Nuovi ruoli e protagonisti nelle carte di pagamento

Transcription

1 Nuovi ruoli e protagonisti nelle carte di pagamento Gian Bruno Mazzi CEO - SSB Carte 2006 Roma, 27 novembre

2 AGENDA SEPA for Cards Schemes Acquirers, Issuers Processors Conclusions 2

3 SEPA Card Framework (SCF) in pills. - Key Facts - Payment Cards have to be able to transact seaming less in SEPA Separation of card scheme governance, processing and other functions is key Schemes Rules requirements on membership, licensing, open business model, transparent pricing structures ( scheme fees ) not bundled Further standardization in key domains and overall... type of cards to be replaced by other services linked to payment cards domestic to be replaced by SEPA cross border to be replace by outside SEPA SEPA ISSUES 3

4 Standards are the fundamental building blocks of a real open market and EPC strong governance is key for success. In order to ensure that payments in the SEPA are efficient, it is essential that customer-to-bank, bank-to-bank and bank-to-customer standards are agreed and implemented so that Cardholder to terminal Interface CIR / TWG EMV EMVCo Transaction EPAS Authorizations Clearing EURO ALLIANCE Terminal Architecture Application Loading ERIDANE Efficiency is increased Cost are driven at a minimum level Interoperability is enabled Security is spread on the entire value chain Fraudsters activity can be controlled Level of straight-through processing is maximised. Acquirer Issuer As a minimum, this calls for open and common standards that are available to all EU processing services and infrastructure providers for euro payments, so as to prepare for interoperability and effective competition. 4 May Joint statement from the European Commission and the European Central Bank SEPA ISSUES 4

5 AGENDA SEPA for Cards Schemes Acquirers, Issuers Processors Conclusions 5

6 SCF is addressing competition and transparency of domestic and international card schemas to allow more choices for issuers. - Key facts for domestic schemes - They are evolving and some of the larger are already SEPA compliant Their geographic coverage could be expanded to became regional players - Key facts for international schemes - The separation between a scheme company and an infrastructure operator is a key principle for SEPA ICS are defining new types of licences, introducing a SEPA license Euro Alliances has potential to grow into full third force card scheme and already demonstrated the technical feasibility of the interlinking concept. Additional domestic schemes could adhere and potentially create an alternative to ICS Pressure from European Central Bank about harmonization of interchange fees SCHEMES 6

7 International schemes ought to evolve and give a pragmatic SEPA oriented answer to the issues related to their business models. - Key issues for international schemes - 7 SCHEMES While the Eurosystem welcomes the willingness of Visa and MasterCard to offer domestic card services for the euro area, it is deeply concerned about a possible evolution whereby the two international card schemes progressively become the only providers of card payment services offered by banks in the euro area. Up to now, the two schemes have functioned with very similar business models, with relatively high cost structures and high interchange fees, which leads the Eurosystem to fear that competition limited to these two systems would be insufficient to maintain the present low level of fees in Europe. Additional worries are triggered by uncertainties about the governance of the two systems November The Eurosystem s view of a SEPA for cards November The Eurosystem s view of a SEPA for cards

8 The current uncertainty with respect to how interchange fees will evolve in the future is one of the main factors delaying SEPA-related decisions. Any significant change will have large impacts on market structure. Impact of a Convergent MIF on Issuers-Acquirers Impacts on Issuers - - Impacts on Acquirers - Massive Reductions in Interchange received per cardholder per annum: France - 39 Large Reductions in: Italy - 11 Portugal - 8 Austria - 5 Poland - 5 Spain - 4 Major Increases in: Denmark 18 Finland 11 Netherlands 6 Massive Reductions in MSCs paid per POS per annum: Portugal Austria France Large Reductions in: Poland Italy Spain Major Increases in: Denmark 970 Netherlands 480 Finland 370 Source: PSE research 8 Belgium 5 Belgium 300 SCHEMES

9 AGENDA SEPA for Cards Schemes Acquirers, Issuers Processors Conclusions 9

10 Acquiring business sector is under regulators lens and market competition pushing in the direction of consolidation and specialization. - Key facts - Some larger banks establish own acquiring business across geographical borders to meet customers throughout the whole value chain, while others sell off their acquiring portfolio as it is not seen as core business. Acquiring businesses must stand alone and some processors have expanded their value chain by becoming terminal operators and commercial acquirers. The market is dominated by over capacity and the expectation is considerable consolidation. Larger merchants are becoming increasingly sophisticated and international and thereby also less loyal towards national acquirers. It will become more widespread to offer a wide range of services within the acquiring package to the merchant. Outsourcing is the answer for many for cost reduction in transaction processing (which accounts for about 40% of overall costs). ACQUIRERS, ISSUERS 10

11 An acquiring market update. EuroConex, TSYS and First Data increasingly dominate the European market with continuous acquisitions (you don t get customers, you buy them) EuroConex has bought Citibank s acquiring business (3-400,000 merchants) First Data creates acquiring joint venture with BNL and form strategic global acquiring alliance with ABN AMRO Nordea, Point and Svensk Handel form partnership regarding the sale of a combination of an EMV terminal and acquiring agreements ACQUIRERS, ISSUERS 11

