrupting the complete banking sector as we know
it today.
New innovative players are acting on this opportunity as well
and threaten to capture revenues long taken for granted by the
banks. These flexible and innovative service providers target
not only the payments value chain, but every single piece of
the universal banking model. Banks on the other hand hold the
asset: the balance and account information. With PSD2 XS2A
they can potentially create leverage on their investments in KYC
and AML and use these as a driver to modernize their business
and operating models while making their infrastructure more agile.

Figure 1: Four generic strategic options for banks resulting from


PSD2 XS2A

From a bank's perspective the question becomes: What are the


strategic options I have? And what are the implications when

Option 1: Mitigate

choosing one of these options?

Minimal action required by banks is in the Mitigate option. The bank


focuses on PSD2 compliance and opens up through APIs to the

From our work in the past two years with the European Banking

most limited extent possible to enable TPPs to execute payment

Association (EBA), Open Transaction Alliance (OTA), various banks

initiation and account information services.

and payment providers on the topic of PSD2 XS2A, we found that


banks face two key strategic choices:

Option 2: Compete

1. What should my positioning be in the payments value chain?

The Compete option is similar to the Mitigate option (i.e. ensure

Banks either focus solely on providing account access and letting

PSD2 compliance). However, banks add an offensive strategy by

other Trusted Third Parties (TTPs) compete for the consumer

also offering innovative (basic) payment initiation and information

or develop new applications on top of their infrastructure and

services.

compete for customer relevance in the Trusted Third Party (TTP)


arena themselves
2. What should the breadth of my transaction services portfolio

The Expand option is also similar to the Mitigate option (i.e. ensure

be? Banks either offer a limited, basic portfolio of payment and

PSD2 compliance). However, banks now focus on developing and

information services (through APIs) or extend to also cater for

exposing services (through APIs) that go beyond basic payment

other types of transactions beyond payments, e.g. advanced

and account information services.

payment and information services, digital identity services and


lending

46

Option 3: Expand

ONLINE PAYMENTS MARKET GUIDE 2015

Mounaim Cortet
Strategy Consultant
Innopay

Option 4: Transform
The Transform option combines all three other options: banks
focus on pursuing a bank as a platform strategy to enable third

Tom Rijks

parties to build applications and services around the financial

Digital Innovation and

institution. This must be based on open APIs. Banks become

Co-creation Lead
Innopay

complete digital players, competing and collaborating for customer


relevance in payment and information services.
Given the PSD2 and given the basic strategic options described
above we can conclude that:

About Mounaim Cortet: Mounaim is strategy

1. For banks PSD2 is about (re)positioning in the value chain.

consultant at Innopay, working on strategic,

Banks and TTPs need each other to make attractive applications

regulatory and innovation challenges in

and services for payers and payees contributing to top and

payments and digital identity.

bottom-line growth. Question is who will provide what.


2. APIs will fuel and accelerate digital transformation. A secure

About Tom Rijks: Tom Rijks is member of

and effective manner to connect TTPs to banks is required.

Innopay's Management Team leading the

In the past decade APIs have become the de facto paradigm

Payments Practice and responsible for Innopays

for sharing data, and have enabled organisations that hold large

Co-creation capability.

amounts of data to become platforms for third party innovation.


3. S tandardisation is required to avoid fragmentation and

About Innopay: Innopay is innovation expert

failure of the system Standardisation is essential to mitigate

in payments, digital identity and e-business.

the risks surrounding XS2A, such as market fragmentation

The company provides consultancy services

of innovative payment services for payers and payees,

that help corporates, collectives, governments

varied security standards, reduced trust and slow(er) market

and their service providers to shape their

growth. In a recently published opinion paper the European

strategy, co-create new service offerings and

Banking Association laid down its vision to avoid such market

transform their operating model.

fragmentation.

www.innopay.com
In summary, PSD2 XS2A is a serious disruptor of the business
as we know it today. While at executive level there are still many
strategic questions in need of an answer, banking leaders are
challenged on adequate and timely decision-making regarding the
banks' future strategic value chain position and product portfolio.
Next to a bank's individual strategy, collaboration with industry
peers, TPPs and other Fintech challengers is key to avoid the allimportant risk of market fragmentation that all two-sided markets
face. The future of banking starts today!

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

47

Payments Consulting Network


Technological Transformation in Digital Payments: What is Next?

With digital disruption set to unanchor as much as USD 27 billion

Managing digital identities

of the forecasted USD 1.3 trillion global payments market in 2015,

The fact that new entrants are totally reliant on existing card

the race is on to create a streamlined payments supply chain.

payment infrastructure puts them at a disadvantage. Traditional

With experts saying we have entered the next phase in electronic

players such as banks should be planning to take advantage of

payment ecosystem development, the challenge is to provide

their coveted position and look to manage and influence the digital

end to end integration of digital payments technology in a highly

footprint of their customers. Owning the core banking relationship

fragmented market, globally.

gives brick-and-mortar banks access to payment flows and an


opportunity to predict and model future behaviour.

2014 in fact marked the first time the volume of digital payment
types surpassed that of paper-based payment methods.

If Gartners recent 2014 Payments Hype cycle is anything to go

Expanding digital payment influence beyond its online presence

by a bank's siloed systems and operations, as well as product

and into the physical world is a key driver in digital payment

development approaches, then they are unfit to respond to new

transformation.

market requirements. However, it can be argued with a full and


open view of a customers visible payment flows: with the right

According to IntegraPay CEO Chris Urry, eliminating the consumers

analysis there is a window to identify new opportunities.

roles in the transaction is key to the prosperity of the digital payment


type. Solutions which rely heavily on the consumer acceptance

According to Gartner, this focus on managing customer digital

and prolonged participation are more likely to present long-term

identities will be key to deciding whether banks have a close

issues. Currently, the huge potential in the digital payments market

digital relationship with their customers or whether they risk

has emerged from social sharing websites trying to easily extract

becoming commodity providers of financial services, with access

payment from users. When you get the mix right, you have success.

to customers controlled and directed by third parties.

The complex evolution towards transformation starts

Integrating social platforms with digital payment

today

Many predictions see integration with social platforms as the key

The market for digital payments technology is highly fragmented,

to monetising digital payment assets. There is no denying that

with both new and established corporations competing to get

the pace of payment innovation is accelerating very fast in order

customers to use their digital payment systems.

to use and integrate digital payments offered to the market in


abundance.

Digital payments present a unique opportunity for experimentation


with joint ventures, as Duane Smith, Lead Associate at Payment

The digital payments discussion is of course ongoing, while

Consulting Network indicates. Experimentation using the assets

ultimately the key issues outlined here are significant now; they

of established payment partners and the free thinking of new

may not be in 6 months time. The explosive speed and constant

uninhibited players is where the magic happens.

entrance of innovation have meant the emergence of new products


which will continue to put pressure on the traditional bank model the first banking player`s advantage is quickly eroding.

48

ONLINE PAYMENTS MARKET GUIDE 2015

Catherine Batch
Associate

Payment Consulting
Network
However, there is no denying of the fact that there is a growing
consumer appetite for faster payments and more often is
constantly expanding. The battle for ownership of the digital

About Catherine Batch: Catherine Batch has

payment experience will only be tamed by regulation - which does

over 10 years' experience in delivering solutions

not seem forthcoming by the banks that, ultimately, benefit from

for the payments industry. As former Asia Pacific

the ever increasing digital payment flow which is taking physical

Director of Product Marketing at Transaction

cash out of the equation.

Network Systems (now MasterCard), Catherine


specialises in the development and practical

While the journey is complex, with many players racing to get the

implementation of payments strategy.

mix right to build customer acceptance, the size of the market is


growing. Backed by a strong customer appetite for streamlined

About Payments Consulting Network:

solutions, the digital payments industry is destined for strong and

The Payments Consulting Network is an

consistent growth. When you get the mix right, you succeed. The

international team of experienced payments

USD 27 billion question is: how do you do it?

industry consultants. Our vision is to create


value for our clients throughout the engagement
- from strategy development to project execution
- by bringing together specialist payments
industry consultants at a price point well below
comparable payments consulting firms.
www.paymentsconsulting.com

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

49

time.lex
PSD2 - Can You Feel the Buzz?

By the time you read this, the plenary session of the European

As the security requirements under PSD2 are not expected to come

Parliament will have debated and voted on the Payment Services

into force until 2018, the EBA already issued its final Guidelines on

Directive 2 (PSD2) on 7th and 8th October, 2015. It is a good time

the security of internet payments (i.a. strong customer authentication),

for a short summary of the main aspects and what PSD2 means for

which have been applicable since 1 August 2015 and which will

banks and for the new entrants on the payment services market,

apply until the PSD2 requirements come into force.

often called the disruptive FinTech startups.


It is likely that (open) APIs will be used to enable access to the

Why PSD2?

customers account. The idea of using APIs is not new and already

PSD2 replaces the existing PSD. It wants to open up the payments

on the agenda in several EU Member States and developed in

industry to non-banks. It also aims at providing clarity about

e-banking projects (e.g. openbankproject.com).

some concepts, exceptions and exemptions that were interpreted


differently by the financial regulators in the EU Member States.

Liability

PSD2 also encourages innovation in mobile payments.

PSD2 also addresses liability issues involved in late or incorrect


payments and SEPA direct debits (SDD), also when multiple PSPs

Open access to customer data and account information

are involved. In principle, the liability is shared between the involved

services

PSPs.

This is, by far, the most controversial topic of PSD2. It essentially


implies a shift in our way of thinking about banking and payment

Reaction of banks and payment processors

services. It is not just about payments, but also about data

Three European payment processors for banks (Equens SE,

stewardship, the value of data and (yes again) Big Data, about

Nets and VocaLink in "White paper on CAPS for PSD2", August

identity management and trust. My bank becomes the secure

2015) have published a proposal on how to approach the X2SA.

steward of my customers payment data. To whom do I allow

They advocate a "Controlled Access to Payments related Services

access and for which purposes? PSD2 mandates banks to give

(CAPS)" and a creation of a pan-European interoperability model

access to their customers accounts to Third Party Payment

that will ultimately benefit all stakeholders, users, merchants,

service providers (TPPs) and to provide account information to

banks, PSPs, TPPs, regulators. This CAPS model aims at allowing

third party apps with its customers explicit consent.

its participants a pan-European access with a single integration,


thus avoiding market fragmentation. Instead of each TPP trying to

Technical standards and API

access accounts individually for each of the 7000 European banks,

The technical mechanism allowing access to the account is

a standardised interface is proposed that makes connectivity

yet to be finalised. Standardisation could help resolve security

simple for TPPs.

concerns and avoid fragmentation of the market. The European


Banking Authority will be mandated under the PSD2 to develop

The CAPS framework would be defined as a set of rules, in a

requirements that will harmonise regulatory practices to ensure

rule book, based on open and objective criteria (keep in mind

secure payment services across the EU. The EBA will submit

competition law issues).

these to the European Commission within 12 months of PSD2


entering into force.

50

ONLINE PAYMENTS MARKET GUIDE 2015

Edwin Jacobs
FinTech lawyer
time.lex

Other research (titled "PSD2 and XS2A Regulation or opportunity?


Report on a survey by Finextra and FIS", May 2015) shows that
financial institutions worldwide consider security, data protection

About Edwin Jacobs: Edwin Jacobs is a

and privacy, reputation risk and liability as the main concerns.

FinTech lawyer at time.lex and lecturer at the


University of Leuven and Antwerp. Specialties:

Timing

business law in the information society,

The debate and voting in plenary session of the European Parliament

negotiation and legal management of ICT-

was scheduled for the 7th and 8th October, 2015. Publication in the

projects, outsourcing, intellectual property

Official Journal is somewhere in Q3, 2015, after which the Member

rights, electronic invoicing and archiving,

States will probably have approximately Q4 / 2017 or the beginning

copyright, trademarks, privacy/data protection,

of 2018 to transpose the directive into their national legal frameworks.

e-business, electronic contracting.

My Banking Dashboard: the good old banking vault

About time.lex: time.lex is a law firm specialised

revisited

in FinTech, information and technology law in the

It would not surprise me if, by that time, several banks already

broadest sense, including privacy protection,

acquire some promising FinTech startup(s) or develop innovative

data and information management, e-business,

payment services themselves, or are cooperating with Third Party

intellectual property, online media and

Payment service providers by offering e.g. a "banking dashboard"

telecommunications.

to their customers in which the customer can plug several third


party services into the platform of his good old trusted bank, who

www.timelex.eu

is the secured steward of the customers data.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

51

THE PAYPERS - INSIGHTS IN PAYMENTS


The Paypers (www.thepaypers.com) is the leading independent source of news and analyses for professionals in the
global payment industry. Our products are created by payment professionals and cover all significant developments
in financial transactions, with a special focus on online payments, online banking, mobile payments, e-invoicing,
e-identity and SEPA. Our portfolio includes headlines, newsletters, company profiles, publications, events, jobs,
buyers guides and advertising via multiple media channels and social networks.

Insights in payments this is what the Paypers is all about. On the one hand readers
get deep insight into the payment industry and on the other hand for companies The Paypers
offers a great advertising portfolio. For example, with our DIMOCO hub we handle mobile
payment transactions in the Central- and Eastern European countries. That means that we
are a niche player and the Paypers is an ideal partner for us
Margit Anglmaier - Vice President Corporate Communications - DIMOCO
News and analysis
The Paypers offers a wide range of news and analysis products:

Real-time online news on our website, with breaking news on Twitter, Linkedin, Facebook and G+
Free daily headlines, covering the fast-paced developments in the global payment industry
News | Paypers, weekly overview of this weeks most important news into your mailbox.
RSS feeds for all news articles, selectable by category
Online database with a searchable news archive dating back 7 years.
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Annual payment topic guides with a global market overview of companies, services and products.
The Paypers readership

JUMPING ON
THE PAYMENTS
INNOVATION
BANDWAGON

ACI Worldwide
How to Eat the Elephant of Payments Innovation

If the best way to tackle a challenge is one bite at a time, why are

So how can you be the first bank on the block to offer enhanced

so many merchants and banks sitting down to an all-you-can-eat

mobile banking features and loyalty offers that sway Millennials your

buffet and doing so alone?

way? How can you charge out of the gate with a cool couponing
app or relevant loyalty reward? How can you enter a new market

A quick survey of the payments landscape reveals that competition

(geography) to successfully grow your business? How might you be

and customer demand are pressuring commerce players to come

the next Dominos to enable customers to pre-order with next to no

to the table with innovative ways to purchase and pay for goods

effort? You may not have all the resources you need in house to buy

and services. Retailers and financial institutions cant afford a wait

or build the solution. Or, you may have the resources but lack the

and see approach - or they will simply have waited to see their

experience or ability to move fast. In either scenario, leveraging the

customers choosing other brands and banks that are able to offer

resources of one or more vendor partners may be the best choice.

the convenience and coolness they crave for.

To build or to buy? That is the question


If you need to eat the elephant of payments innovation, to transform

Answering it is not a sideline activity. While you are determining your

your purchase and payment experience, the best way to do it is not

game plan, you want to assess all your options, including how a

one bite at a time. It is with a friend or two or three.

partner can help. Think about the vendors with whom you currently
partner. Ask yourself:

Partners can accelerate your process


Dominos made a decision a while ago to change the way people

Who has the mobile capabilities I need?

order pizza. Technology had made available the ability to place an

Who can point me in the right direction?

order online and track the progress of that order in real time. Today,

Who can give me case studies of peers using secure, enhanced

Dominos continues to push the boundary with a robust mobile


app that takes payment out of the ordering process and puts the

Who has customers doing what I want to do?

emphasis on the purchase experience. Now you can tap your

W ho can provide intelligence and insight to neighbouring or

smartwatch during halftime, order and pay for your pizza and be
alerted when it is ready and eat. Or even text an emoji to them to
place an order!
Gaining an edge in todays crowded marketplace comes in part
by tapping into consumer demand for new, convenient payment
methods. They know what you do that Millennials do not write
cheques, that when they dine out with friends and it is time to pay
the tab, they would welcome the opportunity to pay their portion via
their smartphones, without ever having to visit an ATM or pull a card
out of their wallet.

54

payment options?

ONLINE PAYMENTS MARKET GUIDE 2015

foreign markets?

Michael Grillo
Director, Marketing Line
Leader

ACI Worldwide
Then, have a conversation with those vendors. See who can help
you and how. As you are doing that, you should add one more critical
question to your list what are your partners or potential partners

About Michael Grillo: Michael Grillo is Director,

long-term goals and do they align with yours? It is important to

Marketing Line Leader for global electronic

understand your partners roadmap and strategy, to ensure it aligns

payments and banking leader ACI Worldwide.

with your best interests and those of your customers.

He has extensive experience in marketing


merchant payments and fraud management

Do not realize too late that your partner cannot offer the innovation

solutions.

you need to bring to market. Conversely, do not be afraid to talk


to others in the industry that you are not currently working with. As

About ACI Worldwide: ACI Worldwide, the

you are allocating next years budget and deciding what initiatives

Universal Payments company, powers and

will best enable you to deliver the experience your customers

protects electronic payments and banking for

want, look to the current and potential partner ecosystem and see

more than 5,600 financial institutions, retailers,

how you can leverage what they are doing to be more competitive,

billers and processors around the world. ACI

right now.

software processes USD 13 trillion each day in


payments and securities transactions for more

So go ahead. Eat the elephant. Just do not eat it alone.

than 300 leading global retailers, and 18 of the


top 20 banks worldwide.
www.aciworldwide.com

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

55

FleishmanHillard Brussels
A EU Digital Single Market: Can Europe Revolutionise Payments?

In a recent publication, The Economist cited a Silicon Valley based

payment services providers, as the success of new payment

entrepreneur who compared the 21st century Silicon Valley to

technologies is very much determined by the network effects of

Florence during the European Renaissance. Rightly so, Silicon

acceptance amongst merchants.

Valley has not only become the symbol, but the unchallenged

Over the past decade, EU policy makers have made very

capital of one of the most profound periods of innovation the

commendable efforts to stimulate an EU wide payment services

world has ever seen. In contrast, Europe boasts pockets of

market which interlinks financial services integration with

innovation in admirable but far more modest proportions. As their

technology. From a financial perspective, we have argued [ in a

names suggests, Londons Silicon Roundabout or Berlins Silicon

blogpost ] last year that the successful implementation of

Allee, are not more than smaller spin-offs that are modelled after

the Single Euro Payments Area (SEPA) system is one of the

the structures set up by the renaissance men and women of the

most successful spin-offs of the Euro project. Through SEPA,

Valley. Despite recent encouraging news over rising amounts

the EU harmonised the rules on direct debit transactions, credit

of capital flowing to promising European startups, and more

transfer and card Euro denominated payments, and this system

hyped success stories, this all remains anecdotal. Fueled by an

can become key in enabling new technologies to flourish across

inexhaustible Schumpeterian drive to destroy the 20th centurys

the single market for example direct debit transactions through

economic paradigms, it is clear that the economy is being

mobile technology. Likewise, the recently agreed revision of the

transformed from the Bay Area.

EUs Payment Services Directive sets out to break open the


markets for payments. Perhaps most importantly for the market

This glaring American supremacy particularly in consumer

for payments going forward, these new rules force established

technology has not gone unnoticed in Brussels EU bubble

players to give new technology providers access to payments

either. Taking on its new credo of jobs & growth, the European

infrastructure.

Commission is on a mission to create the right kind of circumstances


to see the next PayPal emerging in Paris, Warsaw or Madrid in a

Andrus Ansip and Gnther Oettinger, the Estonian-German tandem

strategy christened the European Digital Single Market.

leading on the digital single market project, should take note of how

Much has been written about the impact of Europes culture of

these reforms will transform the market for payments in Europe.

risk aversion versus the American impatience, reminiscing the

Though all-in-all positive, lessons can be learned too. For example,

frontier mentality of the early settlers. Cultural preferences are

new security requirements for payment transactions are critisised

hard to change though; hence European efforts aim to break

for being insufficiently technology neutral, and risk becoming

down the main barriers regulatory barriers that have prevented

obsolete even before they are enforced.

European businesses to lead in innovation. This response is a

Because of these large leaps forward over the past years,

classic European attempt to break down cross-border barriers

inefficiencies in the payments system is no longer seen as a

and coincides with Commissioner Vestagers push to break the

major barrier to the development of a Digital Single Market

perceived misuse of market dominance by some of the American

in Europe. Instead, the main focus is on other barriers such as

tech champions through competition rules.

complex VAT and contract rules, geo-blocking and outdated

This pitchfork of policy-development and rule enforcement

copyright law on which the European Commission plans to

will be the space to watch in the years to come.

propose legislative action shortly. Throughout 2016, the treats


and opportunities of the data and network economies will

The European Commissions reasoning is as simple and it is

likely become central in policy discussions. The fact there is no

compelling: economies of scale result in the network effects

clear-cut view on the nature of a platform in EU policy circles yet

that have made the new generation of innovators so successful.

illustrates the challenge ahead.

This logic also applies to FinTech companies and in particular to

56

ONLINE PAYMENTS MARKET GUIDE 2015

Martin Bresson
Senior Policy Advisor
FleishmanHillard
Brussels
Timeline of policy initiatives

CURRENTLY NEGOTIATED REGULATION

The Network Information Security


directive (expected end 2015)

Q4

The General Data Protection Regulation


(expected end 2015)

Q4

Marijn Swinters

2015

Senior Account Executive


FleishmanHillard
Brussels

in 2016

Q1 2016

1st half of
2016

before end 2015

PROPOSAL TO REVIEW EXISTING REGULATION

EU rules for online purchases of digital


content
Legislative proposal for a copyright
reform
Comprehensive assessment of
the role of online platforms and of
intermediaries

Measures to improve price


transparency and enhance regulatory
oversight of parcel delivery
Legislative proposal to end unjustified
geo-blocking

Review of the ePrivacy Directive (Q1


2016 - right after the adoption of the
GDPR)

Reducing the administrative burden


arising from different VAT regimes (In
2016 - no specification)
Ambitious overhaul of the telecoms
regulatory framework (In 2016 - no
specification)
Commission will present a new
e-Government Action Plan 2016-2020
(In 2016 - no specification)

2016

About Martin Bresson: Martin Bresson is Senior


Policy Advisor to FleishmanHillard Brussels.
Martin specialises in policy and regulatory issues
impacting the financial sector.
About Marijn Swinters: Marijn Swinters
advises financial and technology sector
companies on EU policy and regulation. He
specialises in payments services and banking.
About FleishmanHillard: FleishmanHillard
(FH), a global leading public relations and

This means that the EUs work in the payments market is not

communication company, operates throughout

finished. Significantly, the question of data, its aggregation,

the Americas, Europe, Asia, Australia and

its protection and it being a source of both businesses and

South Africa. In Brussels, FH focusses on EU

costumer solutions requires thorough political guidance to

government relations. It provides strategic

determine how the EU copes with the data revolution. Also,

consulting services to companies affected by

the platform economy brings about a new set of question

EU legislation across different sectors, including

around payment services as built-in ancillary services and

leading financial services and technology

even whether some payment services can be considered to be

companies.

platforms and therefore regulated as such.

www.fleishmanhillard.eu
Innovative payments providers, be it startups or innovative
incumbents, can help policy-makers create an environment where
the EUs FinTech sector can flourish. Although the European
Commission has initiated this ambitious project, it will be the EUs
Member States and the European Parliament that will help steer
the project forward. Much needs to be done for Europe to reclaim
its position as a leading center for innovation, but the payments
industry is well positioned to lead the change.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

57

Visa Europe Collab

The demand for new payment methods from consumers is a key driver for innovation

What is making the payments industry so attractive for

What drives innovation and creativity in this industry?

innovative ideas and entrepreneurial spirit right now?

The demand for new payment methods from consumers is a key

Technological advances, driven chiefly by advances in mobile

driver for innovation. Consumers want simpler ways to pay and a

computing, along with sociological change, are resetting consumer

removal of friction. They also want a variety of options to choose

expectations when it comes to payments. This, combined with

from, which can be seen in the increasing appetite for methods

significant investment in the fintech sector, is creating real positive

such as contactless and Apple Pay. Merchants are also looking at

momentum.

new ways to satisfy their customers and differentiate themselves,


which is helping drive change.

In the cities across Europe, where Visa Europe Collab has a presence
London, Tel Aviv, Berlin there is an ecosystem of investors,

What are some recent examples of innovation that you

accelerators and innovation hubs like ours who are providing the

have seen come through the Visa Europe Collab doors?

support to help entrepreneurs develop their ideas. It is a time of

Since we set up Visa Europe Collab in the spring of 2015, we have

significant opportunity for new entrants and ultimately the consumer

been lucky enough to meet hundreds of innovative companies and

will benefit.

entrepreneurs and explore scores of ideas.

What impact does the proliferation of startups


and entrepreneurs have on the fintech sectors
development?
The startup scene has a huge significance in both impact and
attitudes to innovation. Visa Europe Collab was set up to find the
most promising ideas within the wider payments ecosystem and to
help their creators turn them into commercial reality.
We believe that collaboration is key. By combining the expertise,
scale and network of partners of established players, like Visa,
with fresh ideas from entrepreneurs, we can transform fintech to
the benefit of the consumer.

By combining the scale and network of


partners of established players, with fresh ideas
from entrepreneurs, we can transform fintech to
the benefit of the consumer

58

ONLINE PAYMENTS MARKET GUIDE 2015

Its a time for significant opportunity


for new entrants and ultimately the
consumer will benefit

Niamh de Niese
Director of Innovation
Delivery

Visa Europe Collab

A recent example of one of the ideas we took through to proof of


concept stage is a partnership with UK designer Henry Holland.

About Niamh de Niese: Niamh de Niese is

In a worlds first, we created a shoppable catwalk - combining

Director of Innovation Delivery at international

fashion and frictionless payments at Henrys show at London

innovation hub Visa Europe Collab. Niamh is

Fashion Week. Over a 100-day period, we worked with Henry

accountable for the end-to-end delivery of Visa

Holland, and partners including NFC Ring and Flomio, to design

Europe Collabs innovation pipeline.

a range of rings featuring NFC technology that would allow VIP


guests to make a purchase directly from Henrys collection as it

About Visa Europe Collab: Operating out of

was being modelled on the catwalk.

London, Tel Aviv and Berlin, Visa Europe Collab


brings together an international community of

The pieces from the House of Holland collection incorporated a

partners to identify payments ideas and help

payment receiver tag linked via Bluetooth Smart technology to a

develop them into commercial reality. Then,

virtualised terminal and the power of Visas payment network. This

through Visa Europe, we will help them roll out

technology offered the VIPs a unique opportunity to interact with

their services to our network of banks, retailers

the show in a way that has never been seen before.

and consumers across Europe.

We are now exploring how these learnings can be extrapolated

www.visaeuropecollab.com

into the broader retail payment experience.

What predictions do you have for the fintech industry


for a year from now?
This industry moves so quickly that it is difficult to say with any
real certainty. At Visa Europe Collab, we work on projects that are
evolutionary and revolutionary in scope from evolving existing
payments methods to exploring broader technological and social
shifts, from biometrics to distributed ledger technology.
It is a hugely exciting time for the sector and we will see significant
change over the next few years. What we also know is that the
products and paradigms that will succeed will be those grounded
in solving real problems and rooted in delivering consumer value.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

59

World Economic Forum


Five Predictions For The Future Of Payments

Over the past five years the payments sector has undergone some

These alternatives will allow customers to link directly to their

exciting changes that are reshaping financial services. On one

bank accounts; they will also provide the built-in offer and loyalty

side, innovative mobile payment solutions and new m-commerce

programmes that merchants need to reach target customers.

apps are transforming the customer payment experience; on the

At the same time, new point-of-sale lending solutions will allow

back-end, new payment rails and the rise of digital currencies are

merchants to offer lower cost loans to customers buying on credit,

rewiring the payments landscape.

replacing high-interest credit cards.

Over the past year and a half, the World Economic Forum and

If these innovations appeal to customers, they will erode credit

Deloitte have co-led a research project involving over 100 experts

card volumes, directly threatening business models that today are

and industry executives. The aim has been to better understand

built on account balances and loyalty programmes. That would

the disruptive potential of emerging innovations, including those

create longer term implications for retail banks, for whom the card

related to payments. Based on that research, here are five bold

business is a key part of their customer relationships.

predictions for the future of payments:

3. No more excessive transaction fees


1. A winner takes it all environment

Todays mobile payment solutions offer customers a secure,

M-commerce apps like Uber and Amazon promise their users

virtual way to pay for things. Such systems increasingly call into

a frictionless experience, and part of fulfilling that promise

question the notion that these transactions are at higher risk of

increasingly involves pushing the act of payment to the back of

fraud and should bear higher merchant fees to cover that risk.

the customers mind. While these apps allow customers to change

At the same time, many popular mobile commerce apps like

payment methods on the fly, most use their default card for each

Uber, and mobile point-of-sale solutions like Square, are acting

transaction.

as mega merchants, aggregating transactions from participating


merchants and providing volume-based discounts on transaction

By solidifying their position as a customers default choice, card

fees. Combined, these two pressures will likely drive down revenue

issuers will enjoy higher transaction volume and gain a more

from interchange fees.

comprehensive view of customer spending patterns. When


combined with investments in analytics and innovative loyalty

4. Digital currencies will not replace traditional ones

programmes, this data can be used to further increase customer

yet

stickiness.

Digital currencies, most notably Bitcoin, could be great for


businesses: they have a low transaction fee, the funds settle fast

2. The death of the credit card?

sometimes even within minutes and they offer a single global

The past 50 years have seen the progressive displacement of

standard. But they will only take off if customers also see value in

cash payments by credit cards, and analyses of mobile payment

using them, and so far that hasnt been the case. There are a few

usage patterns suggest this will continue over the short term, as

reasons for that.

small ticket-size transactions are increasingly paid for with credit.

60

Over the longer term, however, we could see a reversal of this

First, customers need an economic incentive to use these digital

trend, as the mobile payments sector starts to offer an increasing

currencies, but up until now the cost saving has mainly been for

number of innovative alternatives to credit cards.

merchants.

ONLINE PAYMENTS MARKET GUIDE 2015

R. Jesse McWaters
Project Lead, Disruptive
Innovation in Financial
Services

World Economic Forum


Second, the value of digital currencies can be volatile, which
exposes customers to exchange rate risks; as a result, many
people hesitate to keep their money in those digital currencies.

Hwan Kim

Finally, a range of issues, including negative press , point-of-

Manager

Monitor Deloitte

sale and wallet systems with unwieldy user experiences, and


a relatively small number of digital currency gateways make a
customers first foray into the realm of digital currencies a high
hurdle to clear. All of these challenges are clearly solvable, but
they do present a significant challenge to the adoption of digital
currencies by retail customers, at least in the short term.

About R. Jesse McWaters: The author


leads the World Economic Forums disruptive

5. Decentralised digital currency systems will modernise

innovation work on financial services which

financial services

seeks to understand how new technologies

Most digital currencies have decentralised systems that use

and innovative new entrants are changing the

cryptographic protocols and consensus-based validation to move

competitive dynamics of the industry.

a token of value (the digital currency) within a distributed ledger.


What is really interesting about these systems is that they could

About Hwan Kim: The author is a Manager

be used for so much more that simple retail payments.

at Monitor Deloitte with expertise in helping


various FSI clients develop growth-oriented

These systems can be used to create an immutable record of

strategies, including corporate, channel,

transactions that does not rely on a trusted third-party and can

product and customer strategies. Hwan was

offer both improved efficiency and traceability in the clearing

the Lead Consultant on the World Economic

and settling of transactions. That could have implications for

Forums research on Disruptive Innovation in

international remittances, treasury management and the clearing

Financial Services.

and settlement of securities. Organisations from Visa and

SWIFT to NASDAQ and UBS have already begun exploring

About World Economic Forum: The World

these potential applications, which could be a first step in the

Economic Forum is an international institution

modernisation of how financial institutions interact with one

committed to improving the state of the world

another.

through public-private cooperation in the spirit


of global citizenship. It engages with business,
political, academic and other leaders of society
to shape global, regional and industry agendas.
www.weforum.org

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

61

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PAYMENT
METHODS
DIVERSITY SPEARHEADING
GROWTH

Ecommerce Europe
Global Payment Methods: Towards a True Seamless Shopping Experience

An efficient and well-functioning payment landscape that creates a

Conversion is, among other factors, strongly influenced by the

cross-border level playing field is key to a flourishing ecommerce

usability of a payment method, or the familiarity of the user

industry in Europe. The e-payments sector is subjected to rapid

experience and the technical reliability of the payment method.

developments and the future ecommerce market is fully consumer-

Finally, Fair Cost affects the profitability of each transaction. The

oriented. It demands a seamless shopping experience for

cost of payments, including cost incurred from fraudulent payments

consumers to do online purchases wherever and whenever they

and exception handling, is among the retailers most prominent

want. A substantial part of the double-digit growth of the sector

concerns, but only after both reach and conversion are satisfied.

comes from innovation in payments, and especially innovation in


alternative and mobile payments. Mobile devices interoperability

E-banking: the importance of online banking

should be mainstreamed in all e-payments, but this should, in

e-payment for cross-border commerce in Europe

essence, be left to the market. The ecommerce industry has proven

Globally, it is very difficult to identify the perfect payment blend.

to be keen on innovating, which should be stimulated by regulation

Different cultures require different payment preferences. But,

that facilitates and does not restrict.

for sure, the merchant should have the option to offer the latest
innovation. And, if payment institutions dont catch up with

Alternative payments: offer the right payment mix to

market developments, they will be hauled over by developments

drive conversion

outside the existing payments infrastructure. Are we still speaking

Mobile payments will most likely become the standard option

of alternative payments or new payment systems? See, for

for consumers in the years to come. A fragmented market of

example, the development with real time or instant payment.

competing technologies supporting mobile payments is hampering

This is perceived as the new cash. In the ecommerce era, users

the potential for consumers to buy wherever, whenever. In order

expect such solutions to be available and deliver the same

for Europe to remain competitive in the payments market, and the

payment experience as cash, i.e. not only provide immediate

ecommerce market in general, it is of vital importance that any

confirmation that funds are available on the payers account, but

(alternative) payment solution be available on all mobile devices.

also immediate availability of such funds to the payee. Another


interesting development, from a European perspective, to have a

Alternative payments are factually all payment solutions next to

closer look at is the online banking e-payment solution.

card payments. There are plenty of alternative payment solutions


which are crucial for the turnover by merchants as the right payment

Online banking e-payment (OBeP) solutions can significantly

mix will drive conversion. For online merchants, successful and

reduce costs for consumers and retailers associated with

interoperable e-payment innovations pay attention to and are

mitigating fraud and authentication of the credit transaction,

judged on three basic principles: Reach, Conversion and Fair Cost.

thereby increasing reach and conversion for retailers at a fair cost.


OBeP redirection solutions potentially unlock e-payments for all

Reach is defined as the number of potential buyers that have

European countries through the consumers familiar and trusted

access to the mix of payment methods. The total reach of a retailers

online banking portal in combination with the SEPA payment

payment mix determines whether an interested visitor can become

instruments. Online merchants urge the European payments

a potential buyer. Conversion defines the chance of whether an

industry to develop a suitable pan-European OBeP solution for

interested visitor will become an actual customer: it determines

the mobile market as well. Ecommerce Europe advocates a pan-

business volume and revenue.

European OBeP solution, such as the MyBank initiative developed


by EBA Clearing.

64

ONLINE PAYMENTS MARKET GUIDE 2015

Paul Alfing
Chairman e-Payments
Committee

Ecommerce Europe
Digital wallets: how digital wallets change the landscape
It is safe to conclude that, with alternative payments, there are
plenty of developments on a global scale that work towards a

About Paul Alfing: Paul Alfing, MA, is chairman

seamless shopping experience with one-click-buy. It is the only

of the e-Payments committee of Ecommerce

solution that can ensure maximum reach and conversion at a fair

Europe, the Brussels based association

cost for merchants and consumers, and which consequently fits

representing 25.000+ companies selling

consumer demands for the years to come. Furthermore, one-click-

products and/or services online to consumers

buy is the only solution that can adequately facilitate technological

in Europe and for Ecommerce Europe technical

developments in mobile payments, business-to-consumer

expert in the Euro Retail Payments Board.

payments, peer-to-peer payments and brick-and-mortar store

About Ecommerce Europe: Ecommerce

payments.

Europe is the association representing around


Whereas the market should facilitate the means for one-click-buy

25,000 companies selling products and/

through mobile payment solutions, e-ID solutions, wallets and

or services online to consumers in Europe.

the institutional framework for realising this should be guaranteed

Ecommerce Europe offers to be a one-stop-

by governments. Legislative solutions, such as the PSD2 and

shop for the European Institutions for all

the e-ID security framework, should foster a safe and innovative

e-commerce related issues. Ecommerce

cross-border payments infrastructure allowing merchants to move

Europe can be consulted when it comes to

towards offering one-click-buy options.

market research and data, policy questions and


in-depth country knowledge.

In the end, it is up to the consumer to decide which options best


meet their demands and which will become the most trusted one-

www.ecommerce-europe.eu

click-buy solutions. Wallet solutions are a viable candidate to bridge


the gap between online, offline and mobile payment contexts and
to improve the cross-border usability of cards. They can be used
both on the internet (online) as well as in brick and mortar stores.
Different funding sources provide consumers with the flexibility
they need and a uniform interface on the merchant side enables
merchants to rationalise payment options to offer the right
payments mix on a global scale.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

65

PPRO Group
When in Rome, Pay As The Romans Pay! - Payment Preferences in Different
Countries
Different countries, different cultures, different currencies. Why do

True, the credit card principle existed much earlier, but this period

US internet users prefer to pay by credit card, yet in Germany people

is considered by experts to be the one that paved the way for the

avoid plastic like the plague? We have been looking for clues to

credit card as we know it today. Since these pioneering days, credit

explain this situation by taking a look at payment cultures.

cards have enjoyed great popularity in their country of origin. If the


UK is regarded as the credit card heartland of Europe, then the fact

The fact is that, when it comes to paying online, credit cards have

that the UK and the US share a common language is on its own a

quickly become the method of choice. Throughout the world, no

plus factor for the credit card. The cultural influence of the US on

other payment method is so readily accepted when shopping

Europe is still strong today and strongest in the UK.

online. But, anyone who runs an online shop knows that it is not
enough just to offer credit card payments. In Europe, especially, the

Political influence on payment systems

credit card is nowhere near as popular a method of paying online as

After the UK, within Europe, credit cards are most popular in Spain

it is in the US. In 2013, 41% of transactions in Europe were made

and France and, to a lesser extent, Italy. Italy is a good example

without using plastic (Worldpay report 2013).

of the influence of politics on the payment methods and payment


habits of its people. Traditionally, Italians love to pay in cash.

