Online Shopping Trends

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  • Where does Jo Lawrence work?

  • What do multi channel customers spend more than one channel customers?

  • What type of internet use does the 3 - D Secure Tokenisation?

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1 Online Shopping Trends Jo Lawrence - Senior Relationship Manager, DataCash a MasterCard company Raimonds Keris - E-Commerce Baltic Product Manager - Swedbank

2 Who is DataCash? DataCash is part of the MasterCard group Technical Solution Provider to Swedbank, specializing in multi-channel payment solutions Global trade with focus on European market, inclusive of Lithuania, Latvia and Estonia. Offer world class fraud management services Expertise working with small through to large merchants across all sectors Enable merchants to accept a wide variety of payments, including credit & debit cards, e-wallets & alternative international payment options Online Shopping Trends 2

3 Global Digital Payments 33,000 Merchants 112 Acquirers Operating in 40+ countries Supporting 177 currencies & 40+ payment types 1.3 Billion Transactions Annually 27% year on year transaction growth Online Shopping Trends 3

4 Servicing some of Europe s Leading Brands Retail Telecoms Financial Other Gaming Government Leisure Travel Various Borough Councils Online Shopping Trends 4 4

5 Current and emerging trends

6 Continued e-commerce growth E-Commerce has reached above 5% of total retail sales worldwide Global E-commerce sales to exceed 1 trillion this year M-Commerce, has already risen 55% compared to a year ago By 2018, cross-border online shopping will increase to 244 billion with 130 million cross-border online shoppers smartphones used for in-store sales, on retail purchases, will increase to 19% of total store sales by 2016 USA, UK and China are the most popular overseas markets to buy from Global B2C E-Commerce Sales & Shares Report 2013 ebay cross-border Ecommerce sales report 2013 Business Internet Technology Online Shopping Trends 6 Deloitte

7 Emerging innovations Online Shopping Trends 7

8 Drivers of digital evolution Supply Conditions Demand Conditions Innovation and Change Access Infrastructure Bandwidth, servers, security and accessibility of digital content Internet & Social Media Savviness Broadband and mobile Internet use, use of informational websites, social media usage Financial Savviness Consumer use of financial services and digital payment technology Extent of Disruption User adoption new tech and services, advertising Ecosystem Attractiveness & Competitive Landscape Private equity investment, business focus on customers Online Shopping Trends 8

9 Expansion is key to growth Multi-channel customers on average spend between 15-30% more than single channel customers Online Shopping Trends 9

10 Baltic trends

11 E-commerce trend in Baltic Transactions +10% +10% +3% +40% +15% +30% Online Shopping Trends

12 E-commerce trend in Baltic Volume +10% +30% +65% Online Shopping Trends

13 Essential functionality and services for e-commerce success

14 Key features for success Support for mobile 3-D Secure Tokenisation Online Shopping Trends 14

15 Support for mobile Optimising ecommerce sites for smart devices is now common industry practice Merchants have not stopped innovating... Mobile Optimised Hosted Payment Pages One merchant using the DataCash platform recorded online mobile sales of more than 1.5 million on one Saturday night as 13% of customers used their mobile devices to purchase food ENHANCED CUSTOMER EXPERIENCE INCREASED CONVERSION RATE Online Shopping Trends 15

16 3-D Secure Authenticated payment system to improve online transaction security and encourage the growth of e-commerce payments. Increases customer confidence when shopping online Protects cardholder against unauthorized use. Added layer of fraud protection Can result in liability shift Online Shopping Trends 16

17 Tokenisation Converts card numbers into tokens Tokens: are unique, just like a card can be used to perform authorizations instead of card numbers Benefits No storage of Card numbers lowers Merchants PCI requirements Enhances efficiency of customer shopping experience Encourages repeat purchases Online Shopping Trends 17

18 Swedbank Payment Portal

19 Swedbank Payment Portal A new e-commerce solution for merchants including enhanced payment functionality needed to do business online Payment methods Cards Transaction switching and fraud screening for merchants. Multiple payment options for consumer Bank Link Swedbank Payment Portal Merchant e/m Commerce site Swedbank will offer a Virtual Terminal for Online Merchants Online Shopping Trends

20 Swedbank Payment Portal Provides functionality merchants need to successfully expand into e-commerce Meets acceptance needs - processes extensive range of card and non-card payment types and supports mobile Secure incorporates 3-D Secure and sophisticated fraud management tool to minimize risk of chargebacks without impacting genuine sales Creates a positive customer experience to encourage repeat purchases Tokenization Accommodates Retail business model - enables split shipment and recurring payments Highly resilient processing capacity powered by DataCash a MasterCard company Online Shopping Trends

21 Swedbank Payment Portal Merchant reporting tool Monitor and manage transactional information Carry out manual processes which include cancellations, refunds and fulfillments. Available for fast and easy access to real-time transaction data 24 hours a day 7 days a week. Online Shopping Trends

22 Swedbank Payment Portal Integration methods Integration for merchants is a quick and seamless process. Card payment page The methods available minimize shopping cart abandonment through creating a quick, secure, seamless customer experience: Direct API Hosted payment pages (HPS or HCC) reduce burden of PCI compliance Available languages: English, Estonian, Latvian, Lithuanian, Swedish, Norwegian and Danish. Russian available in Nov Online Shopping Trends

23 Swedbank Payment Portal Benefits Get your online business up and running quickly with a quick and seamless integration Create a positive customer experience through a quick, undisrupted checkout and features that aid convenience for the consumer Optimize online sales through a payment process consumers can trust is secure Reduce security burdens of compliance with PCI DSS requirements and minimizing fraud Online Shopping Trends

24 Thank you!

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