The Payment Methods Report 2021

Insights into Payments and Beyond
Payment Methods Report 2021

Latest Trends in Payment Preferences
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Payment Methods Report 2021
Latest Trends in Payment Preferences
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Foreword
Anda Kania
Lead Editor for Payments and

Commerce, The Paypers
The demand for a frictionless, contact-free, and secure shopping experience has greatly increased ecommerce turnover in the last 12 months.
So, industry players, mainly Payment Service Providers and merchants, should focus even more on offering choice at checkout to reach new
markets and new customers.
Thus, we go to the next level and bring out to our readers a comprehensive overview of the payment methods in scope for 2021, as well as
best practices for checkout optimisation by addressing digital transformation, security, and localisation.
Furthermore, beyond these key aspects of reach, conversion, and costs, the industry has seen an impressive dynamic this year, with several
mergers, acquisitions, and investments in Buy Now, Pay Later (BNPL) and Open Banking Payments companies. Events such as Visa buying
Tink or Klarna being valued at 31 billion suggest a powerful business environment to watch.
What you will find in this report

Payment methods in high gear – latest trends and developments
With the increase in online commerce and payment methods, merchants, as well as other payments players, are under additional pressure to
implement payment offerings that consumers are comfortable with. Therefore, we depict how Account-to-Account (A2A) payments, BNPL,
mobile payments, and payment cards have been developed to meet acceptance and adoption in the payments ecosystem.
The global adoption of real-time payment systems has accelerated the development of A2A payments, which rely on the strength of banking
payment systems. Moreover, PSD2/Open Banking further stimulates innovation in this space. The angles approached on this topic reveal if
cards are still here to stay and how regulations, technology, and competition can work as growth factors.
BNPL is a two-sided approach matter – on one hand, an indicator of innovation that could support the surge of the ecommerce market; on the
other hand, a process that is ‘not enough regulated’ and can have hard consequences on the consumers. BNPL providers and analysts grant
their insights into this part, presenting their views on the evolution of this trend.
Paying by card is a method complemented by a large number of alternatives, from A2A payments to e-wallets, direct debit, prepaid (cash and
vouchers), direct carrier billing, cryptocurrencies – and lately, CBDCs. All these payment methods have their own place in this report, where their
evolution within the market and their path towards future growth are illustrated. Moreover, one can learn that cards can move up a notch to stay
competitive, by offering – through biometrics and tokenization – the convenience and security that consumers look for when paying online. ➔
3 Payment Methods Report 2021 | FOREWORD

Foreword
The merchants’ perspective
We have interviewed merchants from various verticals – retail, gaming, streaming media – on the changes they noticed in terms of the way in
which their end-consumers pay, what measures they have taken so far to meet consumers’ demand, and how they see the future of payments
driven by Gen Z and Millennials. Seasoned payment managers from Jumia, Kinguin, Mango, Wargaming.net, and Wayfair share their expertise
in a bid to further support peer-to-peer knowledge and provide our readers with an in-depth view of the merchants’ payment strategies.
Checkout optimisation and customer conversion

Offering the right payment mix at the checkout is crucial to avoid abandonment rate, yet conversion regards more than having customers
spoiled for choice. In this section we address three factors of high importance for an optimal online shopping experience:
• digital transformation: what ecommerce surge means for innovation amid and post-pandemic, including for certain verticals such as travel;
• localisation: the latest updates on PIX in Brazil, as well as insights into Southern Europe;
• security: recognising the specific threats that all existing payment methods pose.
Buy Now, Pay Later infographic

We offer an accurate picture of the players in this space mapped worldwide, from Americas to EMEA and APAC, as well as a couple of business
models for companies such as Klarna, Affirm, Splitit, Uplift, AfterPay, Atome, Divido, and many more. We display key information related to
how their service works, as well as their payment instruments, credit check and application procedures, late fees and interest rates.
Facts and figures

We display the size of the market for each payment method along with the latest events around them, such as investments, mergers and
acquisitions, product launches, partnerships, and recent infrastructures. We believe it could be very useful for our readers, for instance, to
know that mobile commerce, the seamless integration with social media, and the rise of 5G push the success of e-wallets in Asia – or that the
mass adoption of real-time payment systems around the globe has accelerated the evolution of A2A payments.
Payment methods 101

This section explains how payment instruments and methods work and what are the different categories. We essentially describe ten categories –
debit cards, credit cards, prepaid, e-wallets, A2A payments, direct debit, payment by invoice, cash, direct carrier billing, and cryptocurrencies.
Lastly, we display a section on company profiles featuring key players in the global online payments market, including PSPs and APMs.
In addition, companies will also be included in our comprehensive company database, giving readers unprecedented access to stakeholders
in global industries.
With a strong educational focus, we aim to bring knowledge on customer expectations and disruptive developments, so we kindly invite you
to explore this report to understand what you need in order to stay ahead of the curve in this digital-first era.
Enjoy your reading!
4 Payment Methods Report 2021 | FOREWORD

Table of Contents
3 Foreword
8 Payment Methods in High Gear – Latest Trends and Developments

9 The Way People Pay and Shop: Trends to Watch In 2021 | Anda Kania, The Paypers
13 Payment Methods Featured in This Report
17 Account-to-Account Payments
19 The Death of Cards: Why 2021 Is a Tipping Point for Account-to-Account, and How It’ll Change the Payments
Landscape Forever | Siamac Rezaiezadeh, GoCardless
21 The Inevitable Rise of Account-to-Account Payments | Ciaran O’Malley, Trustly
23 A2A Payments Essentials and the US Market Growth | Interview with Craig McDonald, Trustly
25 The Rise of A2A Payments: What Should Retailers Look Out For? | Martha Southall, CMSPI
27 Buy Now, Pay Later

29 The Upsides and Downsides of ‘Buy Now, Pay Later’ Payment Methods | Mark Beresford, Edgar, Dunn & Company
31 BNPL Increasingly Important to Attract Heavy Online Shoppers | Johan Rönnerman, AfterPay
33 Buy Now, Pay Later in Asia: How Atome Drives Retail Business Growth as Merchant Enabler | Interview with
David Chen, Atome
35 The Deferred Payment Market Is Heating Up | Lily Varón, Forrester
37 The Blind Side of Buy Now, Pay Later | Sheridan Trent, The Strawhecker Group (TSG)
39 Buy Now, Pay Later Global Mapping
52 Mobile Payments: E-wallets and Super Apps

53 Mobile Payments: Key Market Developments | Nick Maynard, Juniper Research
55 BLIK and the Future of Payments in Poland | Dariusz Mazurkiewicz, BLIK – Polish Payments Standard
57 Building a Digital Wallet for the Future with Huawei Pay | Chuanyong Ma, Huawei Technologies
59 E-wallets Latest Trends: About Challenges and Consumer Trust | Úna Dillon, Merchant Risk Council
62 Mobile Payments and Super Apps in Latin America | Juan Pablo Ortega, Rappi
64 QR Codes
65 QR Codes and the Chinese Consumers’ Digital Opportunity for European Businesses | Jonathan Quin, Ant Group
67 Quick Response: Pandemic Highlights Opportunities for Technology to Grow in Western Markets | Ryan Tuttle,
Euromonitor
5 Payment Methods Report 2021 | TABLE OF CONTENTS

Table of Contents
69 Direct Carrier Billing

70 The Evolution of the Alternative Payments Landscape in 2021 and Beyond | Jonathan Bennett, DOCOMO Digital
72 Debit and Credit Cards

74 5 Use Cases for Biometrics in Payments Beyond Cards | Steve Cook, ID R&D
76 Here’s What Payments Professionals Need to Know About Card-on-File Tokenization | Jason Bohrer,
U.S. Payments Forum
78 Prepaid Payments
79 How Aplauz Is Making Online Payments a Win-Win-Win Game | Goran Abramović, Aplauz
81 Direct Debit
82 The 5 Keys to Successful Payment Management for Subscription-Based Companies | Martin Koderisch,
Edgar, Dunn & Company
84 Cryptocurrencies and CBDCs

86 Will China Pave the Way for Large-Scale CBDC Usage? | Gonzalo Santamaria, Currency Research
88 Paying With Cryptocurrencies: Now More Opportune than Ever | Marie Tatibouet, Gate.io
90 Checkout Optimisation and Customer Conversion
91 Digital Transformation
92 Real-Time Payments Poised to Push the Needle in Ecommerce | Debbie Guerra, ACI Worldwide
94 What Comes After the Pandemic: Agile Transformation for the Payments Industry | Claire Gates, PPRO
96 Pay When You Fly: Supporting Travel’s Recovery With Flexible Payment Options | Jean-Christophe Lacour,
Amadeus Payments
98 The Rise of Digital Wallets and Disappearance of Plastic Cards | Isabelle Isil Ugurlu, elumeo SE
100 Get Invited to Go Outside and Play – Exploring New Payment Experiences | Sally Baptiste, Payment Operations Group
102 Security
103 The Most Common Fraud Threats for Individual Payment Methods | Neil Govender, Fraugster
105 Localisation
106 The Adoption and Usage of PIX in Brazil | Interview with Alain Delcourt, BoaCompra
108 Financial Inclusion and Digital Innovation in LATAM | Interview with Gustavo Ruiz Moya, SafetyPay
110 Southern Europe at the Crossroads of Innovative Payments | Andréa Toucinho, Partelya Consulting

Table of Contents
112 The Merchants’ Perspective – Mini-Interviews on Customer Behaviour

113 Jumia | Sami Louali
114 Kinguin | Faheem Bakshi
115 Mango | Carlos Madrona
116 TIDAL | Melissa Gentile
117 Wargaming.net | Elena Emelyanova
118 Wayfair | Attila Doğan
119 Payment Methods 101
133 Company Profiles
134 Payment Methods
158 Payment Service Providers

Payment Methods in High Gear –
Latest Trends and Developments
The Paypers
The Way People Pay and Shop: Trends to Watch In 2021
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
After observing and adapting to the changes that took place in The direction ecommerce is moving regards also the way con
the payments industry in 2020, it is now time to assess which sumers pay and their shopping habits. When it comes to payment
trends have become more prominent and what fuels the digital methods, cards and e-wallets are still the two heavyweights, but
transformation further in the ecommerce space. Account-to-Account (A2A) payments and Buy Now, Pay Later have
gained momentum in the last 12 months with good traction even
The growth of ecommerce regards three main trends to watch: before the pandemic. So it’s important to know what the latest
progress in this field is to understand their future roadmap. As well,
Customer behaviour and expectations – Consumers have less invisible payments, the omnichannel experience and the continuous
patience with cumbersome checkouts, and they look for a safe rise of subscription-based payments offer the perspective of how
and convenient way to shop. They want an ‘anytime, anywhere, ecommerce and payments will continue to evolve this year and
on any device’ experience, fast shipping, fast returns and funds. beyond.
As ownership shifts to access, consumers want the latest technology
available at their fingertips, all the time. They also demand a variety Account-to-Account payments
of payment options, flexible pricing options, the ability to customise PSD2 and Instant Payments are accelerating innovation around
the package, and the freedom to pause and resume services at any Account-to-Account payments in Europe. A2A transfers in Europe
time, something that subscriptions services may offer. account for around 13% of checkouts. In the Netherlands, Finland,
Sweden, and the Baltics Account-to-Account payments are the
Technology-driven innovation – Mobile apps, APIs, cloud technology, dominant payment method.
blockchain, AI, IoT, and data analytics enable fintechs and big
techs to provide superior alternatives for existing payment offerings In India, UPI (launched in 2016) has seen phenomenal success
(e.g. embedded payments). domestically. UPI has been developed by the National Payments
Corporation of India (NCPI), India’s real-time payments system.
Regulatory frameworks and standards – PSD2 and Open Banking The interface, regulated by the Reserve Bank of India facilitates inter-
are defining new methods for payment acceptance and payment bank transactions connecting multiple bank accounts to a single
mechanisms if we look at the emergence of instant payments. mobile application, which allows transferring of money and payments
Standards such as EMVco clarifies aspects in the ecommerce and instantly, 24/7. Users can link their bank accounts to multiple peer-
online payment ecosystem, such as convenience and security – with to-peer (P2P) payment apps, such as Paytm, Google Pay, PhonePe,
EMV Secure Remote Commerce Specifications (SRC), consumers MobiKwik, and BHIM (NCPI’s P2P app), among others. ➔
can ‘enjoy a checkout experience that is familiar, convenient, secure,
and trustworthy’. Consumer-facing programmes and solutions using
EMV SRC specifications are known as Click to Pay.
9 Payment Methods Report 2021 | Payment Methods in High Gear – Latest Trends and Developments
The international tech giants Google, Amazon, Alibaba, and Face that between 2 and 5% of all transactions will be migrated to the
book have all taken great interest in UPI and benefited from its new method of payment or a significant share of a market worth
design. Google has very successfully used UPI to shift ecommerce more than USD 100 billion in France.
payments in India from card-based to account-based. Their success
in India has led to Google directly encouraging the Federal Reserve In March 2021, Giropay, a Germany-based online banking payment
to adopt a similar approach when implementing the next generation system has announced the merger with paydirekt, an online
of payments infrastructure in the US. payment method for banking, and Kwitt, a mobile payment method
used via SEPA transfer. In the multi-month phase, Giropay will be
In Brazil, PIX has registered 1 billion transactions since its launch, established as a higher-level payment brand for both customers
and it already has 230 million registered keys (each user can have up and retailers. Over time, the Giropay Money Sending function will
to three PIX registration keys). According to Brazil’s Central Bank, be integrated with existing Kwitt procedures. Those banks that
ecommerce transactions initiated by individuals represented 9.1% already offer Kwitt P2P can switch over to Giropay Money Sending.
and 8% of the total, in terms of quantity and value, respectively.
The Bank also states that when it comes to the adoption rate of PIX Investments
(i.e. the number of transactions per inhabitant of the country), it is As an additional indicator of the potential of this payment method,
already the second-fastest-adopted system, only behind Denmark. here is a quick look at where the money goes and who’s investing
in who.
In 2020, the US Federal Reserve unveiled new details about its
FedNow Service – a real-time payments platform that would enable The BlackRock Private Equity Partners consortium acquired
financial institutions in the US to clear and settle transactions a minority stake in Trustly, a Sweden-based company that lets
virtually in real-time. ACI Worldwide’s recent ‘Prime Time for Real- customers pay merchants directly through their bank accounts.
Time’ report predicts that with two schemes live – Zelle and ACH – TechCrunch reported that the business was valued at over USD
and FedNow launching by 2023, real-time payment transactions in 1 billion in the deal, but the exact terms were not disclosed.
the US will increase six-fold by 2025.
GoCardless, a digital payments company based in the UK, has
In the coming years, according to an interview with Trustly featured raised USD 95 million in an investment round. To include more
in this report, A2A payments are expected to grow significantly due businesses in accepting A2A payments and replacing more costly
to three main factors: card transactions, the startup will invest the capital in its Open
Banking strategy.
• various innovations in technology, including more convenient bank

authentication methods and sophisticated verification methods; Sweden-based Tink, which aggregates several banks and financial
• the regulatory framework that paved the way for Open Banking services via API so they can be accessed via new channels, has
and other areas, such as Open Finance; raised EUR 85 million (about USD 103 million) at a post-money
• a competitive environment that leads to improved products for valuation of EUR 680 million (around USD 825 million). This capital
consumers as well as for merchants. will be used to expand its network of banks and payment services
in Europe.
Latest developments
An effective pilot in France will be a key step towards realising Buy Now, Pay Later
the EBA’s vision of combining the PSD2 APIs with the SEPA instant BNPL has been known by different names and forms decades ago.
payment rails, which is a crucial aspect of the EBA’s vision for In the DACH region, pay by invoice was very popular – customers
combining two major initiatives. The new payment method will bring could choose and try goods from the catalogues before paying for
several advantages to French ecommerce merchants, especially them. Payment by instalments has always been a common practice
those offering more expensive goods or services. According to in LATAM and Turkey, with the services being offered mainly by
merchants involved in the project working group, they anticipate banks, being linked to both online and offline payment options. ➔
The uplift in BNPL solutions use is being driven mainly by Gen Z (and SaaS) platforms are driving deeper engagement with their
and Millennials looking for convenience and low-interest options. users, monetising it along the way.
The Worldpay report stated that pay later accounted for 2.1% of
ecommerce transactions in 2020 and is expected to double by This type of integration has been lately explored in the context of
2024. In addition, there are expectations that the BNPL platforms social media. Considering a large number of users and the way
market will reach USD 33,638.3 million by 2027, expanding at a ecommerce has moved towards this space for better reach and
CAGR of 21.2%. A dominant position in the market is anticipated conversion, several payment providers have integrated into social
for the fashion industry during the forecast period. media and messaging platforms, as depicted in the image below.
In recent years, bigtech companies such as Amazon and PayPal
have also embraced the BNPL business model. Payment services
including short-term, interest-free payments have been added to
PayPal’s financing options in March 2021, Pay in 4 (available in the
US and France), and PayPal credit (available in the US and UK).
Furthermore, Visa launched its BNPL pilot programme in 2020
in the US, and Mastercard will conduct test programmes with
its Mastercard Consumer Installment (MCI) platform outside the
United States.
Investments Embedded payments are expected to go mainstream with the
Several investments in BNPLs have occurred around the world in market size being estimated to USD 7 trillion by 2030. The most
the last 12 months, indicating their market potential will continue explored sectors will likely be those that provide convenience
to grow, and here are a few examples. by their very nature, such as food delivery, ride-sharing, in-car
payments (pay-at-pump and parking), and gaming, but certainly,
Klarna has been involved in two funding rounds over the past in retail, BNPL options will be further explored as inherent to
12 months, reaching a valuation of USD 31 billion. The company embedded finance.
raised USD 650 million in an equity funding round in September
2020, aiming to further invest in its shopping offerings, expand its Customer behaviour: out and about shopping
presence worldwide, and consolidate its market position in the US, During the pandemic, many retailers had to reorganise their
and in March 2021, it added USD 1 billion. Klarna is a New Zealand- ecommerce operations to curbside pickup or Buy Online, Pick Up
based competitor for pay later landscape, having recently entered In Store (BOPIS) solutions. This habit is still here to stay, although
this market as part of its expansion strategy. many nations are out of lockdowns now. For instance, in the US,
67% of shoppers have used BOPIS in the past six months and
In the US, the BNPL industry is getting a lot of attention, so investors it is estimated that 10% of all sales will be fulfilled by Click
might also see the potential. In 2020, QuadPay, an instalment and Collect by 2025. And the in-store shopping is very likely to
platform acquired by Zip, raised USD 200 million to expand its go back to normal, but with more use of contactless payments.
offerings across the US. In a recent private placement and share Nevertheless, for the commerce industry, there was never more
purchase plan (SPP), Splitit, a company that facilitates payments evident that the current shopping experience is fully omnichannel
via credit cards, raised USD 71.5 million for investments in sales, and multichannel.
marketing, product development, and technology.
The growth of subscriptions payments

Embedded payments The subscription model emphasises retention over acquisition in
The concept regards the merger of a non-financial service provider, ecommerce since subscribers are treated as long-term assets,
such as a retailer (Starbucks) or ride-sharing company (Uber not just one-time buyers. ➔
Lyft), or a software company (SaaS) with payments processing.
By integrating payments in the customers’ journey these merchants
The recurring payments market in Europe was valued at USD
5899.33 million in 2020, and it is expected to reach USD 28395.84
million by 2028, growing at a CAGR of 21.7%. The subscription
payment models have proven to be highly efficient ways to conduct
business for a generation that increasingly subscribes to products
rather than buying them outright.
The lockdowns’ effects have undoubtedly boosted revenue for
media and communication services, but the pandemic is the only
factor of growth. The young generations also play a crucial part
in the success of this sector, for instance, and there is also this
concept called ‘the end of ownership’ that suggest that it’s not
all about digital goods when it comes to subscriptions, but about
the access to a wide range valuable services on a cost-saving and
personalised basis.
The bottom line