Online retailers should be aware of the many different national online

But politics promoted the use of credit cards with some ground-

payment preferences, which are not always as one might expect.

breaking decisions. To combat crime and money laundering, cash

In the Netherlands, for example, two out of every three online

transactions of over EUR 1,000 have been made illegal, leading to a

payments are made using the iDEAL payment system. Germans still

sharp increase in the number of credit cards in circulation (Business

prefer paying with cash-on-delivery and direct debits, while Finns

Week). This increase in circulation has boosted the acceptance of

favour direct transfers via their online banking websites. Yet, one

credit cards which, in turn, is leading to increased demand.

key question remains unanswered. Why do these huge differences


exist when it comes to choosing how to pay online?

Economic reasons
Of course, economic reasons also play a large part in deciding

How do you like your coffee?

which payment systems become established in different countries.

There is no single reason or explanation for national payment

The banks have a leading role here. Take Spain, for example,

preferences throughout the world. The subject of online payments

where the banks offer credit cards primarily as account add-ons. If

is best seen as a development that is at the mercy of cultural,

a user has more than one account, it follows that they have more

political and economic influences in every country. Just as with

than one credit card. Therefore, the circulation of credit cards in

coffee, neighbouring countries have different preferences when

Spain is very wide and the proportion of credit card payments is

it comes to online payment systems. Germans favour their bitter

high compared to other payment methods. However, only 13% of

filter coffee, whereas Italians prefer a strong espresso.

payments in Spain are made via debit cards, as these are much
less common (Worldpay report 2013).

Lets begin our look at the differences in payment systems in the


US, the ultimate credit card country. The credit card achieved its
breakthrough in the US at the beginning of the Fifties.

66

ONLINE PAYMENTS MARKET GUIDE 2015

Ralf Ohlhausen
Chief Strategy Officer
PPRO

The Netherlands is another example of how great the influence of


banks is. Here, the iDEAL system is very popular for online payments.
This payment method allows customers to pay by direct transfer

About Ralf Ohlhausen: The author is Chief

from their own bank. The reason why this system has become so

Strategy Officer with the PPRO Group and

firmly established in the Netherlands since 2005 is because the

has over 25 years experience in ecommerce,

majority of local banks there support it and promote it well.

financial services, mobile telecommunications


and IT. At the PPRO Group, Ralf is responsible

Technological reasons

for increasing the companys global reach,

One modern factor that influences payment preferences in individual

focusing in particular on the addition of new

countries is new technology. This can be seen in Kenya, for example,

payment options to the companys portfolio.

where the mobile payment system M-Pesa has a very high market
share. The technology associated with this system has helped to

About PPRO: The PPRO Group, The Payment

provide secure financial services to a largely unbanked population.

Professionals, offers PSPs and financial

This problem does not exist in the US and Europe but, nevertheless,

institutions a wide range of international

modern technology still influences payment habits, if nothing else,

payment schemes enabling the processing

because it is easy to use. Therefore, in many countries it is the

of electronic payments globally through one

fast payment methods such as direct transfer or e-wallets that are

contract and one simple integration. PPRO

gaining most ground.

products and services span the entire payments


value chain from acquiring through processing

For years, many experts have seen a lot of potential in mobile

and issuing.

payment systems because smartphones have become constant


companions for a lot of people. All you have to do is integrate a

www.ppro.com

payment function into the mobile phone and you have everything
you need to make a payment. Nevertheless, paying by smartphone
has not yet become widespread. Potentially, Apple Pay could be the
technology that opens up mobile payments to the masses, globally.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

67

RatePAY
Online Payment in Germany: Security and Tradition
With the right payment mix, customer reach can be

A study conducted in December 2014 shows that SEPA direct

improved by 50% in Germany

debit combines a high customer acceptance rate with minimal

Germans are conservative and this is reflected in their traditional

costs to merchants (Source: E-Commerce-Leitfaden: The Future

attitude towards online payment: open invoice and direct debit

of Payment, 2014). However, in addition to chargebacks, direct

(SEPA-ELV) are the most popular methods of German online retail

debit also contains procedural obstacles such as pre-notification

payment. By ignoring this aspect, merchants will suffer abandoned

and mandate administration. Consequently, many merchants no

purchases. What should online merchants bear in mind in order to

longer have this payment method on offer.

be successful in Germany?
A further preferred payment method, which is increasingly popular
It is a fact that credit card payments are the worlds top cashless

in Germany, is instalment payments or convenient part payments.

method. However, this does not apply worldwide and certainly not in

Aggressive promotion of flexible financing by major electronics

Germany, where only 35.7% (Source: DIMOCO: Direct Carrier Billing

retailers has greatly influenced this trend and the demand for

in Germany, 2014) own a credit card and only 10% (Source: EHI Retail

instalment payments has risen in ecommerce. Customers are not

Institute, EHI Research study: Online-Payment 2015 Distribution

necessarily opting for instalment payments out of financial need,

of Payment Systems) use it. Germans love security and tradition,

but rather because it offers them greater flexibility.

which also applies for payments. Online shopping is no exception,


with Germans relying on familiar and trusted types of payment.

Abandoning risk if desired payment type is not offered

The challenge for merchants and payment service providers is to

Germans are creatures of habit. When making purchases online,

incorporate common offline payment methods into the world of

approximately 24% abandon their purchase if their trusted

ecommerce.

payment type is not offered. A further 27% only continue with


their purchase if there is a satisfactory alternative (Source: ECC

Open invoice is definitely most popular

Cologne/Aschaffenburg University of Applied Sciences: Payment in

In Germany, open invoice is, by far, the most popular payment

e-commerce, 2014). Conversely, it has been proven that merchants

type. How can this popularity be explained? Germans grew up

who offer open invoice suffer 79% abandoned payments at the

with catalogues from companies, such as Otto and Quelle. Many

check-out. If direct debits are included, the rate is still high, at

remember the great piles on their parents and grandparents

40% (Source: ibi Research: Payment as a success factor: the

coffee tables. Large mail order companies enjoyed success

influence of payment processes on your sales, 2nd edition 2013).

with the slogan: try before you buy. Germans became used to

Where instalment payments are offered, merchants see shopping

merchants bearing the cost in advance. Today, around 80% of

bag values rise by 11% and sales by 7% (Source: E-Commerce-

German online shoppers state that open invoice is their preferred

Leitfaden: Instalment payment in e-commerce, 2014).

payment method (Source: ibi Research: Payment as a success


factor: the influence of payment processes on your sales, 2nd
edition, 2013). It is particularly popular among women. The second
most popular payment method is direct debit (DD). It was popular
in Germany even before the SEPA changeover in 2014, but has
since received a significant boost.

68

ONLINE PAYMENTS MARKET GUIDE 2015

Miriam Wohlfarth
Co-founder,
Managing Director
RatePAY
No risk for buyers or merchants
So, Germans prefer familiar payment methods without any
advance costs. This means merchants have to incur these costs

About Miriam Wohlfarth: Miriam Wohlfarth,

and therefore bear the full risk. Previously, it was difficult for

Managing Director and co-founder of RatePAY,

many online shops to offer the most popular payment options in

has been working in online payments for over

Germany. Payment processing, risk management and dunning

15 years. Prior to RatePAY, she was country

processes are all time consuming and require a certain degree

manager in Germany at Ogone (Ingenico

of knowledge and, as a result, default payments are almost

Payment Services) and the Royal Bank of

inevitable in order to avoid deficits in payments. The average

Scotland (RBS) Bibit, Germany.

cost for every payment default is about EUR 66 (Source: ECC


Cologne/Aschaffenburg University of Applied Sciences: Payment

About RatePAY: RatePAY offers local payment

in e-commerce, 2014).

methods, such as open invoice, instalment


payments with real-time online acceptance and

In recent years, new service providers have entered the market with

direct debit with a 100% payment guarantee for

solutions that assume total responsibility for processing unsecured

online shops selling to Germany, Austria and

payment types. These include buyer risk identification, invoicing,

Switzerland. In addition to factoring, RatePAY

dunning processes, bookkeeping and customer communications.

offers also individual modular solutions.

This saves the merchant time, allowing him to concentrate on his

RatePAY is a member of the Otto Group.

core business: sales. The merchants great demand for this service:
according to a recent study, 41% of merchants are planning to

www.ratepay.com

outsource secure open invoice processes to a professional service


provider soon and 20% intend to offer secure direct debit services
(Source: E-Commerce-Leitfaden: The Future of Payment, 2014).

RatePAY offers a full service and 100% payment


guarantee
At RatePAY, we understand the payment preferences of Germans.
Being an expert for the processing of unsecure payment methods,
we specialise in open invoice, instalment payments and direct
debit. Merchants who dont offer these options in Germany may
miss out on 50% of sales (Source: EHI Retail Institute: OnlinePayment-Study 2014). RatePAY offers all merchants a full payment
guarantee, enabling inclusion in their portfolio without any risk.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

69

Trustly
How Developments in Payments Will Truly Establish the Sharing Economy
Model
When it comes to the sharing economy, ratings and reciprocal

Since the very first sharing economy platforms, such as eBay,

reviews have long been considered fundamental to building

were established, the system of community checks and balances

trust between parties. While important, I would rather argue that

has kept things moving forward. Both customers and sellers need

the true drivers of the sharing economy model in the future are

to feel comfortable with all aspects of the engagement; customers

simplified and unobtrusive ways of identification along with reliable

want to feel secure that the service they are getting matches their

and tailored ways to make payments build trust amongst all parties

expectations while the seller needs to know not only that they will

involved and allow this revolutionary socio-economic ecosystem

be paid, but also that their interests are secure.

to reach its full potential.


That is where the platforms and marketplace owners come in; it

Disrupting established industries

is their role to make the market as effective as possible. In order

Since its mainstream advent, following the financial crisis, the

for them to succeed, however, there is a real need to facilitate

sharing economy model has bucked scepticism and is on the verge

the creation of trust not only between peers, but also between

of proving its viability.

participants and the platforms in the sharing economy without


adding complexity. There has been an overreliance on the

Authors Rachel Botsman and Roo Rogers estimate in their book

community to manage itself and community led reputation can only

"Whats Mine is Yours: The Rise of Collaborative Consumption" that

take the system so far.

the size of the total sharing economy is, at least, worth USD 110
billion. The acceleration of this form of exchange is not expected

Issues with reputation based platforms

to slow down any time soon; a recently published report from PwC

An issue with reputation is that reputation is very subjective because

estimates the sharing economy to be valued at USD 335 billion

preferences are subjective. There are other challenges associated

in 2025. It is obvious that the collaborative consumption model

with an overreliance on reviews, as well. AirBnB and other sharing

has disrupted established industries ranging from transportation,

economy pioneers have, for example, grappled with problems of

hospitality, retail and entertainment and shows no sign of abating.

review inflation and review retaliation. That is why, in my opinion,


reputation can be a complement to, but does not replace identity

So what has caused this massive growth? At its core, developments

verification.

in internet coverage and usability, along with social media,


has revolutionised the way we shop and interact with others.

The problem is that identity verification often adds complexity to

Fostering these developments, online marketplaces and platforms

the user experience. However, most marketplace owners do not

have managed to unlock whole sectors of individuals creating

want to burden private users with long registration or verification

communities of micro-entrepreneurs who are then kept from

processes before they actually become active. Likewise,

misusing the platforms through user reviews and rating systems.

marketplace owners do not want to expend valuable resources


performing background checks and other administrative tasks
to identify individuals using the service. While many players in
the market implement screening procedures, they are usually
cumbersome and risky. Moreover, it is not efficient for customers
to upload passport copies or other identity documentation on
several platforms.

70

ONLINE PAYMENTS MARKET GUIDE 2015

Catrine Rhenberg
Head of Marketplaces
Trustly

PwC points this out in a report in its Consumer Intelligence Series


on the sharing economy. They say "For the sharing economy to
continue to expand, the players within it will need to find ways

About Catrine Rhenberg: Catrine Rhenberg

to authenticate the identity of consumers In a peer-to-peer

is Head of Marketplaces at Trustly Group. She

model, not everyone has government verified documents or social

joined the company in 2014 from iZettle, where

media profiles that can sometimes suffice instead. Identifying, and

she was Commercial Manager, supporting their

upholding, quality and trust metrics will be critical to success in

international expansion. Catrine holds a B.Sc.

this evolving model."

in Economics with Economic History from the


London School of Economics.

A balanced and simple solution


What if there was an unobtrusive solution that was highly objective

About Trustly: Founded in 2008, Trustly Group

and which verified consumers identity with a high degree of

AB is a Swedish FinTech company providing

confidence, but did not require users to complete additional steps

speedy, simple and safe online payment

and could be completed at the time of the transaction?

solutions. In 2014, Trustly was ranked amongst


Sweden's fastest growing technology companies

This is precisely what Trustly does. Our service was built as a

on the Deloitte Technology Fast 50 list. Trustly

complement to existing bank infrastructure and banks do a good

is a licensed Payment Institution under the

job in verifying user identity. Leveraging online banking identification

supervision of the Swedish FSA.

is one of the simplest and safest ways to verify who you are.
Trustly removes the need for sensitive documents or payment

www.trustly.com

information to be stored on various different platforms altogether.


At the same time, Trustly is a payment facilitator. The customer both
verifies their identity and pays in a single process.
While it is fantastic that successful platforms have been established
in recent years, and the more people use them, the more encouraged
they will be to try new offerings, ultimately the way parties are
identified in any transaction or service relationship, as well as how
payments are made, will be fundamental to the industrys growth.
Trustly helps you monetise your marketplace simply and build
trust in your community.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

71

The European Payments Council


The Third ERPB Meeting Agrees Next Steps for Payments in Europe

The Euro Retail Payments Board (ERPB), chaired by the European

The Scheme would be separate to the existing SCT Scheme.

Central Bank (ECB), held its third meeting on June 29, 2015. An agree

It would support a competitive initiation layer.

ment was reached on next steps regarding instant payments in

It would be based on clearing and settlement layers.

euro, person-to-person (P2P) mobile payments, technical standards

Scheme membership would be open to any PSP but it would not

relating to payment cards and e-invoicing payment issues.

be mandatory.
Scheme Rulebook adherence would be mandatory for those who

Instant payments in euro

join.

In response to an invitation extended by the ERPB on December 1,

S
 cheme participants would participate as both sender and receiver.

2014, the EPC provided recommendations on instant payments.

A rulebook would be created to cover interbank clearing and

They were clearly introduced as a contribution from one stakeholder


among many represented at the ERPB.

customer-to-bank and bank-to-customer relations.


Other instant payment SCT-based schemes would need to be
interoperable with the SCTinst.

The ERPB welcomed he EPC report as an important step towards


achieving pan-European instant payments in euro and agreed the
following:

Indirect participants to the scheme would be able to fulfil scheme


requirements.
The meeting also identified and debated potential issues regarding
the SCTinst, including implementation, timespan, availability,

That irrespective of the payment instrument on which they are

value dating outside of business hours, erroneous and fraudulent

based, instant payment solutions offered to end-users in euro

instant payments and regulatory aspects. The EPC report to be

should be developed at the pan-European level or, if developed

submitted for the ERPB meeting of November 2015 will show how

at the national level, should at least be interoperable with those

these issues may be resolved.

solutions based on the same payment instrument;


to invite the EPC to present to the ERPB, by November 2015,

Person-to-person mobile payments

a proposal for the design of an instant SCT (SCTinst) in euro,

In response to recommendations from a report provided by the

which could be adhered to by EU payment service providers on a

ERPB working group on P2P mobile payments, the members of

voluntary basis;

the ERPB subsequently agreed to endorse the vision of allowing

to call for the creation of a group that reflects the composition

any person to initiate a pan-European P2P mobile payment

of the ERPB at the level of alternate ERPB members to offer

safely and securely, using a simple method with information the

guidance as needed to the EPC regarding the development of the

counterparty is prepared to share in order to make a payment.

SCTinst in the period from July to November 2015.


The ERPB has also expressed its expectation that the existing
As a result, the EPC will prepare the agreed proposal in close

and future local mobile P2P solutions cooperate to ensure pan-

liaison with an ERPB multi-stakeholder High Level Group which

European interoperability and has invited the EPC to facilitate this.

will provide guidance to the EPC and monitor progress.

Technical standards relating to payment cards


The ERPB High Level Group on instant payments held its first

The ERPB next agreed with a detailed report on the market

meeting on July 17, 2015 to discuss next steps in relation to the

initiatives to develop technical standards (implementation

EPC Scheme for instant payments. During this meeting, the EPC

specifications) delivered by the Cards Stakeholders Group

presented its preliminary thoughts on the position and scope of

(CSG), a multi-stakeholder group of which the EPC is a member.

the SCTinst, summarised as follows:

It responded that in the terminal-to-acquirer and card-to-terminal


domains, the choice of implementation specifications should be

72

ONLINE PAYMENTS MARKET GUIDE 2015

Javier Santamara
Chair
EPC

market driven and conform to the SEPA Cards Standardisation


Volume (SCS Volume). In the terminal security domain, terminal
security certification methodologies, processes and certification

About Javier Santamara: Javier Santamara

frameworks should implement the relevant list of requirements

is the Chair of the EPC, and a Senior Vice

described in the SCS Volume. The ERPB then invited the CSG to:

President with Banco Santander. He is a member


of the Board of the Euro Banking Association, a

 implement the relevant procedures and start to monitor the


conformance of implementation specifications for payment card

Director of the SWIFT Board and Chair of the


Iberpay Board.

products and services to the SCS Volume in H2 2015;


perform a study at the European level to evaluate any interest

About EPC: The EPC is an international not-for-

and benefit of the migration to a single message standard and

profit association, representing payment service

standardised clearing/settlement practices in the issuer-to-

providers, to support and promote European

acquirer domain;

payments integration and development,

r eport back to the ERPB every 12 months with an update

notably the Single Euro Payments Area (SEPA),

on the stock-taking exercise concerning the progress of the

through the development and management

implementation of harmonised standards relating to payment

of pan-European payment schemes and the

cards in Europe.

formulation of positions on European payment


issues.

E-invoicing payment issues


Finally, on the basis of a note prepared by the ERPB Secretariat,

www.epc-cep.eu

the ERPB endorsed the objective of a harmonised electronic


invoice/bill presentment & payment (EIPP/EBPP) service for
payers and payees, and an electronic invoicing/billing network for
payees to reach all consumers and businesses in Europe. The EPC
subscribes to the view that the topic should form part of a broader,
end-to-end perspective and be linked to the recently announced
EC Digital Single Market strategy as well as to previous work
carried out at EC level.
Following the meeting, the EPC stands ready to continue its active
contribution to the objectives and work of the ERPB as well as to
the implementation of the agreed upon ERPB recommendations,
with the full involvement of all other stakeholders. A statement
following the June 29 meeting is available on ECB website.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

73

CMS Payments Intelligence


US - Europe Regional Comparison in Terms of Regulation in the Alternative
Payments Space
Despite promising to deliver significant savings to merchants,

Interchange regulation has been implemented in both Europe and

interchange regulation has proved ineffective for online merchants

the US but, despite being panacea for excessive card fees, some

in North America, and is set for the same scenario in Europe.

online merchants will actually see very little net benefit while others
increase in fees. Why?

The North American and European online card markets are the
largest globally (see graph below), with 5.7 billion transactions

North America

happening in Europe and 18.9 billion in North America in 2014. Both

In the US, the Durbin Amendment, introduced in October, 2011,

regions have rapid volume growth via organic economic expansion

only covered debit card transactions. Credit card transactions

and brick-and-mortar retail cannibalisation. Currently, North America

are exempt from Durbin and, unfortunately, for online merchants,

is a more mature online payments market, with nearly 20% of all

less than 40% of online spending in the US is on debit cards.

card transactions happening online. Some European countries

However, even debit card interchange savings have been heavily

like Denmark, the Netherlands and the UK have high ecommerce

compromised by a diluted regulation. First, Durbin was originally

penetration rates. Others are still very dependent on in-store cash

scheduled to reduce debit card interchange from an average of

spending or online non-card alternative payment methods. This is

USD 0.44 per transaction to USD 0.07 0.12, but the cap was

forecast to change in the future. One consequence of substantial

increased to USD 0.22 by the time the regulation was introduced.

volume growth is that high card fees are becoming a heavier

Second, a small issuer exemption was added, meaning that 35%

burden for online merchants. In many countries, card fees for

of all debit card transactions were exempt from Durbin. Third,

secure ecommerce transactions are higher than for secure face-to-

merchant acquirers absorbed many of the benefits of regulation in

face transactions and merchants looking to raise their ecommerce

practice by not passing on savings to merchants (greater negative

presence are, therefore, seeing increased card fees as their revenues

effect on smaller merchants).

switch channels.
The total remaining annual Durbin benefit for online merchants
in the US is USD 1.37 billion, based on 2014 volumes. However,
more than half of this benefit has been destroyed by the varying
and additional fees, totalling USD 753 million per annum (CMSpi
estimates). These were unveiled by Visa and MasterCard after
Durbin, including USD 351 million for the Visa Fixed Acquirer
Network Fee (FANF), USD 278 million in increased international
service assessment fees and USD 79 million in increased
assessment fees. The fees are particularly punishing for online
merchants, as only 20% of all domestic card spend is online but
29.3% of all network fee increases have been levied on the online
sector.
Canada faces a similar situation because Interac, a dominant local
debit card scheme, has no interchange but is seldom used for
online transactions. Meanwhile, Visa and MasterCard interchange
Source: The Nilson Report

74

ONLINE PAYMENTS MARKET GUIDE 2015

may have recently been capped at 1.5%, a very high cap solving
few problems for online merchants.

Elley Frost
Managing Director
CMSpi

Europe
In Europe, the regulatory landscape is equally meagre. Many online
merchants saw a substantial interchange increase in March 2015,

About Elley Frost: During her 15 years

when Visa Europe changed its definition of online transactions such

at CMSpi, Elley has worked on delivering

that all MOTO transactions and non-3D Secure eCom transactions

bespoke payment solutions to a wide variety

(even where the CVV2 code is captured) now count as non-secure

of merchants in nearly every sector. Elley has

(this has impacted the online gaming sector in particular).

worked closely with both European and US


merchants to analyse and optimise their supply

After many years of waiting, EU-wide interchange caps are set

chains and provide innovative cash, merchant

to be introduced on December 9, 2015. However, as with the

acquiring and new technology solutions to

US, the regulation was diluted shortly before being entered into

reduce their payments costs.

force, with a EUR 0.07 per transaction debit card interchange


cap removed, commercial cards exempted and three party card

About CMSpi: CMSpi acts as a merchant

schemes also exempted. Following this, CMSpi calculates that the

champion in the payments industry. We are

net interchange benefit against 2010 interchange rates and 2014

actively engaged with merchants of all sizes to

volumes to be EUR 591 million for online merchants across Europe.

help minimise their cost of payment acceptance.

Additionally, as with the US, new post-regulation fees are emerging;

www.cmspaymentsintelligence.com

already MasterCard has released details on four new fees that will
greatly erode interchange benefit, with the proposed EUR 15 per
chargeback dispute fee set to be the most painful for the online
sector. Meanwhile, publically listed Visas impending takeover
of not-for-profit Visa Europe, suggests that similar fees can be
expected from Visa in the near future. Inevitably, the replacement
fees will end up absorbing the benefits of regulation, leaving little for
merchants, as they have done in the US.

Conclusion
Interchange regulation has failed merchants in the US and is
set to fail merchants in Europe, too. This is because of a heavily
diluted regulation being followed by replacement fees designed
to circumvent regulation and eliminate many of its benefits.
The replacement fees have hit online merchants particularly
strongly and, we think, there is an important reason why Visa
and MasterCard have targeted the online sector in particular: its
growth. By charging the highest fees to the fastest growing card
payment channel, the card networks are future proofing their own
businesses.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

75

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PAYMENTS
RISK
MITIGATION:
INDUSTRY
INSIGHTS

MRC
Four Pillars to Prevent, Minimise Data Breaches

One billion, one hundred million that is how many records were

Everyone in a company, from executive leadership to front line

compromised in 2014 per risk-based security , which shattered

support and service positions, must be familiar with these types

the previous mark set in 2013 by more than 22%. Numerous

of scams, and know both how and to whom such suspected or

mainstream companies were targeted, including Home Depot, JP

confirmed incidents should be reported. By joining a professional

Morgan Chase and eBay. Those three companies alone constituted

organisation like the Merchant Risk Council (MRC), key payments

nearly one-third of the lost and stolen records: JP Morgan Chase:

and fraud personnel can gain invaluable insights, discuss

around 76 million records , Home Depot: around 109 million

emergent threats and trends and share best practices with other

records , around 56 million of which were credit cards and debit

industry professionals.

cards and eBay: around 145 million records.

2. Check vigilantly for malware across all devices and


The National Consumers League states that, if a consumer's

systems - Malicious software was found to be the root cause

data has been breached, the odds are one in three that the

of the Home Depot data breach. Several other companies were

consumer will become a victim of fraud (page 5 of file). The

victims of malware on their point-of-sale (POS) terminals in

impact to consumers can range from irritants, like disputing

the past two years, including Target , Neiman Marcus and

unauthorised charges or updating automated bill payments to use

Michaels Stores . While these large-scale breaches exposed

a newly issued payment card number, to major life disruptions like

vulnerabilities in POS terminals, businesses must also ensure

recovering from identity theft. Breaches involving social security

any system or device which can be used to access company data,

numbers or health care data can be especially challenging for

email, etc. is routinely and thoroughly checked for malware. This

consumers as this information cannot be reissued and often the

includes cell phones and tablets, not just company-issued laptops.

burden of proving innocence lies with the victimised person.

3. Restrict data to those who need to know - Companies


Organisations like the Federal Trade Commission (FTC) and the

must balance transparency and openness with limiting information

National Consumers League have recommendations that

to those individuals who need to know. In its report, "2014: A Year

consumers can use to help protect their personal information.

of Mega Breaches ", (fig. 12) the Ponemon Institute indicated

For businesses, the following four pillars can provide a solid

that 45% of companies who reported a breach said the incident

foundation to minimise their chances of being breached and limit

resulted from either non-malicious employee error or malicious

any adverse impact to the bottom line if a breach occurs:

employee activities, which was equivalent to the percentage of


companies that reported malware as the root cause of the breach.

1. Create a culture of security

- Security has to start at

Routinely auditing permissions, maintaining access control lists

the top of a company. Leadership must become well-versed on

and restricting sensitive information to only those employees who

data and information security issues, and ensure their teams

need to know are all recommended actions.

have appropriate resources to monitor, detect and resolve


system vulnerabilities. Businesses should document their data

4. Encrypt data - In the event devices are lost or data is stolen,

security processes, develop an incident response plan if they

encrypting information helps ensure it is not readable or useable

do not already have one and review these documents regularly.

by illegitimate parties.

Illegitimate activities like phishing, spear phishing and social


engineering are no longer just the domain of IT Security.

78

ONLINE PAYMENTS MARKET GUIDE 2015

Markus Bergthaler

Building

MRC

Better Commerce

Global Director of

Fraud & Payments Professionals

Programs and Marketing


MRC

While there are upfront expenses regarding each of these


recommendations, businesses should bear in mind that the costs
incurred once a data breach happens continue to escalate. In its

Mike Splichal

tenth annual "Cost of Data Breach Study ," (p. 8 of file) which

Program Manager
MRC US

reviewed 350 companies across 11 countries, the Ponemon


Institute reported that the average consolidated total cost of a
data breach rose 7% in 2014 to USD 3.8 million; the average cost
for US organisations was USD 6.5 million. Their study also found
that the cost incurred for each lost or stolen record containing
sensitive and confidential information climbed more than 6% to

About Markus Bergthaler: Markus Bergthaler,

a consolidated average of USD 154; in the US, the consolidated

MRC Global Director of Programs and Marketing,

average (p. 6 of file) was USD 217 per record.

oversees benchmarking, education, committees,


communities, marketing and event content.

Ponemon also noted that companies based in certain industries


typically incur higher costs when records are compromised, with

About Mike Splichal: Mike Splichal, MRC

breach costs in the finance and pharmaceutical industries 40%

US Program Manager, coordinates content

higher than average, education nearly double the average, and

for committees, presentation archives and

health care more than twice the average (p. 10 of file). This is due

community forums. He also develops member

to the breadth and depth of personally identifiable information that

training and certification programs.

companies in these industries record and maintain.

About MRC: The MRC is an unbiased global


Benjamin Franklin once wrote, "An ounce of prevention is worth a

community providing a platform for ecommerce

pound of cure." Even two and a quarter centuries after his death,

fraud and payments professionals to come

businesses would do well to heed his wisdom as they plan and

together and share information. As a not-for-profit

execute an IT security strategy for their organisations.

entity, the MRCs vision is to make commerce


safe and profitable everywhere by offering
proprietary education, training and networking
as well as a forum for timely and relevant
discussions.
www.merchantriskcouncil.org

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

79

NOIRE

By allowing companies to move faster, NOIRE increases revenues whilst reducing risk and costs of doing business.

Could you provide our readers with some insights into

What benefits does tokenization provide to merchants

your companys mission, strategy and target markets?

and payment networks in order to stay secure against

We focus on bringing together best technology, acquiring services,

fraudulent attacks?

localised regional payment strategies, along with advanced fraud

In tokenization, tokens are stored as secure elements instead

risk management to provide the best payment solution for various

of card details. They are used for many things, such as recurring

use cases, such as providing Chinese local payment options for

payment models, multiple batch payment runs or simply for storing

complex business models. Another example is around taking

customers cards so they can do another payment without the need

payments in the local currency and settling to a bank account in

to re-enter card details.

that region in the local currency to comply with local requirements.


The tokens provide additional protection for merchants. They dont

Which are the greatest concerns that your merchant

need to store customers card details, which means that, even if

customers express in terms of payments security and

they do get hacked by fraudsters, the data is not there for them to

how do you mitigate them?

take. There have been recent stories in the press about customer

The greatest concerns on behalf of our merchant customers swirl

card details and bank details being stolen by fraudsters. However, if

around data security, prevention of hackers stealing customers

these organisations had used tokens instead of storing card details

details and card details. In this respect, we provide PCI Level 1

they would not have been exposed to the same level of risk.

platform security solutions. In addition, we tokenize card details,


implying that our customers never need to store a customers card.

What does a merchant need to do in order to be able


to quickly respond to new fraud threats?
Merchants should protect their business data, such as user
accounts and technology environments, in order to identify and stop
fraudulent transactions on time. The challenges to managing risk in
doing business online are plentiful. We work with our customers to
provide the most secure platforms for taking payments in correlation
with real time fraud detection on transactions.

What is the impact of multichannel commerce on risk


management?
Taking payments from apps on smartphones to websites implies
different risk exposure and requires different approaches to
mitigating fraud because, for example, fraudsters who gain access
to a merchants customer account data on one channel, can use
that data to breach other channels, respectively.

80

ONLINE PAYMENTS MARKET GUIDE 2015

The greatest concerns on behalf of our


merchant customers swirl around data
security, prevention of hackers stealing
customers details, card details
Does tokenization foster or impede innovation in

Tim Thompson
CEO

NOIRE

payments?

About Tim Thompson: Tim has 20 years

Tokens are used for multiple batch run payment strategies. Tokens allow

working experience in leadership roles for

customers accounts to store card data for reuse without the need to

venture back successful start-up companies.

enter card details again. Tokens allow merchants to provide a secure,

Specialist in payments and risk management

simple and time saving solution for customers.

technologies and the complexities around


FOREX, financial services, ecommerce, cross

Which are the top cybersecurity risks expected to


impact businesses and consumers in 2016?

border and localized payment methods.

I would say that customer account hacking is a top one. This is where

About NOIRE: NOIRE is a leading UK-based

accounts are compromised by fraudsters. There could be online

boutique payment and fraud risk solution

financial accounts, or simple customer accounts used for general

provider. The company offers internet merchant

ecommerce businesses.

accounts and bespoke payment gateway


technology, along with pioneering the most
advanced risk management and fraud protection
technology for companies ranging from FTSE
listed companies to small start-up businesses.
www.noirepay.com

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

81

Russian Electronic Money Association


Breaking the Glass Ceiling: Innovating AML/CFT in Retail Finance
Ceiling is still there

However, Russian regulation still does not recognise the difference

AML/CFT cost is the fastest growing budget line in the financial

between identification and verification and limits usage of third-

sector. KPMG Global Survey indicated an average of 53% increase

party databases for acquiring additional information about the

in AML investments from 2012 through 2014, with 74% of survey

person. This incremental modernisation of regulation seems to

respondents expecting it to grow further in the years ahead (Global

be only the first step in the right direction. However, while exact

Anti-Money Laundering Survey 2014 by KPMG International). The

steps are rather a national matter, the basic direction should be

number of vendors pitches on AML/CFT products and services is

universal.

growing proportionately. Information about clients has never been


as important as it is now for the viability of the business. Historically,

It is not about the identification

AML/CFT regulation applied primarily to bank accounts, and in a

AML/CFT regulators may learn a lot from the payments industry. In

face-to-face era no one really considered it a challenge. Today,

order to prosper, financial institutions learned to share their clients

anti-money laundering requirements define the development of the

and effectively collaborate to create new products and services.

financial sector worldwide. No product or even minor functionality

Clients register their cards in e-money wallets, make card-to-card

can be released without compliance department approval.

transfers on third-party websites and withdraw cash at ATMs all


over the world. Money is rather in the cloud than with the client.

Expectations that AML/CFT requirements will help banks in the

It is not the same with CDD. In many jurisdictions, clients need to

battle with cash did not come true. Some jurisdictions curbed

visit the bank office showing their ID. If a client visits many banks,

cash usage, but only for high-value purchases. Those with

clerks at each office will have to do the same over and over again:

middle and lower incomes are, on the contrary, facing stricter

identifying and verifying the same information using the same

CDD requirements and, for them, using cash is sometimes easier

tools. If money is in the cloud, why clients information is not?

than getting to the bank office with the ID and a stash of other

And, why are we still using outdated authenticating techniques,

documents. Risk-based approach in the FATF Recommendations

trusting the ID card more than its owner?

is still rather unclear and depends on local interpretations of what


high and low risk is. The arbitrage is obvious when comparing the

Lack of progress in CDD procedures worldwide can be explained by

account opening procedures in Russia and the UK, for example.

the disproportionate evolution of identification and authentication.


Citizens data is already stored, either centrally or decentrally, in

82

It is getting obvious that there will be no breakthrough in payments

state or privately-owned databases. If the state does not know

without the breakthrough in AML/CFT procedures. Traditional CDD

something about you, credit bureau does. Hence, the future of

is holding the industry and the client back. Russia is probably

CDD depends not on the data but rather on the ways to access

one of the representative examples of notorious and sometimes

it. How to make sure that the person is the one he says he is?

painful transition to the new CDD paradigm. Up to 2014, Russia

India is probably one of the most forward-thinking jurisdictions in

employed binary approaches to CDD: regulation either required

this respect. Instead of relying on documents that can be stolen,

full identification or permitted full CDD exemptions. Since 2014,

forged and lost, they created national iris and fingerprint database

financial institutions are allowed to perform simplified due

creating the ultimate paperless KYC. This is probably the most

diligence by verifying two factors via state databases and mobile

indicative example of more progressive customer due diligence.

phone number, or using credentials from the clients verified

It is not about the identification, it is about the tools to access

account on the e-gov website.

correct data and access it safely.

ONLINE PAYMENTS MARKET GUIDE 2015

Dr. Victor Dostov

ELECTRONIC
MONEY

President

Russian Electronic

Money Association

Unfortunately, for many banks and regulators authentication has


long been second. But innovative authentication techniques can
pave the way to simple and effective full CDD process that can

About Dr. Victor Dostov: Dr. Dostov is a

mitigate risks, but be as convenient as what we call simplified CDD.

President of the Russian Electronic Money


Association since its inception. With background

New face for full CDD

in management, research and investment in

Even though risk-based approach is crucial, instead of

payment technology projects, he provides his

experimenting with multi-tiered models, complicating internal

expertise on payment industry developments

procedures and confusing the customers, regulators and financial

and regulation to public and private bodies.

institutions may well look into innovating the whole system. FATF
Recommendations do not say anything about full CDD being

About Russian Electronic Money Association:

burdensome. It requires effectiveness, instead. Apart from close

Russian Electronic Money Association is an

cooperation with the regulators, financial institutions should

industry association currently representing the

contribute by investing into more advanced authentication

15 largest players of the Russian e-money and

techniques. Data storing entities be those private or public

money transfer industry. Primary goals of REMA

should not only aggregate information but also think of how to

are sustainable development of the industry,

use it wisely. Moving away from photos and PINs towards remote,

promotion of best practices and provision of

reliable verification of identity may help breaking the glass ceiling,

expertise for the major stakeholders in private

which is the CDD from the 20th century for the financial services

and public sectors.

from the 21st.

www.npaed.ru

Latest Russian regulations allow to perform simplified CDD


by authenticating the client via the e-gov portal. However, the
projects like these require universal enrollment and technical
flexibility. Russia still has a way to go

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

83

VOICE OF THE INDUSTRY


This Voice of the Industry section www.thepaypers.com/voice-of-the-industry is designed to

provide industry leaders with the great opportunity to share their views on specific developments
in the global payments market and to promote their innovative products or services.

The Voice of the Industry section includes:

Expert opinion

Aims to provide the worlds leading experts and industry thought leaders with the
opportunity to expose and share their vision and expertise on specific developments
in the global payments market with our readership.
Visibility:
- Added on website and daily & weekly headlines which are sent out to our > 16.750
subscribers
- 2 days display in daily headlines

Case study

Is a retrospective on a successful market implementation of a product/service or


a strategic acquisition carried out by a company. This product is conceived as an
overview of a specific product or service deployment, a successful partnership or
else finalized product launch, outlining the business case, results to date and best
practices derived as a result of this implementation.
Visibility:
- Added on website and daily & weekly headlines which are sent out to our > 16.750
subscribers
- 2 days display in daily headlines

The Product/Service Briefing

Allows organizations to provide existing and potential new customers as well as the
industry at large with an in-depth look at new and innovative products/services /
business models they are about to launch (the definition of innovation is: a change
in a product offering, service, business model or operations which meaningfully
improves the experience of a large number of stakeholders)
Visibility:
- Added on website and daily & weekly headlines which are sent out to our > 16.750
subscribers
- 2 days display in daily headlines

THE MARKETPLACE MODEL


OPENING THE
WORLD FOR
BUSINESS

Alibaba.com

Alibaba.com is committed to supporting Thailand SMEs grow their business through its platform.

What is Alibaba.coms philosophy about ecommerce,

(3) In addition, our 1688.com platform is another channel for Thai

in general?

SMEs. 1688.com is a leading online wholesale marketplace

Alibaba Groups mission is to to make it easy to do business

in China and has been in operation since 1999. By the end

anywhere. With that mission in mind, Alibaba.com is bidding to

of 2015, 1688.com is scheduled to roll out services including

boost trust and provide one-stop services to facilitate cross-border

customs clearance, logistics support and product inspection

trading. In Thailand, we plan to roll out the upgraded Trade Assurance

to facilitate the importation of wholesale goods to China.

later in 2015 and the Merchant Delivery Scheme to help Thai SMEs.

