cashless payments - sean walls - iaapa 2018 - …...pros • low chargeback risk • transaction...

Today’s Speakers

Sean Michael Walls, Universal Orlando Resort

Frank Conway, VenueNext

Kim Mika, Sprinklr

Cashless Payments

Sean WallsExperience Transformation Product DevelopmentUniversal Orlando Resort

https://www.linkedin.com/in/SeanMichaelWalls

Introduction

“Talent hits a target no one else can hit;

Genius hits a target no one else can see.”-Arthur Schopenhauer

Today’s Goal:Help you start to see a target that not everyone sees…

https://www.brainyquote.com/quotes/arthur_schopenhauer_385253

12 Years Experience in Product/Digital DevelopmentProduct OwnerMaker, Not a Seller or BuyerNot A Payments ExpertIE, ENTJ, LEO

About Me

…

My Story:

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

About You

• Show of Hands….

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

Agenda

• Current Payment Landscape

• What Defines “Cashless Payments?”

• Why Go Cashless?

• Types of Cashless Models

• Complexity

• Where to Start

• Pitfalls to Avoid

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

• U.S. Lagging the world in cashless payments• Lots of moving pieces in the fin-tech space• Designing new “rails” to support consumer

expectations around real-time payments• Data is driving innovation• Mobile cashless payments broadly introduced

by Apple, Google, and Samsung • Cashless payments are starting to be broadly

accepted in a variety of places

https://www.trendhunter.com/trends/contactless-busker-payments

Current Payment Landscape

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

What Defines “Cashless?”

On The

Surface

Customers have “something” to use instead of cash or credit cards, they use it, you get money.

https://www.flaticon.com/

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

Form Factors

All logos are property of their respective companies and are used here for illustrative purposes only

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

Why Go Cashless?

https://www.lifewire.com/bitcoin-mining-pools-4158119

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

Key Benefits of Cashless

Increased Sales

Time Savings

Reduced Theft / Fraud

Real-Time Reporting

Reduced Guest Fees

Spend Enablement

Faster Transactions

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

Increased Sales

Time Savings

Reduced Theft / Fraud

Real-Time Reporting

Reduced Guest Fees

Spend Enablement

Faster Transactions

Key Benefits of Cashless

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

Increased Sales

Time Savings

Reduced Theft / Fraud

Real-Time Reporting

Reduced Guest Fees

Spend Enablement

Faster Transactions

Key Benefits of Cashless

Cashless Models

Pay As You Go Pre-Paid Folio / Batch

Approach Every cashless transaction is “passed thru” to the bank for individual approval.

Guests “load” funds into their account. Funds can be re-loaded as needed by the Guest, or automatically based on rules.

Individual transactions are held in a batch until a “threshold” is reach, at which point a single approval for the final amount is requested.

Example Chipotle – Card on File Starbucks Hotel Room Charging

Pros • Low Chargeback Risk• Transaction History Matches

CC Statement• Follows known models

(Apple/Google/Samsung)

• Limits transaction counts to Guest Card• Limits transaction fees to company• Guests can manage spend / reload

values and frequencies• No authorization fails at POS

• Limits transaction counts to Guest Card• Decreased transaction fees to company

Cons • Always Considered CNP• Lots of CC transactions • Potential fees (international

guest)• Sales “moment of truth”

• Strict Financial Rules• Limits on stored values

• Mostly Card Present, Sometimes CNP• Difficult to fight charge backs (bundled)• Sales “moment of truth” / pre-auth re-up• Complex Refunds• Fraud Risk

Cashless Behinds the Scenes

On The

Surface

Behind The

Scenes

Customers have “something” to use instead of cash or credit cards, they use it, you get money.

