Insights into Payments and Beyond

Payment Methods Report 2022

Latest Trends in Payment Preferences

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Payment Methods Report 2022

Latest Trends in Payment Preferences

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 Foreword

Anda Kania

Lead Editor for Payments and

Commerce, The Paypers

Dear reader,

First of all, thank you for downloading our Payment Methods Report 2022. Getting to this point means you’re just starting out on a wonderful

learning journey about how people pay and what trends are shaping the future of payments.

The increasing number of digital shoppers prompts industry players – especially merchants, PSPs, payment methods providers, and fintechs

– to push innovation forward in a bid to offer superior customer experiences. The key trends that have been defining ecommerce in the last

two years are convenience, security, and speed. Only by meeting these elements, ecommerce businesses could stay on a competitive edge.

For this reason, the 7th edition of this report brings out to our readership the most updated picture of the latest developments in the payment

methods space and the innovative technologies that these methods work upon, emerging consumers habits, and strategies on how to win

at conversion, retention, and security.

What you’ll find in this report

Payment methods of the moment
The report starts with an overview of adoption and acceptance, new driving trends and challenges, and use cases, all comprising insights

into account-to-account payments, Buy Now, Pay Later, e-wallets, debit and credit cards, and cryptocurrencies. These are the most popular

payment methods among the customers. Cash is the original, but these are cutting-edge.

The benefits of Open Banking and A2A payments for ecommerce are visible, but less well-known by the consumers. If almost a year ago

the BNPL topic was surrounded by facts and figures related to the growing market size, this year, the main theme has been switched. The

discussions are now towards the reinvention of credit cards, the endorsement of white-label solutions and their relationship with banks, and

responsible lending. As mobile wallets constantly add new features for scalability, they could soon become the same thing as super apps. The

successful future of debit and credit cards relies a lot on biometric technologies. As regards cryptocurrencies, a merchant that has crypto at

the checkout is a proactive one. For those who are still chewing on it, we are revealing a comprehensive set of tools for a smooth integration.

Emerging innovation and payments habits

A new breed of consumers has been born: the digital(-first). Gen Z and Millennials dictate what channels and payment means have the greatest

potential in the market. This section reveals unique insights into Q-commerce, live-commerce, and real-time payments – and their value

proposition for the entire payments ecosystem. The goal is to help out merchants, solution providers, and banks to decide what to focus on

and how to build new experiences before, during, and after the checkout. ➔

3 Payment Methods Report 2022 | F OREWORD

 Foreword
Checkout optimisation – best practices
The checkout must be one of the most optimised steps when it comes to the customer experience. This section was created to compile the

essential aspects that ecommerce businesses need to consider in order to reduce cart abandonment. You will learn what are the drivers of

APMs adoption, data-driven approaches to better understand and serve customers, and the role of payment orchestration in optimising the

checkout process.

What’s more, seasoned payments managers from INGKA Group, Mango, Rappi, Wargaming.net, and Wix share their expertise on how to best

implement payment methods on the UX and UI side.

Global Buy Now, Pay Later infographic and mapping

Encouraged by the huge success and the overwhelming market response, this year, we updated the BNPL mapping with new players, business

models, and categories such as direct providers, via credit cards, software and platform solutions, international gateways, consumer lending,

B2B commerce, aggregators.

Account-to-account payments infographic

Since the adoption of this payment method is on the rise across the world, we display the representatives of this type of payment and the

regions where they are available.

We invite you to explore our Payment Methods Report 2022 and learn all about the modern payment landscape. Every merchant, PSP, fintech,

and enterprise leader should benefit from this report, and they are guaranteed to gain the knowledge they need to succeed.

Enjoy your reading and feel free to spread the word!

4 Payment Methods Report 2022 | F OREWORD

 Table of Contents

3 Foreword

7 Payment Methods in Focus

8 Payment Methods: Latest Trends and Developments in 2022 | Anda Kania, The Paypers

11 Account-to-Account Payments and Rails

13 Open Banking Payment Methods – Driving Value for Ecommerce Merchants but Consumers Need to Benefit Too |
Volker Schloenvoigt, Edgar, Dunn & Company
15 The Benefits of Open Banking-Powered Payment Methods | Interview with Siamac Rezaiezadeh, GoCardless
17 The Main Differences Between Open Banking and A2A Payments | Interview with Tim Munto, Nuvei
19 A2A Is the Future: Why Businesses Should Diversify Payment Touchpoints to Stay Ahead of the Game | Arjun Shah,
Zimpler
21 Request-to-Pay: A Game-Changer for the European Payments Market? | Andréa Toucinho, Partelya Consulting

23 A2A Payment Methods Global Mapping

24 Buy Now, Pay Later

26 Buy Now, Pay Later – The Accelerated Adoption and Innovation | Frida Polyak, Euromonitor International
28 Buy Now, Pay Later: A New Generation of Credit Cards | Sheridan Trent, The Strawhecker Group (TSG)
30 BNPL Aggregation Is Set to Disrupt the Pay Later and Lending Market | Interview with Basant Singh, ACI Worldwide
32 How Consumers’ Changing Needs Lead AfterPay’s Transformation into Riverty | Teresa Schlichting, Arvato Financial
Solutions and Nikki Constantine, AfterPay
34 BNPL: Maximising the Rewards, Minimising the Risks | Amir Nooriala, Callsign
36 How Banks Are Responding to the BNPL Trends | Interview with Jens Audenaert, Diebold Nixdorf
38 Key Benefits Banks and Merchants Need to Know about POS Financing and BNPL | Interview with Yaacov Martin, Jifiti
40 What Responsible BNPL Means Nowadays and How New Regulations May Impact the Ecosystem | Interview with
Roberto Valerio, PAYLA
42 Disrupting the Status Quo in BNPL with Responsible Deferred Payments Solutions | Karlheinz ‘Charly’ Toni, Tinka

44 BNPL Global Mapping

45 Buy Now, Pay Later – Examples of Business Models

47 E-wallets and On-demand Apps

49 Is the Future of the Super App and the Super Wallet the Same Proposition? | Mark Beresford, Edgar, Dunn & Company
51 Why Mobile Payments Will Improve Consumer Conversion and Consumer Retention | François Cortés, Oaklen
Consulting
53 The Flourishing of Super Apps and On-demand Payment Apps in Southeast Asia | Kell Jay Lim, Grab

5 Payment Methods Report 2022 | TABLE OF CONTENTS

 Table of Contents

55 Debit and Credit Cards

57 New Card Payment Technologies and the Race to Keep Up with Mobile Payments | Nick Maynard, Juniper Research
59 Biometric Payment Cards: The Next Evolution in Secure Contactless Transactions | Andreas Strobel, Smart Payment
Association

61 Cryptocurrencies
63 Extend Your Payment Rails with Cryptocurrency Checkouts Now | Stefan Schneider, COINQVEST

65 Emerging Payments Innovation and Habits

66 Latest Trends in Ecommerce and BLIK’s Role in the Future of Payments | Interview with Dariusz Mazurkiewicz, BLIK –
Polish Payments Standard
68 The Present and Future of Ecommerce – Live Commerce | Li-Xiong Chu, Dr2 Consultants
70 The Role of Real-Time Payments in Strengthening Customer Experience | Interview with Gareth Lodge, Celent

72 Optimising the Checkout Process: How to Win at Conversion and Retention

73 The Unexpected Results of Changing APM Acceptance Rates | Julie Fergerson, Leo Parrill, Merchant Risk Council
75 Meeting Consumer Payment Expectations in the 21st Century | Manuel Huez, Checkout.com
77 Spoilt for Choice: Why Merchants Need to Act Now on Checkout Processes | Katharine Evans, CMSPI
79 Forget Payments Acceptance: Think Merchant Services | Diana Carrasco, Lloyds Banking Group
81 The Role of Payment Orchestration in Optimising Checkout | Jordan McKee, 451 Research (S&P Global Market Intelligence)
83 Payment Strategies for a Growing Gaming Industry | Interview with Elena Popova, Xsolla

85 Localisation
86 Why Local Payment Methods Are the Key to Cross-Border Success | James Booth, PPRO
88 How Digital Payments Are Shaking Up Southeast Asia’s Ecommerce Landscape | Jade Lim, 2C2P
90 India’s Digital Explosion and the Opportunities It Presents to Ambitious Online Businesses | Ramesh Narasimhan,
Worldline

92 The Merchants’ Perspective on Optimising the Payments Checkout

93 Payments and the Paradox of Choice | Ognjen Vlačina, Group Procurement, INGKA Group

95 Merchants’ Briefs
96 Mango | Carlos Madrona, Internal Control & Compliance, Payment Methods and Fraud Director
97 Rappi | Juan Pablo Ortega, Co-Founder and CEO
98 Vestiaire Collective | Pedro Bennasar, Head of Payments
99 Wargaming.net | Elena Emelyanova, Senior Payments and Fraud Manager
100 Wix | Omer Shatzky, Head of Fintech and Risk

101 Company Profiles

6 Payment Methods Report 2022 | TABLE OF CONTENTS 

Payment Methods in Focus

• Latest trends and developments in 2022

• Account-to-account payments and rails
• BNPL adoption and innovation
• E-wallets and super apps
• Biometric cards
• Cryptocurrencies
 The Paypers
Payment Methods: Latest Trends and Developments in 2022

Anda Kania is doctor in Political Sciences, currently exploring her research skills to discover the
latest trends in the payment and commerce industry. Anda has used her position of senior editor at
The Paypers to analyse the hottest topics, and to discuss them with thought leaders in order to get the
pulse of the payments environment.

Anda Kania Lead Editor for Payments and Commerce The Paypers

The emergence of more convenient payment methods and boosted Mobile payments and super apps
digital commerce is attributed to new disruptive technologies. Yet all Global proximity mobile payment users are expected to reach 1,345

the massive payments technology upgrades are based on a customer- billion in 2022, an increase of up to 5.3% year over year (YoY) based

centric approach. on Insider Intelligence forecast. Consumers are using less cash

and opting instead for digital payment methods such as mobile

The need for speed and convenience has driven the rise of e-wallets, wallets.

the need for affordable shopping has driven the rise of BNPL.

Overall, the high adoption of alternative payment methods has The e-wallet is no longer what it used to be: a card-based omnichannel

been happening for a couple of years now, but what we are seeing payment method. By updating their core services to meet consumer

currently is indeed more like a revolution rather than an evolution. demands, e-wallets have gained an upper position in the value

E-wallets turn into super wallets, and the ‘Pays’ are covering a chain. They provide loyalty programmes, ecommerce transactions,

broader spectrum of services, making the industry speculate that P2P payments, bill payments, crypto storage, and even financial

they plan to become financial institutions. BNPL companies are services to keep their relevance in the context of embedded finance.

under a regulatory radar, but the show does go on, and consumers In addition to payment services, they also focus increasingly on

still display a high interest in paying in instalments. Metaverse is an personal finance.

emerging trend, mainly fuelled by young generations, but when it

comes to crypto adoption, the state of affairs in the industry seems What bigtechs and ‘Pays’ have been up to
rather biased. There may be great interest among consumers in Providing digital-savvy customers with new capabilities continues

cryptocurrencies – however, there is no real aspect showing that to be a priority for bigtechs.

crypto is a popular payment method, but rather an asset.

Samsung wants to capitalise on the growing adoption of mobile

The landscape is highly fragmented, with consumers using different payments. As such, Samsung Pay will be replaced by Samsung

payment methods and instruments, being loyal to various payment Wallet for Galaxy users in the US, the UK, France, Germany, Italy, and

brands, and embracing new shopping habits. To align with the Spain. The app allows users to store credit cards, loyalty cards, transit

payment trends, industry players need to know what’s hot and tickets, COVID-19 vaccination cards, and several ID documents.

what’s rather still heating up among the latest developments on the Users can also monitor the value of their cryptocurrencies across

market. This analysis shows what to keep an eye on and what to select exchanges with Samsung Blockchain Wallet.

already consider in terms of payment methods and technologies.

8 Payment Methods Report 2022 | Payment Methods in Focus

 Google has launched two payment initiatives: a digital wallet and a A McKinsey article states that big players in this space are looking

virtual card. Similar to Samsung Wallet, Google Wallet lets Android to increase their visibility and engagement through apps, looking to

users store everything – from payment services to tickets, IDs, loyalty offer the 360° experience: shopping, loans, and banking. The stakes

cards, and vaccine records. In comparison to Apple, both Google and are high for traditional competitors, in this case.

Samsung are somewhat late to the party, as Apple has been offering

these features since 2012. As regards consumers’ behaviour, we notice two red flags. First,

people have started to buy essential items in instalments. As well,

After Mobeewave’s acquisition by Apple, we expected to see a Gen Z and Millennials are more likely to use BNPL services to cope

Tap to Pay solution emerging from this event. It finally happened – with inflation. As long as people buy fashion items or electronics,

with the significant increase of contactless payments in the US, BNPL is in a normal state. It should be a concern, however, when

Apple has seized the opportunity to launch Tap to Pay on iPhone. people start buying groceries with pay later methods or perceive

The solution accepts Apple Pay, contactless credit and debit cards, BNPL as an aid to managing expenses.

and e-wallets, and it works via NFC.

Bigtechs involvement in consumer finance

Solution providers have been developing device-agnostic tap-on- Apple has announced the launch of Apple Pay Later in the US, a

phone technology for a couple of years now, if we look at Cellfie service that allows customers to split the cost of a purchase over

or Viva Wallet for example. Though most of these services are four interest-free equal instalments only after a soft credit check.

prevalent in Europe rather than in the US, the solution will most likely Several experts already stated that Apple users might be reluctant

spread across the globe, and SMEs and solopreneurs (especially to this service, since any late payment might put their entire account

those in hospitality) are likely to be the driving forces behind its at risk. PayPal has also launched in the US a new BNPL offering

adoption. dubbed PayPal Pay Monthly, issued by WebBank. Merchants can

add Pay Monthly as a payment option automatically, at no additional

Facebook Pay has become Meta Pay, and according to Meta’s CEO cost. The pay later option can be delivered to customers early in

Mark Zuckerberg, this rebranding is the first step towards payments their shopping journey in a similar fashion to Pay in 4.

in Metaverse. With social media identity and payment options being

combined in one place, it will be interesting to see how this new Considering the long history of BNPL, the question is why most of

environment develops. the bigtechs have rolled out pay later services just now. We can’t

talk about innovation, so maybe they are just encouraged by their

Leaving the US aside, in India, Tata Group has launched the Tata significant market share. Moreover, they’re eyeing the US market

Neu super app, which meets all the prerequisites of a one-stop-shop first, which makes sense, since it’s not as saturated as Europe and

payment service. Tata Neu is rather a latecomer, considering the Australia, and emerging markets require more effort to penetrate.

rapid development of payment apps in Asia, but maybe they have

been waiting for smartphone penetration to rise to more than 50%. A2A payments and Open Banking payments
First of all, the industry is making a lot of confusion between A2A

What’s going on with BNPL payments and Open Banking payments, by lumping them together.

According to ConsumerAffairs, of 1,000 surveyed Americans, 60% These terms are not synonyms; A2A payment methods are the

had a positive experience with BNPL. On average, those who used typical bank-to-bank payments without the involvement of a card.

BNPL the most frequently had better financial health. The most Open Banking payments are indeed the same thing, but they also

problematic situations were reported by people who used BNPL require consumer consent to share their data with TPPs. Open

sporadically – just a few times a year. Worldwide, BNPL accounts Banking is very hard to integrate, and it shouldn’t be seen as an ‘off-

for 3% of global ecommerce payment methods, and it is expected the-shelf’ payment method. The strongest and most successful A2A

to grow to 5% by 2025, as per The Global Payments Report by payments are those developed by banks in multi-bank schemes

FIS. Having the most accurate perspective on the coverage of BNPL such as iDEAL in the Netherlands, BLIK in Poland, Pix in Brazil, and

is challenging, since sometimes the data doesn’t reveal the type of UPI in India, to name a few. ➔

model involved (credit card, direct provider, etc.) or the payment

instrument, which can be a card or an e-wallet.

9 Payment Methods Report 2022 | Payment Methods in Focus

 The first A2A payments were actually P2P transactions, and currently, Closing remarks
most of the use cases regard P2P money transfers rather than B2C. It’s fascinating to watch, on the one side, the discussions around

Open Banking companies and A2A payment providers will likely BNPL risk for overspenders, while on the other side, the Metaverse

acquire P2P payment apps in the coming years to enforce their nurtures a culture of luxury as we observe the famous brands

ecommerce use cases. Perhaps banks will be more interested in entering this space. The discussions take place in the same payment

these apps too, if we look at the case of Wells Fargo and BofA area, even though there are different domains and circumstances.

considering enabling Zelle for online retail payments.

Online and offline shopping experiences are becoming increasingly

The cool side of the business: crypto and the similar in terms of convenience. It is the same fast and secure

Metaverse payment journey that is expected (and delivered) in both places,

Many reports and stats are indicating that cryptocurrencies are so whether we are talking about in-store contactless payments

on the rise, but there are very few insights from consumers. Most or alternative payment methods like BNPL, A2A, or e-wallets,

of the surveys are focused on business opinions, either coming seamlessness should be the first consideration.

from enterprises or crypto-native companies. A Deloitte survey

shows that most merchants (87%) agree that acceptance of digital We will be talking more about super apps and super wallets than

currency payments puts them at a competitive advantage. This e-wallets, in the near future. E-wallets are likely to take advantage

would regard a diversified checkout, which has become a must- of the growing adoption of mobile payments to offer new mobile

have for consumer conversion. use cases, but the ultimate destination for e-wallets is the super app

power. To align with the trends, solution providers will double down

The question is how many consumers are actually making purchases on optimising the mobile payments experience. The next chapter in

with crypto. There is a high interest, but what about usage? According payments will be about mobile payments and Metaverse, but not in

to a Mastercard study, 36% of users are very likely to try paying with the next 12 months, at least. Right now, we are still exploring two

crypto in the next year. Consumers would prefer more stability in the subchapters: Open Banking versus cards – and BNPL.

industry, with 59% saying that knowing crypto is backed by a reputable

organisation would give them more confidence. Furthermore, 63% of

respondents agree that stablecoins and cryptocurrencies should be

regulated by the government. All these statistics show interest, but

they don’t reflect the usage in ecommerce.

The Metaverse
Mastercard has shown a greater interest in NFTs, recently. Consumers

can now use their cards to buy digital assets on marketplaces without

the need for a crypto wallet. Encouraged by a great response – 45%

of users had purchased an NFT or would consider doing so –

Mastercard is tapping the Web3 in a bid to be an early participant in

this emerging ecosystem.

When it comes to ecommerce and its integration with the Metaverse,

any developments are undoubtedly driven by young generations,

and at least at the moment, high-end commerce dominates the

space. And any discussion around Metaverse and payments is not

about how people pay, but how they experience online shopping.

10 Payment Methods Report 2022 | Payment Methods in Focus

 Account-to-Account Payments and Rails

Size of the market

If a few years ago there was global speculation about the magnitude and impact of Open Banking and PSD2 on the speed and accessibility

of financial transactions, at present, Open Banking has reached an age where we can see and live the practical application of what it used

to be an idea. Real-time payments are the ground 0 of these practicalities, while A2A payments are the level-up. At the same time, we

are living in a world where innovation paired with regulation has cleared the path for merchants and banks to decrease the influence of

card schemes on the payments ecosystem. Stressing ‘decrease’ as conveying a radically different nuance as ‘overwriting’. But progress

is being made each day.

The reality in the field is that real-time payments have become the end-goal of technology providers, banks, governments, and users alike.

According to Worldpay’s Global Payments Report 2022, 20 European countries are part of the centralised instant SEPA credit transfer

(SCT Inst) scheme, while of the non-SCT Inst countries, the UK makes the most payments (close to 8 million per day).

The latest Status Update on SCT Inst Scheme from the European Payments Council states that, as of June 2022, there are 2,360 registered

SCT Inst scheme participants (PSPs employing the scheme) representing a share of 61% of all SCT adherents (i.e. 3,872) in all SEPA countries

(and 68% for the EU and 71% for the euro area only). Therefore, even though A2A payments as a practical concept is still far away from

sweeping the world in terms of monopoly, instant payments and direct bank transfers are invariably at the moment the status quo of A2A.

In the UK, the Payments Strategy Forum, observed by the Bank of England, the Prudential Regulatory Authority, the Financial Conduct

Authority, and the Payments System Regulator, have been making visible progress in creating a new payments architecture – the NPA

– to replace the architecture used for today’s UK retail interbank payment systems (Bacs and Faster Payments). As the PSR explains,

it is envisaged that clearing and settlement of payments will take place over a single purpose-built central infrastructure rather than the

separate infrastructure that is currently used.

On a global level, 60 markets operate a live, real-time payments infrastructure, with Canada, Peru, New Zealand, and Indonesia

launching in 2022. Southeast Asian countries are at the forefront in terms of adoption of instant payment platforms, India registers the

largest volume of instant payment transactions in the world, reaching 39.8 billion in 2021, while in May 2022, Brazil’s instant payment

platform Pix has been used by more than 115 million users since its launch in November 2020, according to a recent ReportLinker study.

In June 2022, news coming from the Nordics region saw P27 Nordic Payments announcing its plans to become the new national

Clearinghouse in Denmark for traditional and smart payments for businesses and private consumers. The Clearinghouse would also

enable bill settlement and real-time payments to other Nordic countries, including Sweden and Finland, with Norway expected to join later.

In the Netherlands, according to research conducted by GfK, compared to 2020, the number of iDEAL payments increased by 28% in

2021. Online identification and logins with iDIN rose by 33% and Incassomachtigen (e-mandates) by 13%.

Latest developments
In late 2021, NPP Australia merged with eftpos and BPAY Group to form Australian Payments Plus. This ACCC-approved fusion will

enable better coordination of investment across the three payment schemes, creating a more innovative and sustainable Australian

payments landscape. ➔

11 Payment Methods Report 2022 | Payment Methods in Focus

 Account-to-Account Payments and Rails

A major topic of discussion in Europe in the last year when it comes to both A2A and instant payments has definitely been the EPI (or

European Payments Initiative). It is a coalition of 31 banks and 2 payment service providers across 7 European countries (Belgium, Finland,

France, Germany, the Netherlands, Poland, and Spain) currently covering 65% of all European payment transactions. The aim of EPI, as per

its own explanation, is to create a unique payment solution that will become the new normal for European consumers and merchants for all

payments in a shop, online, and between friends and family.

The proposition gained traction at its inception by attempting to create a European card scheme, which did not pan out and resulted in

the initiative redefining its scope and goals closely surrounding A2A payments. With a framework designed to aggregate everything

from recurrent payments, deferred payments, and split payments, to donations, the initiative has added a couple of functionalities to its

scope in 2022. Martina Weimert, CEO of the EPI Interim Company, has detailed for The Paypers that in the third quarter of 2023, EPI

plans to go live with P2P and P2Pro, with goals to dive into ecommerce a couple of months later.

In the US, the Federal Reserve began onboarding pilot participants onto the FedNow Service, signalling the initial testing phase in May

2022. According to the announcement, a few organisations have already connected and delivered test messages over a pilot version of

the FedNow Service, marking a milestone for the service, which remains on course to launch in 2023.

When it comes to technology providers in the A2A payments ecosystem, in July 2022, Open Banking platform Tink rolled out an upgrade

to its payment stack with the launch of settlement accounts, a new feature that aggregates PIS settlement.

Another notable development came from A2A payments provider GoCardless, launching Instant Bank Pay and an anti-fraud feature,

Verified Mandates, in Germany.

One trend that was pervasive in the last year refers to a number of banks and technology providers building and making available real-

time Euro payments services, based on the real-time pan-European SEPA Instant scheme. Modulr, TrustPay, banking group Citi, and

British PSP Answer Pay are just a few players who have introduced SEPA facilities to their portfolio in 2022.

Investments
One of the most relevant names when it comes to investments in developing A2A payments services is payments provider GoCardless.

The company announced a series F funding of USD 95 million in December 2021, and it continued with series G in February 2022

amounting to a striking USD 312 million.

In May 2022, up-and-coming fintech kevin. raised USD 65 million to bypass card payments with account-to-account payments. Its plan

is to be available as a payment option across some 35% of European electronic point-of-sale terminals by the end of 2022 and then 85%

the year after that.

Examples like these two rounds of investments are not alone in the ecosystem. Token raised USD 40 million to expand A2A payments

and Open Banking connectivity across Europe – and the investments in this field will keep pouring in. It remains to be seen how the

practicality of it will impact the slice of pie that A2A will take from the global market share.

12 Payment Methods Report 2022 | Payment Methods in Focus

 Edgar, Dunn & Company
Open Banking Payment Methods – Driving Value for Ecommerce Merchants but
Consumers Need to Benefit Too

Volker is a Director at Edgar, Dunn & Company (EDC), based in the London office, and he heads
the European Acquiring Practice. Volker has provided consulting advice in payments for over
20 years and has developed significant experience in digital financial services from working with
banks, merchants, card payment schemes, technology vendors, and regulatory bodies in different
geographies. He has a track record in strategy development and deep expertise in profitability
improvement, strategic planning, financial modelling, and M&A advise.

Volker Schloenvoigt Director Edgar, Dunn & Company

A consumer’s view on Open Banking For successful sales, merchants need to offer the payment methods

Let us get one thing immediately out of the way: whilst the term that customers are likely to prefer or look for. This is a constant

‘Open Banking’ might be self-explanatory for those working in challenge in the wider world of Alternative Payment Methods (APMs),

the financial services sector, for the typical consumer it does not where merchants will need to assess which APMs are meaningful

mean anything, or it is understood to be something completely and which ones their customers actually want to use. This challenge

different. As the host of a webinar I recently attended pointed out, is equally relevant for Open Banking payments. Are the needs and

the most common perception of ‘Open Banking’ among consumers benefits related to Open Banking payments truly aligned between

is that bank branches are open 24/7 – thus, allowing payments to be merchants and their consumers?

initiated on a Sunday over the counter. It is an interesting obser­vation

that the consumer, i.e., the one person who decides how the payment The merchants’ perspective
will be undertaken, does not know what ‘Open Banking’ means. It has been well documented that there are four key benefits for

merchants to accepting Open Banking payments:

This raises another question: is it actually important that the

consumer knows what it is? Does the label on the tin really matter? Lower costs – especially when you consider card payments, there is a

Would it not be much more important to know what the content range of different fees that merchants would need to pay. Starting with

of the tin is? The consumer does not need to know that Open the Merchant Service Charge as the biggest item, it can extend

Banking is the process of enabling third-party payment or financial towards gateway fees, 3DS or PCI compliance fees, or (network)

service providers to access their banking information for account tokenization fees. Fees for Open Banking payments are lower than

information purposes or payment initiation. What the consumer the aggregated fee level for card payments.

should know is that these are account-to-account payments,

most commonly from their own bank account, and that the service Greater security/lower fraud – like payment cards, Open Banking

provides real value, whether that is incremental convenience, payments need to comply with Strong Customer Authentication

streamlined user experience, or economic benefits. (SCA). In most cases, this is already being facilitated via the redirec­

tion to the online banking environment of the customer. ➔

Why is consumer perception important? Without delving into detailed

descriptions of economic theories, it is critical to understand that

the merchant payments market is two-sided, where payers (i.e.,

consumers) and payees (i.e., merchants) have different needs or

reasons for choosing one payment method over another.

13 Payment Methods Report 2022 | Payment Methods in Focus

 Faster settlements – Open Banking payments are being confirmed Whilst it is early days for Open Banking payments, there is some

almost instantly, and thereby, they provide an immediate cash- evidence that adoption is growing. There are already well-esta­

flow benefit to the merchant. Also, because receipt of payment is blished use cases in the iGaming or wealth management sectors

confirmed very quickly, goods can be shipped right away, which where Open Banking payments are used to fund the customer

improves the consumer’s experience considerably. account. The next step will be to establish a meaningful roll-out

for Open Banking solutions as a viable retail payment method.

No chargebacks on Open Banking payments – because Open As illustrative examples, Truelayer provides Open Banking payment

Banking providers instruct instant bank transfers on behalf of the functionality to Cazoo, an online car retailer, Trustly serves Norwegian

customer, there is no built-in chargeback mechanism. Airlines, and most recently lastminute.com and token.io partnered

with BNP Paribas to launch Instanea, targeted at BNP’s merchants.

So the benefits for one stakeholder, the merchant, in this two-

sided payment acceptance market are clear. But what about the There is a strong argument that merchants will need to take the lead

consumer? to convince consumers that there are alternative options to card

payments and other established payment methods. If there is a cost

Benefits – the way forward advantage to merchants, is there an opportunity to pass on some

Features such as added security and transparency around payment of those cost savings to consumers? Could they be convinced to

flows are equally beneficial to consumers as they are for merchants. change their well-established preferences by receiving additional

But one big challenge remains. We are all creatures of habit, and loyalty points if they were to use Open Banking payments, for

we have all established our preferences in how we want to pay. example?

For consumers to change payment habits, it will require something

better, something more convenient, or something that has a real As iDEAL in the Netherlands has demonstrated, there is a space

additional benefit to it. For example, having no chargeback mecha­ for account-to-account retail payments – but to push the adoption

nism might be beneficial to merchants – but for consumers who of Open Banking payments, merchants need to share some of

are accustomed to a safety net from familiar card payments, this the associated benefits in order to overcome any scepticism that

means additional risk, and it translates into hesitation for mass consumers still show today.

adoption. Fortunately, there is nothing to stop Open Banking pay­

ment providers from developing voluntary protections to cover

certain types of purchases, if that is what is required by merchants

and sought after by consumers. For some transaction types such

protection will be needed (e.g. larger furniture items), whereas it

might not be overly relevant for weekly food purchases.

Edgar, Dunn & Company (EDC) is an independent global payments consultancy.

The company is widely regarded as a trusted adviser, providing a full range of strategy
consulting services, expertise, and market insights. EDC expertise includes M&A due
diligence, legal and regulatory support across the payment ecosystem, fintech, mobile
payments, digitalisation of retail and corporate payments, and financial services.
edgardunn.com

14 Payment Methods Report 2022 | Payment Methods in Focus

 GoCardless
Siamac Rezaiezadeh, Director of Product Marketing at GoCardless, reveals the benefits that Open Banking-powered payment

methods, including VRPs, bring to both businesses and consumers.

Siamac is Director of Product Marketing at GoCardless, leading go-to-market activities, value

proposition development, market research and frontline sales enablement. Prior to GoCardless,
Siamac launched and ran a travel marketplace, wrote a book on sales strategy and spent seven years
at a SaaS startup through successful acquisition and subsequent growth as part of an NYSE-listed
enterprise.

Siamac Rezaiezadeh Director of Product Marketing GoCardless

What are the most popular types of A2A payments The next step is to enable the real-time collection of recurring

currently available on the market? payments. Two examples that spring to mind are the PayTo initiative

Direct debit continues to dominate consumer preferences in many in Australia and Variable Recurring Payments (VRPs) in the UK.

countries across Europe, with GoCardless research finding that it’s Both are a work in progress but offer exciting ways to combine the

the payment method of choice for a range of recurring payment use flexibility of direct debit with the speed of card authorisation.

cases. By way of example, in the UK, it’s the preferred way of paying

household bills and subscription payments. There is also a growing In the context of Open Banking, what benefits do
appetite for real-time payment capabilities, with The FinTech Times Variable Recurring Payments bring to both payments
stating that global real-time payment transactions hit an estimated players and consumers?
118 billion in 2021. The simplest way to combine the trust and The introduction of what is essentially instant direct debit will be

reliability of direct debit with real-time, faster payments is to offer a big boost to PSPs that play in the A2A space. With immediate

Open Banking-powered payment methods. payment authorisation paired alongside the lower-cost, lower-churn

of A2A payments, PSPs can offer a true alternative to cards.

The simplest way to

Thinking of consumers, the arrival of VRPs has come at a time
combine the trust and reliability when it feels most needed. GoCardless research found that 57% of

of direct debit with real-time, consumers are struggling to save due to the increased cost of living.

A further half said they would use new technology that automatically
faster payments is to offer Open
moves their money from one account to another with a higher interest
Banking-powered payment rate. VRP ‘sweeping’ will give consumers greater control over their

methods. money management, allowing them to make payments faster and

to move money easily between their accounts, helping people clear

debts and build savings. ➔

Open Banking in the UK has been progressively building momentum.

In part, this is down to HMRC rolling out Open Banking-enabled

‘Pay by bank account’ to a dozen different tax regimes, leading

them to receive just under GBP 2.5 billion via Open Banking in less

than 12 months. As similar frameworks go live across Europe, we

will start to see this spread ongoing.

15 Payment Methods Report 2022 | Payment Methods in Focus

 Are there any possible future use cases where VRPs compared to those who pay with direct debit. A starting place is

can be most effective at the B2C ecommerce level? looking at payment methods with lower failure rates, as 11-15% of

Absolutely. Because of the speed of payment authorisation, people failed payments result in churn.

can pay directly from their bank in several ways, with one of the

most interesting being the possibility to replace ‘1-click’ card Bank account payments fail less frequently, with energy and telecoms

payments with ‘1-click’ bank payments, e.g., ‘card on file’ replaced businesses, as examples, having benefited from it for years. But newer

by ‘bank account on file’. recurring revenue businesses often require the speed of authorisation

that card payments bring in order to meet consumer expectations.

You can go even further by implementing QR codes to direct people to Emerging A2A payment rails can help here, simply by making the bank

online payment flows where they can pay via ‘account on file’. QR codes’ account a viable payment option for these types of businesses too.

ability to link the offline and online worlds here is significant, bringing

Open Banking-powered payments to shops, hospitality and more. What is GoCardless’ unique way to improve the
recurrent payment experience for merchants and
consumers?
There’s no such thing as a ‘one-size-fits-all’ payment solution,

but our thesis is that payments that move directly from one bank

account to another offer businesses substantially more benefits.

Our value-add comes from incorporating multiple bank payment

methods into one network, enabling merchants to optimise their

payment strategy in unprecedented ways. For example, if speed is

of the essence, Open Banking payments are the way to go. If cost

is a focus, direct debit may offer better value. And, as Open Banking

innovation rolls out in phases, offering both tried-and-tested bank

payment methods like direct debit alongside the newest technology

will ensure merchants can cater for all payers.

For merchants dealing with recurring payments, Finally, GoCardless layers data and analytics on top of bank

what kind of challenges are they facing? How can payment methods as part of ‘payment intelligence’ features to

the emerging A2A payments rails help them out in help merchants optimise payments. Two years ago, we launched

this matter? Success+, which applies machine learning to predict the best days

The subscription economy is booming, and businesses now have for payment retries. Since launch, we’ve recovered over GBP 49

to focus on retaining the customers they have gained over the past million in failed payments. Later this year, we’ll launch an anti-fraud

two years. The payment methods offered to consumers have a feature which uses the same technology to help merchants protect

direct impact on churn; for example, the rate of customer churn their revenue.

for subscribers who pay with a credit card is over three times more

Click here for the company profile

GoCardless is the global leader in direct bank payment solutions, making it easy to collect
recurring and one-off payments directly from customers’ bank accounts through direct
debit and open banking. Each year GoCardless processes more than USD 30 billion of
payments across more than 30 countries.
gocardless.com

16 Payment Methods Report 2022 | Payment Methods in Focus

 Nuvei
Tim Munto, Senior Vice President ACH & Online Banking at Nuvei, discusses the main differences between Open Banking and

A2A Payments, as well as what makes Open Banking a more appealing solution for online payments.

As SVP, ACH & Online Banking, Tim leads Nuvei’s efforts to deploy pay-in and pay-out capabilities
which leverage the company’s Open Banking platform. He is a seasoned payments professional with
30+ years’ experience leading large sales and operations organizations, in various executive positions.
Tim spent a large part of his career working for Bank of America and TSYS in the United States, during
which he had responsibilities managing international operations in Europe and Asia.