We believe this is a great export opportunity for Thailand

They can also turn to the 1688.com for export opportunities.

merchants as well.

How can marketplaces help merchants boost their

B2B buyers are increasingly demanding a B2C-like

businesses across borders?

purchasing experience. What can B2B companies do

Speaking from Alibaba.coms perspective, we have the following

to match the B2C experience?

measures in place to help Thai merchants boost their business

Good customer experience is one key differentiation point in the B2B

across borders:

industry as well. To provide supreme customer experience, Alibaba.


com teams up with local partners to provide one-stop services

(1) Trade Assurance: Alibaba.com announced an upgrade to

offering access to financing and logistics resources in local markets

the Trade Assurance program, a free service designed to

- to meet the tailored needs of our members. We also have a

give businesses peace of mind when buying from overseas

dedicated team for key markets, including Thailand, so that we can

suppliers. With the upgrade, Thai buyers who make purchases

better listen to our customers and offer them the best services.

from qualified Alibaba.com suppliers will be entitled up to a


full refund of their deposits or order amounts in case suppliers
fail to meet the shipping times or product quality specified in
contracts. Also, coverage has been extended to post delivery,

Good customer experience is one key


differentiation point in the B2B industry

meaning Thai buyers are now entitled to full refunds in relevant


transactions if they spot quality problems after receiving
orders.

How does Alibaba.com see the ecommerce market


in Asia Pacific developing up to 2020?

(2) We just launched the Alibaba.com Merchant Deliver Scheme in

As Thailand is one of the ASEAN countries, lets talk more specific

May, 2015 aiming to provide members with logistics solutions

on ASEAN. ASEAN has a thriving consumer market and retailers in

and consultation services in cooperation with logistic partners

this region are more agile to accept new developments and have a

in various countries. We work with Singpost on this program

bigger potential for the future growth of the ecommerce industry.

in Thailand. Thai and Malaysian Alibaba.com members,

The geographic vicinity of China and ASEAN can also bring

including both Verified Members and Gold Suppliers, can

bilateral ecommerce cooperation with more tangible benefits, like

obtain preferential rates when choosing the Ezyparcel

logistic convenience.

services of SingPost.

86

ONLINE PAYMENTS MARKET GUIDE 2015

Michael Mang
Head of International

Thailand is one of the key markets for


Alibaba.com in Asia

Business Development and


Marketing, APAC & MENA
Alibaba.com

On the back of this booming ecommerce B2B market, Alibaba.


com has been teaming up with different local partners to provide

About Michael Mang: Michael is Head of

the optimal one-stop services for SMEs aka TFL, including

International Business Development and

Trust (Trade Assurance), Financial (E-credit line program for SME

Marketing, APAC & MENA for Alibaba.com.

financing need) and Logistics (Merchant Delivery Scheme) while

Michael joined Alibaba.com in May 2009 as a

we gradually scale up our presence in the market.

business development manager in the buyer


service and development team, and has since

Thailand is one of the key markets for Alibaba.com in Asia. We currently

accumulated years of experience in B2B

have about 470,000 registered users in the Thailand channel on

ecommerce.

Alibaba.com. We have been on a healthy growth path over the


past years. We look forward to getting more buyers and sellers

About Alibaba.com: Alibaba.com is the leading

from Thailand to join our platform and supporting Thai SMEs to

platform for global wholesale trade serving

engage in the global trading scene.

millions of buyers and suppliers globally.


Through Alibaba.com, small businesses can sell
their products to companies across borders.
Alibaba.com sellers are typically manufacturers
and distributors based in China and other
manufacturing countries such as India,
Pakistan, the US and Thailand.
www.alibaba.com

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

87

Juniper Research
Online Retail: A Social Activity

Both social media and eRetail are increasingly mobile in nature.

but to act as a direct sales platform. In Q3 2014, both Facebook

Nearly 90% of Facebooks 1.5 billion monthly active users now

and Twitter soft launched buy buttons, which allow users to make

access the website via a mobile handset or tablet, while numerous

purchases directly from the company's mobile app in a seamless

other social websites (such as Snapchat, Twitter, Instagram,

couple-of-clicks transaction. In both cases, the embedded

WhatsApp) have mobile user bases in the hundreds of millions.

purchasing feature was delivered by the US start-up Stripe.

On the retail front, transactions on mobiles and tablets will

Facebooks service which went live in July 2015 initially offered

account for more than 35% of all US eRetail by value in 2015 (and

buy buttons in sponsored posts on the news feed, but now offers

25% across Western Europe), with worldwide eRetail expected to

the option within brand and retailer pages. It has been reported that

increase by 17% to more than USD 1.7 trillion.

Facebook is also developing a virtual assistant within Facebook


Messenger to help consumers look for and buy products.

Twitter ties up with Amazon


As part of its own move into the retail space, Twitter has acquired the
US startup CardSpring, a company that helps developers to create
apps which will accept credit/debit card payments. Twitter has also
partnered with Amazon, allowing consumers to link their accounts.
If a link to a product page then appears on a users Twitter timeline,
a reply using the hashtag #AmazonBasket or #AmazonCart adds
the item to their Amazon basket.
Some of the latest social networks, which have launched a buy
button, are Pinterest and Instagram. Pinterest confirmed in early
June, 2015 that one would be offered inside its app for iOS devices
by the end of the month; purchases can be made using either credit
cards or Apple Pay. The company confirmed that more than 2
From a retailer perspective, social media have become critical

million items would be available for purchase from the outset, with

platforms for reach and engagement. Most leading brands and

retail partners including Macy's, Nordstrom and Neiman Marcus.

retailers now have a significant presence on leading social media

88

websites, and offer options to share comments on purchased

Meanwhile, Instagram is introducing a range of buttons, including

products (and wish lists) via social applications. The scale of

Shop Now, Install Now and Sign Up. The Instagram buttons,

retailer social activity is reflected in their advertising spend on key

which use the Like2Buy platform designed by the marketing and

websites: in 2014, Facebooks mobile advertising revenues rose by

analytics company Curalate, open up a mini-browser within the

nearly 140% to around USD 7.5 billion. However, Facebook and its

Instagram app. If the user wishes to make a purchase, one more

peers are understandably keen to take their involvement in retail to

click takes him/her to the product page with the option to buy and

the next level.

proceed to checkout.

We are now seeing the first partnerships between brands and

According to some reports (until August 2015), Google is poised to

social media platforms, as the former seek to leverage the reach

introduce its own button onto mobile devices, with shoppers who

and engagement of the latter, not merely to advertise their product

click the button being directed to a Google product page.

ONLINE PAYMENTS MARKET GUIDE 2015

Dr Windsor Holden
Head of Forecasting
& Consultancy

Juniper Research
A Facebook retail experience
It could be argued that Facebook et al are trying to have their
cake and eat it, in that they will be receiving one revenue stream

About Dr Windsor Holden: Dr Holden has

for advertising the product and another for selling the product.

written more than 70 strategic reports for Juniper

However, the social media companies would argue with some

Research on digital services and technologies,

justification that they are simply smoothing the path to purchase,

specialising in the field of digital commerce,

with a click-through effectively equating to a sale in some models.


In the case of Facebook, it means that the entire retail process
from product discovery to checkout can take place on its website,

including the recently published Mobile &

Online Purchases: Cards, Carrier Billing &


Third Party Payment Platforms 2015-2020.

or in its app.

About Juniper Research: Juniper Research


One potential implication of this approach is that it may in turn

specialises in identifying and appraising new

change the way in which brands design their own social media

high growth market sectors within the digital

pages, placing a greater emphasis on selling rather than just user

ecosystem. Market sizing and forecasting are

engagement. It is also potentially far more lucrative than, say,

the cornerstones of our offering, together with

relying on sponsored posts to boost traffic.

competitive analysis, strategic assessment and


business modelling. Juniper have unrivalled

experience and knowledge in the digital

Facebook versus Amazon


In the case of Facebook, this move also positions it as a direct

commerce and money sector.

competitor to Amazon. Given Twitters 140 character modus


operandi, the link through to Amazon makes perfect sense and

www.juniperresearch.com

benefits both parties; here, however, payments occur under the


social behemoths own roof and thereby means that it and Amazon
will be fighting for the same customers. Hence Amazons own
attempts to increase the scale of its touchpoints with consumers
(including original TV content) and achieving to differentiate itself
from other online retailers with the launch of same-day delivery.
Will consumers benefit? On the plus side, it will become even easier
to make that online purchase; on the potential debit side, the social
media giants will know even more about you and your shopping
habits. Big Data just got even bigger.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

89

Limonetik

International development, as a real goal for e-merchants and marketplaces, is an essential strategy. Lets talk about
this challenge with Limonetik!

Where does Limonetik see itself in the ecommerce

In Asia, marketplaces normally already enjoy an enormous

payments market?

consumer base in their local market. In China, ecommerce covers

As a PaaS, Limonetik is dedicated to providing its customers with

over 300 million consumers. Sales of Alibaba are more than the

a unique one-stop payment technical solution. Our core value

total combined of Amazon and eBay. However, to enlarge the

proposition is to deliver services for all the players in the ecommerce

enterprise size and provide an international platform for Asian

value chain: international payment methods, PSPs, acquirers,

merchants, Asian marketplaces are trying to go abroad as well.

marketplaces and merchants.

Looking forward, Asian merchants will also open stores on


European marketplaces to accelerate sales and promote brands,

We connect payment methods to ecommerce websites directly

instead of running their own online stores and face unfamiliar

or through their PSPs, processing settlements and enriching the

challenges in foreign markets alone.

customer journey with payment innovations and personalised


payment pages. We also create bespoke payment methods and

Additionally, in Europe, the marketplaces of specific categories

checkout pages that can include targeted marketing campaigns.

will rapidly emerge. This type of marketplace normally targets

In the short term, we are trying to solve the complexity of cross-

only one single sector, like travelling, gaming, or 3c digital

border ecommerce. We are addressing billing, settlements,

products. They do not cover broad verticals, so the marketplace

maintaining the client's compliance with local payment rules and

can optimise their resources with higher efficiency and strengthen

regulations and facilitating financial flows and collection processes.

the value proposition. This way, they can develop a well-rounded

Through the use of new payment technology we create an enriched

understanding and expertise knowledge of one sector to deliver

users payment experience.

better performance with merchants who aim to meet the needs of a


niche of consumers.

The growth of online marketplaces over the last 10


years has been phenomenal. How is this market

So, predictably, shares of marketplace sales will be soaring,

developing and what trends do you see in Europe

continually acting like a sales promotion engine for merchants.

and Asia?
To achieve larger growth, more domestic merchants will opt

If a merchant wants to expand internationally, what

to go global. But, if one goes to foreign markets, complicated

should they take into account when selecting a

geographic localisation is an unavoidable challenge; they need

marketplace (either domestic or global)?

to understand consumers cultures and their payment habits,

Primarily, merchants should acquire all the information about

KYC and KYB localisation strategy, complexity of payment

the marketplace: products sold, regions targeted, consumers

flow, regulation compliance, etc. Thus, to open a store on the

demography, their international sales channels, supply chain

local or international marketplace, the choice of platform is an

management situation, in which sectors they have competency,

important decision for the merchants blueprint for cross-border

the entire payment flow, payment methods they integrated with,

transactions. For example, we have noticed that more and more

payment processing between marketplaces, acquirers and

European retailers, especially fashion and luxury brands, open

merchants, their delivery range, promotional tools like loyalty

storefronts on Asian marketplaces, instead of creating their own

programs, gift cards and bonus coupons.

online stores in Asia.

90

ONLINE PAYMENTS MARKET GUIDE 2015

To achieve international growth,


merchants should consider
marketplaces capability to be
compliant and keep up with local
online consumers buying habits

Christophe Bourbier
Chairman & Co-founder
Limonetik

They should also consider the language versions of the websites; in a

About Christophe Bourbier: After he obtained

single local language, in English to cover English-speaking countries,

a Business and International Relations Masters

or multilingual, which is significant for the markets they cover.

from the University of San Diego, California,


Christophe dived into entrepreneurship creating

Meanwhile, due to lack of knowledge on complicated local financial

diverse companies in IT and Communications

regulations, merchants should consider if the marketplace platforms

and worked as consultant for Capgemini.

have the capability to digest all these complexities and support

He finally co-founded Limonetik with the goal of

them to meet all the compliance and regulatory rules. An eligible

simplifying online payments.

marketplace should help merchants handle all the issues and


complete billing, settlements and collecting efficiently. In Europe,

About Limonetik: As an online enriched

one is expected to obey the rules, to ensure fraud prevention,

payment platform (PaaS), Limonetik provides a

to provide security of the payment process, follow risk control

unique one stop shopping payment solution

management, all in accordance with European Banking Authorities

that connect international payment methods to

and to work against money laundering.

marketplaces and merchants directly or through


their PSPs. Limonetik delivers advanced

Additionally, the marketplaces support for localisation is also

services to collect and manage settlements to

indispensable and should be taken into consideration, such as their

reconciliation step. Limonetik, the guarantee to

multi-platform promotion, localised marketing campaign and digital

be compliant with regulations!

strategy. Because all of these will be important for the merchants to


create brand awareness in foreign markets, these are essential to

www.limonetik.com

implement in their global strategy.

What are the compliance challenges merchants and


marketplaces face when selling internationally?
As previously mentioned, both merchants and marketplaces need
to face unfamiliar markets when trading internationally: local
rules, regulations, consumption habits. These are all noticeable
challenges for them. To enter international markets and run their
foreign businesses, all of these new factors have substantial
impacts on their whole strategy formulation and implementation,
including internal organisation, payment flow processing, KYC,
KYB, CRM, etc., which are all indispensable to provide a better
online shopping experience for the local shoppers.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

91

The Paypers
The Age of A(ces) in Ecommerce: Alibaba, Amazons Strategies for Global
Dominance
In the ecommerce marketplaces space, Amazon and Alibaba are

renamed Amazon.cn, acting as a Chinese version of Amazons

two forces to be reckoned with. Both ecommerce giants have,

platform. In March 2015, Amazon opened an online storefront

beyond any shadow of a doubt, changed the way ecommerce

on Alibaba's popular Tmall marketplace to gain access to a

business is undergone globally. Moreover, they have realized that

huge customer base in the local market. Against this backdrop,

to spark success, an entire mechanism had to be developed,

Amazon's strategy to use the Alibaba Tmall platform is illustrative

from manufacturing, advertising, gaining customers, setting the

of how difficult it is to tap into China by ones own forces.

payments system and, finally, to delivery.

Thus, partnerships with local players prove essential to successful


operation across borders.

Inevitably, in the attempt to pursue such endeavors and gain


foothold in the market, the US colossus and Chinese behemoth

After failing to gain significant market share in China, Amazon

have become fierce competitors. Their Q2 2015 financial results

has decided to direct its overseas growth ambitions on India,

stand as proof for their battle for supremacy : USD 240 billion

while Alibaba is looking to Russia and Latin America to expand.

(Amazon) vs USD 180 billion (Alibaba) in valuation. Following

However, their paths will inevitably cross again on either US or

Alibaba`s announcement in 2014 on its largest global IPO ever, as

Chinese soil.

well as its plans to strongly expand in the US and Europe after its
US listing, the Amazon-Alibaba rivalry has reached a new level of

Logistics and speed: a crucial stratagem to success

intensity, where every move matters.

Digital commerce has been through a paradigm shift whereby


customers have taken the reins of how trade is undergone,

In spite of many differences in their business model, there are also

by demanding almost instant delivery of packages, among

strategy-related similarities between Alibaba and Amazon that are

others. According to HRC Advisorys 2015 Supply Chain

too significant to ignore. In the present article, we try to highlight

Transformation study, consumers are very interested in near

only some aspects of these companies` strategic (and mirrored)

instant deliveries of products ordered online, and this consumer

approach, having international expansion and logistics as key focus.

habit is challenging retailers as they are not prepared for very


fast parcel deliveries. Both companies have experimented with

Entering the rival`s market and the inherent challenges

delivery drones, among other approaches. In July, 2014, Amazon

Alibaba dominates ecommerce in China, as Amazon does in the

requested the US Federal Aviation Administration to test drones

US. Given the inherent huge business opportunities, cross-border

but regulators were unprepared for the idea and restricted

ecommerce has become a battlefield for the two giants. Just like

permission. The US company turned to Canada, in March 2015,

all retailers, Amazon and Alibaba face real challenges abroad,

to develop its testing, as the domestic regulatory atmosphere

including language barriers, cultural differences, logistics, delivery,

was corrosive and, after a long time frame, the FAA granted

payments and many other aspects. However, such hurdles have

permission for the project to continue under some technical

not discouraged Alibaba in its attempt to try and grow presence in

limits. Alibaba borrowed the delivery drones idea from its rival

the US, or for Amazon to expand operations in China.

and turned it into practice in February, 2015, via its domestic


marketplace, Taobao.

In June 2014, Alibaba launched its first foray into US-focused


ecommerce via 11 Main, an online marketplace for US goods.
However, it seems that the initiative was not successful with
merchants, as Alibaba has already sold its US website to social
shopping marketplace OpenSky. In 2004, Amazon acquired local
Chinese shopping website Joyo.com. In 2007 the website was

92

ONLINE PAYMENTS MARKET GUIDE 2015

Adriana Screpnic
Editor-in-Chief
The Paypers

In parallel with delivery drones, both companies have also


developed logistics hubs, either via partnerships or by their own,
in various parts of the world in order to cut time and offer their

Sebastian Lupu

customers faster delivery methods. For example, Amazon has

News Editor

The Paypers

made huge investments in building out a network of warehouses


in China, beginning with the Shanghai fulfillment centre in 2014 to
ensure fast deliveries to customers.
On the other hand, Alibaba (via its logistics arm Cainiao) has
struck a deal with US Post Office in order to boost cross-border

About Adriana Screpnic: As Editor-in-Chief

ecommerce between China and US. Besides striking logistics deals

at The Paypers, Adriana manages the editorial

and building fulfillment centers, Amazon has also developed a

team, being also involved in large-scale,

farm-to-door delivery method, which also takes into consideration

industry-specific research and content creation

consumer psychological impact. Amazon, in line with other global

projects.

retailers like eBays eBay+ release in Germany , has developed


Amazon Prime shipping program, whereby it promises a number

About Sebastian Lupu: At The Paypers,

of advantages, such as same-day or two day deliveries on millions

Sebastian writes news items and research

of parcels to customers on paid subscriptions. Alibaba, in turn, is

articles on the payments industry and

heavily investing in logistics companies across China to fuel

ecommerce. Sebastian holds a PhD in Philology.

its ambitions and secure its dominant market share in China, if not

About The Paypers: The Paypers is the leading

in the world.

independent source of news and analysis for


Conclusion

professionals in the global payment community.

The US titan will surely seek to expand ecommerce operations in

Our products are created by payment experts and

new markets and secure its coveted position, whereas Alibaba

have a special focus on all major developments

will be on the lookout for new business opportunities to reclaim

in payments - related industries including online/

its stolen position as the first global market leader. Their agenda

mobile payment, ecommerce, e-invoicing, online

will be around constant business growth by paying attention to

fraud prevention innovations and the most

consumers needs and how their respective needs may be met, a

significant trends in the e-identity space.

crucial aspect of the global digital agenda now and in the future.

www.thepaypers.com

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

93

SELLING
GOODS IN
THE DIGITAL
WORLD

cleverbridge
Do Subscriptions Make Sense for Your Business?

Subscription billing has been around for as long as newspapers

5. Increased focus on customer relationships

and magazines. The idea of paying a fixed or variable amount on a

Customer relationships are critical to any business. However, the

regular basis for a product or service has definitely carried over to

subscription model forces companies to change their mentality

the digital world. Companies are abandoning the notion of simple

about customers and raises the importance of the relationship.

one-time charges for their product as they realize these sales are no

Unlike transactional model companies where, often, only the sales

longer enough to assure profitable growth from the digital channel.

and marketing teams track customer relationships, in a subscription


business model, the core business metrics are fundamentally

The subscription business model has gone mainstream because

about those relationships. Churn, for example, is one of the most

it offers a predictable, recurring revenue stream. But is it the best

important metrics to a subscription business. Since the metrics

option for your company and customers? Lets explore the pros

drive business, customer relationships in a subscription business

and cons of the subscription model.

are core to the whole organisation, from top to bottom, and not just
select departments.

Pros of subscriptions:
1. Recurring stream of revenue

6. Reduced CapEx for B2B customers

By definition, subscription models offer continuous and recurring

Many businesses are cautious about making capital expenses for

streams of revenue from each subscriber, without needing to

items such as enterprise software. However, subscriptions allow

lead them through a checkout process again. Data from Custora

customers to shift software spending from capital to operating

suggests that Customer Lifetime Value (CLV) of repeat customers

budgets. Reducing CapEx costs looks good on a company's

in commerce businesses is over six times that of one-time buyers.

balance sheet and leaves more cash on the books to deal with
potential or unknown problems. Additionally, B2B customers

2. Convenience for the customer

typically have the right to adjust their subscriptions to reflect a lower

On service subscription, customers get the convenience of a regular

or higher headcount or changes in application requirements. Not

supply of whatever product or service you are selling. Instead of

being locked into a fixed situation is something many businesses

having to remember to come back to your website once a month,

prefer.

the customer gets the products automatically.

Cons of subscriptions:
3. Improved business planning

1. Possible customer concerns

The subscription commerce model enables more definitive business

A common fear among digital vendors is that many customers

planning. It enables you to plan the customer acquisition costs,

hesitate to sign contracts where they are re-billed on a pre-defined

determine the lifetime value of a customer and the churn rate,

schedule. These fears are certainly valid, making it even more

providing key data for improved planning and business expansion.

important to understand the different options you have when


selling products on a subscription basis.

4. More customer data

96

Because the relationship is ongoing, you have the opportunity to

2. Complexities of managing subscriptions

learn more about your buyers behaviors. Usage data is the best

Subscriptions success entails much more than merely switching

lens through which to increase customer lifetime value. Knowing

from one-time to recurring billing. Subscription management can be

what marketing promotions to run, what cross-selling strategies to

quite complex. "As companies grow their subscription businesses,

use and whom to target with rate plans changes are all powerful

they often find that existing ERP and billing systems are not well

results of harnessing usage data.

equipped to handle the real-time tracking of new success metrics,

ONLINE PAYMENTS MARKET GUIDE 2015

Craig Vodnik
Co-founder

cleverbridge

including ARPU (average revenue per user), churn, M/ARR (monthly


and annual recurring revenue), recurring profit margin and customer
lifetime value," said Amy Konary, research vice president, IDC.

About Craig Vodnik: Craig Vodnik is Cofounder of cleverbridge, a global full-service

This can get even more complex with B2B subscriptions because

ecommerce provider for over 300 international

traditional systems typically cannot handle the management of

software and subscription companies including

new processes, like single orders which create multiple invoices,

Avira, Corel, Dell, Malwarebytes and Parallels.

an invoice that generates multiple revenue recognition processes,

He holds a BA in Nuclear Engineering from the

multiple orders on one invoice and the combination of all orders to

University of Illinois, Champaign-Urbana.

create a renewal invoice.

About cleverbridge: cleverbridge is a leader in


3. Doesnt always transfer to global success

ecommerce technology, services and expertise

While subscriptions have certainly exploded in countries like US,

for global software and subscription companies

this isnt always the case globally, where a subscription product

that serve consumers and businesses.

has the potential to become a big hassle for customers using

For over 300 clients including Avira, Corel,

offline payment methods. For example, in Germany, wire transfer

Dell, Malwarebytes and Parallels cleverbridge

is the most important local payment method and, in Japan, the

is a true extension of their teams, understanding

Konbini payment method, which requires cash on delivery, is a

each clients billing models, markets, channels

popular alternative. Both payment methods lean toward an up-front

and specific ecommerce requirements.

payment model. After all, how many US consumers would consider


going to a Western Union location every month to pay their monthly

www.cleverbridge.com

Netflix subscription?
However, if you are planning to offer offline payment methods for
your subscription/SaaS products, here are some considerations

and tips to increase conversions and reduce churn.


In their eagerness to earn more revenue and keep up with trends
in global ecommerce, too many businesses want to dive headfirst
into the subscription commerce pool. Before you take the plunge,
consider how you're going to build a subscription service and how
your customers will interact with it. Make sure you're building it to
meet the needs and interests of your target market. Ask yourself:
"What are the key customer benefits? What customer pain points
does it solve? Will customers engage with the product?"

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

97

Mark Gerban
Proliferation of In-App Payments in Ecommerce

In-app payments have become an essential part of the mobile

This comes at the disadvantage of having to create a full-checkout

and cross-channel market ecosystem, making the sale of goods

flow that customers need to familiarise themselves with, but being

possible anytime, anyplace, anywhere. Not only do these payments

that Apple allows their biometric security layer to be applied with

lead users towards a more convenient way of payment, but they

other applications, it could make for better checkout experience

also shorten the payment process, heighten security and can

than the traditional Apple or Google payment flow.

potentially bring in a whole new generation of loyalty programs and


user targeted buying campaigns.

Furthermore, merchant-driven in-app payments allow for a


cross-channel strategy to take place, where merchants can

Starting with the digital goods space, in-app payments, such as

track purchasing behaviour via a fully-added mobile or desktop

those offered with Apple and Google, are mandatory for placement

dimension, connecting both commerce platforms together in one

of products in the iTunes and Google Play stores. This has been

account. This advantage enables individual customer-targeting on

the norm in the digital goods space for the past few years, where

all systems, where multiple user accounts on different devices are

both Apple and Google have used the digital goods industry to

no longer necessary, and payment credentials could be transferred

fine-tune their strategies for tangible and offline NFC payments.

from one system to another with little effort from the customer end.

Digital goods essentially come in all shapes and sizes including


music, games and other such downloadable or upgradable

Perhaps, one of the most interesting applications for in-app

software content.

payments is the role they can play for the future requirements of
the SecuRe Pay standards, which pushes for higher forms of

But the key to making these types of products monetise so

authentication for online purchases. Generally, if consumers use a

easily is the simplified payment flow that in-app purchases have

unique identifier such as their mobile device, linked with a biometric

to offer; customers are not presented with the complexities of

and their tokenized payment credentials, this would reach a level

entering their credit card details repeatedly, or thrown out of

of security that is much higher than user name and password

their gaming experience, simply to make a payment. This affects

standards. In-app payments are great for security, but also have

conversion and overall customer satisfaction, and is a critical point

some areas to improve on.

in digital business flow, since this is when money is transferred.


Instead, in-app payments allow customers to enjoy the shopping

For example, as we saw with Apple Pay during its first few months,

experience by offering a quick checkout experience that is arguably

where they had around 600 basis points reported for POS purchases.

more secure with the addition of Apples biometric security and

It was not entirely the fault of Apple, as the issuing banks were called

tokenization layer, which converts much better than traditional

and enabled stolen credit cards on hackers devices, but it does

online payment types.

seem as though in-app and mobile payments will have a clear role
to play within the scope of online security.

Tangible goods have a slightly different advantage for in-app


payments, where it is not mandatory to use Apple or Googles
payment systems. This decision is likely due to the risk profile of
goods on the tangible market, where tangible goods companies
can better manage their own risk, while the cost of payment can
be negotiated to much lower terms than Apple or Googles offering.

98

ONLINE PAYMENTS MARKET GUIDE 2015

Mark Gerban
Payments Industry Expert

Conclusively, there are still some areas where in-app payments


need to improve their current systems. Apple and Google are
currently setup for general use in a mobile environment, which

About Mark Gerban: Mark is a payments

means that their checkout process is optimised on the mobile side,

industry expert with management experience in

but not necessarily for a desktop environment.

the international payment space. Having worked


for international companies such as InnoGames

Apple and Google also have the issue that, while a user can use

GmbH and gamigo AG, he managed a payment

their payment details with any application on a phone and apply

portfolio of over 50+ international payment

this with NFC and POS purchases, they are having difficulty in

methods, serving over 140 million users. In early

gaining traction with online merchants integrating their solutions on

2014, he was elected to the European Advisory

traditional ecommerce websites. Apple Pay does have an API that

Board of the Merchant Risk Council, and was a

is available, but this also complicates a number of things, including

Board Member of the Gamers Safety Alliance.

the merchant checkout experience, so these are some obstacles

In 2014, Mark co-founded TokenID, a start-up

that will need to be overcome in order to move forward. And, should

in the tokenization security space with patent-

each be open to the idea, alternative payments and funding from,

pending technology, and in 2011 he co-founded

perhaps, bitcoin wallets could be a trend for the future, but only

the Plug-In Network in Europe. He also has a

time will tell.

patent pending in the biometric payment space.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

99

CROSS-BORDER ECOMMERCE
RESEARCH SECTION
THE COUNTRY REPORTS CAN BE DOWNLOADED FOR FREE VIA THE PAYPERS
The Paypers, in close collaboration with the Cross-Border Ecommerce Community (CBEC), a strategic
initiative started by Payvision, PAY.ON, ACI Worldwide and WorldItLawyers has launched a new section
called Cross-border Ecommerce Research.
Through The Paypers, the CBEC enables Merchants, Payment Service Providers, ISOs and Acquiring
Banks to access country and regional ecommerce facts, figures and insights - valuable content about
mature and developing markets that can support strategic decision-making. The obstacles which hinder
cross-border expansion are explored, and the payment methods, ecommerce law, online fraud and risk
issues that affect individual countries are addressed.
The newly introduced section currently offers Cross-border ecommerce Reports & Infographics for
major countries from all over the world. Research consists of country-specific Ecommerce facts & figures,
mature and emerging markets, preferred payment methods, payment service providers, risk and fraud as
well as ecommerce legislation & regulation.
The section will be continuously updated with all the major and emerging ecommerce countries.

Cross-border ecommerce is a topic of interest to merchants across the globe. There is


much to play for, but the challenges are also significant and this initiative will help merchants
to gain a better understanding of the countries and payment environments into which they
are seeking to expand. The contributing companies bring complementary experience to the
table and the initial outputs combine a wealth of data and insight that isnt available in one
place anywhere else. I salute the companies involved in bringing this together
Johannes Ditterich, CEO Limango - Germany's leading web merchant, and part of Otto Group

THE AFRICAN
QUEST FOR A
COMPETITIVE
ECOMMERCE
MARKET

Africa Internet Group


The Challenges Facing Ecommerce Companies in Sub-Saharan Africa
We embrace this complexity because its representative of

Different markets require different solutions

the way people consume. The key is to adapt, not impose,

Adapting to new consumer trends is a daily challenge. Africa Internet

a pre-established model.

Group (AIG) swiftly arrived at the following conclusions: first, that


people in Africa have the same, if not greater, expectations of

Africa has been a recent entrant onto the radar of ecommerce

service as customers in the US or Europe. Second, that when

professionals. There has been a shift in western perception of

African consumers come online, they do so in all channels

the continent - companies no longer write it off as a land that is

simultaneously. Finally, because of the lack of trust, the majority

underdeveloped, lacking infrastructure and unworthy of investigation,

of business in Africa is still cash-on-delivery based. Furthermore,

but instead, have begun to understand the vibrant and exciting

the web penetration is on the rise in these regions, but still low

nature of the nation, and to realise the potential of the rich

and a limited home postal delivery network hampers ecommerce

economic growth, booming demand for consumer goods, growing

penetration.

middle class and rising mobile and internet penetration rates for
ecommerce. While in the US there are roughly 400 consumers

Trust must be earned

per offline retail outlet, in Africa there are about 60,000. Smart

A fundamental issue faced by ecommerce companies in Sub-

and easy-to-use ecommerce solutions are taking on the challenge

Saharan Africa is one of trust. Even in markets accustomed to

of answering these new consumer needs easily and efficiently.

ecommerce, companies must work to assure consumers that their

Developing economies are expected to account for nearly 40%

payments are safe. Unsurprisingly, there is a still greater wariness

of global B2C ecommerce by 2018, with the Asia Pacific region

in emerging markets. One way to counter this is to provide some

number.1, while the B2C share of developed countries will fall to

human interface, at the ordering, waiting, or reception stage of

about 60% in 2018, from more than 70% in 2013. Why is the African

ecommerce. Cash-on-delivery payments have been particularly

ecommerce sector taking off that slowly?

effective as they allow both product-testing to consumers


satisfaction and easy returns. Care must also be considered to
make consumers feel as safe as possible online, by displaying
prices in correct local currencies, using local languages on
ecommerce websites and build proximity confirming order and
delivery by phone.

Mobile payment: the new future


Closely linked to gaining consumers trust is the provision of
payment methods that consumers feel comfortable with. There has
historically been limited access to financial services in Sub-Saharan
Africa. Although the increasing popularity of mobile-enabled
e-money is beginning to change this, physical payment methods,
such as registering a code at a local store to make a payment or
Figure 1: Global ecommerce sales and online buyer penetration in
2013, eMarketer, 2013

cash-on-delivery options, are crucial. Ecommerce companies need


therefore to be open to a range of payment forms and flexible
to changes that take place as Sub-Saharan Africa becomes
increasingly online.

102

ONLINE PAYMENTS MARKET GUIDE 2015

Africa
Internet
Group

Sacha Poignonnec
co-CEO

Africa Internet Group

Bringing the online experience to the people


Though undoubtedly on the rise, there is still much that can be
done by ecommerce companies to increase their client pool by

About Sacha Poignonnec: Sacha has

accelerating internet access. One way of doing this is to use

overseen the successful launch and expansion

mobile devices as a portal to the internet. Jumia, for example, on

of 10 companies in over 30 African countries.

noticing that 107 million Nigerians were not able to access the

Previously, he worked at accounting company

internet, launched the Direct Sales initiative, which consists of a

Arthur Anderson and his own financial advisory.

team of 25,000 agents visiting more remote villages with tablet

Sacha holds a Master's degree from EDHEC

devices, enabling people to order online. Promoting affordable

Business School.

mobile sales and even sponsoring infrastructure developments


are further steps that ecommerce companies can take to increase

About Africa Internet Group: AIG, Africas

their possible reach.

leading internet platform, promotes sustainable


online growth that benefits both businesses and

Delivery across the continent is a logistical issue

consumers. The group provides easy-to-use

Maybe, the greatest challenge for ecommerce companies delivering

services and smart solutions across the African

goods is that of infrastructure and logistics. Africa is larger than

internet sector. AIG is invested in furthering

the US, Europe, China and India combined, and has varying levels

regional entrepreneurship and innovation

of infrastructure. Even with existing delivery providers, the level

through a passion for Africa, its culture and its

of customer expectation can barely be met. Many destinations

people.

are so remote that they can only be reached with great difficulty.
As Africa Internet Group (AIG) oversees an ecosystem of 10

www.africainternetgroup.com

companies in over 30 countries, this has been a regular problem.


In order to overcome the hurdle, AIG has set up AIG Express, its
own logistics company. AIG-Express, a delivery platform for online
vendors, enables international brands to enter Africa the safer way:
via online retail.
If ecommerce companies successfully address the issues outlined
in this article, they will gain access to a market with great
potential. The creativity, logistical thinking and flexibility required
to make ecommerce ventures in Sub-Saharan Africa successful
simultaneously make it a deeply rewarding and stimulating area in
which to proceed.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

103

Visa Inc.

Visa has a clear strategy to proliferate electronic payments and financial inclusion in Africa. The interview sheds light
on some aspects of this strategy and direction

Africa is currently undergoing a digital payments

We work with all stakeholders to provide insights, expertise and

transformation, mainly because markets like Nigeria

assistance wherever possible. We work with our clients, banks,

and South Africa support ecommerce via mobile-

in all markets to avail the products and services needed to

based online and offline payments. Why do you think

ecommerce and we do help in standardising practices as per the

that the mobile channel is the most convenient for

guidelines governing our practices. Ecommerce is transforming

the African consumer?

and Visa will continue to bring together innovative leaders from

The level and percentage of mobile penetration in Africa and the

across industries, such as device manufacturers, financial

Middle East is one of the highest in the world, a perfect conduit

institutions, merchants or developers in payments and commerce

for financial inclusion. Based on the Mobile Economy report

ecosystem, to deliver the best new payment experiences.

2013 by GSMA , emerging markets are the major engines of


mobile connection and subscriber growth channels. In particular,

What are the main impediments related to cross-

Asia Pacific will add nearly half of all new connections until 2017

border ecommerce development which need to

(1.4 billion) and will remain at just under 50% of both global

be addressed by market players like PSPs and

connections and subscribers. Latin America and Africa, combined,

merchants, as well as MNOs?

will add the next 20%, representing 595 million new connections.

Collaboration between Visa, banks, MNOs and merchants is key


to deliver the most successful user/cardholder experience. On one

Mobile represents a new horizon for payments and the advent of

hand, collaboration between Visa and the banks is our day-to-day

digital technologies created entirely new categories of commerce,

business in order to avail innovative products and services to our

such as ecommerce and mobile commerce, and has also created

cardholders.

new ways to make purchases in the physical world, such as


tapping an NFC-enabled phone or wearable, scanning a QR code

MNOs are also considered a key partner given their outreach

or simply clicking a button. As these and other new technologies

especially in geographies with higher mobile penetration percentages

are adopted by consumers, Visa will continue to innovate in

amongst unbanked population. We believe that bridging the

payments so everyone has access to simple, convenient and safe

stakeholders through VisaNet can yield significant results in terms

ways to pay. Whether in a store, online or using a mobile phone,

of access, insights and security. This collaboration should not

Visa will continue to be the engine of commerce, making it as easy

be limited to products and services, but should also extend to

to pay on any device as it is to swipe a card.

awareness. In all geographies, we work with our partners to increase


the level of awareness of cardholders and unbanked population

In terms of cross-border ecommerce, what are the main

through activities designed to highlight the benefits of electronic

impediments which need to be addressed by local

payments, ecommerce and innovations in the payment sphere.

governments say, for example, in countries like Algeria,


a big market with potential in the North of Africa?

Visa provides payment options that help merchants build their

Conceptually, cross-border ecommerce requires legislations,

businesses. By accepting Visa, merchants of all types and sizes

infrastructure in terms of internet penetration rate, adoption of new

benefit from guaranteed payment, fast transactions, protection from

technologies, either by banks or by consumers, certain degree of

theft and fraud, greater customer satisfaction and the potential for

maturity on the merchant side and education to the cardholder on

increased sales.

the benefits and possibilities.

104

ONLINE PAYMENTS MARKET GUIDE 2015

Mohamed Touhami
El Ouazzani

Collaboration between Visa, banks,


MNOs and merchants is key to deliver
the most successful user/cardholder
experience

General Manager
for Morocco and
Francophone Africa
Visa Inc.

Visa works constantly to understand merchants evolving needs

About Mohamed Touhami El Ouazzani: As

and to deliver solutions that help them grow and better serve their

General Manager for Morocco and Francophone

customers.

Africa at Visa, El Ouazzani is responsible for


the growth and development of the companys

In your opinion, which are the most promising markets

business in these markets and for pioneering

(hotspots) for cross-border ecommerce development

new opportunities in Francophone Africa.

in the Francophone Africa?


