where to go where to grow
TRANSCRIPT
WHERE TO GO WHERE TO GROW
RodRKatzfeySVP,Interna,onalAcquiring
www.GlobalOnePay.com
Agenda
Introduc1on
GrowthLandscape
PaymentFacilitators
ValueAddedPrograms
AcquiringvsDeveloping
QA
Introduc,on
www.GlobalOnePay.com
GlobalPaymentMethods:
! Visa,MasterCard,AmericanExpress,Discover,JCB,andUnionPay
! Alterna,vepayments
! Directdebit
! ACH(eCheck)processing
AboutGlobalOnePay
PaymentsLeaderSince2003! GlobalOnePayisasubsidiaryofPivotalHoldingsLtd.,opera,ngagroupof
companiesincludingPivotalPaymentsInc.
! 400employeesand70,000merchants
! Mul,pleNorthAmericanofficesandglobalacquiringpartners
! Technologyandpayments-enabledsolu,onsforglobaleCommerce,SMBacquiringandintegratedpayments(ISV)markets
GlobalConnec,vityinover130GlobalPaymentNetworks
GrowthOpportuni,es
www.GlobalOnePay.com
WheretoGrow…
" Domes,cUS:Ci,esontheRise…− SiliconValley(NorthernCalifornia)− Atlanta(FintechSouth)− NewAmazonheadquarters#2
" NorthAmerica− Canada
! Cross-BorderOpportuni,eswithourneighborstothenorth
" Overseas− Europe− Australia&NewZealand
e-retailsalesintheUSviaAmazonin
2017:$54.47Billion
RetaileCommercesalesintheUSby
2021:$485.27BillionRetaileCommerce
salesintheUSin2016:
$322.17Billion
www.GlobalOnePay.com
UnitedStatesvs.GlobalMarkets
ProjectedeCommSalesforthe10LargestMarkets
OthersCountriesAmongTop10
UnitedStates
E-commercesalesvolumegrowingat~12%annually
ROWcombinedgrowingatover17%eachyear
www.GlobalOnePay.com
GlobalMarkets:ExpectedeCommerceGrowthby2019
$535B(US)
$87.5B(Germany)
$143B(UK)
$56B(France)
$44.9B(Canada)
$25B(Australia)
PaymentFacilitators
PaymentFacilita,onFacts" Priorto2014onlyahandfulofcompanieswereofferingPaymentFacilitatorservices:
• PayPal• Square• Stripe
• PaymentFacilita,onindustryisexploding!• 2013grewfrom153intoanes,mated662in2016.• 2013paymentfacilitatorspaymentvolumewas$6.9billion• 2016ises,mated$39.7billion• mid-2017$58.4billionwasreached
*DatafromDoubleDiamondPaymentsResearch,Centennial,Colo.
www.GlobalOnePay.com
WhyisthePaymentFacilita,onmodelgrowing?
Tech Growth: ISVs, SaaS, Marketplaces & Platforms " Moresojwarecompaniesareembeddingpaymentsintotheirsojware:
− Mindbody,Quickbooks,Freshbooks,Slack,Eventbrite&more
" TheriseoftheGigEconomy− Lyj,Uber,Fivver,Upwork,TaskRabbit,Postmates
! 9.2millionAmericansareexpectedtoworkinthegigeconomyby2021(IntuitandEmergentResearch)
" FlexibilityandUserExperienceControl− MostavailablePayfacmodelsarelessflexible,withlimitedop,onsandofferlimletonothingforaddingtothebomomline.
− Sojware/techcompaniesexpecttheirembeddedpaymentstobe:! Nearreal,meac,va,onofpaymentacceptance! Reducedunderwri,ngoverhead! Moreflexibilityintheirpaymentdistribu,on! Comprehensiverepor,ngandcompliancesupport
! Robustrevenuestreamfrompaymentservices
www.GlobalOnePay.com
WherecanPaymentFacilita,onGo?
