Thank you everyone for coming to our second BayPay Event of the year 2013, to our speakers who took th etime to preapre and give some insights on their segment of the commerce and payment market without making it a sales pitch while still sharing their vision and of course our sponsor Intuit for making this event possible.
We will post all the presentations from the speakers in the order they were presented later this week.
For the full agenda and the list of attendees,click here.
CLOs (Card Linked Offers) have been around for quite some time now – since around 2009. As the name suggests, the concept revolves around offers based on credit/debit/prepaid cards and their usage. It is a transaction-based marketing program. The program- with a well crafted model – delivers immense benefits to the consumers, merchants and the banks.
Marketing and Advertising always has been a shoot-in-the-dark for the merchants and advertisers. The CLO has been a precise targeting machine – that can deliver offers to consumers at the right place and the right time. With no changes to the POS systems or no training to the storefront and cashier functions.
I will get into the details of the CLO mechanics, integrations and operational details at a different time, but in this post, I would like to just give a perspective on some of the leading CLO programs and how they are operating in the payment ecosystem.
You might have heard about several CLO players – Cardlytics, Cartera, CardSpring, edo Interactive to name a few. These innovative companies have injected their solutions at various places in the payment ecosystem to deliver the CLO solutions. They have partnered/been acquired/sold their products and services to the payment ecosystem incumbents. The below diagram shows some of those associations.
As you can see in the diagram above, the CLO-startups have associated themselves with either the processors, payment networks or FIs.
Critical Success Factors
There are different business models of the CLO programs in the above-mix. Just like in any new program in a multi-platform environment, care has to be taken to ensure that all the parties receive sustained benefits. For the CLO program to get into a positive spiral cycle, the following aspects should be carefully watched.
1. Quality of offers enough to tick the consumer
2. Quick ROI for the merchant. (Merchant’s offer spend should exceed profits due to increased sales at a minimum)
3. Increased card usage for the bank leading to increased interchange revenues
Who is positioned to win in the CLO game?
Original post: http://www.niksepa.com/?p=552
If you are an online PSP, eCommerce volume is one of the main criterion to look at where to expand internationally. Of course, growth rates, competition, payment types, fraud management, etc. are important determining factors, but here is just a view of the relative sizes of online payments (b2c only):
PS: Don't pay very close attention to the exact numbers. Different surveys and reports come up with different numbers. This will, however, a rough idea on the relative sizes..
The most important country specific knowledge you need to have before expanding your services in a new country at a 50,000 feet is:
Here is a quick snapshot of the payment scenarios in some big non-US markets. Note that because of the online-offline convergence, we need to look at what's happening online as well as retail markets.
And finally, here is a look at the credit card/debit card trends in those regions. One can see the usage trends and based on that decide what payment instruments to support when expanding to those countries.
Here is a glance at the worldwide PSPs.. Most of the US and European PSPs provide services in other markets as well. Have listed some regional players as well in those countries..
This post can never be comprehensive and will always be work-in-progress, but I hope you can get an idea of the state of the PSPs in some important parts of the world.
PS: The logos and trademarks belong to the respective companies.
If you need more details, please contact me phanee at niksepa dot com!
This presentation occurred during the first BayPay event on January 17, 2013 at Wilson Sonsini in Palo Alto, California.
As BayPay is not completely opened to the general public and reserved to payment and commerce professionals, access to this presentation requires prior login.
Feel free to comment below if you have remarks.