smart strategies for cross-border e-commerce, ogone

Smart strategies for cross-border e-commerce

International Payment ProcessingPresented by:Julian WallisHead of Sales – UK & IrelandOgone Payment ServicesMob: 07884 005565jwa@ogone.com

23rd April 2013

StaffingEurope: 175+India: 200+

Ogone’s Global presence

BelgiumBrussels

Headquarters

FranceParis

GermanyCologne

NetherlandsMijdrecht

SwitzerlandZurich

UKLondon

USANew York

IndiaEBS

UAECPSP

AustriaVienna

Local expertise with global reach and access

Borders? What borders?I’m already

selling online...

My site can be accessed from anywhere in the world...

24 hours a day...

English is the international language...

I accept international credit cards...

The whole world is my

market place!

But...• Are you appealing to local markets overseas?

• Are you thinking the way local people think?

• Are you possibly excluding potential buyers?

Are you really maximising your online sales opportunities?

Not an after thought...

All too often the payment process is completely overlooked…

Consider the marketing effort and costs to get people to your site...?

Cart Abandonment Vs Increasing Conversions

Source: Chase Paymentech Infographic 2013

Consider this...

Sources: IMRG / Nielson Reports

Visa & MasterCard represent over 100 million credit & debit cards in the UK alone

American Express, Diners and JCB Another 25 million.

Since 2000, UK internet shoppers have spent well over £250bn online, rising from £0.8bn to an estimated £78 billion last year.

£2.50 of every £10 in retail now spent online

The UK accounts for the highest purchase volume in Europe with 14% growth in 2012

50% year on year growth rates…in the past

Some say...The UK market is maturing.

Online sales set to continue to grow in western continental Europe (estimated 20-30% in 2013)

However...

Expand your e-commerce business across borders...

Want to take your business to the next level?

The whole world can be your market place

Local payment methods

??

??

??

Only credit cards?

In the UK...

Source: Ogone Research 2011

Across the borders of the UK...d = less than 15%

The use of debit and credit card is much lower in some countries

France >> ?Spain >> ?Italy >> ?Austria >> ?Netherlands >> ?Germany >> ?

...less than 76%

...less than 65%

...less than 59%

...less than 33%

...less than 15%

...less than 14%

Source: Ogone Research 2012

Fact is...

60% of all on-line cross-border transactions are not completed because the merchant trader does not provide adequate payment methods for international payments.

Source: Study by European Commission on e-commerce for consumers

Think outside the credit card box

Source: Ogone Research 2012

Payment methods by type

Acquiring network

Ogone serves national and international payment methods

Credit Cards

Debit Cards

Online Banking

Pre- Paid & e-Wallets

Direct Debit

Invoice

Online Consumer Credit

Purchasing Cards

Payment methods mapping

BELMisterCash

FRACarte Bleue

DENDankort

SWIPostFinance

Payment methods by type

Acquiring network Payment methods mapping

NED

iDEAL

GER

ELV

AUTEPS

GBRVISA

Electron

ALL COUNTRIES

Ogone Collect - Payment Methodsnon-credit card online payment methods

Ogone offers Ogone Collect through its subsidiary Tunz.com who delivers collecting services using its own acquiring service. Tunz.com collects funds on behalf of your business and pays out the funds according to the agreed term & conditions.

Belgium

Netherlands

Germany

Austria

France

In development

Secure open invoice & invoice processing

Benefits1.Increased sales - shown to increase sales by 30%2.No risk–third party take the credit risk, so guarantee funds to merchant (note: acceptance of customer payment is dependant on credit score - circa 50% )3.Seamless – Fully integrated into Ogone’s platform4.Acceptance – 65% of Germans state that pay by invoice / direct debit are their preferred payment methods5.Consumer ease & convenience - just submit bank account details - no complex PIN or Post-Ident procedure

***Third party agents that provide guaranteed Open Invoice & Account payments***

Local payment methods

Local languages

??

??

Multilingual / Localised Payment Pages

How many languages!

Chinese Mandarin Danish Dutch English Flemish French German Italian Japanese Norwegian Polish Portuguese Russian Spanish Swedish Turkish etc…

Consider your payment pages...Who is your target market?

UK Cardholder

English text

UK acquirer

Multilingual payment pages

French cardholder

French text

French acquirer

Multilingual payment pages

Dutch local payment method

Airline industry payment method

Multilingual payment pages

Multilingual payment pages

German text

German local payment method

Multilingual payment pages

French localpayment method

Local and international

payment methods

International payment pages

Prompts for country specific sites

EU Domain

Local payment methods

Local languages

Local currencies

??

Multi-currency options...

Local currencies for local markets... Accepting Euros =

big advantage

Dynamic Currency Conversion = extra revenue!

Consider other currencies ...but balance with the

practical realities

Dynamic currency conversion

Now seeing increasing trend in merchants offering on-line

dynamic currency conversion

www.global-blue.com

www.fexco.com

Multi-Currency DCCAutomatically offer your customers

the choice of paying in their own currency and benefit from an

additional revenue stream

Find a DCC partner

DCC – process flow

€ 75 (DCC amount incl. margin)

$100 (Merchant currency amount)

Customer opts for payment in €

ü

Authorisation in €Transaction processing

$100

€75

Conversion to consumer currency by DCC provider

$ 100,-

Selection of goods

EU Customer

$ 100,- €

Pay with CC

EU Customer

Credit card statement

€ 75

EU Customer

Bank Account/Acq. Statement

$100

US Merchant

Query to DCC provider

DCC – cardholder has choice

Local payment methods

Local languages

Local currencies

Acquiring options

United Kingdom

Other countries

Local vs international

Other considerations?Local Vs international suppliers

Consolidation of suppliers

Local Vs central reporting

Currency fluctuations

Pricing across borders

Logistics / distribution

Local taxes and VAT

Julian Wallis | Head of Sales | jwa@ogone.com | 07884 005565

Cost Savings

Management / staffing

Economies of scale

Accelerated expansion

Greater market penetration

Increased client base

Reduced cart abandonment

Increased conversions

Increased revenues

Grow your business...

Cross Border Ecommerce Summary

Payment MethodsThe landscape offers a huge range of payment methods with different benefits...

Countries & RegionsConsider which countries or regions you are looking to target?

Specialist ConsultancyChoose a payment service provider (PSP) that can provide consultancy. Specialist knowledge on

local and international payment methods is an essential ingredient for success

Collecting ServicesConsider working with a PSP that offers collecting services on key alternative and local

payment methods to make it easy for you via a single contract

LocalisationConsider your approach to local domains…local language…local acquirers and local

currencies

A Seamless JourneyDon't create unnecessary barriers in your checkout process. Providing a seamless journey will make the customer far more comfortable and give you a better chance of success.

Successful Results?Cross-border e-commerce will lead towards increased revenues for UK online retailers and is the best strategy for success for UK companies in 2013.

Julian Wallis Head of Salesjwa@ogone.com 07884 005565