Land to Expand

Establish Foreign Legal Presence to Increase Revenue and

Profitability

Neeraj Gupta

Leader of International Product,

Vantiv

Kristin Hagan

Leader of Global Partnerships,

Zuora

Growing International Opportunity

page

03

The rest of the top-10

markets combined are

growing at ~25%

every year.

Projected eCommerce Sales for the 10 Largest Markets

Others Countries

Among Top 10

United States

In the US, eCommerce sales are

growing at ~12% yearly.

Many Ways to Enter Overseas Markets

page

04

taking the

tour

accidentally

global

permanent

resident

Setting Up Shop Overseas

Be closer to existing customers

Understand prospective

customers better

Streamline supply & distribution

chains

What else?

Less Obvious Advantages

page

06

Pricing in local currency goes a long

way to boosting conversion/acquisition.

Local presence goes one step further

by maximizing approval rates on

credit/debit card payments.

Increased Sales

Maximize profitability by reducing FX

risk and fees and reducing the fees

imposed by card brands and issuing

banks—all through local legal

presence.

Reduced Cost

REVENUE

Ecosystem Background

page

08

ISSUING BANK MERCHANT ACQUIRING BANK

I A

How Issuers Make Decisions

page

09

I A

Impacts to Top Line

page

010

Increased Card Approval RatesIssuing banks tend to allow far more domestic authorizations than those

cross-border. In some markets, can be an all-or-nothing proposition.

Reduced Foreign Trxn Fees to CustomersIssuing banks will often levy these fees when shopping cross-

border. Merchants don’t see these but they can deter conversion.

approval rate

8%~potential lift in sales (£)

TTM

£970K

potential lift in sales ($)

TTM

$1.2M

Example Results

PROFITABILITY

Ecosystem Background, Revisited

page

013

I A

EU Interchange Fee

Regulation

Caps fees imposed by issuing

banks and card brands on

merchants.

Credit - 30 bps + EUR 0.05

Debit - 20 bps + EUR 0.05

Impacts to Bottom Line

page

015

Reduced Cost of ProcessingDomestic credit and debit card transactions are subject to far lower

issuer (interchange) and card brand (assessment) fees.

Reduced Risk and Fees Due to FXReceive proceeds of net sales in local currencies to avoid

repatriation and associated currency conversion risk and cost.

passthrough fees

77%

reduction in cost ($)

TTM

$240K

Example Results

CONCLUSION

What’s Next

page

018

Increased Sales

Reduced Cost

Establishing operations in overseas markets is a logical

step in your global strategy: increasing customer

acquisition/retention efforts while lowering costs from

reduced cross-border transaction fees.

1. EU US Privacy Shield: Effectively replacing Safe Harbor

2. PSD2 Regulations & Deadlines (UK and EU): What this means?

3. Payment Method Shift: Credit Cards declining in favor of APM

Alternative Payment Methods: non-card (Direct Debit options: SEPA,

BACS, etc.

On the Horizon…

Q & A to follow

Q&A

thank you.