The major directions addressed in this article are payment methods
trends, innovation, and customer behaviour, suggesting in what
ways payments are being innovated and how they are being
adopted.
A2A payments and BNPL are in it for the long haul, yet there are
a couple of challenges that their providers should tackle to drive
success. The benefits of A2A payments are currently explored by
merchants and banks, but the ecosystem needs to bridge the gap
between businesses and consumers because acceptance might not
be a problem, but at a global level, adoption is still low compared
with other payment methods.
For BNPL, adoption and acceptance are fairly balanced, but in
the light of recent tensions related to how much regulated this
space is, merchants and BNPL companies should rethink the way
their business models work. However, what’s more attractive to
watch further is the way banks and credit providers will compete
with BNPL providers, or how this ecosystem will grow within this
context.
To scale, solution providers should become channel-agnostic and
contactless payments enablers, if they aren’t already. Because in
addition to accelerating in-store payments, contactless payments
will also become a critical component of omnichannel shopping —
it’s the experience that consumers have come to expect from all
forms of retail, gaming, grocery shopping, and more.
Payment Methods Featured in
This Report
Payment Methods
How the payment method works
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
payment instructions to the consumer. They can pay via the consumer portal/APP or
via classical bank transfer. Consumers also have the flexibility to pause a payment or
convert it to an instalment plan.
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.
1. Customer checks out with the Atome mobile app/payment method on the merchant’s
website or by scanning a QR code at the in-store checkout counter at 0% interest,
no admin fee, and splits the shopping bill into three easy monthly payments.
2. Merchant will receive full transaction amount (minus MDR – Merchant Discount Rate –
fees) within 3 working days.
BLIK is a payment method which enables you to pay easily and quickly in the store or
over the Internet, and you can also deposit and withdraw cash. You can also use
BLIK to settle accounts with a friend instantly, using just their phone number. You don’t
need a payment card or e-wallet to pay with BLIK. All you need is a phone with Internet
access and your bank’s app.
Direct carrier billing allows consumers to buy digital content and services with a few
clicks and pay for those services as part of their mobile phone bills or with their
pre-paid balances. In addition to direct carrier billing, we aggregate the most locally-
relevant payment methods for our merchant partners.
We have built a global network for bank debit 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 with the applications businesses use
everyday, such as Xero, Quickbooks, Zuora, and Salesforce.
The recent addition of our Instant Bank Pay feature, powered by Open Banking,
is designed to complement bank debit. It is a simple and convenient way to collect
one-off payments – at checkout or using a paylink – and means merchants can now
manage both their recurring and one-off payments all from a single platform.
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.
Payment Methods
How the payment method works
First, the consumer selects Trustly as the payment method in the checkout. The consumer
is then presented with a bank selector, without leaving the site. After selecting their bank,
the consumer is asked to verify themselves with their bank-provided authentication
method, static username, or password. Finally, the consumer chooses the account from
which to pay (checking, savings etc.).
Payment Methods
Buy Now, Pay Later/Instalments/Pay by invoice
Cash (on delivery) Credit cards
Debit cards Direct carrier billing
Direct debit
E-wallets Prepaid (cards/vouchers)
Online banking e-payments/Account-to-Account payments
Account-to-Account Payments
Size of the market

The mass adoption of real-time payment systems around the globe has accelerated the development of Account-to-Account (A2A) payments,
which rides on the strength of the banking payments rails. Moreover, PSD2/Open Banking further fuels innovation in A2A payments.
According to Worldpay Global Payments report 2021, the EU bank transfer share of total ecommerce in 2020 was 17%, and the global
share was 8.9%.
In Europe, the Netherlands, Sweden, Finland, and the Baltics lead the way in bank transfers, representing 13% of regional transactions.
65% of ecommerce payments in the Netherlands are made via iDEAL, the most popular banking system used in the Netherlands. By 2022,
the method is set to hold 72% of the market share. In Finland, Verkkopankki, which operates via a network of regional banks, is a prominent
domestic online bank transfer service.
With e-wallets in Europe increasingly tied to bank accounts, the popularity of bank transfers goes beyond the strong direct share of payments.
Payments via Open Banking are anticipated to grow at a CAGR of 78% per year in the EU.
In Sweden, bank transfers are set to become the dominant payment method by 2023. A high percentage of Swedish people have bank
accounts, and Swish is a major mobile payment app ran by Sweden’s leading banks.
In China, a 21% market share is expected to be reached by bank transfers by 2023. E-wallets may be adopting this method as part of
their own offerings.
In Brazil, PIX, the new payment system created and ran by the Central Bank of Brazil, has registered 1 billion transactions since its launch,
and it already has 230 million registered keys (each user can have up to three PIX registration keys). According to Brazil’s Central Bank,
ecommerce transactions initiated by individuals represented 9.1% and 8% of the total, in terms of quantity and value, respectively. The Bank also
states that when it comes to the adoption rate of PIX (i.e., the number of transactions per inhabitant of the country), it is already the
second-fastest-adopted system, only behind Denmark.
Latest developments
• An effective pilot in France will be a key step towards realising the EBA’s vision of combining the PSD2 APIs with the SEPA instant
payment rails, which is a crucial aspect of the EBA’s vision for combining two major initiatives. The new payment method will bring a number
of advantages to French ecommerce merchants, especially those offering more expensive goods or services. According to merchants
involved in the project working group, they anticipate that between 2 and 5% of all transactions will be migrated to the new method of
payment – or a significant share of a market worth more than USD 100 billion in France.
• The FedNow Service is an ongoing initiative that started in 2021 and aims to enable financial institutions in the US to make instant
payments. As part of the pilot programme, different features will be tested and developed to prepare for its release in 2023. Businesses
and individuals will be able to make real-time payments through the Service, as recipients will receive the payment within seconds.
• SRTP is a technical framework that allows a Payee to request an online or physical payment from a Payer through the use of operating rules
and technical elements. Entities from all countries are eligible for participation, provided that they respect the level playing field principle for
payment service providers (PSPs) and non-PSPs, as described on the European Payments Council page. For an ecommerce purchase,
RTP works as a payment method: the transaction is transferred to the customer’s bank and displayed in their online banking app.
The it means no additional costs and no additional processes for the merchant. ➔
Account-to-Account Payments
• The European Payments Initiative involves the integration of payment systems across Europe and the creation of a pan-European
interbank network. As part of their commitment to keeping customers happy and retaining them, banks launched EPI in a market largely
dominated by non-European and global players. The proposition for consumers is that using a well-known interface, consumers will
receive a universal payment option, i.e. a plastic card or an e-wallet. Merchants would benefit from an efficient pan-European system (i.e.
a reduction in costs to deploy an acceptance network across different countries), as well as security and payment guarantee, as needed.
Investments
• TrueLayer, a European open banking platform, has secured a USD 70 million Series D investment round. The latest raise reflects the growing
demand for TrueLayer’s open banking services and marks another significant milestone in the company’s mission to open up finance
by building a network for payments, financial data, and identity that will redefine how people spend, save, and transact online.
• The BlackRock Private Equity Partners consortium acquired a minority stake in Trustly, a Sweden-based company that lets customers
pay merchants directly through their bank accounts. TechCrunch reported that the business was valued at over USD 1 billion in the deal,
but the exact terms were not disclosed.
• GoCardless, a digital payments company based in the UK, has raised USD 95 million in an investment round. In order to include more busi
nesses in accepting A2A payments and replacing more costly card transactions, the startup will invest the capital in its open banking
strategy.
• Sweden-based Tink, which aggregates a number of banks and financial services via API so they can be accessed via new channels,
has raised EUR 85 million (about USD 103 million) at a post-money valuation of EUR 680 million (around USD 825 million). This capital
will be used to expand its network of banks and payment services in Europe.
GoCardless
The Death of Cards: Why 2021 Is a Tipping Point for Account-to-Account,
and How It’ll Change the Payments Landscape Forever
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
When credit cards were first introduced, Elvis Presley and Dean embraced ‘usership’ instead of ownership; indeed, Zuora’s Sub
Martin dominated the charts. Alfred Hitchcock just released Vertigo, scription Economy Index indicates subscription companies grew
and the European Economic Community was newly formed. It’s a far six times faster than the S&P 500 over the past nine years.
cry from the streaming-on-demand, social media-oriented, globally
connected one-click economy we’re in today, with an increasing Cards are not always suitable for these new business models; instead,
share of life lived through our phones – or, at least, mediated through A2A is growing in popularity. Research from GoCardless reveals
a screen. bank debit is the most favoured way to pay by consumers in the UK,
France, and Germany for both digital and traditional subscriptions,
Yet despite drastic changes in society and technology, payment and even in the US, it’s second only to cards and ahead of digital
methods such as credit cards have barely evolved from their 1950s wallets like PayPal.
predecessor. Barring the creation of a digital card, the core principles
of this payment type – such as revolving credit, the ‘five-party model’, Why are consumers moving towards A2A? It fits what they’re looking
and limited validity in the dreaded form of the ‘expiration date’ – still for: across Europe, consumers say the top attributes they value in
exist. an online payment method are security, plus speed and simplicity.
Other factors which are commonly associated with cards, such as
With the advent of Account-to-Account payments (A2A), however, we rewards and benefits, are becoming less desirable. It’s no wonder that
may finally start to see a viable challenge to the dominance of cards. in many markets when a viable A2A option is presented, uptake is
With its ability to cater for payer preference, optimise the checkout high. For instance, in the Netherlands, A2A payment system iDEAL
experience, and increase conversion, we believe A2A is going to is now used for over half of all ecommerce transactions.
be a game-changer.
Finally, the next wave of consumers is done with debt. A Bank of
Cards? No thanks! America report revealed Gen Z buyers would rather use cash than
The death of the card will be tied directly to the birth of the subscrip pay by credit card, and credit cards didn’t even make it into their
tion economy. Over the past few years, we’ve seen an explosion in top three preferred ways to pay.
this type of business model, with everything from tyres to printer
cartridges available on subscription. Bringing this all together, macro trends are pointing to the rise of A2A.
People care about security and convenience, and they’re starting to
For businesses, subscriptions capture more customer lifetime value by shun credit. So, where A2A payments are available, we’ll likely see more
design. For consumers, they are convenient and easy. Shoppers have payers trying this method. ➔
What this means for businesses
The rise of A2A payments is great news for merchants. On the back Broadband provider Cuckoo used Instant Bank Pay as part of an early
end, it’s more efficient than cards, with fewer intermediaries, lower access programme to collect first and ad hoc payments for new and
costs, and fewer points of failure. But it also represents an oppor existing customers. During the pilot, two-thirds (66%) of customers
tunity to improve checkout effectiveness and therefore conversion. who experienced a failed payment were able to benefit from using
Instant Bank Pay. Of those, 86% were able to make a payment
One example to highlight is payment security. This is top of mind within 48 hours, minimising disruption to their service.
for both consumers and regulators, with the introduction of Strong
Customer Authentication (SCA) to reduce card fraud. All aboard the A2A train
With consumer and business trends shifting rapidly, yesterday’s
This, however, introduces more friction into the payment process with real payment methods are no longer suitable for today, never mind
revenue implications. We surveyed 1,900 C-level decision makers at tomorrow. Increasingly, shoppers and enterprises alike are waking
the end of 2020 and found that 75% of businesses globally had already up to the possibility of a better customer experience, lower trans
implemented SCA. Of those, 56% reported a decrease in conversion action costs, and increased efficiencies. As A2A matures both in
as a result. terms of technology and widespread adoption across the world, it
may well be curtains for cards.
A2A payments, such as those driven by Open Banking, are often SCA
compliant by design. When the consumer or business initiates a one-
off payment, they will be asked to log into their online banking platform
to complete the transaction, providing authentication with just a few
clicks. By building checkout experiences that enable consumers to
pay via their mobile banking app, you get the best of both worlds
– security and convenience, which ultimately increase conversion.
Existing customers that make recurring payments also benefit from A2A.
GoCardless recently introduced Instant Bank Pay, enabling merchants
to take one-off, immediate payments using Open Banking, whilst
still collecting recurring payments with bank debit – retaining the
associated benefits including lower cost, reduced churn, and better
cash flow.
Click here for the company profile
GoCardless is a global leader in Account-to-Account payments – making it easy to collect

both recurring and one-off payments directly from customers’ bank accounts. We take
the pain out of getting paid for 60,000+ businesses worldwide. Each year GoCardless
processes over USD 20 billion of payments across more than 30 countries. GoCardless
is headquartered in the UK, with additional offices in Australia, France, Germany, and the
gocardless.com United States.
Trustly
The Inevitable Rise of Account-to-Account Payments
Ciaran is the Vice President of Partnerships, having joined Trustly as Head of Commercial Strategy
in 2016. His team is responsible for Trustly’s relationships with Payment Service Providers, platforms,
and other technical integrators. Alongside this, he has been involved in Open Banking in the UK and
other industry initiatives such as SWIFT’s Pay Later API standard.
Ciaran O’Malley Vice President of Partnerships Trustly
With an unmatched banking network and consumer reach of over half If consumers are offered instant money back, they will choose this
a billion, Trustly has a unique view of why consumers across the globe so they can make new purchases sooner rather than later. This is a
are choosing fast and flexible digital payment methods and why merchants proven way to increase revenue and strengthen customer loyalty.
should pay close attention to this shift in behaviour. Trustly’s VP of Partner
ships, Ciaran O’Malley, breaks down why. The benefits of offering payouts in conjunction with Account-to-Account
payment services are not limited to refunds. Customers of financial
People’s evolving relationship with banks institutions such as lenders, investment firms or insurance com
Challenger banks, Personal Finance Management apps, the gamifi panies often complain of slow payouts. These institutions, much
cation of savings – these are just a few of the things that are expanding like their E-com counterparts, spend massive amounts of time and
the way people interact with banks. More and more, people use their money supporting these customers who are waiting for their funds.
banks for other services, including Account-to-Account payment Fast payouts provide the opportunity for customer service to be
services that bring convenience and flexibility. They’ve also come to removed (or at least reduced) from the customer journey – a huge
expect digital experiences that are curated and personalised. In this new, differentiator that will surely sway the digital native. ➔
pandemic-influenced world of digital commerce, consumers expect

speedy, secure, and convenient payment experiences. There is no
going back to greater friction.
50%
The fast and the flexible
Account-to-Account payments (or Online Banking Payments) that
use a consumer’s bank login to authenticate the user is a natural
progression for multichannel purchases in a post-pandemic world.
For example, if someone wants to buy something online and pick it
up in-store, flexibility when it comes to payments is crucial. This is
also the case if goods are delivered to your home and you pay for
Trustly account-to-account
what you keep, or for more experiential retail where different services
payments are up to 50%
in-store can be accessed.
cheaper than card payments
And when it comes to refunds when returning goods, Account-to-
Account simply outperforms card payments. Instead of a refund taking
several days to arrive after the returned goods have been received by
the merchant, Account-to-Account refunds settle almost immediately.
A growing appetite for new digital payments Growing globally with Account-to-Account
There’s undoubtedly been an acceleration of the shift to more On top of admin costs, it’s important to note that fees are going
frictionless digital money transactions during the pandemic. Even up for credit and debit card payments. The cost of cross-border
Mastercard admits that the appetite for new digital payment transactions is rising and regulations regarding Brexit and other
methods is growing rapidly. Approximately 63% of global consumers issues haven’t helped. For businesses to expand globally, they
have tried a new digital payment method they would never have need to be able to make frictionless transactions, not pay up to
tried before. In that same survey, 41% reported a preference for 1.5% or more for cross-border charges. Trustly, with a bank network
biometric checkout. Payments are increasingly merging with digital of more than 6,300 banks and access to over 525 million consumers
identity for ease of use, involving biometrics, which also eliminates worldwide, is the undisputed leader in Account-to-Account payments
identity fraud. and is powering the shift to a cardless society. By bypassing
the traditional card rails, merchants can process payments that are
What’s more, in our own survey covering 10,000 consumers across up to 50% cheaper than card payments. Consumers will never pay
Europe, 53% of 16 to 24-year-olds said they prefer using fingerprint a fee to use Trustly and can purchase from online stores (that offer
or face ID over entering card details for payments. That number Trustly in their checkout) outside of their own countries, no matter
amounts to 45% in the 25-30-year-old category. There are no errors the currency. This is what is meant by ‘staying local to go global’.
with biometrics as opposed to, let’s say, entering the wrong bank By offering local payment preferences, online businesses can
card digits at the checkout, which then creates an unnecessarily extend their reach beyond borders and grow exponentially.
disruptive experience for the consumer when attempting to fix the
error. Not to mention the admin costs incurred for the merchant. For more on Trustly’s full-service, future-proof, cost-cutting,
consumer-preferred payments solution, visit trustly.com.
53%
53% 45%
45% 38%
38%
16-24yr 25-35yr 36-45yr

16-24yr 25-35yr 36-45yr
53%
53% of
of 16
16 to
to 24-year-olds
24-year-olds
prefer
prefer using fingerprint or
using fingerprint or face
face
ID over entering card details
ID over entering card details
Founded in 2008, Trustly is the global leader in digital Account-to-Account payments. Able
to handle the entire payment journey, Trustly is unique from the competition. In 2020, Trustly
processed over USD 21 billion in transaction volume across its global network. Trustly has
over 600 employees across Europe and the Americas.
trustly.com
Trustly
Craig McDonald, Chief Business Officer at Trustly, dives into the A2A payments essentials, the company’s growth into the US market,
and their involvement in the FedNow initiative.
Craig is a financial technology veteran with over 17 years of experience working to solve the payments
challenges for companies of every size and vertical. Prior to Trustly, Craig spent three years with
MoneyGram supporting its 2,700 financial institution clients, a USD 2 billion portfolio, and the company’s
digital distribution. Craig was COO and managed worldwide expansion with customers such as AT&T,
Verizon, AOL, General Motors, British Telecom, France Telecom, NTT DOCOMO, at Vallista (Intel).
Craig McDonald Chief Business Officer Trustly
A2A payments in Europe are expected to surpass What type of bank-based payments methods are
credit and debit cards by 2023 to represent one there and what are the key differences between
fifth of all ecommerce payments. What factors are them?
driving this trend? Discussions on this topic typically revolve around mono-banking and
Feasible alternatives to credit cards, regulatory tailwinds of PSD2, multi-bank schemes. Amex is an example of a mono-bank scheme in
and exciting new developments in innovation and technology are the US, as it is not only the card issuer but also the payment processor.
driving this trend of A2A payments. E-wallets can be considered mono-bank schemes as they share
this closed-loop infrastructure.
A2A payments happen by bank transfer, and they are extremely
beneficial for merchants as they eliminate ties to card monopolies However, most payment rails in the US are multi-bank schemes.
and involve lower chargebacks. Integration into banking infrastruc Facilitating payments is embedded within each of the 11,000 banks
ture means lower costs per transaction. Moreover, A2A payments and credit unions in the country. The most relevant examples include
provide seamless customer experiences and secure authentication. Automated Clearing House, a traditional multi-day settlement, The
Clearing House – a bank-owned entity that processes ACH payments,
and FedNow, which is supported by the Federal Reserve. Additionally,