Africa represents great potential. When you look at Senegal, DRC,

About Visa Inc.: Visa is a global payments

Ivory Coast and Cameroon, you find countries that are picking up

technology company that connects consumers,

in terms of adoption and awareness in addition to efforts to create

businesses, financial institutions and governments

communities that are aware of the benefits of ecommerce.

in more than 200 countries and territories,


enabling them to use electronic payments

Visa is working closely with financial institutions in those markets

instead of cash and cheques. Visa provides

and has launched a marketing campaign to educate cardholders

processing services to our financial institution

and the entire population within these geographies on the benefits

clients through VisaNet.

of electronic payments and ecommerce. As a global payments


technology company, we see one of the most valuable contributions

www.usa.visa.com

we can make as helping to bring more people into the formal financial
system. We do so by creating pathways to financial inclusion for
the financially underserved via our products, services, technology
and payments expertise, financial literacy tools and resources and
our strategic partnerships.

For the second part of the interview please click here.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

105

hellofood Africa
Mobile Internet Is the Future of the African Ecommerce Market

Africa is a promising environment for ecommerce companies,

Equally, adaptations made by electronics and phone producers

as recent years have demonstrated. One development has had

to the particular needs of African mobile consumers, such as

a particularly big impact: mobile internet. Emerging markets,

Samsungs phone with multiple SIM card openings to enable

including many African countries, are experiencing an astronomical

users to always have the best connection, make the mobile

rise in mobile phone usage (mobile internet). This promises a bright

phone market increasingly attractive to African consumers.

future for ecommerce and mobile payment methods.

These trends have convinced young Africans to have their first


online experience on a mobile device rather than a computer.

An increasingly young population

This has a great impact on the African ecommerce market, as it

Africas population is one of the fastest growing in the world.

lends a great importance to the opportunities mobile internet can

Today, the total population is 1.13 billion, expected to almost

provide.

double by 2050, leading to an increasingly young population.


According to Unicef, half of the overall population of Africa will be

Mobile payment methods provide opportunities for

under 18 years old within the next 35 years.

newly created businesses


A notable impact, triggered by increased mobile phone penetration
on ecommerce, is mobile payment. The mobile device has long been
more than the portable telephone it once was, and has developed
into an all-rounder, allowing users to call, text, take photos and
videos and, since the introduction of internet smartphones, have
access to financial services. This is of particular value in Africa.
According to the Development Research Group of the World Bank,
only 24% of adults in Sub-Saharan Africa and 18% of adults in the
Middle East and North Africa have actual bank accounts, due not to
a lack of demand, but to a lack of infrastructure and access. Mobile

Figure 1: Mobile internet users in Africa reflect the very young


population, OnDevice, 2014.

phones are changing this situation: anyone with an internet phone


can access a bank account. 52% of the worlds mobile money
services can already be found in Sub-Saharan Africa, with mobile-

Corresponding to the rapid growth and rejuvenation of the

money accounts outnumbering actual bank accounts in several

population, Africa is experiencing a prompt increase in mobile

African countries, including Tanzania and Uganda (GSMA

phone usage. Again, the numbers are exploding. In June 2013, there
were around 650 million mobile phone users across the continent.

Mobile Money for the Unbanked 2013). Access to mobile banking

That is more than in the US or in Europe. Solely in the Sub-Saharan

is made not only by banks, but also by many startups focusing on

region, mobile phone penetration is projected to rise from 52% in

mobile-enabled e-payment. In the Ivory Coast alone, 66.3% of the

2012 to approximately 79% in 2020. According to a TA Telecoms

population has access to digital mobile money service providers

report, penetration has already passed 80% in Africa. This can be

while, in Africa, the number of active mobile-money customers has

attributed to both the growing tech-savvys high demand for mobile

increased by more than 240% in one year, reaching approximately

phones and to the steadily decreasing prices of mobile phones,

4.6 million in 2014. Kenya is leading this change, with a mobile

especially smartphones, making them affordable for the masses.

payment penetration of 58%.The potential of this development has


naturally long been recognised by telecommunication companies
and banks.

106

ONLINE PAYMENTS MARKET GUIDE 2015

Joe Falter
CEO

hellofood Africa

SENEGAL

The most notable reaction to it is M-Pesa, which was launched


by mobile communications providers Safaricom and Vodacom in
Kenya in 2007. Since then, it has become the most widespread

About Joe Falter: Prior to founding hellofood

mobile payment provider in emerging markets and has expanded

Africa, Joe has led startups in food retail and

to other countries and even continents.

ecommerce and worked as management


consultant for McKinsey in London. He holds a

New payment methods still face a general lack of trust

degree in Government and Economics from the

Despite, or possibly, because of, this quick dissemination of

London School of Economics.

mobile payment methods, Africans in general are still skeptical


about this new development. The reason for this is a general

About hellofood Africa: hellofood enables

reluctance to change, and people are not comfortable with leaving

restaurants in 11 countries to become visible

the cash culture they are used to. Moreover, the mobile payment

in the online and mobile world. For consumers,

infrastructure remains problematic in most countries. Although

hellofood offer the convenience to order food

companies provide all standard security measures as PIN-secured

online and the widest gastronomic range, from

text messages, most people do not trust the process due to the

which they can choose their favorite meal on

aforementioned reasons. Interestingly, distrust is focused on

the web or via the app.

mobile payment service providers rather than external hackers


stealing the transferred money. This might result from the general

www.hellofood.com

lack of trust in big companies and corruption issues.


There are still obstacles to overcome for ecommerce companies,
most notably in terms of keeping mobile payment secure and
gaining the populations trust in its reliability. However, as the
current numbers and growth rates show that mobile internet is at
the center of African ecommerce already, and will become of even
greater in importance in the future.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

107

Jumia
What Does It Take to Bring Ecommerce to the Next Level in Sub-Saharan
Africa?
While countries like South Africa, Nigeria and Kenya profit

Already, companies such as Jumia, together with Africa Internet

from vibrant economies, infrastructure still remains a barrier in

Group, are developing their own distribution methods, called AIG-

e-commerce. This combined with the sheer size of the continent

Express, to work with the lack of infrastructure in the Sub-Saharan

means that many companies struggle to reach remote delivery

countries.

locations.

A booming mobile scene


On the other hand, in most of Africa, increasing internet access

Ecommerce businesses rely on the internet: an awareness of

is changing the commercial landscape. McKinseys iGDP ranking

the limitations that exist in this space is crucial. While the rate of

identifies the internets contribution to the overall GDP; Africas

desktop usage is slowly climbing, the strongest growth is seen

iGDP is expected to rise from 1.1 percent to at least 5 to 6 percent

in the mobile space, and given that the local infrastructure can

within the next ten years. This will place Africa among todays

be extremely unreliable and at times unavailable, the stability

leading iGDP countries, along with the United Kingdom and

and accessibility of mobile networks means that the number of

Sweden. Driving this development are urban areas, where internet-

subscribers will only continue to grow. As a result, Jumia, for

capable devices are already available to half of the population.

example, has put a specific focus on extending their mobile


capabilities, with their entire product catalogue currently available

Some retailers are already adapting to the growing mobile

to smartphone users, via mobile website or app. While growth of

ecommerce trend by using apps such as WhatsApp to improve

the traditional online infrastructure will continue, the key to this

customer service. It is predicted that 10 percent of all retail activity

market is the mobile consumer.

in Africa will be conducted online by 2025, and mobile shopping is


already the norm. Companies looking to bring ecommerce to the
next level in Africa need to consider Africas increasingly young,
tech-savvy, brand conscious and mobile-using middle class in
their approach to the continent.

Investment in logistics and infrastructure is


fundamental
Africa's ecosystem is a living and continuously developing
organism. Every company, above all in the ecommerce field,
must embrace the complexity of its markets. The primary aim is
to support the creation and expansion of new services to meet
the evolving needs of consumers and make their day-to-day lives
easier, establishing processes that fuel economic growth.
The standard of ecommerce in Africa is even higher than that

Figure 1: Traffic Statistics Jumia Cte dIvoire, in 2013, Jumia

observed in Europe or the US. Delivery, logistics and customer


service must be productive and efficient from the moment

Build trust with your customer

a company launches. Ecommerce companies must develop

Developing a successful ecommerce company requires

effective, consistent and rapid delivery services, and be as user-

consideration on a broader scale than simply logistics. For any

friendly as possible, adapting to challenges as they arise.

business to establish itself, repeat custom is extremely important.


Companies must provide easy returns, easy-to-make repeat

108

ONLINE PAYMENTS MARKET GUIDE 2015

Jrmy Doutt
MD

Jumia

purchases, and an easy-to-use website. Beyond this, rewards


for repeat custom and good response to customer feedback can

About Jrmy Doutt: The author worked at

attract customers back.

McKinsey and UBS Investment Bank before


Alternative payment methods are on the rise

joining Jumia in 2012. He holds a Bachelor in

Preferred payment methods vary across Sub-Saharan Africa, and

Business from ESSEC Paris and a Master of

the landscape is changing fast; in such an environment, what

Business Administration from Harvard Business

is really on the rise is electronic payment. Only two months after

School.

Absa - South Africas largest retail bank - added a mobile app to


money transfer service CashSend in April 2013, the transaction

About Jumia: Jumia aims to facilitate the lives

value had reached the services total transaction value for the

of customers and the communities they belong

year before; MasterCard last year in a pilot scheme intended to be

to. The company is active in 12 countries,

further expanded distributed 13 million identity cards with electronic

developing into the continents leading online

payment capacity to Nigerian citizens, again increasing access

shopping destination. The companys easy-

to electronic payment; and population access to banking and

to-use service consists of an open business-

microfinance in the Ivory Coast has increased from 21.8% at the

to-consumer platform which allows retailers

end of 2013 to approximately 66.3% due to digital e-money players.

to reach Africas vast and growing consumer


market.

With this in mind, ecommerce companies need to offer a range


of options and to be prepared to adapt as the market changes.

www.jumia.com

Cash payments are key for the short term, while trust of and access
to online payments remain low, but if the rate of uptake of electronic
payment for some areas continues it will soon crucial that an
ecommerce company includes these payment options to effectively
cater for consumers. As noted before, certain payment methods
may be prevalent in one African country but unpopular in another;
for example, while mobile payment has been enthusiastically
adopted in Kenya, it is three times less likely that a Tanzanian will
consider mobile payments safe, and as such Tanzanians are less
likely to warm to a company offering predominantly mobile payment
options.
In conclusion, we must work on the assumption that ecommerce in
Sub-Saharan Africa is here to stay. It is vital to plan for the long-term
and to delivery quality in all aspects of each venture, establishing
ecommerce as a safe and easy-to-use service part of customers
everyday lives.

KEY TRENDS AND DEVELOPMENTS IN THE ONLINE PAYMENTS & ECOMMERCE SPACE

109

COMPANY
PROFILES

Company

Acapture
Acapture provides global card acquiring, more than 50 alternative payment methods, more than
20 ecommerce platform plugins, POS, dispute handling and over 150 transaction currencies to
merchants and PSPs (white labelled). Acapture also supports reporting customization capabilities,
which can be initiated by the PSP or merchant. For more information about Acapture visit:
www.acapture.com.

Website

www.acapture.com

Keywords for online profile

PSP, acquirer, alternative payments, POS, cross-border, multi-currency, omnichannel

Contact

dmartin@acapture.com, +31 2079 423 00 Netherlands

Geographical presence

New York, Utah, San Francisco, Madrid, Paris, London, Berlin, Singapore, Tokyo, Hong Kong and
Macau, Auckland

Market segment(s)

Online payment processing, cross-border ecommerce, ecommerce, digital goods

Active since

2014

Service provider type

Collecting payment service provider

Payment methods
Credit cards

AmEx,VISA, CB, JCB, MasterCard, Diners, Discover, AirPlus

Debit cards

Maestro, (e)Maestro, Visa Electron, Carte Bleue, Visa Debit, China UnionPay, Visa CPC, Debit
MasterCard, Carte Bancaire, China UnionPay

Pre-paid cards

paysafecard

Online banking

iDEAL, SofortUberweisung, Giropay, Prezelewy 24, Poli, PostFinance, Trustpay, Trustly, EPS

E-wallet

Alipay, Yandex, PayPal, Onecard, Mercadopago

Mobile / SMS / IVR

Yes

Alternative payment methods

Yes

Offline

POS

Connected companies (#)

Undisclosed

Companies PSP is connected to

Acapture is connected to numerous alternative payment schemes, acquirers, banks and


ecommerce platforms.

Settlement currencies (acquirers)

AUD, CAD, CHF, DKK, EUR, GBP, HKD, JPY, NOK, NZD, PLN, SEK, SGD, USD

Services
Unique selling points

Acapture designs payment solutions for PSPs and ecommerce merchants looking to expand their
business internationally. It handles accounts receivable and accounts payable, providing global
card acquiring, 18 ecommerce platform plugins, dispute handling, consolidated reporting and the
ability to handle more than 50 of the most popular alternative payment methods.

Core services

Global card processing, domestic global acquiring, alternative payment methods, ecommerce
platform plugins, tokenization, underwriting, fraud/risk monitoring, interchange optimization, multicurrency processing, innovative payment solutions, accounts payables, accounts receivables.

Pricing

Blended rate, Interchange Plus

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

IP geolocation, multi-merchant purchase history, global validation checks, Verified by Visa,


MasterCard SecureCode, AVS, velocity checks, data validation, geographical checking, parameter
format checking, transaction limit checking, geo IP-origin check, black/white list), device
fingerprinting, risk scoring, plausibility checks, correlation detection, managed fraud services.

Fraud prevention partners

In-house and third party solutions.

Credit management (services)

External but integrated to platform.

Other services

Tokenization, hosted payment pages, currency conversion, 24/7 support across the globe,
Interchange optimization and consultancy.

Third parties

ControlScan

COMPANY PROFILES

111

Technology

112

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Single unified REST based API for omnichannel transaction processing. Acapture APIs are well
structured and follow a developer-friendly, object-oriented design. These APIs are designed to
have predictable, resource-oriented URLs and to use HTTP response codes to indicate high level
API errors. APIs address all the aspects of payment industry standards and eliminate the burden
of security implementation, tedious integration and status polling for developers. One time simple
integration of a few standard APIs opens up the door to worldwide payment options.

Security

PCI-DSS compliant

ONLINE PAYMENTS MARKET GUIDE 2015

www.acapture.com

One solution,
no borders
The best payment platform for
merchants with international ambitions

International
transactions simplified

Acapture Global Ecommerce Payment Solutions


Cross-border payment solutions & expertise

FROM HODGEPODGE
TO HARMONY.

BOOST CUSTOMER SATISFACTION WITH


A CONSISTENT PAYMENTS EXPERIENCE
ANYTIME, ANYWHERE.
SEE HOW WITH

omni.aciworldwide.com

Company

ACI Worldwide
ACI Worldwide is the leading provider of secure, omni-payment systems to retailers globally. Our
Universal Payment (UP) Retailer Payments solutions support a variety of in-store, ecommerce and
digital channels, providing the framework for retailers to create and manage a customer-centric
experience. ACIs advanced fraud prevention and payment data security tools reduce risk while
protecting the bottom line. ACI powers electronic payments and banking for more than 5,600
financial institutions, retailers, billers and processors globally.

Website

www.aciworldwide.com

Keywords for online profile

payment systems, payment gateway, PCI, ecommerce, alternative payments, omni-channel, fraud
prevention, merchant services

Contact

http://www.aciworldwide.com/who-we-are/contact-us.aspx

Geographical presence

North/Latin America, Europe, Middle East/Africa, Asia/Pacific

Market segment(s)

Auction, gambling, gaming, retail, convenience/fueling, grocery, merchant services, travel, other

Active since

1975

Service provider type

Payment switch provider, ecommerce fraud prevention provider, omni-channel payment solutions

Payment Methods
Credit cards

Visa, MasterCard, American Express, Discover, Diners, JCB, UnionPay, Carte Aurore, Kpkort,
UATP (in 2016)

Debit cards

Visa, Visa Electron, MasterCard, Maestro, Carte Bleue, Dankort

Pre-paid cards

Proprietary system, third party systems, Ukash

Online banking

No

E-wallet

PayPal, Amazon Payments, MasterCard MasterPass, AliPay, Skrill, Mazooma

Mobile/SMS/IVR

Mobile, IVR

Alternative payment methods

PayPal, PayPal Credit, AliPay

Offline

Yes

Connected companies (#)

Over 100

Companies PSP is connected to

N/A

Settlement currencies (acquirers)

More than 150 including USD, EUR, GBP, AUC, CAD, CNY, HKD, INR, JPY, KRW, MAD, NZD, PKR,
SAR, SGD, VND, YAR

Services
Unique selling points

ACI is the only global company that can deliver the breadth of retailer specific payments solutions
and provide the necessary security and fraud prevention, business functionality, and integrated
value add applications required in todays competitive market. Coupled with the ability to host the
solution in trusted, industry leading hosted data centers, ACI delivers the protection the retailer
needs without sacrificing business responsiveness while achieving industry-leading service levels.

Core services

Payment switch provider, ecommerce fraud prevention provider, omni-channel payment solutions.

Pricing

For current pricing, contact us at: www.aciworldwide.com

Collecting payments

Yes

Distributing payments

No

Fraud prevention (measures)

Capabilities include: ecommerce fraud detection and prevention, device fingerprinting,


IPgeolocation, machine learning capabilities, neural models, multi-merchant purchase history,
global validation checks, Verified by Visa, MasterCard SecureCode, velocity checks, persistent
cookies, data validation, geographical checking, parameter format checking, transaction limit
checking, risk scoring, geo IP-origin check, black/white list, etc.

Fraud prevention partners

ThreatMetrix, iovation, Neustar Targus, Whitepages Pro, Tradebeam and Perseuss

Credit management (services)

N/A

Other services

N/A

Third parties

N/A

COMPANY PROFILES

115

Technology

116

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

iFrame, Hosted Payment Page

Interface

SOAP, XML, Web services, multiple APIs

Security

HTTPS, TLS 1.2

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Adyen
Adyen is the only payments solution that has built a completely new set of rails connecting to the
card schemes and local payment methods, and the only solution to accept ecommerce and pointof-sale payments in a single platform. Due to this, Adyen is becoming the go-to solution for global
merchants including Mango, ONeill, Crocs and Superdry.

Website

www.adyen.com

Keywords for online profile

PSP, online payments, payment processing, multi-currency, PCI, ecommerce, alternative payments,
acquirer, gateway, omnichannel, point-of-sale

Contact

sales@adyen.com

Geographical presence

Global

Market segment(s)

Active in all industries

Active since

2006

Service provider type

Payment service provider, payment gateway, alternative payment method, acquirer, processor,
issuer, bank

Payment methods
Credit cards

AmEx, VISA, CB, JCB, Visa, MasterCard, Diners, Discover, UATP, AirPlus, Kalibra, PostePay,
SanPaolo, Cofinoga, Aurore, Delta, CUP ExpressPay, etc.

Debit cards

Carte Bleue, Dankort, Giropay, Maestro, PostePay, Visa Debit, UPOP, Carte Bancaire

Pre-paid cards

paysafecard, PostePay, Cash ticket, Ukash, PayPal, local national brands

Online banking

Yes

E-wallet

PayPal, Alipay, DOKU Wallet, Neteller, Moneta, Webmoney, MercadoPago, Dineromail, CashU

Mobile / SMS / IVR

Fully hosted mobile solution for iOS, Android and other platforms, supporting all payment methods
Global coverage for SMS and IVR through partners.

Alternative payment methods

Over 250 payment methods supported worldwide.

Offline

Bank transfers in over 30 countries, a selection of local voucher/cash-on-delivery payment


methods.

Connected companies (#)

None, Adyen payments platform is developed and managed in-house and does not rely on
thirdparties.

Companies PSP is connected to

None, Adyen is a standalone, all-inclusive payments platform which handles the payment flow endto-end.

Settlement currencies (acquirers)

AUD, CAD, CHF, CZK, DKK, EUR, GBP, HKD, JPY, NOK, NZD, PLN, SEK, SGD, USD, ZAR

Services
Unique selling points

Adyen provides a single platform across online, mobile and point-of-sale channels, where payment
gateway, acquiring services and risk management are all integrated on the same infrastructure. By
being both an acquirer and a full-service PSP, Adyen maintains a completely unique position in the
industry.

Core services

Payment technology provider for ecommerce, POS and mobile, acquiring, risk management,
reconciliation, reporting

Pricing

Maximum per transaction fee of EUR 0,10. No setup or maintenance costs. Pricing for cards on
blend fees or interchange and basis.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

RevenueProtect: Integrated risk prevention solution with velocity checks, referral lists, persistent
cookies, device fingerprinting, proxy piercing. All checks are fully configurable and extendable.
Automated system proactively advises on optimal risk settings based on historic transaction data.
The keystone feature ShopperDNA uses device fingerprinting and user-attribute linking to identify
and track fraudsters behind transactions.

COMPANY PROFILES

117

Fraud prevention partners

Adyen provides built-in solutions, Adyen RevenueProtect, and Adyen RevenueProtect+. It does not
have external risk partners.

Credit management (services)

For more details, please contact the company.

Other services

Payment routing; dynamic 3D-Secure; fully customizable payment pages; recurring and one click
payments using tokenization; native mobile payment pages; pay out; vouchers; POS solution for
face-to-face payments.

Third parties

None, everything is developed and maintained in-house.

Technology

118

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Web services, SOAP, XML. Reporting in CSV, RSS, XML, PDF and Excel. POS SDK available for
iOS, Android.

Security

Adyen is fully PCI Level 1 compliant, conforming to all relevant security mechanisms.

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Allied Wallet Inc.


Allied Wallet Inc, founded in 2001, offers top-of-the-line international payment processing services
in 196 countries across the world with the ability to accept 164 currencies and settle in 25. With
SHA-256 PCI Level-1 compliance and fraud scrub-technology, Allied Wallet is the most secure and
comprehensive choice for global processing.

Website

www.alliedwallet.com

Keywords for online profile

payment gateway, PSP, online payment, payment processing, multi-currency, PCI, ecommerce,
alternative payments

Contact

aalmeda@alliedwallet.com, sales@alliedwallet.com

Geographical presence

Africa, Asia/Pacific, Australia, Europe, North America, South America

Market segment(s)

Retail, Travel, Technical Support, Legal Services, Education, Web Development, Electronic
Equipment, Forex

Active since

2002

Service provider type

Payment service provider, payment gateway, acquirer, processor, issuer, alternative payment
method.

Payment methods
Credit cards

AmEx, CB, JCB, Visa, MasterCard, Diners, Discover, Maestro, GiroPay, Klarna

Debit cards

Maestro, Giropay, Carte Bleue, Visa Debit, China UnionPay, Debit MasterCard, Carte Bancaire,

Pre-paid cards

Allied Wallet uses pre-paid cards to pay out merchants, allowing them the ability to transfer
balances between cards for affiliate payouts or peer-to-peer transactions, making transfers
between the linked bank account and the card, and for every-day purchases.

Online banking

No

E-wallet

Allied Wallet eWallet

Mobile / SMS / IVR

Mobile in 196 countries

Alternative payment methods

No

Offline

More information available upon request.

Connected companies (#)

More information available upon request.

Companies PSP is connected to

More information available upon request.

Settlement currencies (acquirers)

25 settlement currencies.

Klarna, Sofort

Services

120

Unique selling points

Allied Wallets unique system for deterring fraudulent transactions across their various platforms
provides ease of mind to online merchants. The SHA-256 PCI Level-1 compliant gateway ensures
that all payments are secure at all times.

Core services

Online payment processing, mobile payment processing, pre-paid debit cards.

Pricing

Rates start at 1.5%. For current pricing, contact a member of our sales team at
sales@alliedwallet.com.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

IP geolocation, multi-merchant purchase history, global validation checks, Verified by Visa,


MasterCard SecureCode, persistent cookies, data validation, geographical checking, parameter
format checking, transaction limit checking, risk scoring, geo IP-origin check, black/white list, etc.

Fraud prevention partners

G-2, WebShield, in-house Fraud Scrub Technology

Credit management (services)

Receivables management, online void and refund, purchase on credit, payment guarantee, etc.

Other services

More information available upon request.

Third parties

More information available upon request.

ONLINE PAYMENTS MARKET GUIDE 2015

Technology
Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

More information available upon request.

Security

HTTPS, SSL+

COMPANY PROFILES

121

STAY IN CONTROL
OF YOUR PAYMENTS

WE MAKE YOUR PAYMENT MANAGEMENT LESS COMPLICATED


AltaPay is a Danish Payment Management Company that

Regardless of where your business is located, AltaPay combines

provides eCommerce businesses with global payment pro-

IT and payment excellence with full end-to-end support services.

cessing solutions. We help you define and implement your

The process starts with a thorough analysis of your current

optimal payment solution by connecting you to a wide array

business model to find the most suitable payment strategy

of global and local financial institutions through the AltaPay

before we negotiate the best rates with financial partners and

platform.

assist with reporting, bookkeeping and technical support.

Take the first step to improve your


payment solutions at altapay.com

Company

AltaPay A/S
AltaPay is a leading payment management company providing ecommerce businesses with global
payment processing solutions. AltaPay helps clients define and implement optimal payment
solution by connecting them to a wide array of global and local financial institutions through the
AltaPay platform. AltaPay is a dedicated partner for payment related needs.

Website

www.altapay.com

Keywords for online profile

payment management, conversion, acquiring, technical support, uptime, financial institutions,


ecommerce

Contact

info@altapay.com

Geographical presence

North America, Europe, Middle East/Africa, Asia/Pacific

Market segment(s)

All major industries with a focus on retail

Active since

2008

Service provider type

Payment service provider, payment gateway, acquirer, alternative payment method, fraud detector,
point of sales, gift cards, technical development, bookkeeping, automated reconciliation, full
customer support.

Payment methods
Credit cards

AmEx, VISA, CB, JCB, Visa, MasterCard, Diners, Discover, UnionPay

Debit cards

Bancontact/Mister Cash, Maestro, Giropay, Maestro, Visa Electron, Dankort, Laser, Carte Bleue,
Visa Debit, UnionPay, Debit MasterCard, Carte Bancaire

Pre-paid cards

paysafecard

Online banking

Sofort, iDEAL, Prezelewy24, SampoBank, Swedbank, Nordea

E-wallet

PayPal, V.me, MasterPass

Mobile/SMS/IVR

Yes

Alternative payment methods

Yes

Offline

Klarna, PaybyBill, Point of Sales

Connected companies (#)

Multiple direct acquiring integrations and financial partnerships worldwide

Companies PSP is connected to

https://altapay.com/partners/our-partners

Settlement currencies (acquirers)

More than 100 currencies

Services
Unique selling points

AltaPays mission is to allow clients to gain control over their payments, get insights into
the complicated world of payments by creating transparency, enabling change, growth, and
global expansion. Alongside consultancy and transaction processing we automate all financial
reconciliation, resulting in reduced operational overhead and allows more efficient process to be
developed.

Core services

All aspects of Payment Management Financial, Technical, Commercial

Pricing

Prices and contracts are negotiated and handled by AltaPay on behalf of clients. Pricing depends
on clients payments needs and will be defined and agreed by both parties. More information about
our process at https://altapay.com/how-it-works.

Collecting payments

No

Distributing payments

No

Fraud prevention (measures)

Black/white list, data validation, IP geo-location, geographical checking, global validation checks,
MasterCard SecureCode, risk scoring, velocity checks, Verified by Visa to fraud prevention
(measures)

Fraud prevention partners

ReD, MaxMind

Credit management (services)

N/A

Other services

N/A

Third parties

N/A

COMPANY PROFILES

123

Technology

124

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

XML, ADAPT, Hosted

Security

HTTPS, PCI Level 1 compliant

ONLINE PAYMENTS MARKET GUIDE 2015

Company

arvato Financial Solutions


arvato Financial Solutions is a global and Europes third largest integrated financial service provider
and part of Bertelsmann. The company has around 7,000 employees in 22 countries, including a
strong presence in Europe, America and Asia, and offers flexible full-service solutions for the valueoriented management of customer relationships and cash flows.

Website

finance.arvato.com

Keywords for online profile

PSP, alternative payments, acquiring, fraud prevention, risk guarantees, PCI, online payment,
factoring

Contact

Jan Richard
janflorian.richard@bertelsmann.de

Geographical presence

North/Latin America, Europe

Market segment(s)

Physical goods, retail, digital goods

Active since

1835

Service provider type

Payment service provider, payment gateway, processor, alternative payment method provider,
factoring

Payment methods
Credit cards

AmEx, VISA, JCB, Visa, MasterCard, Diners, Discover, UnionPay

Debit cards

Vpay, VISA Electron, VISA Debit, Maestro, Dankort, China UnionPay Debit, Carte Bleue,

Pre-paid cards

paysafecard, Cash ticket, Ukash, AstroPay, Postepay, Moneysafe

Online banking

SOFORT, TrustPay, POLi, iDEAL, Nordea, Giropay, Przelewy24, 99Bill

E-wallet

PayPal, Alipay, Click&Buy, Skrill, QIWI, CashU, moneta.ru, Yandex, MasterPass

Mobile / SMS / IVR

MobilePay, Paii, Paybox, Kanzaroo, SMS in all European countries, IVR in USA and Australia.

Alternative payment methods

Yes, over 300 payment methods supported worldwide.

Offline

Bank transfer, a selection of local voucher payment methods.

Connected companies (#)

Acquirers, specialised fraud solutions, ecommerce platforms

Companies PSP is connected to

Please contact Arvato for a complete list of connected processors and acquiring banks worldwide.

Settlement currencies (acquirers)

More than 100 currencies.

MasterCard Debit, Cartes Bancaires, Mister Cash

Services
Unique selling points

Arvato provides an end-to-end-ecommerce solution across order management, shop management,


online marketing, customer services, warehouse, logistics and financial services by one company.
Special emphasis should be placed on the full del credere protection (risk takeover). Arvato
maintains a completely unique position in the industry.

Core services

Online payment processing, reconciliation, fraud and risk management, acquiring, accounting,
reporting, collecting services, accounting

Pricing

Pricing depends on clients payments needs and will be defined and agreed by both parties.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Adress identification (address validation, address verification), limit setting, monitoring, transaction
analysis, scoring, limit management, person identification, black/white/grey listing, velocity check,
device fingerprinting, manual order review.

Fraud prevention partners

arvato RSS, Cybersource

Credit management (services)

Purchase on credit, credit scoring, credit control, receivables management, online void and refund,
purchase on credit, payment guarantee

Other services

Tokenization, 3D-Secure (Verified by Visa, MasterCard SecureCode, CVC-Verification)

Third parties

COMPANY PROFILES

125

Technology

126

Direct connections

In parts

Batch processing

Yes

Per order processing

No

Merchant pages (direct model)

No

PSP pages (redirect model)

Yes

Interface

Web services, SOAP, XML (specifications available upon request)

Security

HTTPS, SSL+, PKI, PCI 3.0

ONLINE PAYMENTS MARKET GUIDE 2015

How can you easily increase


your checkout conversion rate and
your customers satisfaction level?
By offering simple and customer-friendly processes.

CONVENIENT
SHOPPING

INCREASED
CONVERSION

WOW, THATS EASY!

With our checkout-related services, we help you to increase the conversion rate whilst also
ensuring a convenient purchasing experience for your customers.
arvato Financial Solutions convenience in every transaction
nance.arvato.com

Company

Avangate
Avangate is the modern Digital Commerce provider that enables the New Services Economy,
helping Software, SaaS and Online Services companies sell their products and services via any
channel, acquire customers across touchpoints, increase retention, leverage smarter payments,
experiment on the fly and optimize their business in order to increase overall revenue. Avangates
clients include Absolute, ABBYY, Bitdefender, Brocade, FICO, HP Software, Kaspersky, Telestream
and many more companies across the globe.

Website

www.avangate.com

Keywords for online profile

Online payments, payment processing, multi-currency, ecommerce, digital commerce,


international, digital goods, merchant of record

Contact

Delia Ene, info@avangate.com

Geographical presence

North/Latin America, Europe, Middle East/Africa, Asia/Pacific

Market segment(s)

Software, SaaS, online services, cloud services, digital goods, financial services and identity
management, eBooks and self-publishing, technical support services, online legal services,
eLearning and online education, online backup and storage services

Active since

2006

Service provider type

Merchant of record, payment service provider, payment gateway

Payment methods
Credit cards

Visa, MasterCard, JCB, American Express, Diners Club, Discover/Novus

Debit cards

Visa Electron/ Maestro/ Eurocard, Postepay (Visa), Carte Bleue, Solo, (Alipay), iDEAL,
Dankort, Chinese Debit Cards, Barcode Santander, Giropay, CartaSI, China UnionPay

Pre-paid cards

Not Applicable

Online banking

directeBanking, DirectDebit UK

E-wallet

PayPal, Webmoney, Boleto Bancario, Konbini, Pay Easy (through Konbini), Pago Facil, QIWI

Mobile / SMS / IVR

Mobile responsive cart

Alternative payment methods

Trial Pay, PayNearMe, Konbini, Pay Easy (through Konbini), Pago Facil, CashU, Ukash

Offline

Wire/Bank Transfer, ACH/echeck, Check, Payment info by Fax, Purchase Order

Connected companies (#)

Not disclosable

Companies PSP is connected to

Not disclosable

Settlement currencies (acquirers)

EUR, GBP, USD, JPY and others available upon request.

Services
Unique selling points

In todays dynamic and constantly evolving software market, and considering there are many
ecommerce platform vendors and payment service providers, Avangate is the modern Digital
Commerce service that helps digital businesses launch new products and grow faster, maximize
revenue from every customer, and instantly conduct business in over 180 countries. Powered by
a proven cloud platform and global commerce expertise, Avangate frees digital business leaders
from the complexities of building and operating their own commerce infrastructure.

Core services

Complete commerce, including: ecommerce manager, subscription billing, channel manager,


affiliate network, global payments, professional services

Pricing

http://www.avangate.com/pricing/

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Automated risk scoring, IP geo-location checks, address checks, transaction amount checks,
velocity checks, Verified by Visa, MasterCard SecureCode, data validation, cross-platform pattern
recognition, whitelisting/blacklisting technology, region-specific fraud profiling

Fraud prevention partners

Not disclosable

Credit management (services)

N/A

Other services

Marketing services, Merchant Services, Managed Affiliate Services

Third parties

More information available upon request

COMPANY PROFILES

129

Technology

130

Direct connections

Yes (API)

Batch processing

No

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

SOAP, JSON-RPC, REST, web services

Security

HTTPS, PKI, PGP, Open SSL

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Chexx Inc.
Chexx Inc. makes sending payments a simple and cost effective part of your operations. We issue
real-money commissions, rebates and rewards on your companys behalf to beneficiaries around
the world. Chexx Inc. checks, local electronic payments and prepaid cards are easy to order,
quickly delivered, and appreciated by beneficiaries everywhere.

Website

www.chexxinc.com

Keywords for online profile

payout service, rebate service, refund service, payment disbursement, international payout service,
pay affiliates, pay panellists, pay commissions

Contact

Simon Venhuizen, Business Development Manager, North America, simon@chexxinc.com


Brian Weekes, VP Sales, Europe, brian@chexxinc.com
Stuart Ballan, Head of Sales, Middle East, stuart@chexxinc.com

Geographical presence

Vancouver, Canada; Shannon, Ireland; Tel Aviv, Israel

Market segment(s)

Affiliate payouts, online market research, pharmaceutical research, prize fulfillment, reverse
logistics, refund issuing

Active since

2000

Service provider type

Payment service provider, payout service

Payment methods
Credit cards

No

Debit cards

No

Pre-paid cards

Chexx Inc. issues both virtual and plastic prepaid cards in multiple currencies.

Online banking

No

E-wallet

No

Mobile / SMS / IVR

No

Alternative payment methods

No

Offline

Bank transfers in most European countries.

Connected companies (#)

More information available upon request.

Companies PSP is connected to

More information available upon request.

Settlement currencies (acquirers)

More information available upon request.

Services
Unique selling points

Single interface for all payment types and currencies; top up via single wire transfer in the currency
of your choice; fast disbursement to beneficiaries around the world; bank and non-bank payments;
domestic and international services.

Core services

Outbound Payment Processing: cheque issuing; electronic transfers; virtual and plastic prepaid
cards.

Pricing

Upon request.

Collecting payments

No

Distributing payments

Yes

Fraud prevention (measures)

More information available upon request.

Fraud prevention partners

More information available upon request.

Credit management (services)

No

Other services

QuickDraw Online payment portal allows beneficiaries to choose which payment method they
prefer while securely providing payment details.

Third parties

No

COMPANY PROFILES

131

Technology

132

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Raven Online, Raven API, QuickDraw Payment Selection Tool.

Security

All systems PCI compliant

ONLINE PAYMENTS MARKET GUIDE 2015

Company

cleverbridge
cleverbridge is a proven leader in ecommerce technology, services and expertise for global
software and subscription companies that serve consumers and businesses. For more than 300
clients, cleverbridge is a true extension of their teams, understanding each clients billing models,
markets, channels and specific ecommerce requirements.

Website

www.cleverbridge.com

Keywords for online profile

PCI, ecommerce, payment service provider, payment gateway, merchant of record, selling software
online, subscriptions, subscription commerce, recurring revenue, compliance, taxation

Contact

inquiry@cleverbridge.com

Geographical presence

North America, Europe, Asia/Pacific

Market segment(s)

Digital goods, digital services, software, cloud, SaaS

Active since

2005

Service provider type

Global full-service ecommerce provider, PCI, ecommerce, payment service provider, payment
gateway

Payment methods
Credit cards

AmEx, VISA, MasterCard, JCB, Discover

Debit cards

Maestro International, Visa Electron, Dankort Visa, Carte Bleue, Visa Debit, Alipay, Debit
MasterCard, Carte Bancaire

Pre-paid cards

N/A

Online banking

Real Time Bank Transfers Finland and Sweden, Sofortberweisung, iDEAL

E-wallet

PayPal, Alipay, WebMoney

Mobile / SMS / IVR

N/A

Alternative payment methods

Yes

Offline

SEPA Bank transfers, SEPA Direct Debit (Germany), Konbini (Japan), PayNearMe, International Wire
Transfers, Boleto Bancario, Purchase Order, Check

Connected companies (#)

13

Companies PSP is connected to

N/A

Settlement currencies (acquirers)

USD, EUR, JPY, GBP

Services
Unique selling points

cleverbridge was founded by experts with decades of experience in the ecommerce industry. Our
laser focus on software and cloud companies has resulted in unmatched expertise that addresses
the unique needs of this complex market. With hundreds of clients, we have a proven track record
of success for conquering clients evolving requirements for online sales.

Core services

Payment processing, integration/APIs, localization, subscription management, pricing


configuration, merchandising, reporting, channel management, security and compliance, fraud
prevention, customer support, affiliate management, email marketing services.

Pricing

For more details, please contact our sales team.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Real-time fraud prevention, proxy identification, device fingerprinting, IP geolocation, global


validation checks, velocity checks, persistent cookies, data validation, geographical checking,
parameter format checking, transaction limit checking, geo IP-origin check, trustlist, negative
database, rules based fraud system, real-time adaptability and customisation, in-house proprietary
solutions, chargeback management, analysis and reporting on historical data.