Tim Munto Senior Vice President ACH & Online Banking Nuvei

Why is Open Banking the right solution for online numbers) can also travel with an Open Banking payment and these

shopping? fields are often automated, which can eliminate human error and,

Open Banking payment solutions are built for the digital, mobile- eventually, speed up reconciliation.

enabled world, making them an excellent solution for modern

shopping. There are significant benefits for both merchants and their 4. Seamless
consumers when using Open Banking enabled payment solutions. Seamless payments are possible through Open Banking because no

data entry is required from the payer. The payment can be actioned in

1. Secure seconds, depending on the bank’s authentication process. Biometrics

Open Banking solutions have contributed to a shift from a closed also come in handy here, meaning the payment can effectively be

data model to an open one, where sharing data between various authenticated, reviewed, and authorised in just a few taps.

players in the financial ecosystem is possible through customer By bypassing card network limitations, Open Banking payments

authorisation. also have higher transaction limits (once KYC checks have been

Open Banking payments are more secure because authorisations set up) and benefit from higher conversion. Because they’re digitally

are done with bank-level security technology, through biometric optimised, on average, Open Banking payments convert up to 40%

authentication, without credential sharing. There is no need for card better than cards.

or account details to be manually entered when making payments

and all parties are securely authenticated, significantly reducing the How did Open Banking contribute to the shift in
risk of fraud and even ‘fat finger errors’. customers’ expectations around the payments
industry? What are customers mainly focused on
2. Cost effective now when it comes to online payments?
Because there are no card networks involved in processing Aggregating an individual’s financial data under one application

transactions, interchange fees are eliminated, which reduces gives the consumer full visibility and control of their financial

the cost of acceptance for the merchant (or payee). Automated data. This has made it easier for the consumer to make informed,

reconciliation is also possible, meaning businesses can further save beneficial decisions regarding financial products and services.

money by freeing up resources. With more control over data comes a heightened awareness and

understanding of it, meaning that the security and privacy of said

3. Fast data are now at the forefront of customers’ minds. Today, con­

With Open Banking payments, funds settle instantly or in the su­m ers expect their payments to be frictionless, fast, secure,

same day, compared to 1-3 working days when transactions are and mobile-enabled – and Open Banking has contributed to this

processed by card. Non-sensitive data (such as customer reference perception shift. ➔

17 Payment Methods Report 2022 | Payment Methods in Focus

 Both Account Information Services – accessing online information
Open Banking payment from payment accounts – and Payment Initiation Services – initiating

solutions are built for the digital, transfers from payment accounts – must be provided to regulated

mobile-enabled world, making third-party providers at the same level of service offered to cus–

to­m ers directly. This positively impacts the cost and speed of
them an excellent solution for execution of Open Banking payments, further differentiating them
modern shopping. from traditional A2A.

Can you name a few countries where Open Banking

Given that the topic continues to create confusion has gained momentum in terms of adoption and
within the industry, can you tell us what is the main acceptance?
difference between account-to-account (A2A) and Prominent regions where Open Banking has gained momentum

Open Banking payments? include Western European countries and the UK, aided by regulatory

A2A payments have been around for decades; think push payments changes, namely PSD2 and GDPR coming into force in the past few

where users can transfer money from their own accounts by using years. The Asia Pacific payment landscape is largely influenced by

the account details of a recipient (be that another individual or a mobile, so we have seen adoption start to take shape there as well.

business). Direct debits or subscription payments are also a type of The US has been slower to adopt Open Banking enabled payments

account-to-account payment, sometimes also referred to as a pull but the number of use cases is at an all-time high.

payment because the merchant or service provider typically pulls

or withdraws funds from a consumer’s account. What is Nuvei’s role in the ever-changing Open
Ban­king system and how can its core solutions
A2A payments traditionally run on legacy bank rails, built before the help merchants and customers alike?
digital age. And, while they were cheaper, they involved significant Making sure that the integration of modern payment methods into

manual work, the UX was often lacking, and they were difficult to a business’ payment strategy is seamless, fast, and secure, much

scale across borders. like the transactions themselves, is how we are bringing payments

into the future. We believe payments should accelerate a merchant’s

A2A payments powered by Open Banking are no longer restricted business and drive growth.

to the banks’ own technology but can be seamlessly embedded

in the apps that consumers already use, with a greater focus on We enable merchants to offer Open Banking payment solutions to

conversion and user experience. Moreover, they can be used by their customers easily via one integration into the Nuvei platform.

anyone with a bank account and that they’re lower in cost. We offer connectivity to multiple Open Banking providers to ensure

the best possible banking and country coverage.

Click here for the company profile

Nuvei (Nasdaq: NVEI) (TSX: NVEI) is tomorrow’s payment platform. Designed to accelerate
customers’ business, Nuvei’s modular, flexible and scalable technology allows leading
companies to accept next-gen payments, offer all payout options and benefit from card
issuing, banking, risk and fraud management services. Connecting businesses to their
customers in more than 200 markets, with local acquiring in 45+ markets, 150 currencies
and more than 570 alternative payment methods, Nuvei provides the technology and
insights for customers and partners to succeed locally and globally with one integration.
nuvei.com

18 Payment Methods Report 2022 | Payment Methods in Focus

 Zimpler
A2A Is the Future: Why Businesses Should Diversify Payment Touchpoints to Stay
Ahead of the Game

Arjun is the Chief Marketing Officer at Zimpler, leading its brand strategy and ensuring a B2B/B2C
implementation across platforms, fuelling the company’s future growth and expansion. Arjun is an
innovative and strategic leader with 15+ years in entertainment development. With a great passion for
technological innovation, he strives to make a positive impact in the world of finance.

Arjun Shah Chief Marketing Officer Zimpler

Down memory lane

When thinking back on simpler times we can reflect on the few

available payment options, as we traded livestock and land with

gold and copper coins. In today’s digital age, consumers expect

businesses to meet all their payment needs – in the shortest time

possible, and with the least amount of data input. By offering a

range of payment options, we will position ourselves as innovators

in the fintech landscape, while catering to our customers’ needs.

So, what do we gain from this?

Diversifying and staying competitive, while expanding our fleet of The goal of a B2B2B2C approach is closely associated with building

payment options, is crucial for customer acquisition. To continue loyalty with the end user. We trust the next generation of fintech

offering customers, partners and end users the best possible service users will offer their long-term loyalty to brands they believe in

we need to offer products including as many market demographics and relate to. In the payment industry, we have a deeply ingrained

as possible. By diversifying our payment options – for example with belief that brand trust alone is what makes our products successful.

Paylinks – we are likely to see an increase in conversion rates, thus And, while trust will always play a critical role, newer generations

raising our brand profile and increasing sales. A timeless win-win. are maturing, and demographic data no longer reflect their true

affiliations. So, it’s time to rethink and start planning for a new

How to leverage B2B2B2C as an A2A payments generation of users – while still being inclusive of the previous ones.

provider
It is a common misconception that companies with a B2B product The reality is that we live in a time where utility and product are no

don’t need to have a dialogue with end users. Zimpler is an account- longer enough. More than ever, consumers have access to an

to-account payment provider that aims to reshape that perception. un­prece­dented amount of information about the brands they buy

We believe B2B2B2C is a potential gateway that can bring in more from and interact with – who they are and what they stand for.

revenue for companies working together in an integrated ecosystem, There­fore, companies must go the extra mile in communicating their

with each partner offering the services they know best. It allows mission and purpose to the consumer, to create products that drive

businesses to accelerate customer acquisition and deposits, grow affinity, awareness, and relatability. ➔

fee revenue, and through partnership agreements reduce costs

related to customer acquisition and unit processing.

19 Payment Methods Report 2022 | Payment Methods in Focus

 Adapting a B2B2B2C approach as payment providers allows for a step further, and applying this on a global scale, we can – together as

stronger position with our end users, through which we can provide an industry - greatly improve the well-being of companies. And those

a holistic value proposition for merchants. Turning that coin, this who might find the process too intimidating should know that it is

also means we cannot rely on merchants to build brands for the as streamlined as possible, so that it can even be done through

end user. We have to own that narrative ourselves. smartphones.

Paylinks: a ‘Request-to-Pay’ option to save the day We live in a digital age and we must think outside the box and dare

Overdue invoices have bigger consequences than meets the eye. to colour outside the lines. Only through this shift of implementing

SMEs often experience cash flow issues and limits in operational innovative technology and cutting associated costs, can we help

growth due to late payments by customers. This, by effect, limits improve cash flow for SMEs and stay ahead of the curve.

that same business in pursuing innovative solutions. Branching out

to employees, they could be left standing without instant salary

payments. This space is where we need to step-up as leaders in

financial tech.

So, how do we achieve that in the most effective way? Data and

figures from France show that the average time for an invoice to be

paid often reaches 72 days. This is a major gap that needs to be

closed, and we can do that by simply adding a ‘Request-to-Pay’ or

paylink option to invoices. Trials of this implementation from Zimpler

shows that adding a ‘Request-to-Pay’ or paylink option saw a 30%

Click here for the company profile
increase in invoices being paid within the first week. Taking things a

Zimpler is a Swedish next-generation fintech company, offering simpler and more secure
transactions - without the need for cards. Specialising in account-to-account payments,
we are trusted by consumers and merchants across Europe to pay and get paid. With a
newly launched rebranding, we are rapidly expanding in new key markets, with a mission to
‘zimplify’ payment transactions everywhere.
zimpler.com

20 Payment Methods Report 2022 | Payment Methods in Focus

 Partelya Consulting
Request-to-Pay: A Game-Changer for the European Payments Market?

Expert in payments and innovative finance, Andréa Toucinho is Director of Studies, Prospective and
Training of Partelya Consulting and Country Ambassador for France of European Women Payments
Network (EWPN). France Representative of two national fintech associations – Aefi Spain and Afip
Portugal – she published several editorials about payments.

Andréa Toucinho Director of Studies, Prospective and Training Partelya Consulting

The new messaging solution Request-to-Pay is one of the key solution to offer a digital payment linked for instance with a SEPA

topics that are discussed today by some European professionals Credit Transfer Inst (SCT Inst). The combination between Request-

in payments. This innovation, linked with e-invoicing and B2B to-Pay and an instant payment is seen as a key marriage to foster

digitalisation, is not yet a reality in all European countries, but electronic transactions in countries where traditional payments are

many experts have already identified some key applications often privileged. Above all, instant payments will become the ‘new

linked with the evolution of the market. normal’ in Europe, according to the purpose of the European

Commission. Thus, it is important to keep in mind that the accelera­

The SEPA RTP scheme, to be built by the European Payments Council tion of the development of instant payment is one of the key goals

(EPC), will certainly bring a new step in the European payments of the European Commission for 2022.

market, first of all, in the B2B context, where there is a strong potential

in terms of the development of electronic payments. Thus, for example, In addition to this alternative to SDD payments, the other use case

some French corporate treasurers operating in the energy field, to be mentioned is the modernisation of payments towards public

already see the Request-to-Pay as a key asset to reduce the pay­ administration. Many European countries will be soon confronted

ment delays. As well, in Germany, corporates and financial entities with some regulations about digitalisation of payments tickets and/

aim at digitalising invoicing and payments in the B2B context. or invoices. For instance, in France, a legislation about digitalisation

of invoices is planned for 2023. As a result, digital transactions will

The major use cases explored in B2C and B2B contexts are: the be a new deal in relations between end-users and companies and

possibility of creating an alternative to SEPA Direct Direct (SDD), the Government has a strong role to play in this context. Request-

the modernisation of payments for public administration, and to-Pay, combined with an instant payment or even a simple SEPA

the creation of a digital payment experience that consumers can Credit Transfer, can be an interesting solution to transform traditional

appreciate for recurring payments or Buy Now, Pay Later (BNPL). payments to public administration into modern transactions. It is the

Last but not least: the Request-to-Pay as a step towards totally case not only for the payment of taxes, but also for the payment

digital payment, in combination with a credit transfer, for young of penalties or other services linked with health or administration.

generations enjoying digital, instant and mobility contexts. In Italy, for instance, e-invoicing and more generally digitalisation

of financial exchanges are a strong issue to foster security and

A catalyst for instant payment commodity for the benefit of the national economy. ➔

The first use case linked with the creation of an alternative to SDD

is mainly developed in countries where end-users don’t appreciate

SDD payment because they want to be proactive in their trans­

actions. In Portugal, where approximately 40% of consumers pay

for electricity with SDD, the Request-to-Pay may be an interesting

21 Payment Methods Report 2022 | Payment Methods in Focus

 Another use case to be mentioned is the creation of an end-to-

end digital payment experience to be appreciated by consumers

for recurrent payments or BNPL. Thus, the combination between

Request-to-Pay and an electronic payment will bring the opportunity

to simplify these transactions. It is also important to mention that,

according to some professionals, Request-to-Pay may be, in relation

to an electronic payment, an interesting solution for young genera­

tions interested in new means of payment that are based on digital

tools and mobility.

One of the questions may be ‘will Request-to-Pay replace some

means of payment, like checks, for instance?’

Digital alternative
Even if Request-to-Pay has all the qualities to foster the decline of

checks in several European countries, in the B2B context, it’s clearly

difficult to replace a tool with another in our ecosystem. The history

of payments and the specificities of some European countries show

us that it is the combination of various tools that bring opportunities

to the market. The case of checks is a strong example: even if the

European market has launched some interesting initiatives like SCT

Inst for instant payment, checks are used in both B2B and B2C

contexts in some countries like France.

Thus, the opportunity for Request-to-Pay is based on the capacity

to give a digital alternative and to develop the quality of payments

in our ecosystem. Some European countries already identified this

innovation as a strong opportunity like Switzerland, where payments

actor SIX Group already launched its Request-to-Pay solution eBill,

or France, where the payments community already knows Sepamail

Rubis that works as a national Request-to-Pay solution, or even

Portugal, where payments actor SIBS launched a wallet called

MBWay that allows a form of Request-to-Pay in a national context.

That’s why many European actors wait for the normalisation of

SEPA RTP scheme and the evolution of EPC rulebook as a major

step to concretise their projects and ambitions in this field.

Partelya Consulting is a French consulting company specialising in payments. Created in

2008, it works with all actors of the market, from banks to schemes and retailers, on
technological, strategic and regulatory issues. The company is a member of the French
Association du Paiement and contributes to several projects linked with payments and
innovation.
partelya.com

22 Payment Methods Report 2022 | Payment Methods in Focus

 A2A Payment Methods Global Mapping

Europe
Asia

(mainly Italy)
China Hong Kong

UK Norway
Cambodgia
Netherlands Japan
North America
Finland India
Austria
Canada Sweden
Indonesia Malaysia
Middle East
Poland
US Switzerland
UAE Philippines
Germany Singapore
Slovenia

Romania
Kuwait Sri Lanka Thailand
Spain
Greece

Portugal

Africa

Egypt
Latin America Australia

(Waya) Nigeria

Mexico South Africa

Brazil

23 Payment Methods Report 2022 | Payment Methods in Focus

 Buy Now, Pay Later

Size of the market

One of the most recent prognoses in the Buy Now, Pay Later (BNPL) global market forecasts that the payment method would reach USD

39.41 billion by 2030, registering a CAGR of 26.0% from 2022 to 2030. As the experts at Grand View Research explain, the market growth

can be attributed to the high purchasing power offered by the BNPL platforms, coupled with consumer benefits, such as interest-free

and convenient payments.

In July 2022, Adriana Ellice-Flint, product leader for payments platform Receeve, explained for The Paypers that the exponential growth

in ecommerce and the impact of the pandemic have fuelled the rise of BNPL, making it one of the biggest retail trends in the fintech

space. This indeed has been the ongoing narrative for the last two years.

While the BNPL term is used to encompass lending and instalment propositions for B2C and B2B ecommerce, the use cases and product

portfolios vary widely from region to region. In Southeast Asia, only 27% of the total population of 670 million inhabitants has a bank

account. In this general context, BNPL providers, multiservice providers, and banks alike compete for the same piece of the pie, while

according to a ReportLinker study dating back to February 2022, market consolidation is ongoing and expected to continue as bigger

participants acquire smaller ones. Worldpay estimates that (BNPL) will only account for up to 2% of ecommerce payment methods by

value in APAC by 2025 (especially compared to Europe, which is estimated to register a 12% market penetration by the same year).

Latest developments
The world vs BNPL regulation
Back in Europe, in January 2022, the UK Treasury closed a consultation calling on industry experts to share ‘views on the creation of a

proportionate approach’ to the regulation of BNPL. The British government introduced amendments to existing regulations in June 2022,

including requirements for lenders to carry out affordability checks and amended financial promotion rules to ensure BNPL advertisements

are ‘fair, clear, and not misleading’. In the EU, while strongly articulated regulation directly aimed at what BNPL means for the consumer

market is yet to be passed in Brussels, the European Council did revise its Consumer Credit Directive in June 2022, aimed primarily at

digitalisation and financial education for the public.

Several Asian countries are looking to regulate the framework for the issuance of consumer credit (Malaysia and Singapore being just

two recent examples). In the US, the Consumer Financial Protection Bureau (CFPB) is keeping a close eye on consumer credit products.

A probe announced in December 2021 asked major players Affirm, Afterpay, Klarna, PayPal, and Zip to provide insights into the risks and

benefits of their products, promising to take the data and translate it into a bill that would level the playing field between alternative

lenders and banks, while flattening the overall ecommerce debt ushered in by BNPL in the country.

Big players keeping up with the trends

A number of banks have tried over these past years to get in the BNPL game, promising increased security and dependability. Deutsche

Bank is the most recent example, announcing its cooperation with Austrian fintech Credi2 to develop a white-label BNPL product for

online retailers and ecommerce marketplaces.

Big card schemes are not far behind. In May 2022, Visa shed light on a fresh product, Visa Ready for BNPL, a new instalments partner

programme. Visa Ready for BNPL is meant to fast-track implementation and scalability of Visa’s BNPL offering by enabling fintechs and

select issuers to integrate Visa’s solutions. ➔

24 Payment Methods Report 2022 | Payment Methods in Focus

 Buy Now, Pay Later

The big BNPL scale-down of 2022

While it’s not all that grim, and big names are expanding (Revolut setting up BNPL operations in Ireland or Affirm partnering with Stripe

to take on a bigger part of the US BNPL market), others are scaling down visibly.

American BNPL provider Sezzle informed Indian merchants of its decision to exit the Indian market in April 2022 and requested them to

deactivate the service from their respective websites. A few months after, what seemed like one of the most relevant partnerships in the

BNPL niche fell through with Zip and Sezzle terminating their previously announced merger agreement. The timing of the move, as

per both companies’ statements, comes amid a drop in investment strategies towards speculative technology firms ‘as the Ukraine war

and supply chain problems push up inflation and interest rates, eroding consumer purchasing power’.

In July 2022, Australian BNPL operator Openpay decided to close operations in the US. According to Reuters, the American expansion

caused Openpay’s losses to increase by 65% in H1 2022 – and current economic and market conditions, along with ‘the likely ongoing

capital investment required’ forced Openpay to stop extending loans and cut most of its US unit’s staff.

The Klarna situation

Klarna climbed a steep and dizzying rollercoaster this year, and it appears to still be riding it. After the capital injection that led the BNPL

giant to achieve a valuation of USD 45.6 billion in 2021, Klarna’s valuation dropped dramatically this year by 85%, a process that came

with massive downsizing and changes in the market strategy.

In July 2022, they managed to secure a USD 800 million investment meant to be infused back into its US expansion, where they had

previously made a slew of product launches, including digital wallets for loyalty cards and alternative credit cards, not to mention a

Virtual Shopping tool launched in May 2022.

25 Payment Methods Report 2022 | Payment Methods in Focus

 Euromonitor International
Buy Now, Pay Later – The Accelerated Adoption and Innovation

Frida is a Senior Research Analyst at Euromonitor International with a focus on consumer finance.
Based in London, she conducts and commissions research for consumer payments and lending in
Western Europe, producing analysis on payment and financial service trends and advising clients
across a range of industries. Frida holds a bachelor’s degree in Commerce and Marketing from
Corvinus University of Budapest and a master’s degree in Sociology from the London School of
Economics.

Frida Polyak Senior Research Analyst Euromonitor International

Buy Now, Pay Later (BNPL) has been one of the most discussed New business models unfold amid intensifying
trends in the payments industry in recent years. Despite not being competition
a completely new phenomenon, fintech players have made the The BNPL landscape has evolved rapidly of late – fuelled by the

process and offer – interest-free instalment payments over a set skyrocketing BNPL demand and increasing supply from both new

period, available for large and small-ticket items – highly appealing to entrants as well as existing players. The European market is

customers. However, in Europe, the ever-evolving BNPL space is yet dominated by fintech firms specialising in BNPL; however, challenger

to see an expansion beyond the retail segment and consumer use. banks and the key card operators, Visa and Mastercard, have joined

the competition recently by merging their banking solutions with

BNPL explodes in popularity amid pandemic- BNPL. Neobanks, such as Revolut, Monzo, and N26, were among

induced online shopping boom the first to launch their own instalment payment solutions, which

The surge in online shopping during the COVID-19 pandemic served are no longer limited to retail purchases, but rather applicable to

as a catalyst for the acceleration and expansion of BNPL payments any payment transaction. This continuous evolution of offerings has

in Europe. According to Euromonitor data, the value of ecommerce contributed to intensifying competition within the BNPL landscape.

(goods) registered 60% growth between 2019 and 2021 in Europe, While global players have a strong presence across Europe, local

as consumers facing financial difficulties and those on limited competitors are quickly emerging. The role of local players is crucial,

income have favoured BNPL as a no-cost financing alternative. especially in Eastern Europe, where it is mainly the smaller, regional

The success of the payment solution, however, is rooted in being players who serve tech-savvy customers with BNPL solutions.

equally beneficial for customers and merchants. Retailers offering

BNPL at checkout attract more tech-savvy millennials and Gen Z The market has also witnessed the development of new BNPL

customers, who are the key target group of the lending alternative. business models. Leading players, including Swedish firm Klarna

Thus, BNPL can lead to improved customer acquisition and loyalty, and Australian firm Afterpay, have moved from being pure payment

as well as conversion rates. solutions toward fully integrated marketplaces. Consumers can

not only select the BNPL option at checkout, but also browse from

Despite BNPL’s growing in-store availability, the online channel a list of retailer partners to purchase their products via the BNPL

still holds important growth potential, particularly as ecommerce providers’ app. BNPL players are among the latest fintechs attemp­

hegemony builds. According to Euromonitor data, European ting to combine the functionalities of payment methods with other

ecommerce penetration within retailing value is projected to services such as banking – and we expect these companies to

increase from 16% in 2022 to 20% in 2026 – reflecting the ongoing play a substantial role in the potential blossoming of super apps

transformation of the retail landscape. in Europe. ➔

26 Payment Methods Report 2022 | Payment Methods in Focus

 Innovative BNPL uses promote growth despite The dynamic expansion of BNPL, combined with the lack of

imminent legislation in Europe thorough credit checking of consumers, is raising concerns over

The European BNPL market has predominantly focused on the retail the risk of unsustainable consumer debt levels. In Europe, there

segment. Consequently, expanding offerings beyond goods holds is currently no regulation in place around offering and using BNPL

growth opportunities for the BNPL space. In markets where the financing. This is due to change. The European Commission and

use of BNPL is already at a more advanced stage, consumers can UK Financial Conduct Authority have already submitted proposals

apply for instalment payments when procuring hospitality services or for new legislation covering the provision of short-term credit, with

travel deals. For example, the ‘Eat Now, Pay Later’ model in Australia Europe-wide regulation expected to come into effect in the next

is enabled by multiple BNPL providers, including Afterpay or Payo. year or so. While the industry expects regulation to be proportional

Travel booking platforms also promote BNPL as a payment option to the amount of credit offered, legislation is likely to somewhat slow

to attract customers, which can facilitate the recovery of tourism down the strong growth of BNPL in Europe.

after the industry was hit hard by the global pandemic’s impact in

the past two years. For instance, India-based Byond Travel offers What is next for BNPL in Europe?
travellers instalment payments with a 0% interest fee on holidays. Intensifying competition, emerging and developing business

Examples of services qualifying for BNPL are emerging in Europe models, and expansion across industries have all contributed to

too. In Ireland, ŠKODA has recently started offering new car owners the dynamic evolution in the consumer uses of BNPL so far. One

a BNPL payment solution on servicing, repairs, and accessories might rightly ask what else the future holds for the payment option.

through the third-party platform Bumper. Partnerships between Looking forward, we expect BNPL to continue its transformation

service providers and BNPL platforms are expected to gain increasing in the rapidly evolving space that is B2B payments, one which has

importance in Europe moving forward. also been undergoing significant digital transformation both prior

to and since the global pandemic.

Expanding into and specialising in financing a particular service

category could differentiate BNPL providers. An example is the

utility bills segment. Some financial institutions already allow

instalment payments on any transactions, including bill payments.

However, direct partnerships between utility companies and pure

BNPL players are yet to be established. Such new partnerships

could increase BNPL providers’ customer base and margin, and

they have the potential to contribute to the financial sustainability

of the model.

Euromonitor International is the world’s leading provider for global business intelligence,
market analysis, and consumer insights. Our research solutions support decisions on how,
where, and when to grow your business. With offices around the world, analysts in over
100 countries, the latest data science techniques and market research on every key trend
and driver, we help you make sense of global markets.
euromonitor.com

27 Payment Methods Report 2022 | Payment Methods in Focus

 The Strawhecker Group (TSG)
Buy Now, Pay Later: A New Generation of Credit Cards

Sheridan Trent has a Master of Arts Degree in Industrial-Organizational Psychology – as a Senior

Research Analyst at The Strawhecker Group, she uses her skills to conduct industry surveys, market
research, and explore emerging trends in the payment industry.

Sheridan Trent Senior Research Analyst The Strawhecker Group (TSG)

Introduction
Over the past few years, the Buy Now, Pay Later (BNPL) market has of interest attached to their payment plans, as a key justification for

grown significantly – a report released earlier in 2022 projected using BNPL over credit cards to consumers. This has been a largely

BNPL to account for 9% of all North American ecommerce successful strategy. Even if BNPL loans represent a risk to consumers

transactions and 12% of all European ecommerce transactions by who may be more likely to shop impulsively, an analysis by the

2025. Further, parts of the global BNPL landscape have started to Kansas City Federal Reserve in 2021, which compared the cost of

show signs of maturation with the development of vertical-specific a USD 500 purchase across three different payment methods (i.e.,

BNPL offerings, the acquisition of smaller BNPL players by those BNPL, a credit card with an APR of 17%, and layaway with a service

with greater market share, and the increasing popularity of white- fee of USD 5) found that BNPL is often the least expensive of the

labelled BNPL solutions by some retailers. With these trends in mind, three methods of payment (assuming on-time repayment of the loan

considerable media focus has been directed toward the evaluation by the consumer). For those who have done the math, this may be

of BNPL as a usurper of credit cards, or as the new ‘credit card’ one reason they are drawn to BNPL loans. The lure of an interest-

of younger generations of consumers. But the true threat BNPL free deferred payment option in and of itself may still be attractive

represents to credit cards as a payment method has only been for those hoping to avoid longer-term debt. In a recent TSG survey

minimally explored beyond vague assumptions and alarmist claims. of over 500 US consumers, from a lengthy list of potential product

Thus, the goal of this article is to examine the attractiveness of BNPL features, 82% of consumers selected ‘no interest’ as the most

as an alternative to credit cards, as well as the extent to which BNPL important consideration to them when choosing a BNPL offering.

has been truly embraced as a substitute by consumers.

Beyond the draw of a no-interest deferred payment option, emerging

Is BNPL really new? evidence suggests that some psychological factors prime consumers

BNPL shares characteristics with many popular payment methods. to respond favourably to BNPL loans. A study conducted in Australia

The most salient example is the credit card, another way of buying in 2021 comparing the amount of money spent by consumers utilising

goods at checkout while delaying payment. A common comparison is credit cards vs. cash vs. BNPL reported that consumers spent more

also often made to layaway, and to general plans allowing consumers on BNPL, since the amount of money spent felt smaller to them when

to pay larger balances in a smaller number of instalments. split across several payments compared to paying for a purchase

up-front. Higher checkout tickets have also been highlighted by some

Despite these commonalities in structure, the rise and popularity of companies as a selling point to merchants. ➔

BNPL – exacerbated by the financial crisis in the mid-2000s as well as

the more recent COVID-19 pandemic – seems to be attributable to its

unique traits, rather than those it shares with other payment methods.

For example, one thing many BNPL companies highlight is the lack

28 Payment Methods Report 2022 | Payment Methods in Focus

 One article from Klarna noted average order values were

approxi­mately 45% higher for retailers offering a BNPL checkout

option, and Afterpay (purchased by Square in early 2022) currently

reports a 40% increase in average order value for customers

using BNPL.

The user-friendliness of some BNPL offerings and how they combine

seamlessly with consumers’ phones as shopping apps (e.g., Klarna,

Afterpay) or add-ons to digital wallets they may already be using (e.g.,

PayPal’s Pay in 4, Grab PayLater) is another factor that differentiates

BNPL from credit cards. Namely, credit cards – while simple to

use once an individual has obtained one – require underwriting, a

credit check, and often a waiting period. BNPL apps can approve a

consumer for use in seconds, typically require only basic personal

details, and are often already well-integrated into consumers’ online

shopping ecosystems. This can make them faster and easier to use

than credit cards in many cases.

Conclusion
The attention BNPL has received as the new ‘credit card’ is not

unfounded, as some BNPL offerings can be highly appealing (one

consumer survey conducted in 2021 found that 62% of respondents

who were using BNPL felt it could replace their credit cards)

and evidence shows that many consumers use BNPL repeatedly,

rather than as a one-off payment method. Data from a recent TSG

survey also found that 80% of BNPL users agreed that BNPL was

a better option over credit cards when making a large purchase, and a

study by Affirm found that 68% of Millennials will not make an online

purchase without a ‘pay later’ option. Despite consumer demand,

the rise in fraud complaints received by the Consumer Financial

Protection Bureau over the past three years about leading BNPL

companies, as well as concerns over the BNPL business model,

bad debts, and heavy operating losses reported in 2021 from

Klarna, Affirm, Afterpay, and Zip are causes for concern when it

comes to the long-term viability of BNPL as a payment method. But

at least for now, BNPL can and is being used by consumers both to

augment and as a replacement for credit cards.

The Strawhecker Group (TSG) is a globally recognised analytics and consulting firm
that supports the entire payments ecosystem, serving over 1,000 clients from Fortune 500
leaders to more than a dozen of the world’s most valuable brands. Trusted by industry
leaders, TSG’s strategic services, market intelligence, and analytics merge to empower
clients with actionable and accessible information.
thestrawgroup.com

29 Payment Methods Report 2022 | Payment Methods in Focus

 ACI Worldwide
Basant Singh, Senior VP and Head of the ACI Merchant Business Unit, shares insights into BNPL aggregation, a concept and

solution aimed at disrupting the pay later and lending market.

Basant Singh is a highly experienced payments industry executive with more than 20 years of
experience, spanning payments, fintech, and consulting services. He leads ACI Worldwide’s
Merchant and Payments Intelligence solutions portfolio, which encompasses a Payment
Orchestration Platform to offer ecommerce, omnichannel payments, merchant fraud, and Alternative
Payments. He has global business experience with merchant acquiring spanning direct and indirect
channels, financial institution alliances, customer segments and verticals.

Basant Singh Senior Vice President, Head of ACI Merchant Business Unit ACI Worldwide

Why should a merchant partner with a white-label What can you tell us about the new ACI PayAfter
provider rather than a direct provider, for instance? solution launched this year? How does it stand
What are the benefits for merchants and consumers? out from other BNPL products on the market?
BNPL is booming, there is no doubt about it. Merchants are leaving ACI PayAfter gives the merchant access to 70+ BNPL providers

sales on the table if they don’t offer some form of short lending via a single API and only one contract with ACI. As for consumers,

solution to their customers. The problem is that most of the famous they only need to fill out one credit application regardless of how

solutions are surprisingly restrictive when it comes to credit approval many lenders are configured. There is no other global solution on

criteria. For the merchant, it means that there are a lot of shoppers the market that has a BNPL offering like this. Multiple lenders of

that want to avail of the service but are getting denied credit when different types, such as prime, near-prime, and sub-prime, can be

it comes to paying. At best, that’s a bad experience for consumers configured under ACI PayAfter which greatly increases consumer

but, in reality, it translates to lost sales. The logical solution to this is approvals and conversion. The shopper only applies for credit

to offer a wider variety of BNPL options at the checkout. However, if once, and has access to the broad selection of lenders, ensuring

each solution comes with its own button, the checkout gets pretty they match with the lender that is a fit for their circumstances. It is

crowded and confusing quite quickly. Not to mention the cost and a win-win for the shopper and the merchant.

time it takes to integrate all the solutions one by one.

For the shopper, it translates into a better experience all around.

At the checkout, there is only one BNPL button to choose from,

Multiple lenders of different
which means a cleaner and less confusing experience. With one
types, such as prime, near-prime, application, they have access to all the lenders participating in

and sub-prime, can be configured PayAfter and they get a very quick response and a very high

probability of credit approval.

under ACI PayAfter which greatly
increases consumer approvals For the merchant, the benefits are clear. They gain uplifts in con­

and conversion. version, with more happy customers who experience credit accep­

tance rates of up to 85%. And they only need to integrate once to

access the full array of lenders. In fact, if they are an ACI customer

already, there is no integration necessary. It’s a case of simply

activating a new payment method in the Payment Orchestration

Platform. ➔

30 Payment Methods Report 2022 | Payment Methods in Focus

 What types of BNPL providers are you partnering What is your outlook for the BNPL market in the
with? Direct providers only or do you also include coming years? More FIs developing pay later
services from banks and financial institutions? services, direct providers opening up their own
A mix of prime, near-prime and sub-prime banks and financial marketplace, or is there anything else that you can
institutional lenders plus card instalment providers and payin4 providers. envision?
The broad mix means consumers will be matched with the lender that BNPL has proven popular and is growing in usage. The reason for its

is right for them. Credit approval rates are considerably higher than popularity is the flexibility and control it offers shoppers. Spreading

with the traditional model of individual lenders offered at checkout. payments without incurring fees is clearly comfortable for shoppers

and they are becoming accustomed to it. This means it has cemented

While aggregating multiple BNPL options is more itself as an option at checkout for the foreseeable future. With Apple

convenient for merchants as well as for consumers, and Amazon now fully embracing BNPL, merchants are left with

how is the risk score checked and who takes little choice if they want to keep up with consumer demand. We will

responsibility for late payments? continue to see BNPL grow as a concept, and we will certainly see

A single credit app is filled out by the consumer and presented to continued innovations in this space, such as BNPL with crypto for

the first lender configured. The first lender has the right to approve example.

the credit line. Then, depending on configuration, the first lender can

share the credit info with the other lenders configured to find as many

approved offers as possible for the consumer. This increases the

chance for a consumer to obtain financing which, in turn, increases

sales for the merchant. The financial agreement is between the

consumer and the lender, with the lender being responsible for

collecting late payments from the consumer.

This service is more of a BNPL marketplace in

nature. How will it affect or influence customer
loyalty towards certain payment methods?
Shoppers have brand preferences. Sometimes, they have a

selection of go-to brands, and it’s important to cater to this. The

merchant can choose which lenders to configure and there are

multiple places throughout the checkout and credit app experience

where lenders’ logos can be featured. As ACI PayAfter offers

shoppers much higher credit approval rates, consumers will learn

that it is a better shopping experience, where they get credit, every

time, with just one application. This frictionless experience will

certainly generate loyalty, which is a win-win for both the merchant

and the shopper.

Click here for the company profile

ACI Worldwide delivers the software and solutions that power the global economy.
Our mission-critical real-time payment solutions enable corporations to process and
manage digital payments, power omni-commerce payments, present and process bill
payments, and manage fraud and risk.
aciworldwide.com

31 Payment Methods Report 2022 | Payment Methods in Focus

 AfterPay
How Consumers’ Changing Needs Lead AfterPay’s Transformation into Riverty

Teresa Schlichting Nikki Constantine

Chief Strategy Officer Director Global Marketing and Brand
Arvato Financial Solutions AfterPay

Teresa Schlichting is Chief Strategy Officer at Arvato Financial Solutions. Nikki Constantine is Director Global Marketing
and Brand at AfterPay. Together with their colleagues, they work on successfully bringing innovative BNPL products and
financial solutions to market.