Many may be leveraging the there’s Zelle, a P2P payment platform moving into the B2C space that
APIs but Trustly is revolutionising will most likely also move into ecommerce payments to rival credit
Open Banking globally, helping and debit cards.
all key partners unleash their true Excitingly, multiple payment technology providers are supporting the
potential. Open Banking movement in the US and facilitating multiple connections
into each of those schemes. Trustly is at the forefront of this wave. ➔
PSD2 is encouraging innovation around A2A payments in Europe
but here, in the US, the government has yet to step in, so innovation
is happening in the private sector. A2A transfers in Europe account
for around 13% of checkouts, while in the US that figure stands at
about 6%. I am confident that the US will accelerate the current
share and surpass Europe.
The US ecommerce payments landscape has Trustly has been engaged with the FedNow programme, and we will
traditionally been dominated by credit and debit go live with them once the initiative becomes operational. Trustly has
cards. Do you think that A2A payments will one been looking at it strategically and will be the front running technology
day become the preferred choice in the US? provider to integrate early, reduce friction, and consolidate the offering
There are several reasons why A2A payments have a lot of potential by providing a solid proof of concept with a cohesive RTP strategy.
to gain traction in this area. The first is that consumers have started to
attribute greater value to non-card payments because they are easy Trustly in the US has been providing online banking payments,
to use and consumers have more control over their data. Another leveraging banks’ APIs, for 10 years. Trustly has joined the FDX and its
is that they are safer, as higher approval rates are needed because membership comes at a crucial time, as the new administration has
we are talking about real-time access to consumer accounts. indicated strong interest in regulating Open Finance. Also, Canada
They also provide lower processing costs, and fewer-to-no charge is scheduled to make decisions to regulate Open Banking by the
backs. end of 2021.
The 11,000 banks and credit unions in the US are now beginning to What’s important to understand about the US payments industry
understand that their business models are changing, and they need is that FedNow provides optionality for banks, so their technology
to account for the reduction in interchange fees. They are also investing processors could integrate with whomever player they deem suitable.
in Open Banking strategies because they see value in extending It can be said that increased competition in the US will only enhance
their relationship with customers outside of their own digital asset. innovation and drive higher adoption of real-time payments.
Traditionally, US banks have encouraged consumers to use their
mobile banking apps or online banking services, but they now Trustly’s role is to revolutionise Open Banking globally by helping
recognise that Open Banking offers the potential to facilitate all key partners in this ecosystem unleash their true potential, so
payments and data sharing outside of those walls securely. watch this space!
Please elaborate on the FedNow initiative. What is

its purpose and what is Trustly’s involvement?
Essentially, FedNow is a real-time payment rail leveraging A2A
transfers to facilitate settlements and clearing within seconds. The
official take-off was pulled into 2023, but they also have pilots
planned for 2021, so that shows a lot of momentum.
Founded in 2008, Trustly is the global leader in digital account-account payments. Able to
handle the entire payment journey, Trustly is unique from the competition. In 2020, Trustly
processed over USD 21 billion in transaction volume across its global network. Trustly has
over 600 employees across Europe and the Americas.
trustly.com
CMSPI
The Rise of A2A Payments: What Should Retailers Look Out For?
An Economist at CMSPI as part of its ‘Insights’ team, Martha’s focus is tracking payments market
trends, as well as reporting on emerging payments issues and regulatory changes.
Martha Southall Economist CMSPI
Transferring funds from one account to another – or making an Venmo competes with the likes of Zelle, Cash App (Square), and
Account-to-Account (A2A) payment – is nothing new; consumers Facebook Pay in the P2P space. However, in recent years we have
have been using A2A payments in the form of bank transfers for seen these players make strategic moves towards the consumer-
years. Why, then, is the method attracting so much attention? In this to-business (C2B) environment. Launches of products such as
article, we explore the US in more detail – a country in which the Venmo’s in-store QR code payment in 2020 suggest A2A
A2A payment is quickly becoming a key consideration for merchants payments are well on their way to the POS.
looking to future-proof their payment acceptance strategy.

Could P2P shake up the payments landscape?
The new generation of A2A The introduction of QR codes at the POS alone is a significant change
Whilst the umbrella term ‘A2A payments’ includes many methods for retailers – and one that many have already begun to make since
that are commonplace such as bill payments (a form of C2B trans the start of the pandemic. However, a move by P2P providers into
action), in the US one particular form has been drawing significant the C2B space has the potential to generate a lot of further-reaching
attention. Peer-to-peer (P2P) payments allow one person to send impacts. Whilst not all are new to payments, many of the companies
funds to another using the recipient’s email or other personal infor behind P2P payments in the US are part of a new generation of
mation. One 2019 survey found that 71% of US adults had used a fintechs offering innovative payment solutions. The 2017 launch of
P2P payment platform, with 24% of those interviewed saying they Zelle, described by some as ‘the US banking industry’s answer to
did so frequently. Providers of these services include the likes of Venmo’, shows that they are already sparking change. There is also
Venmo, the PayPal-owned platform whose user base outnumbered the use of ACH networks for many A2A payments, which has the
that of both Bank of America and Wells Fargo in 2019. Figure 1 potential to significantly reduce merchants’ costs through the avoidance
illustrates the growth that Venmo has seen since 2017. of interchange fees. However, these developments do not mean legacy
players are out of the picture. In fact, the instant settlement options
Figure 1. Venmo payment volume over time of many P2P providers, often underpinned by Visa Direct technology,
utilise traditional card rails and are only available for users who link
their payment cards. ➔
Source: Statista
Making A2A instant In summary…
Visa Direct is not the only player looking to combine A2A services Whilst A2A payments are not a new phenomenon, in recent years
and instant payments. One of the Federal Reserve’s key initiatives in the US market has seen providers such as Venmo report exponential
the US, FedNow, sees A2A operability as one of its core use cases. growth and particular popularity amongst younger cohorts. These
FedNow, an instant payments service that is currently under develop developments reveal some interesting dynamics between actors
ment in the US, is expected to launch in 2023. With the advent of within the payments industry; whilst many suppliers appear to be
FedNow, the Federal Reserve echoes a number of initiatives globally newer entrants, their underlying technology can be supported by
– such as the European Union’s SEPA Instant Credit Transfer – that long-standing players who, alongside the Federal Reserve, appear
see instant payments as a core tenet of the future payments land to be shifting towards a future in which instant and A2A payments
scape. However, FedNow presents an additional opportunity; the are intertwined. Merchants need to be prepared for these methods to
service’s website suggests that instant payments rails could also enter the C2B space. Such a shift could have huge significance for the
‘help financial institutions capture a piece of the P2P pie’, placing payments mix, particularly if younger cohorts switch out their debit
traditional issuing banks back at the centre of the transaction flow card usage for transfer options. With the current combination of state,
for such payments. This contrasts with instances where the payer fintech, and legacy-driven initiatives in the US, merchants must keep
transfers from funds stored within their P2P provider account, abreast of what each development could mean for themselves and
leaving traditional financial institutions disintermediated. Although not their customers.
part of its initial launch, if the Fed’s rails begin to support C2B trans
actions then this could generate additional opportunities for cost
savings for merchants.
What does it all mean for merchants?

Whilst P2P developments are important for payments more broadly,
CMSPI’s work focuses on merchants, and independently championing
their interests within the payments ecosystem. So far, the A2A boom
in the US has been largely focused on transfers between individuals,
as well as traditional use cases such as bill payments. However, there
is precedent for these solutions rapidly entering the retail payments
space. China’s WeChat Pay, for example, has grown from a service
allowing people to transfer money to contacts in their social network
to a method of payment accepted by upwards of 72 million mer
chants. Providers in the US haven’t been so quick to swap out the
old; Venmo, for example, launched its own Mastercard debit card
in 2018, followed by a Visa credit card in 2020. It is possible that
strategic alliances between legacy players and fintechs could limit
the commercial appetite to make the current energy surrounding
P2P as transformative as it could be for the US market.
CMSPI is a global leader in retail payments consulting. CMSPI’s expert team works to
empower the retail community with insights, expertise, benchmarking, and analysis to drive
value in their payments supply chain. Specialties include cost reductions, approvals and
fraud, and strategic insights.
cmspi.com
Buy Now, Pay Later
Size of the market

As Gartner explains in a recent white paper, a potential payments winner from the pandemic is the Buy Now, Pay Later (BNPL) payment method.
With consumers looking for alternative financing choices, BNPL offers instalments and deferred payment options without interest fees on
the consumer side. In 2020, Klarna reported a four times increase in its US clients basis in June 2020 compared to the same time in 2019,
while Afterpay released information announcing that its payments volumes grew by 330% for 2020, compared to 2019.
BNPL is forecasted to be used by 4 billion total unique ecommerce users in 2025, up from 2.1 billion in 2018, and to register a 15% CAGR
across mobile users vs 2% CAGR across online users during the period 2020-2025. Furthermore, BNPL is estimated to reach USD 7.2
trillion ecommerce transaction value in 2025, up from USD 3.5 trillion in 2018 in East Asia.
There is no question that BNPL has been a preferred tool for end consumers for a long time, especially in Germany and Sweden. Moving on,
discussions arise around the costs that this popular payment method incurs on the merchants. For instance, ecommerce platform Scalefast
explained in a blog post in May 2021 that BNPL firms charge retailers more than card issuers – where a typical Visa processing fee in
the US is 3%, a company such as Sezzle charges retailers fees around 6% plus 30 cents per transaction, with the pitch that this includes
the 3% card fee.
Regardless, many merchants prefer to collaborate with BNPL providers as it has proved to decrease cart abandonment, generate more
revenue by increasing the order value, and streamline client conversion and website traffic.
For an in-depth analysis, The Paypers published in May 2021 a series of articles covering the size of the BNPL market, regulations and risks,
along with major investments in the field.
Latest developments
In February 2021, The UK’s Government has announced that BNPL credit agreements will be regulated by the Financial Conduct
Authority (FCA). The announcement came as a review of the unsecured credit market recommended bringing interest-free BNPL into FCA
supervision. ➔
Buy Now, Pay Later
Expansions, partnerships, and innovation:
• Australian BNPL platform Afterpay started the year with a partnership with Stripe, following up with an agreement with Adyen, in Europe.
In June 2021, Afterpay announced it will make its service available to the largest merchants in the US, including Amazon, CVS, Dell, Kroger,
Macy’s, Nike, Nordstrom, Nordstrom Rack, Sephora, Target, Victoria’s Secret, Walgreens, and Yeti.
• Ecommerce platform Shopify has launched Shop Pay Installments in June 2021, powered through a partnership with BNPL provider Affirm
in the US, after Shopify conducted a beta test of the product in 2020 with a select batch of clients and saw 28% fewer abandoned carts
than third-party BNPL options had yielded.
• Swedish BNPL facilitator Klarna made a move on the French market with a 3-instalments solution in early June 2021, while also launching
BNPL virtual cards in the UK and promising to introduce monthly budget features and a personal spending limit to help consumers control
their spending for the British ecommerce space. More recently, the BNPL platform launched its mobile shopping app in Switzerland.
• On the Asian market, BNPL platform Atome has made some visible moves in the past months. From partnering with AsiaPay in February,
and with FOMO Pay in April 2021, to expanding to Malaysia, Atome has gradually become a nominal actor in this ecosystem, across
Singapore, Indonesia, Malaysia, Hong Kong, Thailand, Philippines, Taiwan, Vietnam, and mainland China. Other notable partners are:
ZALORA in Singapore, Malaysia, and Hong Kong, Pine Labs in Malaysia.
• In April 2021, Tinkoff Bank announced that it launched its first digital BNPL service Dolyame.ru in Russia.
Investments
• By far, the most impressive activity in this sense has come from Klarna this year, with a USD 1 billion investment in March 2021, valuating the
company at a total of USD 31 billion.
• British BNPL providers Zilch and Divido both obtained significant investments. Zilch representatives said that the USD 80 million will be
directed to bring in a tier-one debt line and expand to the US.
• Across the ocean, Sunbit and Uplift have announced they plan to direct their respective USD 130 million and USD 68 million to invest more
in infrastructure (travel payments in the case of Uplift) and to expand their merchant footprint to reach more retailers and service providers,
online and offline, with the new investment.
The Upsides and Downsides of ‘Buy Now, Pay Later’ Payment Methods
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 practice working
with omnichannel merchants and payment service providers across the globe.
Mark Beresford Director Edgar, Dunn & Company
‘Pay later’ shopping typically meant an interest-free period following The exact process varies by provider; nevertheless, many consumers
the purchase, during which no payments were made, and no interest are taking advantage of ‘trying items on at home’ to see if clothes fit
charged. After this interest-free period, payment was expected in before the first payment is processed. Amazon Wardrobe also has
full – otherwise, interest would be added from the time of the original a free 7-day ‘try on’ option for its Prime customers.
purchase. Today, the ‘Buy Now, Pay Later’ (BNPL) market has developed,
and in Europe – according to Kaleido, the research company – 30% Another benefit for consumers is that when they may be struggling to
of total ecommerce spend will be via BNPL by 2025. make repayments, some BNPL providers will offer an option to ‘snooze’
the re-payment by up to ten days. Klarna offers this option but only
The advantages of BNPL once per order.
There are upsides of BNPL for both shoppers and merchants.
The increased prominence of millennials in the digital economy and For the merchant, BNPL lowers and removes any potential buying
the growth of ecommerce during the pandemic have meant that hesitations that the shopper may possess. Impulse purchases are
BNPL uptake has accelerated. The main advantage for the shopper more likely to happen, and the average transaction value (ATV) is
is the ability to take items home right away and pay later. The option frequently higher. For merchants, this will increase overall sales and
to pay no interest if payments are met on time or the entire amount can sometimes provide a new revenue stream from loan interest
is paid off by the time the loan period ends has unquestionably and late payment fees collected and shared by the BNPL provider.
appealed to consumers wishing to spread their payments over a Financing shoppers with a BNPL option means that there is no need
few months. This payment method is also suitable for unexpected for a credit card that provides a merchant with branded, smoother
or urgent purchases. Consumers who may be on a low income or customer checkout experience.
do not have a credit card may also find BNPL an appealing option.
Who are the BNPL providers?
Another advantage for consumers is related to returned items. Around the globe, there is a growing list of BNPL providers, such
A leading fashion retailer once told me that as much as 60% of their as Affirm, AfterPay, Ant Financial, Blispay, Bread, Bundll, ClearPay,
regular female customers buy several pieces of the same item of CreditClick, Divido, EasyPay, Flava, Flexi (aka Humm), Fly Now
clothing in different sizes. When the consumer returns an item bought t Pay Later, Hoolah, Kiva, Klarna, Laybuy, OpenPay, PayL8r, PayPal,
hrough BNPL, they may need to arrange this directly with the retailer Sezzle, Splitit, Spotii, Tymit, Zilch, and Zip. Even Mastercard and
and in accordance with its returns policy – or some BNPL providers Visa have made strategic investments in the BNPL market. ➔
can deal with returns via their own branded app. Until a return has
been processed by the retailer, the BNPL outstanding balance will
not be adjusted.
Are there only upsides to BNPL? What is the future of BNPL?
The UK’s Financial Conduct Authority (FCA) regulator conducted a There is no doubt, by early 2022, one year since the FCA’s review of
review of the BNPL market, published on 2 February 2021. It said the BNPL market, further regulatory controls will be in place in the
that BNPL deals offered via fintech firms such as PayPal and Klarna UK that will include affordability and the systemic sustainability of
must be covered by its rules ‘as a matter of urgency’ because of a the credit market. BNPL providers will have to change the way they
‘significant potential for consumer harm’. In July 2020, Edgar, Dunn recruit consumers and monitor their line of credit across the market.
& Company (EDC) asked the question ‘Are we heading for a new This is expected to impact who can access BNPL and how much
consumer debt crisis following the COVID-19 pandemic?’. In a pre- those who use it can borrow.
pandemic world, EDC saw a growth of instalment payments and
BNPL payment options appearing across a wide range of retail It is hard to believe that there is room for more BNPL providers to enter
sectors, from fashion to airline tickets. There may not charge interest the market based on the aforementioned list – however, Edgar, Dunn
or hidden fees on most transactions – on the other hand, most providers & Company (EDC) believes that there will be a continued growth in
will charge a fee if a payment is late or a repayment is missed. the short term. EDC expects to see further innovation in the BNPL
market, both online and in-store, and one area where we will see
Currently, a consumer using BNPL is unlikely to be subject to a new propositions will be merchant-led financing. The tremendous
‘hard’ credit check that would leave a ‘footprint’ on their credit file. growth of cashless payments, including the BNPL, presents a huge
However, costs only incur if the consumer fails to make repayments opportunity for fintech companies operating in the digital payment
on time. Some of these providers reserve the right to report defaults ecosystem. More providers with more consumer propositions are
to credit reporting bureaus such as Experian or Equifax. The con expected to be launched.
sumer’s credit score may be affected, and this could make it difficult
for a customer to be approved for a personal loan or a mortgage
in the future.
Each BNPL provider sets a credit limit based on the consumer credit
score, affordability, and the proprietary algorithms, meaning one
customer’s credit limit might differ from the next. Therefore, the credit
limit is defined per provider, not across all providers. None of the
BNPL providers will know how much the consumer has borrowed
elsewhere, meaning total debts across several providers can get
out of control. BNPL is currently unregulated in many markets.
Much of the burden falls on the consumer to keep the amount they
borrow within an affordable limit. The consumer must maintain their
regular instalments.
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, fintech, mobile payments, digitalisation of retail
financial services, and ecommerce.
edgardunn.com
AfterPay
BNPL Increasingly Important to Attract Heavy Online Shoppers
Since 2018 Johan spearheads AfterPay’s journey from a local Dutch payment hero to an international
challenger. He holds over 20 years of international experience working in the intersection between
commercial, tech, and innovation. Starting his career within Virtual Reality and robotics while spending
the last two decades within digital and ecommerce for retail, insurance, and banking.
Johan Rönnerman AfterPay Leader Arvato Financial Solutions, a Bertelsmann Company
The world changes continuously, at a lightning-fast pace. Consumers’ Attracting new online shoppers is associated with
online shopping habits are not any different. And one of today’s key delivering on ‘hygiene needs’ while heavy online
consumer habits is the growing use of flexible payment options and shoppers are won on ‘niche needs’
Buy Now, Pay Later (BNPL) services. BNPL’s meteoric rise shows no Consumers have three different types of needs when choosing
signs of slowing down: in 2025, 30% of European ecommerce spend where to shop. ‘Hygiene needs’ are the most important. Once these
is expected to be made through BNPL services. With the continual needs are met, the battle for consumers plays out in the field of
growth of BNPL – and ecommerce in general – it is essential to know ‘webshop choice drivers’ – this is where merchants need to perform
what consumers’ attitudes about online shopping are, what they are better than their competition to win consumers over. If consumers
buying, and how they plan to shop in the future. then perceive merchants as performing similarly, ‘niche needs’
become the final, critical factor for choosing where to shop. ➔
To gain insight into the above and understand drivers, demands,
and trends in ecommerce, AfterPay Insights monitors consumer
behaviour on a monthly basis. One of the key themes in AfterPay
Insights’ analyses is the driver for consumers to choose where

