subscribed 2016: how the world pays

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How the World Pays

© Worldpay 2016. All rights reserved.

HOW THE WORLD PAYSKarl MacGregor, VP Digital John O’Brien, VP Relationship Management


Experts in helping companies go

global

31.5 million transactions/day,

$500 billion processed / year

Largest FinTech IPO in LSE history

Number 1 international

acquirer

Own the full payment chain from

end to end

Who are we?


First, let’s agree some definitions

Credit

CARDS APMs

DebitPre-Paid

Charge

eWallet

eInvoice

PrePayBank

Transfer

PostPay

Cash on

Delivery

OtherDirect Debit


Is global eCommerce growing?

2015In

the global eCommerce market was estimated to

be worth:

$1.9 trillion

14%Up

since 2014

expected to hit$2.4

trillion by 2019

23%of this growth

will come from mobile devices


United States of America

United Kingdom

Japan

Germany

2015 total sales ($bn) 2019 total sales ($bn) CAGR

France

Healthy growth even in ‘mature’ markets

3111561188080

536210175109107

14%8%

10%8%7%


UK


…and emerging markets continue to soar

India

Brazil

Mexico

Russia

2015 total sales ($bn) 2019 total sales ($bn) CAGR

China 3101323238

57361555127

17%30%18%17%22%


China


EuropeAPM Card

2014 49% 51%2019 55% 45%

Cards vs. alternatives in the future

APACAPM Card

2014 58% 42%2019 63% 37%

AmericasAPM Card

2014 25% 75%2019 29% 71%


eWallets will overtake credit cards for share

of global eCommerce

spend by 2019

The big winners are eWallets

27% 24%


However…Cards are not dead!


• Additional payment methods drive incremental revenue, but at a cost

• Some are no brainers but others are situational

• Need to consider uplift vs. cost

• Will it support subscriptions?

What’s the business case for a new payment method?


What’s happening to today’s payment models?


24% 19%11% 13% 25%

20% 5% 4% 14%

32%

29%15%

Account on file Subscription Usage based

Advertising Personal info Micro-payments

Billing model preference is shifting


What matters to consumers?

48%Reliability

27%Good for spontaneous

purchasing

46%Security

52% Increased control over their personal finances

Billing models can drive product choices


What about subscriptions?


0%

10%

20%

30%

40%

50%

60%50%

44%48%

24%20%

16% 14%14%

24% 22%26%

12% 12%

22%25%

23% 21%

39%43%

39%42%

7% 9%6% 8%

21% 21%

13%

4%1% 2% 3% 5%

12%9%

Japan UK Germany USA China India Brazil 0 Subs 1 Sub 2-5 Subs 6-9 Subs 1 0+ Subs

How many subscriptions has the average consumer had in the last year?


39%Do not want to commit to a service long term 25%Concerned about

sharing personal information over the long term. Usage patterns etc.

58%Only want to pay for what they use

What holds people back from subscribing?


What to take away?

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

• Whilst subscriptions are on the rise, metered and micropayments are of growing interest

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


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

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