cross boarder payment loviit_20150930

Smart

Payment.

Fuelling ecommerce growth & enabling cross-border sales


Cross-Border Sales Challenges

2

(New) Market(New) Market(New) Market(New) Market TechnicalTechnicalTechnicalTechnical

OperationalOperationalOperationalOperationalOrganisationalOrganisationalOrganisationalOrganisational


New Markets/Segments

3

0000

1000100010001000

2000200020002000

3000300030003000

4000400040004000

2014201420142014 2015201520152015 2016201620162016 2017201720172017 2018201820182018 2019201920192019 2020202020202020

Global Global Global Global CCCCrossrossrossross----BorderBorderBorderBorder orderorderorderorder B2C Volume B2C Volume B2C Volume B2C Volume

DomesticDomesticDomesticDomestic Cross-BorderCross-BorderCross-BorderCross-Border

0000

500500500500

1000100010001000

1500150015001500

2000200020002000

2500250025002500

2014201420142014 2015201520152015 2016201620162016 2017201720172017 2018201820182018 2019201920192019 2020202020202020

Global Global Global Global CrossCrossCrossCross----BorderBorderBorderBorder B2C B2C B2C B2C ShoppersShoppersShoppersShoppers

DomesticDomesticDomesticDomestic Cross-BordersCross-BordersCross-BordersCross-Borders

Quantifying Multi Quantifying Multi Quantifying Multi Quantifying Multi Channel Marketing Channel Marketing Channel Marketing Channel Marketing

OpportuntiesOpportuntiesOpportuntiesOpportunties

Volume Volume Volume Volume Growth p.a.Growth p.a.Growth p.a.Growth p.a.

27%27%27%27%

CrossCrossCrossCross----BorderBorderBorderBorderShoppersShoppersShoppersShoppers

2020202020202020

45%45%45%45%

CostCostCostCost totototo BuildBuildBuildBuild Brand Brand Brand Brand AwarenessAwarenessAwarenessAwareness

Accenture-AliResearch report, 2015


(2nd)Device User Market

4

Second Second Second Second sssscreen creen creen creen aaaactivities to capitalise shoppingctivities to capitalise shoppingctivities to capitalise shoppingctivities to capitalise shopping

Mobile Mobile Mobile Mobile penetrationpenetrationpenetrationpenetration isisisis iiiincreasingncreasingncreasingncreasing yearyearyearyear by by by by yearyearyearyear

i.e. Big Events & i.e. Big Events & i.e. Big Events & i.e. Big Events & SocialSocialSocialSocial Media, Promotion & AppMedia, Promotion & AppMedia, Promotion & AppMedia, Promotion & App

Multi Device Payment Multi Device Payment Multi Device Payment Multi Device Payment PlatformPlatformPlatformPlatform

Case StudiesCase StudiesCase StudiesCase Studies

Business Insider, Inc., 2013/2014, www.ystats.com, 2014


Global Acquiring & Settlement

5 www.ystats.com, 2014

Lack Lack Lack Lack ofofofof consumerconsumerconsumerconsumer

trusttrusttrusttrust due due due due totototo

missing online missing online missing online missing online

payment methodspayment methodspayment methodspayment methods


Global Acquiring & Settlement

6

300+300+300+300+ConnectorsConnectorsConnectorsConnectors

160160160160CountriesCountriesCountriesCountries

BoostBoostBoostBoost SalesSalesSalesSales

40%40%40%40%

Single Point Single Point Single Point Single Point ofofofof ContactContactContactContact

OneOneOneOne time time time time AcquiringAcquiringAcquiringAcquiringProcessProcessProcessProcess

NoNoNoNoRestrictionsRestrictionsRestrictionsRestrictionson Payouton Payouton Payouton Payout

WeeklyWeeklyWeeklyWeeklySettlementSettlementSettlementSettlement

Global Global Global Global AcquiringAcquiringAcquiringAcquiring FeaturesFeaturesFeaturesFeatures


Payment by instalments

7

HireHireHireHirePurchasePurchasePurchasePurchase

Higher Conversion

Higher Average Tickets

Higher Customer Satisfaction

Key Facts Consumer*Key Facts Consumer*Key Facts Consumer*Key Facts Consumer*

Influenced my decision to buy (80%)

Influenced my decision to spend more (48%)

Stopped purchasing without finance option (26%)

*Hitachi Capital Consumer Finance, 2014

Key Facts Key Facts Key Facts Key Facts MerchantMerchantMerchantMerchant

Guaranteed cash payment

Reduced barriers to purchase

International solution (one stop solution)

No logins, noregistration, no

documents

consumers’ favorite

payment option

different optional

payment terms


Fraud & Default Risk

8

0,00%

0,20%

0,40%

0,60%

0,80%

1,00%

1,20%

1,40%

1,60%

1,80%

Large eCommerce mCommerce International

Fraud as percent of revenueFraud as percent of revenueFraud as percent of revenueFraud as percent of revenue

2013 2014 2015LexisNexis, 2015

mCommercemCommercemCommercemCommerce and and and and

International take International take International take International take

greatest hit to revenue greatest hit to revenue greatest hit to revenue greatest hit to revenue

from fraudfrom fraudfrom fraudfrom fraud

FraudFraudFraudFraud DefaultDefaultDefaultDefaultRiskRiskRiskRisk


Guaranteed Cash Payment

9

UpUpUpUp totototo7777 timestimestimestimes

moremoremoremore difficultdifficultdifficultdifficult totototopreventpreventpreventprevent fraudfraudfraudfraud in in in in remote remote remote remote channelschannelschannelschannels

LexisNexis, 2015

100TSD100TSD100TSD100TSDEUR EUR EUR EUR minimumminimumminimumminimum

spendingspendingspendingspending on on on on fraudfraudfraudfraudmitigationmitigationmitigationmitigation

Fraud Map


Invoicing & VAT Management

10

VAT RateVAT RateVAT RateVAT Rate 19%19%19%19% 22%22%22%22% 20%20%20%20% 8%8%8%8%

ReportingReportingReportingReporting 10Days10Days10Days10Days 16Days16Days16Days16Days 30Days 30Days 30Days 30Days 90Days90Days90Days90Days

PaymentPaymentPaymentPayment 10Days10Days10Days10Days 16Days16Days16Days16Days 30Days30Days30Days30Days 90Days90Days90Days90Days

DepositDepositDepositDeposit NoNoNoNo NoNoNoNo NoNoNoNo YesYesYesYes

VAT VAT VAT VAT RegistrationRegistrationRegistrationRegistration

InvoiceInvoiceInvoiceInvoiceTemplateTemplateTemplateTemplate

Collection Collection Collection Collection ServiceServiceServiceService

CrossCrossCrossCross----BorderBorderBorderBorder

VAT: 19% VAT: 22% VAT: 20%


Cross-Border Ready?

11

Accept Online PaymentsEnabling transactions by a large portfolio of both local and international payments methods

Offer Valuable Payment SolutionsProviding value added payment methods such as payment by instalments and multi device readysolutions to enhance merchants’ business

Manage the whole Payment ChainOffering global acquiring service, guaranteed payoutsand dealing with hassle administrative tasks such as invoicing and collecting on behalf of merchants

cross boarder payment loviit_20150930

Economy & Finance