to shop. Which aspects are the most important? And is there a
difference for specific consumer segments?
A major finding in AfterPay Insights’ analyses is, as expected,
that online shopping volumes are driven by the inflow of new con
sumers from brick-and-mortar shops to online channels – this in
combination with existing online shoppers gradually becoming
more loyal and shifting even more purchases to online channels.
The analyses also identify heavy online shoppers (>10 online
purchases per month) to be of crucial importance. These shoppers
only make up around 15% of consumers, but they hold major buying
power: they make nearly 50% of all online purchases. This segment
further stands out not only because they use a slightly different
repertoire of methods/brands when paying online – but they also
have different demands of merchants.
Heavy online shoppers choose webshops that can Consumer demand drives the growth of BNPL
provide flexibility in many dimensions payment methods
As consumers shop online more and retention increases, their The need for flexibility in online shopping in general, and flexible
demands for flexible experiences (flexible returns, delivery, and payment options specifically, will grow even further – this is evident,
payments) throughout the purchase journey grow. In Q1 of 2020, as the need for flexibility is driven by heavy online shoppers, who
26% of all online shoppers state a need for flexible solutions are overrepresented in the younger demographic.
related to either payments, delivery, and/or returns. And in Q2 of
2021, this need increases to 31% of online shoppers. The need for
flexible payment options is a key driver for overall flexibility needs.
Only 18 months ago, 11% of consumers stated they wanted flexible
payment options – and by Q2 of 2021 this share has already grown
to 14%.
Taking the perspective of AfterPay’s shopping frequency seg
ments, we see that 41% of heavy online shoppers in Germany,
the Netherlands, and Norway expressed a flexibility need when
shopping online during Q2 of 2021. Among light online shoppers,
only 26% state that they need flexibility when shopping online.
Heavy shoppers’ choice of payment brands also differs from the
one of light online shoppers. Light shoppers use significantly more
legacy payment methods while the market share for newer payment
methods like BNPL and AfterPay is higher among heavy online
shoppers.
But it is not just heavy shoppers who are attracted to flexible
Comparing consumers’ pre-pandemic shopping behaviour to their payments; BNPL services also offer experiential aspects like
shopping behaviour in Q2 2021, we see that the online shopper trust, security, and safety that primarily attract less frequent online
base increases from 64% to 75% of consumers in the Netherlands, shoppers. From that perspective, BNPL services and AfterPay
from 72% to 79% in Germany, and from 47% to 67% in Norway. are as much a marketing instrument and loyalty tool as they are
Consumers who shop online less often – including shoppers who a payment method – and an essential trend to join if you want to
are new to ecommerce – place a higher value on ‘hygiene drivers’ keep up with the rapid developments in today’s ecommerce world.
like security. For these shoppers, BNPL services can be an attractive
way to guarantee a secure and trustworthy experience: there are no
financial risks, and returning an item is simple.
AfterPay, a business unit within Arvato Financial Solutions, enables merchants to offer
their consumers a convenient and safe way of paying – AfterPay enables consumers to
pay at the pace of life. Their Pay After Delivery product, available in Central and Northern
Europe, comes with five different payment options: the 14-Day Invoice, Campaign Invoice,
Consolidated Invoice, Fixed Instalments, and AfterPay FLEX.
www.afterpay.nl
Atome
David Chen, CEO of Atome, dives into the Buy Now, Pay Later industry in Asia, sharing how Atome drives retail business growth
and its vision as merchant enabler.
David Chen is the CEO of Atome and holds a PhD in Computer Science from the University of
Washington. He spent six years as a tenured professor in Singapore before starting several tech
startups. Before teaching, he worked with top technology brands including Yahoo!, Microsoft, and
Amazon.
David Chen CEO Atome
Let’s dive in a bit into the Buy Now, Pay Later indus Therefore, Atome provides these consumers with a payment option
try in Asia, first. How does this payment method – three zero-interest payments over 3 months – using our highly
perform in the region as far as acceptance and transparent, safe, secure, and easy-to-use mobile app.
adoption are concerned?

First of all, Asia is a highly fragmented region and very different from Account setup and the eKYC risk profile/assessment is completed
mature regions/markets like AU, US or EU where most people are in real-time and takes between 2 to 5 minutes over the smartphone,
banked and have access to financial services. so it is very quick and convenient.
In markets such as Indonesia, Thailand or Vietnam, the majority We are seeing very positive responses in Asia where we are present
of the consumers do not have access to credit and are either in 9 markets: Singapore, Malaysia, Indonesia, Hong Kong, Philippines,
unbanked or underbanked. Vietnam, Taiwan, Thailand, and mainland China.
The other big difference is that in many parts of Asia, Cash on Across the region, we partner with over 5,000 leading online and
Delivery and offline retail are still a big part of the shopping experience. offline retailers (e.g. Agoda, Sephora, ZALORA, Zara, Aldo, Furla, and
So this means having to think about the physical store checkout, Marks & Spencer). We have over 20 million registered customers
training retail staff, signage to ensure a seamless customer experience. and disbursed USD 1 billion over 15 million transactions as part of
the Advance Intelligence Group, our parent company.
What benefits does Atome bring to the table for

We see ourselves as a both merchants and consumers that stand out
merchant enabler, and not just a from what other BNPL providers offer?
We are Asia’s leading Buy Now, Pay Later platform with the highest
payment option. Atome can be
number of markets covered.
integrated across websites, apps,
and physical offline stores as an Our regional coverage is a big advantage. Merchants look to us to
help them scale their business across multiple markets and reduce
omnichannel solution to drive
go-to-market complexity. They would rather work with one provider
business growth. vs multiple partners in different markets. ➔
We also leverage our AI technology and understanding of user In return for a small commission per transaction, our merchant partners
behaviour data to provide personalised shopping recommendations have seen an average increase of 17% in their ticket order size, as
to Atome users resulting in high quality leads to our merchant partners. well as an increase in conversions at checkout of 30%.
For consumers, we help them to make better decisions on smart and Could you please elaborate on the company’s
responsible spending and provide exclusive deals, tips, and advice strategy behind its rapid expansion across Asia?
on how they can shop and pay smart. Our Atome app has a 4.8-star Part of it is driven by demand from our regional partners to scale our
rating on App Store and Google Play store rating and speaks to our solution in multiple markets, but it is also about our ability to deploy
focus on ensuring a superior user experience, service, and satisfaction. localised solutions and expand rapidly because of our experience and
network in this region. So we are always looking to grow our merchant
Lastly, for a BNPL provider to build a healthy, long-term, and breadth and depth across key categories and markets, especially
sustainable business in this region, its risk management and credit with popular leading retail brands or online platforms.
profiling technology has to be very robust.
With that, we’re able to also deepen our user base and provide them
We have deep experience in this area and this region. The core with access and affordability to quality products and services. This in
expertise of our sister company, ADVANCE.AI, is in AI-based credit turn also benefits our merchant partners and drives merchant value.
risk profiling and assessment. Through our technology, we can
minimise application and transaction rejections, and weed out bad Could you please share with us any plans for
actors/fraud. this year and beyond, perhaps in terms of further
expansion and services’ upgrades?
Moreover, how does Atome drive retail business We’re currently operating in 9 markets and now we want to focus on
growth for merchants? growing our merchant base across key categories and see where
We see ourselves as a merchant enabler, and not just a payment we can drive value for global and regional retailers.
option. Atome can be integrated across websites, apps, and
physical offline stores as an omnichannel solution to drive business We also want to keep building and improving the Atome experience
growth. With the COVID-19 pandemic, the adoption of e-payment, by listening closely to customer feedback and ensuring they have a
and consumers opting for omnichannel retailing is accelerating. superior and sustained customer experience. For example, we just
launched Atome+, our own rewards programme.
Many young consumers in Asia may not have access, or increasingly
prefer not to use credit cards or upfront cash to make full payments. We’re also developing deeper features and products to help merchants
By partnering with Atome, merchants can now reach out to this group grow their business with real-time store analytics as they emerge from
of consumers. the COVID-19 pandemic.
We also assist merchants through digital marketing, supporting them
with tools to digitalise their services, and helping them to better
understand their consumer base (e.g. behaviours, demographics),

especially in offline settings.
Atome is a leading Buy Now, Pay Later brand in Asia, partnering retailers to increase
conversions and grow average orders and customer segments. It currently partners over
5,000 retailers in nine markets. For consumers, Atome offers choice, convenience, and
flexibility in how they choose to shop and pay.
www.atome.sg
Forrester
The Deferred Payment Market Is Heating Up
Lily Varón is a senior analyst at Forrester Research. Her research focuses on the merchant payments
processing landscape, evolving consumer payments behaviours, and how merchant payments
acceptance strategies must adapt to serve them.
Lily Varón Senior Analyst Forrester
Today’s deferred payment solutions – a broad category covering Appealing to younger shoppers – but consistent adoption across
instalments, ‘Buy Now, Pay Later’, point-of-sale financing, and age groups – Although usage is still quite low across all customer
others – are the evolution of ones born amid the Great Depression segments, interest in deferred payments skews younger: around
to encourage spending during tough financial circumstances. half of US Gen Z and Millennial consumers are interested, while it
Financing has been a popular way for consumers to pay for higher- drops off for older consumers. However, adoption of these payment
ticket items like appliances, particularly in stores since then. But solu methods is quite consistent across all age groups: 5% of US Gen Z
tions are now also available for smaller-ticket items across a vast consumers have used them, and 4% of each other age group has.
range of categories, mainly online. The value proposition for these
newer deferred payment providers include: One sign that this market is accelerating is interest from established
payment giants. Over the years, Forrester has seen that the presence
Higher site traffic and average order values – Merchant fees for of even one or two of these players in any given market helps legiti
deferred payments can be up to three times that of a credit card mise the entire product area. In new, simplified deferred payment
transaction. The upside: merchants are likely to experience higher offerings, at least four of the giants have entered the market: PayPal,
traffic due to the branding and marketing efforts of the providers, Mastercard, Synchrony, and Visa are all enhancing their existing credit
as well as a boost in average order values, because consumers can offerings to go head to head with the emerging players. The market
break a larger purchase into smaller increments over time. is undergoing other fundamental shifts, including:
Better customer experiences – For deferred payments, consumers VC funding skyrocketed in 2019 and 2020 as the market gained
are often subjected to a ‘soft’ credit check versus a hard one for other momentum – More than half of the deferred payment market funding
financing methods, shielding them from any dings to their credit score. occurred within the past two years. Across 29 companies Forrester
And compared to legacy financing processes, many newer solutions evaluated, 2019 brought USD 1.77 billion in venture capital (VC)
have relatively simple-to-understand terms that in turn protect funding, and an additional USD 1.86 billion came in the first three
customers from potential negative experiences. quarters of 2020 alone. Average annual investment across the nine
previous years came in at a comparatively paltry USD 291 million. ➔
Digital-first offerings – Though they’re now also expanding offline,
many of the newer solutions were originally designed outright for
ecommerce: in online or mobile self-service scenarios and with the
digitally fluent consumer in mind. Pared down applications with user-
friendly interfaces are more common than lengthy paper applications.
In fact, Forrester found that digitally native challenger brands are
more likely to offer deferred payments at online checkout.
Key players use acquisitions of smaller vendors to extend Deferred payment solutions in countries like Australia, Germany,
their geographic reach – To break into the US market, Australia- and Sweden have reached critical mass and, in some cases, have
based Zip Co completed its acquisition of US-based QuadPay in surpassed other longer-standing alternative payment methods.
September 2020. In 2018, Afterpay expanded from its Australian But elsewhere, adoption is still in the early stages: only 2% of US and
origins to the UK by acquiring ClearPay and most recently acquired UK online adults have used Afterpay in the past three months, while
Indonesia-focused EmpatKali and Spain-based Pagantis. Sweden- even fewer — 1% in the US and 3% in the UK — have used Klarna.
native Klarna has also acquired a few companies, including But Forrester predicts that consumer adoption of deferred payments
Germany-based Sofort in 2013, BillPay in 2017 (another German will as much as triple as recession-conscious consumers look to
player), and the Italy-based payment company Moneymour in 2020. stretch their dollars and avoid credit card fees.
The US market is saturated, but adoption is highest in Australia
and the Nordics – While the US is home to the most vendors, adoption
is higher in Europe and Australia. Founded in 2005, Sweden-based
Klarna — now present elsewhere in Europe and the UK, the US, and
most recently Australia — was one of the first players to enter the
‘Buy Now, Pay Later’ space. Klarna is still the top digital payment
method in its home country: 57% of online adults in Sweden have
used it in the past three months to pay for a purchase. In Australia,
13% of online adults have used Afterpay in the past three months
to purchase products or services.
Beyond geography and terms offered, differentiation exists in
small ways – The main differentiation today is the geographical
presence and the terms offered. Other differentiators exist, like
whether the solution is customer facing (e.g. Afterpay, Klarna) or
white-labelled (e.g. Bread, LimePay, Mastercard) or whether it has
an industry focus (e.g. Uplift, LaterPay). The vendors also compete
on the level of flexibility they can extend to consumers. For example,
Afterpay lets consumers delay some payments without accruing
fees, QuadPay lets consumers exceed approved loan amounts for
a higher upfront payment to boost usage or use a virtual Visa card
to enable in-store usage, and Sezzle has a credit-building offering
for its users.
Forrester is one of the most influential research and advisory firms in the world.
Our proprietary research, consulting, and events empower leaders across technology,
marketing, customer experience, product, and sales functions to be bold at work –
accelerating growth, navigating change, and putting customers at the center of leadership,
strategy, and operations.
go.forrester.com
TSG
The Blind Side of Buy Now, Pay Later
Sheridan Trent has a Master of Arts Degree in Industrial-Organizational Psychology – as a Research

Analyst at The Strawhecker Group, she uses her skills to conduct industry surveys and market
research, and explore emerging trends in the payment industry.
Sheridan Trent Research Analyst The Strawhecker Group (TSG)
Introduction There’s also the matter of BNPL checkout processes themselves
Driven by a desire for flexible payment options and the aversion – seamless checkouts are prized by customers, but the dark side
of credit card interest, Buy Now, Pay Later (BNPL) is an emerging of making it easy to checkout is that it also becomes easier to
payment offering, which has risen in popularity across the global overspend. Data provided by various BNPL firms also highlight how
payments landscape, with volume expected to double by 2025. easy it is to become a recurrent customer – two-thirds of Klarna users
Given the increased interest in the payment method, some trends in the UK use Klarna to buy products from more than one retailer
in this space have been predictable (e.g. their popularity among at a time, and Afterpay’s top customers reported using the service
younger consumers, the proliferation of new players in the market, the up to forty-eight times per year in the US. Although these statistics
surge in interest around the 2020 holiday season). However, recent on their own are not negative – repeated shopping doesn’t mean
reports of consumer debt, as well as the scepticism with which some irresponsible shopping most of the time – when considered together
consumers view BNPL, present a new side to such services – one with other data, it’s something merchants should be aware of as
warranting exploration. Further, while many consumers may be inte they make decisions about how and what type of BNPL options
rested in using BNPL, the perspective of the merchant is less clear. they want to support.
The focus of this article will be to provide some insight into these
areas. Consumer uncertainty in the BNPL space
BNPL is a payment option that is here to stay; yet although adoption is
Debt incurred through BNPL growing, so is consumer uncertainty. TSG data from our most recent
Articles featuring consumers claiming to lose their homes because consumer survey provides some insight into the attitudes of consu
of BNPL are mostly tabloids. However, stories leaving out any mers and identified a variety of motivations behind aversion to
mention of how the streamlined checkout processes and advertising BNPL. In total, 942 individuals provided feedback about their
campaigns displaying influencers with thousands of followers across decision to avoid BNPL, citing reasons such as fear and unease, a
social platforms tend to drive usage are failing to present a realistic lack of trust, financial hardship, already having a payment method
picture of such services too. BNPL advertising has been a point of they prefer, and just being unaware that BNPL exists. However, the
contention over the past year, with Australia, the UK, Sweden, and largest group of consumers expressed open disdain for the idea
California ramping up regulation. The response isn’t unwarranted of not being able to pay for a product immediately. This group of
given recent research from the Money and Mental Health Policy consumers equated BNPL to irresponsibility, and their comments
Institute demonstrating that individuals with mental health problems underscore an image problem, which could present a challenge
are much likelier to spend more through BNPL services than they as the BNPL market matures. On a more positive note, there were
can afford, make impulse purchases, and fall behind on payments. plenty of consumers who had tried BNPL and reported liking the
service. In fact, 85% planned to use BNPL in the future. ➔
The merchant perspective Conclusion
There are numerous surveys of BNPL users, but far fewer taking The rapid rate at which consumers have come to expect BNPL
the merchant perspective. Data from BNPL firms have presented checkout offerings has made fully understanding them a challenge
some compelling reasons for merchants to take a hard look at as merchants race to find ways to capitalise on their popularity.
their payment offerings and add flexible options. In general, BNPL As more research is conducted in the space, blind spots and areas
options promote greater spending among consumers – per TSG for future study are becoming clearer. A few areas – the responsible
survey data, 55% of consumers reported spending more money use of BNPL, assuaging consumer uncertainty, and learning more
when they used BNPL at checkout compared to a different type about the needs and expectations of merchants looking to adopt
of payment, and 79% indicated that they would use BNPL options them – will turn out more noticeable as the market matures.
more often if they were offered by more merchants.
Some firms can be particularly lucrative partners and boast millions
of users they can easily refer to merchants. Klarna has over 90 million
users globally, while Afterpay reports 16 million consumers in the
US. It’s also common for firms to highlight decreased cart abandon
ment as a key reason merchants should offer BNPL to customers.
Though BNPL firms continuously cite such statistics, a broader
study of the effects of BNPL on businesses would help to provide
additional context and accounts from the merchants offering such
plans to their consumers, and maybe even offer advice around
how to get started doing so. Currently, there’s little in the way of
guidance when it comes to merchant education in the BNPL space
– specifically when it comes to the way fees for merchants are
structured, how to ethically promote these types of plans, and
areas where BNPL firms can improve in their partnerships with
businesses. This is an oversight; a lack of feedback doesn’t mean
all is rosy.
The Strawhecker Group (TSG) is the largest analytics and consulting firm focused on
the payments acceptance industry. TSG serves the entire payments ecosystem and has
experience in working on large-scale projects for the world’s biggest payment players.
The firm has worked with all card networks, nine of the top ten merchant acquirers in the
US, as well as leading private equity firms and investment banks. The firm’s 50-person
thestrawgroup.com workforce is primarily in Omaha with satellite offices in Sacramento, Denver, and London.
Buy Now, Pay Later Global Mapping
Buy Now, Pay Later
Europe
The Nordics
UK
Netherlands Germany
Russia
Poland
Belgium
Switzerland Austria
Portugal
Romania
France
Spain Italy
Buy Now, Pay Later
Asia
CIS countries
(Uzbekistan and Kazakhstan)
Japan
China
Vietnam Taiwan
India
Hong Kong
Philippines
Thailand
Singapore
Malaysia
Indonesia
Buy Now, Pay Later
Americas
Canada
US
Mexico
Colombia
Brazil
Buy Now, Pay Later
Middle East and Africa
Turkey
Israel
Bahrain
Saudi Arabia
UAE
Oman
Nigeria
Ghana
South Africa
Buy Now, Pay Later
Oceania
Australia
New Zealand
Buy Now, Pay Later
Examples of business model
Business model During checkout, Upon acceptance Consumers Standard BNPL 1. Customer checks
the customer of the credit complete their with a fee taken on out with Atome
applies for Affirm application, a purchase, while the merchant and at 0% interest,
credit. Affirm shopper is able not yet paying for sometimes on the no admin fee,
performs a ‘soft’ to pay for the the goods – this consumer as well. and splits
credit check. purchase in four can be done later shopping bill into
Affirm settles the equal installments when the consumer 3 easy monthly
full amount with per two weeks. is certain to retain payments.
the merchant and the products. 2. Merchant will
services the loan AfterPay then receive full
directly with the sends payment transaction
customer. instructions to the amount (minus
consumer. They MDR – Merchant
can pay via the Discount Rate
consumer portal/ – fees) within
APP or via classical 3 working days.
bank transfer.
Consumers also
have the flexibility
to pause a payment
or convert it to an
instalment plan.
Payment One-time-use Credit or debit card No card needed Cards, SEPA DD Credit card,
instruments virtual card, debit to start instalment debit card, local
card plan. Independent e-wallets, direct
risk scoring. bank debit,
integration with
PSP platforms
Credit check Yes Yes Yes Yes Yes
Credit application Yes Yes Yes, using local Yes No

standards
Late fee 1.5% of purchase USD 8.00 initial fee Dependent on We’re one of the More information
amount, reported and an USD 8.00 country, order only lenders that available upon
to credit bureaus fee for every 7 days value and step of has never charged request
dunning. Starting at a single euro in late
EUR 2,50. fees.
Interest rates APR ranges from 0% Starting at 0% We do not view it No interest for
10% to 30% as interest but a users
depending on plan fee as a % of the
and credit. transaction amount.
The fee is between
2 and 4%.
Buy Now, Pay Later
Region
Europe UK Switzerland, France