Consumers, ecommerce, and businesses are changing, and so is 11-13% of consumers say they need each of those payment

AfterPay. Based on consumers’ increasing demands for flexibility, options, respectively.

transparency, and mindful spending, AfterPay transforms into

Riverty this fall. A completely new human-centric fintech brand with

a renewed focus: to help consumers and partners live their best

financial lives.

Consumers’ need for flexibility is still growing

Digitisation increasingly leads consumers to experience a brand or

product in one place and buy it in another. As a result, consumers’

needs change. They place more and more value on flexibility and

freedom of choice when it comes to what and how they buy.

This is most evident in payments. In this area, consumers report

having two different types of needs. First, there are the stable, top-tier

‘hygiene’ needs: consumers want to use a trustworthy, easy-to-use,

secure and well-known payment method. Around half of consumers

indicate these ‘hygiene needs’, meaning that payment methods must

meet these needs to even be taken into consideration by consumers.

Looking at the need for BNPL and flexibility from a broader perspec­

Second, consumers’ payment needs revolve around flexibility. tive, AfterPay Insights sees that consumers place more and more

Research by AfterPay Insights shows that half of all Dutch and value on having the freedom of choice: 22% of shoppers say that

German consumers indicate the need for flexible payments. Today, they want to use a payment method that gives them the freedom

36% of consumers actively seek out web shops that offer Buy Now, to choose how and when they want to pay. ➔

Pay Later (BNPL) services, with 18 – 39-year-old consumers doing

this the most. The growing need for flexibility is also clear when

looking at the needs for a ‘monthly invoice’ product or a payment

option that lets consumers postpone or split up their payments:

32 Payment Methods Report 2022 | Payment Methods in Focus

 Transparency is the key to flexibility and respon­ Changing consumer needs lead AfterPay’s trans­
sible spending formation into Riverty
Despite consumers’ high demands for flexible payments, meeting The increasing needs for flexibility and transparency show that

these needs is not self-evident today. Some find flexibility in pay­ments consumers are becoming more demanding. And shopping beha­v­

risky, saying it lets consumers lose the overview of their finan­ces. i­our has drastically shifted to an online first approach: running an

‘But I would like to turn this around’, says Teresa Schlichting, Chief ecommerce business is more complex than ever. Giving consumers a

Strategy Officer at Arvato Financial Solutions. ‘People lose an value-adding, solid brand experience involves constant optimi­sation

overview of their finances due to increased opportunities to spend of the value chain.

money, through accounts on different channels. With the right digital

financial tools, people have even more opportunities to live the life These developments lead AfterPay and Arvato Financial Solutions to

they strive for, without compromising on their financial literacy and take their next step and become Riverty, the human-centric fintech

freedom.’ that helps consumers and partners live their best financial lives.

As Riverty, AfterPay and Arvato Financial Solutions want to create a

more mindful approach to paying and finances.

For consumers, Riverty means more freedom during online shop­

ping, with transparency, fairness and communication, and a mindful

perspective on their financial wellbeing. As for partners and mer­

chants, Riverty turns Arvato’s Financial Solutions into one sustainable

force for growth. Under the new brand and its payment products,

merchants will be able to showcase their identity even more, while

also remaining close to their consumers. This results in a synergy that

helps build on current strengths and create the best opportunities for

ecommerce clients in the future.

Nikki Constantine, Director Global Marketing & Brand at AfterPay:

‘Our new payment products let consumers rely on a transparent

overview and flexible payment options to suit their evolving payment

needs. Plan your payments to your convenience. We remind you

AfterPay Insights confirms that giving consumers transparency when about upcoming payment due dates and we let you pause payments.

it comes to payments contributes to a better financial situation. We believe in the freedom that a digital tool can deliver.’

For example, almost 60% of people whose financial situation has

improved over the last year (18% of consumers) use an app that

gives them an overview of their finances by aggregating all their

payments. And as consumers use the app longer, their financial

Click here for the company profile
situation improves even further.

AfterPay – from Arvato Financial Solutions, soon to be Riverty – lets consumers and
partners live their best financial lives. Their BNPL products are available in nine markets
in Europe and consist of five payment services: the 14-day Invoice, Campaign Invoice,
Consolidated Invoice, Fixed Instalments, AfterPay Flex, and soon-to-be-launched Split in 3.
afterpay.nl

33 Payment Methods Report 2022 | Payment Methods in Focus

 Callsign
BNPL: Maximising the Rewards, Minimising the Risks

Amir Nooriala is the Chief Strategy Officer (CSO) at Callsign, responsible for the customer and partner
strategy alongside sales. Previously, Amir has held roles including CSO and COO at OakNorth, Ops and
Tech MD at BGC, and has also worked at Barclays Investment Bank, Accenture, and Cisco Systems.

Amir Nooriala Chief Strategy Officer Callsign

Buy Now, Pay Later has taken the payments world by storm. Navigating the BNPL challenges
Customers have been quick to adopt this new payment method, That figure is a cause for concern for all stakeholders – not just

fuelled by the ability to spread the cost of payments, with one in customers, but ecommerce businesses, banks and BNPL providers.

five consumers admitting to making an unplanned purchase based In a packed marketplace with fierce competition, even a single

on BNPL as an option at checkout. instance of fraud can be disastrous for a business, with almost

one in five victims stating they will no longer use any BNPL service.

For businesses, BNPL is awash with opportunities. Ecommerce

organisations are enjoying a marked increase in sales and ticket But fraud is not only impacting the trust that a victim may have in the

prices. Banks and financial organisations are also in a strong BNPL provider. According to our research, nearly a quarter of victims

position to reap the rewards, with increased revenue and customer will no longer return to the website where they purchased the good

retention resulting from such offerings. after experiencing a fraud attempt or a fraud attack, undermining

the entire ecosystem.

However, as with any other type of monetary transfer, the bad actors

– the fraudsters and scammers – have not been slow to see their Given the demographics surrounding BNPL customers, that’s hardly

own opportunities around BNPL. And, if businesses aren’t aware surprising. BNPL offerings have resonated particularly stronger

of the threats and the ways to mitigate them, the pendulum could with Gen Z and Millennials, the younger ‘digitally native’ users who

swiftly swing from opportunity to crisis, as consumers begin to lose account for 57% of BNPL’s user base. And accordingly, that’s the

trust in providers and merchants. same demographic that’s most likely to fall foul of BNPL fraud –

disproportionately so. ➔

BNPL and fraud

Fake account creation and account takeover are just a few of the

vectors we’ve seen used to attack BNPL services. Fake accounts

using stolen credentials, often harvested from more than one victim,

are hard to detect and look authentic, building up credibility before

a large payout is made.

According to our research, account takeover fraud (ATO) makes for

22% of malicious BNPL activities. Along with scam sites, looking

to harvest consumer details to conduct fraud elsewhere, it’s not

surprising, then, that across the world, one in eight BNPL users

have been a victim of fraud.

34 Payment Methods Report 2022 | Payment Methods in Focus

 59% of fraud victims are in the 18-34 group – that’s nearly three And that has far-reaching implications for not just any single group

times the number of those aged 55 and over. of stakeholders, but for the entire BNPL ecosystem. The loss of trust

has the potential for a domino effect where everyone stands to lose

If those figures are alarming, it’s worth remembering that there are out: merchants, banks, providers, and customers.

other forms of damage that BNPL fraud incurs. Aside from the

straightforward impact on revenue, there is also the reputational Let your customers get on with digital life
harm that can result from dissatisfied customers sharing their expe­ Customers want that trust to exist, with 45% expecting any busi­

riences on social media platforms, a factor that can potentially hit an ness offering BNPL to protect them from fraud. But in such a rapidly

organisation’s bottom line harder than all the above combined. growing digital industry, this shouldn’t be at the expense of the

customer experience. It’s a difficult balance to strike, and likely why

it’s often prioritised over fraud prevention.

For those businesses, the key to doing that is to put the right solu­

tions in place – solutions that consider security and user experience

equally.

Organisations such as Callsign offer a full suite of technologies that

layer device, threat, and behavioural intelligence, allowing all BNPL

stakeholders – banks, merchants, and providers – to offer their

customers and partners watertight fraud protection that doesn’t

compromise the customer experience.

BNPL is here to stay, and it’s imperative that organisations protect

themselves from fraud and scams. Failing to do so runs the risk of

‘paying later’ becoming the main issue.

Cracking the BNPL conundrum

At the heart of that mindset is trust – or rather, a loss of it. Trust takes If you’re interested in learning more, you can download this compli­

a long time to build and can be lost in seconds. Or, in the case of mentary BNPL report from the 451 Group (S&P Global Market

BNPL frauds and scams, in a single click. Intelligence).

Building and maintaining that trust is pivotal to the success of All statistics are taken from Callsign-commissioned research in

BNPL. But despite its huge popularity, there is still a long way to go. BNPL and consumer trust.

Currently, only 42% of consumers trust providers to protect them

from fraud, with 51% more likely to trust a BNPL service provided
Click here for the company profile
by a bank. That’s still a number on the low side.

Callsign makes digital life smoother and safer by helping organisations establish and
preserve digital trust so people can get on with their digital lives. The first true representation
of identity online, Callsign positively identifies users by their unique characteristics,
replicating real-life recognition signals with AI models. The only solution to identify people
across every journey, channel, and brand, Callsign makes digital identification seamless

callsign.com and secure, helping drive business growth.

35 Payment Methods Report 2022 | Payment Methods in Focus

 Diebold Nixdorf
Jens Audenaert of Diebold Nixdorf details how banks are responding to the BNPL trends and how they can overpower fintechs

in the innovation race.

Jens Audenaert is a Senior Vice President at Diebold Nixdorf, and General Manager of the
company’s global Payments business. Prior to joining Diebold Nixdorf, Jens ran an enterprise
Software-as-a-Service business and founded and scaled the new business incubator at a Fortune
250 company. Prior to that, he spent a decade as a strategy consultant in Europe, Asia and North
America. Jens is a sought-after thought leader with deep knowledge of the software industry, cloud-
native solutions, and retail banking.

Jens Audenaert Senior Vice President Diebold Nixdorf

The rise of Buy Now Pay Later (BNPL) has proven tale for them. In this era of rapidly accelerating innovation in the

a boon for many fintechs, with traditional banks payments space, banks need to reevaluate their strategy on how

lagging and missing out on some of the profits. to stay relevant to consumers and merchants while growing their

Why has this been the case? business through new payment transaction methods (many banks

BNPL has been one of the winners coming out of the digital pay­ derive north of a third of their revenues from payments).

ments acceleration during the pandemic, with massive consumer

adoption. BNPL transaction dollar volumes are increasing 12 times To a large extent, banks were not necessarily caught off-guard by

faster than any other unsecured lending product and are projected the rise of BNPL but they did lack the ability to quickly adapt to

to account for more than a quarter of the unsecured lending market the emerging trend, given their complicated and outdated legacy

by 2026. The opportunity has almost in its entirety been driven by technology infrastructure (or that of the processors they work with).

fintechs – a very crowded space with some standout large players

such as Affirm, Klarna, and Afterpay. Is there a way for banks to still participate in BNPL?
What should their stance be vis-à-vis BNPL fintechs?
Fintechs certainly pose a real and present competitive threat to
Not knowing which payments
traditional banks, with companies like Revolut and N26 obtaining
trends are here to stay, a modern full bank licenses. However, fintechs also provide brick-and-

payments platform first and mortar banks with partnership opportunities. This, for many banks,

is the best path forward to enter the BNPL space – unless they
foremost needs to be future
have the technology setup and know-how to orchestrate such a
proof: flexible, adaptable, and transaction with their own payments platform. As long as banks

extensible. rely on legacy systems, this coopetition model will continue to be

the go-to strategy of providing emerging payment methods to their

customers – enabling the financial institution to remain relevant to

Surprisingly, almost no banks have brought their own BNPL offering their customer base albeit while only extracting a small share of the

to market, despite the appeal not only to consumers, but also to the profit pool for those transactions. ➔

merchants that many banks serve through their merchant acquiring

businesses. Fintech innovations like BNPL should come as no

surprise, but the fact that traditional banks haven’t been able to

jump on the wagon quickly enough should serve as a cautionary

36 Payment Methods Report 2022 | Payment Methods in Focus

 What can traditional banks and financial institu­ How can your solution, Vynamic® Payments, help
tions do to not repeat the example of BNPL where finan­cial insti­tutions stay abreast of changing pay­
the value from financial innovation is being reaped ment trends and consumer expectations?
almost exclusively by fintechs? Payments is in the DNA of Diebold Nixdorf, and with our Vynamic

Banks must untangle themselves from payments technology that Payments platform, we now have an outstanding digital payments

has reached its effective end of life. More than 40% of banks are still solution for financial institutions, leveraging a truly cloud-native

relying on monolithic legacy payments platforms coded in COBOL. architecture with all the benefits the cloud has to offer (and many

This exposes them to systemic risks related to performance and of the benefits discussed even before when deployed on-premises).

resilience, inflated costs, inability to keep up with regulatory changes, This is exactly the kind of payments platform that allows financial

and a rapidly dwindling talent pool capable of maintaining and institutions to integrate with any system, and to process any type of

changing the codebase. It also prevents them from properly inte­ payments with any type of authentication. And ‘any’ is the key – in

grating with new systems, and from designing and deploying their a world where no one can predict what the next major trends will

own new services quickly. In today’s fast-changing payments be and which trends will actually win in the long run, a future-proof,

land­scape, the benefits for banks to replace their payments stack modern payments solution must prove itself flexible, adaptable,

far outweigh the perceived risks of migrating to a new payments and extensible.

engine – especially with more banks adopting a cloud-first strategy.

Banks should be mindful though, that when selecting a new pay­

ments system, it is one that relies on a cloud-native, modern

architecture and that truly provides a future proof solution that can

be easily extended and adapted (ideally, by financial institutions’

own engineering resources).

Do you believe traditional banks stand a chance to

win this innovation race?
Traditional financial institutions have significant advantages over

fintechs in their own right, notably their customer populations and

relationships, including historical data and additional services (e.g.,

mortgage lending). In addition, as opposed to their new fintech

competitors, banks are well placed to satisfy the need for a seamless

omnichannel payment experience between different payment

methods (card, ACH, cheque, and digital payment methods). In other

words, with the right strategy and the right infrastructure, banks

can give fintechs aspiring to become fully licensed banks a run for

their money.

Click here for the company profile

Diebold Nixdorf is a leader in enabling connected commerce. We automate, digitise, and

transform the way people bank and shop. A partner to most of the world’s top 100 financial
institutions and top 25 global retailers, our integrated solutions connect digital and physical
channels conveniently, securely, and efficiently for millions daily.
dieboldnixdorf.com

37 Payment Methods Report 2022 | Payment Methods in Focus

 Jifiti
Yaacov Martin, the CEO and Co-Founder of Jifiti, discusses the key aspects and benefits banks and merchants need to know

about POS financing and BNPL.

Yaacov Martin is the CEO and Co-Founder of Jifiti, a global fintech company that he co-founded in
2011. Yaacov is a subject matter expert on BNPL and a contributor to leading financial, fintech and retail
publications including The Paypers, American Banker, Business Insider, TechCrunch, Forbes, and
numerous others.

Yaacov Martin CEO & Co-Founder Jifiti

Before we dive in, let’s first confront the elephant in Market sustainability doesn’t have much to do with the service itself

the room. With all the latest market and regulatory - it has to do with the one providing that service and whether or not

upheavals, is BNPL even sustainable? they can support a healthy business model for it.

Buy Now, Pay Later is here to stay as a mainstream payment

method - the industry isn’t dying, it’s simply shifting towards bank- For the past three years, Jifiti has banked on banks
driven BNPL solutions. One powerful piece of evidence of this is leading the BNPL way and now this is the direction
the fact that Apple recently launched its own BNPL offering, in which the industry is headed. What advantages
Apple Pay Later. This move is a significant vote of confidence in do banks have over the fintech incumbents?
the staying power of Buy Now, Pay Later. Unlike fintechs, banks are not dependent on external investment for

their lending funds, so they’re more likely to weather the economic

storm. While fintechs are likely to curtail their approval rates and
In today’s turbulent economy, increase their BNPL merchant fees, banks and their offerings

consumers and merchants will remain largely unaffected. This is because banks have well-

can bank on banks for stable, established balance sheets and can leverage their low cost of

capital to offer competitive point-of-sale financing. Banks are also

responsible, and affordable not solely dependent on BNPL for their existence.
financing at the point-of-sale.
Another factor in favour of banks is the fact that they already operate

within a regulated framework, so they won’t be constrained by

Another key indicator is that consumer demand is going strong, upcoming BNPL regulations. Regulatory pressure is good news for

with 53% of consumers planning on using BNPL services over the banks as it means a shift in demand towards responsible financial

next 12 months. The industry is predicted to reach USD 1 trillion options from regulated financial entities.

in annual transaction value by 2025.

With a white-labelled BNPL solution in hand, banks can play to

So, while the macro-economic and regulatory climate is certainly their inherent strengths and brand equity and leverage the trust

affecting the fintechs themselves and their ability to provide that consumers have for their services to become BNPL market

competitive BNPL solutions, it does not equate to a drop in consumer leaders. ➔

demand for BNPL. On the contrary, interest rate and inflation hikes

drive consumer demand for pay-over-time options.

38 Payment Methods Report 2022 | Payment Methods in Focus

 With so many players in the BNPL landscape, what Another essential feature is multi-lender with waterfall. With a multi-

makes Jifiti different from other market players? lender solution, if a customer’s BNPL application is not accepted by

One of Jifiti’s key differentiators is that we enable banks to compete the prime lender (bank or tier-1 lender), it ‘cascades’ to a waterfall of

in the BNPL space using our white-labelled platform. Merchants secondary lenders. Merchants can increase their BNPL acceptance

can easily embed the consumer loan programs offered by these rates by up to 85% this way.

regulated financial entities directly into their point-of-sale or online

checkout. This allows them to offer the best service and user expe­ Higher acceptance rates can not only translate to more sales, but

rience to their customers. also to stronger brand equity. When customers are approved for

point-of-sale financing, they have a positive retail experience. If the

solution is both multi-lender and white-labelled, they’ll associate this

positive experience with the merchant’s brand.

What do you predict that the future holds for the

BNPL industry and for Jifiti?
I predict the pendulum will swing back to banks and traditional

lenders (it’s already starting to happen). I think that tech companies

will stick to the technology aspect of BNPL, while banks will focus

on lending, the space where they really shine.

For merchants and consumers, this means easier and more

convenient access to consumer financing programmes from banks.

Banks will need to transform their consumer lending and make

it available at the moment and place where consumers need it - at

the point-of-sale. BNPL has become a must-have instead of a nice-

to-have, as consumers expect it as a payment method at checkout.

In your experience, what are the two most essen­

tial features merchants need, but aren’t necessarily Banks and lenders that want to be relevant and competitive in the

aware of, in a BNPL solution? BNPL space can do so quickly and effortlessly by partnering with

Many merchants aren’t aware that, with the following two features, the right technology company. As a facilitator of white-labelled

they can build their brand equity and customer loyalty, in addition point-of-sale financing solutions, Jifiti is positioned to be front and

to maximising their customer conversion rates. centre of the evolving BNPL space.

When the BNPL solution is white-labelled, branded for the mer­ BNPL presents an opportunity for banks to become part of the

chant, and embedded right into their customer journey, it works as ‘checkout page experience’. This can open doors to a more

a booster for the merchant’s brand. Direct-to-consumer fintechs direct relationship with shoppers, even if they aren’t bank clients,

tend to distract and divert the consumer from the merchant’s own something which has never been possible before.

user experience, but a white-labelled solution enables the merchant

to retain customer loyalty.

Click here for the company profile

Jifiti is a leading global fintech company that powers white-labelled Buy Now, Pay Later
solutions for banks, lenders, and merchants. Jifiti provides cutting-edge technology and
innovative solutions for regulated financial entities and merchants to compete in the growing
BNPL market.
jifiti.com

39 Payment Methods Report 2022 | Payment Methods in Focus

 PAYLA
Roberto Valerio, Co-Founder and CEO of PAYLA, discusses what responsible BNPL means nowadays and how new regulations

may impact the ecosystem.

Roberto is the Co-founder and CEO of PAYLA. Prior to this, he founded Risk42, a software startup
specialising in credit scoring automatisation. The business was sold in 2020 to Unzer Group. From
2012 to 2018, he was the founder and CEO of RISK IDENT, a software company building sophisticated
fraud prevention products within ecommerce, telecommunications and financial services. Customers
included Otto Group, Deutsche Telekom, Vodafone, BillPay, RatePay, Schufa among others. For the
last years, he has played an active role within the online payment and risk management industry.

Roberto Valerio Co-Founder and CEO PAYLA

What are your comments on the recent contro­ Moreover, traditional BNPL products like the ones that are so

versial discussions about BNPL? How do you see popular in Germany since decades are primarily focussed on

the need for BNPL market regulation in relation to consumer protection. They are not even predominantly used for

the revised Consumer Credit Directive (CDD)? instalments; more than 90% of all BNPL transactions in Germany

There has been a lot of misconception about BNPL recently. It is a are paid back in one single payment, less than 21 days after delivery.

very convenient payment method and has grown in popularity in the

past few years, especially in the US and UK. In Germany, however, If people overspend, they usually use multiple credit opportunities

these payments have existed since the early 70s, and they are the altogether. We should talk about responsible lending, but it does not

most popular type of payment. And that’s because they took a lot make any sense to circle out one particular form of consumer credit.

of risk out of distance selling business. As a consumer, you would BNPL companies that are in the space for a long time have also

be able to make an educated buying decision without having to proven to be responsible in how they look at consumers defaulting

pay beforehand. You would be able to assess the quality first and on claims. They are not incentivised at all to hand out credit to

return the goods before paying. And a merchant not delivering in people that are not able to repay, since they have to compensate

time or at all would not receive any money. It has always been a these losses. This is not the case for credit card companies, where

consumer centric product. the issuing bank will ultimately be responsible for the payment.

So what happens if the CCD now puts a lot of regulatory burden

We should talk about on BNPL products? What if any BNPL transaction gets treated like

responsible lending, but it does a consumer credit? Would it change the way BNPL products are

not make any sense to circle out integrated into the checkout? Could it lower conversion rates for

BNPL products? It might. But it is really beneficial to the consumer?

one particular form of consumer Evidently not. Does it reduce young people’s indebtedness? It is
credit. highly unlikely. BNPL volume will simply be shifted back to credit

cards and e-wallets. In my opinion, that is more in the interest of

the card schemes than of the consumers. ➔

40 Payment Methods Report 2022 | Payment Methods in Focus

 So how do responsible BNPL products look? But I doubt Apple will become the dominant BNPL payment

Why does more regulation hurt the financial weak provider. Market share will increase their exposure to regulatory

consumers instead of protecting them? and antitrust scrutiny. Perhaps Apple should partner with some

Many young people do not use traditional bank products anymore. more financial institutions and open up Apple Pay as a platform

They simply buy things and decide on a short to medium time frame to the BNPL industry. As a payment method, Apple Pay is highly

financing option like BNPL payments. A lot of these transactions are convenient. But Apple as a credit bank that coincidently also sells

untransparent to retail banks and credit agencies, which makes their hardware and software? Not very likely.

consumer data pools less significant for credit scoring.

What is the future outlook for BNPL? Where is the

Being in the BNPL space for so long, we see a lot of people with industry heading to?
low credit scores who are unable to obtain a bank loan, but who By now, BNPL products have become mainstream payment methods

con­tinue to pay their BNPL instalments very reliably. Financially in so many countries that I am looking forward to seeing how they

weak consumers can use these products to regain some financial grow further within the next few years. Our company, PAYLA, is

stability. Many consumers with tight budgets are happy to have the back-end for several large payment providers and retail banks

these options, and it helps them greatly in their financial household offering BNPL products. It is also good to see BNPL providers

planning. investing so much money and effort in grabbing market share -

even if it was backed by heavy venture spending. While this will

Traditional BNPL products are always tied to a purchase, so there is end soon, it won’t have a negative impact on BNPL’s share of the

a clear equivalent value of goods. Credit cards and bank accounts, overall payment mix - BNPL has already been very successful in its

on the other hand, are sources of free cash. A lot of cash can be traditional markets and will continue to grow substantially in new

wasted on the wrong things. Cash has the highest risk of being markets as well. And as we know from our own business, all large

spent unwisely for someone in financial trouble. Therefore, free cash payment providers are further developing their BNPL products.

financing instruments such as bank loans should remain regulated.

What is the impact of the recently announced

launch of Apple Pay Later on the BNPL space?
In order to broaden their market share, Apple is trying to make their

products more affordable for consumers with less budget. Offering

financing options makes perfect sense. Especially since Apple has

a lot of additional ties to every Apple user. Just imagine, you miss

a few payments and your Apple-ID gets disabled.

Click here for the company profile

PAYLA is a true white-label ‘Buy Now, Pay Later’ service provider for European Payment
Service Companies and Financial Institutions. The software platform is a complete turnkey
solution covering all aspects of BNPL, including automated risk assessment, debtor
management, any level of high-quality customer support and also the full refinancing of
the invoice and instalment volume. PAYLA’s clients are able to provide fully integrated and
white-labelled BNPL products to their merchant customer portfolio with little effort and no

payla.de risk, generating steady revenues solely based on the merchants transaction volume.

41 Payment Methods Report 2022 | Payment Methods in Focus

 Tinka
Disrupting the Status Quo in BNPL with Responsible Deferred Payments Solutions

Throughout his career, Charly has founded, built, worked for, failed at or sold several businesses
around the world. But above all, he is a strategist, people leader, geek, proper technology & data
nerd, and networker at heart. Not necessarily in this order. He joined the Netherland’s largest
department store, an Apax Partners private equity portfolio company, as Group CTO in April 2016.
Four years later Charly took on the position of CEO of Tinka, the consumer finance business within
the group and carved it out successfully with the Tinka team.

Karlheinz ‘Charly’ Toni CEO Tinka

The lack of regulation with Buy Now, Pay Later payment options has Redefining the deferred payments industry for
exposed vulnerable consumers to over-indebtedness as a result of everyone’s benefit
abusive fees and charges by financial services providers. When consumers are having trouble paying, everyone is losing

out: merchants, consumers and ultimately, the deferred payments

BNPL products are commonly falsely marketed as the ‘cost- market. Merchants, as they lose repeated customers. Consumers,

free’ alternative to consumer credit. This is misleading, to say the as they suddenly find themselves being treated as mere numbers.

least: late payment fees make up between 8% and 35% of BNPL The market, as they have let both merchants and consumers down.

companies’ revenues. In contrast, we give consumers and merchants peace of mind when

dealing with deferred payments. We provide the right solutions to

Clearly, this does not leave happy or repeat customers and causes the customers of our partners. Everybody wins.

grave problems for unsuspecting customers. Consumers and

retailers alike are having to deal with the onslaught. We aim to establish our reputation as the trusted partner of choice

for merchants and consumers and thus, raising standards across

Our vision the industry. No one will be left behind. ➔

Tinka’s goal is to become the most recommended and responsible

deferred payments partner in the Netherlands and across other

European countries.

Our history
We are born out of retail. From 1960 onwards, we helped to create

one of the largest retailers in the Netherlands with more than 70%

of revenues generated via our responsible products. In 2019, we

started our journey to independence and offered our experience

to other retailers, which ultimately led Tinka to spin out of its retail

parent in 2021. As a result of our innovative solutions, Tinka is now

offering its omnichannel products to retailers across the Netherlands

generating over EUR 1.5 billion annually and serving millions of

customers. Responsibly, with peace of mind to our retail partners

and our valued consumers.

42 Payment Methods Report 2022 | Payment Methods in Focus

 Is it all just talk and no do? No matter what the result of the new regulations might be in the

Changing a billion EUR market means we must always be at least end, we will not stand for practices that go against the interests of

one step ahead to lead the way: we have made every effort to our partners, retailers and consumers.

support existing debtors through the COVID-19 crisis by extending

a helping hand to those who needed it. When we saw inflation rising Innovating for consumers and our partners
towards the end of last year, we were standing by the side of our We kept innovating with passion and are proud to be the only player

consumers as the first in the market. With great results - consumers to cover the whole deferred payments landscape - from invoice to

appreciate us with an NPS of 52, steadily increasing. BNPL to consumer credit. Fully regulated. Omnichannel.

For our retail partners with a brick and mortar presence, we

innovated our deferred payments solution ‘Tinka Tab’, which is fully

independent of the Visa and Mastercard payment rails to reduce

integration pain. Omnichannel.

For our consumers we innovated a simple and straightforward

experience: within 90 seconds any consumer can undergo KYC,

fully CCD compliant creditworthiness checks and even card (Tinka

Tab) issuance. Within 90 seconds Tinka enables consumers to be

in full control of their cash flow. With full peace of mind.

Everybody wins.

The new Consumer Credit Directive

As Tinka, all of us are extremely strong proponents of implementing

the new Consumer Credit Directive (CCD) as initially drafted without

being watered down by the extreme lobbying of the market. We see

this as the one chance of the next decade to avert human misery

that is bound to be unleashed should regulations not catch up with

and counteract market practices. We observe too many loopholes

in the BNPL market mercilessly exploited to the detriment of millions

of consumers and thousands of merchants.

Click here for the company profile

Tinka is a deferred payments service provider based in the Netherlands, registered and
authorised by the Netherlands Authority for Financial Markets (AFM). With more than half
a century of experience in the deferred payments sector, we offer all deferred payment
solutions to our merchant partners and their customers. Responsibly. These solutions
include invoiced Buy Now, Pay Later, and different consumer credit options.
tinka.com

43 Payment Methods Report 2022 | Payment Methods in Focus

 BNPL Global Mapping

NORTH AMERICA EUROPE MIDDLE EAST AND AFRICA ASIA

Canada UK Nordics UAE China Singapore

(Sweden, Norway, Finland, Denmark)

only in Denmark
Saudi Arabia Hong Kong
only in Sweden, Finland

US only in Denmark only in Norway

Turkey India Malaysia
Poland
France

Bahrain and Oman Israel

Romania
Indonesia
Netherlands Egypt
Japan
Switzerland

Mexico
Belgium Uzbekistan and Kazakhstan Thailand
Italy Nigeria Ghana

Philippines Vietnam
Lebanon, Irak, Jordan, Kuwait
Germany
SOUTH
AMERICA Colombia Spain
South Africa

Argentina
Austria
Portugal OCEANIA
Australia New Zealand
Brazil

44 Payment Methods Report 2022 | Payment Methods in Focus

 Buy Now, Pay Later
Examples of Business Models
Direct providers

Via credit and debit cards

*Non-exhaustive

45 Payment Methods Report 2022 | Payment Methods in Focus

 Buy Now, Pay Later
Examples of Business Models
Software and platform solutions

International gateways

Consumer lending

B2B commerce

Aggregators

*Non-exhaustive

46 Payment Methods Report 2022 | Payment Methods in Focus

 E-wallets and On-demand Apps

Size of the market

With the promise of ease of use, speed, and transparency in commercial transactions, e-wallets have become ubiquitous and are generally

associated with bigtechs and their complex portfolio of features that embody everything from ecommerce, P2P, POS, and social payments.

According to Technavio market research, the online on-demand home service market by mobile application was expected to grow at a

CAGR of 16.6% during the forecast period 2019–2026, and as per Statista, by 2023, the total number of mobile app downloads may go

up to 258 billion. It is a fertile market which boomed starting in 2020 and maintained a steady growth. Apart from supply and demand, one

of the motors of this growth was also convenience ushered in by tech advancement in fintech and the proliferation and democratisation

of payment methods, especially via mobile.

FIS found that digital wallets accounted for 48.6% of ecommerce transaction value in 2021 — representing a bit over USD 2.5 trillion.

The company projects that this will continue to increase to 52.5% in transaction value in 2025. Currently, there is a visible focus on Asia

when it comes to the boom in mobile payments, with research indicating that China and Japan are major markets for the APAC sector.

Chinese apps Alipay and WeChat are still ahead of any competition, with an estimated user base of over a billion users each. And with

good reason, considering that any seller can build a digital presence within the platform of these super apps and automatically access

its database.

While the widespread dependency of common payment and technological infrastructures on bigtech and the risks associated with this

have been the subject of debate for a while, the speed at which e-wallets such as Apple Pay or Google Pay didn’t cease in popularity

has been continuously supported by wider smartphone and mobile device penetration.

According to Juniper Research, when it comes to ecommerce payments, there is one primary player that still holds a big part of the

global market apart from the above-mentioned. PayPal (and its subsidiary brand Zelle) has been growing at a steady pace especially

thanks to its PayPal.me functionality, which enables users to create personalised PayPal links that can be sent via text, email, and/or

across social media platforms.

Latest developments
Mobile wallets
While Tap to Pay is becoming a pillar of mobile payments and is proliferating through the US (Square and Adyen being the main recent

enablers for ecommerce when it comes to Apple’s Tap to Pay), Google is keeping up on Android through integrations of its own (playing

the same game, but with an increased focus on India’s UPI).

A recent update coming from Google saw the bigtech roll out an internal rival, Google Wallet, to function in tandem with the Pay

functionality in some counties. The new app is said to have been already adopted at a large scale in the US and is making its way through

the rest of the world. The new wallet is meant to contain all the functionalities of the Google Pay e-wallet, from storing credit and debit

cards to loyalty programmes and boarding passes. In addition, though, users will be able to digitise vaccine cards, student IDs, and

even use Google Wallet as a digital car key. ➔

47 Payment Methods Report 2022 | Payment Methods in Focus

 E-wallets and On-demand Apps

On-demand apps
Estonia-based hire vehicle company Bolt has announced it raised approximately USD 709 million at a valuation of USD 8.4 billion to

continue expanding its super app. The company operating in Europe and beyond will use the money to improve its ride-sharing market,

expand the 15-minute grocery delivery option Bolt Market, and build new ‘dark stores’ in other cities.

Uber, on the other hand, partnered with prominent mobility services to expand both its reach and functionality (it now accepts crypto

payments on its Food Delivery app alongside DoorDash, while also announcing it will integrate Rakuten’s services into its Uber Eats

and Uber mobility app in Japan).

48 Payment Methods Report 2022 | Payment Methods in Focus

 Edgar, Dunn & Company
Is the Future of the Super App and the Super Wallet the Same Proposition?

Mark Beresford is a Director at Edgar, Dunn & Company (EDC) and has over 25 years of strategic
consulting experience in the payments sector. He is responsible for the company’s Retailer/Merchant
payments practice, working with omnichannel merchants and payment service providers across the
globe.

Mark Beresford Director Edgar, Dunn & Company

The Asian landscape

The Chinese leapfrogged from telephones to smartphones, which

has allowed the local dominant internet companies to develop super

apps that have not been seen in the West. A super app is a single

app that does almost everything – from buying an evening takeaway

meal to hailing a taxi, chatting with friends, arranging a loan, and

even booking a restaurant or cinema tickets. This is a ‘winner takes

all’ app. Super apps come in all shapes and sizes. Some are

financial services-led, some are winner-take-all lifestyle apps, and

there are aggregator apps. Today, the two leading Chinese super The journey to the West
apps are Alipay and WeChat, which are lifestyle ecosystem apps, In the West, there are rules and regulations around the privacy of

that are used by over a billion users. It is estimated that these personal data that have created a lot of complexities for super app

winner-takes-all apps have more than one million different services, aspiring companies. Hence, there are limited examples of these

which are created by third-party companies and accessible within Chinese lifestyle super apps gaining any traction in the West, even

the Alipay and WeChat super apps. though there are examples of Western companies catching up with

their Asian counterparts to offer super apps with a new twist. This is

Chinese internet companies think differently by building entire eco­ building upon a key trend already known in the payments industry:

systems, whereas in the West companies such as Nike are product- consumers enjoy having a single place where their tokenized credit

centric apps. Under Chinese law, all companies are compelled to cards, debit cards, and bank account information are all stored.

hand over that data to the Communist government. These lifestyle

super apps generate a lot of personal data that can be collected The Buy Now, Pay Later (BNPL) company Klarna has unveiled its

and analysed. Grab – which was originally a transportation company super app that consolidates shopping, payment management,

that now offers food delivery and digital payments services – is product delivery, and product returns. This is a financial services-

another super app, headquartered in Singapore and used throughout led app – not as ambitious as Chinese super apps, however, based

Southeast Asia, especially in Indonesia. on Klarna’s recent acquisitions, there appears to be a strategy for

reaching that point. The conversational commerce tech startup

HERO was acquired by Klarna in 2021, which connects online

shoppers with in-store retail associates. In 2021, it also bought the

Germany-based discount shopping platform Stocard, which stores

customers’ loyalty and rewards cards in one place, automatically

applying any discounts at checkout. ➔

49 Payment Methods Report 2022 | Payment Methods in Focus

 More recently, Klarna completed in April 2022 the acquisition of the associates by combining Walmart’s retail knowledge and Ribbit’s

price comparison platform PriceRunner, which it plans to integrate fintech expertise. More recently, in January 2022, the company

into its super app. This is an interesting development of the Western announced its acquisition of online banking and overdraft protection

super app which brings together Klarna’s growing community of provider ONE Finance and earned wage access provider Even.