Fraud prevention partners

Third party providers are used for IP Geolocation, return debit prevention and e-mail validation.

Credit management (services)

N/A

Other services

N/A

Third parties

N/A

COMPANY PROFILES

135

Technology

136

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Web services, SOAP, REST, XML, JSON

Security

HTTPS, SSL+, PKI, Level 1 PCI compliant, SSLv3 and TLSv1, Full PCI DSS Level 1, SAS70 type II,
SSAE 16, CAN-SPAM and EU Safe Harbor compliance

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Computop the payment people


Computop is a leading global payment service provider (PSP) that offers compliant and secure
solutions in the fields of ecommerce, POS, m-commerce and mail order and telephone order.
The company processes transactions totalling USD 14 billion per year for its client network of
over 10,000 large international merchants and global marketplace partners such as C&A, Fossil,
Rakuten, Samsung and Swarovski. Computops comprehensive multichannel solution is geared to
the needs of merchants, banks and white label customers.

Website

www.computop.com

Keywords for online profile

payment service provider (PSP), multichannel payment, alternative payment methods,


multicurrency, fraud prevention, PCI solutions, tokenization, point-of-sale, mobile POS (mPOS)

Contact

Germany: +49 (951) 98009-22; sales@computop.com


UK: +44 (0) 203 755 3435; uk@computop.com
USA: +1 917 543 1630; usa@computop.com
China: +852 6738 6229 (Hong Kong); +86-186 0178 3373 (Shanghai); china@computop.com

Geographical presence

Europe, Asia, the Americas

Market segment(s)

Retail, travel/airline, gaming, gambling, events, pharmaceuticals, ticketing, content, digital


downloads, customized B2C solutions, B2B purchasing solutions

Active since

1997

Service provider type

Payment service provider (PSP)

Payment methods
Credit cards

American Express, MasterCard, VISA, CB, JCB, Visa, Diners Club, Discover, China UnionPay, Aura,
elo, Hipercard

Debit cards

Bancontact/Mister Cash, Carte Bleue, Carte Bancaire, China UnionPay, Maestro, (e)Maestro, Visa
Electron, Dankort, Laser, Delta, Visa Debit, Visa CPC, Debit MasterCard, PostFinance, Domestic
Debit Cards Brazil

Pre-paid cards

paysafecard

Online banking

Alipay, AstroPay direct, eps, giropay, iDEAL, PayU, POLi, PostFinance, Przelewy24, SafetyPay,
SOFORTberweisung/SOFORTBanking, TrustPay, Trustly

E-wallet

Alipay, amazonpayments, iPay Wallet, MasterPass, Paydirekt, PayPal, PostPay, QIWI, Skrill, Yapital

Mobile/SMS/IVR

Yapital QR code payments

Alternative payment methods

International direct debit, AstroPay Card, Barzahlen, BillPay, Bitcoin, Boleto Bancario, IKANO card,
Klarna, Klarna Checkout, PayByBill, Paymorrow, Payolution, Payprotect, RatePAY, teleingreso,
Ticket OnLine, Carte 4 Etoiles, Carte Helline, Carte Helline 4 Etoiles

Offline

QR codes, POS and Mobile POS, magnetic strip, online chip and PIN, offline chip and PIN for Visa
and Master Card.

Connected companies (#)

Acquirers, specialized fraud solutions, logistics partners, credit management, ecommerce platforms

Companies PSP is connected to

Please contact Computop for a complete list of connected processors and acquiring banks
worldwide.

Settlement currencies (acquirers)

More than 70 different currencies

Services
Unique selling points

International card processing and local payment processing; toll and tax calculations for logistics;
receivables management; currency conversion; increased conversion through individual payment
forms for all channels; reduced order abandonment through international and country-specific
payment methods; efficient and customizable fraud prevention; reduced integration effort through
pre-integration with leading ERP and ecommerce vendors including: Demandware, hybris, IBM
WebSphere, INTERSHOP, Magento, Oxid eSales and SAP, which provides the smooth integration
and faster time to market; independent industry and product consultancy.

Core services

Complete multichannel solution for global payment processing (ecommerce, mCommerce, Point of
Sales (POS), mail order/telephone order (MOTO) as well as out of the box mobile templates for
iPhone, iPad, Blackberry, Android, Windows and Symbian; extensive risk management and fraud
protection.

COMPANY PROFILES

137

Pricing

Provided upon request. Contact Computop for more information.

Collecting payments

Yes, including credit cards, direct debit and global online bank transfers.

Distributing payments

Yes, with various settlement currencies in Europe, Asia, North America and Latin America.

Fraud prevention (measures)

Own built-in fraud prevention solution and module with velocity checks, IP geo-location etc., Full
risk management system including: adress check, credit check, card origin check, geo IP-origin
check, velocity rule enging, black/white list, device-ID check, Computop ELV score, 3D Secure
(Verified by Visa, MasterCard SecureCode, American Express SafeKey), bank account/credit card
checks.

Fraud prevention partners

Additional integrated fraud prevention and risk management Partners: ACI ReD, arvato Infoscore,
Brgel, Cardinal Commerce, CEG, Creditreform, deltavista, Boniversum, SCHUFA

Credit management (services)

Credit Control/Receivables Management

Other services

IATA DISH20 support, American Express B2B purchasing solution, recurring payments, subscription
billing and management, Computop Analytics backoffice with user rights management, Computop
Reporter for detailed analyses, least cost routing for select regions, Cash&Go mobile topup, batch
file transfer, EPA settlement files, consolidated reconcilliation files, cardholder fund transfer, Pseudo
Card Number/tokenization, Corporate Paypages through templates, payment routing, Point-toPoint Encryption for point of sale.

Third parties

Computop Paygate is built and developed in-house.

Technology

138

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Name Value Pair (NVP); Web services (specifications available upon request)

Security

SSL, HMAC, Blowfish, PCI DSS level 1 Certified, certified bank data centers

ONLINE PAYMENTS MARKET GUIDE 2015

For more information contact


psp@computop.com

Company

Counting House Ltd.


Counting House provides a global range of inbound and outbound payment processing services to
the online gaming community. Funding by multi-currency credit card, cheque, direct debit and bank
transfer, and cashing out by multi currency cheque or EFT makes for a simple, streamlined and
positive experience for international players.

Website

www.countinghouseltd.com

Keywords for online profile

PSP, credit card processing, international payout service, cashiering, igaming payments, account
funding, outbound payments

Contact

Paul Davis, LLC, General Counsel; Stuart Ballan, Head of Sales

Geographical presence

Europe, Canada, Middle East

Market segment(s)

Online gaming, Peer to Peer gaming

Active since

2008

Service provider type

Payment service provider, processor

Payment methods
Credit cards

MC, VISA branded cards

Debit cards

MC, Visa branded cards: Maestro, Visa Electron, Carte Bleue, CartaSi, Visa Debit, Debit
MasterCard

Pre-paid cards

Yes

Online banking

Yes

E-wallet

No

Mobile / SMS / IVR

Yes

Alternative payment methods

Yes

Offline

Bank transfers in most European countries.

Connected companies (#)

More information available upon request.

Companies PSP is connected to

More information available upon request.

Settlement currencies (acquirers)

More information available upon request.

Services
Unique selling points

Counting House offers a global range of inbound and outbound payment processing services in
key jurisdications and is uniquely qualified to establish bespoke services in growth markets.

Core services

Inbound and outbound payment processing.

Pricing

Upon request.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

IP geolocation, multi-merchant purchase history, global validation checks, Verified by Visa,


MasterCard SecureCode, velocity checks, transaction limit checking, risk scoring, black/ white list,
chargeback history

Fraud prevention partners

DataCheck, FraudPrevent, MaxMind

Credit management (services)

More information available upon request.

Other services

Expert consultation on payment preferences in key markets, licensing and international banking.

Third parties

More information available upon request.

COMPANY PROFILES

141

Technology

142

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

API, Online Banking Interface

Security

PCI compliant services

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Digital River World Payments


Digital River World Payments enables merchants to process online payments using more than
200international and local payment options, and over 170 currencies. Built to reduce the risks and
costs of running a global payments program, the solution also offers a wide range of value-added
services that support the complete payment lifecycle. These include checkout page optimization,
real-time fraud detection, solutions to manage PCI exposure and currency risk, as well as
advanced back-office reconciliation services and business intelligence tools. In 2014, Digital River
processed more than USD 35 billion in online transactions.

Website

www.digitalriver.com

Keywords for online profile

payment gateway, PSP, online payment, payment processing, multi-currency, PCI, ecommerce,
alternative payments

Contact

europe@digitalriver.com, americas@digitalriver.com, apac@digitalriver.com


European HQ: +46 (0)8 527 210 00, US HQ: +1 952 253 1234

Geographical presence

North/Latin America, Europe, Asia/Pacific

Market segment(s)

Retail, travel, online services, software, direct selling, B2B

Active since

1994

Service provider type

Full-service payments provider including card processing, card acquiring and alternative payment
solutions.

Payment methods
Credit cards

Visa, MasterCard, American Express, JCB, Diners, Discover, China UnionPay, plus various local
cards in Europe, LATAM and APAC including CarteBleue, Carte Aurore, 4 toiles, Carte Cofinoga,
Dankort and local card processing in Brazil (Visa, MC, Hypercard, Diners, ELO and AmEx).

Debit cards

International debit cards such as Maestro International, Visa Debit and Electron. More than 60 local
debit cards in China, 6 local debit cards in India and more than 20 local debit cards in South Korea.

Pre-paid cards

Local cash cards in India.

Online banking

iDEAL in The Netherlands; Sofortbanking and Giropay in Germany; EPS in Austria; Nordea in
Denmark; Swedbank, SEB, Handelsbanken and Nordea in Sweden; Nordea, Danskebank, OP,
Aktia, S-Pankki, Sstpankki in Finland; 25 banks in Poland; 39 banks in India; 19 banks in
SouthKorea.

E-wallet

PayPal, AliPay, QIWI

Mobile/SMS/IVR

Local solutions in India and South Korea. In other markets a mobile checkout solution is available.

Alternative payment methods

Boleto Bancario in Brazil, card installments in Brazil, Mexico and South Korea. Bpay in Australia.
Ease2Pay and Alipay in China. Klarna Invoice in Europe.

Offline

Electronic Fund Transfers (bank transfer) in more than 20 European countries, Direct Debit
(including SEPA) in Austria, Germany (ELV), The Netherlands, Bpay in Australia, Boleto Bancario
inBrazils.

Connected companies (#)

More than 50 local card acquirers, financial schemes and institutions worldwide.

Companies PSP is connected to

Please contact Digital River World Payments for more information.

Settlement currencies (acquirers)

ARS, AUD, BHD, CAD, CLP, CNY, COP, HRK, CZK, DKK, HKD, HUF, INR, IDR, ILS, JPY, JOD, KRW,
KWD, LBP, MYR, MXN, MAD, OMR, NZD, NOK, PEN, PHP, QAR, RUB, SAR, SGD, ZAR, SEK, CHF,
THB, AED, EGP, GBP, USD, TWD, RON, TRY, EUR, PLN, BRL

Services
Unique selling points

We are a merchant serving merchants through our commerce offering we act as the merchant
of record for tens of thousands merchants globally. As such we have the in-house experience
and expertise needed to support merchants to efficiently build, maintain and optimize their global
payments program and quickly enter new geographical markets.

COMPANY PROFILES

143

Core services

Gateway services:
- Local and global card processing
- Flexible and neutral bank connections
- Retail bank products and 3rd party solutions
- PCI compliant
- Tokenization services
- Recurring payments
Full Service Acquiring (ISO):
- Managed reconciliation process
- Chargeback management
- Standardized reporting
- Full card acquiring services
- Managed merchant accounts
- Simplified legal/administrative process
- Single point of contact for payment related questions

Pricing

Flexible pricing options based on requirements and volumes. Please contact us for more
information.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Basic fraud prevention services are available as part of the World Payments solution. Please
contact us for further details.

Fraud prevention partners

Please contact Digital River World Payments for more information.

Credit management (services)

Please contact Digital River World Payments for more information.

Other services

Page Builder self service checkout page creation tool, reconciliation management services,
chargeback management services, subscription management, payouts, advanced matching engine
for offline payments (bank transfers).

Third parties

400 global partners

Technology

144

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

We make it easy for merchants to engage with us through a variety of entry points, fitting THEIR
business and technology models:
- Payment Page: for merchants who are not or do not want to be PCI compliant.
- Through API solutions allowing PCI compliant merchants to interface directly to our payment
solutions

Security

Level 1 PCI compliant, PSD license holder

ONLINE PAYMENTS MARKET GUIDE 2015

Looking to sell in Brazil


but dont have a company there?

Relax, well handle it.


Wherever youre expanding, Digital River World Payments can ensure your online payments
programme fits local conditions and requirements. With 21 years of experience, $35 billion in
online transactions annually and connections to over 200 local payment methods, we know
what it takes to enter a new marketsafely, successfully and quickly.
Find additional local facts and more on our e-payments map to success: bit.ly/brazil-online

Company

EBANX
EBANX is the leader for cross-border payment processing for international ecommerce merchants
selling to LatAm we are connected to more than 400 merchants in over 40 countries. EBANX
enables consumers to use their preferred local payment methods, collecting funds locally and
making settlements to merchants globally. In 2015, EBANX was awarded Best International CNP
Program, EY Brazil Entrepreneur of the Year, and ReclameAQUI seal for Best Customer Service.

Website

ebanx.com

Keywords for online profile

Cross-border payments, Boleto Bancario, Brazil, LatAm, payments, local payment methods,
installments, payment processor and FX processor.

Contact

Wade Pylka, VP Business Development | wade@ebanx.com

Geographical presence

Latin America, North America and Asia.

Market segment(s)

All industries: retail, electronics, travel/airline, content, games, digital downloads, education,
finance, SaaS, payment service providers, B2B and B2C.

Active since

2011

Service provider type

Cross-border payment processor in Brazil and LatAm specialized in local payment methods.
InBrazil, EBANX is also a FX operator authorized by the Central Bank of Brazil.

Payment methods
Credit cards

Local and international credit card processing in Brazil, Mexico, Chile and Colombia.

Debit cards

Local debit card that allows online transactions in Mexico, Chile and Colombia.

Pre-paid cards

For more details, please contact the EBANX Business Development Team: bizdev@ebanx.com

Online banking

Brazil: Ita, Bradesco, Banco do Brasil, HSBC and Banrisul; Peru: BBVA, Interbank, BCP and
Scotiabank; Chile: BBVA, BancoBice, Banco de Chile, HSBC and others; Colombia: Bancolombia,
Banco Caja Social, BBVA, Citi, Helm, HSBC, and others; Mexico: HSBC, BBVA Bancomer,
Banamex, Santander, and others.

E-wallet

For more details, please contact the EBANX Business Development Team: bizdev@ebanx.com

Mobile/SMS/IVR

For more details, please contact the EBANX Business Development Team: bizdev@ebanx.com

Alternative payment methods

Boleto Bancario, OXXO, PagoEfectivo, Servipag, PSE, Safetypay, Baloto, Multicaja, Sencillito,
PuntoRed, Efecty, 7 Eleven, CajaVecina, and ServiEstado.

Offline

Boleto Bancario, OXXO, PagoEfectivo, Baloto, PuntoRed, Multicaja, Sencillito, 7 Eleven,


CajaVecina, and Efecty.

Connected companies (#)

More than 40 financial institutions and credit card acquirers in LatAm.

Companies PSP is connected to

All relevant banks, acquirers and alternative payment methods in Brazil and LatAm.

Settlement currencies (acquirers)

EBANX settles in USD or EUR.

Services

146

Unique selling points

EBANX expands your target market to LatAm and eliminates the need to establish your own local
entity. Our expertise in the field guarantees that it is the simplest and most tax efficient business
model, collecting funds locally and transferring them globally. Increase your sales through local
payment methods with EBANX.

Core services

Cross-border payment processing, Brazil and LatAm domestic payment methods, global
remittances, and local acquiring.

Pricing

For more details, please contact the EBANX Business Development Team: bizdev@ebanx.com

Collecting payments

EBANX collects funds locally and makes settlements to merchants globally in USD or EUR.

Distributing payments

EBANX makes settlements to merchants or PSPs located internationally for daily, weekly, monthly,
or on-demand payments.

Fraud prevention (measures)

Full-risk management procedures and up-to-date risk application including consumer checks and
data validation, fraud prevention using scoring, internal black list, offline manual verifications, and
online and offline transaction monitoring. All checks are fully configurable and extendable.

Fraud prevention partners

All relevant fraud prevention companies in Brazil and LatAm.

Credit management (services)

Receivables management, online void and refund, and chargeback management.

ONLINE PAYMENTS MARKET GUIDE 2015

Other services

Payments in installments, automated recurrent billing, customized checkout and direct API
integration, local acquiring services, automated refunds, 24/7 system maintenance, 24/7 support
for merchants and customers, and FX services.

Third parties

BEXS Bank and BoletoBancario.com

Technology
Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

JSON POST/GET, API, online banking interface

Security

HTTPS and PCI-DSS1 Compliant.

COMPANY PROFILES

147

Company

eComCharge Ltd
eComCharge delivers White Label software and infrastructure ensuring card payments processing
for payment service providers and acquirers in a Platform as a Service (PaaS) model. Modular
payment gateway architecture allows integrate certain modules into existing system. eComCharge
is paying strong attention to anti-fraud prevention solutions, ensuring the clients safe and
reliable payments. eComCharge is EU-based PCI DSS Level 1 certified. eComCharge delivers
comprehensive card and alternative payment processing services for online merchants.

Website

www.ecomcharge.com

Keywords for online profile

payment gateway, modular payment platform, online payments, PCI, payment processing, whitelabel payment platform, ecommerce, m-commerce, alternative payments, mobile payments, card
payments processing

Contact

eComCharge Sales Department: sales@ecomcharge.com, Phone: +371 67398658

Geographical presence

Europe, Russia, CIS Countries

Market segment(s)

ecommerce, m-commerce, banks, payment service providers, forex, adult, gambling, gaming,
retail, other

Active since

2013

Service provider type

Payment service provider, payment gateway

Payment methods
Credit cards

AmEx, MasterCard, Visa, Diners, Discover, JCB

Debit cards

Visa, MasterCard, Visa Electron, Maestro

Pre-paid cards

paysafecard, UKash, Astropay Card

Online banking

Sofort, TrustPay, POLi, Przelewy24, SafetyPay, UseMyService, Giropay, Instant Transfer, iDEAL,
EPS, Astropay direct, SEPA Direct Debit, SEPA Wire transfer, Bank Links

E-wallet

Skrill, Neteller, PayPal, Amazon Payments, Alipay, WebMoney, Raberil Pay-Out, Boleto Bancario,
Ticket Online, QIWI, Moneta.ru, Yandex.Money

Mobile / SMS / IVR

No

Alternative payment methods

Yes

Offline

More information available upon request

Connected companies (#)

No

Companies PSP is connected to

Acquirers, alternative payment methods, 3D Secure MPIs, risk management solutions. Please
contact us for full connectivity list.

Settlement currencies (acquirers)

All currencies supported by connected acquirers and payment methods.

Services

148

Unique selling points

eComCharge provides modular white-label payment platform beGateway in a PaaS (Platformas-a-Service) model. beGateway provides support for various integration types; a flexible,
customizable system of statistics and accounting; a secure payment page adapted for both
desktops and mobile devices; powerful innovative system of protection against fraudulent
transactions and risk management. beConnected is a single platform for accepting Alternative
payments connected to more than 35 payment systems, e-wallets and bank links. eComCharge is
one stop store for payment service providers, acquirers and online merchants.

Core services

Modular white-label payment platform for payment service providers and acquirers. Card and
alternative payment processing for online merchants. Antifraud and risk management system as
aservice.

Pricing

Please contact eComCharge for your individual solution and pricing.

Collecting payments

No

Distributing payments

No

Fraud prevention (measures)

Black/white list, Data validation, Geographical checking, IP geo-location, Parameter format


checking, Rule based system, Device ID, 3-D secure, BIN checking

Fraud prevention partners

No

Credit management (services)

No

ONLINE PAYMENTS MARKET GUIDE 2015

Other services

Card payment processing- bePaid; alternative payment processing platform including payment
systems, e-wallets, bank-links beConnected; anti-fraud prevention tool beProtected; our
products ensure one-click payments, tokenization, recurring billing, advanced reporting tool;
customizable white-label payment platform based on PaaS model.

Third parties

More information available upon request.

Technology
Direct connections

Yes

Batch processing

No

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

JSON, REST API, payment link, in-app m-commerce, mobile payment pages

Security

eComCharge is PCI-DSS 3.0 Level 1 compliant. This means that our customers do not need to
go through the complicated and expensive certification procedure themselves, but are PCI DSS
compliant using our products.

COMPANY PROFILES

149

Company

eMerchantPay Group Ltd


eMerchantPay is an established payment service provider that offers Card-Not-Present and
CardPresent solutions in 150 currencies to merchants across the globe.

Website

www.emerchantpay.com

Keywords for online profile

Payment processing, ecommerce, card payments, alternative payment methods, payment gateway,
online payments, payment service provider and risk management.

Contact

sales@emerchantpay.com

Geographical presence

Global

Market segment(s)

General ecommerce, travel, gaming, gambling, forex, binary options, adult and video gaming.

Active since

2002

Service provider type

PSP, ISO, payment gateway, acquirer, alternative payment methods.

Payment methods
Credit cards

Visa, MasterCard, UATP, JCB, American Express and Discover.

Debit cards

Visa Electron, Maestro, MasterCard Debit

Pre-paid

cashU, Ukash, paysafecard, OneCard and teleingreso

Online banking

Earthport, Sofort, POLi, inpay, Santander, Bancomer, eps, GiroPay, iDEAL, Trustpay, Przelewy24,
SafetyPay, HSBC, Banco del Bajio, Transferia Bancaria, Boleto Bancario, ProvinciaNet, Oxxo,
PagoFacl, Cobro Express and Servipag.

E-wallet

Moneta.RU, Yandex.Money, Neteller, WebMoney, QIWI & Alipay.

Mobile / SMS / IVR

infin

Alternative payment methods

Yes

Offline

Yes

Connected companies (#)

Acquirers, 3rd Party Fraud Scrubbing Tools, Credit Checks and other services.

Companies PSP is connected to

Acquirers, fraud and risk services

Settlement currencies (acquirers)

EUR, GBP, USD, CAD and PLN

Services

150

Unique selling points

Single interface solution | More than 50 directly available alternative payment methods | Redundant
payment connections | Professional guidance and assistance by experienced in-house risk
experts| A wide range of customisable fraud-scrubbing tools | Payment gateway with 99.99%
uptime | Quick and easy API integration

Core services

Online payment processing, payment gateway.

Pricing

For current pricing, please contact our Sales team at sales@emerchantpay.com.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

3D-Secure payer authentication, AVS, BIN country check, CCV/CCV2, device identification,
malware detection, PCI DSS compliance, IP address geo-location authentication, telephone
authentication and verification, negative and blacklists, positive and whitelists, purchase device
tracing, transaction amount thresholds and limits.

Fraud prevention partners

Yes, for the full list of partners, please contact us directly at sales@emerchantpay.com

Credit management (services)

Yes

Other services

Customized payment page, chargeback management, customer service, adjustable email


notifications, recurring and MOTO, payment of winnings, POS devices.

Third parties

Multiple 3rd parties integrated with our gateway system.

ONLINE PAYMENTS MARKET GUIDE 2015

Technology
Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

XML

Security

HTTPS, SSL & PCI DSS Level 1

COMPANY PROFILES

151

Company

eNett International
eNett International simplifies the complexities of payments by connecting travel industry specialism
with payments expertise.
We pioneer innovative B2B payment solutions that reduce risk and facilitate even more travel
content, at a lower cost. Easily integrated into existing travel booking workflows, our payment
solutions deliver financial, data and efficiency rewards for travel agents and industry suppliers.

Website

www.enett.com

Keywords for online profile

Online payments, B2B travel payments, supplier payments, virtual card, Virtual Account Numbers,
pre-pay, payment processing, travel

Contact

tim.masih@enett.com

Geographical presence

Americas, Europe, Middle East/Africa, Asia/Pacific

Market segment(s)

B2B Travel, Payments, Virtual Card

Active since

2009

Service provider type

Payment solution provider: fund-as-you-go Virtual Account Numbers

Payment methods
Credit cards

MasterCard (Virtual Cards)

Debit cards

N/A

Pre-paid cards

N/A

Online banking

No

E-wallet

No

Mobile / SMS / IVR

No

Alternative payment methods

eNett Virtual Account Numbers (VANs) are unique 16-digit MasterCard numbers used for travel
supplier payments.

Offline

No

Connected companies (#)

3 financial partners

Companies PSP is connected to

MasterCard and Optal (FKA PSP International) and Travelport

Settlement currencies (acquirers)

eNett VANs can be generated in 30 currencies, 16 of which are available with local settlement.

Services
Unique selling points

An eNett VAN is an automatically generated MasterCard number the travel industry can use
to make secure supplier payments. VANs reduce risk while delivering efficiency and cost
improvements and rewarding all customers with access to rebates* and dynamic content.
*subject to terms and conditions

Core services

Facilitating B2B travel payments using eNett Virtual Account Numbers (VANs).

Pricing

We make rebates accessible to our customers*, regardless of size. Because were unhindered by
credit losses or collection and financial carrying outlays, lower operating costs for us translate into
more cost savings for our customers.
*subject to terms and conditions

152

Collecting payments

No

Distributing payments

No

Fraud prevention (measures)

Backed by the MasterCard guarantee and generating unique numbers for every transaction, eNett
VANs minimise the risk of fraud and maximise protection against supplier default. eNett also
deploys the latest in transaction monitoring technology across our payment and AML systems to
further protect from fraud.

Fraud prevention partners

Confidential

Credit management (services)

N/A

ONLINE PAYMENTS MARKET GUIDE 2015

Other services

Automated reconciliation, integration with industry tools & workflows, automated chargeback
processing, real-time reporting, suite of lower cost FX options, local funding and settlement and
quarterly business reviews.

Third parties

MasterCard and Optal (FKA PSP International)

Technology
Direct connections

Yes

Batch processing

Yes

Per order processing

No

Merchant pages (direct model)

No

Interface

eNett Payments Platform


Agents can easily generate card details within the eNett Payments Platform web portal.
API
eNetts Application Programming Interface (API) is available for easy integration with any
proprietary booking or back-office accounting tool.
eNett VANs are also integrated with Confermas global travel payment network.
CSV Batch Upload
VAN requests using a Batch Upload or Import is the best method for agencies paying several
suppliers at the same time. Batch Upload allows you or your account teams to upload a CSV,
SLS or XLSX file to generate multiple VANs within the eNett Payments Platform.
Hotel direct billing
Cornerstone and eNett have partnered to create payment efficiencies for Travel Management
Companies with an automated hotel direct billing tool.
Travelport Travel Commerce Platform
eNett VANs are the only virtual cards deeply embedded across Travelports Travel Commerce
Platform, including Travelport Galileo, Travelport Apollo, Travelport Worldspan as well as
Smartpoint, Focalpoint and Universal Desktop.
GDS and third party suppliers
In addition to seamless integration with the Travelport Travel Commerce Platform, eNett VANs can
also be integrated with Sabre, Amadeus and Abacus desktops.

Security

eNett complies with the Payment Card Industry Data Security Standard (PCI-DSS) audited annually
by a Qualified Security Assessor (QSA). We use AES-256 encryption for data communication the
recognised standard for financial institutions and government organisations.

COMPANY PROFILES

153

FULL SERVICE FOR NON-CASH


PAYMENTS IN EUROPE
> full service solutions for international non-cash and card payment transactions
in stationary and mobile e-commerce, mail order and at point of sale
> all major non-cash payment methods from a single source
> substantial know-how coupled with a well proven technical platform
> reliable fraud prevention tools
> unique online reporting and chargeback handling
> end-to-end transaction transparency
> repeatedly named best acquirer for international merchants

www.EVOpayments.eu

Company

EVO Payments
EVO Payments International offers international full-service solutions including debit and credit
card acceptance and other non-cash payment methods, risk minimisation and further value added
services. The acquirer and payment service provider is the exclusive card acquiring provider for
leading financial institutions and was repeatedly named best acquirer for international merchants.

Website

www.EVOpayments.eu

Keywords for online profile

PSP, online payment, payment processing, multi-currency, PCI, ecommerce, m-commerce,


POS, alternative payments, after payments, acquirer, acquiring, receivables management,
liquiditymanagement

Contact

T +49 221-99577-0, F +49 221-99577-730, E info.EMEA@EVOpayments.com

Geographical presence

Europe, North America via the EVO Payments International Group

Market segment(s)

All types of trade and service provison in e-commerce, e-mail and telephone order and at thepoint
ofsale, B2B and B2C.

Active since

2013 (1999)

Service provider type

Acquirer and payment service provider (PSP)

Payment methods
Credit cards

Visa, MasterCard, American Express, Diners Club, Discover, JCB, IKANO, AirPlus

Debit cards

Visa, V Pay, MasterCard, Maestro, Bancontact / Mister Cash, Carte Bancaire, Dankort, Girocard,

Pre-paid cards

paysafecard

Online banking

Giropay (DE), eps (AT), iDEAL (NL), Przelewy24

E-wallet

Alipay, Amazon Payments, Masterpass, PayPal, PayU, POSTPAY, QIWI Wallet, Skrill, Yapital

Mobile / SMS / IVR

mPass

Alternative payment methods

Invoice and instalment service providers BillPay, BillSAFE, Klarna, PayByBill, PayProtect,
Teleingreso, RatePay

Offline

Invoice, cash-on-delivery, prepayment, direct debit (DE, AT, NL)

Connected companies (#)

Numerous

Companies PSP is connected to

Numerous

Settlement currencies (acquirers)

EUR, USD, GBP, CAD, CHF, CZK, DKK, HUF, JPY, NOK, PLN, SEK, ZAR and roughly
120transaction currencies.

GeldKarte, PostFinance

Services
Unique selling points

Thanks to its highly qualified resources as well as detailed global and local expertise, EVO can
offer: higher sales and lower losses, less work and complexity, flexibility and tailor-made solutions,
more transparency and leaner procedures, better liquidity, security and reliability.

Core services

Acquiring for CNP, CP and ATM, payment service provision and receivables management.

Pricing

Pricing is based on individual calculation, please contact sales.EMEA@EVOpayments.com.

Collecting payments

Yes (acquirer)

Distributing payments

Yes (acquirer)

Fraud prevention (measures)

3D Secure, Verified by Visa, MasterCard SecureCode, IP geolocation, multi-merchant purchase


history, global validation checks, velocity checks, data validation, geographical checking,
parameter format checking, transaction limit checking, risk scoring, geo IP-origin check, black /
white list, solvency checks, account checks, card checks, AVS, address verification services.

Fraud prevention partners

Retail decisions (ReD), arvato infoscore, BRGEL, Deltavista, Domnowski, SCHUFA, KUNO.

Credit management (services)

Receivables management, purchase on credit, payment guarantee, payment.

Other services

Comprehensive online administration tools free of charge: Automatic Information System (AIS),
Business Information System (BIS), Chargeback Information System (CIS) and Debtor Information
System (DIS); MOTO SSL terminal for easy and quick mail order transactions; extensions for
online-shop.

Third parties

Numerous

COMPANY PROFILES

155

Technology

156

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Several data or GUI-based payment interfaces.

Security

HTT PS, SSL, HMAC, blowfish encryption, pseudo card numbers, first european acquirer to
become PCI-certified in 2004.

ONLINE PAYMENTS MARKET GUIDE 2015

Company

First Atlantic Commerce


First Atlantic Commerce (FAC) is a secure, PCI certified payment gateway based in the LACR
that offers custom, online payment solutions to merchants and banks around the world. FAC is
connected to banks across the Caribbean, Panama, Bermuda, UK, Europe and Mauritius, and
provides merchants with online credit and debit card processing through a single, secure interface.

Website

www.firstatlanticcommerce.com

Keywords for online profile

payment gateway, merchant accounts, global online payments, credit card processing, website
payments, payment service provider, internet payments, online payments, payment processing

Contact

Tricia Lines Hill, SVP, Business Development & Marketing. E: tlineshill@fac.bm, T:+1.441.294.4625

Geographical presence

Assist merchants globally through solutions in the UK, US, Europe, Panama, Bermuda, Caribbean
and Mauritius. We specialize in the Caribbean.

Market segment(s)

Retail, travel (airlines, hotels, car rentals), ticketing and events, prepaid phone & VoIP, digital
content, ISPs, web hosting, social gaming, group coupons, licensed forex, education

Active since

1998

Service provider type

Payment Gateway and merchant account facilitator via partner banks

Payment methods
Credit cards

AmEx, Visa, MasterCard, Discover, Diners, CUP, JCB (bank dependent)

Debit cards

Visa and MasterCard branded debit cards, Maestro, Laser

Pre-paid cards

Solutions available via partners

Online banking

Yes (solution dependent)

E-wallet

No

Mobile/SMS/IVR

No

Alternative payment methods

No

Offline

Bank transfers (solution dependent), prepaid cards

Connected companies (#)

14 acquirers

Companies PSP is connected to

Acquirers and alternative payment providers (more information available upon request)

Settlement currencies (acquirers)

USD, EUR, AUD, HKD, DKK, SEK, ZAR, GBP, CAD, NZD, CHF, NOK, JPY, SGD, AED, MUR, KES,
Caribbean currencies

Services
Unique selling points

- Custom, online, multi-currency payment solutions


- Secure, PCI DSS certified payment gateway
- Low transaction fees
- Global merchant accounts
- Specialize in the Caribbean
- Exceptional customer service and satisfaction
- Standalone AVS, Card ID Verification, 3-D Secure (via our MPI)
- Tokenization
- Hosted payment page
- Access to alternative payments through single interface
- 17 years of experience

Core services

Payment gateway, online payment processing, standalone or bundled verification services, global
merchant accounts through partner acquirers.

Pricing

Tiered, according to volume (very competitive).

Collecting payments

FAC facilitates direct merchant accounts with acquiring banks.

Distributing payments

FAC facilitates direct merchant accounts with acquiring banks.

Fraud prevention (measures)

North American AVS, Card ID verification (CVV2/CVC2/CID), and 3D Secure (Verified by Visa,
MasterCard SecureCode), Bin Checks, Kount; All available as standalone or bundled service.
Also Bin Blocks, Card Blocks, Transaction Data Monitoring, Manual Purchase History Reviews,
Transaction Value Caps, Volume Limits.

COMPANY PROFILES

157

Fraud prevention partners

Kount

Credit management (services)

No

Other services

Payment gateway services for ecommerce acquiring banks. Bank 3D Secure certifications,
recurring payments, tokenization, real-time reporting, Hosted Payment Page

Third parties

Multiple reservation and ecommerce platforms such as 3DCart, osCommerce, Bookeo, B4checkin,
Rezgo, Magento, Realex, SkyVantage, Radixx, Travolutionary

Technology

158

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Web services, SOAP, XML (specifications available upon request)

Security

HTTPS, SSL+, SFTP, SSH encryption

ONLINE PAYMENTS MARKET GUIDE 2015

Online Payment Solutions


Accept Credit Cards Online
> LOW Gateway Transaction Fees
> Global Merchant Accounts
> Fraud Mitigation Services
> Hosted Payment Page & Tokenization
> 3-D Secure as a stand-alone Solution
> Exceptional Customer Service
Specializing in
the Caribbean

Tel: 441.296.5598 or 441.294.4622 | Fax: 441.295.6855 | E-mail: sales@fac.bm | Web: www.rstatlanticcommerce.com

Today the act of payment is multi-dimensional.


We are at the heart of the rapidly evolving retailer-consumer
relationship. More than ever, Ingenico Group is a trusted
partner, uniquely positioned to reduce payment complexity
for banks and merchants while enhancing the consumer
experience. We guide them safely, offering them innovative
solutions to ensure that payments are simple and
fast, whatever the channel: in-store, online and mobile.

global
leader in
seamless
payment

www.ingenico.com

Company

Ingenico ePayments
Offering more than 300 local and international payment methods, we help merchants to manage,
collect and secure their payments and prevent fraud on any digital transactions in-App, cardbased or alternative payment methods. Beyond removing payment complexity, we provide
merchants with solutions to increase conversion, such as FX conversion, analytics and fraud
management.

Website

www.ingenico.com

Keywords for online profile

online payment, payment gateway, PSP, payment processing, multi-currency, PCI, full service,
omnichannel

Contact

David Jimenez, Vice President, Sales Ingenico ePayments +31 (0)23 567 1500

Geographical presence

North/Latin America, Europe, Middle East/Africa, Asia/Pacific

Market segment(s)

Digital Goods & Services, Video Gaming, Retail, Travel & Tourism, SMB, FX, Other

Active since

1994

Service provider type

payment service provider (gateway & collecting)

Payment methods
Credit cards

Visa, MasterCard, American Express, Diners Club International, Discover, JCB, UnionPay
International and more than 15 local cards across the globe.

Debit cards

Bancontact-Mistercash, Maestro, Giropay, Visa Electron, Dankort, CartaSi, Postepay, Visa Debit,

Pre-paid cards

Ukash, paysafecard

Online banking

iDEAL, Sofortberweisung/Sofort Banking and Giropay (Germany), Nordea Solo (Sweden, Finland,
Denmark), ING HomePay, KBC and Belfius Paybutton (Belgium), various banks in Poland, eNETS
(Singapore), bPay, Net Banking (India)

E-wallet

PayPal, WebMoney, cashU, Alipay, Yandex, Moneybookers (Skrill), Paylib, Masterpass

Mobile / SMS / IVR

Responsive Hosted Payment Pages, Native in-app payments (iOS & Android), Call Center
Application, Mobile-optimized payment products, tokenization

Alternative payment methods

Direct Debits, Virtual bank accounts, Konbini (Japan), Pay-easy (Japan), Ukash, paysafecard,
Boleto Bancario, Western Union, Pago Facil, Invoicing, Cheques, QIWI, eNETS

Offline

Bank transfers worldwide acceptance, local acceptance in 55+ countries, payouts (cross-border
payments), cash and kiosk payments.

Connected companies (#)

More than 20 acquirers.

Companies PSP is connected to

Ingenico is bank-independent and has partnerships with leading international financial institutions
such as First Data, AIB, BNP, HSBC, Wells Fargo, Barclays, Elavon, Euroline and others. Ingenico
also has partnerships established and are integrateD with all major shopping carts and eCommerce
platforms, including Magento, Demandware, Hybris, Intershop, Prestashop, DrupalCommerce,
eShare, Zuora, Micros, Sabre, Vindicia and Amadeus.

Settlement currencies (acquirers)

EUR, GBP, USD (others upon request)

MasterCard Debit, Cartes Bancaires CB.