Austria,
the Nordics,
Germany, Belgium,
the Netherlands
Asia Singapore,
Malaysia, Indonesia,
Hong Kong,
Thailand, Vietnam,
the Philippines,
mainland China,
and Taiwan
Americas US US, Canada
Middle East + Africa
Oceania Australia,
New Zealand
Buy Now, Pay Later
Business model A consumer can Whitelabel Retail International Offering 0% APR Pay first term at
choose CreditClick Finance (BNPL) Payment Facilitator instalments from the checkout with
as the method platform (Cross-border) 4 months to 12 iDeal, second and
of choise on the months third term within
payment page of 30 and 60 days.
the merchant: (1) An No catch.
existing CreditClick
customer pays
with username,
password, and
second factor. (2) A
new to CreditClick
customer fills the
form and sends
this to CreditClick.
The loan is
granted/declined
instantly. The
merchant receives
authorisation and
full settlement is
received the next
working day
Payment No specific Flexible – can be Credit cards Slice it & Flex Basic Digital account/app
instruments payment instrument configured for (Mastercard, Visa, coming soon (Pre-
required bank/retailer elo, Hipercard, release available in
Diner’s, AMEX) Android and Apple
App Score)
Credit check Yes, for new Yes – flexible and No (not required) Yes No
customers. Existing configurable
customers access
their accounts
via username
password and a
second factor.
Credit application Yes, for new Yes – flexible No (not required) Yes No
customers.
Late fee Differ per country N/A – this is down N/A – fully insured Yes In3 has no late fees
to our lenders and within 30 days.
retailers. Not set In case of non-
by us. payment, the bill is
eventually handed
over to a debt
collector.
Interest rates The Netherlands Flexible – 2.99% per month Yes 0% – no extra cost
9,9%; configurable by (to user, payable for consumer
Germany 8,9% our lenders and by merchant
retailers at discount if
preferred)
Buy Now, Pay Later
Region
Europe The Netherlands, UK, Germany, UK The Netherlands

Germany France, Spain, Italy,
the Nordics
Asia
Americas US Brazil US
Oceania
Buy Now, Pay Later
Business model The customer Patented Whitelabel BNPL Virtual card/cash BNPL
sets up a Klarna technology enabling
account, and aggregation of
completes the micropayments/
checkout process micro contributions
using only their and later
email address and payment. Running
mobile number. Tab allowing
Klarna settles the contributions and
full amount with to buy individual
the merchant and pieces of content
sends the invoice without upfront
to the customer registration or
via email. The cus upfront payment,
tomer has 14 days facilitated by the
to pay the invoice ‘use now, pay later’
or convert to an approach.
installment plan.
Payment Credit card, debit Debit card, credit Debit and credit Virtual credit, direct Cash, auto-debit,
instruments card, direct debit, card, Apple Pay, cards debit and bank transfer
bank transfer, Google Pay
invoice
Credit check Yes N/A Yes No, we use our Yes

proprietary credit
decision engine as
there are no formal
credit bureaus in
these markets.
Credit application Yes N/A No Yes Paidy Plus > Yes

Paidy > No
Late fee Up to USD 10 (US) N/A Up to AUD 15 No No
Interest rates 19.99% (US); N/A N/A 4-15% (depending 0%

18.9% (UK) on BNPL/ cash)
Region
Europe Sweden, Norway,

Finland, Denmark,
Germany, Austria,
The Netherlands, UK
Asia Philippines, Japan

Indonesia, Vietnam
Americas US US
Oceania Australia
Buy Now, Pay Later
Business model Pure BNPL, pay Two-sided network Customers can We charge BNPL
in 30 days or use Splitit to set merchants per
switch and pay up payment plans transactions.
in convenient with their existing
instalments. credit cards without
incurring interest
charges or fees.
Payment Direct integration Direct debit (UPI), Credit card Credit cards, debit Debit card, ACH
instruments with merchants, debit cards cards, mobile
integration through wallets
PSP/Visa card from
Q4 2021
Credit check Soft credit checks Proprietary No No No

(does not affect credit scoring
credit score) independent of
bureau data
Credit application No No, Simpl No No Yes

pre-selects
consumers in close
collaboration with
merchants.
Late fee No late fees INR 100 No We impose late No

(~ USD 1.50) fees (SAR 25) it
will increase every
15 days of delay
with the same
amount. Limited at
150 Saudi Riyals or
25 % of the order
value (the minimum
of the choices).
Interest rates 0% for transactions 0% 0% We are Shariah 0%-36%

paid in full within compliant and do
30 days; not charge interest
0%-15% of rates.
total purchase
value if paid in
4 instalments
(merchant
dependent).
Buy Now, Pay Later
Region
Europe Poland
Asia India
Americas US, Canada US, Canada
Middle East + Africa Saudi Arabia
Oceania
Mobile Payments: E-wallets and Super Apps
Size of the market

As many industries around the world moved online, the global e-wallets market is poised to register significant growth rate further.
Consumers have been increasingly relying on online shopping and ecommerce, especially during the pandemic. Consequently, mobile
wallets have seen significant growth in demand as a convenient way to make transactions.
The Worldpay Report indicates that e-wallets remain a preferred payment method among global ecommerce consumers, registering 44.5%
of global ecommerce transaction volume by 2020, an increase of 6.5% from 2019. By 2024, digital wallets are projected to represent 51.7%
of ecommerce payment volumes.
Even though mobile and digital wallets were the most widely used payment methods when buying online, some regions used it more than
others. In the Asia Pacific region, for example, mobile wallets accounted for about 60% of all online transactions in 2020. On the other
hand, in Latin America, this method accounted for only about 20% of the transactions.
In China, the popularity of digital wallet platforms like WeChat Pay, Tenpay, and Alipay drives the adoption of this payment method. The digital
wallet market is expected to grow at a CAGR of 12% until 2023. These trends are sparked by their inherent suitability for mobile commerce,
their seamless integration with social media and the rise of 5G.
In the UK, digital wallets are growing at a CAGR of 23%, and will be accounting for almost a third of payments by 2023. The most widely
used wallets are PayPal, Apple Pay, and Google Pay.
Latest developments
• The European Union (EU) will soon introduce a digital wallet, allowing citizens to store payment information and passwords. People
with direct knowledge of the plans said the digital wallet would enable citizens to log on to government websites and pay utility bills using
a single recognised identity. The EU-wide app can be accessed via fingerprint or retina scanning among other methods and will also serve
as a vault where users can store official documents.
• The Reserve Bank of India (RBI) has issued circulars calling on all mobile wallets, such as PhonePe, Google Pay, and Mobikwik, to
become interoperable by fiscal year 2023. Essentially, beginning April 2022, a mobile wallet user, who is fully vetted and has fulfilled all
KYC requirements, will be able to send and receive money from various mobile wallets. Furthermore, the central bank stated that these
functions can be achieved for card-based PPIs through card network interoperability and for e-wallets through UPI (Unified Payments
Interface).
• Google partnered with Wise and Western Union to provide international money transfer services through its US payments app. Google
Pay users in the United States are now able to send money to those using the app in India and Singapore. This service is expected to
expand to the 80 countries currently accessed through Wise, as well as 200 via Western Union by the end of the year.
• Indonesia’s ride-hailing company Gojek and the eccommerce company Tokopedia have merged to form the world’s fourth largest techno
logy company. This newly formed company named GoTo could be worth up to USD 18 billion. It is expected to be the first platform to
combine ecommerce, on-demand services, as well as financial services in Southeast Asia,
• Flutterwave, an African payments company, has announced a partnership with PayPal that will allow PayPal users to pay African merchants
through the ‘Pay with PayPal’ feature. As a result of this partnership, African businesses will be able to make use of the more than
377 million PayPal accounts worldwide, overcoming the challenges posed by the highly fragmented and complex payment infrastructure
on the continent, as reported by TechCrunch.
Juniper Research
Mobile Payments: Key Market Developments
Nick Maynard is a Lead Analyst at Juniper Research. His key area of focus is the fintech area,
including Digital Money Transfer, AI in Fintech, Digital Banking, and Point-of-Sale Terminals, among
others. Nick has a BA (Hons) in History from the University of Reading.
Nick Maynard Lead Analyst Juniper Research
The mobile payments market has undergone a significant acceleration tracking systems, including the NHS app in the UK and COVID
in the past 12 months, however, the pandemic has accelerated an passport initiatives in other markets, as well as their use for presen
existing transition towards mobile as a channel, rather than creating ting menus in restaurants and the like. This has made QR codes front
the trend itself. For several years, mobile has been increasing as of mind. In payments, they have been in markets where the appeal
a proportion of digital commerce. As smartphone ownership has has traditionally been limited. For example, in the US and Europe,
become very high in many markets and is even rising rapidly in PayPal launched an in-store payments option leveraging QR codes.
emerging markets, the app has surfaced as the most important PayPal announced US pharmacy chain CVS as a partner for this,
sales channel in ecommerce and is growing in importance in store. and since this point, its QR solutions are being integrated at POS
terminals by Fiserv and at Munich Airport. These developments
The most visible development in the wake of the pandemic has demonstrate the momentum PayPal has in the QR area.
been an acceleration of in-store use of mobile payments, both via
contactless (NFC) and QR code payments. However, for QR code payments, markets like the US and Europe
are not going to be the main drivers of growth. China has the most
Contactless payments for an optimised contact- advanced QR code payments market in the world, with Alipay and
free experience WeChat Pay being the two dominant players. India also has a well
Contactless payments have accelerated in the last 12 months most established QR code model under the UPI system, which has stimu
notably in markets that were lagging behind in terms of contact lated strong use in-store.
less adoption, such as the US and Germany. This has been under
standably stimulated by concerns around the hygiene of using cash QR code payments make the most sense as an alternative to cards,
and has led to much faster growth than previously expected in these rather than as a proxy, given that they do not require card payment
markets. Crucially, mobile payments have all they need to succeed infrastructure to process, so we anticipate the strongest growth in
in these markets – a high smartphone penetration and a high card future to come from developing markets lacking a well-established
penetration, OEM Pay apps already pre-installed on devices and a card infrastructure, rather than developed markets. A key way of
high proportion of card acceptance at point-of-sale. As such, we supporting this growth will be regulators creating national QR code
anticipate that contactless mobile payments will continue to grow schemes to standardise solutions, which we predict will accelerate
rapidly, supported by the increase of payment of limits and rising markets such as Singapore and Saudi Arabia, where standards
acceptance. have been rolled out. As emerging markets seek to embrace digital
payments, national QR code schemes will be an important way in
QR code payments developments which these markets can boost their QR code payment growth. ➔
QR code payments have also enjoyed a surge in popularity during
the pandemic. QR codes have been integral to many COVID-19
Ecommerce facts Figure 1: Total digital commerce spending (USD
Developments within mobile payments, however, go beyond the million), 2021 vs 2025
in-store experience. Mobile payments are also accelerating in the
ecommerce environment, supported by multiple factors. One of them
is the rise of the use of e-wallets in-store – these e-wallets, particularly
the OEM Pays (such as Apple Pay, Google Pay, Samsung Pay), will
typically offer APIs that enable these to be added as a checkout
option on mobile browsers or apps in ecommerce. This means
that increased use of OEM Pays in store can lead to an increased
use online. The biggest limiting factor here is acceptance – contactless
POS terminals are widespread in many markets as a necessary part
of taking card payments, but e-wallet integrations in ecommerce
are an additional step that merchants need to make. As such, the
biggest challenge in this area is merchant acceptance, not user
appetite.
Mobile is becoming progressively dominant in the area of digital
commerce. Our recent report, Digital Commerce, found that mobile Source: Juniper Research
commerce will account for 73% of all digital commerce transactions
by value in 2021; rising to 79% by 2025. As Figure 1 demonstrates, The bottom line
this is a massive opportunity. Ultimately, we forecast that mobile payments will be the driving force
behind digital transformation in payments over the next five years.
Mobile payments vendors will need to focus on the user experience
to best compete over the coming years, as competition intensifies.
In the first instance, this means boosting acceptance at point-of-
sale, both offline and online. In the longer term, offering insights on
spending, as well as insights on financial health via Open Banking
are two promising ways that mobile payments can evolve, but we
anticipate that this will happen at an uneven rate, as Open Banking
ecosystems are stronger in some countries than others.
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 Tier One operators and
vendors. To find out how we can help you, contact info@juniperresearch.com or visit www.
juniperresearch.com.
juniperresearch.com
BLIK – Polish Payments Standard
BLIK and the Future of Payments in Poland
Since 2017, Dariusz Mazurkiewicz is the CEO of Polish Payments Standard (Polski Standard
Płatności – PSP, which runs the popular, account-based mobile payment system BLIK). In 2015–2017,
Vice President of the BLIK Management Board, responsible for product and partner development of
the system. Previously in the ecommerce and media industries.
Dariusz Mazurkiewicz CEO BLIK – Polish Payments Standard
The mobile payment system BLIK transformed the face of mobile A glimpse into the future
banking in Poland. From January to March 2021, BLIK users performed More than 74% of BLIK transactions take place in ecommerce, and
over 153 million transactions – almost twice as many as in the same at the end of 2020 BLIK overtook payment cards in terms of the number
period of 2020. At the end of the first quarter of 2021, 7.6 million people of transactions made in global ecommerce (Polish and foreign) for the
were actively using it (55% year-on-year increase), and the fastest- first time.
growing channel is the BLIK phone transfer (P2P).

People want to pay with BLIK not only in Polish online stores but also
BLIK, a solution entirely invented in Poland, was launched in February in foreign ones. That is why it is important for us to establish partner
2015 due to an agreement between six competitor banks. It was based ships with foreign payment operators who support not only domestic
on the IKO mobile banking application used at PKO Bank Polski. but also global ecommerce platforms. We want everyone who uses
During these past six years, BLIK was made available by other BLIK to be able to pay with it anywhere in the world.
institutions as well, and today it can be used by 95% of mobile
banking customers. Since its launch, BLIK has become synonymous The Polish Payment Standard is intensively working on making BLIK
with mobile payments in Poland. However, such a rapid develop payments available in global ecommerce. Additionally, after esta
ment of a system built from scratch would not be possible were it blishing cooperation with the payment platforms PPRO and Adyen,
not for the cooperation of many players on the market, both traditional users are able to pay with BLIK also in online stores operated by
and online – banks, the clearing house, paying agents, and sellers. these leaders of international payment solutions.
The COVID-19 pandemic has significantly sped up the trends we Instant P2P payments growing rapidly
have seen over the past few years when it comes to the development Another important trend is the process of moving away from cash. This is
of mobile payments. Let us start by mentioning two driving forces. not, by any means, about the physical hygiene of banknotes. This is about
One is the dynamic development of the ecommerce market – the something more than that – a social phenomenon. To square accounts
other is the digitisation of the customer-bank processes, which can with your friend, colleague, your child’s class treasurer, or a person
be seen in the increasing popularity of mobile banking. What initially who is buying a gift for someone leaving a job, we no longer need to
seemed to involve long-term strategies for organisations suddenly dig into our pockets or run to the nearest ATM, but instead, we can do
turned out to be the only development path to follow. If we are to it online – instantly and conveniently. During the pandemic, we have
have a look at ecommerce, a huge number of businesspeople have experienced phenomena such as shop sharing, shopping for those
been faced with the choice of either closing their businesses or who cannot or should not leave their home because of their age,
launching online stores. which has consequently led to cashless settlements. Senior citizens
are becoming increasingly adept at mobile banking. ➔
Today, BLIK’s second most popular function is phone transfers.
Almost 19 million such transactions were made from January to March
2021, representing an increase of 156% compared to the same
period in 2020. BLIK phone transfers are the fastest and safest
method of transferring money between users, especially during a
pandemic.
Contactless global payments

Contactless technology has become even more popular and wide
spread in 2021. As in the case of moving away from cash, there is
more to this issue than just the aspect of not having to insert your
card into a slot: there is no need to carry a wallet at all!
In the nearest future, BLIK will primarily focus on making contactless
payments available in Poland and the world and developing partner
ships with foreign platforms that provide payment solutions for global
ecommerce players. Consequently, BLIK aims to expand its network
far beyond Poland and to cooperate with foreign banks so that they
can offer BLIK as a payment method to their clients – users of banking
applications around the world.
The model suggested by BLIK – which will, hopefully, be increasingly
successful abroad – is based on customer-bank relationships, on
banks’ mobile solutions that are trusted by customers because they
keep their money and savings there and are satisfied with these
services.
This customer-bank relationship is crucial for us. We do not
introduce any proprietary application as one of many players. Our
model is unique. We have no doubt that the partnerships we are
able to demonstrate in 2021 will help us broaden our ambitions
beyond the Polish market.
BLIK is a mobile payment system. It enables ecommerce payments, POS payments,