250,000 merchants, including H&M, IKEA, Expedia, Samsung,

ASOS, Peloton, Abercrombie & Fitch, and Nike. This is not a product Looking ahead
or brand-centric strategy, and it is not a BNPL-only solution – but Artificial Intelligence-powered financial assistants that can offer

an end-to-end shopping solution which empowers consumers from personalisation and budget automation for consumers will be one of

product discovery to how they pay, delivered through embedded the services available in the future. For the merchant, there will be a

financial services. greater ability to target consumers through AI-driven data analytics,

allowing them to improve conversion rates because products will

The race to build the future’s super app is underway with the French be pre-matched to consumers that want to buy them.

startup Lydia having onboarded more than 5.5 million customers

to bank, invest, and send money to each other. Tencent and Accel The super app of the future will combine a wide range of payments,

joined Lydia’s Series B and C investment rounds. Since 2013, Lydia banking, credit, investment, and insurance products in a single

has raised over USD 100 million, and its target is to become a platform, allowing users to store important documents and access

financial assistant super app for millennials and Gen Z. Revolut, credit cards, bank details, biometric information, and even medical

Robinhood, and N26 have similar ambitions. records on their smartphones – not a super app but a super wallet.

Super apps and super wallets aiming to reduce online payment

The future of the super app is much more than banking and pay­ friction and increase sales by storing and confirming the customer’s

ments. Looking beyond what Klarna, PayPal, Shopify, Square (or payment credentials and shipping information will come and go,

Block) are building today, the future will be to create an ecosystem based on the consumer adoption. We have already seen the one-

for shoppers and merchants by leveraging data to bring them click checkout startup FAST launch and fail within just a few years.

together through innovative shopping experiences and new Others will likely fail to create the future that consumers want. There is

customer journeys. By smartly using data and analysing spending a clear battleground emerging to provide one seamless app with key

patterns of customers, companies could eventually aim to become financial services needed by mainstream consumers. Bolt, Shopify,

a comprehensive one-stop-shop for consumers in a specific Klarna, PayPal, and Stripe are making this space look extremely

category, such as car or home ownership, travel, insurance, or crowded and could be making it more confusing for consumers

healthcare – operating in a wide range of verticals and providing to manage their lives online. A smart wallet is not smart if it is not

diversified products and services. simple to use.

Walmart has recently shown early signs that it has the intent to

launch a super app through a series of announcements. At the

start of 2021, for example, they announced the creation of a fintech

startup in partnership with investment firm Ribbit Capital, which will

aim to deliver financial services targeted at Walmart’s customers and

Edgar, Dunn & Company (EDC) is an independent global payments consultancy.

The company is widely regarded as a trusted adviser, providing a full range of strategy
consulting services, expertise, and market insights. EDC expertise includes M&A due
diligence, legal and regulatory support across the payment ecosystem, fintech, mobile
payments, digitalisation of retail and corporate payments, and financial services.
edgardunn.com

50 Payment Methods Report 2022 | Payment Methods in Focus

 Oaklen Consulting
Why Mobile Payments Will Improve Consumer Conversion and Consumer Retention

Senior Manager at Oaklen Consulting, François Cortés has developed an expertise on digital wallets
with projects such as Apple Pay for Carrefour in Spain and France, or Samsung Pay for Samsung
Electronics France. He also actively worked on Mobile Ticketing technologies such as Calypso used in
Paris transit network.

François Cortés Senior Manager Oaklen Consulting

Digital wallets had a relatively slow start in Europe, but, their continuous The biggest remaining obstacles to the general adoption of wallets

growth, as well as the added-value services tested, are now showing are:

a true opportunity for several players who are looking to improve their • educating consumers to overcome fears related to security and
consumer conversion and retention. Additionally, there have been privacy: X-Pays are ‘by design’ created to keep payment informa­

developments on the merchants’ side. tion on the device while being handled by traditional payment

processing systems;

Digital wallets in 2022 – a limited adoption, but fast- • a low perceived value compared to the plastic card, and for instance,
growing implementing ‘game-changer’ use cases such as Open Payment

Apple Pay, Google Pay, and Samsung Pay, the ‘X-Pays’, were in the Transit System is key: you always have your phone in your

launched back in 2014 and their adoption has varied depending hand, while your plastic card is in your physical wallet, which makes

on several factors. a very convenient adoption use case.

First, the initial countries’ usage of NFC: in countries such as the Different stakes for involved players
UK, the massive use of ‘Open Payment’ in most transit networks According to their roles, actors are either expecting more retention or

has been a great promoter of mobile wallets. Similarly, countries like conversion thanks to the expanded use of digital wallets. For schemes

Spain where NFC transactions can be done for any amount, with and issuers, the goal is mostly to boost the transactions ratio over

the user entering a PIN for payments above EUR 50, already had cash, while still remaining accessible to consumers. Digital wallets

customers confident to pay by NFC anywhere. On the other side, are seen as daily used apps, which provide a high perceived value

countries like Germany with a low rate of card payments, or France for users, and are integrated within an ecosystem. User retention

with card NFC transactions limited to EUR 50 have struggled at first. remains the main focus, with a great UX to ensure the customer will

remain loyal to the brand for future purchases. This can even go

A second factor is the population targeted by the wallet, and this is further with the ‘X Pay Card’ initiatives, such as Apple Pay Card in

the ‘early adopter’ effect. The more expensive your smartphone is, the US or Samsung Pay Card in the UK and Germany, where users

the more likely you are to have your card enrolled in a wallet. That is enjoy premium offers. ➔

one of the reasons why Apple Pay is the most used wallet today,

while also benefitting from a good customer journey and integration

within the iOS ecosystem.

51 Payment Methods Report 2022 | Payment Methods in Focus

 Merchants are not yet fully embracing digital wallets on their and Contactless Payments on COTS. This version will accept any

ecommerce platforms (or apps), despite evidence that they represent NFC card payment on a standard NFC device, with the PIN entered

a great way to improve users’ conversions. X-Pays are among the by the consumer on the merchant’s device. Large-scale pilots are

few payment methods offering an easy, frictionless customer journey, in progress and Mastercard and Visa expect this technology to

while being SCA-compliant thanks to the delegated authentication increase even more the number of card payments including at small

from issuers. and individual merchants.

What’s next for X-Pays? Retailers will also be able to improve their personal shopper’s

Digital wallets, while being initially focused on payments, will expand customer journeys and even simply rationalise the equipment of

beyond the added services to propose a full wallet digitalisation: their sellers. They will use one ‘super’ device instead of carrying

• loyalty card programmes are fully embedded in the wallet’s two or more dedicated function devices. For instance, you could

proposition. Today, a retailer can prompt a customer to join imagine a transit use case where the controller can both check the

its loyalty programme directly at the POS thanks to the NFC traveller’s ticket validity, and enable ticket purchase through the

technology, which will automatically trigger a message in Apple same device.

Pay, asking the user if they would like to subscribe to wallet’s

programme?’ and add a payment card; Another initiative regards a mix of QR / online payment propositions,

• digital IDs (driving licenses, university cards, etc.) are a reality especially seen in hospitality. With solutions such as Sunday, the

in countries such as the US or South Korea. The EU is currently restaurant can place QR codes on each table, allowing consumers

working with member states to agree on a technical framework to both make their orders, and pay/split the bill before leaving the

to design an EU scheme for those use cases; restaurant, without waiting to be cashed in. This improves both

• Samsung Wallet was just launched and already announced it consumer UX and waiters’ precious time, without affecting the

will support crypto assets, leading the path to new Gen Z habits. overall dining experience.

Mobile payments are also on the merchants’ side Mobile payments are now present in the hands of consumers and

Despite the great potential for digital wallets, the most impactful merchants alike, and it will most likely highly promote consumers’

innovations might surge in the merchants’ area. conversion and retention for the actors involved in the value chain.

New mobile payment methods under merchants’ control

Many different initiatives are underway to provide a more seamless

mobile experience led by merchants.

Tap to Mobile1 allows merchants to directly accept card payments

via their NFC handsets (or ‘COTS’). The ‘ultimate version’ of mobile

payments on COTS will be ready in a few months after the PCI 1 EMVCo terminology (Mastercard: “Tap on Phone”, Visa: “Tap to Phone”).
published its first standards on Software-based PIN Entry on COTS, Tap to Pay by Apple is one example.

Oaklen Consulting (formerly PW Consultants) is an independent consulting firm

specialising in payments that helps today’s and tomorrow’s players to achieve all their
ambitions. Just like that. With 55 consultants, we have been working for more than 20 years
with all the players in the ecosystem (banks, merchants, schemes, fintechs, manufacturers,
etc.) in Europe and around the world to ensure that payment matches the worlds at the

oaklen.eu crossroads of societal, technical, and regulatory issues.

52 Payment Methods Report 2022 | Payment Methods in Focus

 Grab
Kell Jay Lim, Head of GrabFin, the fintech arm of Grab Financial Group, elaborates on the flourishing of super apps and

on-demand payment apps in Southeast Asia.

Kell Jay is the Regional Head of GrabFin, the fintech arm of Grab Financial Group. In this role, he is
accountable for the development and execution of the company’s fintech vision of bringing financial
inclusion to the six in ten Southeast Asians who are underserved.

Kell Jay Lim Regional Head of GrabFin Grab

Southeast Asia is a major and strategic market for

on-demand payment apps. Can you provide our Interoperable QR is crucial
readers with an overview of the size of the market to drive nationwide digital
and what drives the success of these services? payment adoption, with many
Southeast Asia is where we operated since our founding, in 2012.

The region has immense potential, with a 660 million strong

countries in Southeast Asia
population – twice that of the US. Citizens are young and mobile- already implementing this.
first, with over 50% under 30 years old, and the percentage of

households with at least one smartphone is expected to grow to

84% by 2025 from 68% in 2020. this – QRIS in Indonesia, SGQR in Singapore, and DuitNow QR

in Malaysia.

Firstly, the COVID-19 pandemic hastened the region’s digitalisation

wave, and millions of users benefited from digital economy access. What are the consumer payment needs that
In 2020 alone, 237,000 Grab driver-partners transitioned to do GrabPay addresses?
deliveries. In 2021, 680,000 small businesses joined the platform, Short checkout routes mean users get convenience, while mer­

and the number of merchant-partners onboarded to GrabPay grew chants receive boosted conversions. There is no need to download

by 72% year-on-year. a new app to use GrabPay either. Users have the flexibility to pay

now, next month or in interest-free instalments.

Secondly, the pandemic also quickened consumer cashless

adoption. A 2021 Boku and Juniper Research report stated this BNPL is increasingly popular, as nine in ten Southeast Asians do

is the fastest-growing region for digital wallets globally, with new not have credit cards and the payment flexibility is an attractive

payment methods emerging to meet this demand, like Buy Now, proposition.

Pay Later (BNPL).

Robust risk management is vital for BNPL to succeed in this finan­

Thirdly, cashless adoption is robustly supported by governments. cially underserved region. This is where Grab’s proprietary trans­

We work closely with them to use their real-time payment rails to actional data, generated by over 30 million MTUs (Monthly Trans­

move money from bank accounts to the GrabPay wallet account, acting Users, as of Q2 2022), sets us apart. Artificial intelligence and

such as PayNow in Singapore and InstaPay in the Philippines. machine learning help assess who should be offered BNPL, and we

In addition, interoperable QR is crucial to drive nationwide digital set a customised spending limit. This is different from other players

payment adoption, with many countries already implementing who rely on existing credit card approvals from issuing banks. ➔

53 Payment Methods Report 2022 | Payment Methods in Focus

 At the same time, user security must also be a priority. Customers Economic empowerment is what drives most super apps, and cus­­

choosing alternative payment methods should be protected via to­mers should be able to have a say in the economy to keep moving

stringent security measures, like two-factor authentication and real- things forward.

time risk assessment. Successful AI-driven fraud protection should

be led by high-quality data. Our platform enables millions of people each day to access driver

and merchant-partners to order food or groceries, send packages,

What is the added value of GrabPay for merchants? hail a ride or taxi, pay for online purchases or access services such

GrabPay and PayLater started as payment options for Grab services, as lending, insurance, wealth management and telemedicine.

and now they also provide payment solutions to merchants.

To accelerate acceptance, GrabFin has signed partnerships Could you elaborate a bit on the future develop­
with leading global (Adyen, Stripe, Shopify) and regional payment ments for Grab?
platforms (2C2P, AsiaPay, Razer Merchant Services). Moving forward, we will sharpen our focus on helping our driver

and merchant partners - many of whom are underserved by the

Generally, merchants want to know how payment providers can traditional financial institutions today – with their financing and

deliver more value, such as increasing sales or generating demand insurance needs.

at a low cost. With Grab, our partners get more value from our

super app platform. We recently announced integrated partnerships

with Coca-Cola and Starbucks regionally – and with McDonald’s in

Singapore, where consumers can pay for their orders via GrabPay

in-store and in-app, earn GrabRewards, order food or beverages,

and have them delivered through GrabExpress.

For smaller merchant-partners, we provide GrabPay and tailored

BNPL options, including working capital loans, rewards, ads, and

analytics – aiming to help them ride the ecommerce wave and boost

their presence online.

What are, in your opinion, the main features that

make a payments app a super app?
A super app should focus on solving hyperlocal problems. We started

Grab to solve transportation safety in Malaysia – and then we looked

into other local challenges we would be able to solve. Today, our

super app helps drivers access income opportunities, merchants

get tools and insights to build their businesses, while customers

have access to safe rides to their destination.

Grab was founded in 2012 with the mission to drive Southeast Asia forward by creating
economic empowerment for everyone. We operate across the deliveries, mobility, and
digital financial services sectors in 480 cities in eight countries in the Southeast Asia region,
enabling millions to access driver/ merchant-partners to order food or groceries, send
packages, hail a ride or taxi or pay for online purchases – all through a single ‘everyday
everything’ app.
grab.com

54 Payment Methods Report 2022 | Payment Methods in Focus

 Debit and Credit Cards

Size of the market

Debit and credit cards are the de facto backbone of the global payment methods ecosystem. They may vary in popularity or market share

compared to other methods, but as cash loses ground, the first ones to have something to gain are cards – with FT estimating in 2021

a 35% reduction in global cash payments during the pandemic.

The global debit card market size is expected to grow from USD 90.49 billion in 2021 to USD 93.23 billion in 2022 at a compound

annual growth rate (CAGR) of 3%. The global debit cards market size is expected to grow to USD 96.84 billion in 2026 at a CAGR of 1%.

According to ResearchandMarkets.com, the credit and debit card market size varies from West to East. While the APAC region has

been the largest market for credit cards in 2021, Western Europe held the top spot in debit card usage in the past year.

Credit cards are still the bread and butter of the US payments ecosystem, and even with a dip at the beginning of last year, the situation

turned by late 2021. Cited by Insider Intelligence, according to JPMorgan Chase, the US credit card market registered a 19.8% growth

across the two years ending in Q3 2021, while Wells Fargo’s credit card POS volume rose 29.9% over the same period. The Financial

Brand issued a detailed study on the American market revealing that American Express has the highest customer credit card satisfaction

score, followed by Discover and Capital One.

In Latin America, domestic and international credit cards together account for more than one-half of online retail payments in the region,

driven by their high shares in the three largest B2C ecommerce markets – Brazil, Mexico, and Argentina.

Latest developments
Regulation and levelling card fees
Credit cards have had a hard time keeping up with the lower fees of instant payment rails and the promise of A2A payments as a whole.

The three biggest complaints customers had with credit cards were collection issues (32.95%), billing problems (19.38%), and the payoff

process (6.04%), according to WalletHub, cited by the Financial Brand. In the US, the Consumer Financial Protection Bureau signalled

a crackdown on late fees charged by credit card companies, as inflation threatens to increase those so-called ‘junk’ fees levied on

consumers, as per CNBC.

Across the ocean, UK-based Payment Systems Regulator has set to launch two separate market reviews of the fees charged by Visa and

Mastercard. The watchdog alleged that the fees paid by acquirers increased significantly over the period 2014 to 2018, but that ‘a substantial

proportion of these increases are not explained by changes in the volume, value or mix of transactions’.

In May 2022, the Australian Competition and Consumer Commission (ACCC) announced it started legal proceedings against

Mastercard Asia Pacific and Mastercard Australia for alleged anti-competitive conduct. According to the allegations, the global card issuer

substantially lessened competition in the supply of debit card acceptance services between November 2017 and November 2020. ➔

55 Payment Methods Report 2022 | Payment Methods in Focus

 Debit and Credit Cards

Visa, Mastercard, and the stint in crypto payments

Cryptocurrency debit cards are a new trend in the cards industry. Visa launched its first crypto cards in Latin America – and will debut its

new products in Brazil and Argentina via several new partner firms, as per an announcement from June 2022.

In turn, Mastercard has announced it will be expanding its payments network to Web3 and NFTs. The payments system will allow people

to use their Mastercard cards for NFT purchases, whether that’s on the marketplaces of Immutable X, Candy Digital, The Sandbox,

Mintable, Spring, Nifty Gateway, or using their crypto services.

Innovations and product launches

In July 2022, three of the ‘Big Four’ Australian banks – NAB, ANZ, and Westpac – have turned to the dynamic card verification value

(CVV) functionality to combat online payment fraud and boost digital consumer protections. CBA is the only remaining ‘Big Four’ bank

that is yet to introduce a version of a dynamic CVV.

In the same month, Visa partnered with Spain-based fintech Pecunpay to launch a new solution, Visa Direct. With Visa’s global network and

Pecunpay’s licence, customers will be able to use the new Visa Direct both in Spain and throughout the European Economic Area (EEA).

Bigtechs are also diving into the card world, with Google announcing in May 2022 that its Chrome browser offers users the ability to use

a virtual credit card in online payment forms. These virtual card numbers allow people to keep their ‘real’ credit card number safe when

buying something online since they can be easily revoked if a merchant’s systems get hac

56 Payment Methods Report 2022 | Payment Methods in Focus

 Juniper Research
New Card Payment Technologies and the Race to Keep Up with Mobile Payments

Nick Maynard is Head of Research at Juniper Research. His key area of focus is the fintech &
payments area, including embedded finance, open banking, and digital wallets, among others.

Nick Maynard Head of Research Juniper Research

Over the years, payment cards have been a part of the financial lives made in the early phases, the concept is gaining further traction

of individuals and businesses as an end product of complex payment in the market, and we anticipate strong growth, as issuers look to

systems. They also have been instrumental in advancing the under­ differentiate themselves and their offers to users.

lying payments technology and answering customer preferences

and needs. Despite many parties predicting the death of cards with Dynamic CSC/CVV cards offer an alternative
the advancement of digital and mobile payment methods, including Embedded in payment cards as a counter-fraud solution, dynamic

BNPL (Buy Now, Pay Later), payment cards are still prevalent and CSC (Card Security Code)/CVV (Card Verification Value) involves the

are undergoing a significant technical transformation, especially in replacement of the static CVV or CSC at the back of the payment card

terms of infrastructure and authentication systems. Technologies with a randomly generated number at time intervals. This elimi­­nates

such as contactless, biometric cards, and even digital issuance via the risk of any static CVV information being stored or compromised

virtual cards are changing the customer proposition. and can greatly reduce the risk of CNP (Card Not Present) fraud, by

also offering the ability to include such dynamic data in the authori­

Biometric payment cards advancing new use cases sation message sent to issuers. The code appears at the back of the

Emulating biometric authentication largely utilised in smartphones card on a small ePaper screen by using eInk. Issuers such as Visa

and other mobile devices, biometric payment cards eliminate the and Mastercard have created algorithms for dynamic CVV generation,

need to enter PINs for payment transactions as a unique identifier. with which leading manufacturers comply.

Biometric cards feature a fingerprint sensor which stores a user’s

reference data in the card’s secure chip. This sensor is powered by These developments are important because they allow issuers to

the chip, while the card itself is powered by the POS terminal by take concrete steps to tackle CNP fraud, which has been difficult to

charging the chip. No further upgrades to terminals by merchants identify, as payments have gone increasingly digital. However, the

are needed to accept biometric payments. This critical element here increased cost per card means that this will indeed remain niche

is that this enables cards to have unlimited contactless transaction and will require further trials to demonstrate the value proposition

values, allowing them to finally match the level of convenience that to users.

mobile payments offer.

Metal cards and the importance of the premium
Biometric payment cards were first deployed in the UK by Natwest in experience
2019, in partnership with Mastercard and Gemalto (now Thales), as Metal cards are tougher and more stylish alternatives to plastic

part of a trial with a limited number of customers. More recently, in payment cards, which are often presented as ‘premium’ to customers.

June 2021, BNP Paribas launched its biometric cards offer to its These cards are specifically designed to offer a superior look and

customers with Thales, after deploying successful trials since 2020. feel compared to their plastic counterparts and can be produced in

These deployments show that, while progress has undoubtedly been various grades and styles, as required by issuers. ➔

57 Payment Methods Report 2022 | Payment Methods in Focus

 To accelerate their uptake, these cards need to be better marketed to Ultimately, it is the responsibility of card technology providers to

wider customer segments, outside of top tier accounts. Issuers need guide issuers through the process of updating their cards, identif­ying

to work out how to effectively sell these cards at higher price points where value can be added, and how to drive their brands forward

to a wider audience within their client bases, or they will fail to achieve best. Card manufacturers need to keep their portfolios broad enough

significant revenue from this area. to offer the capabilities issuers may need but detailed enough to

match the very specific requirements issuers may have. If card manu­

Metal cards also face a significant challenge from other card types, facturers can get this balance right, they can unlock significant

which can also offer a premium feel, such as eco cards featuring recycled revenue.

content, or wooden cards. Metal cards must therefore be paired

with attractive user account features, rather than just relying on

their premium nature alone.

The future of payment cards

Ultimately, there is no right answer when it comes to the future of

payment cards – no one-size-fits-all approach will work. However, what

we are seeing is a multitude of right answers, for different demo­

graphics and customer types. Biometric cards, metal cards, and

dynamic CVV cards all have a role to play, but targeting these solutions

to the right users will be a challenge that will involve partnerships

with card issuers.

Figure 1: Global card technology revenue for card

manufacturers (USDm), 2022 & 2026

Source: Juniper Research

Juniper Research specialises in providing best-in-class market research across

mobile, online, and disruptive technologies. We offer in-depth reports, forecasts, annual
subscriptions, and consultancy. Our global clients include banks, payment providers and
many others. To find out how we can help you, contact info@juniperresearch.com or
visit www.juniperresearch.com.
juniperresearch.com

58 Payment Methods Report 2022 | Payment Methods in Focus

 Smart Payment Association
Biometric Payment Cards: The Next Evolution in Secure Contactless Transactions

With over 20 years’ experience working in the payments industry, Andreas Strobel has been an
active participant of SPA since 2006. In addition to his current role as SPA President, he acts on behalf
of SPA as a member representative at the European Cards Stakeholders Group (ECSG) in Brussels
where he was also previously part of the Audit Committee

Andreas Strobel President Smart Payment Association

Andreas Strobel, President of the Smart Payment Association, mean the market demand is set to experience a significant and

explores how the biometric payment card is transforming how rapid growth.

cardholders authenticate when paying.

Consumer demand is high
While biometric authentication technology has been around for The COVID-19 pandemic has accelerated the adoption of contact­

over two decades, it has taken some recent developments to make less payments by consumers who now want low or no-touch inter­

fingerprint verification for card-based payments a workable reality. actions at the point-of-sale. Meanwhile, familiarity with fingerprint

It was only with emergence of ultra-thin sensors that could be authentication technologies that make it quick and easy to unlock

embedded into smart payment cards, together with the required smartphones has fuelled the growth of consumer demand for bio­

microprocessors, that it finally became possible to design biometric metric payment cards that offer the same frictionless user experience.

cards that would enable on-card fingerprint enrolment and verifi­

cation. Indeed, according to a recent Visa study conducted on US con­

sumers, 86% of respondents were interested in using biometrics to

This breakthrough led to Absa piloting the world’s first biometric card verify identity or make payments. The same research also found that

in South Africa, in 2017. In the following year, the Bank of Cyprus more than two-thirds of consumers prefer to pay with contactless

piloted the world’s first biometric dual interface card for both contact cards rather than using a digital wallet on their mobile device.

and contactless payments. Throughout the pilot programmes, card

payments could be made using fingerprint verification to authenticate With so many consumers ready and willing to embrace biometric

a transaction. contactless payment cards, banks are responding to this pent-

up demand. 2021 saw first major banks undertaking large-scale

Since then, improvements in the speed and accuracy of biometric commercial deployments with their rollouts of biometric cards to

technologies, together with manufacturing refinements, have helped customers.

reduce the per-unit production cost of biometric cards. These changes,

combined with the standardisation of EMV and ISO certifi­cations, Delivering reassurance and convenience for
have prepared the way for the mass commercial deployment of consumers
biometric cards. For many consumers, the top benefit offered by biometric payment

cards is the convenience of being able to make fast and secure

Today, the 20 biometric card pilots currently underway around contactless payments, with no limit on the maximum amounts

the globe, as well as the first commercial deployment by BNP currently imposed by regulation. ➔

Paribas, followed by product launches of Crédit Agricole and Bank

Pocztowy, indicate that the momentum created by these projects

59 Payment Methods Report 2022 | Payment Methods in Focus

 In other words, using biometric payment cards enables consumers Looking to the future
to authenticate higher payment amounts by means of fingerprint Fully operable with today’s payment POS terminals that accept

verification, eliminating any requirement to insert their card or enter EMV-based contact or contactless cards, biometric payment cards

a PIN when paying for larger transactions at the POS. offer a convenient and easy-to-implement solution to verify contact­

less payments for today’s consumers. Delivering against consumer

Alongside this improved user experience, biometric payment cards demands for reduced physical interactions and faster payments at

provide a deep reassurance that contactless cards cannot be the POS, biometrically enabled payment cards are now transforming

debited without their consent and that lost or stolen cards cannot how users can seamlessly undertake the authentication of their

be used fraudulently. The fallback of being able to use a PIN, should everyday payments.

a sensor be unable to read a fingerprint, also gives consumers the

confidence of knowing they will get to use their card, regardless of As central banks gear up to issue digital currencies, biometric card

the circumstances. authentication may also enable cardholders to securely pay using

digital and cryptocurrencies.

Finally, for many consumers, a biometric smart card containing a

fingerprint that is stored and verified in the chip delivers an improved

perception of security, compared to using their mobile phones,

which are often viewed as being prone to malware attacks.

How it works
When users receive a biometric payment card, they will first need

to register their fingerprint into the card. This enrolment process

can be carried out at home, using a sleeve device that is shipped

with the card, or cardholders can visit a bank branch. At the time

of enrolment, no biometric details are ever transmitted online or

to any other device other than the card itself. This implementation

approach delivers full compliance with GDPR mandates on the

processing of biometric data.

Once the enrolment is completed and the fingerprint in the bio­metric

card has been activated, the fingerprint data remains securely

stored in the card’s chip. When cardholders want to make a pay­

ment, they simply pass their card near the contactless payment

terminal and place their finger on the sensor of their card to perform

the biometrics verification.

The Smart Payment Association (SPA) is the trade body of the cards and mobile payments
industry. SPA addresses the challenges of a fast-evolving payment ecosystem, promoting
innovation, security and interoperability of payment instruments. SPA works closely with
regulators and standardisation bodies, offering leadership and expert guidance to help its
members and their customers adopt new payment technologies of today and tomorrow.
smartpaymentassociation.com

60 Payment Methods Report 2022 | Payment Methods in Focus

 Cryptocurrencies

Size of the market

Chainalysis’ latest analysis of geographic trends in cryptocurrency adoption and usage offered data explaining that global adoption of

cryptocurrency payments has grown by over 2,300% since Q3 2019 and over 881% in 2021.

The blockchain market size for retail alone is set to reach USD 4.6 billion by 2028, as more industry players make an effort to align

their offers with market demands. More in-depth, Coindesk estimates that big corporations will be joined in this race in a significant

amount by SMEs diving into the crypto pool, considering there has been a global 75% increase in customers and suppliers asking for

cryptocurrency as a payment option.

When it comes to the array of payment methods at the checkout, crypto has seen a radical change in optics and trust from the greater

public and retailers. With increased focus on security, authentication protocols, and a recently fuelled mobile payments popularity, experts

estimate crypto to become a payment method as common as credit cards.

Central, Northern, and Western Europe stand at the top of the charts when it comes to global crypto adoption, receiving over USD 1 trillion

worth of cryptocurrency over 2021 (25% of the world’s total). Europe is followed by North America, having received over USD 750 billion

in cryptocurrency between July 2020 and June 2021, as per Chainalysis rankings.

In spite of the spurt in adoption and technology keeping up with demand, the rest of the world is divided between legalisation, country-

wide bans (in some Asian countries), or some governments’ logistic or regulatory incapacity to keep up with the organic growth of their

markets. Several countries in emerging markets, including Kenya, Nigeria, Vietnam, and Venezuela register significant transaction

volumes on peer-to-peer (P2P) platforms when adjusted for PPP per capita and internet-using population.

Latest developments
Local and global regulation concerns
Starting from the top down, the world has been trying to cut a path for crypto to find its way among legitimate and safe payment methods

in the last year – which was affluent in crypto regulation news. The World Economic Forum’s Digital Currency Governance Consortium

(DCGC) came out in July 2022 with research and analysis of the macroeconomic impacts of cryptocurrency and fiat-backed stablecoins,

signalling a ‘timely and precautionary evaluation of the possible macroeconomic effects of cryptocurrencies and stablecoins and

corresponding policy responses’.

While the EU launched the Markets in Crypto-Assets (MiCA) provisional agreement in June 2022, the US saw the release of the

Framework for International Engagement on Digital Assets. Among the main purposes of both these large-scale regulatory frameworks

is to protect consumers, investors, and businesses working with crypto, while mitigating risk and supporting the responsible development

of digital assets. ➔

61 Payment Methods Report 2022 | Payment Methods in Focus

 Cryptocurrencies

Between bans and legalisation

While some countries trouble themselves with finding ways to make crypto safe, others do not take any risks. In July 2022, two major

markets started discussing complete bans. The Reserve Bank of India is proposing strong regulation or a total ban of cryptocurrencies

in the world’s second-largest Internet market. Furthermore, India already proposed a 30% tax on crypto and NFTs incomes in February

2022, giving bankers, traders, and financial institutions mixed feelings regarding its onboarding with crypto assets. In the same month,

Russia supported the adoption of a bill banning payments for goods and services using digital financial assets (DFAs) within the country.

On the opposite side of the coin, following the ongoing war in Ukraine and the aid received by the Ukrainian government in cryptocurrencies,

the country’s President, Volodymyr Zelenskyy, has legalised the use of crypto.

Shopping with crypto in 2022

While Meta announced in July 2022 that it will discontinue its digital wallet for cryptocurrencies, Novi, announcements regarding big

brands and ecommerce platforms and marketplaces accepting crypto payments in their stores or networks have been more abundant

than ever before.

From Shopify announcing in May 2022 that it will enable Crypto.com Pay within their network to eBay and Farfetch accepting crypto

in their merchant ecosystems, the news did not stop there. Luxury brands such as Balenciaga or Gucci also joined ranks with either

Bitcoin or a wider range of digital coins as valid payment methods in their stores.

Upping the ante in terms of the latest trends, Japanese retailer Rakuten has announced the launch of an NFT marketplace, which will

allow users to not only purchase NFTs, but also sell them in a range of areas, including music, sports, entertainment, and anime.

Investments
Crypto-payments company MoonPay (backed by a slew of famous investors) has raised approximately USD 87 million in its latest

funding round in April 2022. Late in 2021, the startup raised USD 555 million in a Series A round that valued the company at USD 3.4 billion.

At the same time, crypto platform Binance.US raised more than USD 200 million in its first funding round, valuing the company at USD

4.5 billion. Binance.US will reportedly use the new funds to develop new products and services, as well as kickstarting ‘educational

initiatives to bridge the knowledge gap’.

62 Payment Methods Report 2022 | Payment Methods in Focus

 COINQVEST
Extend Your Payment Rails with Cryptocurrency Checkouts Now

Stefan is co-founder of COINQVEST and has more than 20 years of experience in building and
managing digital business models in the financial services and B2B sector. He strongly believes in the
future and benefits of DeFi, financial inclusion, and programmable money.

Stefan Schneider Co-Founder COINQVEST

The current status of cryptocurrency payments

There is a famous story told by Aesop about the industrious ant.

It worked to build its store of rations, for when the bitter winter months

came, there was little forage left to gather. The jolly grasshopper,

content to live in the now, lacked the foresight to prepare for what

the future might bring.

Whether in life or business, we are taught to be inspired by the ant,

to plan and prepare for the future. The analogy isn’t perfect, but it

does highlight the value of looking ahead. In creating the roadmap

for your business, it is wise to make decisions based on what you Here are more reasons:

expect to happen. For online enterprises and payments, we can 1. Strong interest among Millennials and Gen Z (1995-2009) who have

clearly see the growing trend of cryptocurrency on the horizon. grown up with digital money, wallets, NFTs on their smartphones,

and are Internet natives and gamers. For them, exploring crypto is

At COINQVEST, we think that merchants can no longer ignore a natural extension of their realities, an opportunity, and no digital

cryptocurrencies as a payment option. More and more businesses knowledge barrier hinders them to do so.

and payment service providers (PSPs) have integrated our solution 2. The adoption of crypto and stablecoins is becoming mainstream.

directly into their checkout processes or started strategic projects Mainly as an investment opportunity, however, there are more and

to evaluate the benefits. We have already begun to see an increase more use cases where crypto gets on-ramped through crypto

in inquiries from household brand names, as they rush to jump on exchanges, salaries paid in crypto or stablecoins, collections of

the train and gain an early advantage. NFTs, staking or reward programmes, values which are ultimately

available to spend on products and services.

This shift is also supported by research showing that more than 300 3. Geographies that experience high inflation rates drive use cases

million people worldwide hold crypto. Regarding crypto payments, and adoption, which results in more funds being on-ramped, conv­

40% of Gen Z globally plan to make purchases using crypto in 2022. erted, and available for making purchases. ➔

Therefore, now is a great time to evaluate what it takes to implement

crypto checkout options into a company’s payment infrastructure

and learn how blockchain-based payments can help businesses

thrive in the Web3 economy. Run a trial project, work on implementa­

tion, and be at the forefront of crypto adoption.

63 Payment Methods Report 2022 | Payment Methods in Focus

 Why should my business accept cryptocurrency? COINQVEST Brand Connect – white-label solution for
Each day, it becomes more evident how cryptocurrency is beneficial hosted checkouts
to businesses. If you’re a company outside of the crypto space, Brand Connect customises COINQVEST’s hosted checkouts to your

you can demonstrate your willingness to understand the needs and own brand, web domain, custom logo, images, and fully skinned

norms of the demographics encompassed within. Develop trust and UI. It can run on coinqvest.com or on your own web domain with

brand loyalty by showing you ‘get’ these young and tech-savvy a simple docker container deployment.

consumers. Research also shows consumers who pay with crypto

tend to have higher shopping cart volumes and lower abandonment COINQVEST Self-Hosted Checkouts – white-label API
rates. The white-label API allows for deep-level integration and

customisation of your payment processes. Highly useful for payment

Apart from attracting new clientele, cryptocurrency payments have service providers to extend their existing payment infrastructure

the benefit of being faster in settlement with no chargebacks, more with self-hosted and self-branded cryptocurrency checkouts.

secure and transparent with blockchain technology, and easy on

fees and exchange rates, when compared with credit card payments COINQVEST sees the change that is coming. Like Aesop’s prag­

and other existing payment methods. matic ant, you can prepare your company for what is upon us. We are

here to help your business be ready now with the tools you’ll need to

COINQVEST helps merchants to get paid and stays updated on the navigate the tricky, but inevitable world of cryptocurrency payments.

most recent regulatory requirements. And despite what you may

hear in the news, crypto volatility with regards to payment isn’t an

issue when properly handled. We work hard to ensure our crypto

payment service is reliable and compliant.

