1、Insights into Payments and Beyond Whos Who in Payments 2020 Complete Overview of Key Payment Providers Key media partner: Contact us For inquiries on editorial opportunities please contact: Email: To subscribe to our newsletters, click here For general advertising information, contact: Mihaela Mihai

2、la Email: Whos Who in Payments 2020 Complete Overview of Key Payment Providers RELEASE VERSION 1.0 MARCH 2020 COPYRIGHT THE PAYPERS BV ALL RIGHTS RESERVED TEL: + 31 20 893 4315 FAX: + 31 20 658 0671 MAIL: EDITORTHEPAYPERS.COM 3WHOS WHO IN PAYMENTS 2020 | MANAGEMENT SUMMARY As the payments value chai

3、n is maturing, retail prices for online payments are steadily dropping, while the level of service offered to merchants is only increasing. Consequently, payment providers aim to gain scale and increase capabilities through strategic acquisitions, constantly reshaping the payments ecosystem. This re

4、port describes the global payment solutions provider space today, defines the capabilities offered by the different participants in the ecosystem, and presents the dynamics of this space constantly shaped by innovation and consolidation. Our commitment Here, at The Paypers, we are aiming to provide

5、clear perspectives on the ever-changing commerce and payments environment, in order to help professionals and industry players stay abreast of all these developments and understand the opportunities that arise. With that in mind, we created Whos Who in Payments Complete Overview of Key Payment Provi

6、ders, a relevant source of reference and a must-read about the payments industry. The first edition of the report tackles some of the key trends that are relevant for merchants, payments professionals, and not only such as the size of the ecommerce market and the development of the payments ecosyste

7、m, the latest innovation in payments and essential trends to watch, the payment landscape of 2020, the M the West is also showing signs of movement in a similar direction however, the pace is a bit slower here, mainly due to regulatory constraints. According to the Global Payments Report 2020, China

8、 has become the largest consumer market worldwide, and the company projects that it will occupy this position through 2022 followed by the US and the UK. In terms of growth rate, J.P. Morgan argues that the markets worldwide that will enjoy 20%+ growth rates by 2021 for the B2C ecommerce market are

9、Indonesia (34.6% and an ecommerce market size of USD 13.6 billion), India (26.5% and an ecommerce market size of USD 36.5 billion), and Malaysia (24.0% and an ecommerce market size of USD 4.0 billion) closely followed by Vietnam (18.9%), Mexico (12.6%), and Thailand (12.5%). AsiaPacific, galvanising

10、 the world of payments With all the new technologies and market participants, the in creasing complexity of the payments regulation, the adoption of contactless tech, mobile payments, and the latest innovations in the payments landscape, disruption and growth characterise this space. Simply put, the

11、 adoption of digital payments is influencing our lives and reshaping societies around the world, by redefining commerce, bringing convenience, and providing a sense of security. And it seems as if the countries that understood this are benefiting from it. The AsiaPacific region remains the hotspot o

12、f the ecommerce market. Here, millions of new consumers start buying online every year not only in the developed markets, such as Japan, Singapore, or Australia, but also in emerging markets, such as Vietnam or Malaysia , making this region the centre of the global ecommerce payments market. 9WHOS W

13、HO IN PAYMENTS 2020 | TODAYS PAYMENTS INDUSTRY AN OVERVIEW The status of the ecommerce payments market in Europe In Europe, digital payments for ecommerce are used by millions of people across the continent. Ecommerce in the Eastern European markets is growing at an average rate of 19%, with 3.6% of

14、 all retail sales made online, according to PPRO. When it comes to Western Europe, analysts predict that the number of users who will start looking online for items at a discount (rather than on the high street) will increase in the near future and Euromonitor International expects ecommerce to acco

15、unt for 14% of all sales in Western Europe by 2021. Europes case is slightly different due to the regulatory changes happening in the region, but as ecommerce becomes safer, growth is bound to happen. Some of the main factors that impact the digital payments space in Europe, besides regulation, are

16、financial inclusion, request-to-pay (R2P) functionalities, and the rise of new technolo- gies (such as NFC, VR, or AI). The status of the ecommerce payments market in North America In North America, the growth in the ecommerce payments space is driven mainly by competition, with giant players sustai

