A view of the 3 key trends to emerge in the payments market in 2012 by Kris Hewitt (PayX International) and the implications for Nordic banks and payments institutions. This presentation was designed for the CAC Card Academy Payments Card Conference held in Oslo in November 2012

1. MEGA-TRENDS IN
PAYMENTS - 2012
WHAT TO EXPECT IN THE NORDICS
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KRIS HEWITT | 20-NOV-12 | CAC CARD ACADEMY CONFERENCE 2012 OSLO

2. CREDENTIALS
payx.com linkedin.com/in/krishewitt
WE ARE THE TRUSTED ADVISOR TO THE WORLD'S LEADING PAYMENT
BUSINESSES WHERE WE UTILISE OUR KNOWLEDGE AND EXPERIENCE TO
ENABLE THEIR SUCCESS
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3. 3 MEGA TRENDS OF 2012
CASH-LESS BANKING 3.0 DATA RUSH
A long imagined cashless Mobile banking is garnering a Many industries have been
future is (almost) upon us. great deal of attention, but revolutionised by the rise of
Convenience, new the savvy players are taking the Quants and access to
technologies and innovative things to the next level and powerful data analytics, this
new market entrants all sit unlocking significant is now crossing into
behind this new payments opportunities and capturing payments as Silicon Valley
eco-system. market share. wakes up to the value in
payments.
KEY THEMES & DRIVERS KEY THEMES & DRIVERS KEY THEMES & DRIVERS
DIGITALISATION SMART DEVICE GAMIFICATION RETAILERS-TO- TRANSACTIONS QUANTIFIED
OF MONEY PROLIFERATION OF SERVICES RETAIL BANKS AS A PLATFORM SELF
NFC DIY PSPS RISE OF THE DEATH OF THE BESPOKE REALTIME
SUBSTITUTION APPS BRANCH SERVICE ANALYTICS
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4. 3 MEGA TRENDS OF 2012
CASH-LESS BANKING 3.0 DATA RUSH
A long imagined cashless Mobile banking is garnering a Many industries have been
future is (almost) upon us. great deal of attention, but revolutionised by the rise of
Convenience, new the savvy players are taking the Quants and access to
technologies and innovative things to the next level and powerful data analytics, this
new market entrants all sit unlocking significant is now crossing into
behind this new payments opportunities and capturing payments as Silicon Valley
eco-system. market share. wakes up to the value in
payments.
KEY THEMES & DRIVERS KEY THEMES & DRIVERS KEY THEMES & DRIVERS
DIGITALISATION SMART DEVICE GAMIFICATION RETAILERS-TO- TRANSACTIONS QUANTIFIED
OF MONEY PROLIFERATION OF SERVICES RETAIL BANKS AS A PLATFORM SELF
NFC DIY PSPS RISE OF THE DEATH OF THE BESPOKE REALTIME
SUBSTITUTION APPS BRANCH SERVICE ANALYTICS
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5. DIY PSPS
STARTUPS ARE ENTERING THE PAYMENTS MARKET LIKE NEVER
BEFORE AS BARRIERS TO ENTRY HAVE EVAPORATED
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6. REASONS TO BELIEVE
Offers a free credit card reader for the An API wrapper for bank transfer, which Mobile app which allows users to link
iPhone, iPad, & Android devices, allowing allows any business or individual to tap their debit or credit card to a unique QR
anyone to accept credit cards into the UK direct debit network code and then scan this to pay for items.
PHENOMENAL GROWTH PSD AND TECHNOLOGY PIVOT TO LOYALTY
STORY COMBINE • Every merchant that accepts LevelUp
• In the three years since it’s been in • The EU Payments Services Directive as a form of payment also offers
operation in the U.S. it has grown from (PSD) and recent technological monetary savings to users. Users are
$1bn in payments processed annually to advances have created the perfect given “First-Time Visit Specials” and
$8bn. storm can unlock further credit.
WADING INTO MOBILE MERCHANT FRIENDLY STRONG UPTAKE AND
PAYMENTS FOR LARGE • Charges a one percent fee on the STICKINESS
MULTINATIONALS transaction, but never charges more • Now doing over $1 million transactions
than £2 a month and has100,000+ users. These
• Recently partnered with Starbucks,
users are making payments using the
where it will process all card transactions
across its 7,000 stores in the U.S. with PART OF A GROWING LevelUp system on average two to three
“FINTECH” WAVE
times a week.
scope to expand this globally.
• A string of digital firms like GoCardless
MAINSTREAM CROSSOVER
A NUMBER OF CLONES are exploiting the efficiencies of the
• Integrated with three of the top U.S.
HAVE EMERGED internet to offer financial services in
point-of-sale systems: Micros, Positouch