How do I get started with cryptocurrency payments?

COINQVEST provides various levels of integration for merchants

and PSPs to add cryptocurrency payments to their checkout

processes, in addition to existing payment methods like credit

cards or direct debit:

COINQVEST Hosted Checkouts

COINQVEST’s hosted checkouts are the easiest and quickest form

of implementation, providing the full functionality of our platform

out-of-the-box and can be added by SDKs, shopping cart plugins,

or API.

Click here for the company profile

COINQVEST’s mission is to enable merchants to thrive in the Web3 economy and help
them grow their business with cryptocurrency payment processing. COINQVEST is
a reliable partner for enterprises and enables them to embrace DeFi payment solutions
through various levels of integrations, from all-inclusive hosted checkouts to customisable
white-label API.
coinqvest.com

64 Payment Methods Report 2022 | Payment Methods in Focus

Emerging Payments Innovation
and Habits

• Latest trends in ecommerce and the future of payments

• Live commerce
• Real-time payments and customer experience
 BLIK
We talked with Dariusz Mazurkiewicz, CEO of Polish Payment Standard at BLIK about the company’s developments, plans and

trends in ecommerce.

Dariusz has been the CEO of Polish Payments Standard (Polski Standard Płatności – PSP, which
runs the popular, account-based mobile payment system BLIK) since 2017. Between 2015–2017,
he acted as the Vice President of the BLIK Management Board, responsible for product and partner
development of the system. His previous experience includes the ecommerce and media industries.

Dariusz Mazurkiewicz CEO BLIK – Polish Payments Standard

What are the new trends in ecommerce and how do Can you develop on the concept of ‘Q-commerce’
you think BLIK can shift to meet the latest require­­ and how do you think it can further change the
ments of consumers? con­sumers’ behaviour when it comes to online
In recent years, we have witnessed a radical change in the consumers’ shopping?
attitude. They have become enthusiasts of convenience and speed – The logistics area is currently undergoing a dynamic transformation.

both factors being a necessity in today’s ecommerce market. This is In parallel, customer expectations of fast delivery are increasing.

mainly a consequence of the COVID-19 pandemic, which has Q-commerce allows for placing an order online and having it delivered

shifted a large part of the in-store transactions to the Internet, and to your home in the shortest possible time. In some areas of the

the development of fast deliveries. market and for some companies, this could be as fast as 10 minutes.

Retail chains throughout Europe are already operating in this mode.

BLIK is the most popular way Both established players and startups have noticed a niche in

to pay in Poland. We believe that the market and are now investing in q-commerce. The following

BLIK can become one of the most months will bring the development of services in the ‘express same-

day delivery’ mode. Customers of large retail chains can expect

significant payment platforms with purchases made in their mobile applications to be delivered within
a pan-European reach. a few hours – as it is already the case with small ‘corner stores’.

When it comes to payments, immediacy will become the standard.

Deferred payments are also booming and represent one of the To put it briefly, online retailers need to consider the entire shopping

fastest-growing trends in global ecommerce. The high consumer experience - from generating interest in the product, to making the

expectations in this area means that an increasing number of online customers’ favourite payment methods available in-store, to delivery.

sellers are now offering this type of solutions to their customers. BLIK payments fits into this trend by allowing customers to pay

These changes also have implications for BLIK and its development. quickly, easily, and securely. ➔

We are consistently developing our portfolio and we are currently in

the process of implementing BLIK deferred payments. Although the

BNPL market in Poland is in an incipient phase, we already

acknowledge the great potential this payment method has and

that is why we have made deferred payments available to our users.

66 Payment Methods Report 2022 | Emerging Payments Innovation and Habits

 What opportunities can the post-pandemic world What does the future of payments look like for
bring to the overall digitalisation process of Poland BLIK? What can customers expect from the
especially when it comes to online and contactless company in the next 12 months?
payments? How can BLIK benefit from them? We still see immense potential for further growth. We now focus most

The COVID-19 pandemic has significantly accelerated the trends we of our attention on expanding the range of services and consistently

have seen over the past few years when it comes to the development increasing the number of active users to further strengthen our

of mobile payments. One is the dynamic development of the market position in the coming quarters. The increase in the volume

ecommerce market, another one is the digitisation of the customer- of transactions, which we observed in 2021, but also at the beginning

bank processes, which can be seen in the increasing popularity of of this year, allows us to believe that we are on the right track to

mobile banking. What initially seemed to involve long-term strategies achieving our goal.

for organisations suddenly turned out to be the only development

path to follow. Increasingly, consumers have also started paying In the upcoming months, we plan to concentrate on the previously

with their mobiles. Currently, the immediacy of transactions is also a mentioned deferred payments and consider our company’s

standard. All these directions are radically affecting all participants in development in foreign markets. Due to our infrastructure, BLIK

the e-commerce market. This determines the development of BLIK payments can be easily accepted and integrated into numerous

and will allow us to create solutions that may turn out to be a market markets all over the world.

hit in two or three years.

We have also tailored an offer for banks which will allow us to

The market for deferred payments is diverse and significantly increase transnationality in the mobile banking sector. We

growing rapidly. How do you see mobile payments reckon BLIK has a high potential to transform into a pan-European

and BNPL combining? payment system, as it features an inclusive business model where

BNPL`s integrations with smartphones provide customers with the we welcome banks, card companies, P2P and BNPL providers

best experience, guaranteeing convenience and a fast payment altogether.

journey. BLIK currently has over 70% share of the online payments

market in Poland and offers a boast of a friendly process of service We have the know-how in building various business alliances, thanks

activation, while serving a large group of users who complete an to the formula in which the Polish Payment Standard operates.

average of 2.7 million BLIK transactions each day. This means BLIK can offer ready-made payment solutions, act as a platform,

that we can confidently compete with other solutions available on or develop a strong cooperation with local institutions. All of this

the market. Deferred payments using a mobile phone application means that BLIK can become a European payments solution. Polish

represent a service that interests our customers, and BLIK has the Payment Standard will focus on this direction in the coming months.

potential to meet their expectations.

Click here for the company profile

BLIK is a mobile payment system. It enables ecommerce payments, POS payments

(including contactless payments), ATM cash withdrawals, and mobile P2P. BLIK has a
dominant share of the mobile payments in Poland. It has won many prestigious awards,
including the title of ‘FinTech of the Year’ in 2022 by Cashless.pl.
blik.com/en

67 Payment Methods Report 2022 | Emerging Payments Innovation and Habits

 Dr2 Consultants
The Present and Future of Ecommerce – Live Commerce

Li-Xiong Chu is a Dutch-born Chinese who can communicate in English, Dutch, and Chinese.
Focusing on the global sustainability dialogue to create more understanding, he advises companies on
how to navigate the China market in this regard. Specific interest in digital marketing and ecommerce
related projects.

Li-Xiong Chu Director & Senior Advisor Dr2 Consultants

Live shopping is far from being a new phenomenon. Home live Future trends
shopping through television broadcasting was a multibillion-dollar Key Opinion Customers (KOCs). Although the use of Key Opinion

industry. You may remember those as tell sell channels, amongst Leaders (KOCs) is commonly implemented, it is also very costly.

others. And, although they do still exist, with the rise of ecommerce, The use of celebrities does get a lot of traffic and engagement, but

live shopping has developed into something called live commerce. it does not always outweigh the investment needed. In addition, as

live commerce will become increasingly important, it will probably

So, what is live commerce? Essentially, it refers to the use of not be limited by certain campaigns only. KOCs are customers that

live streaming within ecommerce or social commerce channels. can share their experiences with the brand and products, which

Products are presented and sold online through live broadcasting can also provide a more grounded approach and more sustainable

and customers can interact or engage in real time. It is a more in terms of costs.

integrated version of live shopping into the current digital landscape.

The popularity of live commerce can be highlighted by the rapid Product demonstrations and interactive Q&A. Fashion and cos­

developments it has made in the China market in recent years. metics are markets in which live commerce has seen great inte­

Currently, it is already unthinkable not to incorporate live commerce in gration. The brand and products can be presented and demonstrated

any marketing and sales strategy in China. Recent statistics indicate live and customers can engage directly by asking questions during

that 10% of total ecommerce GMV is generated by live commerce, the live shopping session, for example. Other industries that will

90% of the biggest brands hosted live commerce events during increasingly implement live commerce are the automobile and real

Singles’ Day (the biggest ecommerce festival), and 300 million of the estate markets.

platform users (Tmall / Taobao) watched these live streams during

the festival. Commonly, these live commerce events are done using Omnichannel integration. At the moment, live commerce is usually

so-called Key Opinion Leaders (KOLs). platform-specific. In order to maximise results, implementation across

different platforms and channels will become increasingly interes­

Live commerce is also becoming bigger in the rest of the world. ting. In addition, providing an integrated offline-to-online or online-

Amazon, Shopify, Facebook/Instagram, and YouTube provide an to-offline experience will be an important factor in which we could

experience that combines social networks with ecommerce through see developments. ➔

live streaming. However, the pace of development may not be as

fast in China. Nevertheless, the live commerce market in the US

is expected to surpass USD 25 billion in sales by 2023, whereas a

couple of years ago, in 2020, it constituted USD 5.6 billion. McKinsey

even estimates that, based on China’s developments, live commerce

sales could even account for 20% of all ecommerce sales by 2026.

68 Payment Methods Report 2022 | Emerging Payments Innovation and Habits

 One-on-one interactions – a personal online shopping assistant. There is, of course, a lot to take into account for an effective

Especially the luxury segment will be looking into implementing ecommerce strategy. Different platforms, different channels, different

creative iterations of this. It will provide the online exclusivity that audiences, different technology and functionality, and different

this audience is frequently used to in brick-and-mortar boutiques. regulatory frameworks are all important factors to navigate around

But in the long term, even for a broader audience, it can become for different markets. But, as live commerce is becoming increasingly

interesting. Effective time management and scheduling of these popular, there will be developments that see these elements moving

roles could increase engagement and subsequently sales conversion. towards each other, no matter the location. And, if there is one thing

that the recent pandemic has thought us, a life without ecommerce

Metaverse, VR & AR integrations – especially interesting in the is unthinkable, where live commerce developments and trends will

beforementioned automobile and real estate markets for example. be an exciting area to keep our eyes on.

The Metaverse, Virtual Reality and Augmented Reality will enable

the presentation of more products in an interactive way. In addition, Some additional sources:

the pandemic has imposed ongoing travel restrictions, so creative https://time.com/6115848/singles-day-2021/

integrations for the travel industry could also be an interesting trend https://jingdaily.com/viya-austin-li-singles-day-alibaba/

going forward. https://www.weforum.org/agenda/2021/05/china-future-social-

commerce-content/

Group/bulk buying. Most of the world has more or less accepted https://www.digitalcommerce360.com/article/us-ecommerce-

living with the new Omicron variant of COVID-19 and has returned sales/

to ‘normal’. However, in China, the policy around ‘dynamic 0 covid’

has put strict lockdowns around the country, with the one in Shanghai

being the most dramatic of all. As this has put constraints on the

domestic ecommerce and logistics infrastructure, a new phenomenon

has arisen: the ‘group buy’ initiatives. Although currently developed

out of necessity, it has the potential of becoming a remaining trend.

It can provide businesses with bigger orders, and, simultaneously,

time convenience and a better deal for the customers.

Dr2 Consultants is a strategic consultancy network that operates at the intersection

of corporate communication and public affairs, with offices in The Hague, Brussels,
Copenhagen, New York, and Shanghai. All offices within the network facilitate public-
private cooperation in sustainability-related areas such as the energy transition and green
commerce & logistics.
dr2consultants.eu

69 Payment Methods Report 2022 | Emerging Payments Innovation and Habits

 Celent
Gareth Lodge, Principal Analyst, Global Payments, at Celent, talks on the role of real-time payments in strengthening customer

experience.

Gareth Lodge is Principal Analyst, Global Payments, at Celent. He’s a leading expert on bank payment
processing; payment networks and infrastructures; and real-time payments, a topic he has been
active in since 2006. Prior to Celent, Gareth worked for Secura Monde International, TowerGroup, and
VocaLink Ltd.

Gareth Lodge Principal Analyst, Global Payments Celent

How did the COVID-19 pandemic change the out­ Secondly, banks must recognise customers’ interest in real-time

look for payments? payments. If a customer’s bank or credit union doesn’t offer real-

When the pandemic hit, the industry had to pivot to a new normal time payments, the customer will go where they can access them.

overnight, as customer needs and preferences changed. Now, as A clear example is Zelle, where volumes grew by 49% in 2021,

we emerge from the pandemic and look forward, banks must be processing approximately 2 billion transactions, with 850 active

prepared to rapidly meet changing needs – a new unknown, as it participating financial institutions, yet had users from more than

were. As found in Celent’s ‘The State of the Nations for Payments 7,000 FIs. That roughly translates into more than 6,000 banks not

Modernization’ report, 83% of banks believe the pace of change serving their clients.

from regulation will increase, all while banks face growing

competition from non-banks at the expense of banks. In payments, Thirdly, the key to success in making money from real-time pay­

banks must recognise customers’ interest in real-time payments ments is explicitly positioning them to customers. Banks need to

and make them part of their digital toolkits. make clear the benefits of real-time payments, and therefore why

businesses will want to adopt them – and, of course, pay for them.

Globally, the most successful banks in real-time payments are those

Banks must recognise that have left nothing to chance.

customers’ interest in real-time

How can real-time payments deliver value to cus­
payments. tom­­ers?
Much of the value of real-time payments comes from their efficiencies.

These are provided by a few key features.

Today, real-time payments are clearly a global success, present in

more than 50 countries and the fastest growing payment type with Many real-time payments are irrefutable once they leave the sending

volumes globally growing by 39% in 2020. bank. With irrevocable, good funds, the recipient can use the payment

when they see it. This offers a more streamlined experience than other

Customers want real-time payments functionality. payment types that may be cancelled, recalled, or reversed. This can

How can banks embrace the opportunity? also accelerate working capital by days – particularly valuable for

First, banks need to believe there is an opportunity. In some coun­ small businesses. ➔

tries, notably the United States, banks often don’t see the benefit

of offering real-time payments, despite their clients deman­ding it.

Yet, offering real-time payments can help deliver the expe­rience that

will attract and retain customers.

70 Payment Methods Report 2022 | Emerging Payments Innovation and Habits

 Real-time payments also allow payments to be made, and impo­ Another important use case is instant banking. More and more

rtantly, received, at any time, 24/7. This improves on card payments, banks make instant loan decisions, but paying the loan doesn’t

where most merchants don’t get the full benefit of the transaction happen as quickly, leaving customers waiting for funds. Real-time

until it is paid into their account, often days later. payments enable the entire loan process in minutes. Not only is this

more efficient for the bank, but it also creates an easier and more

Also, real-time payments are a single message that can facilitate valuable process for customers, improving the overall experience.

greater levels of automation and speed throughout an entire trans­

action, using APIs that can be embedded in a business value chain How can banks improve their presentation of real-
to drive everything from order placement to payment, release of time payments?
goods, and shipping, for example. Banks need to have the mindset that real-time payments are a

product worth managing: engage customers by making the features

What are some noteworthy use cases for real-time and benefits clear; highlight how real-time payments differ from other

payments? payment types; illustrate the use cases for real-time payments;

Leading banks have hundreds of use cases, so these really are emphasise why those differences benefit customers and deliver

noteworthy ones! Many use cases are based around the facets of value.

the real-time payment as they aren’t ‘just’ a faster ACH. They can

offer greater certainty than other payments. This is clear when selling Banks also need to ensure that the experience of using real-time

high-value goods, where it’s risky to release products until funds are payments is seamless and easy. Communicating this requires thorough

guaranteed. In the case of a used car sale, for example, most forms evaluation of the customer experience – and how that experience

of payment are expensive, risky, and slow. Real-time payments, on may be unique for different customers and occasions.

the other hand, deliver funds into a dealer’s account, no matter the

day or time, helping to close the sale when convenient for buyer and By considering and communicating the overall value of real-time

seller, and enabling the seller to buy more stock instantly. pay­ments, banks can tap into opportunities presented by them.

Importantly, these include reducing customer churn and the ability

Real-time payments also offer process improvements through greater to win over customers from other financial institutions.

efficiencies. At a quick-serve restaurant, with staff on varying shifts,

the owner typically pays staff biweekly (not preferred by the workers

who need funds faster) or with cash (not preferred by owners,

who’d need to calculate shifts and keep cash on-hand for the pay

envelopes). Instead, banks can support a timekeeping solution that

triggers real-time payments to employees as soon as they end their

shift.

Celent is a research and advisory firm dedicated to helping financial institutions formulate
comprehensive business and technology strategies. For over 20 years, Celent (part of
the Oliver Wyman Group, a wholly-owned operating unit of Marsh McLennan) has helped
senior executives make confident decisions around technology strategies to execute
at scale.
celent.com

71 Payment Methods Report 2022 | Emerging Payments Innovation and Habits

Optimising the Checkout Process:
How to Win at Conversion and
Retention

• APM acceptance
• Consumer payment expectations
• Merchant services
• Payment orchestration
• Local payment methods
• The merchants’ perspective on optimising the payments checkout
 Merchant Risk Council
The Unexpected Results of Changing APM Acceptance Rates

Julie Fergerson Leo Parrill

CEO Content Manager
Merchant Risk Council Merchant Risk Council

Julie Fergerson, CEO of the Merchant Risk Council, has 25+ years of experience developing, delivering, and promoting
Internet-based technologies. Leo Parrill has extensive experience with content marketing and copywriting in the payments,
technology, and gaming industries.

As ecommerce continues to expand in almost every market, it’s no The data also highlights which alternative payment methods

surprise that alternatives to traditional payment methods continue to merchants are adopting, and why.

proliferate. Innovation is a critical component of staying competitive

and offering new ways to pay continues to be a strong draw for new Most popular APMs among merchants
customers, and an effective tactic for merchants to increase revenue. According to the report, the fastest-growing payment methods among

While experimentation with payment methods has always been an merchants globally were third-party payments (e.g., crypto­currency),

integral component of ecommerce, the last decade has seen explo­ Buy Now, Pay Later (BNPL), digital wallets, and mcommerce solu­

sive expansion in the Alternative Payment Method (APM) space. tions. Most merchants currently accepting these methods added

The COVID-19 pandemic and associated lockdowns also caused a them in the twelve months prior to responding to the survey.

substantial increase in the volume of new consumers, which further

accelerated the adoption of APMs. As APM offerings become more Third-party payments like cryptocurrency had significant growth,

ubiquitous, it’s interesting to examine which payment methods mer­ with 30% of merchants now accepting cryptocurrencies, and 22% of

chants are choosing to adopt, and why. This data provides clarity into those merchants implementing acceptance in the last twelve months.

the present and potential future of payment acceptance in global

ecommerce markets. Several market segments, such as gaming, are seeing significant

transaction volume move toward cryptocurrency, bolstered by

The drivers of APM adoption the proliferation of NFT marketplaces, and blockchain-powered

To begin, it’s useful to understand why merchants might move toward expe­riences. ➔

accepting new payment methods in the first place. Data from the

2022 Payments and Fraud Report released by the MRC, Cyber­

source, and Verifi, provides important insights supplied by 1,060

surveyed ecommerce merchants across a variety of locations

and verticals, at the end of 2021. These metrics offer a robust

and compelling portrait of merchant behaviour over the last year.

The survey results contained in the report point to considerations

such as improving the customer experience, researching new cus­tomer

segments, facilitating access to new markets, and a continued

move toward mobile payments, as important drivers behind the

increase in new payment method acceptance.

73 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 While the future of cryptocurrency is still somewhat opaque due to According to the 2022 Payments and Fraud Report, nearly 9 in 10

the difficulty of identity verification and an unclear regulatory future, merchants still encourage customers to use the merchant’s pr­eferred

the number of merchants now accepting cryptocurrency con­ti­nues payment method. They do this by actively promoting the preferred

to rise. That trend is likely to continue. methods during checkout, offering or pre-selecting preferred methods

prior to the payment selection page, and by providing incentives for

BNPL also saw significant growth in adoption, to 29% acceptance, customers to steer them toward a specific payment type.

with 21% of those merchants adding BNPL options in the past

twelve months. The continued expansion of these short-term There are several reasons merchants might prefer accepting tradi­

financing contracts is due to a variety of factors, one being popularity tional payment types over new APMs. One is lower fraud risk due to

among Millennials and Generation Z who tend to be more debt- the merchant having the experience, infrastructure, and fraud mitigation

averse than their older counterparts. Another is that BNPL contracts strategy built out to support acceptance. This familiarity might also

provide short-term credit to those that are underbanked or don’t result in higher conversion rates due to optimisation that has likely

have access to more traditional credit offerings like credit cards. already been implemented, as well as expedited availability of funds

and lower processing costs achieved by relying on trusted and

BNPL does present unique risks to merchants, including concerns familiar processing partners.

about future regulatory requirements, default liability, currency

exchange rate fluctuations, and other potential issues. However, APMs are here to stay, but it’s also clear that traditional payment

there are significant advantages as well. Average order value tends methods aren’t going anywhere anytime soon.

to increase when customers use BNPL, as consumers can spend

more on an individual purchase than they might otherwise. BNPL APMs moving forward
increases revenue for merchants, and it’s well-loved by an important Paying close attention to merchant adoption of Alternative Payment

segment of the market. Methods provides compelling insights into how the payments industry

might change over the next few years.

Understanding the fundamentals of BNPL is highly recommended

for anyone looking to capitalise on the unique advantages these It’s clear from the 2022 Payments and Fraud Report that APMs

short-term financing agreements provide. aren’t necessarily a replacement for traditional payment methods.

As more merchants accept options like BNPL and cryptocurrency,

Addition not replacement however, the coming years could very well bring continued shifts

Though APMs clearly offer value to customers and merchants, there in payment acceptance rates, customer behaviours, and payment

are still significant benefits to merchants utilising traditional payment technologies that lead to the traditional payment paradigm evolving

methods, especially those that are advantageous for their specific in unexpected directions.

product or vertical.

The MRC is a global community connecting ecommerce fraud prevention and payments
professionals through educational programs, online community groups, conferences, and
networking events. As a non-profit organisation, the MRC is headquartered in Seattle,
Washington, but embraces members from across the globe.
merchantriskcouncil.org

74 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Checkout.com
Meeting Consumer Payment Expectations in the 21st Century

Manuel Huez is VP of Product at Checkout.com, leading the team designing Checkout.com’s core
network capabilities. Manuel was previously the Co-Founder and Chief Product Officer at ProcessOut,
which was acquired by Checkout.com in 2021.

Manuel Huez VP Product Checkout.com

Consumer payment expectations are changing, but meeting those The payment methods offered at the checkout significantly impact

expectations is not straightforward for businesses. Manuel Huez, that experience. So much so that 60% of consumers told us that

VP of Product at Checkout.com, outlines why businesses need to they would abandon their cart if unable to use their preferred pay­

embrace data to better understand their customers and maximise ment method. This number may lead merchants down the path of

payments success. hedging their bets and offering every payment method out there, but

this is probably not the best course of action. Some 52% of consumers

There have never been more ways for consumers to pay than there will abandon their cart if the payment process is overly complex.

are now. Cards are still the most popular payment method globally, It can feel like being stuck between a rock and a hard place for

but there’s a range of alternative payment methods increasing in many merchants.

popularity. These include digital wallets, such as Apple Pay and

Google Pay, Buy Now, Pay Later (BNPL) solutions like those offered

by Klarna and Afterpay and, increasingly, crypto. To crypto or not to crypto?

Demand for cryptocurrencies as a form of payment is

It’s not only payment methods that are evolving. The consumers growing. In a Checkout.com survey, 40% of the 18-35

who use them are as well. The preferred payment method of a con­ years-olds said they planned to pay using crypto in 2022.

sumer depends on numerous factors, including where the payer is Despite this, crypto still has some way to go before

from, how old they are, and what they’re buying. becoming a widely used payment method. The lack of trust

and comprehension remains a significant barrier for many

How do merchants navigate this complex payments environment? consumers, while businesses admit they remain concerned

And how do they ensure they’re not spending too much time about how regulation will impact the crypto space.

thinking about which payment types to offer and chasing the

next hottest method rather than optimising acceptance rates and

customer experiences? However, there is a path forward, and it’s illuminated by data.

Businesses need to be continuously scanning the payment space

Understanding consumer payment preferences to understand their customers’ preferences and take a segmented

with data approach to that analysis. Our local payment experts spend time

There’s no such thing as a one-size-fits-all approach that businesses with our customers to study their customer profiles and map them to

can take with their customers today. Consumers increasingly demand the broader consumer payment trends we see in the market. This allows

curated experiences from brands they interact with. And those us to deliver tailored recommendations to these busi­nesses on what

experiences can vary greatly depending on who that customer is. payment methods they should offer based on prede­termined con­

sumer profiles. ➔

75 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Of course, this is not a one-time exercise. Consumer payment to-end technology stack. This puts them at a disadvantage against

pre­fe­rences are evolving — incredibly fast in some parts of the merchants using a full-stack provider whose technology powers the

world like APAC and the MENA regions. Therefore, businesses full payments journey.

must continue analysing their data and working with their payments

partners to understand what’s happening in the market and adjust Thrive in the digital economy
what they’re offering at the checkout accordingly. Businesses should not feel lost in all the talk of payment trends

and the complexities that will inevitably arise. Instead, they should

Maximising payment success at the checkout consider understanding their customer’s payment preferences and

Offering the right payment methods to the right consumer at the try to maximise payments performance.

right time is, and will continue to be, an essential equation for busi­

nesses to get right. However, it’s only half of the equation. Focus on At Checkout.com, we make it our mission to enable businesses

optimising the performance of their payments is just as important, and their communities to thrive in the digital economy. This inspires

if not more so. us to deliver innovative solutions that flex to your needs, valuable

insights that help you get smart about your payments’ performance,

Payment failure is a risk, no matter what payment method a consumer and expertise you can count on as you navigate the complexities

uses. Our report showed that 33% of UK consumers will abandon of an ever-shifting world.

their purchase if payment is falsely declined. One in ten will complete

their purchase with another merchant.

BNPL: hype or here to stay?

Part of the solution to mitigate the risk is, again, data. If businesses BNPL is booming. Consumers love the convenience, 0%

can get a granular view into their payments data, they can see where interest rates and transparent payment plans. Merchants

payments fail and why. This empowers them to take affirmative love the con­version, sales and customer acquisition boosts,

action to prevent payments from failing in the future, including making plus the customer experience and cash flow improvements.

alterations to what payment methods are offered and where.

BNPL is here rather than hype. Yet leveraging it smartly

Let’s take the example of a large percentage of consumers that are involves tailoring the payment method to your business’

predominantly using cards on mobile devices but are failing to authen­ needs and those of your customers. It’s essential to be

ticate correctly through 3DS, causing payments to fail. In this case, clear on BNPL fees, break-even points, and sales impact.

a business may want to enable or make their ability to accept Apple There are different flavours of BNPL, so ensure that BNPL

Pay and Google Pay more prominent at the checkout, given these payment plans match your price points and average basket

have native advanced authentication features. Likewise, if payments size. Last but not least, consider how BNPL will affect

are frequently declined due to a lack of funds, a business may operational processes such as returns.

consider offering BNPL to recover the sale.

But it’s important to note that this data isn’t always readily available.

Not all payments providers can serve merchants the data they need
Click here for the company profile
due to the technical limitations that occur from not owning the end-

Checkout.com is a global payments solution provider that helps businesses and their
communities thrive in the digital economy. It offers innovative solutions that flex to your
needs, valuable insights that help you get smart about your payments’ performance, and
expertise you can count on as you navigate the complexities of an ever-shifting world.
checkout.com

76 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 CMSPI
Spoilt for Choice: Why Merchants Need to Act Now on Checkout Processes

An Economist as part of CMSPI’s Insights and Advocacy Team, Katharine’s role is to analyse the
payments industry from the macroeconomic perspective, providing strategic insights to merchants
across Europe.

Katharine Evans Economist CMSPI

Over two years since the onset of the pandemic, it is clear that the Figure 1: The online checkout process
future of retail is digital. But whilst growing ecommerce volumes

can unlock whole new markets, they also make it easier than ever

for customers to move between competitors.

The new-found pressure means that a negative experience can be

the difference between a sale and the loss of a lifelong customer.

With an estimated 74% of European internet users now shopping

online and skyrocketing inflation driving profit margins down, mer­

chants are becoming more aware than ever that they need to invest Source: CMSPI estimates and analysis

in their online payments processes now.

The checkout process is also a powerful marketing tool. Convenience is

But what does this really mean? In Part 1 of this series, we’ll walk now king, and customers will expect their payment process to be as

you through the steps leading merchants are taking to optimise simple and frictionless as possible. With an ever-increasing number

their checkout process – and why it’s so critical for your business. of consumers utilising not only card payments but also multiple

alternative payment methods (APMs), a positive checkout experience

Why is the checkout process so important? is vital to retaining good customers. And with a 5% customer reten­

Our estimates suggest that the average merchant is losing 96% tion rate increase estimated to uplift profits by up to 95%, this

of customers before they even have the chance to make a transaction. could be game-changing for your bottom line, at a time when rising

That means that, of the 14.5% of sessions where an item is added inflation means that every cent counts.

to the customer’s cart, fewer than 1 in 3 will end in a transaction

being approved.1 Optimising the checkout process increases the Crowded checkouts: balancing choice with friction
likelihood that consumers will get to that all-important transaction With the growth of ecommerce has come the rise of multiple APMs.

stage – and to do so requires strong inter-departmental collaboration A consumer might now expect to be able to pay with a number of

from merchants. different options, including Buy Now, Pay Later (BNPL), digital wallets,

and Open Banking. ➔

1 CMSPI estimates and analysis

77 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Many merchants have attempted to keep up with this increasing With 72% of consumers unwilling to spend more than 2-3 minutes

variety by continuously adding payment methods to their checkout at checkout, elements of the checkout process you previously may

page, hoping to maximise their consumer base and not lose out to not have considered are now vital to your customer retention and

competitors. But are those payment methods always appropriate revenue. Factors such as CVV field length and address verification

for the transaction and customer? Local payment methods such as input methods may seem small, but will, nonetheless, have a signi­

iDEAL in the Netherlands may boost spend in their intended regions, ficant impact, particularly as customer friction increases due to SCA

but crowd the checkout if offered internationally, for example. In requirements. These small but crucial fixes can also help prevent

fact, fewer than one in five BNPL users say they would abandon multiple transaction retries – and with 90% of consumers unwilling

their purchase if their preferred BNPL option wasn’t offered. to retry three times, this could be a deciding factor between you

Too many APMs could also reduce volumes through each party, and a competitor.

limiting your negotiating power while necessitating more complex

contracting and monitoring processes. What’s next?

Your online checkout process is a vital part of your business and a

So, how to take advantage of a payment method’s consumer base major determinant of the revenue you receive. Implementing dynamic

without turning off customers – or implementing options that are checkout pages, checkout steering, and optimising the input of vital

sub-optimal for the merchant? One answer may lie with dynamic pay­ payment information are comparatively simple options that best-in-

ments pages, which allow the merchant to target specific payment class merchants are using to streamline the checkout. As shoppers

types towards certain consumers or transaction profiles. This can adapt to online retail, a strong checkout strategy is crucial to retain

also be useful if you want to restrict fraud or chargeback rates – by loyal customers for whom shopping with a competitor is as simple

not promoting high-risk payment types on high-value transactions, as the tap of a button.

for example.

Checkout optimisation gets you to the payment – but what happens

Checkout steering, a similar solution in which the merchant’s preferred when you’ve invested all this time and money into maximising con­

payment method is placed at the top of the page, or incentivised versions, only to have the transaction rejected? Look out for Part 2,

via other means, likewise allows you to tailor consumers’ online to be published on The Paypers’ website, where we’ll take you

payment experience and encourage the use of APMs which achieve through how blindly handing that sale over to the payments supply

the optimal balance between customer experience and cost, chain can leave billions on the table.

approval success, and fraud rates.

Optimising the customer payment process

Having successfully enticed your customer to the payment page,

there are a few short steps you can take to ensure the maximum

possible success before the transaction is sent to fraud and authen­

tication checks.

At CMSPI, our payments experts provide advisory services and powerful analytics.
Our ultimate goal? Supporting a more innovative and productive payments ecosystem.
For hundreds of clients across the globe, our insights help improve performance and create
positive change.
cmspi.com

78 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Lloyds Banking Group
Forget Payments Acceptance: Think Merchant Services

A proud Madrid-born Londoner, Diana has an extensive international career focused on building
payments solutions via innovation. After Visa, Santander, HSBC or ServiRed, she currently serves
as MD, Merchant Services for Lloyds and as NED for Wirex. She has been called as an SME Advisor
to several regulatory initiatives and invited as a guest lecturer at the University of Cambridge.

Diana Carrasco MD, Merchant Services Lloyds Banking Group NED at Wirex

Payments acceptance, as a business, is slowly disappearing. Over the The remaining amount goes to all the other services that help them

last few years, it has become commoditised, squeezing the margins manage their business end-to-end.

of acquirers, with profits alarmingly vanishing. Merchants no longer

demand from their acquirers just the capability to accept payments Although in the payments industry we usually refer to these services

– this is no longer sufficient. as ‘value-added’, the truth is that, in many cases, they are as core

to the merchants’ business as payments acceptance is, and often

So, what do merchants really want from their acquirers? What type their whole model is based on these ancillary services. These can

of services do they feel bring real value to them? Whilst merchants range from invoicing software to loyalty programmes, accountancy

are increasingly questioning the costs of payments processing, services, logistics, or insurance.

they are more and more willing to pay for business-enablement

services, such as loyalty programmes, gift cards, or accountancy This range of merchant services can only be delivered via the

packages, as well as for payments performance enhancements integration of software and payments acceptance solutions.

such as transaction monitoring and chargeback management. Acquirers rely on third parties and partners (often referred as

This change is even more evident in those areas where digitisation Independent Software Vendors, ISVs) to provide the services that

has accelerated more recently, such as hospitality or groceries. sit outside the core payments acceptance proposition and integrate

their software services into the payment gateways.

So, as acquirers begin to offer services focused on commerce

enablement via software integration, they are no longer considered Not a one-size-fits-all
purely ‘financial providers’ and, therefore, are tapping into broader But which of the infinite value-added services should acquirers

areas of merchants’ budgets, where there is a higher perception focus on? Restaurants require services such as integration with

of the value of services. Merchants negotiate aggressively over delivery platforms, QR-enabled order at table, order modification,

merchant discounts but are prepared to pay generously for click and collect, and bill splitting, for example. Meanwhile, health

business-enablement solutions that help drive more revenue. clubs and gyms require services such as loyalty programmes, family

And it is the acquirers’ responsibility to listen to their merchants, accounts and integrations with health management apps. ➔

understand their needs, and deliver solutions to meet them.

The increasing relevance of value-added services

Payments acceptance represents just a small proportion of the

merchants’ budget. A typical mid-sized merchant spends circa

9% of its total services wallet on the capability to take payments.

79 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 More and more, payment providers organise their products and In summary, there is no new formula here. It ultimately goes down

go-to-market strategy approach by industry or segment. The to listening to our customers, which are the merchants, to under­

convergence of payments and business-management software into stand their needs and also those of their customers, which are

merchant services, together with merchants’ appetite to procure the consumers. Merchant acquirers need to expand beyond core

their business solutions from a single provider, has paved the way payments acceptance to offer, via partnerships, integrated merchant

for acquirers and partners to deliver integrated solutions tailored to services solutions. Merchants require these solutions to enable

specific merchant segments. connected commerce and seamless payment experiences, and

they want them tailored to their business needs.