ATM cash withdrawals, and mobile P2P payments. The company has a dominant share of
mobile payments in Poland. BLIK has won many prestigious awards, including the title of
FinTech of the Year in 2019 by Cashless.pl and FinTech of the Year 2020 by Invest Cuffs.
blik.com
Huawei Technologies
Building a Digital Wallet for the Future with Huawei Pay
Ma is currently responsible for Payments, Maps, and AI businesses’ strategic design, product
development, and market operations. He graduated in computer science and technology, and has a
career spanning 17 years at Huawei, with responsibilities covering consumer devices, software, and
digital services.
Chuanyong Ma Director Payments, Maps and AI, Huawei Consumer Business Group
Unlocking cutting edge payments Huawei Pay launched in China in 2018 supporting both QR code and
In China, over 850 million people use mobile payments, on average NFC. Huawei’s philosophy is to enable convenience and preference,
three times per day, 85% of which are via QR codes. With mobile the two strongest deciding factors when selecting a payment method.
payments deeply penetrating Chinese consumers’ daily lives Through partnerships with UnionPay and issuing banks, Huawei Pay
both choice and flexibility are vital. Whilst these demands are not is now accepted at more than 16 million contactless POS terminals.
unique to China, the rate of mobile payment penetration for in-store
payments in China is around double that of the UK and the US, The QR code revolution in China has been pervasive. In bakeries and
providing fertile ground for innovation. fruit shops, there are no longer queues to checkout. In restaurants, a
quick scan of the QR code on the table, allows customers to order and
pay for a coffee in less than a minute. Waiters may forget you don’t
want sugar, but the system doesn’t. The humble QR code has embedded
itself into daily life by making the transaction ‘quiet’ but ‘intelligent’.
QR codes are not just reserved for in-store transactions – websites in
China also include a QR code payment option. A smartphone camera,
payment app, and fingerprint verification is all that is required. There
is no need to enter card details, thus improving checkout speed.
Despite the rise in QR codes, NFC is popular in some scenarios,
particularly for transit – by digitising the transit card, it allows easy
Huawei sees payments as part of a broader, integrated experience use and quick top-up services. ➔
where rich financial applications and innovations are built around
the payment itself. A payment is ultimately only the result of a buying
decision, but how that process is embedded into the merchants and
customers’ value chain is how the next generation of payments will
be unlocked.
Standardisation – a pillar for payments innovation software environments. OEMs can help the payments industry
Whilst payments is a competitive market, the role of standards and navigate this space.
industrial collaboration should not be overlooked. Standardisation
and innovation are not often considered partners, but organisations Additionally, customers are beginning to embrace wearables and the
can innovate faster when a level playing field and best practices broader IoT market to perform payments. OEMs can work with the
are in place. payments industry to develop best-of-breed digital solutions, next-
generation authentication, and value-added services. Innovations
The drive towards Central Bank Digital Currencies (CBDC) in many such as a keyless future are becoming reality. Payment use cases
markets will involve new standards and regulatory frameworks. for hotel check-in/out, car rental services, and lockbox pay on
In partnership with the Peoples’ Bank of China, Huawei is actively collection will be exciting ones to watch.
progressing best practice for China’s CBDC (DCEP). The Huawei
Mate 40 smartphones feature a built-in wallet with hardware-level Digital wallets for the future
security, controllable anonymous protection, and the ability for New technology enables digital wallets to modernise at a faster
payer and receiver to make offline transactions. In areas with poor pace than their physical counterparts. Cryptocurrency, Buy Now,
network, coverage transactions can be made via NFC by simply Pay Later, or hyper-personalisation are much easier to achieve on
tapping each other’s phones. digital wallets.
Whilst there cannot be a like-for-like implementation between China However, markets such as Europe are highly developed with a
and other markets, with the ongoing development of other global plethora of localised wallets. Huawei is working together with local
CBDC initiatives, Huawei can bring its experience on how this new providers, to bring the services our shared customers know and
technology can deliver the needs of consumers, industry, and love. Through local cooperation with Bluecode in Germany and
regulators. Austria, BANCOMAT S.p.A. in Italy and Zapper in South Africa,
Huawei Pay has enabled payment solutions beyond APAC.
OEMs as a partner for financial services

As the payments industry catapults towards the intersection between During the pandemic, digital payments uptake has increased at a
security and user experience, Original Equipment Manufacturers faster pace than forecast. However, as we move into a digital-first
(OEMs) can play a role in supporting the financial services industry world, pushing the boundaries of technology to create scalable,
in developing digital-first solutions that befit the 21st century. widely adopted solutions are becoming more of a challenge.
Supporting a seamless but integrated payments experience is the
As more players enter the payments value chain, trust and confidence route to success and it is no longer the sole responsibility of the
are of paramount importance. Combining software and hardware- financial services industry – through collaboration, great rewards
backed security is an important consideration when building modern can be reaped.
digital solutions. As the industry develops CBDCs, interoperable
digital IDs and enhanced biometrics, the security of these assets
will need to be watertight. The Trusted Execution Environment of the
device provides higher levels of trust and access control for assets
stored in this space, when compared to more general purpose
Huawei is a leading provider of information communications technology (ICT) infrastructure

and smart devices. We are committed to bringing digital to every person, home, and
organisation for a fully connected intelligent world with the hope of making dreams come
true. Huawei Consumer BG covers smartphones, laptops, and wearables, mobile services
including Cloud, AppGallery, Payments, and more.
huawei.com
MRC
E-wallets Latest Trends: About Challenges and Consumer Trust
Úna is VP of Global Expansion and Merchant Advocacy at the MRC. Having worked in the payments
industry for more than 25 years, she has chaired industry working groups at the European level,
ran Laser Card (the Irish national debit card scheme) for 12 years, and was responsible for driving
the development of policy on major initiatives such as SEPA. She was recently appointed to the
European Commission Payment Systems Market Expert Group (PSMEG) to advise on regulatory
policies on payments and payment fraud prevention. Here she brings the Voice of the Merchant to
the European Payments Regulator’s table.
Úna Dillon VP of Global Expansion and Merchant Advocacy MRC
The payments industry has seen an increasing number of alternative There are many e-wallets currently available on the market. Over the
payment methods on the market, especially over the past 12 to 18 last 14 months, people have shied away from using cash in stores
months. This is a result of consumer needs, new businesses adapting to ensure social distancing and many have moved to tapping their
to local and regional payment requirements, and to payment regulation. smartphones instead. So, there has been a clear shift to mobile
and digital commerce.
Take Secure Customer Authentication (SCA) regulation which has
been enforced in Europe since the 1 January 2021. While the payments According to an article by RetailDive in 2018, the number of customers
ecosystem moves to comply with the regulation, there have been using mobile wallets in 2019 was expected to be 2.1 billion. That number
delays in syncing up processes and data flows between card issuers has only increased over the past 18 months. This activity is leading
and retailers and as a result, many consumers have moved to an already to many large brands introducing their own e-wallets. We can expect
familiar payment method, that has authentication measures built in: to see more companies jump on board as payments organisations
e-wallets. This form of payment makes it easier for retailers to ensure and phone companies see the opportunity to be top of wallet for
their transactions are SCA-compliant because of default security consumers. Brands that already offer e-wallets include Alipay,
measures in place such as biometric authentication (fingerprint) and Microsoft Wallet, Paytm, Mobikwik, and Samsung Pay. The largest
their customers experience a frictionless purchase. brands providing the service are Google, Amazon, PayPal, and Apple.
PayPal currently has 361 million active users. According to a June 2020
What exactly is an e-wallet? report from Lumos Business, 5% of global card transactions are
In simple terms, it is an electronic payment method. An e-wallet can currently processed by Apple Pay. ➔
be used when purchasing goods or services on a computer or smart
phone; either online or in-store where NFC technology is used. Some
e-wallets can also hold electronic versions of a driver’s license,
health insurance card, store loyalty cards, cryptocurrency etc.
E-wallets offer a great alternative payment method for consumers
who regularly experience high abandonment rates during the check
out process, which can be due to payment delays, a lack of trust in
the retailer with their card payment information, insufficient payment
methods offered by the merchant, declined credit card payment, or
other various reasons.
Challenges
Recently, there have been challenges for e-wallet companies. Moreover, in a recent Auriemma Roundtables payments survey
In August 2020, the Russian Government banned the use of anony (reported by Payments Dive), it was found that consumers are slow
mous wallet deposits in a move that affected more than 10 million to recommend e-wallets to a friend or family member.
users across the country and several neighboring countries.
According to the law, the ban was put into place to control illegal Therefore, much work needs to be done by the providers to build
activity such as money laundering, drug trading, terrorist financing, consumer trust and promote the benefits of using e-wallets – because
and other financial fraud. they are here to stay.
Digital wallets such as Yandex.Money (now Yoomoney), QIWI-Wallet
WebMoney, PayPal, and VK Pay were immediately affected, with
customers endeavouring to recover genuine funds and PSPs clamou
ring to provide refunds to their merchant customers where sales
were blocked mid-transaction.
The change meant that any cash deposits made by e-wallets ceased,
so users needed to use bank transfers instead, where they had to
identify themselves by linking their account to their e-wallet. It also
enabled lawmakers to identify where the funds were coming from.
Similarly, the law impacted users who bought and sold crypto
currencies using their digital wallets.
E-wallet providers are also obliged to comply with regulations,
especially the varying financial and consumer-based regulations in
each country in which they operate. So GDPR compliant e-wallets
are a must.
Consumer trust
With growing reports of hacking incidents, ransomware attacks, data
leaks etc., consumers are growing more cautious about uploading
all their payment data to one place.
Recent research published by YouGov in the UK (fielded by The
Financial Brand) stated that of the consumers polled, 38% are
concerned they will lose all their payment information if they misplace
their smartphone, and it will be used by others to purchase goods
or services from their device.
The MRC is a global membership organisation connecting ecommerce fraud and payments
professionals through an educational programme, online forums, career development,
conferences, and networking events. As a non-profit organisation the MRC encompasses
a membership network of over 500 companies, all focused on fraud prevention, payments
optimisation, and risk management. The MRC is headquartered in Seattle, Washington.
merchantriskcouncil.org
EMPOWERING PAYMENTS AND FRAUD PREVENTION PROFESSIONALS
•Attend global conferences and local events
to broaden your network and share ideas Networking and Events
with industry peers
•Join the MRC community to discuss trends,
best practices, and to help drive the Educational and
payments ecosystem forward Professional Development
•Use our extensive resource library to learn,

grow your business, and protect your Marketing and Promotional
bottom line Opportunities
•Earn continuing professional education
credits with our on-demand payments and
fraud prevention courses Advocacy and Leadership
•Stay informed, make your voice heard, and
help shape the future of eCommerce
MAKE AN IMPACT - BECOME A MEMBER

Contact us at membership@merchantriskcouncil.org merchantriskcouncil.org
Rappi
Mobile Payments and Super Apps in Latin America
Juan Pablo Ortega is a Co-Founder of Rappi, Latin America’s largest and fastest-growing
on-demand platform and one of the region’s ‘unicorn’ startups. As Co-Founder, Juan Pablo has
played an instrumental role in taking the company from being a small team food delivery startup to
becoming one of the region’s largest, multi-functional digital platforms with operations in nine
countries and a valuation of approximately USD 3.5 billion. Juan Pablo started Rappi’s rapid inter
national expansion by launching in Mexico and then built and scaled Rappi’s Payments and Fraud
teams and capabilities while architecting the buildout of Rappi’s financial services arm – starting with
RappiPay. RappiPay offers Rappi users a variety of digital payment functionalities, including in-store
QR payments, P2P, and bill payment services, as well as a contactless-enabled Visa debit and credit card.
Juan Pablo Ortega Co-Founder and Head of RappiBank Rappi
Mobile payments in Latin America have been evolving at an unpre In Rappi, cash has lost more than 42% of the market share just in
cedented rate in the last twelve months. For delivery apps like Rappi, Colombia, while in Argentina this trend is even more pronounced,
cash is still a predominant payment method in most of the region losing 53% 2019 vs 2020-2021. Overall, when looking at the nine
but especially in Colombia and Mexico. Unlike its neighbours, Brazil countries in which Rappi operates, the market share of cash is down
is the only country where credit cards are widely used across custo 40%.
mer segments – however, debit cards have been blocked by issuers
for card-not-present transactions mostly due to high fraud levels. As we come back to the ‘new normal’ and adjust our behaviour in a post-
COVID-19 world, we expect this trend to continue and cash in mobile
In the past couple of years, Colombia has seen an increase in the payments will tend to disappear at some point. It is still early to tell
use of non-cash payments. This has not been the case for long, as which will be the new preferred payment method, but we would not be
around 70% of adults do not have a credit or debit card. The recent surprised if cryptocurrency starts eating some of the pie. Countries like
change has been triggered by the increase of smartphone usage Mexico and Argentina are now seeing a more widespread adoption
and the rise of mobile apps that enable users to order food, groce of Bitcoin, Ethereum, and others, while at the same time merchants
ries, or pay bills online. are starting to accept them as a payment method. ➔
Big banks are creating their own e-wallets, which are integrating
with the checkout flows of popular mobile apps, such as Nequi from
Bancolombia (Colombia’s biggest bank). In addition, PSE (Colombia’s
ACH system for ecommerce) is becoming a standard in mobile pay
ments, allowing users to pay directly with their bank accounts. These
two payment methods, the increased penetration of credit cards,
and the recent pandemic have resulted in an explosive growth
of non-cash payment methods.
The rise of super apps
Super apps combine restaurants, groceries, pharmacy, and conven
ience store delivery with services like ridesharing and financial
services – in other words, a do-it-all app. This model has proven
to be attractive, especially in emerging markets were people have
basic smartphones with little storage capacity on them – having a
single app that can solve for all their needs is changing the way
people consume. Super app’s only prerequisite is that it’s in need
to seamlessly integrate multiple services into one single app that
shares onboarding, checkout, and payment to facilitate the customer
journey.
Super apps around the world have been a contributing factor in
the shift from cash to cashless. WeChat in China, for example,
became one of the most popular payment methods, displacing cash
completely. Today, in China people pay for everything with either
Alipay or WeChat Pay. Rappi decided to start offering financial services in order to
streamline one of the most important steps in the customer journey:
how users pay. We were sure that by using technology financial
services could be faster, cheaper, and more realisable compared
to current, traditional solutions. We already launched our credit
card in Mexico and will soon launch it in Brazil, Colombia, Peru,
and Chile. Our credit card is 100% digital, except the physical card
that closes the gap to the physical world – the application, KYC,
and onboarding are done through the Rappi app. The user gets a
digital card instantly, and we even provisioned the card in Rappi so
that they can start using it right away. We are also working on a new
service called ‘Paga con Rappi’ (Pay with Rappi) that will enable
all of our users to pay on different websites or mobile applications
utilising their registered payment methods, without having to input
LATAM’s super app their card and personal information or without the need to sign in.
In Latin America, at Rappi we are building the fastest-growing
super app of the region. With Rappi, you can order food from your We are living through existing times; technology is changing how
favourite restaurants or products from the grocery store, and you we do things every day and super apps are helping us save time
can even get a credit card, which takes less than five minutes, and that we can now spend doing what we like. Payment methods in the
receive a physical card in less than one hour. region will keep evolving, and we expect that new technologies will
make paying so easy that it will become second nature.
Rappi is Latin America’s ‘everything’ marketplace super app. Rappi operates in 220 cities
across 9 countries. Today, Rappi has over 150,000 couriers and has worked with over
140,000 merchants in the region. The platform boasts more than 64 million users in Latin
America. Rappi has been defined as the Latin American super app and one of the fastest
growing companies in the region.
rappi.com
QR Codes
Ant Group
QR Codes and the Chinese Consumers’ Digital Opportunity for European Businesses
Jonathan Quin is the head of Europe Strategy for Ant Group and Alipay, China’s leading digital
payment platform. He is the co-founder and previously Chief Executive Officer of UK-based WorldFirst,
which became a part of the Ant family in 2019.
Jonathan Quin Head of Europe Strategy Ant Group
When I first started travelling to China regularly in 2015, I was struck by And while a big part of the spending power in Europe is concen
how the country’s consumers, in particular its millennials, had become trated among the older generation, or the so-called ‘silver economy’,
increasingly digital: payments were almost exclusively made by China’s urban young are driving much of its consumption growth.
scanning QR codes, and nearly every aspect of daily life – from This is partly enabled by much higher salaries in the cities, and also
hailing cabs and finding food to managing finances and booking because of demographic change from past population control policies,
medical appointments – was made with a few taps on their mobile which have seen a funnelling of resources from older to younger gener
phones. ations.
Although the events of the past year have hit economic activity Chinese consumers are also savvier and wiser about their spending
around the world hard, the growth of Chinese digital consumption post-COVID, with surveys showing young consumers intending to
has not abated. Instead, the country has seen accelerated digitali save more, more interested in insurance products, and keen on better
sation, not just in ecommerce and mobile payment adoption, but also quality, healthier, and eco-friendly purchases.
in the transformation of more traditional businesses such as food
shopping and house viewing. European retailers should take note, as there is a huge opportunity
to sell quality products to these savvy consumers who also happen
Can European businesses benefit from the digital revolution of Chinese to be digital natives, by diversifying sales channels to take advantage
consumers, viewed by many as one of the important growth engines of cross-border ecommerce platforms such as Tmall Global and
of the world? I firmly believe so. Businesses here should already be Shopify.
preparing themselves, so they can quickly capture these consumer
trends amid a global recovery that the OECD predicts will be led Some European businesses find this prospect daunting, believing
by developing economies in Asia. they may be too small to export, that the process will be too compli
cated, or that there won’t be strong enough demand for their products
From China to Europe overseas. But this reflects a huge disconnect between perception
Why is keeping up and adapting to these fast-changing trends and reality.
important? We know the average European millennial, born since
the 1980s, has seen huge lifestyle changes brought about by In November 2020, more than a thousand British brands took part in
technology, the advent of the Internet, and an almost doubling of China’s famous 11.11 global shopping festival, among which Welsh
per capita GDP in their lifetimes. But the changes experienced by beauty company SmoothSkin and British tech giant Dyson made it
the Chinese millennial have been even more significant, driven by into the top ten list of brands globally selling into China, according
growth that’s more than ten times greater. to a report by Alibaba. ➔
These tech platforms enable businesses to ‘start small’ and trial selling The opportunities that lie ahead
their products globally without huge upfront investment. As more people start to travel overseas again, our aim at Alipay is
to help businesses around the world easily connect, engage with,
We had also seen before the pandemic how Chinese consumers’ and market to them, including by adding Alipay as a mobile payment
digital habits travelled overseas, including to France and the UK, option. We also partner financial institutions around the world, among
named as two of Chinese tourists’ favourite places to use mobile which European banks such as Spain’s BBVA, to help local merchants
payments. Retailers have benefited in return, with four-fifths of those increase sales from Chinese tourists by adopting QR code payments.
in the UK who adopted Alipay for customer payments experiencing
increases in both footfall and revenue, according to a 2019 survey Over 90% of Chinese tourists surveyed by Nielsen in 2018 said they
by Nielsen. would be more likely to shop with merchants that accepted their
digital wallet. Yet the reality was that they could only make 28% of their
spending via mobile payments. This presents an untapped opportunity
to appeal to a group of consumers who were among the world’s top
shoppers, spending an average of about EUR 2,5000 per overseas
trip.
One of McKinsey’s recent reports called Chinese consumers the ‘
Growth Engine of the World’. As the world economy starts recovering
from the after-effects of the pandemic, don’t miss the chance to
add this growth engine to your business.
While the coronavirus has made international leisure travel almost
impossible today, there are some signs of green shoots. The director
of the International Air Transport Association noted that while many
countries remain cautious, personal and leisure travel will start
recovering from the second half of 2021 as borders gradually reopen
to tourists.
The good news for European businesses? We recently surveyed
over 500 Alipay users who had travelled to the UK previously and
nearly 90% told us they planned to restart international travel in the
next two years. China has announced plans for a ‘vaccine passport’
for its citizens, which should avoid barriers to their travel plans.
Ant Group s the owner and operator of Alipay. Its aim is to create the infrastructure and
platform to support the digital transformation of the service industry.
antgroup.com
Euromonitor
Quick Response: Pandemic Highlights Opportunities for Technology to Grow in
Western Markets
Ryan Tuttle is a Consumer Finance Consultant at Euromonitor International. His work at Euromonitor
focuses on global trends and developments in cards, payments, and lending. He has spoken at several
industry conferences in recent years, including the Bank Customer Experience Summit in Chicago and
the Payments Summit in Phoenix, Arizona.
Ryan Tuttle Consumer Finance Consultant Euromonitor
QR codes – much ballyhooed, then much maligned – are back, and Further, although the 2020s have kicked off to an inauspicious
this time they appear to have staying power. For much of the past start for many businesses, QR codes are finding their way into an
decade, technology has played a pivotal role in catapulting digital increasing number of fintech platforms such as PayPal, Revolut, and
payments in parts of Asia, most notably China. As the rest of the world Facebook Pay.
looks to rebound from a crippling pandemic, inroads made by QR
codes in 2020 are poised to shift a number of consumer touchpoints Social distancing and public health concerns have opened a
for brands and businesses alike. tremendous window of opportunity for contact-free payment methods
such as QR. The onset of the pandemic has perhaps most drama
Nearly three decades old, the Quick Response (QR) code has been tically impacted small businesses and brands, which were forced
utilised for any number of applications over the years. It entered to adopt a variety of digital innovations en masse in order to survive
many Western markets in the 2000s as a much-hyped opportunity in a distanced environment. QR codes quickly found their way into
for digital interfacing – but may have been a bit ahead of consumer new applications, such as restaurant menus, and are positioned for
sentiment at the time. Many phones required third-party apps to major growth as commerce grapples with a new paradigm moving
decode QR codes, and interfaces were often clunky and challenging forward.
to use. As smartphones became a ubiquitous component of life
across much of the globe, QR codes have played a significant Direct payments applications
role in the Chinese payments market through popular super apps Direct payment and commerce opportunities for QR codes are
like Alipay and WeChat Pay. Markets without significant POS numerous. Many of the first payment applications for QR codes
infrastructure have benefitted greatly from the ability to quickly have arisen in the form of P2P payments, enabling users to quickly
generate new codes and link both merchants and consumers to a exchange their account information via code. Venmo, for example,
payment system. offers personal QR codes that can be shared to find user info. POS
QR code usage has been sporadic in Western nations historically,
QR codes: from the 1990s to COVID-19 often relegated to loyalty programme information and a select few
The past few years have not been short on stories of the QR payment providers. The unparalleled success of QR for POS pay
revolutionisation of commerce in Asia, but Western companies have ments in Asia, however, has opened the door for growth beyond
started to make QR inroads as well. In particular, the decision by the region. Announcements continue with great frequency of new
Apple in 2017 to bring native QR support to its built-in camera app will companies launching QR acceptance solutions or payment options
likely be remembered as a turning point for QR use outside of Asia. for customers. ➔
Beyond conventional P2P and POS applications, QR codes offer As governments launch new real-time payments systems and a
significant potential for easing pain points in a number of payment significant number of new businesses are launched to fill the gaps
processes. One such application is in-seat payments at sporting of those that went under during the pandemic, QR codes will see
and entertainment venues – bypassing the need to pass cash down additional opportunity for innovation and application. Perhaps it isn’t
the row. Other potential applications include payment via a QR code too farfetched to see enterprising companies look to leverage the
located on a table and more outside the box examples – such as the meme economy and ‘stonks’ trends to add QR codes in partnership
one of a restaurant in China which allows customers to tip waitstaff with retail investor fintechs – redirecting consumers to invest in their
via QR buttons affixed to their person. favourite products and brands. QR codes for brands and retailers
will break down into two main avenues moving forward: practical
Indirect payments and experience enhancement payments applications and opportunities for deepened brand
Looking beyond direct payment applications, there are a significant engagement and value add to consumer experiences.
number of intriguing opportunities for indirect payment methods and
the use of QR codes to enhance customer experience and brand
engagement. Below is a list of some of the innovative uses and proposed
uses for QR codes for brands and retailers:
• expanding QR code menus to include an ordering and payment
component;
• seatback QR codes in-flight and in entertainment/sporting venues