cheaper and simpler formats. These
• Copycats and rivals are emerging all the and Dinerware POS Systems, which
include: MarketInvoice, KashFlow and
time, notably: iZettle, PayPal Here, cover 30 percent of all POS systems.
TransferWise
VeriFone SAIL, Payleven, SumUp and
mPowa
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7. WHAT DOES THIS IMPLY?
For the Nordics, we believe this will mean:
1 LAUNCH OF FS OWN BRAND RESPONSES
2 CUSTOMER RELATIONSHIP IS KEY
3 iZETTLE CONTINUES TO SET PACE IN EUROPE
“As more companies are providing services instead of the banks, and the banks are
under fire, the message is being reinforced that these services can be provided by
other people in a better way” TAAVET HINRIKUS, TRANSFERWISE , JUL 2012
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8. 3 MEGA TRENDS OF 2012
CASH-LESS BANKING 3.0 DATA RUSH
A long imagined cashless Mobile banking is garnering a Many industries have been
future is (almost) upon us. great deal of attention, but revolutionised by the rise of
Convenience, new the savvy players are taking the Quants and access to
technologies and innovative things to the next level and powerful data analytics, this
new market entrants all sit unlocking significant is now crossing into
behind this new payments opportunities and capturing payments as Silicon Valley
eco-system. market share. wakes up to the value in
payments.
KEY THEMES & DRIVERS KEY THEMES & DRIVERS KEY THEMES & DRIVERS
DIGITALISATION SMART DEVICE GAMIFICATION RETAILERS-TO- TRANSACTIONS QUANTIFIED
OF MONEY PROLIFERATION OF SERVICES RETAIL BANKS AS A PLATFORM SELF
NFC DIY PSPS RISE OF THE DEATH OF THE BESPOKE REALTIME
SUBSTITUTION APPS BRANCH SERVICE ANALYTICS
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9. RISE OF THE APPS
THE GROWTH OF APPS USAGE WILL RESHAPE THE WAYS AND
MEANS MOST CUSTOMERS TRANSACT WITH THEIR BANK
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10. REASONS TO BELIEVE
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11. WHAT DOES THIS IMPLY?
For the Nordics, we believe this will mean:
1 LESS ME-TOO
2 ALTERNATIVE PAYMENT TOKENS
3 CUSTOMER SERVICE REVOLUTION
“We’re moving toward mobile personal financial management, where the consumer not
only has banking functions, but can also use the phone to do budgeting, receive
alerts about overspending, get offers etc” BEN LOVE, VP VANTIV, JAN 2012
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12. 3 MEGA TRENDS OF 2012
CASH-LESS BANKING 3.0 DATA RUSH
A long imagined cashless Mobile banking is garnering a Many industries have been
future is (almost) upon us. great deal of attention, but revolutionised by the rise of
Convenience, new the savvy players are taking the Quants and access to
technologies and innovative things to the next level and powerful data analytics, this
new market entrants all sit unlocking significant is now crossing into
behind this new payments opportunities and capturing payments as Silicon Valley
eco-system. market share. wakes up to the value in
payments.
KEY THEMES & DRIVERS KEY THEMES & DRIVERS KEY THEMES & DRIVERS
DIGITALISATION SMART DEVICE GAMIFICATION RETAILERS-TO- TRANSACTIONS QUANTIFIED
OF MONEY PROLIFERATION OF SERVICES RETAIL BANKS AS A PLATFORM SELF
NFC DIY PSPS RISE OF THE DEATH OF THE BESPOKE REALTIME
SUBSTITUTION APPS BRANCH SERVICE ANALYTICS
12

13. TRANSACTIONS AS A PLATFORM
SILICON VALLEY INVESTORS HAVE WOKEN UP TO THE FACT THAT
PAYMENTS EQUALS BIG DATA AND BIG REVENUES
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14. REASONS TO BELIEVE
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15. REASONS TO BELIEVE
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16. WHAT DOES THIS IMPLY?
For the Nordics, we believe this will mean:
1 THE NEW OIL
2 NOBODY HAS MONETIZED THIS YET
3 PARTNERSHIPS ARE KEY
“The platform in this case is the payment network. Software developers will add new
capabilities to cards by programming the payment network to link online applications
to specific payment events.” REID HOFFMAN, CHAIRMAN LINKEDIN, MAR 2012
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17. CONTACT US
KRIS HEWITT
Digital Payments Innovation
@krishewitt
kristian.hewitt@payxintl.com
St. James House Suite 5 2nd Floor 3340 Peachtree Rd NE
13 Kensington Square Tower Park Atlanta
London Graham Street, Georgia
W8 5HD Sliema SLM 1713 30326
UNITED KINGDOM MALTA USA
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