Connected commerce
However, it is not enough to solely focus on what the merchants are We hear that payments acceptance, as we knew it, is no longer

selling; acquirers need to also consider how is the merchant selling sufficient and that this is the new Minimum Viable Product that

their products or services: face to face, online, over the phone, or a merchants are prepared to accept.

combination of some, if not all of them. To remain relevant, merchant

acquirers need to offer omnichannel merchant solutions. It is critical

to offer a unified commerce proposition that makes the consumers

experience seamless, regardless of how they chose to shop.

By nature, paying is not an appealing consumer experience; they

demand nimble payments made easy, almost invisible to them.

There is no coming back from the improved shopping experience

of buying something online and returning it in-store, ordering food

and drinks at the table using a smartphone’s QR reader, or using

the ‘in-store’ mode of a merchant’s app to obtain or spend loyalty

points whilst shopping for groceries.

Connected commerce solutions also allow merchants to see all

transactions in the same place, following their consumers across

all the merchants’ sales channels. Only this way merchants can fully

understand and serve their customers, unlocking the full potential of

data. Data is no longer the new gold: it no longer is a luxury, it has

become a necessity, indispensable for business survival. Data is

the new water.

Lloyds Bank is the largest UK Bank, with a presence in nearly every household. It is
our role to help businesses and individuals, while making a positive contribution to the
communities in which we operate. Cardnet is a joint venture between Lloyds Bank and
Fiserv, through which we provide an innovative, simple and safe end-to-end acquiring
solution to merchants of every size. You can learn more of what we do in the following film:

lloydsbankcardnet.com Cardnet Merchant Services.

80 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 451 Research (S&P Global Market Intelligence)
The Role of Payment Orchestration in Optimising Checkout

Jordan McKee is a Principal Analyst at 451 Research, the technology research arm of S&P
Global Market Intelligence. Jordan leads the firm’s coverage of digital payments, overseeing all
qualitative research, market forecasts, customer surveys and strategic consulting, and go-to-market
engagements.

Jordan McKee Principal Analyst 451 Research (S&P Global Market Intelligence)

Merchants’ preference for utilising multiple payment service provid­­­ Flexibility. Many merchants want to avoid the consequences of

ers is increasing. This is in part fueled by payment challenges vendor lock-in. Having the ability to route transaction volume across

encountered during the pandemic, such as processor and gateway multiple partners ensures that merchants don’t become overly reliant

outages, but more broadly driven by a growing appetite to optimise on one processor, especially in the event of a development that may

payment processes. be seen as unfavourable (e.g., outage, acquisition, platform migration).

While many payment service providers tout the advantages of Cost optimisation. Connecting to multiple payment processors

using a single, unified processing platform, the reality is that most enables merchants to pursue a least-cost routing strategy. This in­­

merchants (60%) prefer a multi-provider approach to payment volves directing transaction volume to specific processors based on

processing. This is increasingly the case, with the percentage of various criteria (e.g., card brand, card type, card issuer) to receive

merchants preferring to work with multiple payment providers the most favourable processing rates. It is also typical for large

growing by 11 percentage points between 451 Research’s 2020 and merchants to hold back a percentage of their volume from their primary

2021 Voice of the Enterprise: Customer Experience & Commerce, payment processor to use it as bargaining power during pricing

Merchant Studies. negotiations.

Figure 1: The rise of the multi-provider approach to Accessing multiple best-of-breed capabilities. Not all payment

payments processors offer the same level of functionality and variety as value-

added services. Some merchants may elect to route a percentage of

their transaction volume to one processor to make use of a specific

capability they offer (e.g., a PIN debit routing engine, a gateway).

Authorisation rate optimisation. The authorisation rate of each

individual payment method varies from processor to processor.

Source: 451 Research, part of S&P Global Market Intelligence, 2021 This is due to a variety of factors, and can include local acquiring

Base: n=252 merchants connections, direct payment method integrations, and geographic

location. Routing transactions to the payment processor proven

The drivers fueling a multi-provider payments strategy are many and to have the highest authorisation rate based on a specific set

vary depending on the business needs and size of the merchant. of transaction criteria is a sound strategy for increasing topline

Common rationale includes: revenue. ➔

81 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Accessing multiple geographic markets. Payment processor to optimise and streamline payments across multiple partners.

expertise, capabilities and presence varies across geographies. It often includes elements such as payments data tokenization

As merchants expand into new markets, some choose to integrate and vaulting, transaction routing logic, transaction retry logic, and

into a new payment processor with proven experience in a given unified reporting/ KPI tracking.

geography, to optimise their strategy for the local market.

Enterprise-scale merchants often have large payment teams that

Champion/challenger testing. It’s common for larger and more handle many elements of payment orchestration in-house. Many large

experienced merchants to continuously put payment processors head- multinationals have built their own sophisticated payment routing

to-head to optimise their acceptance strategies. This involves the and rules engines, token vaults, and even internal payment gate­

merchant holding back a subset of its volume from the champion ways to simplify processor integrations. While impressive, this

(the incumbent processor) and routing it to the challenger (the new necessitates a large resource investment, and often requires the

processor) to see who produces the most favourable authorisation ongoing involvement of in-demand skill sets such as data scientists

rates. and engineers.

Redundancy. Processor outages have become a common issue, For merchants unable or unwilling to build payment orchestration

especially among several of the legacy processors. Consider that capabilities in-house, an alternative exists. There are various platforms

‘improved payment processor scalability and resiliency’ is the now available in the marketplace that enable the outsourcing of

top payments need that merchants say COVID-19 has sparked. several elements of the payment orchestration.

Connecting to multiple processors ensures that merchants have

failover support in the event of an outage, allowing for business Regardless of the preference for an in-house or third-party approach,

continuity. our 2021 Voice of the Enterprise: Customer Experience & Commerce,

Merchant Study made clear that payment orchestration is becoming

The role of payment orchestration a growing business priority. More than one-quarter (28%) of the

The tradeoff for utilising a multi-provider payment-processing commerce and payments technology decision-makers that respon­

approach is that it creates added operational complexity. Simply ded to the survey said enhancing payment orchestration capabilities

put, more partners translates into more integrations to maintain, and is a top payments initiative at their organisation this year. Similarly,

ultimately, more fragmentation in merchants’ payment environments. 29% reported that COVID-19 has increased their need for payment

It’s no surprise that the top reasons cited by merchants that prefer to orchestration, rising to 44% of those we classify as digitally-driven

work with a single payments provider include simplified integration, (executing on a digital transformation strategy and early adopters

increased operational efficiencies, simplified vendor management, of new technology).

and unified reporting.

Follow us to find out how 451 Research can help you access

To realise value from a multi-provider payment-processing strategy, relevant research reports across emerging technologies.

some level of payment orchestration is required. Payment orche­

stration involves a series of strategies, techniques and tools designed

At S&P Global Market Intelligence, we understand the importance of accurate, deep,

and insightful information. We integrate financial and industry data, research and news
into tools that help track performance, generate alpha, identify investment ideas, perform
valuations, and assess credit risk. Investment professionals, government agencies,
corporations and universities around the world use this essential intelligence to make
business and financial decisions with conviction. S&P Global Market Intelligence is a

451research.com division of S&P Global (NYSE: SPGI).

82 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Xsolla
In this interview, Elena Popova, Director of Payments at Xsolla, discusses how the company’s payment strategies impact the

growth of the gaming industry.

Elena Popova is an expert in global payments with 9+ years of work experience with AAA gaming
titles. Elena helps video game companies of all sizes distribute their games and grow their revenues via
multiple payment channels from global names like PayPal and Visa to local schemes like Pix in Brazil
and Paytm in India.

Elena Popova Director of Payments Xsolla

Are there any specific trends in the gaming industry Another thing we need to consider is the local payment habits.

in terms of how people pay? What are the most While many players use credit cards to make payments in games,

preferred payment methods? other customers prefer local digital wallets, like WeChat and Alipay

Payment trends in the video games industry are closely related to in China, Paytm in India, or TOSS in South Korea, prepaid cards,

the overall ecommerce trends. When making an in-game purchase, or even cash.

players often choose the same payment method that they use while

shopping for other products and services online. What is the strategy you have in place when it comes
to expanding in new markets?
Over the last few years, the payment industry has seen a significant Before we decide to enter a new market, we first need to do our

evolution in technology and changes in consumer payment habits. homework. We look into how many game developers are in this

COVID-19 has accelerated this change. Customers are now much market, if they sell their games locally or globally, and dive deeper

more demanding and selective when it comes to the way they into the cultural payment habits of the particular country or region.

spend their money online. For instance, in Africa, each country is unique in terms of payment

habits, while in Latin America we see a lot of similarities when it

comes to how people pay for games.

Nowadays, buyers are much
more demanding and selective As for localisations, the key factor is whether customers expect

to see the checkout interface in English or in their local language.

when it comes to the way they
Localised interfaces can lead to a higher conversion rate.
spend their money online. Our conversion rate in Brazil almost doubled when we localised

all the interfaces in Portuguese, launched local payment methods,

and enabled payments in local currency. For some countries,

Players tend to choose faster and more convenient payment like Japan, for example, localisation can be a regulatory requirement.

methods, like mobile wallets or methods that allow customers to

use a saved payment account. In the meantime, customers are only Moreover, localised interfaces can still be confusing to users, so it’s

willing to save their payment credentials if they trust the website and recommended to have a local advisor or a trusted partner in every

the payment provider they use to make purchases. new market. ➔

83 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Is there a particular region or country that poses How do your products tie in with the key market
more challenges? trends?
Almost every region has challenges of its own. The most common Our mission is to make in-game payments a part of a game session.

ones are connected with region-specific rules and regulations: Customers nowadays migrate between different platforms and

localisation in Japan, age gating in South Korea, cross-border demand a seamless payment experience on any device, whether it

payouts in India, high exchange rate volatility in Latin America, is a PC, a tablet, or a smartphone. We made our latest Pay Station

regulations imposed on online game sales in Vietnam, and more. product version smart, customisable, and compatible with multiple

Our job is to work through all these things so that game developers platforms and devices to let developers extend their branded

can sell their games in every country across the globe. checkout experience across platforms for their users, no matter

their preferred payment device or method.

With gaming being a user-centric industry, how do

you ensure the UI and UX are not affected when Making a payment no longer pulls you out of your game session,

adding new payment methods or features? which is important for the business outcomes. We have tested the

Before adding a new payment method, we do our research. new Pay Station at scale, and the metrics are: increased conversion

We determine if this particular payment method is relevant to this rate due to fewer transaction interruption factors, and increased

particular country, and if its payment flow is similar to how people average revenue per user from in-game item sales leading to

tend to pay. If most payment methods in the country require only increased customers’ lifetime value. A bigger revenue stream,

one click to make a purchase, then a newly launched payment a more successful game.

method with a longer payment flow will most likely ruin the game’s

conversion rate in this territory. Also, we regularly monitor changes

in user behaviour and payment habits.

Brazil, for instance, had a cash-based economy for a long time.

In 2020, the Central Bank of Brazil launched Pix – an instant

pay­ment system available to the general public 24 hours a day,

365 days a year. At least 100 million people have already transacted

with Pix within one year from the launch. Shortly after the launch,

we added Pix to Xsolla’s portfolio of payment methods. Since then,

we noticed that the share of cash payments in Brazil decreased by

23% because local users quickly adapted to the more convenient

payment flow.

Click here for the company profile

Xsolla is a global video game commerce company with a powerful set of tools and services
designed for the video games industry. As a leader in video game commerce, Xsolla solves
the complexities of global distribution, marketing, funding and monetisation for games
across mobile, PC and the web.
xsolla.com

84 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
Localisation
 PPRO
Why Local Payment Methods Are the Key to Cross-Border Success

James Booth has over ten years of experience in the financial sector, eight of those in fintech.
In his current role as VP, Head of Partnerships for EMEA, he leads the new business and partner
development teams in managing PPRO’s new and existing strategic partnerships. In addition to
helping PPRO partners grow their business, he acts as PPRO’s internal advocate for aligning the
company’s product roadmap with the needs of its customers. James has been actively involved in
various projects during his tenure at PPRO, including establishing PPRO’s presence in North America
and managing the development of the PPRO Partner Portal.

James Booth VP and Head of Partnerships, EMEA PPRO

James Booth is VP and Head of Partnerships, EMEA, at PPRO. He’s Europe, Latin America, and APAC each have hundreds of major

responsible for building all-important relationships with PPRO´s PSP local payment methods that are unique to their region. These are

partners and helping build their digital payment method roadmaps. competing systems, each with their own transactional infrastructure

We caught up with James to find out why local payments have and each with their own user base. If a merchant wants to increase

never been more important than they are now. sales by offering a local payment method, they need to identify

which ones are most used by their prospective consumers.

Why should merchants integrate local payment

methods at the checkout? If the merchant is committed to performing the integration on their

Credit and debit cards are only the most popular payment methods own, they need to ensure that the LPMs they’re considering can

in a few Western markets. In the rest of the world, consumers use be supported by their financial platform. This requires a technical

e-wallets, bank transfer apps, cash payments, Buy Now, Pay Later discovery project. If they don’t have suitable in-house resources,

(BNPL) services, and many other types of payment methods instead. they need to retain a consultancy.

Worldwide, consumers use these local payment methods (LPMs)

in 77% of all online purchases1. If merchants don’t accept LPMs, Assuming the merchant has a platform that works, they may need

they miss out on this massive volume of commerce. to set up a local presence for legal and operational purposes. This

involves all the registrations and licenses one would expect for any

business. But, because the merchant is integrating with a payments

Integrating with local payment system, there will likely be additional financial regulations they will

methods is crucial for serious need to navigate.

market entry into every region of

Once the preparation work is complete, what
the world. But it is a long, hard, approach should merchants take to integrate
and complicated process. LPMs?
Merchants should start by engaging a consultant who operates in

the country to help them set up the entity, as well as a local attorney

If local payment methods are so important, why to execute the necessary paperwork and avoid legal missteps.

some merchants are hesitant to accept them? Once the merchant has the right to integrate with the local payment

Adding these payment methods to online checkout options can methods, they can begin the actual integration itself.

be as costly and complex as setting up new corporate operations,

each in a different country. 1 According to data from Edgar, Dunn & Company

86 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 This will get very technical, very quickly. As this is a portion that is To manage their own implementation, a merchant will need to have

almost always outsourced, it will require a liaison from the merchant administrators who monitor changes in the regulations and tend to

to assure the project is being executed completely, while also these requirements. Because some LPMs involve an offline element

remaining in-scope and on-budget. If they’re doing this on their such as exchanging vouchers at a physical retail location, there

own, they should allow a year or more to be completely connected. can be regulatory compliance issues beyond ordinary financial

regulations that must be monitored and managed.

How expensive is the integration process likely to be?

The cost varies from one payment method to another. But the bottom Of course, a merchant will also want to be able to capture and

line is, it’s going to be expensive. Establishing a local presence will analyse their own financial performance data to inform ongoing

include licensing fees and may require cash reserves, as well as business operations and strategy. This can either be a part of the

whatever reserves are required for transacting in the LPM. original integration or done afterwards, but it is the only way to

assure a business receives the full value of its investment.

A custom integration project is always going to be costly. And, like any

software platform, it will require ongoing updates and administration. What message do you want readers to take away
Also, the merchant should budget for the initial discovery that may or from this piece?
may not result in an actual integration project, which will significantly Integrating with local payment methods is crucial for serious market

raise the overall costs of integrating LPMs into their online payment entry into every region of the world. But it is a long, hard, and

systems. complicated process. It involves financial risks, and the process is

never really done. The payments industry is changing constantly

The merchant is also expected to retain consultants and lawyers and requires ongoing maintenance, with LPMs being launched or

throughout the process, in addition to budgeting whatever staff time modified regularly.

is required for the project. This includes in-house counterparts for

the many external resources required. They will also need to budget This is why there are speciality companies that strictly focus on

for ongoing support and maintenance. platforms to simplify the integration with LPMs and enable rapid,

cost-effective market access. This is also the main reason why even

A great deal of the budgeting is required for each LPM. Each local the best-known global payments processors choose to partner or

payment method is different, with its own entities to contract, its own outsource the set-up and management of local payment methods,

technical requirements, and often its own financial requirements. so they can focus on their core business.

Are external experts really necessary? Can’t Yes, you can do it all by yourself. But you better be feeling ad­ventu­

merchants manage just fine without them? rous… and rich.

Unless you already employ world-class payment experts — and given

how scarce and in-demand they are, that’s unlikely — you absolutely Find out how local payment methods drive e-commerce growth

should not try to make it a solo ride. LPMs, like any payment system,

come with ongoing administrative requirements like settlements,

compliance, risk and fraud mitigation, chargebacks, and unallocated

Click here for the company profile
funds processes.

PPRO is a fintech company that globalises payment platforms for businesses, allowing
them to offer more choice at the checkout and boost cross-border sales. Payment service
providers, enterprises, and banks that run on PPRO’s infrastructure are able to launch
payment methods faster, optimise checkout conversions, and reduce the complexities of
managing multiple fund flows.
ppro.com

87 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 2C2P
How Digital Payments Are Shaking Up Southeast Asia’s Ecommerce Landscape

Based in Singapore, Jade Lim is a Director at 2C2P overseeing alternative payments and product
development. Previously, Jade was an Assistant Vice President at NETS, responsible for the product
management of EFTPOS and terminal services. She began her career as a Senior Product Analyst at
leading travel facilitator, Abacus International.

Jade Lim Director of Products 2C2P

Payment options have never been so diverse. Today, people can Ecommerce is booming
pay for their taxis to the office using a bank debit card linked to a Despite uncertainty elsewhere, ecommerce’s continued growth

super app, buy coffee using their phone’s NFC technology, settle is assured. Ecommerce spending will rise by 162% to reach USD

the work lunch bill with a credit card, and grab an iced tea from 179.8 billion by 2025 across Southeast Asia, with digital payments

a hawker stall by using the local real-time QR payment scheme. accounting for 91% of transactions, according to an IDC InfoBrief

Later, they might get the dress they’ve been looking at the blog commissioned by 2C2P. The largest markets for ecommerce

shop using a new Buy Now, Pay Later (BNPL) app that would give payments are forecast to be Indonesia (USD 83 billion), Vietnam

them a five-dollar cashback. (USD 29 billion), and Thailand (USD 24 billion).

Customers love having the payment flexibility to suit their different Fast-evolving mobile payments trend
needs. But this situation is challenging for merchants. If they fail to The accelerator behind ecommerce’s growth in Southeast Asia

offer the customer’s preferred payment method, they risk adding is high internet penetration and fast-growing smartphone usage.

friction to the customer experience and decreasing sales conversions. Internet usage saw an unprecedented leap during the pandemic.

Penetration will reach 61.3% of the region’s population this year,

At the same time, consumer behaviour is evolving fast. People’s according to eMarketer, with the highest annual growth in Indonesia

preferred payment method today might be different in three months (3.9%) and Thailand (3.2%).

as a new champion might arrive on the block, promising fantastic

incentives, or smoother usability. Meanwhile, 88% of internet users in the region are smartphone users,

with smartphone penetration at 79% in Thailand and 75.4% in

Missing out is costly. So that it became imperative for merchants Indonesia. In Vietnam, the government aims to speed up adoption

to keep track of trends and adapt quickly to new and emerging rapidly, increasing the proportion of adults using smartphones from

payment methods, to gain a competitive edge in this market. 73.5% to 85%, by the end of 2022.

The tide of cashless transactions won’t go into reverse. Smooth, Easy access to smartphones will make this the primary tool enabling

effortless digital payments are essential for future ecommerce online payments for cardless and unbanked consumers in Southeast

success. Asia. Mobile wallet payments for ecommerce transactions are

forecast by IDC to rise from 19% in 2020 to 27% by 2025, with

This article will closely explore Southeast Asia’s three largest mobile wallet spending growing by USD 35.3 billion, representing a

ecommerce markets and propose some ways merchants can 2.8x increase from 2020. ➔

leverage the payment shifts taking place.

88 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Mobile wallets – preferred for ease and convenience – constitute a online and offline payments. It gives merchants a unified master view

significant force shaping the future payment landscape in Indonesia, and reference for all payments to enhance their records and serves

Thailand, and Vietnam, and are likely to capture some market share as an aid in decision making.

from other alternative payment methods, such as cash on delivery,

counter payments, and ATM payments. Interestingly, an IDC 2021 Asia/Pacific survey found merchants

could expect an average 10% increase in sales when adding a

single new popular payment method.

Solving operational complexities

Merchants must equip themselves with payment solutions which

can cater to the increased variety, frequency, volume, and diverse

locations in which transactions now take place, particularly as

their business ambitions, geographies, and locations expand.

Vital enhancements include improving uptime/reliability, reducing

false positives, and increasing authorisation rates and enhancing

security. IDC’s data suggests that an extra 12% of transaction revenue

online can be gained through the optimisation of these issues.

Optimising payments cost

As their business expands, merchants’ operating costs will also

increase. Payments cost optimisation will become a key focus as

transaction volumes increase, new payment methods are added,

Developing a strategic response or when merchants start accepting foreign payments.

Using payments strategically can help merchants cast a wider net

to retain and attract new customers. This isn’t simply a matter of How to win in this landscape
adding many payment options; merchants should prioritise those The payments landscape never stays still for long. The speed at

with the most relevance and acceptance in individual markets, while which new payment types are being introduced makes it challenging

keeping in mind their target audience and the average ticket size of for merchants to adapt independently.

the product or service that they are selling.

A payment partner like 2C2P can provide the most relevant payment

The expansion of ecommerce increases the types of payment inter­ options and quick support for new payment types that may emerge

faces. Merchant stores and marketplaces can be both online and in Southeast Asia, giving merchants the flexibility and confidence

mobile, requiring solutions and Android software development kits to capture new opportunities.

(SDKs) for payments.

A single omnichannel payment partner supporting these different

Click here for the company profile
pay­ment models will be critical in increasing potential revenue for

2C2P is a full-suite payments platform, helping global enterprises operating in emerging

markets to securely accept payments across online, mobile, and offline channels, as well
as providing issuing, payout, remittance, and digital goods services. It is the preferred
payments platform of tech giants, online marketplaces, retailers, and other global
enterprises.
2c2p.com

89 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Worldline
India’s Digital Explosion and the Opportunities It Presents to Ambitious Online Businesses

As a Chief Executive Officer of Worldline India, Ramesh is responsible for leading the business
strategy and driving the revenue growth of the company. He has over three decades of experience in
various roles in the Information Technology industry, having worked with various companies like HCL
and IBM, where he performed diverse leadership roles.

Ramesh Narasimhan Chief Executive Officer – India Worldline

Since well before the turn of the century, India has been undergoing networks and can access a robust digital ecosystem. The economic

immense changes in almost every aspect of life. GDP per capita rationale behind this campaign was clear: research from McKinsey

has soared, literacy rates are up, life expectancy is higher than states that digitisation can create 65 million new jobs by 2025 and

ever, and the country’s digital economy is booming, with 75% of add USD 1 trillion to the economy. This is a positive indicator for

the population being under the age of 45. global digital businesses looking to succeed in the region.

According to S&P Global Market Intelligence research, India also The opportunities on offer are, therefore, very clear, but the ever-

attracted fintech funding of USD 5.94 billion raised across 236 deals changing regulation and the ongoing developments in the digital

in 2021, up from USD 1.5 billion across 118 deals in 2020. It is also and payments landscape can prove challenging. From a payments

predicted that consumer spending will double within the next three perspective, it is crucial to understand that local payment methods are

years, and ecommerce penetration will increase by a factor of five. the norm, not the exception. Therefore, offering a full range of payment

This is expected to create an ideal environment for exponential methods that consumers are accustomed to – alongside traditional

growth, while placing the country as the world’s third largest fintech payment methods from other parts of the world – is essential.

economy, behind the US and the UK.

Every merchant and their payment service provider (PSP) need to

However, in order to capitalise on such enviable growth opportunities, be able to process complex and confidential personal data, while

online businesses need a deep understanding of this diverse, dynamic remaining compliant with India’s regulatory framework. The PSP that

economy, with its interwoven ancient yet cutting-edge cultures, and can deliver this most efficiently, rapidly, and robustly will inevitably

of course, the latest regulatory and payments infrastructure. provide the merchant community with the greatest comfort, to their

mutually competitive advantage.

Digital payments and fintech make now for an important part of

the life of India’s over 1.35 billion people, with 52% of the country A unique payments ecosystem
adopting some form of fintech. With an estimated 750 million Traditionally, India has been a high-cash economy. However, the

smartphone users, it is clear how far India has travelled in its rapid National Payments Corporation of India (NPCI) was established

digital transformation, providing a strong environment for many by the Reserve Bank and Indian Banks’ Association to encourage

digital businesses. migration towards a ‘less-cash’ economy. The obvious replacement

for cash was represented by debit cards – and, given mobile phones’

Overcoming barriers when entering the market coverage, phone-based payments and e-wallets. ➔

India’s digital transformation was jumpstarted by ‘Digital India’, a

campaign launched by the Indian government in 2015, aimed at

ensuring the country’s citizens are connected through high-speed

90 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Amongst NPCI’s many payment innovations is the widely used Unified Another ‘must have’ for merchants is the ability to seamlessly repa­

Payment Interface (UPI), which allows instant payments through a triate cross-border revenues in the merchant’s preferred currency.

variety of third-party payment methods. UPI is, by far, one of the most Conversely, a merchant should also be able to list services in Indian

popular payment methods. It has reached a phenomenal milestone rupees through its payment processes to maximise customer satis­

again, this time crossing the INR 10-trillion mark in transactional faction throughout their payment journey.

values and 6 billion transactions in terms of volume, in May 2022.

Partnerships are the way to go

The opportunities India has to offer are demonstrably huge – but

changing regulation and developments in the digital and payments

landscape can be overwhelming. Therefore, finding the right PSP

is crucial for long-term success.

A PSP should not only be able to guarantee its ability to manage data

within the boundaries of Indian compliance regulations, including

privacy, but also collect funds locally and provide international funds

remittance and access to local payment methods. Worldline is best

Recently, to boost digital payments, the Reserve Bank of India (RBI) placed to do this, with our long-standing experience in the region

launched ‘UPI123Pay’, which would enable payments of UPI to take and a solution covering all of these requirements. Backed by over

place via feature phones. These are basic mobile phones that only 2,000 employees across India, we have a deep understanding of

provide access to calling and texting services. Currently, UPI payment the local financial ecosystem and consumer behaviour.

transfers need an Internet connection – but, by using UPI123Pay,

individuals can employ all the services that UPI has to offer, such Considering all the above, India is a huge, fast-growing market,

as recharges, bill payments, balance inquiries, and money transfers particularly regarding its use of digital technologies, making it highly

using calls and texts, except for the scan and pay service. Currently, attractive and – potentially – extremely lucrative for those international

UPI processes more than half of all digital transactions in the country, brands that know how to maximise the opportunity presented.

with the Indian government successfully launching the UPI app inter­

nationally, in countries like Bhutan, Nepal, the Middle East, and

Singapore.

RuPay, another NPCI initiative, essentially functions as an alternative

to Visa and Mastercard, providing credit and debit cards, contactless

payments, QR code payments – and is used in nine other countries.

Similarly, Net Banking represents a local Indian real-time bank transfer

product. With this solution, consumers with an account at one of

several banks can pay for their online purchases via online bank
Click here for the company profile
transfer.

Worldline [Euronext: WLN] is a global leader in the payments industry and the technology
partner of choice for merchants, banks, and acquirers. Powered by 20,000 employees in
more than 50 countries, Worldline provides its clients with sustainable, trusted, and innovative
solutions fostering their growth. Services offered by Worldline include in-store and online
commercial acquiring, highly secure payment transaction processing, and numerous digital

worldline.com services. In 2021, Worldline generated a proforma revenue close to EUR 4 billion.

91 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
The Merchants’ Perspective on
Optimising the Payments Checkout
 IKEA
Payments and the Paradox of Choice

With over 15 years of experience in retail, banking, and the financial industry, Ognjen is a passionate
payment enthusiast at INGKA Group. Together with colleagues, he is breaking the payment dogmas,
listening to customers’ needs, participating in setting global payment trends, and creating a positive
payment experience. His expertise lies mostly in multichannel payments, new projects implementation/
sourcing, collaboration with PSPs, commercial banks, and payment networks.

Ognjen Vlačina Category Purchaser, Financial & Insurance Services Group Procurement, INGKA Group

Psychology is all around us – just in different forms and shapes. Customer experience is a hot topic right now, and payments expe­

Daily, there are different situations in which we need to make rience in particular can make the difference between a positive and

decisions and show preferences. This can be demanding some­ a negative interaction – and every touchpoint is now a potential

times, especially in a post-COVID-19 time, when many of us opportunity for sales, both in the physical and digital world.

faced anxiety or similar challenges. In the book The Paradox of

Choice – Why More Is Less written by the American psycho­logist What do merchants want to achieve?
Barry Schwartz, he states that eliminating consumers’ choices The main goal should be enabling companies to serve customers in

can considerably reduce anxiety for them. The book analyses the any possible way, at any given point. Therefore, merchants should be

behaviour of different types of people, divided into two main groups: ready to offer proper payment methods and platforms for any relevant

maximisers and satisfiers. We are scaling from the ordinary to the scenario to meet customers’ needs. So, the main question is how

philosophical challenges of balancing career, family, and individual to avoid an unnecessarily hefty payment process and come up

needs, which has paradoxically become a problem, rather than a with a relevant mix of payment methods, based on localisation.

solution. So, instead of becoming comfortable with having more

choices, we rather experience distress when we’re offered too many There are numerous ways to bring localisation to your business, and

options. here are some key considerations to be taken into account before

choosing the right combination of payment methods.

Is the situation similar for payment methods?

Anyone who is familiar with the ongoing global payment trends knows 1. Type of business
that the payment industry went through a phase of fast development It’s relevant to identify your type of business: retail (brick-and-mortar

throughout the last five years. Most likely, the trend will continue for the stores and/or online stores), banking, travel, gaming, entertainment,

following three to five years. Payment methods such as account-to- and so on. Once you know this, it will be easier to narrow down

account payments, instant/direct debit payments, crypto payments, the way forward. Aim to create a good benchmark on the market,

digital wallets, embedded finance, BNPL, Open Banking, and others if possible.

are creating a powerful, dynamic environment. Stronger fintech

presence and change of regulation for API connection, together 2. Market size
with lateral increase of ‘green finance’ are also keeping the tempo Based on the size of the market you operate in, you might want

of changes. In this context, one of the next challenges related to the to consider the required investment in the payment mix or in new

payments process is mastering the payment experience. Can we payment methods, as well as the potential return on investment

provide personalised payment options based on customer relevance? from it. ➔

Could this depend on generation, society, market, retailer, and the

goods customers are buying, as well as the quantity?

93 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 3. Market maturity 7. Expected benefits
What is the technology level of the targeted market? Clear differences While also taking costs into account, what are the expected benefits of

can be seen all over Europe, but also across Asia, Africa, and the the initial payment set up/ payment mix? How are you measuring and

Americas. When searching for a market’s level of maturity, consider monitoring this? Is there a ‘red flag’ for some of payment methods?

the local characteristics, including cash on delivery and local

payment methods, while also taking into account its openness or its 8. Metrics
conservative views, whether cards or digital wallets are dominant, Which metrics can you use to measure payment penetration, user

and how accustomed people are with using QR code payments, experience, efficiency, and expenses? Do you have any integrated

for instance. payment analytics with order management analytics and the

necessary tools to measure this interconnection?

4. Market insights
Which source are you using for market insights – and what do they 9. In-house or outsourced solutions
say? To get the proper insights on a market, it is best to look for After you decide on what you will offer to your future customers,

domestic reports conducted by regulated financial institutions, and you also need to understand how to implement it. Will you do this

the Central Bank is a good starting point. Additional statistics may in-house or outsource it? Do you have the necessary resources, time,

give you a further opinion on the business climate and show relevant and knowledge to do it in-house – or will you rely on external experts,

international companies in the area, as well as the strongest local which would translate into higher costs?

competitors.

10. Taking the pulse of the customers

5. Available payment options Sneaking around the market and talking to people, especially young

What are the common payment options that most competitors offer? consumers and merchants, will give you a thorough understanding

Do you have any customer feedback regarding these? Take this of potential pain points, trends, and expected benefits. Stepping

opportunity to apply hygiene factors and consider the minimum into your customers’ shoes will provide you with a ground check of

expectations that people have regarding payment options. the raw market and its challenges, opportunities, and trends. This is

irreplaceable in the overall process of preparing, assessing, and

6. Cost and duration of new payment methods implemen­ implementing a new payment strategy in a particular market.

tation
What are the costs of implementing payment methods such as Finally, implementation is the key. Measuring effects, assessing

cards, instant payments or direct debit, digital wallets, crypto, BNPL, success or failure, noting key learnings, and making a plan for needed

customer finance, and so on? What would be a realistic calendar corrections all represent crucial steps for further improvement.

required for their implementation? Take into account that not all Consider the first six months as the required checking point –

available payment methods have the same price for merchants, and reassess your business plan, implementation, and potential

so a smart decision would be to research market preferences and challenges after this period.

avoid adding extra payment methods that are not relevant to the

demographic. Additionally, apart from the implementation, also Sources:

1. The Paradox of Choice (smartinsights.com)
consider UX, refunds, reconciliation, and the chargeback process
2. Key Benefits of Multiple Payment Gateways (rightpoint.com)
within every payment method. 3. The Paradox of Choice (wikipedia.org)

Driven by the IKEA vision to create a better everyday life for the many people, INGKA Group
brings the IKEA brand to millions of homes. Since being founded by Ingvar Kamprad, we’ve
been united by our culture, values, and entrepreneurial spirit. And as we grow, we make it
easier than ever before for the many people to afford a better life at home.
IKEA.com | INGKA.com

94 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
Merchants’ Briefs
 Mango
Optimising the Payments Checkout – Best Practices from Mango

4. Are we clear about the cons of each of the payment

Carlos Madrona methods that we want to implement? We live in an imperfect
Internal Control & Compliance, world and, sometimes, generating more business has its
Payment Methods and Fraud counterparts: increased returns, costs, susceptibility to fraud.
Director
Therefore, it is very important to know what is going to happen
Mango
when we start it up and to be very clear about the business

case and be prepared for it. If the business case doesn’t come

out, let’s not proceed.

5. Is everything clear? Putting yourself in the client’s shoes

and stopping thinking as a ‘business’ is a highly recommended

attitude. Let’s think that, in the end, the client is going to use

First of all, allow me to thank ‘The Paypers’ in my first lines for once this, therefore, let’s ask ourselves, does it work? Do we include

again trusting me to participate in this Payment Methods Report elements of trust? Are the logos shown the ones that the client

edition. easily identifies? Does the customer feel that they control the

purchase process?

Before defining the best practices to implement new payment

methods, we should ask ourselves a few things: 6. Let’s make it easy. The more steps we give the client, the

worse. If we are able to be ‘intelligent’ and know in advance

1. What is our mission as payment method leaders? From my which payment method that client will choose, let us be dyna­

humble point of view, I believe that this department should have mic and put it first on the list. If for the next few times we are

an entity that provides internal (in a transversal way) and external able to remember their favourite payment method, our client

services. The clients are in charge, and as such, we must listen to will thank us.

them, understand them, and take care of them.

In my opinion, the best practices in implementing payment

2. What do we want to achieve? Assuming that every client can methods while doing business with common sense, beyond being

make payments in a correct and simple way, we must be clear about successful, are the sums of all these questions. Although each

what objective we intend with each of the payment methods. It is company is a different world, if you do not turn this famous

clear that all the payment methods ultimately transform a process pin point that is the payment, into something without friction

into a sale, but not everyone participates in the same way – some and as smooth as possible, the customer will have to make

bring customers, others are classic and globally accepted, and more effort in the purchase and the satisfaction will never be

others increase the AOV. So, implementing payment methods just complete. So, if you want to implement payment methods,

for having them is definitely not the way. think globally, and look after the customer.

3. What benefits does it bring to the company, but above all,

do we know what benefits it will bring to the customer? This is

something critical, as a payment method must be in line with the

commercial objectives of the company, and every payment method

that is in the checkout, to a greater or lesser extent, must be used,

otherwise, it is occupying a rich space without meaning.

