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70 pct of webshops get mobile payments - Adyen

Friday 25 April 2014 | 08:17 CET | Background

Mobile payment is real for 70 pct. of all online merchants, global omnichannel payments provider Adyen reports in its Mobile Payments Index, Q1. Consumer acceptance is growing rapidly, Adyen Chief Commercial Officer Roelant Prins says.

Adyen has over 3,500 business customers. Transaction volume over the payment network totaled over USD 14 billion in 2013. The fourth edition of the Mobile Payments Index covers the first three months of 2014. 20.2 percent of all payment transactions over the Adyen network come from mobile devices, a 66 pct. increase compared to the same period twelve months ago.

Of these mobile payments, almost 54% is initiated from a smartphone. Tablet use decreased from 49 pct. in December 2013 to 46 pct. at the end of March. Apple leads both categories. Nearly 31 pct. of all transactions is handled by iPhone, compared to 22.5% for Android. Windows Phone (0.6 pct.) and BlackBerry (0.1 pct) play a small role. 38.4 pct. of all transactions is handled by iPad, 7.6 pct. by Android tablet.

Adyen gives a breakdown for five e-commerce verticals: Travel, Retail, Ticketing, Digital Goods and Gaming. Average value per travel transaction grew to EUR 145 for tablets, EUR 57 for smartphones. The value for pc averaged EUR 203, indicating that a larger screen is still preferred for finding and comparing travel arrangements.

The average value for tickets shows little variance over platforms, between 44-47 euros. The Gaming vertical is decreasing in value as the business models shifts towards Freemium and In App Purchase, which Adyen does not report.

Payments services

Adyen has its roots in commerce, facilitating payment for websites. A user entering his credit card number or selecting one of the other options is engaging the Adyen back office over a secured connection. Adyen supports hundreds of payment methods from around the world in various currencies.

A growing number of merchants has optimized their website for mobile users, smaller screens and touchscreen navigation.The line between e-commerce and m-commerce is somewhat blurred – is couch surfing on a tablet that much different from couch surfing on a notebook? On the other hand, the screen size and text input are different.

We strongly suggest our customers to go beyond e-commerce”, Chief Commercial Officer Roelant Prins says. “Build an app”. Features like Client Side Encryption enable the encryption of the shopper payment data on the payment page directly in an app or on the shopper’s browser. Tokenization of payment data enables merchants to initiate a payment requested by a shopper using a secure token linking to safely stored payment data on Adyen server.

With that functionality, users can fill in their data once and repeat payments in one click. Prins cites taxi service Uber as an example of a company that accepts payments globally with one app. Groupon is another case study.

“Consumer acceptance has grown tremendously,” Buyers are growing more confident with trusting their credit card to a merchant, to shop for fashion, or to replenish the wine cellar every now and then.

That being said, the perception of safety and privacy is paramount – as Dutch retail bank ING found out. The comments were unfavourable when ING announced it would offer insights into historical transaction data to third parties. Mobile Wallets that store everything have been around for several years, but their success is limited.

Multi-channel

Adyen invests a lot of time and effort in multi-channel propositions: e-commerce, m-commerce and point-of-sale. All transactions are handled in the same way, with the same tools for clearing and settlement, risk management and business intelligence.

Prins says that many Adyen clients use one e-commerce platform for every market, but are still forced to maintain different contracts for point-of-sale (POS), with different terms and conditions and equipment.

Adyen wants to offer PO S to go full circle. It sells its own payment terminal, the Shuttle, but has also been certified for a number of vendors, running its own software on other equipment. An option is to run the terminal in Client Mode, using Cloud based middleware.

The target customer for this kind of applications is not found in coffee endors and the like, but in large retail chains offering multi-channel sales. “We can identify valuable customers, for instance buyers who have made payments both online and in physical shops and reward those”.



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