17、ning the pace of progress a progress that is still slightly decelerated by mature technology infrastructures. With an ecommerce market that is worth more than USD 808 billion, growing at a rate of 13% a year according to PPRO, the most common online payment method in the region is the credit card (5

18、7% share of the ecommerce payments market), followed by e-wallets (with a 22% market share). In this region, super apps are not an important part of the ecommerce payments market landscape yet, but some internet giants have displayed some attempts to encompass the super app model in the West. Noneth

19、eless, a real user demand for the super app model does not seem to manifest in North America for now. Key developments in Latin America There are financial inclusion initiatives in Latin America as well, and the central bank of Brazil has announced recently that in November 2020 it will launch an in

20、stant payments platform called PIX. The platform will be available to the entire population, and it is expected to enable Brazilians to transfer money 24/7, making it easier to carry out transactions via QR code technology and via identification methods such as phone numbers, email, and national ID

21、numbers therefore, data will enable the payments, which will be credited instantly. Consequently, the adoption of account-to-account (A2A) payments will most probably see an increase in Brazil. In Latin America, with a population of 356 million, an online popu- lation of 218.3 million, and internet

22、penetration reaching 61%, ecommerce keeps on expanding. The economic environment in this region might still present some challenges, but the ecommerce payments market has grown in recent years, the total value of online commerce in Argentina, Brazil, Chile, Colombia, Peru, and Uruguay being worth US

23、D 41.22 billion according to PPROs Payments and e-commerce report for Central for faster payments, more banks are expected to follow by implementing instant payment capabilities. Instant payments is an important development for Europe as a key strategic building block to respond to the dominance of

24、card schemes and the increasing popularity of - and growing dependence on - alternative pay ment networks. Innopay 13WHOS WHO IN PAYMENTS 2020 | TODAYS PAYMENTS INDUSTRY AN OVERVIEW Domain 2: Platforms on top of payment infrastructure Domain 2 covers payment platforms, which facilitate the purchase

25、step in the customer journey of the payer. Besides initiating the required money transfer via connected traditional payment instruments (facilitating payment), payment platforms enable different variations on the transaction trinity (each transaction consists of an agreement, payment and delivery st

26、ep) as illustrated in figure 3. While agreement and delivery usually are outside the scope of actual payment, payment platforms provide increasingly more options to manage timing and order of payment and delivery to ensure a trusted transaction between payer and payee, for instance withholding payme

27、nt to the merchant until a product has been delivered to the payer. Figure 3: Payment Platforms facilitate a variety of purchase flows by managing pay and delivery Payment platforms developed their functional capabilities to support a larger variety of transaction types. Examples include Yandexs pee

28、r-2- peer payments and PayPals consumer credit offering. Next to functional developments, consolidation of platforms is taking place (eg acquisition of Chinese GoPay by PayPal to increase their presence in the Chinese market and relevance for Chinese merchants) as a method to increase reach and volu

29、me of payment solutions. Increasing competition between platforms fuels consolidation via mergers and blurs boundaries. In order to stay relevant, players choose different strategic paths, eg acquire capabilities to strengthen geographical footprint, to specialise in specific merchant segments and v

30、erticals or expand service portfolio with value-added services. More on this development in domain 4. Innopay 14WHOS WHO IN PAYMENTS 2020 | TODAYS PAYMENTS INDUSTRY AN OVERVIEW Domain 3: Online Banking ePayments Domain 3 covers the development of banks and banking communities offering online banking

31、 services to initiate electronic Payments (OBeP) from one bank account to another. Overall, there were two types of OBeP solutions: monobank solutions and multibank schemes (such as iDEAL). An important addition is the third-party payment initiation interface as required by the revised Payment Servi

32、ce Directive (PSD2). Banks are mandated to expose at least one interface (and a fallback mechanism, where required) to facilitate payment initiation by licenced third parties. These third parties require a specific PSD2 licence for the role of Payment Initiation Service Provider (PISP), which is a r

33、egulated role under PSD2. Note that third party providers initiating payment directly from payment accounts is not a new phenomenon. Players like Sofort and Trustly, for instance, have managed to build strong positions in selected markets with their business models. These players will now be regulat

34、ed as PISP under PSD2. Other developments in this domain are the customer journey improvements for customers by both non-banks and banks, as illustrated by figure 4. Banks are now developing their monobank solutions with improved journeys themselves such as in-app person-2-person (P2P) payments. Ano