96 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Rappi
Optimising the Payments Checkout – Best Practices from Rappi

possible fraud. The main fraud of which users are victims is

unrecognised charges, which can generate millionais in losses.

Juan Pablo Ortega

Co-Founder and CEO Poor customer service

Rappi, Yuno Paying is still very complex on the continent. The payment

methods available to online shoppers aren’t as extensive as

they would like. Moreover, shoppers have to enter their credit

card details every time they want to pay and could still face

transactions being declined without explanation.

High provider fees

It is very costly for companies to count and manage different

Solutions for the digital payment problem in Latin payment providers and, thus, achieve greater acceptance

America rates in the market.

In recent years, there has been a positive increase in digital payments

in Latin America. According to the ‘Global Payments 2021’, a report That’s why Yuno was born
made by Boston Consulting Group (BCG), revenues generated by Yuno is the result of a definitive search for a solution. Yuno allows

these electronic payments are expected to grow by 8.3% annually companies to manage different processors, payment methods,

for the next five years, becoming the second most developed market. and online anti-fraud providers through a single platform,

reducing the complexity and the effort companies have to

However, it is no secret that problems persist in the payment eco­ put into building and maintaining their payments technology.

system in Latin America, which, in one way or another, affect an

assertive and complete progress. Additionally, Yuno also provides the possibility for users to

make payments through cryptocurrencies, which translates

One of the main difficulties is that there are too many payment methods to a total diversification in the ecosystem.

in the region, which makes it hard for a single solution to solve the

needs of the companies. It is for this reason that more and more We, as founders, know everything that is behind a simple click

businesses decided to integrate different providers to help them or an online purchase. We know that this represents a huge

deliver a good experience to their customers, replacing the issue challenge for businesses that want to compete in the digital

of having to manage more than four diverse platforms at once. world. We understand the very high costs and how difficult it

is for them to navigate this ecosystem alone.

Likewise, consumers and the financial sector demand confidence

in the process of buying online, which means they need to consider Yuno allows them to improve their sales and costs without

some basic guarantees. In this sense, the region faces three having to develop a complex technology that gets out of the

additional challenges: focus of their business.

High level of fraud

Today, the leading payment processing companies throughout Latin

America have teams of hundreds of people in charge of developing

technology and managing payment processors to prevent any

97 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Vestiaire Collective
Optimising the Payments Checkout – Best Practices from Vestiaire Collective

In addition, sizing the implementation by the tech team

sometimes is complex and difficult to fit within the roadmap.

Pedro Bennasar
Hence, it is extremely important that the project gets properly
Head of Payments sized in terms of the revenue it will generate once implemented.
Vestiaire Collective This will give you the key to setting the project as prio 1.

In terms of commercials and contracts, make sure that within

the analysis, pricing has been also benchmarked and your

company gets a competitive rate. In terms of the agreement,

allow yourself some time too to ensure that your Legal also has

sufficient time to review and provide the right assessment to it.

Implementing new payment methods Benefits for both the company and the customer
As consumers expect smoother online shopping experiences, it is Providing the right payment methods for your company is a

vital for merchants to optimise the payments checkout part of the game changer, and it will translate into satisfied customers,

shopping journey. But before implementing a new payment method, who will perceive it as a good gesture to confirm that you

as a payment expert, there are a few things you need to take into comprehend their needs, which is what all companies aim

account: to do.

1. Understand your business.

2. Understand the market you operate in. Post-implementation results

3. Understand your audience. For example, by implementing some of the most popular

Asian e-wallets to our checkout page, we have experienced

After identifying the above, it’s relevant to establish how you want an increase in Asian customer presence. This has led to this

to position your company in terms of payment methods. Once you pay­ment method representing more than 1% of our global

do this, it’s good practice to carry out an in-depth analysis to­gether revenue.

with your PSPs, discuss with other merchants, and browse through

industry reports that would provide you additional insight on

achieving your goal.

Another important step is aligning internally with your tech and

product teams to ensure the project can be delivered in time.

Finally, it might be worth asking the vendor for marketing funds to

promote the payment method either at the launch (depending on

its popularity) or once ensured it performs well at the checkout.

Main challenges
The main challenge in implementing new payment methods is

finding reliable information to help you choose the ones that would

actually be the best fit for your business.

98 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Wargaming.net
Optimising the Payments Checkout – Best Practices from Wargaming.net

Make it smart. Be a Sherpa to your customers in their

Elena Emelyanova payments journey:

Senior Payments and Fraud • on the checkout page, give your card payer some pointers
Manager about possible settings they need to do with the card before

paying online (applicable for cross-border transactions), or

Wargaming.net
about the impossibility to pay with a specific BIN, scheme, or

currency prior they press the Pay button. By doing so, they

will be able to avoid predictable payment failures;

• implement symbols limitation for the fields as required by the

method, use auto switch from one field to another, and provide

a prefilled template in the grey fields, to reduce the possibility

of user error;

Here are four ground rules that any ecommerce business needs to • tokenize your payers, giving them the possibility to pay quickly
follow, regardless of the industry, to make their customers happy without the need to enter the details every time they want to

with UX and keep their conversion on a good level: buy.

Make it simple. There is nothing more complex than simplicity. Make it responsive. Last but not the least, make sure your CS
Therefore, building your checkout page with the minimum mandatory service is on a high level. If, in the end, your customers cannot

fields for your customer to fill in is not an easy job. On one hand, a complete the payment, they need to know the reason to avoid

company needs to collect enough data from customers for further it further. Thus, making it clear how to contact CS who can

usage in fraud protection and authorisation processes. On the other explain possible issues or setting up a readable and logical

hand, the fewer fields – the higher the conversion rate. Merchants FAQ is a must.

need to find a good balance between data appetite and conversion

rate, depending on their industry specifics.

Another simplification to consider is the layout of the checkout page.

Regardless of whether it is your page, or you are hosting it from your

payment provider, make sure the positioning and subsequence are

intuitive, with a focus on mandatory fields to complete the purchase.

Make it invisible. There should be no difference in design and

language between the shop page where your customers choose the

item and the checkout page where they pay for it. Thus, make sure

the localisation and customisation are done properly, especially if

there is a redirect onto HPP. Customers should not feel any change

when redirected onto a checkout page, as if they are still within your

e-shop. Exception may be when your brand is not that known yet,

and the targeted audience has a good trust in your B2C payment

provider, thus keeping the partner’s source colours and design on

the checkout page will bring you much benefit in the initial stage.

99 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
 Wix
Optimising the Payments Checkout – Best Practices from Wix

prefer to go to a website or a tablet, and it’s important to

accommodate all preferences.

Omer Shatzky

Head of Fintech and Risk Be aware of buyer payment preferences. Let your buyer pick
Wix their payment type by having the top three relevant payment

options available. If you only accept credit cards and they

want to pay with a different payment method such as Apple

Pay, Google Pay, Buy Now, Pay Later, or account-to-account

payments, you’re likely to see the buyer abandon the purchase.

Localise the checkout form. It’s important to localise the

checkout form with the local language, currency, and formats

Checkout optimisation is the most critical part of the purchase of the currency. The position left or right, of the currency

funnel. At the end of the day, if a buyer doesn’t purchase a product symbols and having the correct decimal or comma used

they have in their cart, the sale and everything that has been done locally is important. Some geographies might have more than

to get the customer to the checkout has been in vain. The good one as well. For example, checkout pages in Canada should

news is that there are ways to help reduce cart abandonment and have the option for both English and French languages and

see a completed sale. Canadian dollars as well as the American dollar if it’s accepted.

Also, if your buyer is using a different currency and there’s a

Creating a checkout that looks clean, secure, and functions conversion, make it clear if there are extra fees.

appropriately can create a seamless user experience and ultimately

optimise checkout. Aside from making it easy and holding the Be clear with taxes. Taxes are often added to the end of the

buyer’s hand throughout the entire purchase flow, here are some purchase and can surprise buyers if they aren’t aware they’re

best practices to achieve checkout success. coming. The more you make this clear on what the taxes are,

the fewer surprises and the greater opportunity for checkout

The more autofill, the better. The checkout form needs to be success. For example, bookings might not charge tax online

crystal clear, and the buyer should be familiar with what you’re but if you go to a hotel, they might. If the buyer is unaware, this

asking. If there’s something new or different, it creates confusion. could lead to major dissatisfaction.

It also makes it easier for the buyer if you have automatic settings

to help complete the form, and, when applicable, make the form Understand security and privacy requirements. It’s imper­

shorter. For example, it helps if the form has address lookup ative to be super aware of a user’s security and privacy and

services and allows autocomplete or has a check box to select if the current requirements and regulations. Make sure you have

the billing and shipping address are the same. It’s also key to show the relevant icons in place, such as the Payment Card Industry

the buyer a clear and friendly error message if something goes Data Security Standard (PCI DSS). Offer buyers to store their

wrong or is missing during checkout. card details for future purchases after receiving their explicit

consent. Returning buyers should be able to have a ‘one click’

Have an adaptable checkout form. Having a clean, short, and checkout experience but they also need to be able to update

simple checkout can make all the difference. This means the page their card and billing details to make this process effective

needs to be adaptable and professional on different devices. Some and seamless.

buyers prefer to make purchases on their phones, while others

100 Payment Methods Report 2022 | Optimising the Checkout Process: How to Win at Conversion and Retention
Company Profiles
 Company 2C2P
2C2P is a full-suite payments platform, helping global enterprises operating in emerging
markets to securely accept payments across online, mobile, and offline channels, as well
as providing issuing, payout, remittance, and digital goods services. It is the preferred
payments platform of tech giants, online marketplaces, retailers, and other global
enterprises.
Website https://2c2p.com
Head office Singapore
Core solution Omnichannel payment gateway with one point of integration helping global enterprises
securely accept over 250 payment methods and through an extensive alternative payment
network of over 400,000 physical touchpoints across Asia.
Target market Merchants: retail, aviation, tourism & hospitality, ecommerce, entertainment, tech, food &
beverage, social commerce
Fintech
Insurance
NGOs
Contact details https://2c2p.com/contact
Geographical presence Asia
Year founded 2003
Investors Advanced New Technologies (Singapore) Holding Pte Ltd
License type Relevant payment licences in each market, PCIDSS Level One, and other accreditations
here: https://2c2p.com/accreditations
Member of industry association MRC, IATA, EMVCo, various fintech associations
and/or initiatives
Company’s motto Payments that amplify your ambition
Service provider type
Payment Gateway Yes
Payment Service Provider – Yes
Acquirer
Payments and financial Yes
infrastructure
Channels – context
Online Yes
POS/In store Yes
Omnichannel Yes
Payments capabilities
Hosted pages Yes
White-label solution Yes
Recurring billing Yes
Payment methods supported (#) Yes – over 250 payment methods (online payments, local payments, alternative payments,
e-wallets, QR payments, mobile payments, point-of-sale, recurring payments, instalment
payments, Buy Now, Pay Later, payment link, consolidated reporting, risk management, 3-D
Secure authentication, plugins, mobile SDK, card and wallet issuing, payouts, multi-currency
converter, tokenization, loyalty and reward programme capabilities)
Settlement currencies (#) 48
Instant settlement Yes
Tokenization Yes
Pay-out/Disbursements Yes
Payments orchestration Yes

102 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Reconciliation and reporting Yes
B2B payments Yes
ERP integration Yes
E-invoicing (automated) Yes
Factoring Yes
Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Chargeback management Yes
Fraud ratio PSD2/SCA Less than 0.06%
Fraud and risk management Jewel Paymentech, Refinitiv World-Check One and our inhouse fraud monitoring tool
partners
Financial and compliance capabilities
FX – number of currencies Yes – We’re processing all major currencies
available
Virtual IBAN Yes
Multi currencies virtual IBAN (#) Yes
Current account/settlement Yes
account
Lending Yes
Instant settlement Yes
Client onboarding (KYC/KYB) Yes
Clients
Main clients/references Lazada, Changi Airport, Thai Airways, Aviva, Air Asia, Lenovo, IATA, Capella
Case studies https://2c2p.com/case-studies
Awards Forrester’s ‘Now Tech: Merchant Payment Providers In Asia Pacific – Large Established
Players category (2021); The Financial Times’ Asia Pacific High Growth Companies (2021);
Straits Times’ Fastest Growing Companies (2021); Thailand’s Prime Minister National Startup
Award: Global Tech Startup of the Year (2018); CB Insights Top 25 Global Payments Startup
(2015)
Transactions
Transaction volume Information available upon request
Transaction value Information available upon request

View company profile in online database

103 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company ACI Worldwide
ACI Worldwide delivers the software and solutions that power the global economy. Our
mission-critical real-time payment solutions enable corporations to process and manage
digital payments, power omni-commerce payments, present and process bill payments, and
manage fraud and risk.
Website https://www.aciworldwide.com/
Head office 6060 Coventry Drive, Elkhorn, NE 68022-6482 - US
Core solution ACI Worldwide serves the full payment ecosystem, processing and managing digital
payments, managing fraud and risk for merchants, banks, and intermediaries.
The company enables omni-commerce payments through secure ecommerce and omni-
commerce solutions, while also offering real-time multi-layered fraud management, including
machine learning.
Target market Merchants: retail, gaming and digital goods, travel, telecommunications, grocery,
restaurants, fuel and convenience, hospitality.
Merchant intermediaries/payment intermediaries, banking, consumer finance, insurance,
government, higher education, healthcare.
Marketplaces
PSP
Fintech
Banks
Brokers, crypto exchange, FX brokers
Contact details Annett Van de Bunt, Head of Marketing, Merchants Payments Solutions
Geographical presence Global
Year founded 1975
Investors Public listed company
License type APM agnostic and acquirer independent
Member of industry association MRC; NRF; MAG; Vendorcom; EBA; US Faster Payments Council; Open Banking; ATMIA;
and/or initiatives CEPS/ECRI; InfraGard; IFX; NACHA; NSPO; PSR; SWIFT; US Payments Forum; Women in
Payments, IMRG
Company’s motto Driving the digital transformation of banks, merchants, and billers to help them meet the
real-time payment needs of their consumers and business customers
Service provider type
Payment Gateway Yes - Payments and fraud software solutions provider, powering electronic payments and
currently serves more than 80,000 merchants; processing more than a billion transactions
annually via our platform.
Payments and financial ACI Worldwide provides an acquirer agnostic solution.
infrastructure ACI Worldwide provides end-to-end payments and risk management services. ACI solution
is white-label for merchant Intermediaries, such as PSPs, ISOs, payment facilitators, ISVs,
and acquirers, or can be used directly by merchants. It is a multi-language, multi-currency
solution, which is connected to hundreds of local and cross-border acquirers and alternative
payment methods across the globe.
Cryptocurrency payments Yes - 60+ cryptocurrencies
solution
Channels - context
Online Yes
POS/In store Yes
Omnichannel Yes
Payments capabilities
Hosted pages Yes
White-label solution Yes
Recurring billing Yes - ACI Worldwide provides scheduled flexible instalments for merchants to setup
subscriptions and recurring payments from a vast variety of options including monthly,
weekly, and daily.

104 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Payment methods supported Yes - ACI Worldwide supports hundreds of acquirers and payment methods globally. For
more details please visit: https://globalcoverage.aciworldwide.com
Settlement currencies ACI Worldwide supports acquirers’ settlement currencies
Instant settlement Collecting and settlement of all major APMs via best-in-class partners
Tokenization Yes. For more information please visit: https://www.aciworldwide.com/capabilities/
tokenization
Pay-out/Disbursements Yes. With ACI Billpay services for USA only
Payments orchestration Yes. ACI Secure eCommerce is a Payment Orchestration Platform enabling management
and optimisation of the entire payment process, including payment acceptance,
authorisation, transaction routing, and settlement.
Reconciliation and reporting Yes. ACI has unified settlement reporting. A consolidated settlement report format across all
acquirers and alternative payment service providers. We don’t transfer money.
B2B payments ACI Worldwide offers ERP integration, onboarding, factoring, e-invoicing, and AP automation
to lending and KYC.
ERP integration Yes
E-invoicing (automated) Yes - with ACI Billpay solution for the US only
Factoring Supported by our connected partners
Reporting/dashboards
Consolidated data and reporting Yes. The business intelligence functionality is available via a secure internet portal,
dashboard accessible anywhere in the world with no local setup or software requirements, with full
control in real time.
Fraud and risk management capabilities
Chargeback management Yes - integration to both VCR & MCOM and automated dispute management.
Fraud and risk management ACI Worldwide augments its Fraud Management solution with third party partners like
partners Arvato, Neustar, TransUnion, Ekata, LexisNexis, Threatmetrix, BigDataCorp, Perseuss.
Financial and compliance capabilities
FX - number of currencies ACI Worldwide is not an Acquirer/PayFac, but supports multi-currency with Secure
available ecommerce and omni-commerce solutions.
Virtual IBAN Yes - ACI Worldwide supports Virtual IBAN
Multi currencies virtual IBAN Yes - ACI Worldwide supports Virtual IBAN
Client onboarding (KYC/KYB) ACI Worldwide helps to facilitate KYC
Clients
Main clients/references Customer information upon request
Case studies For all ACI Worldwide case studies please visit: https://www.aciworldwide.com/insights/
case-studies
Awards Innovation Excellence Award from Frost & Sullivan for eCommerce Fraud Prevention 2020
- IDC MarketScape: Worldwide Integrated Payment Platforms 2019-2020 - Frost & Sullivan
2019 Global Product Leadership Award; Payments Awards 2021 - Best Online Payments
Solution - Merchant; 2021 Juniper Research – Platinum Winner Payment Innovation of
the Year; Retail Systems 2021 Award Artificial Project of the Year, AI Awards 2021 Best
Application of AI in a Large Enterprise
Future developments More information available upon request
Transactions
Transaction volume 225+ billion consumer transactions each year
Transaction value USD 14+ trillion in payments and securities transactions daily

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105 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

See Why 80,000 Merchants
Rely on ACI Worldwide
ACI Worldwide’s merchant solutions — ACI® Secure eCommerce™
and ACI Omni-Commerce™ — help more than 80,000 merchants,
directly and through PSPs, meet new customer expectations,
successfully navigate cross-border expansion, defeat rising fraud
threats and turn strong customer authentication into a
competitive differentiator.

Visit aciworldwide.com/solutions/aci-secure-ecommerce to learn more about our

flexible payments gateway — designed to maximize profitability and security.

©
Copyright ACI Worldwide, Inc. 2021
 Company AfterPay
AfterPay – from Arvato Financial Solutions, soon-to-be Riverty – lets consumers and
partners live their best financial lives. Their BNPL products are available in nine markets
in Europe and consist of five payment services: the 14-day Invoice, Campaign Invoice,
Consolidated Invoice, Fixed Instalments, AfterPay Flex, and soon-to-be-launched Split in 3.
Website www.afterpay.nl
Head office The Netherlands
How the payment method works Consumers select AfterPay to pay when shopping online. The payment is then due after
receipt of the order. Quick, easy, and safe. The payment term depends on the service that
the customer has selected. For connected merchants, AfterPay is a marketing, loyalty, and
payments tool in one. It means more orders and more revenue. Orders are always paid out.
Target market Merchants: fashion, sports, home decor, home improvement (DYI), beauty pharmaceuticals,
pet accessories and food, electronics, parking, public transportation, travel, other retail
Contact details support@afterpay.nl
Operational area Central and Northern Europe - Germany, the Netherlands, Sweden, Belgium, Austria,
Switzerland, Norway, Finland, and Denmark
Year founded 2010
Reach More than 100 million consumers
Acceptance More than 5,000 merchants in Europe
Market share NL: 34% of shoppers have used a PAD solution in the past 6 months (and 18% of all online
purchases are made using PAD). 48% of shoppers express an explicit PAD related need.
DE: 31% of shoppers have used a PAD solution in the past 6 months (and 10% of all online
purchases are made using PAD). 53% of shoppers express an explicit PAD related need.
Implementation requirements (non Direct integration or integration via PSP/ ecommerce platform
technical)
Company’s motto Shop now, pay later
Payments Type
Buy Now, Pay Later/Instalments/ Yes
Pay by invoice
- Business model Consumers complete their purchase, while not yet paying for the goods – this can be done
later when the consumer is certain to retain the products. AfterPay then sends the payment
instructions to the consumer, who can pay via the consumer portal/APP or via classical bank
transfer. Consumers also have the flexibility to pause a payment, convert it to an instalment
plan, or split payments.
- Payment instruments used No card needed to start the instalment plan. Independent risk scoring.
- Credit check Yes
- Credit application Yes, using local standards
- Late fees Depending on the country, order value, and step of dunning. Starting at EUR 2.50.
- Interest rates Starting at 0%
Channels
Online Yes
POS/In-store Yes
Omnichannel Yes
Services
Settlement currencies Like for like (EUR, NOK, SEK, DKK, CHF)
Processing currencies Local currency (EUR, NOK, SEK, DKK, CHF)
Currency available for customers Local currency
Implementation requirements Direct integration or integration via PSP/ ecommerce platform

107 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Chargeback/Buyer protection AfterPay does not enforce a strict buyer protection policy. Instead, we act as a moderator
and ensure a good experience for all parties involved.
Reconciliation With each settlement, a reconciliation file is created that includes all references needed
for an automated reconciliation process. The reconciliation can also be done via selected
partners.
Fraud prevention (measures)/Risk AfterPay takes over the full risk of a transaction – both from a credit risk and from fraud risk.
management Deeply integrated risk services can be applied.
Pricing/Fees structure Per-transaction processing fee (fixed amount) plus processing fee (variable amount on the
basket amount before or after returns). No setup fee.
Technology
Integration technology Direct integration via a server to server API (JSON REST) or via partners (PSPs/ ecommerce
platforms)
Integration support Dedicated integration manager as SPOC https://documents.afterpay.io/guidelines/
Technical_White_Paper.pdf

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108 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company Aplauz
Aplauz empowers people to make conscious spending online. The voucher is prepaid at
convenience stores and holds a digital credit value chosen by the customer. While paying
with Aplauz, only this value can be spent, and the user is protected from misuse or fraud
because it holds no personal data.
Website https://aplauz.com/
Head office Aplauz CH GmbH, Sihlbruggstrasse 107, 6340 Baar, Switzerland.
How the payment method works Customers buy vouchers with a 16 digit code in stores. When they select Aplauz as a
payment method at an ecommerce website, they will enter their 16 digit code and the
amount will be transferred from their voucher balance to the online merchant.
Target market Merchants: digital goods and services, gaming, entertainment, content, social media, VIOP,
telephony
Contact details Email: contact@aplauz.ch
Phone number: +41 43 588 14 08
Geographical presence Switzerland, expanding to Europe
Year founded 2020
Investors ICM/Alectus
License type EMI
Reach Switzerland, expanding to Europe
Acceptance More information available upon request
Market share More information available upon request
Member of industry association Electronic Money Association - https://e-ma.org
and/or initiatives
Implementation requirements (non Directly through our API
technical)
Company’s motto Conscious Spending Made Easy
Payments Type
Credit card Yes
Debit card Yes
Prepaid Yes
Online banking e-payments/ Yes
account-to-account payments
Cash Yes
Channels
Online Yes
POS/In-store No
Omnichannel Yes
Services
Settlement currencies CHF/EUR
Processing currencies CHF (Euro expected in 2022)
Currency available for customers CHF (Euro expected in 2022)
Implementation requirements Direct API
Chargeback/Buyer protection No
Automated and instant refund Yes, not instant
Reconciliation Digital files
Fraud prevention (measures)/Risk No
management
Pricing/Fees structure Per transaction fee
Future developments App, e-wallet

110 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Technology
Integration technology API integration
Integration support Yes
Transactions volume
Number of transactions (per More information available upon request
previous year)
Transactions value (amount in More information available upon request
USD/EUR representing the total
number of transactions per
previous year)

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111 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company BLIK (Polish Payment Standard)
BLIK is a mobile payment system. It enables ecommerce payments, POS payments
(including contactless payments), ATM cash withdrawals, and mobile P2P. BLIK has a
dominant share of the mobile payments in Poland. It has won many prestigious awards,
including the title of ‘FinTech of the Year’ in 2022 by Cashless.pl.
Website www.blik.com
Head office Warsaw, Poland
How the payment method works BLIK is a convenient, fast, and secure mobile payment method that does not require
logging into online banking. It allows users to pay in stationary stores and online, deposit
and withdraw money at an ATM, and make instant payments to phone numbers. Thanks
to Mastercard’s tokenization technology, consumers are able to use contactless BLIK
payments via their phone in a secure and convenient way, wherever Mastercard payments
are accepted.
Target market Merchants (ecommerce)
Marketplaces (ecommerce)
Paying agents (acquirers)
Banks
Contact details kontakt@blik.com
Operational area Poland
Year founded 2015
Investors Alior Bank, ING Bank, Millennium Bank, mBank, PKO Bank Polski, Santander Bank Poland,
and Mastercard
License type Polish National Bank payment scheme
Reach 21.6 million mobile banking app users in Poland
Acceptance 100% ecommerce in Poland, 75% POS with BLIK code, 100% POS contactless, 95% ATM
Market share More information available upon request
Implementation requirements (non Polish bank account required. EU license for acquiring with notification from the Polish
technical) Financial Authority.
Company’s motto We are experts in creating modern payment solutions
Payments Type
Payments Type Account-based mobile payments
Channels
Online Yes
POS/In-store Yes
Omnichannel Yes – P2P, ATM, ecommerce, POS, contactless payments
Services
Settlement currencies PLN
Processing currencies PLN
Currency available for customers PLN
Implementation requirements Polish bank account required. EU license for acquiring with notification from the Polish
Financial Authority.
Chargeback/Buyer protection Chargeback – No
Buyer protection – Yes, transaction confirmation by SCA
Automated and instant refund Automated refund – Yes
Instant refund – No
Reconciliation Reconciliation file in XML format
Fraud prevention (measures)/Risk Based on the issuer side
management
Pricing/Fees structure More information available upon request
Future developments BNPL

113 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Technology
Integration technology API – web services
Integration support UAT – testing environmental
Transactions volume
Number of transactions 763 million in 2021
Transactions value EUR 22.2 billion in 2021

View company profile in online database

114 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 POLISH MOBILE PAYMENT SCHEME
ABOUT BLIK
Secure, fast and convenient mobile payment scheme

BLIK is a popular Polish mobile payment scheme, one of the first on the European market with a unique model
of cooperation between banks.

Every customer of domestic payment institutions offering mobile banking applications has a possibility to
use BLIK in their mobile banking applications.

The Polish Payments Standard (PPS) is responsible for the system development. PPS is constantly developing
BLIK capabilities in order to make the system as functional as possible for its users.

The shareholders of the PSP company are: Alior Bank, Bank Millennium, Santander Bank Polska, ING Bank Śląski,
mBank, PKO Bank Polski and Mastercard.

HOW TO USE IT?

One BLIK, many possibilities

ONLINE convenient, simple and fast payments

PAYMENTS . . . . . . in e-commerce (100% of Polish e-commerce)

CASH DEPOSITE withdrawal with phone

AND WITHDRAWALS ATM . . . . . . . . . . . . (90% of the market)

IN-STORE payment in two ways

PAYMENTS . . . . . with BLIK code or contactless (877k terminals)

MOBILE P2P instant payments in real time

TRANSFERS . . . . . . . . . . . . . . . . . (12.2M apps P2P ready)

BLIK IN NUMBERS
10,5 MILLION active users

over 95% of all clients BLIK CODE - INDIVIDUALLY GENERATED

18 BANKS
of financial institutions in Poland ONE-TIME 6-DIGIT STRING AVAILABLE
IN BANK’S MOBILE APP
transactions
OVER 1,5 BILLION in 7 years

transaction value
BLIK THE FIRST CHOICE FOR
44 BILLION EURO
in 7 years PAYMENTS AT THE END OF 2021

BLIK GOES GLOBAL The most frequently selected I use at least sometimes

45%
43%
PPS is a member of European Mobile Payment 40%
36%
System Association and Society for Worldwide
Interbank Financial Telecommunication system.
22%
19%
17%
15%
BLIK became contactless and accepted globally –
thanks to the partnership with Mastercard. 6% 6% 7%
2%

Cooperation with partners such as PPRO VISA MASTERCARD GPAY APPLE PAY REVOLUT

and Adyen contributes to growing the global

Source: KANTAR POLAND, X-XII 2021, CAWI N=640, smartphone owners,
e-commerce acceptance network. mobile applications users on smartphone (including banking applications)
 Company Callsign
Callsign makes digital life smoother and safer by helping organisations establish and
preserve digital trust so people can get on with their digital lives.

The first true representation of identity online, Callsign positively identifies users by their
unique characteristics, replicating real-life recognition signals with AI models.

The only solution to identify people across every journey, channel, and brand, Callsign
makes digital identification seamless and secure, helping drive business growth.
Website www.callsign.com
Target group Banks/FS
Fintech
Merchants/ecommerce
PSP/acquirers
Telecom
Other (marketplaces – regulated entities)
Contact details sales@callsign.com
Geographical presence Global
Year founded 2012
Member of industry association MRC, BRC, UK Finance
and/or initiatives
Company’s motto Helping you build digital trust so people get on with their digital lives
Core solution
Categories Fraud/risk management and decisioning platform
Customer authentication
Identity verification
Behavioural biometrics
Data provider and intelligence
Bot risk management
KYB/Merchant onboarding
KYC
Problems the company solves Callsign’s Intelligence-Driven Authentication (IDA) positively identifies users based on their
inherent characteristics.

We use deep learning techniques combining event, threat, and behavioural analytics with
multi-factor authentication to provide risk intelligence in real time – enabling organisations to
intelligently adjust authentication journeys and catch fraudulent activity more effectively.

With Callsign, you can deliver seamless experiences and greater security at a lower cost.
Technology
Technology Cloud enabled
Native cloud
On-premise
Hybrid
Data input
Identity verification proprietary capability third party both
Identity document scanning x
Video scanning x
Personally Identifiable Information x
(PII) validation
Small transaction verification x
Email verification x
Phone verification x
Social verification x
Credit check x
Compliance check x

116 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Online authentication proprietary capability third party both
Behavioural biometrics x
Physical biometrics x
Device fingerprinting x
Geo-location x
Remote access detection x
Mobile app push x
3-D Secure 2.0 x
Hardware token x
One-time passwords x
Knowledge-based authentication x
Intelligence proprietary capability third party both
Abuse list x
Monitoring x
Address verification x
Credit bureau x
Information sharing x
Data ingestion/third-party data
Stateless data ingestion and x
augmentation
Methodology
Machine learning Rule-based
Supervised ML
Decisioning
Manual review
Decision orchestration
Business model
Pricing model Bespoke/For more details, please contact our sales team.
Fraud prevention partners For more details, please contact our sales team.
Year over year growth rate For more details, please contact our sales team.
Number of employees For more details, please contact our sales team.
Future developments A pioneer in digital identity, Callsign is developing unique, marketing leading capabilities,
including gamified authenticators and real time social engineering prevention technology.
Customers
Customers reference For more details, please contact our sales team.

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117 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company Checkout.com
Checkout.com is a global payments solution provider that ​helps businesses and their
communities thrive in the digital economy. It offers innovative solutions that flex to your
needs, valuable insights that help you get smart about your payments’ performance, and
expertise you can count on as you navigate the complexities of an ever-shifting world.
Website www.checkout.com
Head office Wenlock Works, Shepherdess Walk
London, N1 7LH
United Kingdom
Core solution With Checkout.com’s modular technology, clients can seamlessly add the features they
need, manage risk and fraud, and add new payment methods to support their growth in
multiple markets. Our local expert teams around the world are on standby to help you
improve your payments performance, navigate the regulatory landscape, and switch on
new business models with ease.
Target market Digital enterprise businesses
Ecommerce
Fintech
Crypto
Contact details sales@checkout.com
Geographical presence Europe, North America, Middle East and North Africa, Asia Pacific, Latin America
Year founded 2012
Investors Coatue, Insight Partners, DST Global, Blossom Capital, Endeavour Catalyst, Singapore
Sovereign Wealth Fund (GIC), Tiger Global Management, Greenoaks Capital, Altimeter,
Dragoneer, Franklin Templeton, the Qatar Investment Authority, the Oxford Endowment Fund
License type Checkout.com has acquiring capabilities in 55 countries.
Member of industry association UK Finance, Innovate Finance, European Fintech Association, European Payment
and/or initiatives Institutions Federation, Merchant Risk Council, Merchant Advisory Group, MENA Fintech
Association
Company’s motto Payments for the digital economy
Service provider type
Payment Service Provider – Yes
Gateway
Payment Service Provider – Yes
Merchant Acquirer /Processor
Payments and financial Yes
Infrastructure
Cryptocurrency payments Yes. Checkout.com processes payments for the world’s leading crypto exchanges and
solution provides merchant settlement in stablecoins.
Channels – Context
Online Yes
POS/In store No
Omni channel No
Payments capabilities
Hosted pages Yes
White-label solution Yes
Recurring billing Yes
Payment methods supported (#) Checkout.com allows merchants to accept all major credit and debit cards, including Visa,
Mastercard, American Express, and Discover. Merchants can also accept a wide variety of
global and local alternative payment methods, including Apple Pay, Google Pay, PayPal,
SEPA, Klarna, iDeal, Fawry, Knet, Qpay, mada and Alipay.
Learn more: https://www.checkout.com/payment-methods

119 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Settlement currencies (#) 25+
Instant settlement Yes
Tokenization Yes
Pay-out/Disbursements Yes
Dynamic routing Yes
Intelligent routing/routing Yes
optimisation
ERP integration Yes. Visit https://www.checkout.com/partners for more information
Reconciliation and reporting Yes
Onboarding Yes
Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud & Risk Management Capabilities
Chargeback management Yes
Fraud ratio PSD2/SCA Yes
Fraud and Risk Management Yes
Partners
Financial and Compliance Capabilities
FX – number of currencies 150+
available
Current account/settlement Yes
account
Instant settlement Yes
Client onboarding (KYC/KYB) Yes
Clients
Main clients/references SHEIN, Grab, Veepee, SONY Electronics, Patreon, Wise, Henkel, Getty Images
Case studies https://www.checkout.com/case-studies
Future developments Checkout.com will be scaling its operations to meet demand in the US, evolving its platform
with solutions for marketplaces and payfacs, and strengthening its position in Web3.
Transactions
Transaction volume Checkout.com does not share this information
Transaction volume (USD/EUR) Checkout.com does not share this information

View company profile in online database

120 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company COINQVEST
COINQVEST is a leading enterprise cryptocurrency payment gateway and API. Our mission
is to enable companies to thrive in the Web3 economy and help them grow their business
with blockchain-based payment processing. With COINQVEST, merchants and financial
service providers can easily extend their existing payment infrastructure with secure,
reliable, and compliant cryptocurrency payment methods.
Website https://www.coinqvest.com
Head office Tallinn, Estonia
Core solution COINQVEST is a comprehensive cryptocurrency payment processing solution providing
merchants and PSPs:
- crypto and fiat merchant accounts;
- a real-time white-label API allowing customers to offer branded blockchain crypto
payments, deposits, swaps, transfers, refunds, KYC/AML, and exception handling;
- elimination of fiat/crypto exchange volatility;
- product/service price guarantees: product lists for EUR 100, customer pays in Bitcoin,
merchant receives EUR 100;
- straightforward integration with SDKs and shopping cart plugin;
- crypto payments with verified sender/receiver data, financial reports and exports, and
order information for tax/regulatory compliance.
Target market Merchants in digital commerce: ecommerce, SaaS companies, subscription-based
businesses, NFT vendors, content producers, online gaming, etc.
Marketplaces
PSP (e.g. mobile payment apps, traditional payment gateways and processors, money
remittance services, wallets, digital banks)
Fintech
Banks
Crypto, FX
Contact details service@coinqvest.com
Geographical presence Globally available with a focus on Europe
Year founded 2018
Investors Fully owned by the founders
License type European Virtual Currency Service Provider License issued by the Estonian FIU
Member of industry association Stellar Network Tier 1 Validators Quorum, https://developers.stellar.org/docs/run-core-node/
and/or initiatives tier-1-orgs/
Company’s motto Easily extend your payment infrastructure with cryptocurrency payments
Service provider type
Payment Gateway Yes
Payment Service Provider – Yes
Acquirer
Payments and financial Yes
infrastructure
Cryptocurrency payments Yes
solution
Channels – context
Online Yes
POS/In store Yes – Integration into POS systems via white-label API
Omnichannel Yes – Integration into omnichannel solutions via white-label API

122 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Payments capabilities
Hosted pages Yes
White-label solution Yes – The complete payment infrastructure is available via the COINQVEST white-label API
incl. checkouts, deposits, refunds, withdrawal, swaps.
Payment methods supported (#) Yes – BTC, ETH, LTC, XLM
Settlement currencies (#) Yes – Fiat: EUR, USD, ARS, BRL, NGN. Crypto: BTC, ETH, LTC, XLM
Instant settlement Yes – COINQVEST settles all payments instantly. Instant settlement is a platform feature with
no extra fees charged.
Tokenization Yes – COINQVEST uses tokenised assets issued on the Stellar Network.
Pay-out/Disbursements Yes – Payout to crypto wallet or bank account.
Payments orchestration Yes – For crypto and fiat currencies listed here: https://www.coinqvest.com/en/connectivity
B2B payments Yes
ERP integration Yes
E-invoicing (automated) Yes
Reporting/dashboards
Consolidated data and reporting Yes – Consolidated financial reporting across multiple cryptocurrencies and fiat currencies.
dashboard
Financial and compliance capabilities
FX – number of currencies Yes – 50 currencies
available
Multi currencies virtual IBAN (# of Yes – Multi currencies merchant account (cryptocurrencies and fiat currencies)
currencies)
Current account/settlement Yes
account
Instant settlement Yes – COINQVEST settles all payments instantly. Instant settlement is a platform feature with
no extra fees charged.
Client onboarding (KYC/KYB) Yes – KYB
Clients
Main clients/references More information available upon request
Case studies https://stellar.org/case-studies/coinqvest
Awards Winner of the Stellar Seed Fund in 2021
Winner of the Stellar Community Fund in 2020
Future developments Add bank deposits and stablecoin payment options
Transactions
Transaction volume > 100,000 transactions
Transaction value > EUR 10 million

View company profile in online database

123 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company Currence iDEAL B.V.
Currence is the brand owner of iDEAL (payments), iDIN (identification) and Incassomachtigen
(e-mandates). It draws up rules for the use of these products, certifies market parties (PSPs
and suppliers), after which these parties conclude a licence and/or certificate agreement
with Currence.

