Opportunities for Online Banking epayments Innovating esepa beyond the end date

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1 Opportunities for Online Banking epayments Innovating esepa beyond the end date Vincent Jansen - 22 March 2013 tomorrow s transactions today

3 Vincent Jansen Senior Innopay I care about OBePs tomorrow s transactions today

4 Agenda Vision Why should banks innovate through OBeP? What if banks don t step in? How to innovate? Conclusions 4 Opportunities for OBeP Vincent Jansen, Innopay 22 March Innopay BV. All rights reserved.

5 Vision tomorrow s transactions today

7 Opportunities for OBeP Vincent Jansen,

8 Opportunities for OBeP Vincent Jansen,

9 Age verification The merchant has asked to verify that you are over 18. Since you are, you can now complete the transaction. 9 Opportunities for OBeP Vincent Jansen, Innopay 22 March Innopay BV. All rights reserved.

11 Contract & e-mandate signing in a single session Select your bank to sign your contract and to give an e-mandate 11 Opportunities for OBeP Vincent Jansen, Innopay 22 March Innopay BV. All rights reserved.

an e-mandate 11 Opportunities for OBeP Vincent

17 Why should banks innovate through OBeP? Because the markets demands it Because the ingredients are there Because there is a business case And it s already happening 17 Opportunities for OBeP Vincent Jansen, Innopay 22 March Innopay BV. All rights reserved.

Because there is a business case And it s already happening 17

18 Because the market demands it ecommerce Europe urges the European payments industry to harmonise the online payments landscape by implementing the MyBank scheme and offering accompanying services (e-mandates, e-identity) to both merchants and consumers. The regulators look for solutions that will allow them to start enforcement of policies Effective age verification and emandates solutions are required before killing self declared age and mandates by checkbox Although consumers don t demand actively they would prefer to use something they know and trust: their online or mobile banking environment. 18 Opportunities for OBeP Vincent Jansen, Innopay 22 March Innopay BV. All rights reserved.

The regulators look for solutions that will allow them to start enforcement of policies Effective age verification and emandates solutions are required before killing self

19 Because the ingredients are there Banks know their customers Leveraging KYC into verified identities and attributes Banks have strong authentication Both on internet banking and mobile banking the appropriate mechanisms are in place Banks have the capabilities Both transaction infrastructure and execution (and sales) power Banks have the consumer reach Online and mobile banking customers are the ones that do ecommerce 19 Opportunities for OBeP Vincent Jansen, Innopay 22 March Innopay BV. All rights reserved.

capabilities Both transaction infrastructure and execution (and sales) power Banks have the consumer reach Online and mobile

20 Because there is a business case Volumes in additional services can be significant Example: In 2013 citizen authentication by the Dutch government in will exceed the number of ideal transactions (112M for 2012). Opening up the OBeP bank credentials and using it also for C2B authentication would even grow that market more. Value created with additional services can be significant Signing of documents online will enable merchants to kill paper. Also conversion rates will rise because of on the spot signing. Providing the right verified attributes will lower merchant risk. Value add can be priced (way) different than payments 20 Opportunities for OBeP Vincent Jansen, Innopay 22 March Innopay BV. All rights reserved.

Value created with additional services can be significant Signing of documents online will enable merchants to kill paper.

21 And it s already happening emandates is (or will be) the disruptive innovation! Banks are moving from core business payments into eidentity, disrupting that market An emandate a payment An emandate = a signed document Liability exposure is completely different Not directly related to a specific transaction amount 21 Opportunities for OBeP Vincent Jansen, Innopay 22 March Innopay BV. All rights reserved.

22 What if banks don t step in? Wait until other service providers or government does Takes very long (or huge amounts of money) to create the same reach, with the same level of knowledge about the consumer and the same level of security of the credentials Wait until other service providers leverage the bank s assets Access to the payment account will open up bank s assets as a building block for value added services of new entrants 22 Opportunities for OBeP Vincent Jansen, Innopay 22 March Innopay BV. All rights reserved.

23 How to innovate? Local markets have different demands On topics like eidentity, age verification regulation, privacy, etc. the EU is not a union (yet) Pan-EU product development tends to be a compromise Don t compromise before you know what to compromise on Innovating at a pan-eu level requires new ways of engagement Start locally, fulfilling local needs Organise a pan-eu platform to monitor and consolidate successful initiatives Create generic OBeP interoperability for pan-eu reach 23 Opportunities for OBeP Vincent Jansen, Innopay 22 March Innopay BV. All rights reserved.

24 Conclusions There s market demand for services based on the trusted online and mobile banking experience, both from consumers and from merchants. Banks have the assets and the capabilities to create such services with the proper reach and there is a business case. Alternatives are years away, but market demand will find ways to fulfill its needs if banks don t act. Local innovation and piloting of services is the way forward. Organise a pan-eu platform to monitor and consolidate successful initiatives. 24 Opportunities for OBeP Vincent Jansen, Innopay 22 March Innopay BV. All rights reserved.

25 Thank you for your attention Vincent Jansen tomorrow s transactions today

Position Paper e-payments

Position Paper e-payments 10 Recommendations for a Stronger e-payments Landscape in Europe www.ecommerce-europe.eu POSITION PAPER 3 Introduction: Ecommerce Europe Ecommerce Europe (www.ecommerce-europe.eu)