12 SCF will have a profound impact on Issuing companies but significant competition pressures are coming from new areas. - New issuing players - Oil & Gas company are issuing Fuel cards at a surprising rate (and have already developed pan european proprietary schemes) Large retailers payments programs are successful throughout Europe Non banking institutions (i.e. Pay Pal) have a large customer base to develop and cards are a feasible option even today Airline have already demonstrated their ability to attract, and deliver, millions of cards Electronic money companies are addressing cards issuing as a primary option for business development ACQUIRERS, ISSUERS 12

13 Card payments are one of the most important sector of the outsourcing market in Europe and shared utilities has the largest market share. 2004, EU 16 Debit cards 100% = 326,9 mil cards In-house 36 Credit cards 100% = 328,5 mil cards In-house 55 Issuing Shared utilities 59 5 Thirdparty Processor Shared utilities Thirdparty Processor 100% = 14,0 bil transactions 100% = 8,3 bil transactions Acquiring 35 In-house 64 In-house Source: McKinsey 2006 Shared utilities Thirdparty Processor Shared utilities Thirdparty Processor ACQUIRERS, ISSUERS 13 Fonte: RBR, analisi McKinsey

14 AGENDA SEPA for Cards Schemes Acquirers, Issuers Processors Conclusions 14

15 Market evolution forces a fast and coherent redefinition of market infrastructures roles and the direction is toward process simplification and entities aggregation. - Automated Clearing House - - Card processors - European landscape is diversified in terms of volumes, technologies, processes, services and shareholders Market analysts indicate at about 5 billion transactions the volume of operations needed to have a stable presence in SEPA. Card Processors European landscape is diversified in terms of cards managed, transaction phases management, Issuing- Acquiring, Added Value services and shareholders and target markets Market analysts indicate at about million cards the volume of operations needed to have a stable presence in SEPA. The average transaction volume of European ACH is 2.4 Billion The average cards number of European Card Processors is lower than 15 millions PROCESSORS 15

16 Consolidation is on-going for both ACHs and Card Processors entities, but possible outcomes are different. PROCESSORS 16

17 Current european landscape for ACHs and Card processors isn t completely disjointed. Some interbanking infrastructures are operating as ACHs and Card Processors (usually in the national debit arena) The roles combination adds complexity in operations management but allows larger scale economies ACH Card Processor PROCESSORS 17

18 Commercial Processors (TPPs) are very aggressive in M&A area, with the goal to buy customers and markets they currently doesn t own. - Competition landscape update - Settembre Novembre Novembre Ottobre Fusione tra tra Interpay e TAI e nascita di di Equens Acquisizione in in corso di di Cekab da da parte di di PBS Possibile vendita di di Polcard da da parte di di G-Tech (DeAgostini) Bid formale per la la vendita di di BSB da da parte Banca Centrale Polacca Dicembre? Giugno Imminente cessione di di PaySquare da da parte di di Equens // Interpay Acquisizione di di GZS da da parte di di First Data International (140 mln EUR) Luglio Acquisizione di di Banksys e BCC da da parte di di Atos Origin (300 mln EUR) 2007???? Processor in in Russia e Ucraina 2006 Nascita di di Key Client Card Solutions Gennaio 2007 Fusione tra tra SSB e SIA Novembre Acquisizione di di easycash da da parte del fondo americano Warburg Pincus (120 mln EUR) First Data International è stata costretta a vendere la la società (gontrollata da da GZS) dall autorità antitrust per posizione dominante sul mercato tedesco Dicembre Processo formale di di vendita di di GBC Agosto Processo formale di di vendita di di PayNet Non ancora annunciato il il compratore PROCESSORS 18

19 SSB has internationalized its business through several strategic projects in order to lay the foundations to become a truly pan-european operator. - SiNSYS selected customers - Iceland Norway Finland Sweden Estonia Latvia Ireland Denmark Lithuania The Netherlands Russ United Kingdom ia Belarus Germany Belgium Poland Czech Rep. Slovakia Ukraine France Austria Switzerland Hungary Slovenia Moldova Romania Croatia Serbia Montenegro Bosnia - H Portugal Italy Bulgaria Spain Albania Macedonia Greece PROCESSORS 19

20 Il sistema Italia è stato in grado di creare attori di riferimento a livello europeo, che si rafforzeranno ulteriormente con la fusione. - I fatti - - Le direttrici strategiche - Dalla combinazione dei posizionamenti competitivi di SIA e SSB, nasce il nuovo Gruppo, tra i primi in Europa e leader sul mercato italiano: processing carte sistemi di pagamento capital markets Completare la gamma d offerta di prodotti e servizi per il processing delle carte Sviluppare l offerta nei pagamenti europei Assicurare i servizi alle società mercato e focalizzare l offerta per gli intermediari finanziari Gli obiettivi economici del nuovo Gruppo nel 2008 sono 400 mln di euro di ricavi e un EBIT pari a circa il 13% dei ricavi Perseguire la crescita organica e per linee esterne Conseguire economie di scala PROCESSORS 20

21 AGENDA SEPA for Cards Schemes Acquirers, Issuers Processors Conclusions 21

22 Card processing in a changing world: retain our competitive edge while raising our ambitions! SEPA Rules Standards M&A Schemes Role New players New Pricing Definitely and continuosly increase our geographic coverage of European market, sharing with customers benefits arising from realised economies of scale Larger card processing value chain coverage with a combination of Information Technology, value added and back office services, to realize the full business potential of our offering A LOOK TO THE FUTURE 22

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