35、ther interesting development is using OBeP at the physical POS banks and non-banks are developing propositions to enable POS payments through the mobile banking app. For example, Payconiq is developing POS payment propositions (directly linked to payment accounts with various banks in the BeNeLux an

36、d Germany) through QR codes that can be scanned via the Payconiq mobile app. Other examples include TWINT (CH), MobilePay (Nordics) and Bizum (ES). Figure 4: P2P payments simplify the customer journey for payments between consumers Innopay 15WHOS WHO IN PAYMENTS 2020 | TODAYS PAYMENTS INDUSTRY AN OV

37、ERVIEW Domain 4: Payment Service Providers offering simplicity to merchants Domain 4 covers the role of Payment Service Providers (PSPs), and mainly focuses on aggregating payment methods and offering easy access to these methods for payment acceptance by merchants. The PSPs market for core payment

38、transaction processing services is maturing, evidenced by the increasing price pressure faced by hundreds of incumbent PSPs and the strong drive towards consolidation. Staying on top of the game is challenging with the ever-evolving consumer and merchant payment needs. PSPs are pursuing various stra

39、tegic paths to cope with the changing market dynamics: 1. Strive for cost-leadership through global reach and scale, flexibility and backward integration (eg Global Payments acquiring TSYS, Fiserv acquiring First Data, FIS acquiring Worldpay, Worldline announcing to acquire Ingenico) 2. Pursue niche

40、 plays by offering best of class services in a specifically chosen horizontal or vertical market and merchant size (eg Stripe, Braintree, and SumUp focusing on vertical niche markets and typical smaller merchant size 3. Explore options before, during and after the payment-step in the buying process,

41、 to provide a more complete merchant service offering as depicted in figure 5. Examples include PayPals acquisition of iZettle and Adyens banking licence for improving their omnichannel offering in their merchant offerings We also observe the market entry of new parties that integrate the diverse se

42、rvice portfolio of the various PSPs in the world, effectively aggregating PSPs (which were originally aggregating services on their own). Examples include ProcessOut, Alpha fintech, ZooZ, Ixopay and Spreedly. Services typically include optimisation of transaction routing (selecting best fitting PSP

43、for any given transaction), dashboarding key indicators across PSPs and aggregated reconciliation services. Figure 5: Growth strategy 2: Pre- and Post-payment Services being explored before, during and after payment Innopay 16WHOS WHO IN PAYMENTS 2020 | TODAYS PAYMENTS INDUSTRY AN OVERVIEW Domain 5:

44、 Mobile revolution The rise of mobile as a consumer channel for payments initiation is the focus of domain 5. The Mobile app has replaced the online web banking environment as the preferred channel for interaction with the bank, as illustrated in figure 6. The consumers mobile preference has led to

45、the rise of challenger banks that have a dedicated focus on the mobile channel. Banks such as N26, Revolut and Bunq do not have physical branches for consumers, virtually all banking services are accessible via an app-only approach. These mobile banks have entered the market with compelling customer

46、-centric payment and banking propositions (B2C). Some of these challenger banks are seeking to leverage their technology assets by developing new business propositions (B2B). Examples include Fidor, Monzo and Starling bank that are aiming for business customers with their B2B banking propositions. F

47、igure 6: Traditional channels are replaced by new mobile-only channels Innopay 17WHOS WHO IN PAYMENTS 2020 | TODAYS PAYMENTS INDUSTRY AN OVERVIEW Domain 6: Online continents Domain 6 covers the rise of online platforms (GAFA BAT = Baidu, Alibaba, Tencent Innopay 18WHOS WHO IN PAYMENTS 2020 | TODAYS

48、PAYMENTS INDUSTRY AN OVERVIEW Domain 7: Payment solutions; previously wallets Previously, domain 7 covered wallets (aggregating cards) aimed at reducing checkout complexity for consumers. Recently, new payment solutions have entered the market and the wallet domain has expanded beyond card aggregati

49、on: P2P payments have really taken off, PSD2 payment services are increasingly emerging and wallets incorporate non-payment related services to further support consumers. At first, P2P payments were off to a relatively slow start. Consumers were not very willing to pay for this type of service, especially since they were comparing it with payments via OBeP or via Payment platforms, which are considered (virtually) free of charge. However,