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

Complexity

Core Complexity

Integration to POS

Integration to Payment Devices

Improved Sales

Technique

SKU Level Reporting

3rd Party Integration

UI To Store CC & Guest Data, Way To Tokenize, Way To Pre-AuthThe Card, Security, Finance Buy-in On CNP Fees

Make PED Read Form Factor, Make POS Pull Back Payment Token

Store/Recall Transaction Details, Sales Engine Integration, POS Integration With Sales Engine (Cross/Up/Suggestive Sell)

Update POS / PED Of Other Companies Or Stand-alone Device

MVP

Off

Th

e Sh

elf

Op

tio

ns

What’s Needed:

Incr

easi

ng

Val

ue

\C

om

ple

xity

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

Core Complexity

Integration to POS

Integration to Payment Devices

Improved Sales

Technique

SKU Level Reporting

3rd Party Integration

UI To Store CC & Guest Data, Way To Tokenize, Way To Pre-AuthThe Card, Security, Finance Buy-in On CNP Fees

Make PED Read Form Factor, Make POS Pull Back Payment Token

Store/Recall Transaction Details, Sales Engine Integration, POS Integration With Sales Engine (Cross/Up/Suggestive Sell)

Update POS / PED Of Other Companies Or Stand-alone Device

MVP

Off

Th

e Sh

elf

Op

tio

ns

What’s Needed:

Incr

easi

ng

Val

ue

\C

om

ple

xity

Complexity

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

Core Complexity

Integration to POS

Integration to Payment Devices

Improved Sales

Technique

SKU Level Reporting

3rd Party Integration

Incr

easi

ng

Val

ue

\C

om

ple

xity

UI To Store CC & Guest Data, Way To Tokenize, Way To Pre-AuthThe Card, Security, Finance Buy-in On CNP Fees

What’s Needed:

Make PED Read Form Factor, Make POS Pull Back Payment Token

Store/Recall Transaction Details, Sales Engine Integration, POS Integration With Sales Engine (Cross/Up/Suggestive Sell)

Update POS / PED Of Other Companies Or Stand-alone Device

MVP

Off

Th

e Sh

elf

Op

tio

ns

Complexity

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

Where to Start

• Model of Cashless

• Make or Buy

• Level of Complexity / Value

Desirability

ViabilityFeasibility

Start Here

Then

, Fo

cus

On

Sean Wallshttps://www.linkedin.com/in/SeanMichaelWalls/

Pitfalls

Cost

Support

Education

Ease Of Use

Sean WallsExperience Transformation Product DevelopmentUniversal Orlando Resort

https://www.linkedin.com/in/SeanMichaelWalls

A Point-of-Sale in Every Pocket

Frank Conway

Chief Product Officer, VenueNext

The Social Guest

Experience11/12/2018

Kim Mika, Sprinklr

50%2000

of Fortune 500 have disappeared;

in another decade, 40% of those

left will follow

dis

rup

tio

n

50%2020

of the workforce will

be digital natives

14 quarters of decline

$1.4B wiped out overnight

connected + informed

increased expectations

in control

digital business models

digital business operations

customer experience

com

mu

nic

atio

n

com

pet

itio

ncu

sto

mer

s

reddit overtook search results

connected on social

2.8B

15 Y

EAR

S

The Digital Transformation is here…

What are you up against…

Where are your Guests

talking? POPULARITY OF CHANNEL BY AGE GROUP

70% of the under 25 demographic chooses to communicate care issues via social/apps

Specifically they’re here…

How can you use Social?

• Customer Care Resolutions • Crisis Management • Influencer Marketing• Surprise and Delight!

Lets take a Journey: Meet your Guest: Susie

• 26 years old

• Lives in Miami

• Loves to travels

• Social Media Power User

• Travel Blogger

• Social Influencer

Susie tweets about her upcoming

vacation…

Susie sees timely twitter ad, clicks it…

directed to cruise.com, browses deals…

Susie arrives at the Port of Miami for her trip

Susie is having trouble with the WiFi…

Susie gets an immediate response…

On board support notified, discount offered

The Result…Positive TripAdvisor Review

Why does this matter?

52%of customers stop buying after a SINGLE bad customer service interaction

95%of customers tell others about a bad experience

75%of online customers expect a response within five minutes

of organizations now compete based on customer experience89%

Thank you!