SHAPING

THE FUTURE

OF PAYMENTS

HIGH ENGAGEMENT MODEL

IMPROVING CONVERSION & EXPERIENCE

Data & Insights Full service

model

Fraud and

Authorization

Management

Dedicated

Teams Innovation

Conversion

Strategy

Checkout UX

However your

customers pay

Intelligent

Growth

CONNECT TO YOUR AUDIENCE

ENGAGE YOUR CUSTOMERS

ACCELERATE YOUR BUSINESS GROWTH

MEET EXPECTATIONS AROUND THE WORLD

HOWEVER YOUR CUSTOMERS PAY

¥

$

£

€

Our extensive global reach and

FX expertise mean you can access

your customers using the most

relevant local payment methods

and the right currency mix.

Currencies

150+

Countries

170

Acquiring partners & banks

230

Payment methods

150+

FX TEAM DEDICATED INDUSTRY

VETERANS

Intelligent Growth

Innovation

Dedicated Teams

FX BUSINESS STREAM

Best Practices • Multi-currency management (MCP) • International processing Business Intelligence • Market leading strategies designed to increase conversion Transparency • Currency conversion mechanics • Pricing & Remittance Support • Strategic opportunity evaluation • Constant analysis

An effective FX team advises merchants on revenue opportunities, currency presentment best practices and payment process improvements

Seamless payment

experiences

Maximized payment

intelligence

Optimized financial

management

MULTI-CURRENCY MANAGEMENT

Allow customers to pay in their local currency and increase sales

Increased conversion

Consumers are more likely to

convert from browsers into buyers

when pricing and payment options

are offered in their own currency.

Reduced shopping cart

abandonment

Consumers will often

leave the checkout page

to calculate their

estimated local currency

price if you do not present

pricing in their currency

Improved authorization rate

An authorization request to a

card issuer in the card currency

is more likely to be successful

than one that is not.

Increase FX Revenue

Multi-currency pricing

provides the flexibility to

adjust prices to the

competitiveness or

socio-economic status

of the target country and

local brand value.

Improved search results

Localized pricing supports

improved indexation and higher

listing by local Google sites and

other local search engines.

Reduced refunds and

chargebacks

Consumers calculate

conversion pricing but

don’t take additional

conversion fees by their

issuing bank into

account, leading to

higher than expected

costs and increased

chargebacks.

CASE STUDY MERCHANT ADDS 4 CURRENCIES

Jul-Dec 2015 Jan-Jun 2016

Country Currency Paid Flow (EUR) Flow (EUR) Currency Paid Flow (EUR)

Europe EUR 133,000,000.00€ 110,000,000.00€ EUR 142,000,000.00€

Argentina EUR 259,000.00€ 135,000.00€ ARS 896,000.00€

Russia EUR 1,131,000.00€ 609,000.00€ RUB 3,985,000.00€

Turkey EUR 996,000.00€ 524,000.00€ TRY 2,084,000.00€

UAE EUR 3,091,000.00€ 2,699,000.00€ AED 7,975,000.00€

TOTAL 138,477,000.00€ 113,967,000.00€ 156,940,000.00€

Jul-Dec 2016

Benchmark EUR flow increase of 6.7%

Flow from added currency nations increased by 272%

€ -

€ 2,000,000

€ 4,000,000

€ 6,000,000

€ 8,000,000

€ 10,000,000

Argentina Russia Turkey UAE

CONVERSION

OPTIMIZATION

Authorization Rate

Optimization

Best Checkout UX

Custom Fraud Technology

AUTHORIZATION RATE

OPTIMIZATION

Multi-local acquiring

Local currency effects

End-customer fallback options

for failed payments

Real-time Invisible re-tries

Peak volume

management

Post-transaction page

AUTHORIZATION RATE ANALYSIS

Foreign Currencies Local Currencies Difference

China 72.50% 91.80% 19.30%

Russia 76.42% 88.73% 12.31%

Japan 76.10% 91.28% 15.18%

United Kingdom 76.17% 91.76% 15.59%

United Arab Emirates 71.20% 83.70% 12.50%

CountryAuthorization Rate

TREASURY

MANAGEMENT

Multi-Layer FX

Strategies Remittance Optimization

AUTHORIZATION AND REMITTANCE CYCLE

SETTLEMENT OPTIONS

Currency Code

Australian Dollar AUD

Canadian Dollar CAD

Swiss Franc CHF

Danish Krone DKK

Euro EUR

British Pound GBP

Hong Kong Dollar HKD

Japanese Yen JPY

Norwegian Krone NOK

New Zealand Dollar NZD

Swedish Krone SEK

Singapore Dollar SGD

US Dollar USD

South African Rand ZAR

• The card schemes mandate 14

currencies can be remitted “like-for-like”

(see table)

• However, not all acquirers settle all 14

currencies, in which case we cannot

remit “like-for-like”

• All others need to be converted into a

remittance currency of the merchant’s

choice (usually USD)

POTENTIAL FX REVENUE

REAL WORLD SCENARIO

• Issuing banks charge consumers 3.0% to 6.0% on FX conversion

• Offering local currency gives merchants control

• Add a spread to the base exchange rate in your ecommerce environment greater than the negotiated spread

• In the above transaction, a customer with a EUR credit card was forced to pay in USD.

• Issuing bank charges 4.1% FX conversion

• If the hotel had offer pricing in EUR they could have either reduced the cost for the customer by 4.1% ($29) or generated an additional FX revenue stream – for example of 2.0% ($14) and still leaving the customer $15 better off.

MULTI-CURRENCY PRICING

STRATEGIES

Domestic Merchant selling in CNY to Chinese Consumers

Adding an additional exchange rate buffer can

a) remove risk

b) generate incremental (FX) revenue stream

3.5% BUFFER

CONVERSION PRICING

Quarterly Converted Flow Standard Non-Standard

< $xM x.xx% x.xx%

$xM - xM x.xx% x.xx%

$xM - $xM x.xx% x.xx%

THANK YOU!

Michael Bilotta

Head of FX – NorthAm and LATAM (M) +1 415 589 9104

michael.bilotta@epay.ingenico.com

www.ingenico.com/epayments