Services
Unique selling points

Developer-centric and mobile first platform, easy integration with REST API and SDKs, gateway or
full service processing, responsive payment pages, multi-acquirer set-up, global reach with local
expertise, payment consulting services, FX, Business Intelligence, Managed Fraud Services

Core services

Online payment processing, full service, multi-channel solutions and reconciliation information
(web).

Pricing

Upon request on a customized basis.

Collecting payments

Yes

Distributing payments

Yes

COMPANY PROFILES

161

Fraud prevention (measures)

Device Fingerprinting, IP geolocation, controls & behavioral analysis, 3D Secure (Verified by Visa,
MasterCard SecureCode, American Express SafeKey, Diners ProtectBuy and JCB J-Secure, ),
velocity checks, geographical checking, transaction limit checking, risk scoring, geo IP origin
check, black/white lists, AVS, CVV, CVC, Bin Check, Customized Rule Sets, Real time fraud
screening, lost/stolen cards

Fraud prevention partners

Retail Decisions (ReD), Quova, Experian, Intercard & IATA Perseuss

Credit management (services)

N/A

Other services

Developer Portal with sandbox environment, REST API, Hosted Payment Pages, tokenization, PHP
SDK, Java SDK, JavaScript SDK, iOS SDK, Android SDK, currency conversion, multi-acquirer setup, international expansion services, multi-lingual 24/7 consumer support, Checkout conversion,
FX, Managed Fraud Services, Elevate Business Intelligence, multi-channel

Third parties

N/A

Technology

162

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

REST API / JSON Payload, XML API

Security

PCI-DSS Level 1 certified. ISAE 3402 Level II compliant for processing all payment products.
Dedicated in-house Information Security team as part of Risk Management.

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Limonetik
Limonetik, as an online enriched payment platform (PaaS), provides:
- one-stop technical solution for payment sector, connected to PSPs, payment gateways,
Alternative Payment Methods (APMs), marketplaces, e-merchants and acquirers in Europe, Asia
and the rest of the world;
- collecting settlement services;
- Bespoke solution on demand creation.

Website

www.limonetik.com

Keywords for online profile

online payments, payment processing, alternative payments, innovative payment methods,


ecommerce, marketplace payment solutions

Contact

contact@limonetik.com
marketingww@limonetik.com

Geographical presence

Europe, Asia Pacific

Market segment(s)

Marketplace, Retail, Travel, gaming, payment methods, PSPs, acquirers, insurances, banks

Active since

2008

Service provider type

payment processor, alternative payment method creator

Payment methods
Credit cards

More information available upon request.

Debit cards

More information available upon request.

Pre-paid cards

Ukash-Smart Voucher, paysafecard, Sprit of Cadeau, Pass Cadeau, CADOCarte, Sodexo, BEST,
Yesbycash, Illicado, Ticket Kadeos Online, Cadhoc, Carte Chque Lire, Carte Chque Culture,
Ticket Premium, etc.; gift cards for merchants: Wonderbox, Smartbox, La Redoute, Vente-Prive.

Online banking

Slimpay, Sofort

E-wallet

PayPal, v.me, Masterpass, Paylib, TenPay, Alipay, etc.

Mobile / SMS / IVR

Flashn Pay, Seamless, etc.

Alternative payment methods

1euro, Cofidis 3xCB, Facilypay 3x or 4x, Klarna, carte privilge, Leetchi, Le Pot Communi, Lilyliste,
Bitcoin, Groupon, Chque-Vacances, e-Chque-Vacances, etc.

Offline

More information available upon request

Connected companies (#)

Payment Institution: SFPMEI, Webhelp/FDI, Tunz, Arkea, etc. Third party integrators: Orchestra,
Mirakl, Hybris

Companies PSP is connected to

Ogone, Payline, Paybox, ATOS, etc.

Settlement currencies (acquirers)

All currencies

Services
Unique selling points

Limonetik is an aggregator of APMs, which simplifies and streamlines the complex payments
arena offering a fully-integrated solution with single MI feed. With it, merchants and marketplaces
are connected to APMs directly or through original PSPs quickly and easily. Limonetik facilitates
collecting, settlement, and delivers better consumer experience, etc.

Core services

Online payment processing, financial collecting reconciliation, one-stop solution for all players in
payment sector.

Pricing

For pricing enquiry, please email us:


- contact@limonetik.com
- marketingww@limonetik.com

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

More information available upon request.

Fraud prevention partners

More information available upon request.

Credit management (services)

We are connected to the PSPs, which have credit management services.

COMPANY PROFILES

163

Other services

Connect and develop merchants and marketplaces network for APMs and PSPs. Create bespoke
payment solution and payment page for APMs; collect financial reports easily for merchants and
marketplaces; enrich payment methods, like split tender transaction support.

Third parties

SFPMEI, Webhelp/FDI for acquisition.

Technology

164

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Rest API with WebServices based on XML or JSON.

Security

HTTPS

ONLINE PAYMENTS MARKET GUIDE 2015

Lets innovate together

MAKING PAYMENT PROCESSING SAFE, SIMPLE AND SMART


INDUSTRY LEADING OMNI-CHANNEL PAYMENT GATEWAY & FRAUD MANAGEMENT SOLUTION
EXTENSIVE GLOBAL ACQUIRING NETWORK
OVER 45 LOCAL PAYMENT METHODS WORLDWIDE
MAXIMUM DATA SECURITY
WHITE LABEL CAPABILITIES

ONLINE

MOBILE

IN-STORE

CONTACT CENTRE

KIOSK

Email: gateway_sales@mastercard.com | Tel: +44 (0) 20 7421 9280 | Web: www.mastercard.com/gateway

Company

MasterCard Payment Gateway Services


Our gateway offers industry leading, global payment processing services and advanced fraud
management solutions for merchants, industry partners and acquiring banks. We recognise that
the digital commerce market represents a key area of growth for our customers. As such, its a key
focus for us at MasterCard. We have aggressively invested in payment gateway assets, by both
acquisition and development of proprietary technology, to provide a superior gateway offering that
can assist our customers meet their business objectives.

Website

www.mastercard.com/gateway

Keywords for online profile

PSP, digital payments, payment gateway, fraud prevention and risk management, international,
multi-channel

Contact

Sales team: gateway_sales@mastercard.com, +44 (0) 20 7421 9280

Geographical presence

Europe, North/Latin America, Middle East/Africa, Asia Pacific

Market segment(s)

Retail, airline, travel and leisure, ticketing, gaming, digital content downloads, finance, education,
government, telecommunications and many others.

Active since

1997

Service provider type

Payment service provider, payment gateway, fraud and risk management system

Payment methods
Credit cards

MasterCard, Visa, American Express, JCB, Diners Club International, Discover and branded
storecards.

Debit cards

Maestro (International and Domestic), Visa Electron, Visa Debit, Laser, CarteBleue, Dankort, China
UnionPay, MisterCash/Bancontact & much more. Please contact gateway_sales@mastercard.com
for a full list.

Pre-Paid Cards/Cash Alternatives

paysafecard, ToditoCash, TeleIngreso, Neosurf, Dineromail, Boleto Bancario, Western Union.

Online banking

Yes

E-wallet

MasterPass, V.me, PayPal, ClickandBuy, Click2Pay, Moneta, Neteller, Skrill, WebMoney, Alipay,
Amazon Payments, CashU, ePay, Abaqoos, InstaDebit, EUTeller, Ewire, Apple Pay

Mobile/SMS/IVR

Yes

Alternative payment methods

Over 45 alternative payment types worldwide and constantly growing (Europe, North/Latin America,
Middle East/Africa, Asia Pacific) including: AliPay, iDEAL, Giropay, ACH, BACS, CUP, eCheck, ELV,
Sofortberweisung, eps, WebMoney, Direct Bank Transfers & many more. Please contact us for a
full list and global coverage.

Offline

Bank transfer solutions available in most European countries.

Connected companies (#)

MasterCard Payment Gateway Services is connected into an array of global acquirers, fraud
prevention, Cardholder Present partners, POS systems, ecommerce platforms, alternative payment
services, loyalty and prepaid card solution partners and more.

Companies PSP is connected to

Please contact our sales team for more information.

Settlement currencies (acquirers)

MasterCard Payment Gateway Services can settle in to any currency supported by the acquiring
bank. Settlement currencies are acquiring bank dependant.

Services
Unique selling points

One provider for all your global multi channel payments and fraud and risk management needs!
Access truly global capabilities and partner with one of the worlds leading brands, providing truly
global support with a business spanning 210 counties and enabling access to MasterCards unique
global network of over 140 banks, to further assist your international growth plans.

Core services

Omnichannel payment processing, fraud and risk management.

Pricing

For current pricing please contact our sales team: gateway_sales@mastercard.com,


+44 (0) 20 7421 9280

Collecting payments

Yes

Distributing payments

Yes

COMPANY PROFILES

167

Fraud & Risk Management


(measures)

Full Verification Tools, real-time and near real-time screening of all card and alternative payment
types (including PayPass), globally shared negative database with integration into MasterCards
global positive and negative database, more than 130 rich data capture and checks, more than
350 complex rules specific to Industry, behavioural analytics, device ID, secure and dynamic webbased user interface, third party integrations such as Perseuss and MasterCards EMS (Expert
Monitoring System), full outsource fraud and risk management inclusive of screening reviews,
sophisticated fraud modelling, analytics and reports.

Fraud & Risk Prevention Partners

MasterCard Payment Gateway Services is integrated into multiple third party fraud prevention
partners including but not limited to: 192.com, Iovation, Google Maps, Perseuss, MasterCard,
Electoral roll, ThreatMetrix.

Credit management (services)

No

Other services

Cardholder present solution, hosted pages and tokenization solutions, dynamic currency
conversion, split shipment, recurring payments, payouts and sophisticated reporting management
service.

Third parties

Contact our sales team for more information.

Technology

168

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Web Services API, XML over HTTPS as well as web services, SOAP + XML (specifications available
upon request)

Security

HTTPS, SSL+, PKI, Digital Certificates for merchant using Java and Unique Customer Identification
which is reset on a yearly basis.

ONLINE PAYMENTS MARKET GUIDE 2015

BOOST YOUR
ONLINE SALES!
MultiCards Internet Billing is a provider of credit card
processing and payment solutions to thousands of
vendors worldwide. MultiCards offers a one-stop
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BOOST YOUR
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Contact MultiCards and find out how you

Accept online payments

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Simple,
exible and reliable
with one
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payment
offers flsolutions
that boost
your
online
by 50-80%!

solution providers in the Netherlands. As one of the pioneers in the


sector
(since 1995), MultiCards
offersUSD
solutions that can boost your
Multicurrency
GBP, EUR,
online
sales
by 50-80%!
Easy
signup
and implementation: a one-stop shop

Realtime online account stats


GBP, EUR,
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Multicurrency
24/7 technical
support

Easy signup and implementation: one-stop show

Contact
MultiCards and nd out how you can easily boost
Real-time online account stats
your online performance on www.multicards.com!
24/7 technical support team

MultiCards is a registered trademark and a division of PM International BV with international headquarters in The
Netherlands. MultiCards is PCI/DSS certied, ofcial Visa Merchant Agent.
Reason
enough to visit the global specialist at MultiCards.com

GET
SET
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OR VISIT
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Company

MultiCards Internet Billing


MultiCards Internet Billing is a provider of online card processing and other payment options to
website businesses and retailers. MultiCards as a pioneer company has offered this type of service
since 1995 and is a PCI / DSS certified Payment Service Provider (PSP) and Payment Facilitator
(PF) operating their own gateway.

Website

www.multicards.com

Keywords for online profile

payment service provider, online credit card processing, online payments, payment gateway,
directmerchants

Contact

Mr. Michel Hendriks, michelh@multicards.com, +1 877 292 6378/+31 40 292 6378

Geographical presence

The Netherlands, Europe

Market segment(s)

Retail, travel, dating, other

Active since

1995

Payment methods
Credit cards

Visa, MasterCard, American Express, Diners Club

Debit cards

Visa Electron, Maestro

Pre-paid cards

Yes

Online banking

iDEAL (Dutch), Direct E-Banking (international)

E-wallet

Yes

Mobile / SMS / IVR

Yes

Alternative payment methods

Yes

Offline

No

Connected companies (#)


Companies PSP is connected to

European banks

Settlement currencies (acquirers)

EUR, GBP, USD and other on request.

Services
Unique selling points

Free tech support 24/7, personal service, real-time dedicated online account management,
longstanding history and expertise.

Core services

Online payment processing, reconciliation information (web), third party internet payment gateway,
direct merchant accounts through European bank.

Pricing

https://www.multicards.com/en/pricing/

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Fraud score, negative card database, bounce e-mail system, velocity checks, IP & Country
blocking and proprietary tools.

Fraud prevention partners

Maxmind, IPLocation, McAfee

Credit management (services)

No

Other services

PCI certified gateway for other PSP

Third parties

Third party internet payment gateway

Technology

170

Direct connections

Yes

Batch processing

No

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Https post scripts and web templates, API, major shopping carts, Magento

Security

McAfee and Qualys scanning

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Nets A/S
Nets specialises in managing digital values digital money, digital information and digital identity.
We have one of the most extensive product portfolios in the payment industry in Europe and our
ambition is to become an even stronger partner to our customers by supporting their business,
nationally as well as internationally.

Website

www.nets.eu

Keywords for online profile

payment scheme, payment gateway, PSP, card services, card management, fraud management,
online payment, payment processing, payment terminals, ecommerce, processor, acquirer, digital
identity, digitisation services, information services, real-time clearing

Contact

Nets Holding A/S, Lautrupbjerg 10, 2750 Ballerup, Denmark, Telephone: +45 44 68 44 68

Geographical presence

Northern Europe: Denmark, Norway, Sweden, Finland, Baltics

Market segment(s)

Banking sector, individual banks, merchants and corporates

Active since

1968

Service provider type

By and large, Nets is a managed service provider. In some busniess areas (e.g., eSecurity, Mobil
wallet), Nets also offers client software.

Payment methods
Credit cards

AmEx, JCB, MasterCard, Visa, CUP

Debit cards

Dankort, BankAxept, VISA Elektron, Maestro

Pre-paid cards

Prepaid cards, prepaid closed loop (private label cards), gift cards

Online banking

Online bank services

E-wallet

Whitelabel wallet for individual banks.

Mobile/SMS/IVR

SMS Services

Alternative payment methods

Loyalty cards, giro payments, debit and credit transfers.

Offline

Extensive views of offline in POS terminals.

Connected companies (#)

For more info, please contact the company.

Companies PSP is connected to

Nordea, Swedbank, Handelsbanken, Elevon

Settlement currencies (acquirers)

For more info, please contact the company.

Services
Unique selling points

A trusted provider of many mission and nation-wide critical payment and digital identity
infrastructures, which serve all the citizens in Denmark and Norway. For merchant Nets delivers
online and mobile commecre, POS terminals and acquiring. services. Other key services include
e-invoicing, archiving, signing, distribution services.

Core services

Card and payment infrastructures.

Pricing

Individual

Collecting payments

For more info, please contact the company.

Distributing payments

For more info, please contact the company.

Fraud prevention (measures)

Full risk management system including: real-time surveillance of issuer and acquirer transactions,
pro-active blocking, merchant applications, data investigation.

Fraud prevention partners

SAS Institute

Credit management (services)

No

Other services

Domestic and SEPA direct debit and credit transfer payment scheme management, clearing
services, hot back-up 24/7.

Third parties

Across all business areas, Nets offerings are built on many standardised third party platforms and
technologies.

COMPANY PROFILES

171

Technology

172

Direct connections

Yes

Batch processing

Yes

Per order processing

No

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

For more info, please contact the company.

Security

For more info, please contact the company.

ONLINE PAYMENTS MARKET GUIDE 2015

Company

NOIRE
NOIRE is a leading UK-based boutique payment and fraud risk solution provider. The company
offers internet merchant accounts and bespoke payment gateway technology, along with
pioneering the most advanced risk management and fraud protection technology for companies
ranging from FTSE listed companies to small start-up businesses.

Website

noirepay.com

Keywords for online profile

payment scheme, payment gateway, PSP, online payment, payment processing, payment
institution, multi-currency, PCI, ecommerce, forex, gaming, alternative payments, afterpayments,
processor, acquirer

Contact

info@noirepay.com

Geographical presence

UK, Europe, America, Middle East/Africa, Asia/Pacific

Market segment(s)

Forex, insurance, gambling, gaming, retail, travel ecommerce

Active since

2012

Service provider type

Payment service provider, payment institution, alternative payment provider, payments gateway,
fraud risk technology provider

Payment methods
Credit cards

Amex, MasterCard, Visa, Carte Bleue, JCB, Visa, Discover, giropay, Sofort, Delta, Alipay, China
UnionPay, plus over 220 others.

Debit cards

Maestro, Giropay, BCMC, (e)Maestro, Visa electron, Dankort, Laser, Delta, Carte Bleue, CartaSi,
Postepay, Visa Debit, BancNet, PPS, China UnionPay, Alipay, 99Bill, eNETS, MEPS, Poli, Visa CPC,
Debit Mastercard, Carte Bancaire, CartaSi, Carte Bleue, Chinese debit cards, Carte Blanche, plus
many others.

Pre-paid cards

More information available upon request.

Online banking

No

E-wallet

More information available upon request.

Mobile / SMS / IVR

SMS verifications in all countries.

Alternative payment methods

Bitcoin, e-wallets

Offline

Bank transfers in most European countries.

Connected companies (#)

More information available upon request.

Companies PSP is connected to

More information available upon request.

Settlement currencies (acquirers)

All supported by Visa MasterCard card schemes.

Services
Unique selling points

Technology platform combined with leading payment types, fraud risk management and deep
domain expertise in regional payment strategies and fraud risk management.

Core services

Online payment processing.

Pricing

More information available upon request.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Device fingerprinting, consortium shared datebase of fraud events, IP geolocation, multi-merchant


purchase history, global validation checks , Verified by Visa, MasterCard SecureCode, velocity
checks, persistent cookies, data validation, geographical checking, parameter format checking,
transaction limit checking, risk scoring, geo IP-origin check, black/white list

Fraud prevention partners

NOIRE is a fraud risk management solition provider along with payments technology.

Credit management (services)

More information available upon request.

Other services

More information available upon request.

Third parties

More information available upon request.

COMPANY PROFILES

173

Technology

174

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Web services, SOAP, XML, hosted payment pages

Security

PCI level 1

ONLINE PAYMENTS MARKET GUIDE 2015

Company

ONPEX GmbH
ONPEX is an award-winning, white-label cloud payment Platform as a Service (PaaS) supporting
omni-channel, local and international card processing, alternative payment methods and payment
related solutions. ONPEX PaaS is designed for the automation of financial institutions, payment
systems, payment service providers and ISOs. The ONPEX Acquiring Network simplifies the
complexity of cross-border payments.

Website

www.onpex.com

Keywords for online profile

white-label technology, cloud-based payment platform, global acquiring network, payment account
management, connectivity, award-winning payment solution

Contact

connect@onpex.com; Germany: +49 89 41614310; USA: +1 888 5059194;


Hong Kong: +85 2580 87187

Geographical presence

Global

Market segment(s)

All

Active since

2013

Service provider type

White-label payment platform and global acquiring services.

Payment methods
Credit cards

AmEx, VISA, JCB, MasterCard, Diners, Discover, UnionPay

Debit cards

Vpay, Maestro, Carte Bleue and many local and co-branded cards.

Pre-paid cards

paysafecard, Astrocard

Online banking

Sofort, iDEAL, Giropay, EPS, Trustpay, Trustly, Przelewy24, Postfinance, Mazooma

E-wallet

PayPal, QIWI, Alipay, Tenpay, Neteller, Skrill, Cashu

Mobile / SMS / IVR

Hosted solutions for iOS and Android. Global coverage for SMS/IVR/mobile carrier billing through
partners.

Alternative payment methods

Any alternative payment method worldwide with a reasonable business case.

Offline

Bank transfer, Boleto Bancario, Oxxo, Pago Efectivo

Connected companies (#)

Over 100 acquirers, risk management services and more.

Companies PSP is connected to

Acquirers, alternative payment methods, 3D Secure MPIs, risk management solutions,


chargebackmanagement networks, information services, KYC checks. Please contact us for
fullconnectivity list.

Settlement currencies (acquirers)

More than 40 different currencies

Services
Unique selling points

White-label payment platform as a service; omnichannel support for ecommerce, m-commerce,


MOTO, mPOS and POS.
Connectivity to hundreds of payment products and solutions on one unified platform; multi-level
hierarchy support for partner and merchant structures; simple integration and fully API controllable
platform; global acquiring network for card and alternative payment methods.

Core services

White-label payment platform and global acquiring services.

Pricing

Upon request. Please contact ONPEX for your individual solution and pricing.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Own risk prevention module and connectivity to external risk management service providers:
3DSecure, n-level cube data relation filters.

Fraud prevention partners

Kount, WebShield, Ethoca, Verifi, etc.

Credit management (services)

No

Other services

White label portal and gateway, dynamic checkout, standard and risk based 3D-Secure, responsive
payment pages, recurring billing, one click payments, tokenisation, mobile POS solution. All
ONPEX solutions are made to be customized for you.

Third parties

Platform is complety developed in-house.

COMPANY PROFILES

175

Technology

176

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes, dynamic and responsive embedded payment forms.

Interface

REST full webservice, XML, Json, Reporting CSV, XML, SDKs for Java, PHP, iOS and Android.

Security

PCI Dss version 3.1 compliant, ISO/IEC 27001:2005 certified datacenters.

ONLINE PAYMENTS MARKET GUIDE 2015

one platform:
endless solutions
white-label payment platform
branded gateway and portal with full API control

omni-channel support
mobile, mPOS, POS, eCom, MOTO, EMV

global acquiring network


international card and alternative payment schemes

payment account management


integrated billing, reconciliation and settlements

Germany
+49 89 41614310
USA
+1 888 5059194
Hong Kong
+85 2580 87187

The Online Payment Exchange

connect@onpex.com
www.onpex.com

partner focused. technology driven.

Company

PacNet Services Ltd.


PacNet is a leading international PSP that specializes in processing cross-border transactions
in local currencies for ecommerce and direct response companies. In addition to international
merchant accounts and CNP transaction processing, PacNet also offers multi-currency cheque,
postal order, direct debit and refund processing.

Website

www.pacnetservices.com

Keywords for online profile

electronic payment processing, cheque processing, loan advances, loan repayments, recurring,
multi-currency, credit card processing, international payment processing.

Contact

Brendan Mahar, VP Sales North America; Brian Weekes, VP Sales Europe;


Stuart Ballan, Head of Sales, Middle East

Geographical presence

Global

Market segment(s)

Ecommerce, catalogue, mail order, nutriceutical, cosmetic, online lending, charity, not-for-profit

Active since

1994

Service provider type

Payment service provider

Payment methods
Credit cards

Visa, MasterCard and all international Visa, MasterCard branded credit cards.

Debit cards

Maestro, Visa Electron, Carte Bleue, CartaSi, Visa Debit, Debit MasterCard, Dankort, all Visa /
MasterCard partnered brands

Pre-paid cards

Yes

Online banking

Yes

E-wallet

No

Mobile / SMS / IVR

Yes

Alternative payment methods

Yes

Offline

Cheque and postal order processing, direct debit / check by phone, bank transfer collection,
cheque Issuing

Connected companies (#)

More information available upon request.

Companies PSP is connected to

More information available upon request.

Settlement currencies (acquirers)

Currencies of all major and many developing markets.

Services
Unique selling points

PacNet offers one-stop access to a global menu of local payment services enabling merchants to
securely accept more payments in more places without long lead times or high fees.

Core services

Online payment processing, cheque processing

Pricing

Upon request

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Full risk management system including risk scoring and flagging, black/white list, as well as easy
integration to third party providers.

Fraud prevention partners

DataCheck, FraudPrevent, MaxMind

Credit management (services)

Purchase on credit, payment guarantee

Other services

No

Third parties

No

COMPANY PROFILES

179

Technology

180

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

RAVEN online interface, RAVEN API, MarketDirect Secure Hosted Payment Page

Security

PCI compliant solutions

ONLINE PAYMENTS MARKET GUIDE 2015

Company

PAY.ON
PAY.ON delivers white label global payment gateway solutions to payment service providers, ISOs,
acquirers, ISVs, and VARs, enabling them to fully outsource payment transaction processing or
integrate a gateway-to-gateway solution. Modular solutions enable payment providers to rapidly
increase revenues, reduce costs and risk, and accelerate expansion into international markets.

Website

www.payon.com

Keywords for online profile

payment gateway, white label platform, ecommerce, m-commerce, alternative payments, crossborder payment processing, open payments, RESTful API

Contact

PAY.ON Sales Team: sales@payon.com tel: +49 89 45230 0

Geographical presence

Global

Market segment(s)

Ecommerce, m-commerce, mPOS, gaming, retail, other

Active since

2004

Service provider type

Payment service provider, payment gateway, open platform provider, white label payment
infrastructure provider

Payment methods
Credit cards

Includes: AmEx, VISA, JCB, China UnionPay, MasterCard, Diners, Discover, ASYAcard, Axess,
Bonus, CardFinans, maximum, World, Argencard, Cabal, Cencosud, Naranja, Nativa, Tarjeta
Shopping, ELO, Hipercard, MarcadoPago, Falabela, Magna, BC Card, Choheung Card, Citi Card,
Daegu BC, Gyungnam BC, Hana BC, HanaSK Card, Hyundai Card, IBK BC, Jeju BC, Jeonbuk

Card, KB (Kookmin) Card, KDB BC, KEB, Korea Post, Kwangju Bank Card, NH (Nonghyup), Pusan
BC, Seamaeul Cheque, Samsung Card, Savings Bank, SC BC, Shinhan Card, Suhyup Card, Woori
BC. Visit http://globalcoverage.payon.com for further details.
Debit cards

Includes: China UnionPay, Maestro, Vpay, Visa Electron, Visa Debit, Presto, ELO, PostFinance,
Carte Bleue, CarteBancaire, Dankort. Visit http://globalcoverage.payon.com for further details.

Pre-paid cards

ELO, MangirKart, paysafecard, Ukash

Online banking

Includes: POLi II, China UnionPay, AstroPay, iDEAL, sofortbanking/sofortberweisung, TrustPay,


Webmoney, Przelewy24 Dialcom 24 Sp.z.o.o., Skrill Direct, Giropay, Paytrail, eps, Trustly. Visit
http://globalcoverage.payon.com for further details.

E-wallet

PayPal, Alipay, CashU, Skrill (Moneybookers), OneCard, QIWI, ClickandBuy, iPara, Yandex Money

Mobile/SMS/IVR

mopay, DaoPay, Kanzaroo, paybox

Alternative payment methods

Includes: Alipay, AstroPay, ASYAcard, Banelco, Bapropagos, Bitcoin, Boleto Bancario, CashU,
China UnionPay, ClickandBuy, Cobro Express, Credit Transfer, DaoPay, Direct Debit, Domestic
Money Transfer, ELO, eps, Giropay, iDEAL, iPara, Kanzaroo, Klarna, Kriita, Link, Lufthansa
Miles and More, MangirKart, mopay, OneCard, Oxxo, paybox, Pago Facil, payolution, PAYPAL,
paysafecard, Paytrail, POLi II, PostFinance, ProvinciaNet, Przelewy24, QIWI, Rapipago, RedPagos,
RIPSA, SEPA Direct Debit, ServiPag, Skrill (Moneybookers), sofortberweisung/sofortbanking,
Trustly, TrustPay, Ukash, Virtual currencies (credits) in online games, Webmoney, Yandex Money,
7Eleven. Visit http://globalcoverage.payon.com for further details.

Offline

Includes: Boleto Bancario, Oxxo, 7Eleven, Banelco, Bapropagos, Link, PagoFacil, Cobro
Express, ProvinciaNet, RIPSA, ServiPag, AstroPay, RedPagos, and Rapipago. Visit
http://globalcoverage.payon.com for further details.

Connected companies (#)

More than 300 connected aquirers and alternative payment methods, part of a global payment
network that is constantly expanding.

Companies PSP is connected to

See interactive list of Global Coverage: http://globalcoverage.payon.com

Settlement currencies (acquirers)

All currencies supported by connected acquirers and payment methods.

Services
Unique selling points

Open Payment Platform based on RESTful API architecture and available as a full white label
solution. The scalable, flexible, and secure platform is tailored to meet the specific needs of
PSPs, acquirers, ISOs and other payment providers. PAY.ON supports clients with a non-compete
guarantee.

COMPANY PROFILES

181

Core services

Core payment gateway provides cross-border payment processing, PCI-compliant merchant


boarding, and access to more than 300 domestic and international acquirers and alternative
payment methods. Modular solutions are configured to specific business cases, with additional
fraud prevention tools, monitoring and reporting, and business services.

Pricing

Transaction based pricing. For current pricing, please contact our payment experts:
www.payon.com/contact

Collecting payments

No

Distributing payments

No

Fraud prevention (measures)

Active Payment Method Selection, device fingerprinting, IP geolocation, semantic customer


validation, algorithmic and database account validation, velocity checks, payment type and ticket
size restrictions, plausibility checks, correlation checks, fraud-detection algorithms, authentications
methods, AVS verification, 3D Secure (Verified by VISA, MasterCard SecureCode, AmEx Safekey),
OneClickSafe, additional third-party checks.

Fraud prevention partners

More than two dozen risk connectors, including: ReD, ThreatMetrix, Kount, Payprotect, Datacash,
Schufa, Telego, Deltavista, Deutsche Post Address, Intercard, Creditreform Boniversum, Arvato
Infoscore.

Credit management (services)

N/A

Other services

Open Payment Platform, ecommerce gateway, MOTO ready to use call-center solutions,
COPYandPAY widget-based payment forms, automated merchant boarding, sophisticated
monitoring system, profit optimized risk management, customizable white-label services,
tokenization solutions, business intelligence service with flexible data analysis tools, recurring
billing services with ready-to-use, PCI compliant stored billing plan implementation, modular
payment gateway enabling global payment processing for payment providers via one RESTful API.

Third parties

No

Technology

182

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Open Payment Platform based on RESTful API architecture

Security

PAY.ON is PCI DSS Level 1 Certified, and offers state-of-the-art payment infrastructure according
to best practice security standards. PAY.ON clients are automatically PCI DSS compliant when
processing through the PAY.ON platform.

ONLINE PAYMENTS MARKET GUIDE 2015

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YOUR PAYMENT
GATEWAY
TO THE WORLD
EXPAND YOUR INTERNATIONAL FOOTPRINT AND REDUCE FRICTION IN
GLOBAL PAYMENTS WITH PAY.ONS SCALABLE, FLEXIBLE, AND SECURE
OPEN PAYMENT PLATFORM.
PAY.ONs RESTful open API provides a single integration point and access to
PAY.ONs global payment network of alternative payment methods, local
acquirers, and external risk checks, plus an architecture that can be leveraged
by developers to build their own payment apps and features.

SIMPLE
INTEGRATION

SALES@PAYON.COM

FLEXIBLE
ARCHITECTURE

SECURE
PLATFORM

+49 89 45230 00

PAYMENT FOR YOUR ONLINE SHOP


Why complicate matters?
You are looking for the ideal payment solution for your
online store? You want a partner who can handle your
entire payment process in an easy and automated way
via one single platform? For both you and for your
customers? Then PAYONEs payment solutions are
the right choice for you.

Request your quote now!


Phone +49 431 25968 400
sales@payone.de
www.payone.de

All payment methods for successful e-commerce


Integrated risk management
Fully automated and on a single platform
Simple integration thanks to genuine PlugnPay
Only pay for what you actually use

Company

PAYONE GmbH
PAYONE is one of the leading bank-independent payment service providers in Europe. The modular
platform is a SaaS solution designed to provide companies with an automated processing for all
payment transactions in ecommerce. PAYONE was founded in 2002 and has more than 2,500
ecommerce customers from different industries and countries.

Website

www.payone.de

Keywords for online profile

PSP, payment gateway, online payment, payment processing, online shop, PCI DSS, ecommerce,
integrated risk and debtor management

Contact

sales@payone.de, +49 431 25968-400

Geographical presence

Europe

Market segment(s)

Retail, Digital Content, VoD, Paid Services, Gaming, Ticketing, Other

Active since

2002

Service provider type

Payment service provider

Payment methods
Credit cards

AmEx, JCB, Visa, MasterCard, Diners Club, Discover

Debit cards

Bancontact/Mister Cash, Maestro, Visa electron, Dankort, Laser, Delta, Carte Bleue, CartaSi,
Postepay, Visa Debit, Carte Bancaire, CartaSi, Carte Bleue etc.

Pre-paid cards

Please contact PAYONE for more information.

Online banking

giropay, SOFORT Banking, iDEAL, eps electronic payment standard, PostFinance E-Finance,
Przelewy24

E-wallet

PayPal

Mobile / SMS / IVR

PAYONE In-App Payment SDK for iOS, Android and Windows Phone.

Alternative payment methods

Virtual currency (credits) in online games

Offline

Bank transfers in most European countries, prepayment, cash on delivery, invoice.

Connected companies (#)

More than 2500.

Companies PSP is connected to

Please contact PAYONE for a complete list of connected processors, acquiring banks and other
partners.

Settlement currencies (acquirers)

Worldwide

Services
Unique selling points

Software-as-a-Service solution, all payment methods for successful ecommerce, integrated risk
management, simple integration thanks to genuine PlugnPay; only pay for what you actually use;
payment expertise for more than 10 years; highest security standards, customer service by highly
experienced and specialised employees, annual multi-billion EUR clearing volume.

Core services

Payment platform for online payment processing, risk and debtor management, invoicing and
subscription handling.

Pricing

Interested merchants always get an individual offer that combines our services in a package
perfectly fitting the needs.

Collecting payments

Please contact PAYONE for more information.

Distributing payments

Please contact PAYONE for more information.

Fraud prevention (measures)

PAYONE offers comprehensive risk checks and automatically analyses all payment processes in
the background to detect potential fraud patterns and risks of non-payment. We provide you with
a variety of checks to minimise payment defaults and fraud. Address checks, bank account check,
BIN check
BIN country filter, credit assessments, credit card check
IP check, IP country filter, POS lock file, velocity check

Fraud prevention partners

Please contact PAYONE for a complete list of connected partners.

Credit management (services)

Yes, via partner, but fully integrated.

COMPANY PROFILES

185

Other services

Standardised extensions and a large number of interfaces allow an easy integration of the leading
ecommerce systems to the PAYONE platform. Software development kits for integration with PHP
and Java applications, premium customer service, consulting services including workshops and
trainings.

Third parties

The PAYONE platform is developed and maintained in-house.

Technology

186

Direct connections

Yes

Batch processing

Please contact PAYONE for more informations

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes. Full customisable in look and feel, supporting one-click shopping, multi-language, split
payments and many other features.

Interface

Four different interfaces, including an https-based server API for platform-independent serverto-server communication, a client API for AJAX-style integrations, a fully customizable virtual
terminal with automatic redirect capabilities, as well as a telesales interface for manual transaction
processing. In-App Payment SDK available for iOS, Android and Windows.

Security

PCI DSS Level 1 certified, SSL/TLS 1.2, ECDH, PFS, ISO27001 certified datacenters

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Paytrail Plc
Paytrail Plc is the leading online payment service provider in Finland. We co-operate with banks
and other financial institutions as well as software service providers enabling more efficient online
payments. Our payment service offers a straightforward solution for companies, organizations and
consumers. We are part of Nets.

Website

www.paytrail.com

Keywords for online profile

payment gateway, PSP, online payments, ecommerce, alternative payments, finland, online
shopping

Contact

sales@paytrail.com, Tel. +358 207 181 824

Geographical presence

Regional: Europe

Market segment(s)

From Global 2000 companies to SMEs and non-profits. Physical and intangible goods, digital
content and gaming.

Active since

2007

Service provider type

Payment service provider

Payment methods
Credit cards

JCB, Visa, MasterCard, Diners

Debit cards

Visa, Visa Electron, MasterCard

Pre-paid cards

More information available upon request.

Online banking

Yes

E-wallet

Paytrail account, PayPal

Mobile / SMS / IVR

More information available upon request

Alternative payment methods

Klarna, Collector and Jousto invoice and installment payment services.

Offline

More information available upon request.

Connected companies (#)

About 350 ecommerce platform service provider partners, 20 payment method provider partners
and 10 distribution partners across Europe.

Companies PSP is connected to

20 payment method provider partners and 10 distribution partners.

Settlement currencies (acquirers)

EUR. Settlements allowed to non-EUR accounts, too.

Services
Unique selling points

Connecting you to 5 million Finnish consumers. Offer each customer their preferred payment
method. We provide epayments to all Finnish banks, credit cards, invoice and installments and
Paytrail account. Paytrail account is the only wallet you will need for selling in any channel.
Seamless buying experience anywhere.

Core services

Online payment processing, merchant account, collection, settlements, reconciliation, automated


accounting reports, fraud prevention, cross border transactions, Paytrail account

Pricing

For merchants: monthly fee EUR 59 and transaction fees. No opening or setup fee. For consumers,
Paytrail account is completely free. For detailed pricing, visit: http://www.paytrail.com/en/pricing

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Fully automated risk analysis and control platform with over 100 checks included in the monthly
fee. Anti Money Laundering (AML) measures, IP geolocation, credit scoring, address verification,
VISA CVV2 and MasterCard CVC2, Verified by VISA, MasterCard SecureCode, blacklisting, strong
authentication, statistical transaction analysis and much more.

Fraud prevention partners

More information available upon request.

Credit management (services)

Payment guarantee, invoicing and installment payments (consumer credit service).

COMPANY PROFILES

187

Other services

Collection, settlements and reconciliation with any tax rate included. Fraud prevention included.
Multichannel customer service for merchants and consumers is available in English, Swedish and
Finnish. Direct connection to any payment method available with sellers own merchant account.

Third parties

More information available upon request.

Technology

188

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

HTTPS Post, Web services (SOAP and REST), Hosted embedded widget, Hosted page, Payment
page bypassing

Security

HTTPS, TLS/SSL, PKI

ONLINE PAYMENTS MARKET GUIDE 2015

Connecting You to
5 Million Finnish Consumers
www.paytrail.com

Take advantage of the high growth rates where PayU has local offices

Certified

Company

PayU
PayU is a leading online payment service provider in 16 high growth markets in Asia, Central and
Eastern Europe, Latin America, Middle East and Africa. Our local expertise enables us to provide
the best solutions for each market. PayU is the e-payments division of Naspers Ltd., a multinational
media group.

Website

www.payu.com

Keywords for online profile

PSP, online payments, PCI certified, multi-currency, global payment provier, alternative payments,
cross border payments, payment processing, fraud management, payment gateway

Contact

sales@payu.com

Geographical presence

Latin America, Europe, Middle East, Africa, Asia

Market segment(s)

All industries: retail, coupons, hosting, gaming, services, travel/airline, bill payment, and more

Active since

2002

Service provider type

Payment service provider, payment gateway, acquirer (in certain markets), alternative payment
method

Payment methods
Credit cards

AmEx, Visa, MasterCard, Diners, Elo and local co-branded cards.