Growing Pains " BeingaPayfacistough
− Lotsofrestric,ons®ula,onstoovercome! Repor,ngandaudits! Complianceandoversightismorecomplex! Possiblemoneytransmimerlicensing
" MarketConfusion− Imposterscrea,ngmarketconfusionforISVsandPlaoormstochooseasolu,onthatisrightforthem
" Developmentchallenges− Everythingbuiltfromthegroundup− Complexityofautomatedunderwri,ngtolinkfromonlineapps− Whitelabelingorhierarchycreateachallengefordeveloperstobuild
" Cer,fica,onsmainlyintheUS− VeryfewcompaniesofferPayfacservicesInterna,onally
Evolution of ISOs " Developingintomerchantconsultantstoofferassistanceinnumerousareasoutsidethepaymentecosystem
" AcquirersandISOswillofferPaymentFacilita,onsolu,ons
ValueAddedPrograms
www.GlobalOnePay.com
MerchantCashAdvanceProgram
" Whatisit?:− Alterna,vetoabankloan
! Lessredtapeandrestric,onsfromatradi,onalbanklending.! Easiertoqualifyandfastertofundwithlesspaperwork
" TheWhys:− Es,matedthat$80to$120billiondollarsofunmetfundingtosmallbusinesses
! Es,matedonly$15billioninloansdistributedin2017
− 16%ofwouldbeborrowersneverapplyforfearofrejec,on" Benefits&StrategiesforISOs&Acquirers:
− Reducedamri,onduetomerchantbeinglockedinacontract− Bea"hero"byhelpingmerchantssucceed− Addi,onalRevenuesharingwhenreferringamerchantforcashadvances
www.GlobalOnePay.com
CashDiscoun,ng/CashSurchargingProgram
" Whatisit?:− Discounttocustomersforpayingwithcash
! Customerswhochoosetopaywithcreditcardwillbechargedanominalfee! Requiresaterminalthatcanprocessthesurchargefees
! Merchantscanchargeupto4%intransac,onfees
" Pros&Cons:− ISOscanexpectuptoa90-basispointoverinterchangemargin− Notlegalin11states&USterritories:
! California,Colorado,Connec,cut,Florida,Kansas,Maine,Massachusems,NewYork,Oklahoma,TexasandPuertoRico.
− Aidswithmerchantreten,onbyprovidingauniqueserviceofferingoutsideoftradi,onalmerchantserviceprograms
AcquiringvsDeveloping
**
www.GlobalOnePay.com
Pros&Cons Acquiring" Gotomarketfast
− Products,Resourcesandcorecompetencies− Talent&experienceacquisi,on
" Reducedbarrierstoenter− Built-incustomerbase&product/technologyawareness
" Financialgain− Meetstakeholderexpecta,ons;increasemarketshare
" HejyCosts− Returnsmaycausefinancialfallout
Building
" Buildaproducttofityourbusinessbasedoncustomerfeedback− Integratesandfitsbemerwithbusinessmodelandculture
" Highercostsindevelopment,resourcesandresearch
" Sloweradop,on" Needtobuildawarenessandcustomerbase
Industry-wide,morecompaniesare
acquiringbusinesses,notbuilding
www.GlobalOnePay.com
Past&CurrentIndustryM&As
" May2018:PayPalacquiresiZemle− $2.2Billion− Smallsbusinessmerchanttoolsin12interna,onalmarkets
" May2018:AdobeacquiresMagento− $1.7Billion− IntegrateseCommerceintoAdobe’sSuiteofCloudPlaoormtools
" December2017:FirstDatacompletesacquisi,onofBluePay− $760Million− 77,000newmerchants&450sojwareplaoorms
" December2017:TSYSacquisi,onofCayan− $1.05Billion− Geniusplaoorm;70,000merchantsand100+integratedpartnersintheU.S.
" December2017:Van,vacquiresWorldPay− $10Billion− Interna,onaleCommercereach;300differentpaymentmethodsacross146countriesand126currencies
" May2014:Van,vacquiresMercuryPaymentSystems− $1.65Billion− 3,000POSsojwaredevelopers&dealers
Q&A
Phone#:(XXX)123-4567EmailAddress:
THANK YOU!
www.GlobalOnePay.com
RodRKatzfey
SVP,Interna,onalAcquiring
Email:[email protected]