to preorder food or food for in-seat delivery;
• attraction information and maps at venues such as zoos and parks

that can provide information via QR codes – adding payment for
venue services to the pages as well;
• adding QR codes to advertisements and products that allow

interaction with the brand;
• charitable applications – church offerings, donations, assistance

for the homeless.
QR in the future
QR codes hold great potential in the near term. A number of govern
ments are exploring or already implementing national QR code
standards, providing additional legitimacy to the technology.
Additionally, QR codes require very little infrastructure or investment
on the part of merchants, making them particularly well-suited for
both new merchants, retrofitting existing merchants, as well as popu
lations with more nascent payments systems.
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
Direct Carrier Billing
Size of the market

Currently, direct carrier billing (DCB) is used primarily for the purchase of digital content (games, music, video, e-books, and ringtones), charity
donations, TV voting, and competitions. The market growth is being driven by the increase in demand for games, video-on-demand, audio,
voice calling, such as Skype and WeChat, ebooks, podcasts, and other content. Over-the-top (OTT) streaming media service providers
like Netflix, Spotify, and Amazon Prime Video are also integrating carrier billing platforms into their payment systems.
A Telecoming and Juniper Research report estimated a global turnover of payments made through DCB of USD 37 billion in 2020,
expected to triple to almost USD 102 billion within five years, growing an average of 20% per year. With a turnover of USD 9 billion in
2020, Europe accounts for 24% of global figures.
The region where DCB is set to surge further is Asia-Pacific, which is also one of the fastest-growing smartphone markets. Direct carrier
billing is expected to grow at a CAGR of 14.52% between 2019 and 2028 in Asia-Pacific, with Japan leading the adoption of this mobile-
based digital payment mode.
In Africa, the growth of DCB is driven by the need for financial inclusion and the efforts that payment ecosystem is making to meet this need.
African DCB users are set to reach almost 130 million by 2023 – a 60% increase from 2020 – and revenue rising by 84% to 985 million.
Latest developments
• Safaricom has released the M-PESA Super App, M-PESA for Business App, and Mini Apps for customers. The ‘Offline mode’ will enable
customers to use the M-PESA Super App, even when they are not connected to the Internet or without data bundles. The offline mode
allows customers to send and receive money as well as make payments. Mini Apps will enable customers and businesses to perform
daily tasks and occasional tasks from hundreds of businesses, government agencies, utilities, and other providers, including deliveries,
ticketing, shopping, license applications, insurance, and more.
• DOCOMO Digital has enabled direct carrier billing for Huawei App Gallery for Vodafone Turkey. The consumption of digital content in
Turkey has steadily increased. Huawei App Gallery has more than 400 million active users, making it the third biggest online app store
worldwide. Huawei recently introduced Harmony OS after investing USD 1 billion dollars in an App Gallery in an effort to attract developers.
• Boku has launched carrier billing payment services in the UK, the Netherlands, and the Czech Republic for Microsoft platform users
and Vodafone subscribers. By partnering with Microsoft in both its Xbox and Windows stores, Vodafone subscribers in three countries
benefit from seamless and secure cardless payments. With the new on-file payment option, gamers and Windows users can now
check out faster.
Investments
• Boku acquired Fortumo as part of its global Direct Carrier Billing (DCB) strategy, bringing together two major DCB platforms with
complementary capabilities and client bases. Fortumo primarily serves small and medium-sized businesses, but it also serves larger
merchants such as Google, Amazon, and Tencent.
DOCOMO Digital
The Evolution of the Alternative Payments Landscape in 2021 and Beyond
Jonathan Bennett, Chief Commercial Officer, is responsible for all commercial activities globally
at DOCOMO Digital. Jonathan has over seventeen years’ experience in the payments’ ecosystem,
having held leadership positions with Cashflows, Travelex, Mastercard and Kalixa Payments Group.
Jonathan brings deep expertise in the entire payments value chain and is passionate about driving
innovation and best-in-class customer experience. Jonathan graduated from the Lancaster University.
Jonathan Bennett Chief Commercial Officer DOCOMO Digital
Spiralling demand for new, innovative forms of digital payments in 2015. Much of that growth has come from Asia, particularly countries
different world regions is transforming the financial services land like India, where only 3% of adults own credit cards, according to
scape. Many emerging economies have low rates of bank account the latest World Bank financial inclusion data.
ownership. Still, high levels of mobile phone penetration make the
smartphone the device of choice to replace cash and plastic cards In a new recently published whitepaper – The Evolution of The
when it comes to sending and receiving payments. Alternative Payments Landscape in 2021 and Beyond – we docu
mented how the market for electronic wallets (e-wallets) has evolved.
That leaves traditional banks to compete for digital business with Not all e-wallets are not created equal, for instance – there are marked
fintechs, telcos, and smartphone manufacturers. For example, mer differences in how they are distributed, funded, and consumed by
chant services and mobile payment platform Square are reportedly providers and customers, which I’ve classified into four categories.
set to challenge traditional banks by launching checking and
savings accounts of its own. The most widely used are OEM-led wallets – those created by
smartphone handset manufacturers and operating system (OS)
The company’s Cash App, which allows customers to conduct person developers – nominally Apple Pay, Google Pay, and Samsung Pay,
to person money transfers via the app or Square’s website, reported but also Mi Pay, Fitbit Pay, Garmin Pay, Huawei Pay, and Oppo Pay.
36 million monthly active users in December 2020. Square also offers These e-wallets allow users to add multiple credit/debit cards from
plug-in readers, allowing merchants to accept mobile and contactless different banks and, in some cases, link directly to the user’s bank
payments on their Android and iOS devices. The proposed addition account. OEM-wallet transaction values are expected to triple from
of savings and checking accounts for small to medium businesses around USD 333 billion in 2020 to exceed USD 1 trillion by 2024.
(SMBs) will further expand that merchant proposition. Importantly for
small retailers processing mobile payments in emerging economies, Fintech and payment companies offering e-wallets include PayPal
funds from sales handled by Square will be instantly available for and its Venmo social payments subsidiary and One97 Communi
spending in the checking product. cations’ Paytm in India. Like Square, these digital payment platforms
are also challenging traditional banks by offering digital banking and
E-wallets growth masks key differentiation payment services within a convenient smartphone app.
Adoption of digital and mobile payments across the world surged
during the coronavirus pandemic as more consumers shopped online Their versatility is trumped by the Super Apps, which first began offering
and switched to using different forms of contactless payment techno services like ride-hailing, food orders, and messaging before expan
logy instead of handling cash and chip and pin cards. Juniper ding into mobile payments. ➔
Research predicts that the number of people using digital wallets
exceeded 2.5 billion in 2020, having grown from under one billion in
The leading examples are WeChat Pay and AliPay, which started in in mobile network coverage and capacity too will accelerate telco-
China and have since grown to other parts of the world favoured led e-wallet adoption over the next five years. The rollout of 5G
by the Chinese diaspora. services will accentuate the need for telcos to partner with OTT
services like video streaming and gaming brands, and DCB as the
AliPay is estimated to have had 1.3 billion active users as of June preferred payment layer to enable such partnerships at scale.
2020, at which point it was processing over USD 17 trillion of trans
actions a year in China alone. WeChat Pay is almost as popular, Payments, both traditional and alternative, aim to converge around
supporting 1.2 billion monthly active users processing over a billion consumer choice and flexibility. The concept of ‘alternative’ itself is
transactions a day. Facebook-owned WhatsApp Pay has the potential flipped on its head as we see in emerging markets where the wallets
for massive growth in India and Brazil after recently receiving regu are mainstream and cards playing a distant third or fourth. Our parent
latory approval. NTT DOCOMO, a pioneer in DCB, for instance, has built a robust
payment ecosystem in Japan that encompasses DCB, wallets and
Telco led e-wallets to converge with DCB loyalty to provide an experience akin to the ‘super-apps’ from China.
The Telco or mobile network operator (MNO)-led e-wallet links the With the growing ubiquity of QR codes and NFC in retail and the
smartphone app to the customer’s telephone number and SIM use of digital wallets in mobile commerce, we expect the shift away
card and can charge customer purchases directly to their mobile from cash will only accelerate from here.
phone accounts via direct carrier billing (DCB) than a bank account.
The most successful example in terms of user numbers and trans
action values is Safaricom’s M-Pesa.
Having first emerged in Kenya in 2007, M-Pesa has expanded into
several countries across Africa and South-Eastern Europe and India.
In 2019, 42 million active customers carried out over 12 billion trans
actions on the platform. Other examples come from A1 in Bulgaria,
Telkom Pay in South Africa, and STC Pay in Saudi Arabia. Turkcell’s
Paycell service also offers the Turkish Telco’s customers the ability to
link their bank cards, pay utility bills, and purchase in-store QR codes.
DCB is an excellent way to reach younger consumers and those in
emerging economies without bank accounts, credit or debit cards
and is now poised for growth. Research company Omdia forecasts
that the total transaction revenue enabled by carrier billing will expand
at a compound annual growth rate (CAGR) of 6.8% to be worth over
USD 77 billion by 2025, up from USD 47 billion in 2020. We expect

the increased availability of low-cost smartphones and improvements
DOCOMO Digital is the international payments business of NTT DOCOMO. We partner

with carriers, merchants, OTT services, app stores and payment providers in both
developed and emerging markets worldwide. Our robust managed services platform and
coverage across carriers and the most locally relevant payment methods enable faster
time-to-market, especially for streaming, gaming, ecommerce, and productivity application
docomodigital.com providers.
Debit and Credit Cards
Size of the market

Credit cards are widely used internationally as a common payment methods for ecommerce and in-store purchases. Globally, they represent
the second most popular payment method of 2020 after e-wallets. In that time period, they have accounted for 22.8% of ecommerce
payments and 22.4% of in-store payments. Loyalty rewards and cash back are an important factor, especially in the US, for maintaining
credit cards as one’s preferred payment method. Other benefits are the relative ease of access and ease of use both online and offline,
and shopper protection offered by credit card companies.
In the US, by 2024, transactions will exceed USD 1.5 trillion, up from USD 178 billion in 2020. It might be that Americans are comfortable with
buying now and paying later, and this explains the popularity of credit cards. Credit card use exceeds debit card use, with 2.14 cards
per capita versus 1.48.
Payment by card is currently the most common method of payment online in India, accounting for 31% of all transactions. With 0.67
debit cards per capita, debit cards are preferred over credit cards. RuPay, India’s domestic debit and credit card payment system, is widely
accepted throughout the country. Several international cards are also widely accepted, including Mastercard, Visa, and Amex. Spending
volumes declined across all card brands during COVID-19, but RuPay fared better than international cards. Visa and Mastercard purchases
were lower, at 70-865 of their pre-lockdown levels, as RuPay purchases fluctuated between 87 and 98% of normal spending volumes.
In Brazil, there are more than 200 million active cards issued, with credit cards representing around 45% of the total. Elo is one of the major
domestic debit and credit card brands of Brazil. The scheme can support credit and prepaid transactions, has over 80 million issued
cards, and is accepted in 185 countries. Many Brazilian cards are limited to domestic transactions only. In the UK, payment cards are also
the primary online payment method, representing 38% of ecommerce sales, with debit preferred over credit. According to J.P. Morgan,
the preferred payment method will continue to be cards, in part because of their long history in the market, but also because they are
increasingly incorporated into digital wallets.
In France (Cartes Bancaire) and Belgium (Bankcontact), debit cards are the most popular payment method. ➔
Debit and Credit Cards
Latest developments
• In Australia, PayPal has launched its first credit card, the PayPal Rewards Card. With a 20.99% annual interest rate, the zero-fee
card will be available starting mid-July and used globally wherever Visa is accepted. The rewards points earned by PayPal users can
be redeemed at more than 750,000 businesses worldwide, including more than 300,000 in Australia.
• In Germany, the bunq app and Mastercard have teamed up to launch the first payment card with True Name features. These payment cards
can be customised by transgender and non-binary users to include their self-chosen names. The True Name feature was first introduced
to the United States in 2019 and is now available for the first time in Germany and 29 other European countries.
• BBVA Mexico has launched a new line of biometric credit and debit cards. The new ‘Aqua’ cards will feature fingerprint sensors and
support contactless transactions. BBVA Mexico has branded the card’s embedded fingerprint sensor as a ‘Smart Key’. Furthermore,
the card does not have a printed number, a feature that is intended to further safeguard the privacy of cardholders.
• In 2021, EMVCo will continue to enhance cryptography, promote innovations at the point-of-sale, and advance the security and convenience
of remote payments. With EMV Secure Remote Commerce Specifications (SRC), consumers will be able to enjoy a checkout experience
that is familiar, convenient, secure, and trustworthy. Consumer-facing programmes and solutions using EMV SRC specifications are known
as Click to Pay. This universal description enables easy client recognition and indicates that users of any payment card, digital channel or
device can confidently transact through an e-checkout process. The corresponding icon , described as the Click to Pay icon, signals
availability at participating merchants. Alternatively, Click to Pay will be used in text as descriptive language if an e-merchant is unable
to visually display the icon.
Steve Cook
5 Use Cases for Biometrics in Payments Beyond Cards
Steve is currently providing global business development for ID R&D, a biometric company focused
on developing frictionless authentication and passive liveness detection technologies for identity
verification, fraud prevention, and customer onboarding. ID R&D has developed a portfolio of biometric
technologies, including face and voice passive liveness detection and provides these solutions to digital
onboarding IDV and KYC vendors. Steve has over ten years’ experience in the biometrics industry and
owns the Biometrics for eCommerce LinkedIn community news group with over 27,000 members.
Steve Cook Head of Global Business Development ID R&D
In 2019, losses from card fraud topped a staggering USD 28 billion Today many digital wallets are protected by a PIN code – sometimes
worldwide. The need for tighter security combined with falling pro the same one used to unlock the mobile device. In other cases,
duction costs and rising consumer demand for contactless options they may be protected by passwords or private keys, which are
have put biometric payment cards in the spotlight. ABI Research fore easily forgotten. Such was the case for one unfortunate man who
casts that up to 2.5 million biometric payment cards will be issued locked himself out of a wallet containing more than 7000 Bitcoins.
in 2021. Adding biometrics to mobile payments significantly enhances
security without adding any friction to the process. For example,
However, cards aren’t the only use case for biometrics in payments, facial recognition combined with liveness detection to prevent
so here are five additional ways biometrics are being used to make spoofing attacks is a secure and convenient way for users to
payments easier, faster, and more secure. authenticate. Adding an independent, app-based biometric (vs the
same biometric used to unlock the device) enables easy two-factor
1. Secure digital wallets and mobile payments authentication; it also ensures users maintain access even if they
Digital wallets, sometimes referred to as mobile wallets, have been lose or switch their device.
around for a while but are only now gaining real traction. These virtual
wallets allow users to store credit card or banking information so 2. Contactless kiosk and mobile POS payments
that they don’t have to carry physical cards with them and can make Another use case for biometrics in payments is kiosk and mobile
contactless payments in-person or online. Digital wallets also enable POS systems. One example is Payface, a company that uses face
users to store digital versions of other items such as tickets, public biometrics and liveness detection to enable customers to ‘pay by
transportation cards, or boarding passes. More recently, we’ve seen face’, eliminating the need for cash, cards, and even phones.
a rise in the adoption of digital wallets for securely storing, using,
and exchanging cryptocurrency. Other retail systems incorporating biometric payment technology
include vending machines and other self-service kiosks such as
Likewise, mobile payment apps such as Paypal, Venmo, and Zelle, those found at restaurants, airports, and sporting events. These
also enable payments online and in stores (usually with a QR code), systems can use a range of biometric modalities, including face,
as well as peer-to-peer payments. According to Appventurez, voice, and fingerprint. Benefits include reduced contact for staff
mobile wallet transaction volume will grow to USD 274.4 billion and customers, increased profitability, and shorter checkout lines
in 2021. to improve the guest experience. ➔
3. Smart device and IoT payments 5. Identity proofing for new accounts
With an explosion of voice-enabled smart home and other IoT devices All of the above use cases focus on biometric authentication in
comes the huge opportunity to take advantage of voice biometrics payments. Equally important is the need for security and fraud pre
to quickly personalise interactions and authenticate users for secure vention when opening new customer accounts online. Identity proofing
access and payment transactions. to ensure a user is who they claim to be is an important – often regulated
– step in the remote onboarding process. Fraudulent accounts
For example, anyone who has had to enter their email and password can be used to steal real identities, create synthetic identities, and
with a television remote understands the potential of using voice to commit crimes like money laundering.
control our televisions. Even if we remember our passwords and PINs,
we’ve got to accurately type them! When using biometrics to open a new payment account, users take
a selfie and face biometrics ensures that they are a match with their
More set-top boxes now support Alexa-like voice interactions. government-issued ID. Equally important, facial liveness ensures that
By adding voice biometrics, customers can easily and securely the selfie is of a live, physically present person and not a printed photo,
buy movies subscribe to sporting events. They can even make digital replay, or mask of the person. It’s critical for this step to be
purchases while watching shopping channels or commercials – all intuitive and frictionless for users to avoid confusion, frustration that
right from the television. leads to abandonment.
How people send and receive money – from purchasing goods and
services to paying bills to splitting a lunch tab with friends is rapidly
changing. Biometrics are turning up in a wide range of use cases to
address the need for tighter security while ensuring the user expe
rience is fast, convenient, and seamless.
4. In-app messenger payments

