pse consulting /sidley austin merchant acquiring ... · © 2012, boku inc. all rights reserved •...

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PSE Consulting /Sidley Austin

Merchant Acquiring Conference

23 November 2012

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I am not alone

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Total E-retail Market – Month to

Month

3

IMRG Capgemini e-Retail Sales Index 2012

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IMRG Capgemini E-retails Sales

Index vs. ONS Retail Sales Index

(RSI)

4

IMRG Capgemini e-Retail Sales Index 2012

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Year on Year Growth in the IMRG

Capgemini E-retails Sales Index vs.

ONS Retail Sales Index

5

Rolling 13 Months

IMRG Capgemini e-Retail Sales Index 2012

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Growth on Cards is essentially Face

to Face

6

12%

15%

18%

25%

2%3%

2%

8%

UK US France Brazil

2010-15 e-comm card vol CAGR

2010-15 F2F card vol CAGR

27%

13%

9%

4%

UK US France Brazil

E-Commerce Card Volume as % of Total (CP +

CNP) Card Volume, 2011

E-Commerce Volume Growth vs. Face

to Face Volume Growth, estimated

E-Commerce Card Volume as % of

Total (CP + CNP) Card Volume, 2011

First Annapolis Research

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So where’s it all

going to end?

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The future of the High Street?

8

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Smartphones, PCs and Tablets

9

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Last year was the tipping point

…smartphone sales overtook PC

Sales

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Worldwide Internet-Enabled Device

Shipments

11

Q1:12 – Inflection

Point

Android Smartphones >

Windows PCS

KPCB Internet Trends 2012

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Global Internet Device Sales

12

We are

here

Gartner, IDC, Strategy Analytics, Business Insider Intelligence estimates

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Share of Device Page Traffic Over a

Day

13

Comscore, Telefonica, Marcquaire Capital (USA), December 2011

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Angry Birds Downloads vs. Nintendo

DS Sales

14

Business Insider Intelligence estimates, New reports and company releases

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Sales Growth

15

+312%M-commerce

E-commerce

Retail

+11%

<1%

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Selling in the 21st Century

• Consumers are better informed

and more deal hungry than ever

before

• Merchants can no longer rely

on location or reputation

16

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Merchants

• Drive down overheads

• Increase Sales

17

• Payment fees

commoditised

• New Customers

• Increased Basket

Size

• Conversion

• Daily Deals

• Loyalty Schemes

• Ruthless attention

to the customer

experience

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Reducing Margins

18

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Average Conversion Rate e-retail & m-

retail

19

IMRG Capgemini e-Retail Sales Index 2012

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How Big is your Base

20

Accounts with Credit/Debit Cards Linked (in millions)

100

150

400

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Closer to the merchant

the better chance of winning

21

Acquirers

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