Debit cards

Maestro, Visa electron and many local brands worldwide.

Pre-paid cards

Aiertel Money

Online banking

Many worldwide

E-wallet

PayU Money, PayU Wallet, PayPal, QIWI, BKM Express and many more.

Mobile/SMS/IVR

Call2Assist, Call2Monitor and Call2Pay

Alternative payment methods

More than 250 direct connections to local payments worldwide.

Offline

Bank transfers, Cash on Delivery and cash deposits. Cash payments in: OXXO, 7-eleven, Boleto,
Rapipago, Pagos Facil, Baloto, Efecty, BCP, Super Cash and many more.

Connected companies (#)

Numerous companies in each country.

Companies PSP is connected to

A wide variety of major banks, acquirers and technology providers.

Settlement currencies (acquirers)

EUR, USD, ARS, BRL, CLP, COP, CZK, HUF, INR, MXN, NGN, PEN, PLN, RON, RUB, TRY, ZAR

Services
Unique selling points

PayU is the PSP that provides local expertise in each of the high growth markets where we
operate. Our local expertise, fraud management and direct connections to more than 250 local
payment methods allows our merchants to increase their conversion in some of the most dynamic
markets in the world.

Core services

Online payment processing, managed fraud services, acquiring, multi-currency

Pricing

Flexible pricing options based on requirements and volumes. Please contact us for more
information, sales@payu.com.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Device fingerprinting, IP geolocation, multi-merchant purchase history, global validation checks,


Verified by Visa, MasterCard SecureCode, velocity checks, persistent cookies, data validation,
geographical checking, parameter format checking, transaction limit checking, risk scoring, geo
IP-origin check, black/white list, etc.

Fraud prevention partners

In-house fraud system, ThreatMetrix, F-Control and more.

Credit management (services)

Payment in instalments, online void and refund, payment guarantee, buyer guarantee in some
markets, connected to several credit institutions.

COMPANY PROFILES

191

Other services

Fraud prevention (anti-fraud module and control/monitoring transaction services), recurring and one
click payments using tokenization, customizable payment pages, mobile payment service, secured
IVR, wide range of option payments (credit cards, bank transfers, cash deposits), interface allows
buyers to choose which payment method they prefer, PCI-DSS compliant, customer service for
merchants and consumers, multi-language and multi currency interface, easy integration with open
source shopping carts, reporting, and many more.

Third parties

For more information, please contact us at sales@payu.com

Technology

192

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

API(WEBServices): RESTful (XML and JSON) WEBCHECKOUT: HTTP POST

Security

PCI-DSS Level 1 compliance, HMAC, HTTPS, Redundant network infrastructure, RSA, Secure
platform certified by McAfee and VeriSign, TLS/SSL, Tokenizer, WS-Security, TPM, Data Centers
SAS 70 type II certified, AES, MFA, IDS, WAF

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Payvision
Payvision, independent payment solution provider, offers Acquiring Banks and PSPs/ISOs a secure
PCI-DSS/PSD international payment processing platform. Payvision provides its customers 24/7
Support, 150+ transaction currencies and regional card settlement currencies, a high-end reporting
interface and a solid risk management solution. Payvision empowers its ecommerce partners to
make flawless cross-border transactions.

Website

www.payvision.com

Keywords for online profile

payment solutions provider, global acquiring, cross-border ecommerce

Contact

press@payvision.com / +31 2079 423 00 Netherlands office

Geographical presence

New York, Utah, San Francisco, Madrid, London, Berlin, Singapore, Tokyo, Hong Kong and Macau,
Auckland

Market segment(s)

Online payment processing, cross-border e-commerce, ecommerce

Active since

2002

Service provider type

Payment service provider, payment gateway, global card processor, acquirer

Payment methods
Credit cards

AmEx,VISA, CB, JCB, MasterCard, Diners, Discover, AirPlus

Debit cards

Maestro, Giropay, (e)Maestro, Visa Electron, Carte Bleue, Visa Debit, China UnionPay, Alipay,
VisaCPC, Debit MasterCard, Carte Bancaire

Pre-paid cards

No

Online banking

iDEAL

E-wallet

No

Mobile / SMS / IVR

Yes

Alternative payment methods

Yes

Offline

No

Connected companies (#)

More than 300 PSPs

Companies PSP is connected to

No

Settlement currencies (acquirers)

CAD, CHF, CZK, DKK, EUR, GBP, HUF, ISK, JPY, NOK, PLN, SEK, THB, TRY, USD, ZAR, AUD,
HKD, NZD, INR, MYR, SGD

Services
Unique selling points

With one of the fastest-growing global acquiring networks in the world, Payvision connects banks,
PSPs, ISOs and more than 5,000 web merchants, to ONE Global Acquiring Platform, processing
+100 million transactions a year. Through the launch of Acapture, a new global omnichannel PSP,
Payvision developed the most comprehensive payment solution available for boosting conversion
rates.

Core services

Global card processing, Domestic Global Acquiring, Underwriting, Fraud/Risk Monitoring,


Interchance Optimization, Multi currency processing, Innovative payment solutions, Alternative
Payments

Pricing

Blended rate, Interchange Plus etc

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Payvisions Best Practice internationally approved Underwriting Protocol, with a solid and secure
card payment processing platform and high-end Reporting Tool and the traditional measures
like: IP geolocation, multi-merchant purchase history, global validation checks, Verified by Visa,
MasterCard SecureCode, velocity checks, data validation, geographical checking, parameter
format checking, transaction limit checking, geo IP-origin check, black/white list).

Fraud prevention partners

In-house solutions

Credit management (services)

Credit transactions, receivables management, online void and refund

Other services

Mobile payment systems

Third parties

Acapture

COMPANY PROFILES

193

Technology

194

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

No

PSP pages (redirect model)

Yes

Interface

Web services using SOAP or HTTP POST, HTTP POST for CheckOut, file using Payvision API sent
via FTP for BatchProcessor

Security

PCI-DSS compliant

ONLINE PAYMENTS MARKET GUIDE 2015

Company

PostFinance AG
PostFinances e-payment solution makes it easy for you to collect online shop payments.
Customers pay for their purchases online or on their mobile phone, making invoices superfluous.

Website

www.postfinance.ch

Keywords for online profile

PSP, online, payment, Switzerland, virtual, shop, easy, connect

Contact

merchanthelp@postfinance.ch, +41 848 382 423

Geographical presence

Europe and more than 250 acquiring connections worldwide

Market segment(s)

Insurance, telecom, utilities, ticketing, charity, education, internet, publishers, auction, gaming,
retail, travel.

Active since

1906

Service provider type

Payment service provider, payment gateway

Payment methods
Credit cards

Visa, MasterCard, American Express, Diners Club, JCB, UATP, AirPlus, Cofinoga, Discover, Aurore

Debit cards

PostFinance Card, Maestro, Solo, Laser Card, Visa Electron, Bancontact/Mister Cash, Carte Bleue,
Dankort, EPS, iDEAL, ELV

Pre-paid cards

Wallie-card, paysafecard, Cash-Ticket

Online banking

PostFinance E-Finance, ING Hompeay, KBC, CBC, Dexia DirectNet, Centea, $

E-wallet

Checkout by Amazon, PayPal

Mobile/SMS/IVR

mPass; V.me

Alternative payment methods

RatePay, Klarna, AfterPay, Billpay, FIS; collect

Offline

Bank transfer, Payment by e-mail

Connected companies (#)

N/A

Companies PSP is connected to

N/A

Settlement currencies (acquirers)

N/A

Services
Unique selling points

Fraud Management Tools, support 24/7

Core services

Online payment processing, fraud prevention

Pricing

For current pricing, see our company profile at:


https://www.postfinance.ch/en/biz/prod/eserv/epay/providing/offer.html

Collecting payments

Yes

Distributing payments

N/A

Fraud prevention (measures)

PCI DSS, 3D Secure, blocking rules and filters, scoring module

Fraud prevention partners

Ethoca, Perseuss

Credit management (services)


Other services

Merchant account facilitation

Third parties

Specific industry solutions partners: Amadeus, Sabre Airline Solutions, Radixx, micros fidelio,
Ticketscript Shop software connectors: Magento, ePages, XT Commerce, OS Commerce

Technology
Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Saas

Security

HTTPS, SSL+, PCI-DSS Level 1

COMPANY PROFILES

195

DIFFERENT COUNTRIES.
DIFFERENT CULTURES.
DIFFERENT PAYMENT
PREFERENCES...

Payment preferences differ significantly from country to country Chinese consumers


prefer Alipay, Germans tend to use direct bank transfer, online banking is highly
popular with Finnish consumers and the majority of Dutch online shoppers chose to
pay via iDEAL. PPRO serves PSPs and financial institutions with acquiring, processing
and issuing services. By offering a vast range of alternative payment methods with
only one contract and one integration PPRO takes out the complexity of e-payment.

www.ppro.com

Company

PPRO Group
The PPRO Group, The Payment Professionals, offers PSPs and financial institutions a wide range
of international payment schemes enabling the processing of electronic payments on a global scale
through one contract and one simple integration. PPRO products and services span the entire
payments value chain from acquiring through processing and issuing.

Website

www.ppro.com

Keywords for online profile

payment gateway, electronic payment, payment processing, e-money, ecommerce, alternative


payments, acquiring, prepaid cards, payment hub

Contact

Phone +442030029170
Fax +442030029179
Email: info@ppro.com

Geographical presence

North America, Latin America, Europe, Middle East and Africa, Asia-Pacific

Market segment(s)

Retail, travel, gaming, auction, other

Active since

2006

Service provider type

E-money institution, payment service provider, payment gateway, acquirer, processor, issuer,
alternative payment methods, payment hub

Payment methods
Credit cards

Visa, MasterCard, Diners, Argencard, Cabal, Cencosud, Naranja, Nativa, Tarjeta Shopping,
MercadoLivre, Elo, Hipercard

Debit cards

Maestro, Girocard, Visa Electron, Bancontact/Mister Cash

Pre-paid cards

Viabuy, Crosscard, Fleetmoney, paysafecard, AstroPay Card, open and closed loop cards

Online banking

Instant Transfer, Giropay, iDEAL, EPS, P24, Poli, Postfinance, Trustpay, Safetypay, Astropay,
Trustly, FINNISH ONLINE BANKING, MyBank, Bank Transfer, Sofortberweisung, QIWI payout,
International pay-out, SEPA payout

E-wallet

Alipay, Skrill, QIWI, Pugglepay

Mobile/SMS/IVR

Bancontact/MisterCash, iDEAL, Instant Transfer; paysafecard, Poli, PugglePay, QIWI, Safetypay,


Skrill, Sofort, Trustly, Trustpay

Alternative payment methods

Alternative payment methods for more than 100 countries.

Offline

Boleto Bancario, Ticket OnLine, teleingreso, Multibanco, Pago Fcil, Rapi Pago, Ripsa, Cobro
Express, Link, Provincia NET, Davivienda, Efecty, Banamex, Santander Mexico, OXXO, Bancomer,
BCP, interbank, redpagos

Connected companies (#)

More than 65 payment methods.

Companies PSP is connected to

Alipay, Worldline, POS Transact, AIB Merchant Services, Trustpay, Allied Wallet, iDEAL,
MasterCard, Visa, Raberil, Worldpay, Computop, Sage Pay, eMerchantPay, SafetyPay, Lateral,
Safecharge, Qandy and many more.

Settlement currencies (acquirers)

AUD, BGN, CAD, CHF, CZK, DKK, EUR, GBP, HKD, HUF, JPY, NOK, NZD, PLN, RON, SEK, TRY,
USD, ZAR

Services
Unique selling points

Single contract and one integration for full range of international alternative payment schemes/
enabling pay-in through all popular payment methods/collection and reconciliation competency/
technical processing solutions via a single integration/FCA licensed e-money institution/full range
of issuing services for debit and prepaid cards/open- and closed loop cards/PCI compliance/Visa
and MasterCard Principal Member.

Core services

Aquiring, issuing, processing, e-money

Pricing

N/A

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Internal and external risk systems; manual monitoring done by risk experts.

Fraud prevention partners

Schufa, Infoscore, Intrum Justitia, Crif, Brgel, Experian, Keesing Technologies, Deutsche Post,
EOS, webID

COMPANY PROFILES

197

Credit management (services)

No

Other services

VIABUY, Crosscard, Fleetmoney, InstantTransfer

Third parties

NA

Technology

198

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Web services (specifications available upon request). Simple integration, unified interface for all
payment types

Security

HTTPS, TLS, PKI, PCI DSS

ONLINE PAYMENTS MARKET GUIDE 2015

Company

RatePAY GmbH
RatePAY offers local payment methods with payment guarantee such as open invoice, instalment
with real-time online check and instant acceptance, direct debit and prepayment in DE, AT and CH.
The company, based in Berlin, was founded in December 2009 and has more than 80 employees.
RatePAY is a member of the Otto Group.

Website

www.ratepay.com

Ownership

Parent company

Business model

Payment (with payment guarantee for merchants)

Keywords for online profile

online payment, payment guarantee, open invoice, instalment, SEPA direct debit, prepayment,
online shop, factoring

Contact

info@ratepay.com, +49 30 339 88 56-0

Geographical presence

Germany, Austria, Switzerland

Main client industries

Retail (fashion, living and accessoiries, food), travel

Active since

2009

Service provider type

Payment service provider, alternative payment methods, processor, business process outsourcing
(BPO)

Payment type
Debit card

N/A

Online Banking enabled Payment

N/A

E-wallet

N/A

After payment

More information available upon request.

Escrow

More information available upon request.

Prepaid

More information available upon request.

Other channels
Offline

More information available upon request.

Mobile

More information available upon request.

Online to offline

More information available upon request.

Services
Unique selling points

RatePAY is specialized on flexible and individual solutions. It covers preferred local payment
methods in DE, AT and CH with a 100% payment guarantee. Products can be chosen as all-in
package or module systems to fit specific needs. Furthermore white label and communication of
the merchants look and feel are offered.

Core services

Online payment processing, risk and fraud management, refunding to buyer, collection, dunning,
customer service.

Multi-currency/Dynamic currency
conversion

EUR, CHF

Chargeback/Refund options

Included. Chargebacks are not applicable anymore because of payment guarantee.

Buyer protection policy

Yes. Buyer pays after receiving order.

Pricing

Please contact us to get the best possible offer.

Fraud prevention (measures)/


Riskmanagement

Full risk management system including: data checks, credit checks, fingerprinting, velocity checks,
credit bureaus.

Fraud prevention partners

RiskIdent, own solution

Acceptation criteria (sign-up


process)

Merchant: KYC check; consumer: no registration, address and risk check.

Other services

Multichannel solution, modular solution, consulting

Future developments

Please contact the company for more information.

COMPANY PROFILES

199

Technology
Integration technology

XML

Integration support

API, Shop modules, payment service provider, ERP, payment page

Transactions volume

200

Number of transactions (per year)

N/A

Transactions value

Please contact the company for more information.

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Realex Payments
Realex Payments, a division of Global Payments Inc., is one of Europes leading payment solution
providers, processing in excess of GBP 23bn per annum on behalf of 13,000 clients. Over the
past decade, Realex Payments has established a strong reputation in the industry and amongst
its customers for expertise, payments knowledge and dedication to excellent customer service.
Itsclients include Virgin Atlantic, Paddy Power and Aviva.

Website

www.realexpayments.com

Keywords for online profile

payment gateway, online payments, mobile payments, payment processing, virtual terminal,
ecommerce, merchant account, acquiring

Contact

Dave Wills, UK General Manager and Sales Director. E-mail: dave.wills@realexpayments.co.uk

Geographical presence

Ireland, UK and mainland Europe

Market segment(s)

Provides services to a wide range of sectors including retail, insurance, gaming, finance, travel,
education, ticketing, utilities, entertainment, IT, healthcare, digital media and charity

Active since

2000

Service provider type

Payment gateway, merchant services

Payment methods
Credit cards

Visa, MasterCard, AmEx, CB, JCB, Diners, Discover

Debit cards

Visa Debit, Debit MasterCard, Maestro, Carte Bleue, Carte Bancaire

Pre-paid cards

Yes

Online banking

SOFORT Banking and iDEAL

E-wallet

PayPal Integration

Mobile / SMS / IVR

Integrated with a range of IVR providers

Alternative payment methods

PayPal, SOFORT Banking, giropay, iDEAL, ELV and access to a wider range on request.

Offline

No

Connected companies (#)

More than 200 acquirers

Companies PSP is connected to

Acquirers, ecommerce platforms, industry specific platforms, e.g. insurance, travel and airline
platforms, IVR solution providers, 3rd party fraud management solution providers

Settlement currencies (acquirers)

All major currencies.

Services
Unique selling points

A complete payment solution for telephone, online and mobile. Merchants can get their online
payments up and running quickly integration can be completed in less than five minutes. Expert,
award winning support and account management. Merchants get through to a payment expert
when they call not an IVR.

Core services

Online payment processing, telephone payment processing, responsive and customisable hosted
payment page, online reporting and reconciliation, card fraud management, card storage and
tokenisation, recurring payments, managed services, best in class customer service

Pricing

For current pricing see: www.realexpayments.com

Collecting payments

More information available upon request.

Distributing payments

Yes

Fraud prevention (measures)

Verified by Visa, MasterCard SecureCode, American Express Safekey, device fingerprinting, IP


geolocation, multi-merchant purchase history, global validation checks, velocity checks, pattern
checking, data validation, geographical checking, parameter format checking, transaction limit
checking, risk scoring, geo IP-origin check, blacklists, whitelists, greylists, proxy piercing, identity/
KYC checking, manual review queue, passive mode, Address Verification Service, CVN Checking

Fraud prevention partners

Provides access to third party fraud management solution providers.

Credit management (services)

No

Other services

Multi-currency, Dynamic Currency Conversion, dynamic routing

Third parties

Please contact us for detailed information

COMPANY PROFILES

201

Technology

202

Direct connections

On request

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

XML API (specifications on request), Hosted Payment Page

Security

PCI DSS 3.0 compliant. Audit passed for PCI DSS 3.1 will be 3.1 compliant after November 2015.

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Saxo Payments
Saxo Payments provides a secure web-based platform for cross border transfers and foreign
exchange services. Used by payment acquirers, payment service providers, FX brokers, e-wallets,
and alternative payment providers, the Saxo Payments Banking Circle provides a seamless conduit
for multi-currency bank transfers anywhere in the world.

Website

www.bankingcircle.com

Keywords for online profile

low cost, fast cross border global transfers

Contact

Miranda McLean mm@saxopayments.com

Geographical presence

Global

Market segment(s)

PSP, online payment, payment processing, cross-border payments, global payments, FX, Forex,
global transactions
multi-currency, PCI, ecommerce, alternative payments, afterpayments, processor, acquirer etc.

Active since

2013

Service provider type

Payment Service Provider

Payment methods
Credit cards

More information available upon request.

Debit cards

More information available upon request.

Pre-paid cards

N/A

Online banking

Transfers available in most countries and most currencies.

E-wallet

N/A

Mobile / SMS / IVR

N/A

Alternative payment methods

N/A

Offline

N/A

Connected companies (#)

N/A

Companies PSP is connected to

N/A

Settlement currencies (acquirers)

AUD,CAD, CHF, CZK, DKK, EUR, GBP, HRK, HUF, ILS, JPY, MAD, MXN, NOK, NZD, PLN, RUB,
SEK, TRY, USD

Services
Unique selling points

The Banking Circle provides a faster, more cost-effective way for businesses to make and receive
international payments. Cross-border transfers happen in seconds, at very low cost, in multiple
currencies and in a secure cloud-based environment. Members of the Banking Circle can offer
own-branded global banking services to their merchants.

Core services

Low cost cross-border transfers; fx trading

Pricing

For more details, please send an email to info@saxopayments.com

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

More information available upon request.

Fraud prevention partners

More information available upon request.

Credit management (services)

More information available upon request.

Other services

More information available upon request.

Third parties

More information available upon request.

COMPANY PROFILES

203

Technology

204

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

No

PSP pages (redirect model)

Yes

Interface

Web services, SOAP, XML (specifications available upon request).

Security

More information available upon request.

ONLINE PAYMENTS MARKET GUIDE 2015

WHY IS IT SO DIFFICULT

TO DO INTERNATIONAL BANK TRANSFERS?


It isnt with the Saxo Payments Banking Circle
International bank transfers in seconds, rather than days
Low transfer costs
Competitive FX rates

Find out more at bankcir.com

sales@securetrading.com
www.securetrading.com

+44 (0) 808 301 8549

WERE RIGHT WITH YOU


EVERY STEP OF THE WAY
Working with a new payment provider can sometimes feel like a
leap into the unknown. At Secure Trading we believe in forming
true long lasting partnerships with our clients, offering our extensive
experience to provide best-of-class managed services from a high
performance gateway, best-of-breed acquiring and cutting edge
cyber security solutions all under one roof.
You can now jump into payments with confidence.

ONE RELATIONSHIP | ONE PARTNER | ONE SOLUTION

Company

Secure Trading
Secure Trading, founded in 1997, is an integrated payments services company a single point of
contact for card acquiring, payment processing, PCI compliance and cyber security services.
With both card acquiring services and payment processing we provide businesses with a true endto-end payment solutions across the entire payments journey.

Website

www.securetrading.com

Keywords for online profile

payment gateway, PSP, online payment, payment processing, multi-currency, PCI, compliance,
cyber security, ecommerce, alternative payments, acquirer, merchant services, acquiring solutions,
end-to-end payment solutions, one stop shop, fraud management, multiple payment options,
optimised payment pages, cross-border merchant services, increase conversion rates, 100%
uptime record

Contact

sales@securetrading.com

Geographical presence

North America, Europe, Africa

Market segment(s)

Ecommerce, gaming, digital entertainment, government services and education, financial services

Active since

1997

Service provider type

Integrated payments services company a single point of contact for card acquiring, payment
processing, PCI compliance and cyber security services.

Payment methods
Credit cards

AmEx, MasterCard, VISA, Discover, JCB

Debit cards

Maestro, Visa Electron, Visa Debit, Visa CPC, Debit MasterCard

Pre-paid cards

Ikano Card, AstroPay Card

Online banking

Yes

E-wallet

PayPal

Mobile / SMS / IVR

More information available upon request

Alternative payment methods

paysafecard, Sofort, EPS, Giropay,POLi, AliPay, Yandex, QIWI

Offline

More information available upon request.

Connected companies (#)

#30 Acquirers

Companies PSP is connected to

More information available upon request.

Settlement currencies (acquirers)

AUD, CAD, CHF, CZK, DKK, EUR, GBP, HKD, JPY, NOK, NZD, PLN, SEK, USD, ZAR, HUF, RUB

Services
Unique selling points

One relationship, one partner, One stop shop, Chargeback and fraud management, Multiple
payment options, Mobile optimised payment pages, Cross boarder merchant services, Accepting
payments all over the world, Increase conversion rates, 100% uptime record, PCI DDS compliance,
Multi-currency payment solutions, Call centre and Interactive Voice Response (IVR), Online
payment gateway, Virtual terminal card processing, Card store and tokenisation, Merchant account
services, Online accounting and back-office reconciliation, International logistics and shipping.

Core services

Card acquiring, payment processing, PCI compliance and cyber security services.

Pricing

Competitive Rates / Cost Transparency

Collecting payments

No

Distributing payments

No

Fraud prevention (measures)

Device fingerprinting, IP geolocation, multi-merchant purchase history, global validation checks,


Verified by Visa, MasterCard SecureCode, velocity checks, persistent cookies, data validation,
geographical checking, parameter format checking, transaction limit checking, risk scoring, geo
IP-origin check, black/white list, etc.

Fraud prevention partners

ReD (ACI)

Credit management (services)

More information available upon request.

Other services

Cyber-security

Third parties

More information available upon request.

COMPANY PROFILES

207

Technology

208

Direct connections

Yes

Batch processing

More information available upon request

Per order processing

More information available upon request

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Web services, XML

Security

HTTPS, SSL+, PKI

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Smart2Pay
Smart2Pay is a licensed Payment Service Provider offering alternative, non-reversible online
payment methods (online bank transfer, wallets, vouchers, mobile payments, cards). With a new
frictionless payment product Smart2Pay allows Merchants to collect funds from Customers locally
in over 80 countries by signing 1 single contract and 1 technical interface that can be completed
within 1 week.

Website

www.smart2pay.com

Keywords for online profile

PSP, online payments, alternative payments, frictionless payment product, guaranteed, flexible,
custom pay-flows

Contact

James Flinterman CEO, james@smart2pay.com


Stefan Iancu CTO, stefan@smart2pay.com

Geographical presence

Worldwide, Latin America, EMEA, Asia/Pacific, North America

Market segment(s)

Games, airlines, travel, retail, general ecommerce

Active since

2002

Service provider type

Payment service provider, licensed payment institution

Payment methods
Credit cards

MasterCard, Visa, JCB, AmEx, Diners, Sorocred, Aura, Hipercard, etc.

Debit cards

CarteBleue, Maestro, Visa Electron, Discover, eTranzact, Verve etc.

Pre-paid cards

OneCard, CashU, paysafecard, ToditoCash, Webmoney Japan, Mangirkart etc.

Online banking

Yes (currently we cover over 50 different countries).

E-wallet

Yes, various.

Mobile / SMS / IVR

Mobile options in 80 countries, Mobile Money, Globe GCash, Beeline, MTS, Megafon, Tele2,
Indosat Dompetku, T-Cash etc.

Alternative payment methods

Over 170 payment methods in over 80 countries.

Offline

Bank transfer in more than 30 countries.

Connected companies (#)

#35 acquirers.

Companies PSP is connected to

Various

Settlement currencies (acquirers)

Various

Services
Unique selling points

1 contract + 1 Interface = Collect Worldwide. Smart2Pay lets you collect payments from over
70countries; easy, secure and reliable, with only 1 contract and a 1 week integration.

Core services

Online payment processing with: Customizable Payment Flows, Mobile Optimized Payment Pages,
Customizable UI, Dynamic Currency Conversion, Fraud Prevention, Conversion Analytics. Our
in-house IT team will provide flexibility like no other. For easy integration we also offer Magento,
OpenCart, PrestaShop plugins and PHP/SDK for custom framework integration.

Pricing

Pricing is negotiated on a case by case basis.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

IP geolocation, multi-merchant purchase history, global validation checks, data validation,


parameter format checking, transaction limit checking, risk scoring, geo IP-origin check, black/
white list, etc.

Fraud prevention partners

Please contact us for detailed information.

Credit management (services)

Credit management is not available.

Other services

Please contact us for detailed information.

Third parties

Please contact us for detailed information.

COMPANY PROFILES

209

Technology

210

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Web services, SOAP, HTML FORM POST, REST (specifications available upon request).

Security

HTTPS, SSL+, hash strings, inhouse developed tools

ONLINE PAYMENTS MARKET GUIDE 2015

Company

SolidTrust Pay
SolidTrust Pay launched in April, 2006 and has grown to serve millions of clients worldwide. In
addition to providing exceptional EWallet services, SolidTrust provides direct merchant credit card
processing accounts designed for the online entrepreneur.

Website

www.solidtrustpay.com

Keywords for online profile

payment scheme, payment gateway, PSP, online payment, payment processing, ewallet, credit
card, online checkout
multi-currency, PCI, ecommerce, alternative payments, afterpayments, processor, acquirer etc.

Contact

accountsmanager@solidtrustpay.com

Geographical presence

North/Latin America, Europe, Middle East/Africa, Asia/Pacific

Market segment(s)

Auction, network and affiliate marketing, entrepreneur, MLM, online business start ups, retail, travel,
investment, advertising, other

Active since

2006

Service provider type

Payment service provider, payment gateway, processor

Payment methods
Credit cards

Visa, MasterCard

Debit cards

Bancontact/Mister Cash, Maestro, Giropay, BCMC, (e)Maestro, Visa Electron, Dankort, Laser, Delta,
Carte Bleue, CartaSi, Postepay, Visa Debit, BancNet, PPS, China UnionPay, Alipay, 99Bill, eNETS,
MEPS, Poli, Visa CPC, Debit MasterCard, Carte Bancaire, CartaSi, Carte Bleue, Chinese debit
cards, Carte Blanche, etc.

Pre-paid cards

STPay Prepaid MasterCard

Online banking

No

E-wallet

Yes

Mobile/SMS/IVR

Yes

Alternative payment methods

Bitcoin

Offline

N/A

Connected companies (#)

3 acquirers

Companies PSP is connected to

Inatec, Webinc, Payspark, EFT Canada, CHEXX.com, GB3, iSignThis, Echeckit.com,


iPayoptions.com

Settlement currencies (acquirers)

EUR, GBP, USD, NZD, CAD, AUD

Services
Unique selling points

Well established, long running PSP and eWallet companies (9 years), most withdrawal options,
humanitarian contribution (donations to charity, etc.).

Core services

Online payment processing, eWallet services.

Pricing

For current pricing, see our company profile at: https://solidtrustpay.com/fees.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

device fingerprinting, IP geolocation, multi-merchant purchase history, global validation checks,


Verified by Visa, MasterCard SecureCode, data validation, geographical checking, parameter
format checking, transaction limit checking, risk scoring, geo IP-origin check, black/white list,
secure third-party SCA, third-party and first-party document analysis.

Fraud prevention partners

GB3, iSignThis

Credit management (services)

Credit card payments available, card void and refunds, customer satisfaction service is product/
service not received.

Other services

STPay Merchant marketplace, referral downline, Member Beneficiary Program, Member Care
Assistance Program, Affiliate Program, Emergency Funding Services, TrustCard VIP Member
Program, Buyer Protection Services

Third parties

N/A

COMPANY PROFILES

213

Technology

214

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Web services, SOAP, XML (specifications available upon request)

Security

HTTPS, SSL+, PKI

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Transaction Network Services Inc


TNS has been a trusted provider to the Payments industry for over 20 years. TNS broad portfolio
of solutions includes secure resilient transaction delivery, encryption, and tokenization services
used by the top banks and processors globally. TNS provides innovative managed payment
network services and connectivity to white-label partners and leading international merchants.

Website

www.tnsi.com

Keywords for online profile

payment network, payment processing, PCI DSS, alternative payments, connectivity, SIM
management, encryption, tokenization

Contact

solutions@TNSI.com

Geographical presence

North/Latin America, Europe, Asia/Pacific

Market segment(s)

Banks, financial institutions, ISOs, acquirers, processors, PSPs, merchants, gaming, retail, travel,
alternative payments, other

Active since

1990

Service provider type

Full service payment provider

Payment methods
Credit cards

American Express, VISA, JCB, MasterCard, Diners Club International, Discover, China UnionPay

Debit cards

Maestro, Visa Electron, Carte Bleue, Visa Debit, MasterCard Debit

Pre-paid cards

None

Online banking

No

E-wallet

Masterpass, PayPal, Visa Checkout

Mobile / SMS / IVR

Mobile and IVR

Alternative payment methods

PayPal, GiroPay, Sofortbanking

Offline

PayPal, GiroPay, Sofortbanking

Connected companies (#)

Network connectivity to over 400 major acquirers, processors, banks and card schemes globally.

Companies PSP is connected to

Connectivity to 3rd party fraud providers, DCC providers, and other value-added services.

Settlement currencies (acquirers)

Support for 140 currencies (settlement currencies dependent on acquirers).

Services
Unique selling points

TNS enables you to reach the global payments marketplace with just one connection. TNS offers
a complete array of secure, reliable and flexible network connectivity and value-added services
that simplify complex payments infrastructures, enabling you to conduct business with virtually any
partner anywhere in the world.

Core services

TNS range ofconnectivityandmanaged payments servicesenable merchants to securely process


transactions with major banks, acquirers and processors. We are at the cutting edge of new
technologies and include encryption and tokenization solutions within our portfolio, and we can
accommodate new forms of payment, such as mobile wallets, private label and loyalty schemes.

Pricing

For further information e-mail solutions@TNSI.com.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Built-in support for 3DS, AVS, CSC/CVV. Integration to 3rd party fraud management services.
Support for EMV, Point-to-Point Encryption (P2PE,) and tokenization.

Fraud prevention partners

Accertify, VeriFone, Ingenico

Credit management (services)

No

Other services

Tokenization, Dynamic Currency Conversion, reporting API, merchant boarding API, batch
processing, POS, encryption, Host-to-host connectivity, ATM connectivity, mobile POS terminal
SIMs, roaming SIM management

Third parties

N/A

COMPANY PROFILES

215

Technology

216

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

REST-based web services API

Security

HTTPS, SSL+, PKI, PCI DSS certified backbone network, dedicated security and risk teams, file
integrity monitoring, industry standard encryption, Intrusion Detection Systems (IDS), vulnerability
management

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Trustly
Trustly is a Swedish technology company, developing and selling online and mobile payment
solutions for both B2C and P2P payments. Trustly is a Pan-European online banking payment
solution with coverage in 29 European markets. Trustly is a licensed payment institution under
thesupervision of the Swedish Financial Supervisory Authority.

Website

trustly.com

Ownership

Privately owned by founders, Alfvn & Didriksson firm, Bridgepoint Development Capital,
employees and private investors

Business model

Payment service developer and provider, PSP

Keywords for online profile

mobile payments, online payments, e-payments, payment initiation services, P2P payments, OBeP,
online banking payments

Contact

Stefan Backlund, Head of Marketing & Communications

Geographical presence

Austria, Germany, Norway, Belgium, Greece, Poland, Bulgaria, Hungary, Portugal, Croatia, Ireland,
Romania, Czech Republic, Italy, Slovakia, Cyprus, Latvia, Slovenia, Denmark, Lithuania, Spain,
Estonia, Luxembourg, Sweden, Finland, Malta, UK.

Main client industries

Ecommerce, marketplaces (sharing economy), travel, financial services, gaming

Active since

2008

Service provider type

Bank payment service developer, payment provider, PSP

Payment type
Debit card

No

Online Banking enabled Payment

Yes

E-wallet

No

After payment

No

Escrow

Yes

Prepaid

No

Other channels
Offline

No

Mobile

Yes

Online to offline

Yes

Services
Unique selling points

Safety Secure bank payments with strong authentication, no chargeback risk once settled.
Convenience Easy sign-up, multiple markets and banks, integrated reconciliation through one
integration and agreement, mobile ready.
Increased conversion The preferred payment method in many countries, recovers transactions
denied due to credit or debit limits on cards, the customer pay without leaving the merchants
website.

Core services

Online payment processing, reconciliation information (web), risk-assesments with P2P payments.

Multi-currency/Dynamic currency
conversion

EUR, SEK, NOK, DKK, GBP, USD, PLN

Chargeback/Refund options

Yes

Buyer protection policy

No

Pricing

Per transaction percentage and or fixed, varies depending on volume, for further details please
contact us.

Fraud prevention (measures)/


Risk management

Full risk management system including: Data Checks, Comparison Checks, Velocity Checks,
Financial background checks etc.

Fraud prevention partners

None, all inhouse.

Acceptation criteria (sign-up


process)

Typically standard KYC information is gathered (ID check, company registry, bank account number
verification etc.) Each customer is assessed individually.

Other services

Additional financial services, currency handling, remmittance

COMPANY PROFILES

217

Future developments

Additional coverage markets and banks, all available directly to merchants, no need to
re-integrate. Future authentication methods added seamlessly.

Technology
Integration technology

All covered markets native languages supported.

Integration support

API manual online, designated integration support, plugins for web shops

Transactions volume

218

Number of transactions (per year)

12 million

Transactions value

More than 3 billion EUR since introduction in 2008.

ONLINE PAYMENTS MARKET GUIDE 2015

FINANCIAL
TECHNOLOGY FOR
MORE THAN 20,000
CUSTOMERS.
Wirecard is the leading
specialist for payment
processing and issuing.

wirecard.com

Company

Wirecard AG
Wirecard AG is one of the worlds leading independent providers of outsourcing and white label
solutions for electronic payment transactions. Wirecard`s global multi-channel platform bundles
international payment acceptances, methods and fraud prevention. Wirecard provides companies
with an end-to-end infrastructure for issuing products, including the requisite licenses for card and
account products.

Website

www.wirecard.com

Keywords for online profile

ecommerce, mobile payment, risk management, acquiring, issuing, credit cards, online banking,
POS payment processing

Contact

sales@wirecard.comI+49 89 4424 1400

Geographical presence

Europe, Middle East/Africa, Asia/Pacific

Market segment(s)

Airlines, hotels, travel sites, travel agents, cruise lines, mail order, TV shopping, brick and mortar
shops, direct sales, distributions, downloads (music/software), sports betting, poker, casino,
games, MNO, financial institutions

Active since

1999

Service provider type

Payment service provider, global payment gateway, issuing processing platform, mobile wallet
platform, acquirer, processor, issuer, bank, call center

Payment methods
Credit cards

Visa, MasterCard, American Express, JCB, UATP, Diners International/Discover, UnionPay

Debit cards

Maestro, (e)Maestro, Visa Electron, Dankort, Laser, Delta, Carte Bleue, CartaSi, Postepay, Visa
Debit, UnionPay, Chinapay, Visa CPC, Debit MasterCard, Carte Bancaire, Chinese debit cards,
Carte Blanche and more. For more information contact us.

Prepaid Cards/Vouchers

mywirecard 2go Visa, mywirecard MasterCard, paysafecard, Boleto Bancrio

Online Banking

giropay, SofortBanking, eps, Bancontact/MisterCash, iDEAL, Przelewy24, eKonto/ePlatby, POLi,


Maybank2u, CIMB Clicks, Debito Bradesco, Tatrapay, Transferencia Bradesco, Trustly, Skrill Direct,
Euteller and more. For more information contact us.

(E-) Wallets

PayPal, Skrill Digital Wallet, Moneta.ru, YandexMoney, MercadoPago, Alipay (Cross-border),


MasterPass, ePay.bg, and more. For more information contact us.

Direct Debit/Credit Transfers

SEPA Direct Debit, Guaranteed Direct Debit, SEPA Credit Transfer

Mobile / SMS / IVR

paybox, Yapital, mpass, PremiumSMS

Offline

Payment on invoice, payment in advance, payolution, guaranteed payment on invoice, Guaranteed


Installment Payments, Klarna, wire transfer to virtual bank accounts, bank transfers worldwide and
more. For more information contact us.

Connected companies (#)

Wirecard Bank AG (Multi-Regional Acquirer) and all major acquirers worldwide, partnerships or
interfaces with industry-specific service providers.

Companies PSP is connected to

All major acquirers and banks worldwide.

Settlement currencies (acquirers)

All relevant transaction and settlement currencies.

Services
Unique selling points

Centralization of payment transactions from many and various distribution and procurement
channels on a single platform, combination of software technology and bank products, global
gateway for all services, covering the whole value chain with own bank (multi-brand acquirer),
multi-national payment acceptance and settlement, innovative software-based banking products
(SCP-virtual credit cards, payout cards, co-branded cards).