Website https://www.ideal.nl/en/
Head office Gustav Mahlerplein 33-35, Amsterdam, the Netherlands
How the payment method works iDEAL is the number one online payment brand in the Netherlands. It enables
Dutch consumers to pay online through their own bank. Originally, iDEAL was designed
for webshop payments, but nowadays, it is increasingly used to pay energy bills, make
donations to charities, buy mobile credits, pay local taxes, traffic fines, etc. iDEAL provides
an immediate online payment guarantee to the payee. This allows them to deliver the
goods and services right away. The money is transferred via a SEPA Credit Transfer to the
beneficiary. See https://www.ideal.nl/en/ for more information. We are in the process of
expanding iDEAL with new payment flows and Value Added Services.
Target market iDEAL is an online payment method, not specifically bound to target markets. Examples
of branches which use iDEAL are ecommerce, marketplaces, ticketing, e-invoices, charity
donations & top-ups.
Contact details Email: ideal@currence.nl
Operational area Worldwide for merchants; consumers with a EU bank account with one of the certified
issuers
Year founded 2005
Investors Currence is a private company which shares are held by the founding banks.
Reach 100% of the Dutch online shoppers and a few EU online shoppers uses iDEAL to pay
Acceptance 213,111 active merchants in 2021
Market share 70% In Dutch ecommerce
Implementation requirements (non Corporate bank account, Chamber of Commerce registration (at a minimum).
technical)
Company’s motto Provide payers the right balance in confidence and convenience, and provide payees with
reach and conversion
Payments Type
Online banking e-payments/ Yes
account-to-account payments
Channels
Online Yes
POS/In-store Yes, via iDEAL QR
Omnichannel Yes
Services
Settlement currencies EUR
Processing currencies EUR
Currency available for customers EUR
Implementation requirements Depending on the iDEAL contracting partner of the merchant
Chargeback/Buyer protection No
Automated and instant refund No
Reconciliation Based on datafields provided by merchants
Pricing/Fees structure Depending on the iDEAL contracting partner of the merchant
Future developments Major improvement of the iDEAL infrastructure to API technology. New services in scope:
iDEAL Scheduled, iDEAL Checkout

124 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Technology
Integration technology XML, HTTPS
Integration support Provided by acquirers, PSPs, various IT providers and open source community
Transactions volume
Number of transactions 1.14 billion (2021)
Transactions value EUR 99 billion (2021)

View company profile in online database

125 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company Diebold Nixdorf, Incorporated
Diebold Nixdorf is a leader in enabling connected commerce. We automate, digitise, and
transform the way people bank and shop. A partner to most of the world’s top 100 financial
institutions and top 25 global retailers, our integrated solutions connect digital and physical
channels conveniently, securely, and efficiently for millions daily.

Website www.dieboldnixdorf.com
Head office 50 Executive Pkwy
Hudson, OH 44236
United States
Core solution Vynamic Payments is a modern API and micro-services platform that allows the reuse of
services across acquiring, processing and issuing domains. Through a simple single-entry
point, clients can access a comprehensive suite of proven solutions which supports diverse
payments needs and securely executes transactions across all channels, devices, and
payment methods, globally.
Target market Banks
Processors
Contact details maryjo.harroff@dieboldnixdorf.com
Geographical presence Global
Year founded 1859
Investors Publicly held company (NYSE: DBD)
License type Payments Software License
Member of industry association Member Mobey Forum, The Payments Association, European Banking Association
and/or initiatives
Company’s motto We automate, digitise, and transform the way people bank and shop
Service provider type
Payment Service Provider - Yes - White-label Software Solutions
Acquirer
Payments and financial Yes
infrastructure
Channels - context
Online Yes
POS/In store Yes
Omnichannel Yes
Payments capabilities
Hosted pages Yes
White-label solution Yes
Recurring billing Yes
Payment methods supported Yes - credit, debit, mobile, alternative payments
Settlement currencies Yes - configurable
Instant settlement Yes
Tokenization Yes
Payments orchestration Yes
Reconciliation and reporting Yes

126 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Fraud and risk management Confidential
partners
Financial and compliance capabilities
FX - number of currencies Configurable
available
Clients
Main clients/references Confidential
Future developments Real-Time Payments, Open Banking, etc.
Transactions
Transaction volume More information upon request
Transaction value More information upon request

View company profile in online database

127 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

Is Your Payments
Platform Ready
for the Future?
Your customers are using
new payment types, new
authentication methods,
new transaction types, and
even new currencies—and
they expect you to keep up.

Diebold Nixdorf’s Vynamic® Payments is the next

generation in payments processing software, a cloud-
native platform built to power the ongoing transformation
of the financial services and payments industry. Choosing
a partner that already has the tools needed to rapidly
configure new payment offerings can optimize your
modernization path without the arduous processes, risk,
and expense of a complete system overhaul.

Leapfrog to the next generation in

payments processing in a true cloud-
native environment with Diebold Nixdorf.
DieboldNixdorf.com/Payments
 Company GoCardless
GoCardless is the global leader in direct bank payment solutions, making it easy to collect
recurring and one-off payments directly from customers’ bank accounts through direct debit
and open banking. Each year, GoCardless processes more than USD 30 billion in payments,
across more than 30 countries.
Website https://gocardless.com/
Head office Sutton Yard, 65 Goswell Road, London EC1 7EN
How the payment method works We have built a global network for direct bank pay that allows merchants to pull funds
automatically from their customers’ bank accounts. Merchants can connect directly to the
GoCardless dashboard to manage their payments or via one of the 200+ partner integrations
that provide a seamless experience. Our global network allows merchants to collect
recurring payments from their customers’ bank accounts and settle them back in their home
country, with FX dealt with automatically.
Target market Merchants of all sizes, from small businesses to multinational corporations across: Financial
Services, Insurance, Information Technology, Energy & Utilities, Communications & Media,
Health & Wellbeing, Consumer Goods, and Services
Contact details help@gocardless.com
Operational area 30+ countries including: UK, US, France, Germany, ANZ
Year founded 2011
Investors Permira, Black Rock Private Equity Partners
Reach 20 million
Acceptance 70,000
Implementation requirements (non Bank account
technical)
Company’s motto GoCardless build simple and secure bank payment solutions. For businesses everywhere.
Payments Type
Online banking e-payments/ Yes
account-to-account payments
Direct debit Yes
Buy Now, Pay Later/Instalments/ Pay by Invoice
Pay by invoice
- Business model White-label
- Payment instruments used Direct Debit
Channels
Online Yes
POS/In-store No
Omnichannel No
Services
Settlement currencies GBP/EUR/SEK/DKK/AUD/NZD/CAD/USD
Processing currencies GBP/EUR/SEK/DKK/AUD/NZD/CAD/USD
Currency available for customers GBP/EUR/SEK/DKK/AUD/NZD/CAD/USD
Implementation requirements Bank account required
Chargeback/Buyer protection Yes - via the Direct Debit Guarantee
Automated and instant refund Yes
Reconciliation Yes - via partner integrations
Fraud prevention (measures)/Risk Yes
management
Pricing/Fees structure https://gocardless.com/pricing/
Future developments Open banking, fraud protection, payment intelligence (machine learning)

129 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Transactions volume
Number of transactions More information upon request
Transactions value over USD 30 billion

View company profile in online database

130 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

Time is money.
Literally.
Designed for one-off payments, Instant Bank Pay by GoCardless
offers settlement timings up to seven times faster compared to
credit cards. This means no more waiting around to find out if you’ve
been paid so you can deliver your customers’ goods or services.

Powered by open banking, Instant Bank Pay is the ideal way to

collect one-off payments in a fast, secure and reliable way. It can be
added to your existing checkout flow and it provides both you and
your customer with an instant confirmation once a payment has
been successful. This gives you greater visibility over transactions
and added peace of mind if you’re collecting a first payment.

Visit gocardless.com
to find out more

Check gocardless.com for terms and conditions

 Company Jifiti
Jifiti is a leading global fintech company that powers white-labelled Buy Now, Pay Later
solutions for banks, lenders, and merchants. Jifiti provides cutting-edge technology and
innovative solutions for regulated financial entities and merchants to compete in the growing
BNPL market.
Website www.jifiti.com
Head office Columbus, Ohio
Core solution Jifiti’s white-labelled BNPL platform enables banks and lenders to easily deploy and scale
any consumer financing programme, including instalment loans, lines of credit, and split
payments, at any merchant’s point-of-sale. With the multi-lender solution, merchants can
maximise their customer approvals and conversions - online, in-store, and via call center.
Target market Banks
Fintech
PSP
Merchants: retail, department store, furniture, electronics, appliances, lifestyle, sports and
outdoor equipment, dental services, medical devices, educational services, automotive,
fitness, toys and entertainment, veterinary services, travel, wedding, luxury and accessories
Contact details Maya Mason (VP Marketing, Jifiti) maya.mason@jifiti.com
Geographical presence US, Europe, Africa, Middle East, LATAM
Year founded 2011
Investors Available upon request
License type Available upon request
Company’s motto Providing access to affordable and responsible financial solutions when and where it matters
most.
Service provider type
Payments and financial Yes
infrastructure
Channels - context
Online Yes
POS/In store Yes
Omnichannel Yes
Payments capabilities
Hosted pages Yes
White-label solution Yes
Recurring billing Yes
Payment methods supported Network Cards, PayPal, Open Banking Payments
Settlement currencies USD, Euro, GBP
Instant settlement Yes
Tokenization Yes
Pay-out/Disbursements Yes
Payments orchestration Yes
Reconciliation and reporting Yes
B2B payments Yes
E-invoicing (automated) Yes
Reporting/dashboards
Consolidated data and reporting Yes
dashboard

132 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Fraud and risk management capabilities
Chargeback management Yes
Fraud ratio PSD2/SCA Less than 0.01%
Fraud and risk management Forter, Equifax, CRIF, DirectID, TransUnion, Experian, Seon, Open Banking partners
partners
Financial and compliance capabilities
Lending Yes - Jifiti facilitates this service
Client onboarding (KYC/KYB) Yes
Clients
Main clients/references Citizens Bank, Credit Agricole, CaixaBank, LendingUSA, Mastercard, IKEA

View company profile in online database

133 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company Nuvei
Nuvei (Nasdaq: NVEI) (TSX: NVEI) is tomorrow’s payment platform. Designed to accelerate
customers’ business, Nuvei’s modular, flexible and scalable technology allows leading
companies to accept next-gen payments, offer all payout options and benefit from card
issuing, banking, risk and fraud management services. Connecting businesses to their
customers in more than 200 markets, with local acquiring in 45+ markets, 150 currencies
and more than 570 alternative payment methods, Nuvei provides the technology and
insights for customers and partners to succeed locally and globally with one integration.
Website Nuvei.com
Head office Montreal
Core solution Nuvei allows businesses to accept cutting-edge payment options, optimise new revenue
streams, and get the most out of their existing tech stack – all on one platform.
Target market Merchants: financial services, consumer retail marketplaces, digital goods & services, social
gaming, regulated online gaming, digital assets and cryptocurrencies and travel
Contact details https://nuvei.com/contact/
Geographical presence Europe, North America, LATAM, Asia Pacific, MENA
Year founded 2003
Investors More information available upon request
License type Payment Institution (EEA), Electronic Money Institution (EEA), Principal member of Visa,
Mastercard, and Discover
Member of industry association ETA (Electronic Transactions Association), AGA (American Gaming Association), AMVO
and/or initiatives (Mexican Association of Online Sales), CGA (Canadian Gaming Association), RMAI
(Receivables Management Association International), Nacha 3rd Party Validation Preferred
Partner, Faster Payments Council, Merchant Risk Council, Merchant Advisory Group,
Wespay.
Company’s motto Tomorrow’s Payment Platform
Service provider type
Payment Gateway Yes
Payment Service Provider - Yes
Acquirer
Payments and financial Yes
infrastructure
Cryptocurrency payments Yes
solution
Channels - context
Online Yes
POS/In store Yes
Omnichannel Yes
Payments capabilities
Hosted pages Yes
White-label solution Yes
Recurring billing Yes
Payment methods supported (#) over 550
Settlement currencies (#) 17+
Tokenization Yes, universal token
Pay-out/Disbursements Yes
Payments orchestration Yes
Reconciliation and reporting Yes

135 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 B2B payments Yes
ERP integration Yes
E-invoicing (automated) Yes
Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Chargeback management Yes
Fraud ratio PSD2/SCA < 0.06%
Fraud and risk management In-house Risk Engine
partners
Financial and compliance capabilities
FX - number of currencies 150
available
Virtual IBAN Yes
Multi currencies virtual IBAN (# of Yes
currencies)
Current account/settlement Yes
account
Instant settlement More information available upon request
Client onboarding (KYC/KYB) Yes
Clients
Main clients/references New Balance, GM, Gucci, FTX, Avon, Draft Kings, Valentino, BetMGM, Crypto.com, D&G,
Shein, FanDuel, WestJet, Entain, Bumble, Rappi, Riot Games, Gett, lastminute.com, WIX
Case studies Kreatorhood - https://nuvei.wistia.com/medias/c3dgxqiv43
Gett - https://nuvei.wistia.com/medias/8ovibgdlli
Fortuna - https://nuvei.wistia.com/medias/hccaalsak8
Awards Blockchain Fest, Cryptocurrency Awards, Best Payment Processor 2021;
SBC Awards, Payment Innovation of the Year 2021;
The EGR (EGR Global) Italy Awards 2020, Winner Payments and Fraud Company;
Airlines & Travel Payments Summit 2018, Winners of Best product;
Reconciliation ManagerSBC Awards 2018, Winners The Payments Provider of the Year;
Retail Systems Awards 2019, Winners Mobile Solutions of the Year.
Future developments More information available upon request
Transactions
Transaction volume Total volume increased 121% to USD 95.6 billion from USD 43.2 billion in the year to end
December 31, 2021.
Transaction value Revenue increased 93% to USD 724.5 million from USD 376.2 million in the year to end
December 31, 2021

View company profile in online database

136 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Tomorrow's
Payment Platform
 Company Payla Services GmbH
PAYLA is a true white-label ‘Buy Now, Pay Later’ service provider for European payment
service companies and Financial Institutions. Our clients are able to provide fully integrated
BNPL products to their merchant customer portfolio.

Website https://payla.de
Head office Munich (Germany), Vienna (Austria)
Core solution The PAYLA software platform is a complete turnkey solution covering all aspects of
BNPL, including automated risk assessment for credit scoring and fraud, invoicing, debtor
management, accounting, dunning, and multi-channel customer support.
Additionally, PAYLA and its bank partners can provide full refinancing of any invoice and
instalment volume, if required.
Our customers from the payment and banking industry are able to offer BNPL products to
their merchant clients within weeks, simply by configuring product features and connecting
to the PAYLA platform via a simple API.
PAYLA is one of the few true white-label BNPL providers: we do not sell our services directly
to merchants. We do not use our brand name in front of merchants or consumers.
Target market Payment Service Providers
Fintechs
Financial Institutions
Marketplaces
Contact details roberto.valerio@payla.de
Geographical presence Europe
Year founded 2021
Member of industry association MRC
and/or initiatives
Company’s motto BNPL-as-a-Service. True white-label ‘Buy Now, Pay Later’ products for Payment Service
Providers and Financial Institutions
Service provider type
Payments and financial Yes
infrastructure
Channels - context
Online Yes
POS/In store Yes
Omnichannel Yes
Payments capabilities
Hosted pages Yes
White-label solution Yes
Recurring billing Yes
Payment methods supported BNPL: Invoice, Instalments, SEPA Direct Debit
Settlement currencies Yes
Instant settlement Yes
Pay-out/Disbursements Yes
Reconciliation and reporting Yes
B2B payments Yes
E-invoicing (automated) Yes
Factoring Yes

138 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Fraud and risk management In-house risk engine. Various risk data providers
partners
Financial and compliance capabilities
Current account/settlement Yes
account
Lending Yes
Instant settlement Yes
Client onboarding (KYC/KYB) Yes
Clients
Main clients/references Large Payment Service Providers, Financial Institutions (retail banks)
Future developments One-click BNPL for POS

View company profile in online database

139 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company PPRO
We’re PPRO (pronounced ‘p-pro’). We globalise payment platforms for businesses so they
can offer more choices at the checkout and boost cross-border sales.
Payment service providers, enterprises, and banks that run on our infrastructure are
able to launch payment methods faster, optimise checkout conversions, and reduce the
complexities of managing multiple fund flows.
Website https://www.ppro.com/
Head office Global offices from São Paulo to Singapore
Core solution Our digital payments infrastructure provides the services, network, and people that
businesses need to globalise their payment platforms and win more customers.
Target market PSPs
Enterprises with payment platforms
Banks
Contact details https://www.ppro.com/contact/
Geographical presence The US, Europe, the UK, APAC, LATAM
Year founded 2006
License type Regulated in the UK by the FCA and in Luxembourg by the CSSF
Member of industry association MRC
and/or initiatives
Company’s motto Build better payment experiences faster.
Service provider type
Payment Service Provider - Yes. An end-to end (proprietary) acquiring infrastructure giving access to an industrial-
Acquirer strength suite of global products and providers, enabling you to manage all of them via one
master interface. A turnkey service underpinned by cutting-edge/360-degree orchestration
gives you total flexibility to decide what you need to support your acquiring business whilst
eliminating single-vendor dependence (via 360-degree orchestration). ‘Acquiring-as-a-
service’ ensures no costly integration builds to schemes, no heavy maintenance overheads,
allows you to focus on your core business, eliminates redundant tasks, and prevents
financial leakage.
Payments and financial Yes. Global digital payments and all fundamental services, including reporting, reconciliation,
infrastructure settlement, tax services, consultancy as strategic advisors and compliance, legal and
regulatory services on a global scale. Plus a full suite of risk and fraud management services
for both real-time payments and chargeback management.
Cryptocurrency payments Yes
solution
Channels - context
Online Yes
POS/In store Yes
Omnichannel Yes
Payments capabilities
Hosted pages Yes
White-label solution Yes
Recurring billing Yes
Payment methods supported All relevant local payment methods in 100+ markets
Settlement currencies Yes
Instant settlement Yes
Tokenization Yes
Payments orchestration Yes
Reconciliation and reporting Yes
B2B payments Yes

140 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Chargeback management Yes
Fraud and risk management Yes
partners
Financial and compliance capabilities
FX - number of currencies Yes
available
Virtual IBAN Yes
Client onboarding (KYC/KYB) Yes
Clients
Main clients/references Mollie, PayPal, Spring by Citi, Elavon, Global Payments, Alipay, and many more
Case studies Testimonial from PayPal https://www.youtube.com/watch?v=6fdWikceWtw
Testimonial from Global Payments https://www.youtube.com/watch?v=UGANUSJvXA
Awards PayTech Awards 2022 (shortlisted for Top PayTech Provider) ; Retail System Awards 2022
(shortlisted); PayTech Awards 2021 ‘Best Cross-Border Payments Solution’ (winner);
Payments Awards 2021 (shortlisted) ‘Payment Technology Provider of the Year’, and more.
Future developments PPRO has recently acquired Alpha Fintech, a next-gen payments technology company.
Read more here: https://www.ppro.com/news/ppro-acquires-alpha-fintech-in-game-
changing-deal/

View company profile in online database

141 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

Get
the right payment methods set up on your payment platform or page and you’ll sell
more. Just make sure they are the right payment methods. They will also need to
be quality integrations. Otherwise, they won’t convert at the checkout. Oh, and you’ll
need to have a payment rail in place to move money from A to B to C to YOU. And if
you’re breaking into a new market, you might need a local banking presence. You’ll also
need to figure out the regulatory landscape, and the compliance stuff, and the fraud
prevention stuff. All of this (and more) will take time. In fact, it can take up to a year to
launch a single payment method. So if you’ve got time to spare and don’t mind doing

paid.
all this yourself, good luck. But just so you know, there is a faster and easier way to build
out your payments offering and get

Build your payment platform on our infrastructure

and start selling sooner.

Visit ppro.com
 Company Tinka B.V.
Tinka is a deferred payments service provider based in the Netherlands, registered and
authorised by the Netherlands Authority for Financial Markets (AFM). With more than half
a century of experience in the deferred payments sector, we offer various solutions to our
merchant partners and their customers. These solutions include Buy Now, Pay Later, and
different consumer credit options.
Website www.tinka.com
Head office Zwolle, the Netherlands
How the payment method works Tinka offers the whole scope of payment solutions from unregulated BNPL products such
as ‘Pay in 14 days’ and ‘Pay in 3’ with 0% interest rate for the consumer to a regulated
consumer credit option with 9.9% interest, in online and offline stores. Consumers have the
flexibility to switch between these payment options easily in order to avoid going into debt.
Target market Merchants: fashion, electronics, home and garden, furniture, e-mobility
PSP
Contact details Karlheinz Toni, CEO, charly@tinka.com
Operational area The Netherlands, Benelux region
Year founded 2021
Investors Tinka is owned by a Private Equity Fund Apax Partners
License type Registered and authorised by the Netherlands Authority for Financial Markets (AFM)
Reach 3+ million
Acceptance 30+ merchants
Market share 7% of a total market
Implementation requirements (non More information available upon request
technical)
Company’s motto Be the most responsible and recommended deferred payments provider in the Netherlands
and beyond. A key goal is minimising the risk for customers to end up with payment
difficulties.
For customers, Tinka represents simplicity, responsibility, transparency, and convenience.
Payments Type
Debit card Yes
Prepaid Yes
Buy Now, Pay Later/Instalments/ Yes, all
Pay by invoice
- Business model Direct provider
- Payment instruments used No card needed to start instalment plan. Independent risk scoring.
- Credit check Yes
- Credit application Yes
- Late fees Tinka applies no late fees
- Marketplace app Yes
- Interest rates 9.9% for consumer credit; 0% for Pay in 14 days and Pay in 3.
- Consumer protection More information available upon request
- B2B commerce We are providing our services to merchants
Channels
Online Yes
POS/In-store Yes
Omnichannel Yes

143 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Services
Settlement currencies EUR
Processing currencies EUR
Currency available for customers EUR
Implementation requirements Direct integration via API, connection through PSP partners or through available plugins
such as Woocommerce, Shopware, Magento. Cashier system integrations available, as well
as various card terminal integrations.
Chargeback/Buyer protection Yes, we pay back as soon as possible after a return or complaint is completed by the
merchant. Most of the times within two working days.
Automated and instant refund Yes
Reconciliation More information available upon request
Fraud prevention (measures)/Risk Yes
management
Pricing/Fees structure Based on the merchant processed volume, no setup fee is applied.
Future developments More information available upon request
Technology
Integration technology Direct integration via a server-to-server API (JSON REST), via partners (PSPs/ ecommerce
platforms) or via plugins (WooCommerce, Magendo, Shopware), various cashier systems
and card terminal integration available.
Integration support https://portal.tinka.nl/
Transactions volume
Number of transactions More information available upon request
Transactions value More information available upon request

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144 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company Trustly
Trustly is a global leader in Online Banking Payments. Our digital account-to-account
platform redefines the speed, simplicity and security of payments, linking some of the world’s
most prominent merchants with consumers directly from their online banking accounts.
Trustly can handle the entire payment journey, setting us apart from the competition and
enabling us to offer an attractive alternative to the traditional card networks at a lower cost.
Website www.trustly.com
Head office Stockholm, Sweden
How the payment method works When a consumer selects Trustly as the payment method in the checkout, they are, without
leaving the site, presented with a bank selector. After selecting their bank, they are asked
to verify themselves with their bank-provided authentication method, before choosing from
which account to pay. Finally, they confirm their purchase. With Trustly Express, returning
customers can have both their bank and account preselected, meaning that they can
complete their purchase with a single biometric authentication check on their phones,
cutting time spent in checkout in half.
Target market Merchants: ecommerce, travel, digital goods, subscriptions, online gaming
Financial Services
Contact details presales@trustly.com
Operational area Europe, US, Canada, Australia
Year founded 2008
Investors Nordic Capital, BlackRock
License type We are a licensed Payment Institution under the Second Payment Services Directive (PSD2)
and operate under the supervision of the Swedish Financial Supervisory Authority in Europe.
In the US, we are state regulated as required to serve our target markets.
Reach 525 million consumers
Acceptance We serve 8,100 merchants, connecting them with 6,300 banks in over 30 countries.
Implementation requirements (non API integration directly with Trustly or through one of over 50 PSPs. Settlement made to
technical) a European bank account or your PSP. Merchants do not need a local legal entity or bank
account (i.e. a German company can accept payments from Sweden).
Company’s motto Fast, Simple, and Secure
Payments Type
Online banking e-payments/ Yes
account-to-account payments
Direct debit Yes (Sweden, UK)
Channels
Online Yes
POS/In-store Yes
Omnichannel Yes
Services
Settlement currencies EUR, SEK, NOK, DKK, GBP, PLN, CZK, BGN, HUF, HRK, RON
Processing currencies EUR, SEK, NOK, DKK, GBP, PLN, CZK, BGN, HUF, RON, USD, CAD
Currency available for customers EUR, SEK, NOK, DKK, GBP, PLN, CZK, BGN, HUF, RON, USD, CAD
Implementation requirements API integration directly with Trustly or through one of over 50 PSPs. Settlement made to
a European bank account or your PSP. Merchants do not need a local legal entity or bank
account (i.e. a German company can accept payments from Sweden)
Learn more via our developer portal, developers.trustly.com
Chargeback/Buyer protection Instant refunds; zero risk of chargebacks
Automated and instant refund Instant refunds
Reconciliation Full reconciliation of funds settled is available through Trustly’s API or integrated with your
PSP.

146 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Fraud prevention (measures)/Risk Full risk management system including: Data Checks, Comparison Checks, Velocity Checks,
management Financial Background Checks etc.
Pricing/Fees structure Per transaction percentage and/or fixed fee, which varies depending on volume
Future developments Expanding to new geographies, new product launches and continued development of
existing services.
Technology
Integration technology JSON API
Integration support API manual online, designated integration support, plugins for web shops and platforms,
SDK for apps.
Transactions volume
Number of transactions (per More information upon request
previous year)
Transactions value (USD/EUR) USD 21 billion in 2020

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147 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company Worldline
Worldline is the European leader in the payments and transactional services industry and the
#4 player worldwide. As an agile and fast-growing global leader, Worldline is at the forefront
of the digital revolution that is shaping new ways of paying, living, doing business, and
building relationships.
Website www.worldline.com
Head office Tour Voltaire
1 place des degrés
CS 81162
92059 Paris la Défense Cedex
Core solution Our solutions ensure secure payments and trusted transactional services along the entire
payments value chain, enabling sustainable economic growth. We provide an extensive
range of merchant acquiring, payment processing, and business solutions to financial
institutions, merchants, corporations, and government agencies. Our continuously growing
portfolio of solutions is environmentally friendly and supports trust and social transformation.

We operate in more than 50 countries and employ over 20,000 talented and dedicated
experts. With a strong culture of innovation, Worldline helps clients anticipate the future,
seize new opportunities, and navigate their challenges with confidence.
Target market Merchants: retail, luxury and specialised brands, hospitality, travel, transportation,
entertainment
Marketplaces
PSPs
Fintech
Banks
Contact details More information upon request to infoWL@worldline.com
Geographical presence Geographical presence in more than 50 countries and commercial activities in more than
170 countries.

EUROPE
Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary,
Italy, Latvia, Lithuania, Luxembourg, Malta, Norway, Poland, Portugal, Russian Federation,
Slovakia, Slovenia, Spain, Sweden, Switzerland, the Netherlands, Ukraine, the UK

AMERICAS
Argentina, Brazil, Canada, Chile, Colombia, Costa Rica, Ecuador, Peru, Mexico, Paraguay,
the US, Uruguay, Venezuela

AFRICA AND THE MIDDLE EAST

Morocco, South Africa

ASIA-PACIFIC
Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the
Philippines, Singapore, Taiwan, Thailand, Vietnam
Year founded 2004
License type Payment service provider
Member of industry association The European Digital Payments Industry Alliance (the EDPIA)
and/or initiatives
Company’s motto Digital Payments for a Trusted World
Service provider type
Payment Gateway Yes
Payment Service Provider – Yes
Acquirer
Payments and financial Yes
infrastructure
Cryptocurrency payments Yes
solution

148 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Channels – context
Online Yes
POS/In store Yes
Omnichannel Yes
Payments capabilities
Hosted pages Yes
White-label solution Yes
Recurring billing Yes
Payment methods supported Yes, more than 150
Settlement currencies Yes
Tokenization Yes
Pay-out/Disbursements Yes
Payments orchestration Yes
Reconciliation and reporting Yes
B2B payments Yes
ERP integration Yes
E-invoicing (automated) Yes
Factoring Yes
Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Chargeback management Yes
Fraud and risk management Yes
partners
Financial and compliance capabilities
FX – number of currencies Yes
available
Current account/settlement Yes
account
Client onboarding (KYC/KYB) Yes for acquiring and collecting
Clients
Main clients/references Circa 1.1 million merchants like Accor Hotels, Spotify, Subway, TOTAL – and more than 320
financial institutions such as BNPP, Commerzbank, ING, UniCredit
Case studies BNPP and Worldline launched the first banking app on macOS in France:
https://worldline.com/en/home/knowledgehub/blog/2021/april/how-bnpp-and-worldline-
launched-the-first-banking-app-on-mac-os-in-france.html

Exclusive guest experiences for a best-in-class service:

https://worldline.com/content/dam/worldline-new/assets/documents/case-studies/
michelreybier_success_story_case_study.pdf
Future developments Stablecoins – next generation regulated digital currencies:
https://worldline.com/en/home/knowledgehub/blog/2021/february/stablecoins-next-
generation-regulated-digital-currencies.html
Transactions
Transaction volume 17 billion payment transactions per year, 9.6 billion issuing processing transactions, and
11 billion acquiring processing transactions
Transaction value More information upon request to infoWL@worldline.com

View company profile in online database

149 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Your partner in
cross-border payments
Combining global reach with local business, technology, and payment expertise.
Worldline helps enterprises enhance their global strategy and thrive in high-growth
markets with our online cross-border expansion solutions.

Explore our
solutions:

worldline.com/crossborder
 Company Xsolla
Xsolla is a global video game commerce company with a powerful set of tools and services
designed for the games industry. As a leader in game commerce, Xsolla solves the complexities
of global distribution, marketing, funding, and monetisation for games across mobile, PC, and
the web.

Website xsolla.com
Head office Los Angeles, USA
Core solution Payments Solution is Xsolla’s core solution which allows game developers and publishers
of all sizes to reach more players worldwide and securely accept global payments with a
streamlined user experience across multiple platforms.
Target market Merchants: gaming
Contact details business@xsolla.com
Geographical presence Worldwide
Year founded 2005
Company’s motto Enjoy the game
Service provider type
Payments and financial Yes
infrastructure
Cryptocurrency payments Yes
solution
Channels - context
Online Yes
POS/In store No
Omnichannel No
Payments capabilities
Hosted pages Yes: Pay Station Checkout Page
Recurring billing Yes
Payment methods supported Yes, 700+ payment methods
Settlement currencies Yes: 15+
Tokenization Yes
Pay-out/Disbursements Yes
Payments orchestration Yes
Reconciliation and reporting Yes
B2B payments Yes
Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Chargeback management Yes
Fraud ratio PSD2/SCA 0.07%
Fraud and risk management In-house anti-fraud system
partners
Financial and compliance capabilities
FX - number of currencies Yes, 130+ currencies
available
Client onboarding (KYC/KYB) Yes

151 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Clients
Main clients/references Take Two, Steam, Sega, Roblox Corp., Ubisoft, Krafton, Epic Games, Bigben
Case studies xsolla.com/portfolio
Awards The Best Service Provider Award at the Mobile Games Awards
Future developments Available upon request
Transactions
Transaction volume Confidential
Transaction value Confidential

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152 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

 Company Zimpler AB
Zimpler offers simpler and more secure transactions without the need for cards. Specialising
in account-to-account payments, we are trusted by consumers and merchants across
Europe to pay and get paid. With a newly launched rebranding, we are rapidly expanding in
key markets, with a mission to simplify payment transactions everywhere.
Website www.zimpler.com
Head office Döbelnsgatan 12, 113 58 Stockholm, Sweden
How the payment method works Merchants and customers can pay and get paid instantly using Zimpler.
For customers this is done with 4 simple steps:
1. Select Zimpler at checkout
2. Log in to your bank
3. Select the bank account to withdraw money from
4. Authorise the payment to complete the transaction.
Target market Merchants: retail, travel, gaming
Marketplaces
Fintech
Contact details Reach out to Zimpler through our contact form at www.zimpler.com.
Operational area Sweden, Finland, Norway, Germany, the Netherlands, Estonia, Latvia, Lithuania
Year founded 2012
Investors Nordstjernan Growth, Inbox Capital, CNI
License type Payments Institutions
Company’s motto Pay. Get Paid.
Payments Type
Online banking e-payments/ Yes
account-to-account payments
Channels
Online Yes
POS/In-store No
Omnichannel No
Services
Settlement currencies SEK/NOK/EUR/PEN
Processing currencies SEK/NOK/EUR/PEN
Currency available for customers SEK/NOK/EUR/PEN
Implementation requirements It depends on the merchant and vertical. Zimpler has its own network of corporate banks
and entities in the markets it operates.
Automated and instant refund Yes. Instant refunds are available to the merchants.
Reconciliation Our merchants have access to Zimpler’s back office portal where they can download
reconciled transaction data.
Fraud prevention (measures)/Risk Yes, we have a dedicated fraud and AML team that performs risk and fraud detection
management screenings.
Future developments We will be expanding in new markets this year as well as new market segments. New
markets will include full settlement and processing in each respective currency.
Technology
Integration technology Cloud-based tech stack utilising PSD2 APIs, and corporate APIs from available banks,
to process payins and payouts.
Integration support A customisable payment flow allows our merchants to stay on-brand throughout the
checkout experience.

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154 PAYMENT METHODS REPORT 2022 | COMPANY PROFILES

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