2016 payment predictions & strategies to jumpstart the new year

2016 Payment Predictions

& Strategies to Jumpstart

the New Year JANUARY 27, 2016

1 Welcome

Agenda

Introduction & Objective

About Ingenico Group + 451 Research

2015 / Payments In Review

Top 2016 Payment Predictions

Steps to Jumpstart Your 2016 Payments Strategy

Ingenico Group, More Than Payments / Real Business Solutions

Q&A

4

Speaker Introduction

Rod Hometh

Senior Vice President of

Strategic Development

Ingenico Group / North America

Jordan McKee

Senior Analyst

451 Research

2016 Payment Predictions & Strategies to Jumpstart the New Year - 1/27/2016

5

Objective

To find out what payment trends are on the horizon for 2016, and what

technologies you should consider this year.

mPOS

Unattended Payments

Omni-Channel

NFC

Value-Added Services

Mobile Wallets

Contactless


Intelligent Terminal

6

PollAccording to 451 Research’s Global Mobile Forecast,

NFC-based payments in the U.S. grew from $1.4 billion in

2014 to $5.2 billion in 2015. What will they grow to in 2016?

A) $7 billion

B) $12 billion

C) $17 billion

D) $23 billion


About

Ingenico

Group2

8

Global footprint / multi-local solutions

$1.8Bin 2015

88sites across

the world

35years of

payment

expertise

global reach

170countries

78nationalities

5.5Kemployees


9

Trusted partner / from small merchants to global brands

Network of

1,000+financial

institutions

Partner with

70%of the Top 30

leading retail

brands

250K+ merchants

connected to our

platforms

Accepting

300+payment methods


10

• Security-focused / EMV, NFC, P2PE

• Seamless experience / in-store, out of store and onboard

• Innovative solutions / across industries and use cases

• Trusted partner / unmatched service and support

Ingenico Group U.S. / at a glance


About 451

Research

12

451 Research / information technology research &

advisory company

Founded in 2000

210+ employees, including over 100 analysts

1,000+ clients: Technology & Service providers, corporate

advisory, finance, professional services, and IT decision

makers

10,000+ senior IT professionals in our research community

Over 52 million data points each quarter

4,500+ reports published each year covering 2,000+

innovative technology & service providers

Headquartered in New York City with offices in London,

Boston, San Francisco, and Washington D.C.

451 Research and its sister company Uptime Institute

comprise the two divisions of The 451 Group

Research & Data

Advisory Services

Go 2 Market

32015 /

Year in

Review

14

2015 Payments Year in Review / EMV migration


48%

EMV cards in consumers’ pockets Number of EMV terminal “users”

of U.S. cardholders

have “dipped” or

inserted their cards into

an EMV-ready terminal

60%of U.S. cardholders

have received the

EMV chip cards

Deployment of EMV cards and terminals are quickly growing

Source: Ingenico Group Executive Survey - 2015

15

2015 Payments Year in Review /

multi-layered security


Merchants move beyond EMV and consider multi-layered security

EMV authenticates the

validity of the card

EMV authenticates the

validity of the cardholder

EMV DOES NOT

secure the data

16


multi-layered security


Multi-layered security

enhances protection:

• With these security measures in

place, if there is a successful attack

on the POS, it will not yield data that

can be monetized

17


mobile wallets

2015 saw a broad release of mass-market mobile wallets


4Top Five

Payment

Predictions

for 2016

19

Payment Prediction #1

20

Payment Prediction #1 /

the year of the mobile wallet


• 2016 will see an array of issuers and retailers launch their own, branded

payment applications to attempt to take control of the customer relationship

21


the year of the mobile wallet

Apple Pay starts off strong in 2016

Source: 451 Research’s ChangeWave Consumer Mobile Payments Trends Survey, December 2015

Base: Mobile phone owners who plan to use mobile payment apps over the next 90 days (25% of total base) n = 4,166


22


the year of the mobile wallet + contactless

U.S. Mobile Transaction Value


• 451 Research reports that NFC payments will crest to $12 billion in 2016

23


24


EMV & payment security will continue to be a focus

The impact of EMV won’t truly be

seen until 2016

• Merchants still continue to deploy

EMV in masses, just off the heels of

the holidays

• Increased interest in mobile wallets

drive SMBS to incorporate dual-

interface EMV terminals


25


EMV & payment security will continue to be a focus

EMV and NFC start to appear in unattended environments

• Unattended solutions, such as those in parking lots and self service kiosks,

are now transitioning into EMV/NFC enabled terminals


26


27


omni-channel payments get real

• Merchants want to provide customers the ability to pay in multiple ways, via multiple channels


28


omni-channel payments get real


Merchants want to connect with

customers throughout the entire

buyer’s journey

• In-store

• Online

• Mobile

• Unattended

29


30


mPOS adoption will soar

The mPoS installed base will grow 4x by 2019

Source: 451 Research, 2015


31


mPOS adoption will soar


Big merchants will begin to use

mPOS to extend their fixed POS

systems.

• Line-busting

• Inventory

• More convenient in-store

checkouts

• Cross and up-sell opportunities

• Pop-up stores

32


33


merchants will explore value-added services


The concept of an app ecosystem that evolves around the POS will begin

to take root.

34


merchants will explore value-added services

Shoppers now demand value-added services at the POS

Source: 451 Research’s 2015 US Consumer Mobility Survey, June | Base: Mobile phone owners | n = 2,332


5Steps to

Jumpstart

Your 2016

Payment

Strategy

36

2016 Payments / steps to jumpstart your strategy

Assess Your

Payments NeedsEvaluate Current

Payments Operations

Develop Your

Payments Goals


37


Keep the Customer

Experience at the Heart

of Your Strategy

Focus on Simplicity,

Immediacy and

Context

Partner with Trusted

Payments Solutions

Providers


38


Not EMV-Ready? Consider a semi-integrated payments architecture:

Maintains a connection between the terminal and electronic cash register (ECR)

Provides an independent connection for transactions to go “around” the ECR,

directly to the host

Sensitive payment data does not enter the POS


Ingenico GroupMore Than Payments /

Real Business Solutions6

40

Ingenico Group /

more than payments, real business solutions


Seamless payments

Cross-channel solutions

Industry-leading security solutions

41

Ingenico Group / resources

Learn more:

• View our 2016 Payment Predictions Infographic:

http://info.ingenico.us/2016-payment-predictions

• Read our case studies:

1. http://info.ingenico.us/sleepys_case_study

2. http://info.ingenico.us/dsa-jeweler-case-study

• Links will be emailed post-webinar

Fact vs. Fiction / EMV Myths Debunked - 1/27/2016

http://info.ingenico.us/2016-payment-predictions

http://info.ingenico.us/sleepys_case_study

http://info.ingenico.us/dsa-jeweler-case-study

Questions?www.ingenico.us

Thank You.