Core services

Payment gateway, online/mobile/POS/onboard payment processing, fraud and risk management,


batch processing, in- and outbound connectors, key management and protocol conversion, virtual
terminal, acquiring services, payment acceptance, issuing of innovative card-based payment
solutions and prepaid cards, mobile payment solutions, co-branding solutions, financial services
like banking, currency management, reconcilliation, call center.

Pricing

Flexible prizing models, depending on requirements and volumes.

Collecting payments

Yes

COMPANY PROFILES

221

Distributing payments

Yes

Fraud prevention (measures)

Full risk management system including data analytics, automated pattern detection, decision logic,
case management, transaction check (account validation, address verification, hotlists (blacklists,
whitelists, graylists), velocity checks, IP geolocation, IP/BIN check), consumer check (credit
scoring, address validation and verification, age verification, identity check, sanction list screening),
3D-Secure (Verified by Visa, MasterCard SecureCode, CUP-Secure) CVC verification, device
fingerprinting, AVS and more.

Fraud prevention partners

Interfaces to various 3rd party providers.

Credit management (services)

Purchase on credit, credit scoring, credit control, receivables management, online void and refund,
purchase on credit, factoring, payment guarantee, etc.

Other services

Strategy management and decisioning solutions, consumer identification and credit rating
(integration to various credit agencies), Point-of-Sale payment processing and acquiring, call
center services (stationary, virtual and hybrid), issuing bank: co-branded prepaid cards (Visa and
MasterCard), payout cards, Virtual Card Supplier Payout Solution.

Third parties

Extended industry-specific integration options.

Technology

222

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Web services, REST, SOAP, HTTPS/XML, ISO8583, various batch file formats (specifications
available upon request).

Security

HTTPS, SSL+, sFTP, PGP encryption

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Worldline
Worldline is the European leader and a major global player in the payments and transactional
services industry. Worldline contributes to provide a seamless and innovative transactional
experience to the end users. Worldline activities are organised around three axes: merchant
services and terminals, mobility and e-transactional services, financial processing and software
licensing.

Website

www.worldline.com
www.worldline.com/blog
www.worldline.com/twitter
www.worldline.com/youtube

Keywords for online profile

payment scheme, payment gateway, PSP, online payment, payment processing, multi-currency,
PCI, ecommerce, alternative payments, processor, acquirer, multi-channel, cross-channel, trust,
authentication, digital, e-acquiring, marketplace

Contact

infoWL@worldline.com

Geographical presence

Operating in over 17 countries: France, Spain, UK, Benelux, Germany, Austria, India, Asia Pacific,
Latin America

Market segment(s)

Banking, financial services and insurance, telecom and media, industry utilities and services, public
sector and health, retail, transport

Active since

1996

Service provider type

Payment service provider, payment gateway, alternative payment method, acquirer, processor

Payment methods
Credit cards

MasterCard, Visa, CB, AmEx, JCB, Cofinoga, Aurore, Diners

Debit cards

Bancontact/Mister Cash, Maestro, Giropay, BCMC, Visa Electron, Carte Bleue, Visa Debit, China
UnionPay, Debit MasterCard

Pre-paid cards

Chque Djeuner

Online banking

iDEAL, BVN, MyBank, Sofort, EPS

E-wallet

PayPal, Paylib, V.me, MasterPass

Mobile / SMS / IVR

Mobile, SMS and IVR

Alternative payment methods

Bitcoins, Credit Transfer, Direct Debit, online credit (1euro.com)

Offline

Payment terminals. For more information please contact us

Connected companies (#)

Over 50,000 merchants

Companies PSP is connected to

Acquirers, PSPs, ecommerce solution

Settlement currencies (acquirers)

EUR, USD, GBP, CHF, CNY, CZK, DKK, EEK, EUR, HUF, ISK, LTL, LVL, NOK, PLN, SEK, SKK, TND,
TRY, UAH

Services
Unique selling points

At Worldline, connecting and securing transactions is what we do every day. With our technological
expertise we connect the worlds of electronic banking, mobile and ecommerce, and provide
connected services via secured networks that are available almost everywhere.

Core services

Payment transaction processing, acquiring/issuing, online payment, credit and debit cards
management, payment terminals, connected machines, connected cars, omni-commerce,
innovative payments, SEPA, eBanking, call centre, prepaid cards

Pricing

For more details, please contact us.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

IP geolocation, 3D Secure, Verified by Visa, MasterCard SecureCode, SafeKey, geo IP-origin check,
black/white list, velocity checks, geographical checking, transaction limit checking, risk scoring,
multi-merchant purchase history, data validation, parameter format checking, global validation
checks

Fraud prevention partners

ReD, Arvato Infoscore

Credit management (services)

Payment in instalments, deferred payment, split payments

COMPANY PROFILES

223

Other services

One-click payment, payment page customization, eDCC, cash management, reporting, mobile
devices, secured IVR

Third parties

This information is not yet available

Technology

224

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

Web services, SOAP, Rest, XML, API

Security

HTTPS, SSL+, PKI, tokenizer

ONLINE PAYMENTS MARKET GUIDE 2015

Company

Worldpay
Worldpay is a leader in global payments, providing a broad range of technology-led solutions to its
merchants, enabling them to accept 326 alternative payment methods, across multiple payment
channels, nearly anywhere in the world.

Website

www.worldpay.com

Keywords for online profile

ecommerce, omni-channel payments, card payments, online payment gateway services, mobile
payments, treasury services, data and analytics, payment optimisation

Contact

+44 (0)845 301 6251


Local numbers available on www.WorldPay.com

Geographical presence

Global: North America, LATAM, APAC and EMEA

Market segment(s)

Airlines, digital content, travel, video games, gambling, retail

Active since

1993

Payment methods
Credit cards

Visa (incl. VbV), MasterCard (incl. MCSC), American Express, Diners, JCB, Discover and UnionPay.

Debit cards

Visa Debit, Visa Electron, Debit MasterCard, UnionPay, Paga Verve, MisterCash and Carte Bleue/
Carte Bancaire.

Pre-paid cards

paysafecard, Astropaycard, Neosurf, Postepay, Ticketpremium, Toditocard.

Online banking

Real Time Bank Transfer, iDEAL, Sofort Banking, Giropay, Poli, Przelewy 24, BPay, SafetyPay,
Unionpay, Euteller, Dineromail, Trustly, eNets

E-wallet

Alipay, PayPal, QIWI, YandexMoney, CashU, MasterPass, Moneta, Webmoney, Paga Wallet

Mobile / SMS / IVR

Apple Pay, Boku

Other alternative payment methods

Klarna, SEPA payments, Boleto Bancario

Connected companies (#)

More 50 acquirers

Companies PSP is connected to

More 50 major acquirers and banks worldwide

Settlement and gateway currencies

AUD, CAD, DKK, CZK, EUR, HKD, HUF, JPY, NZD, NOK, PLN, SGD, ZAR, SEK, CHF, GBP, AED,
USD

Services
Unique selling points

Worldpay is one of the few global businesses able to offer functionality in most aspects of payment
acceptance, whether in-store, online or on a mobile device, by providing access to a global
payments network through an integrated, agile, secure, reliable and highly scalable proprietary
global payments platform. Worldpay serves a diverse set of merchants across a variety of endmarkets, sizes and geographies. On a typical day, it processes approximately 31 million mobile,
online and in-store transactions worldwide, offering access to 326 payment methods in 126
transaction currencies across 146 countries, while supporting approximately 400,000 merchants,
including large enterprises and domestic corporates and approximately 377,000 small and medium
sized businesses. The Company also partners with innovative and fast-growing ecommerce
businesses, including many of the worlds most renowned and dynamic online brands.

Core services

Payment gateway, acquiring, foreign exchange, alternative payments, fraud and risk management

Pricing

Based on requirements. Visit www.WorldPay.com for further information.

Collecting payments

Yes

Distributing payments

Yes

Fraud prevention (measures)

Tiered risk management services to suit merchants from all industry sectors including: risk
management experts to assist merchants in creating fraud prevention strategies, screening
systems to automate detection and prevention in real-time; age and identity checking; Industry
specific checks (for example airlines and travel); an award winning automated chargeback
management system; proven track record of minimising fraud for large enterprises without
impacting on good business.

Fraud prevention partners

Experian, MaxMind

Credit management (services)

Full Range

Other services

Treasury, Corporate Global Banking and Cash and Liquidity Management

COMPANY PROFILES

227

Technology

228

Direct connections

Yes

Batch processing

Yes

Per order processing

Yes

Merchant pages (direct model)

Yes

PSP pages (redirect model)

Yes

Interface

HTML, XML (specs on request), Web Services (SOAP), numerous shopping carts, increasing
numbers of CRM systems.

Security

HTTPS, SSL+, PCI DSS Compliant

ONLINE PAYMENTS MARKET GUIDE 2015

DON'T MISS THE OPPORTUNITY OF BEING PART OF


LARGE-SCALE PAYMENTS INDUSTRY OVERVIEW
The Paypers offers the most valuable source of information and guidance for all parties
interested in the current state of affairs of the payments industry
Paul Alfing, Chairman e-Payments Committee, Ecommerce Europe
Once a year, The Paypers releases three large-scale industry overviews covering the latest trends, developments, disruptive
innovations and challenges that define the global online/mobile payments, e-invoicing, B2B payments, ecommerce and web
fraud prevention & digital identity space. Industry consultants, policy makers, service providers, merchants from all over the world
share their views and expertise on different key topics within the industry. Listings and advertorial options are also part of the
Guides for the purpose of ensuring effective company exposure at a global level.

ONLINE PAYMENTS:
An all-in-one reference guide
on (online) payments
& ecommerce industry trends,
evolving business models, top
players and relevant (alternative)
payment methods.

B2B PAYMENTS, SCF

WEB FRAUD PREVENTION,

Industry voices from the online

IDENTITY:

& E-INVOICING:

finance space share insights


into the dynamic B2B payment,
e-invoicing, supply chain finance
industries to support innovative
solutions & thriving businesses.

ONLINE SECURITY & DIGITAL


In-depth source of information
highlighting key facts &
trends into the global digital
identity transactional and web
fraud prevention & detection
ecosystem.

For the latest edition, please check the Reports section

Glossary
3D secure

Acquirer

3D Secure (3DS) is the program jointly developed by Visa and

The financial institutions that directly or indirectly enter into

MasterCard to combat online credit card fraud. Cardholders

contractual relationships with merchants for the acceptance

introduce their password to verify their identity whenever they

of plastic cards as a form of payment and for maintaining and

make an online purchase. E-merchants willing to offer this security

servicing such relationships.

service to its customers must be registered as a participating


merchant in the program. Only cardholders registered at Verify

Alternative payments

by Visa or MasterCard SecureCode can actually be requested to

Payment methods that are used as an alternative to credit card

verify their data when purchasing online.

payments. Most alternative payment methods address a domestic


economy or have been specifically developed for electronic

commerce and the payment systems are generally supported and

Access Card

operated by local banks. Each alternative payment method has

A plastic card used in an automated teller machine (ATM) to

its own unique application and settlement process, language and

complete deposits, cash withdrawals, account transfers, and other

currency support, and is subject to domestic rules and regulations.

related account functions.

Anti-Money Laundering (AML)


Account History

A set of procedures, laws or regulations designed to stop the

The payment history of an account over a specified period,

practice of generating income through illegal actions. In most

including the number of times the account was past due or over the

cases, money launderers hide their actions through a series of

credit limit.

steps that make it look like money coming from illegal or unethical
sources was earned legitimately.

ACH
The paperless funds transfer system maintained by the Federal

API (Application Program Interface)

Reserve and other approved operators that utilizes electronic

A formalized set of software calls and routines that can be

networks to exchange funds transfer items. Also called automatic

referenced by a software application program in order to access

check handling.

supporting network services.

ACH Network

App Store

The Automated Clearing House (ACH) Network facilitates

An online marketplace where users of smartphones and other

commerce, electronically, by serving as an efficient, reliable and

mobile devices can browse, purchase, and download applications,

secure payments system. NACHA, led by member depository

or "apps", that augment the capabilities of their devices.

financial institutions and payments associations, fulfills this purpose

230

by managing the development, administration, and governance of

Authentication

the ACH Network, and by providing superior services and value

A security measure designed to establish the validity of a transmission,

to its members as the industry association responsible for ACH

message, or originator, or a means of verifying an individuals

payments. The ACH Network connects the originating depository

authorisation to receive specific categories of information or

financial institutions with the receiving depository financial

transaction approval Encyclopedia of Terminology for the Acquiring

institutions.

Industry 22 (in the case of plastic cards or payment orders).

ONLINE PAYMENTS MARKET GUIDE 2014

Authorisation

Bitcoin

Online payments often involve direct authorisation from the bank

Bitcoin is a digital currency, a virtual counterpart of banknotes.

of the consumer making the payment. This means that a check is

Each transaction is registered (the numbers of the coins passing

carried out immediately to check whether the consumer is entitled

from a wallet to another wallet) and stored under the name of the

and in a position to make the payment.

owner. The creators of Bitcoin remain anonymous. The founder is

supposedly called "Satoshi Nakamoto, which is a Japanese name,


but could be a person or people anywhere in the world.

B2B
The exchange of goods or services between one business and

There can be no more than 21 million registration numbers. In a

another business.

process that is similar to a continuous raffle draw, "mining" nodes


on the network are awarded Bitcoins each time they find the

B2C

solution to a certain mathematical problem. The reward for solving

The exchange of goods and services between a business and a

a block is automatically adjusted so that the number of Bitcoins

customer.

created decreases as time goes on.

Bank-as-a-platform

Blockchain

A strategy used to allow third parties to develop applications and

The blockchain is a public ledger of all transactions in the Bitcoin

services around the financial institution via open APIs. Banks,

network made of all computers (nodes) participating and using the

as such, become fully-fledged digital players, competing and

cryptocurrency protocol. A block chain is a transaction database

collaborating for customer relevance in payment and information

shared by all nodes participating in a system based on the Bitcoin

services.

protocol. A full copy of a currency's block chain contains every


transaction ever executed in the currency.

Banking model
It represents the diversified means by which a bank helps a customer

create an operating account, make money transfers, pay pending

Cash on delivery

orders and sell foreign currency.

Payment method with which payment (cash or by card) takes place


when goods are delivered. In Belgium, France and The Netherlands

Banking sector

known as rembours or remboursement.

It is the section of the economy devoted to the holding of financial


assets for others, investing those financial assets as leverage

Chargeback

to create more wealth, and the regulation of those activities by

A procedure whereby a cardholder or the cardholders bank disputes

government agencies.

transactions to payment cards. A disputed payment card transaction


is returned to the acquirer/ISO/MSP for reimbursement to the

Biometrics

cardholders account.

The use of a computer user's unique physical characteristics such


as fingerprints, voice and retina to identify that user.

Checkout
A written order to a bank to pay the amount specified from funds on
deposit; a draft.

GLOSSARY

231

Chip-and-Pin payments

Consumer Account

Chip and PIN is a UK government-backed initiative to implement

A deposit account held by a financial institution and established

the EMV (short for Europay, Mastercard and Visa) standard for

by a natural person primarily for personal, family, or household use

smart payment cards. The name of this initiative stems from

and not for commercial purposes.

the presence of a semiconductor chip and associated circuitry


in the smart card, which is used in tandem with a PIN (personal

Consumer behavior

identification number) . In use, the smart card is placed into a PIN

The process by which individuals search for, select, purchase,

pad terminal or modified swipe-card reader, which accesses the

use, and dispose of goods and services, in satisfaction of their

chip in the card. The user enters a 4-digit PIN that is checked

needs and wants. See also consumer decision making.

against the information stored on the card. If the entered PIN


matches the stored value, the transaction is permitted to proceed.

Consumer data analytics


It is the systematic examination of a company's customer

Clearing

information to identify, attract and retain the most profitable

The process of submitting transactions to the respective card

customers.

company (Visa, Discover, AMEX or MasterCard) for interchange


processing, the fourth in the seven stages of processing. This

Credit card

presentment of the transactions is also a request for payment in

A card indicating that the holder has been granted a line of credit.

the settlement process.

It enables the holder to make purchases and/or withdraw cash up


to a prearranged ceiling; the credit granted can be settled in full

Click-and-collect

by the end of a specified period or can be settled in part, with the

It is the process by which the consumer orders online (click)

balance taken as extended credit.

and collects his merchandise at a local store. It is a compromise


between online and in-store shopping. The main benefits of click-

Cross-border ecommerce

and-collect for the consumer are saving delivery or shipping delays

International ecommerce is called cross-border ecommerce, when

and costs. It also saves time and prevents shopping in congested

consumers buy online from merchants located in other countries

stores. In some cases, click-and-collect may enable consumers

and jurisdictions. Online trade between consumers and merchants

who are afraid of online payment to pay at the collecting point.

which share one common language and border or which make use
of the same currency are not always perceived as cross-border

Cloud computing

by consumers. EU neighbors which speak a common language,

Cloud computing is a general term for anything that involves

united by SEPA, are just one example.

delivering hosted services over the Internet. These services are


broadly divided into three categories: Infrastructure-as-a-Service

Cross-channel

(IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service

Cross-channel implies merchants who interchangeably use

(SaaS). The name cloud computing was inspired by the cloud

multiple channels to market, sell, and interact with customers.

symbol that's often used to represent the internet in flowcharts

For instance, when a customer uses a merchant platforms mobile

and diagrams.

app to look at a product but doesnt complete the purchase, the


merchant can use a cross-channel approach to remarket that

CNP (Card Not Present)

product by serving up ads for it even when the customer is on

Transaction type for credit cards where the card cannot be shown

another channel or platform (say email or social media).

physically to the retailer, for instance in the case of e-commerce


transactions and MOTO transactions. Is the opposite of Card
Present (CP) transactions.

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Customer due diligence (CDD)

Decentralised e-money technology

Identification and verification of customers and beneficial owners.

Decentralised e-money technology implies storing and transferring


through a peer-to-peer computer network that directly links users,

Customer loyalty

much like a chat room. No single user controls the network.

It is defined as a customer continuing to believe that a certain

There is no centralised issuer of such products or a trusted third

merchants product/service offer is their best option which fulfills

party that manages them. This means that they are independent

their value proposition whatever that may be. They take that offer

of central banks, financial institutions and internet platforms.

whenever faced with the purchasing decision. Customer loyalty is

Decentralised e-money is not backed by any particular good or

all about attracting the right customer, getting them to buy, buy

service and is not redeemable into national currencies.

often, buy in higher quantities and bring even more customers.

Digital goods
Customer reach

A general term that is used to describe any goods that are stored,

Estimated number of the potential customers it is possible to reach

delivered and used in its electronic format. Digital goods are

through a an advertising medium or a promotional campaign.

shipped electronically to the consumer through e-mail or download


from the Internet.

CVV
A unique check value encoded on the magnetic stripe and replicated

Digital identity (e-ID)

in the chip of a card or the magnetic stripe of a Visa Card to validate

A collection of identity attributes, an identity in an electronic form

card information during the authorization process.

(e.g. electronic identity).

CVV2

Digital money

A unique 3 digit check value generated using a secure cryptographic

Electronic money or e-money is an evolving term that can have

process that is indent printed on the back of a Visa card or provided

different meanings but in principle involves the use of computer

to a virtual account holder.

networks and digital stored value systems to store and transmit

money. It may have official legal status or not.

Data breach

Digital Single Market

Unintentional release of secure information to an untrusted

It is one in which the free movement of goods, persons, services and

environment.

capital is ensured and where citizens, individuals and businesses can


seamlessly access and exercise online activities under conditions

Debit card

of fair competition, and a high level of consumer and personal data

A plastic card linked to a checking or savings account. Offline or

protection, irrespective of their nationality or place of residence.

signature based debit cards work in the merchant environment


the same as a credit card transaction and are not required to

Digital Wallet

be online to the account balance. Offline signature based

The software that provides the equivalent of a wallet for electronic

functionally work like credit cards; an initial transaction is used

commerce. Also called an ewallet, it holds digital money that is

to hold funds and a second to settle or remove the funds from

purchased similar to travelers checks. A wallet may also hold

the card balance. Online debit cards or PIN based debit cards

credit card information or checking account information along with

ride over the ATM network; they require a PIN and the ability to

the associated digital certificate that authenticates the cardholder.

authorize against the actual balance of the card in a single step


transaction. Prepaid cards fall into the debit category.

GLOSSARY

233

Direct Carrier Billing

e-Banking (online banking)

It is a payment method for purchased items or services by charging

A method of banking in which the customer conducts transactions

the purchase to mobile phone account. At the time of checkout,

electronically via the Internet.

the customer selects the mobile billing option on a smartphone


and follows a two-factor authentication procedure. After the

EBITDA

authentication, the consumer's mobile account is charged for the

An accounting term referring to earnings before interest, taxes,

amount of the purchase, plus applicable taxes and, in some cases,

depreciation, and amortization but after all product/service, sales,

a processing fee. Direct mobile billing does not require any previous

and overhead costs are accounted for.

registration, and it does not involve any other sources of funding


such as credit cards or bank accounts.

Ecommerce
A way of doing real time business transactions via telecommunica

Direct debit

tions networks when the customer and the merchant are in different

Preauthorized debit on the payers bank account initiated by the

geographical places. Electronic commerce is a broad concept that

payee.

includes virtual browsing of goods for sale, selection of goods to


buy, and payment methods. Electronic commerce functions on a

Dispute transaction (card-based)

bona fide basis, without prior arrangements between customers

A dispute initiated by the cardholder. In the bank card industry, the

and merchants. It operates via the Internet using any combination

dispute can be in the form of a chargeback.

of technologies designed to exchange data (such as EDI or e


mail), access data (such as shared databases or electronic bulletin

Disruptive innovation

boards), and capture data (through bar coding and magnetic or

It is an innovation that helps create a new market and value

optical character readers).

network, and eventually disrupts an existing market and value


network (over a few years or decades), displacing an earlier

e-Invoicing

technology. The term is used in business and technology literature

Electronic invoicing is the exchange of the invoice document

to describe innovations that improve a product or service in ways

between a supplier and a buyer in an integrated electronic format.

that the market does not expect, typically first by designing for a

Traditionally, invoicing, like any heavily paper-based process,

different set of consumers in a new market and later by lowering

is manually intensive and is prone to human error resulting in

prices in the existing market.

increased costs and processing lifecycles for companies.

Dunning

Electronic Banking

The process of insistent demands for the payment of a debt. In the

A form of banking in which funds are transferred through an

business context, it refers to the collections process, whereby a

exchange of electronic signals between financial institutions rather

business communicates with customers who have failed to pay their

than an exchange of cash, checks, or other negotiable instruments.

bills.

Electronic payments

Payments that are initiated, processed and received electronically.

EBA Clearing
It is a bank-owned provider of pan-European payment infrastructure

EMV

solutions. The Company was established in June 1998 by 52 major

The international smart card standards group made up of Europay

European and international banks with the mission to own and

International, MasterCard International, and Visa International.

operate EURO1, the only privately owned RTGS-equivalent largevalue payment system on a multilateral net basis.

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European Central Bank (ECB)

Identity theft

The European Central Bank (ECB) is the central bank for Europe's

Identity theft happens when fraudsters access enough information

single currency, the euro. The ECBs main task is to maintain the

about someones identity (such as their name, date of birth, current

euro's purchasing power and price stability in the euro area.

or previous addresses) to commit identity fraud. Identity theft can


take place whether the fraud victim is alive or deceased.

European Payments Council (EPC)


The purpose of the European Payments Council (EPC),

In-app payments

representing payment service providers (PSPs), is to support and

Payments made from within mobile applications in order to purchase

promote European payments integration and development, notably

dedicated content like digital money, services or even products.

the Single Euro Payments Area (SEPA). The EPC is committed to


contributing to safe, reliable, efficient, convenient, economically

Interbank

balanced and sustainable payments, which meet the needs of

A transaction or exchange operated between banks.

payment service users and support the goals of competitiveness


and innovation in an integrated European economy.

Interchange fee
When a customer pays for a purchase in a store using a credit
or debit card, the bank that serves the store (the "acquiring

Financial inclusion

bank") pays a fee to the bank that issued the payment card to

The ability of an individual, household, or group to access appropriate

the consumer (the "issuing bank"). A so-called "interchange fee"

financial services or products. Without this ability people are often

is then deducted from the final amount that the store merchant

referred to as financially-excluded.

receives from the acquiring bank for the transaction. Today,


only competition rules limit the fees set by banks and payment

Financial Institution (FI)

card schemes, which are hidden from the consumer and neither

Any bank, savings and loan, credit union, or other institution organized

retailers nor consumers can influence.

under either national or state banking laws capable of accepting


deposits and/or extending credit.

Interchange Network
An electronic network maintained by the card companies that

Financial services

exchanges data related to the value of card sales and credits

Services and products provided to consumers and businesses by

among issuers and acquirers.

financial institutions such as banks, insurance companies, brokerage


firms, consumer finance companies, and investment companies all of

Interoperability

which comprise the financial services industry.

A situation in which payment instruments belonging to a given


scheme may be used in other countries and in systems installed

Fintech (Financial technology)

by other schemes. Interoperability requires technical compatibility

An economic branch where companies develop technologies in

between systems, but can only take effect where commercial

order to improve the financial system.

agreements have been concluded between the schemes concerned.

Issuer

IDEAL

Public and private companies that enter direct contractual

iDEAL is an internet payment method in the Netherlands, based on

relationships with consumers and/or businesses to maintain and

online banking. Introduced in 2005, this payment method allows

service such relationships through the issuance of one or more

customers to buy securely on the internet using direct online

plastic cards.

transfers from their bank account.

GLOSSARY

235

Issuing bank

Millennials

The financial institution member of the card companies that has the

A name given to the generation born between 1982 and 2004.

responsibility for issuing credit, prepaid, corporate, charge and debit

The Millennial generation follows Generation X in order of

cards to a consumer.

demographic cohorts. This generation is often associated with


technology and social media. Also known as Generation Y.

Know Your Customer (KYC)

Mobile (payments)

The term refers to due diligence activities that financial institutions

Also referred to as mobile money, mobile money transfer and

and other regulated companies must perform to ascertain relevant

mobile wallet, mobile payments generally refer to payment services

information from their clients for the purpose of doing business

operated under financial regulation and performed from or via a

with them. Know your customer policies are becoming increasingly

mobile device. Mobile payment is an alternative payment method.

important globally to prevent identity theft, financial fraud, money

Instead of paying with cash, check, or credit cards, a consumer can

laundering and terrorist financing.

use a mobile phone to pay for a wide range of services and digital
or hard goods.

Loyalty Card

Mobile network operator (MNO)

A brand specific or retailer labeled card that has cardholder

A telecommunications service provider organization that provides

benefits tied to purchase amounts, usage, membership, or number

wireless voice and data communication for its subscribed mobile

of visits. Benefits typically include coupons or discounts for future

users. MNOs are independent communication service providers

services.

that own the complete telecom infrastructure for hosting and


managing mobile communications between the subscribed

mobile users with users in the same and external wireless and

Malware

wired telecom networks. MNOs are also known as carrier service

It is a software which is specifically designed to disrupt or damage

providers, mobile phone operator and mobile network carriers.

a computer system.

Monetisation
Market fragmentation

To monetise is to convert an asset into or establish something as

Separation of a market that is relatively uniform in character into

money or legal tender. The term 'monetise' has different meanings

different segments that have different preferences and demand

depending on the context. It can refer to methods utilised to

patterns, each requiring different marketing approaches.

generate profit, while it also can literally mean the conversion of


an asset into money. For example, the US Federal Reserve can

Marketplace

monetise the nation's debt; this involves the process of purchasing

An online marketplace/ online platform is a type of ecommerce

debt (treasuries) which in turn increases the money supply.

website where product and inventory information is provided by

This essentially turns the debt into money (monetisation).

multiple third parties, whereas transactions are processed by the


marketplace operator. Online marketplaces are the primary type

Mobile point of sale (m-POS)

of multichannel ecommerce. In an online marketplace, consumer

A smartphone, tablet or dedicated wireless device that performs

transactions are processed by the marketplace operator and then

the functions of a cash register or electronic point of sale.

delivered and fulfilled by the participating retailers or wholesalers


(often called drop shipping).

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M-Pesa

A mobile payments system based on accounts held by a mobile

OAuth (Open Authorization)

operator and accessible from subscribers mobile phones.

An open standard for token-based authentication and authorization

The conversion of cash into electronic value (and vice versa)

on the Internet. It allows an end user's account information to be

happens at retail stores (or agents). All transactions are authorised

used by third-party services, such as Facebook, without exposing

and recorded in real-time using secure SMS.

the user's password. OAuth acts as an intermediary on behalf


of the end user, providing the service with an access token that

Multichannel

authorizes specific account information to be shared. The process

Multichannel means having a presence on more than one channel

for obtaining the token is called a flow.

or platform. For example, if a merchant is marketing products on


the proprietary website, in person, and via catalogues, then the

OBeP (Online Bnaking Electronic Payments)

merchant is conducting multi-channel marketing.

A payments type developed by banks in conjunction with technology


providers to meet the demands required by payments performed via

MyBank

internet.

MyBank is an e-authorisation solution which enables safe digital


payments and identity authentication through a consumers own

Omni-channel

online banking portal or mobile application.

Omni-channel retailing is concentrated more on a seamless

approach to the consumer experience through all available


shopping channels, such as mobile internet devices, computers,

NACHA

brick-and-mortar, television, radio, direct mail or catalogue.

Abbreviation for National Automated Clearing House Association.

Retailers are meeting the new customer demands by deploying

The Electronic Payments Association, a national organization that

specialised supply chain strategy software. Retailers using an

establishes the standards, rules, and procedures for electronic

omni-channel approach will track customers across all channels,

payments.

not just one or two. In the brick-and-mortar channel, digitallysavvy consumers are entering stores already well-informed about

National Retail Federation (NRF)

a products features and prices and expect store employees to

The worlds largest retail trade association, with membership

know more than they do.

that encompasses all retail formats and distribution channels,


including department, specialty, discount, catalogue, Internet, and

Online shopping (online retailing)

independent stores as well as the industrys key trading partners

A form of electronic commerce which enables consumers to

of retail goods and services.

buy goods or services from a seller over the internet without an


intermediary service. An online shop, e-shop, e-store, internet

NFC

shop, webshop, webstore, online store, or virtual store evokes the

Near Field Communication (NFC) is a short-range wireless

physical analogy of buying products or services at a bricks-and-

connectivity standard (Ecma-340, ISO/IEC 18092) that uses

mortar retailer or shopping centre. The process is called business-

magnetic field induction to enable communication between

to-consumer (B2C) online shopping.

devices when they're touched together, or brought within a few


centimeters of each other. Jointly developed by Philips and
Sony, the standard specifies a way for the devices to establish
a peer-to-peer (P2P) network to exchange data. After the P2P
network has been configured, another wireless communication
technology, such as Bluetooth or Wi-Fi, can be used for longer
range communication or for transferring larger amounts of data.

GLOSSARY

237

Open Transaction Alliance (OTA)

Payment Service Provider (PSP)

A non-institutional private initiative by forward thinking market

A company that offers service in the area of payments. These

participants who consider the growing importance of the banking

services consist of, for example, various payment modalities,

channel for internet business, the need of consumers and

Electronic Bill Presentment and Escrow services. A Payment

merchants for secure e-services and the development of XS2A

Service Provider acts as intermediary between buyer and seller.

domain together, based on the assumption of the existence of


some form of cooperative domain (technical standards).

Peer-to-peer payments
An online technology that allows customers to transfer funds from

their bank account or credit card to another individual's account

Pay-as-You-Go

via the Internet or a mobile phone.

An unbanked, credit poor, or noncredit customer who mostly deals


with cash. These consumers are targets for a prepaid card.

Phishing
A method which allows criminals to gain access to sensitive

Payee

information (like usernames or passwords). It is a method of social

Party (beneficiary) to whom a bill of exchange (such as a check or

engineering. Very often, phishing is done by electronic mail. This mail

draft) is made payable.

appears to come from a bank or other service provider. It usually


says that because of some change in the system, the users need

Payer

to re-enter their usernames/passwords to confirm them. The emails

A person or a party that makes a payment for products or services

usually have a link to a page which is similar to the one of the real

received to another person or party.

bank.

Payment flow

Point of sale (POS)

The clockwise transfer of money in payment for the counter-

Point of sale (POS) or checkout is the location where a transaction

clockwise physical flow of goods and services. The payment flow

occurs. A "checkout" refers to a POS terminal or more generally to

is the monetary payment for goods and services received by the

the hardware and software used for checkouts, the equivalent of

household sector from the business sector through product markets

an electronic cash register.

and the monetary payment for resource services obtained by the


business sector from the household sector through factor markets.

PSD (Payment Service Directive)


The Directive on Payment Services (PSD) provides the legal

Payment Gateway

foundation for the creation of an EU-wide single market for payments.

A system that provides electronic commerce services to merchants

The PSD aims at establishing a modern and comprehensive set of

for the authorization and clearing of transactions.

rules applicable to all payment services in the European Union.


The target is to make cross-border payments as easy, efficient and

238

Payment method

secure as 'national' payments within a Member State. The PSD also

A generic way in which a payment is carried out, for instance by

seeks to improve competition by opening up payment markets to

PIN card, credit card, internet banking, COD, premium SMS. When

new entrants, thus fostering greater efficiency and cost-reduction.

a payment method is not generic but specific, it is called a payment

At the same time the Directive provides the necessary legal platform

product.

for the Single Euro Payments Area (SEPA).

ONLINE PAYMENTS MARKET GUIDE 2014

PSD2

On 24th July 2013, the European Commission adopted a proposal

SCT Scheme

for a revised Directive 2007/64/EC on Payment Services (the

The SCT scheme is an inter-bank payment scheme defining a

PSD2). The main high-level objectives of the revision are to

common set of rules and standard procedures for credit transfers

promote better integration, more innovation and more competition

in euro.

in the market for payment services within the EU.

Single Euro Payments Area (SEPA)


This is the vision, directive and goal of the European Commission

QR codes

which means that citizens and companies within the European Union

A QR code (quick response code) is a type of 2D bar code that is

have to be able to pay with a single set of payment instruments.

used to provide easy access to information through a smartphone.

This set is the combination of a bank account and instruments like

There are static QR codes, which are used to disseminate

money transfer, direct debit and cards. SEPA signifies the end of

information to the general public and dynamic codes, which

international payments within Europe.

offer more functionality, such as editing the code at any time and
targeting a specific individual for personalised marketing.

Receipt

Settlement
The process of transferring funds for sales and credits between
acquirer and issuers, including the final debiting of a cardholders
account and the crediting of a merchants account.

A hard copy of the transaction, given to the consumer. Also called


sales draft receipt.

Settlement Bank
A bank, including correspondent or intermediary banks, that is

Reconciliation

authorized to execute settlement of interchange on behalf of the

A message generated by an acquirer or an issuer, an originator or a

member or the members bank.

receiver, or a terminal and a processor of an electronic transaction


that advises the receiver of settlement information regarding

Social engineering (fraud)

transactions processed between the sender and the receiver.

A non-technical method of intrusion that hackers use. It relies on


human interaction and often involves tricking people into breaking

Returns

normal security procedures. It is one of the greatest threats that

A sales return is merchandise sent back by a buyer to the seller,

organizations today encounter.

usually for one of the following reasons: Excess quantity shipped.


Excess quantity ordered. Defective goods. Goods shipped too late.

Social platforms
Web-based technologies that enable the development,

Risk Management

deployment and management of social media solutions and

The process concerned with the identification, measurement,

services. They provide the ability to create social media websites

control, and minimization of security risks in information systems

and services with complete social media network functionality.

and payment systems to a level commensurate with the value


of the assets protected. Good risk management in the merchant

Social media

program requires meeting the challenges of reducing the exposure

The sum total of online communications channels dedicated

to risk and responding quickly when risk arises. Monitoring

to community-based input, interaction, content-sharing and

merchant activity with preset parameters allows the transactions

collaboration. Websites and applications dedicated to forums,

to be rejected for examination before potentially incurring a loss.

microblogging, social networking , social bookmarking, social


curation, and wikis are among the different types of social media.

GLOSSARY

239

Spear phishing

Transaction

An e-mail that appears to be from an individual or business that

An act between a merchant and a cardholder that results in a

the user knows. In fact, the respective e-mail is from the same

paper or an electronic representation of the cardholders promise

criminal hackers who want the users credit card and bank account

to pay for goods or services received from the act.

numbers, passwords, and the financial information on their PC.

SME

Unbanked

Small and medium-sized enterprises (SMEs) are non-subsidiary,

The population that does not maintain checking or savings

independent firms which employ less than a given number of

accounts with financial institutions because they do not desire to

employees. This number varies across countries. The most frequent

do so. Products that would benefit the unbanked market include

upper limit designating an SME is 250 employees, as in the

payroll cards and electronic benefits transfer (EBT).

European Union.

Underbanked
Supply chain

The population that does not maintain checking or savings

The network created amongst different companies producing,

accounts with financial institutions because of a loss of credit,

handling and/or distributing a specific product. Specifically, the

bankruptcy or too much difficulty qualifying.

supply chain encompasses the steps it takes to get a good or


service from the supplier to the customer.

User
Payment system users comprise both participants and their

Surcharge

customers for payment services. See also customer, direct

In debit card usage, additional fees assessed to cardholders by

participant, direct participant/member, indirect participant/

merchants and ATM providers. Merchants are sometimes charged

member, participant /member.

additional fees for nonqualified interchange transactions.

Value chain

Technology disruption

A value chain is the whole series of activities that create and build

see Disruptive Innovation definition

value at every step. The total value delivered by the company is the
sum total of the value built up all throughout the company. Michael

The Euro Retail Payments Board (ERPB)

Porter developed this concept in his 1980 book 'Competitive

On 19 December, 2013, the ECB announced the launch of the Euro

Advantage'.

Retail Payments Board (ERPB). This new entity, which replaces


the SEPA Council, helps foster the development of an integrated,

VAT

innovative and competitive market for retail payments in euro in

Consumption tax added to a product's sales price. It represents a

the European Union.

tax on the "value added" to the product throughout its production


process.

Tokenization
The process of substituting a sensitive data with an easily reversible

Virtual assistant

benign substitute. In the payment card industry, tokenization is one

A person who helps someone else - usually a business owner or

means of protecting sensitive cardholder PII in order to comply with

small business - with a variety of tasks from a remote location.

industry standards and government regulations. The technology is


meant to prevent the theft of the credit card information in storage.

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Virtual store
A retail presence on the Web. The virtual store is an online store
that displays merchandise and an order form. A live text chat may
be offered, in which the customer interacts in real time with a
company representative.

Web 2.0
A term used to describes a second generation of the World Wide
Web that is focused on the ability for people to collaborate and
share information online. Web 2.0 basically refers to the transition
from static HTML Web pages to a more dynamic Web that is more
organized and is based on serving Web applications to users.

White label
White label refers to a product or service that is purchased by a
reseller who rebrands the product or service to give the impression
that the new owner created it. White label products are often
produced via mass production.

GLOSSARY

241