Messenger platforms like WhatsApp for Business offer a useful
channel for B2C interaction. They are secure, convenient, and widely
used by consumers. However, they lack the level of security required to
take interactions to the next level: payment authorisations. With voice
biometric payments in messenger channels, there is no need to force
users to switch channels or place spending limits on transactions
due to security concerns.
Combined with the user’s device as a factor (something they have),
voice biometrics enables low-friction two-factor authentication.
There is no need for passwords, PINs, or knowledge-based authen
tication – all of which are vulnerable to hacking and social engineering,
not to mention frustrating for customers.
U.S. Payments Forum
Here’s What Payments Professionals Need to Know About Card-on-File Tokenization
Jason Bohrer has served as the Executive Director for the Secure Technology Alliance and the
U.S. Payments Forum since December 2020. Prior to joining the Alliance and the Forum, Mr. Bohrer
cultivated a successful 27-year career in domestic and global roles focused on sales, operations and
product innovation at companies such as: CPI Card Group, HID Global and Motorola, Inc. He has
been actively involved with several key technology transitions across multiple industries including the
contact and contactless EMV transitions in the U.S. payments industry and the adoption of smart card
and mobile technologies in the global access and identity market.
Jason Bohrer Executive Director U.S. Payments Forum
As the payments industry continues to explore ways to minimise risk over their lifecycles. As such, merchants may need to modify and
and increase security of payment data, there has been a substantial certify their systems to support each specific tokenized solution they
migration away from storing primary account numbers (PANs), as choose.
they can significantly surge business security risk and are included
in the PCI DSS compliance scope. The chosen solution should also be evaluated based on the trans
parency of data. Token formatting is an important consideration,
This migration has stimulated increased interest in tokenization as an as merchants may need to adapt their systems for tokens that do
alternative. Tokens mask and protect cardholder data with a non- not conform to traditional card numbering standards. For customers,
sensitive replacement value, used at various points in the transaction who are not generally aware of the token value, card-on-file creden
lifecycle to provide enhanced security. If the payment environment were tials should be presented on the merchant website in a manner familiar
to be compromised, a token would not reveal any cardholder information, to the customer. And for back-office processes, such as handling
rendering it valueless to threat actors. This is why tokenization has merchandise returns and managing loyalty programmes, merchants
become more prevalent in the payments industry. should involve their acquirers and technology providers early in the
process and frequently throughout to ensure that the final implemen
The robust security that tokenization can add to payment data both tation meets their expectations.
at rest and in transit can be a useful addition for card-on-file creden
tial management. As with any security measure for payments, there For some merchants, tokenizing cards-on-file can also be beneficial
are many considerations to utilising tokenization solutions for cards in reducing their PCI obligations related to storing highly sensitive
on file, and industry stakeholders should evaluate the differences data including payment credentials. Some card-on-file tokenization
among their options, as well as how the solutions can meet their solutions enforce transactional security measures to reduce the risk
business objectives and resource constraints. that a token, if compromised, can be used at unrelated merchants.
For example, token use may be limited to only those merchants that
Considerations for tokenizing cards-on-file originally requested the token or may use a transaction-specific
First and foremost, when evaluating options for tokenizing cards- cryptogram for validation during the authorisation process to identify
on-file, merchants or their technology providers must consider the potentially fraudulent transactions. ➔
changes and upgrades they may need to make for implementation.
Tokenized card-on-file solutions require participants to conform to
specific technical requirements to obtain, use, and manage tokens
Once tokens have been provisioned, the state of tokens and their When it comes to tokenization for card-on-file, it is important to keep
associated PANs must be maintained. Depending on the type of in mind all the considerations for implementation. These include tech
change, either the issuer or the merchant creates the initiating event nology changes, data transparency, lifecycle management, PCI scope,
that results in a lifecycle management change. The most common and debit routing support. There is no one best solution, but there are
issuer-initiated lifecycle management events include PAN change, many solutions that, with proper evaluation, can meet a determined set
expiration date change, and account closures. Depending on the of business goals.
type of change, the Token Service Provider (TSP) may make a corres
ponding modification to any associated card-on-file tokens and Portions of this article were excerpted from, ‘Card-on-File Tokenization
notify the token requestor to update their information accordingly. Considerations, Including Debit Routing’, a white paper developed by
the Debit Routing Working Committee at the U.S. Payments Forum.
The most common merchant-initiated lifecycle management event
occurs when a customer chooses to delete a stored credential from
their merchant profile. In cases where the token type is a merchant-
or acquirer-generated token, lifecycle management updates generally
occur as the result of optional network-based account updater and
real-time account updater services.
The decision to use one or more card-on-file tokenization solutions
may be influenced by applicable TSP business requirements, including
debit routing. For example, for a TSP solution, related security features
or support may only be available if tokenized transactions are routed
to a specific network. It’s important for acquirers and merchants to
adjust business processes and practices to identify tokens and deter
mine where transactions can be routed before implementing a tokenized
card-on-file strategy.
Identifying solutions that meet business needs

Tokenization for card-on-file credential management can be an excellent
way to provide better payment security, and industry stakeholders
have many options for solutions. These options can be analysed
with regards to how they can best meet business needs.
The U.S. Payments Forum is a cross-industry body focused on supporting the introduction
and implementation of emerging technologies that protect the security of, and enhance
opportunities for payment transactions within the US. Topic areas the Forum engages in
include EMV implementation, tokenization, card-not-present transactions, encryption, and
mobile and contactless payments.
uspaymentsforum.org
Prepaid Payments
Size of the market

MENA accounts for the highest usage of these payment methods, with payments made with prepaid cards accounting for 4% of
ecommerce payments and 6.2% of in-store payments in 2020. This is followed by North America, where 3.9% of in-store transactions have
been made with prepaid cards in the same period. As a result of governments promoting cashless payments and the development of the
retail, ecommerce, and corporate sectors in this region, the prepaid card market in Asia Pacific is expected to grow at the highest rate
in the next five years.
In Europe, it is worth mentioning that this payment method has registered a steady growth in Italy over the past years, and the rise in
popularity only accentuated during the pandemic, with a total of 25 million prepaid cards being issued in Italy.
Partnerships
• Global prepaid payments provider B4B Payments has chosen Banking Circle to provide its bank customers with payments infrastructure.
Offering prepaid solutions to businesses for over 15 years, Financial Conduct Authority (FCA) approved B4B Payments enables companies
to manage their finances, which helps with simplifying payroll, reimbursements, and also provides worker rewards and special incentives.
• Paysafe has further extended its relationship with Microsoft by offering online cash transactions on Xbox through Paysafe’s leading
eCash payment solution – paysafecard. Xbox consoles now support paysafecard for millions of customers in 22 European countries.
• The digital marketplace for gamers Kinguin has partnered with Neosurf, to give millions of its customers in Europe, Canada, Australia,
South America, and Africa the option to purchase products on Kinguin.net using Neosurf’s prepaid cash vouchers. Once customers
purchase a cash voucher, they will receive a 10-character voucher code that they can use to make an online purchase at Kinguin.net
with the added privacy and security of a prepaid card.
Regulations
5MLD, or the 5th EU Anti-Money Laundering Directive, lowered the limit on prepaid cards to EUR 150 from EUR 250 (a measure to combat
terrorist financing). This limit also applies to the amount that can be stored on the cards. The limit on online transactions has also been
reduced to EUR 50. There is a new rule that prohibits the issue of prepaid cards outside the EU unless they are issued within a jurisdiction
that has laws equivalent to the EU’s AML/CFT and KYC rules. The required entities must review the way they process prepaid card
payments, and put mechanisms in place for identifying (and refusing) transactions involving non-EU cards. This may require significant
changes to current systems and practices.
Aplauz
How Aplauz Is Making Online Payments a Win-Win-Win Game
Goran is the CEO and Co-Founder of Aplauz and Co-Founder and Managing Director of the Own.
Solutions Group, the Aplauz parent company. For the past 17 years, Goran has been engaged in
building bridges between physical and digital commerce using the latest available technology as
foundation pillars. Working in close collaboration with the Own.Solutions physical stores network,
Goran is passionate about making convenience stores an active player in digital commerce
transformation. Aplauz is a great way to achieve that and a unique tool to reach an untapped customer
base for digital merchants.
Goran Abramović CEO and Co-Founder Aplauz
Every payment should be a conscious choice. In a fast-developing They simply want to enjoy their digital lives, but feel like they are
ecommerce market, consumers express a growing need to control taking a risk every time they enter their credit card details online.
their online spending, retain their data privacy, and shop with
trust. Aplauz is an answer to these needs, empowering conscious According to Newzoo research on Esport Spenders in Europe,
spending with a socially sustainable way to pay in the hybrid digital ‘over half (53%) digital spenders in the UK claimed they’d cancelled
economy. or backed out of an online payment. Of those who cancelled, 27%
indicated that privacy concerns (relating to personal data) were their

Have you ever discovered unexpected charges on your credit card? main reason for doing so’.
Most of us have. Unfortunately, it happens a lot.
In particular, the Gen Z has become suspicious of online payments.
Just last month, my neighbour gave her son access to her credit To protect themselves, digital citizens have become more and more
card to buy an online game he liked. Or so she thought. When she careful of their online spending, opting for what is available for free
discovered the many unexpected extra charges, her jaw dropped. instead of taking the risk to pay more than they expect to.
She questioned her son, who was just as surprised. He had no idea Next to being worried about how much they spend, digital citizens are
that he had spent so much money with his mother’s credit card. While not comfortable sharing private information with a faceless screen.
playing, he accidentally agreed to a subscription and accepted a few Why would they be? Compare it to offline payments: a shopper
in-game purchases. goes to a store, chooses what they want, and briefly touches their
card to the machine. They don’t have to give away any personal
It was an expensive lesson in trust. Next time, they would both be more data, making the transaction easy, transparent, and fair.
careful with online payments to avoid bad surprises.
What if online payments could be the same?
Suspicious of online payments

This scenario is played out across the world every day. Empowering digital citizens with choice
Aplauz is changing the rules of the game. The company was founded
It’s not just about kids who like gaming. Finding unexpected charges in 2020 with the mission to make every online payment a conscious
on a credit card statement has happened to many digital citizens choice: easy, transparent, and fair. We want to empower everyone
who spend a part of their life online. And it always feels unfair. to enjoy their online lives, in full transparency and without any financial
risk. ➔
That’s why the Netherlands-based Aplauz team goes above and beyond In this game, we all win
to ensure the customer’s freedom to make conscious spending Aplauz is not only about empowering the end-user. For online
choices. merchants, it is a fantastic customer acquisition tool to sell to the
many customers that were out of reach until now, like people who:
• want to protect themselves against unexpected charges;

• are reluctant to share their personal and financial data;
• do not have access to traditionally accepted online payment
methods, e.g. credit cards.
Offering Aplauz as a payment method is in fact a social responsibility
statement that shows the merchant cares about the relationship with
their customers.
With 30 million visitors every week, Aplauz’s retail distribution network
across Europe provides access to prime advertising space for Aplauz
merchant partners. We also offer the opportunity to run joint marketing
campaigns through email, social media or online advertising.
What we are most proud of is that Aplauz is a win-win-win model:
• digital citizens win back freedom of choice in their spending;

They can simply pop into a local convenience store to buy an Aplauz • partner merchants win the trust of customers;
voucher with the exact credit value they want. When they use it to • convenience stores win traffic to their stores.
pay on any website that accepts Aplauz payments, only the prepaid
value on the voucher can be spent. Unexpected charges are not So, ready to join the winning game? Contact us to add Aplauz to
possible. And because the voucher holds no personal data, the your checkout.
user’s privacy is also safe.
Aplauz users are always conscious of their spending. That makes
them also more willing to spend because they know they will not
lose control in any way.
Aplauz is already available in over 2000 convenience stores in
Switzerland and we will be rolling it out across Europe this year, to
give millions of digital citizens a fair way to pay.
Aplauz is a prepaid digital credit that empowers people to make conscious spending.
Aplauz vouchers can be bought at convenience stores and used to make online payments
without any of the traditional online payment methods, and without having a bank account.
It is ideal for those who don’t own a credit card, or who don’t want to disclose financial
aplauz.com details, to security buy online while staying in control of their spending.
Direct Debit
Size of the market

Direct debit (i.e. an arrangement made with a bank that allows a third party to transfer money from a person’s account on agreed terms) is one
of those payment methods that is said to most often bridge the gap between the cumbersome nature of bank account authorisation and
convenience for the two parties involved in a transaction.
SEPA – the Single Euro Payments Area – is a European Union (EU) initiative the most commonly used and single system across the continent
created to ‘harmonise payments across the Eurozone’. One part of the SEPA scheme is SEPA Direct Debit, Europe-wide direct debit
system that allows merchants to collect euro-denominated payments from accounts in the 34 SEPA countries and associated territories.
In the US, direct debits are authorised through ACH Direct Debit, a popular payment method used domestically as an alternative to credit
and debit cards. The payments are processed via the national electronic network for processing financial transactions – Automated Clearing
House (ACH). In March 2021, ACH volume hit 2.7 billion payments, the largest monthly volume in ACH Network history, according to
NACHA. This included approximately 110 million economic impact payments by Direct Deposit from the federal government.
Worldpay’s Global Payments Report 2021 dictates that direct has earned its highest popularity in Europe over the past year, where it
managed to cover 4% of the market share, while it was used for 1.2% of global ecommerce payments in 2020. One of the most prominent
markets for direct debit across Europe is Germany, arguably herein having the highest usage rate in the world.
More specifically, according to research made by the EHI Retail Institute published by The Paypers, in 2020, direct debit achieved a
share of sales of 17.9% (previous year: 18.3%) and continues to hold a third place among the payment methods with the highest turnover.
Amazon holds the highest share of direct debits in the overall market, relying on direct debit and credit card payments for a fifth of its
ecommerce sales. When looking at the proportion of payment methods without Amazon, it can be seen that fewer and fewer online shops
are recording high proportions of sales with direct debit from year to year – in 2020 the proportion without Amazon was 3.1%.
Latest developments
• Provider of A2A payment solutions Nuapay announced in October 2020, an agreement with Cybersource, Visa’s global payment
management platform. The agreement expands Cybersource’s existing alternative payments suite, enabling customers to further tap
into Europe’s growing demand for recurring payments using Nuapay Direct Debit solutions.
• In November 2020, the European Payments Council published updated and enhanced versions of the SEPA Credit Transfer and
Direct Debit rulebooks. In accordance with industry best practice, payment service providers and their suppliers have to address the
rulebook updates ahead of November 2021, when these updates come into effect.
• In June 2020, US-based provider of payment technology integrations EVO Payments launched EVO ACH to enable merchants to send
and receive debit payments in partnership with PayFabric.
• Direct debit is common in other parts of the globe as well, with Open Finance tech provider Brankas partnering with payments provider
2C2P to introduce a modern Open Banking solution to Indonesia. The partnership extends the reach of 2C2P’s Direct Debit payment
feature, enabling merchants to offer their Indonesian customers better payment options. Currently available in Indonesia, Brankas and
2C2P aim to bring these benefits to consumers and merchants in other markets in the region.
• On the retail side, and speaking of the German market, in March 2021, supermarket chain Lidl announced the launch of the mobile
payments option Lidl Pay in Germany. In contrast to Lidl Pay in Spain and Poland, where a credit card is used for bills, the German
version debits from customer’s current accounts via SEPA Direct Debit.
The 5 Keys to Successful Payment Management for Subscription-Based Companies
Martin Koderisch is a Principal at Edgar, Dunn & Company. He advises stakeholders across the
payment ecosystem with a particular focus on recurring payments and assists ecommerce and
subscription companies to transform their digital payments capabilities to drive growth in recurring
revenues. Before joining EDC in 2015, he gained 10+ years of payment industry experience.
Martin Koderisch Principal Edgar, Dunn & Company
Growth in subscription-based companies

Subscription-based companies have surged over the last decade. writers are backing Blinklist, a book-summarising subscription
Innovation in digital technology has enabled this trend, but the success service based in Berlin.
is due to more than this technology-related push. Consumers have
totally embraced the concept, as flexible access and consumption of • Finally, direct to consumer (D2C) subscription companies are manu
products and services – often based on transparent usage pricing or facturers who choose to skip retail intermediaries and sell directly
low commitment monthly fee – appeal to a lot of them. It is a testament to consumers. A good example can be found in the connected car
to changing consumer behaviour. As part of a general adoption of all space. Here, car manufactures like BMW are selling services such
things digital, COVID-19 has of course accelerated this trend. Zoom, as ConnectedDrive directly to drivers, via a subscription-based
Netflix, Disney+, and Spotify are all notable examples. delivery model. Toyota launched a similar service in 2020, and
Cazoo has its own subscription offering.
Subscription-based business models

So many other subscription categories have come to the fore during For subscription companies, payment presents a specific challenge
the COVID-19 period. compared to ecommerce companies that deal with one-off purchases.
There are five keys to successful payment management for any sub
• The B2C category of media streaming platforms includes all manner scription company.
of global, regional, domestic, and niche podcast, video, and music
streaming providers. 1. Frictionless sign-up

The digital identity space is evolving rapidly. Federated social login
• The B2B category of Software-as-a-Service (SaaS) has become solutions like sign-in with Twitter, Facebook, or Gmail have been around
huge. Crunchbase lists over 16,000 SaaS subscription companies. for many years. Over the past year, both Apple and Google have launched
These range from pure B2B services like company accounting new digital identity solutions that take the market to the next level.
software provider Xero to CRM platforms like Zoho, Hubspot, and One Tap Sign-In With Google is the company’s new cross-platform
Salesforce. Some SaaS companies can be both B2B and B2C, sign-in mechanism for Web and Android – allowing merchants to
like Adobe Photoshop or cloud storage provider Dropbox. onboard new customers with just one tap. Users are automatically
signed in when they return to a website on any device or browser, even
• Another impressive growth area is represented by B2C subscription after their session expires. Likewise, Sign-In With Apple allows users
companies for physical products, including food boxes like Gusto to leverage their Apple credentials to sign into apps and websites. ➔
and Hellofresh, wine sellers like Naked Wines, beauty and make-
up boxes like Beauty Pie and Birchbox, as well as fashion and
apparel services like Stitch Fix, Socks-in-a-box. Even non-fiction
2. Billing software that’s right for your business This includes a range of actions such as formatting the authorisation
An appropriate subscription billing software is critical to the effective request differently, routing the payment through a different acquirer,
management of a customer’s subscription life cycle. A subscription using a network token versus clear PAN, time of day, day of month.
billing software includes the ability to set up recurring payments and Often, payments fail due to expired cards, a situation in which mer
adjust them to accommodate changes in pricing, promotions, and chants can take advantage of new account updater services from
trials. A good subscription billing software allows users to make card networks. When a customer receives a new card, this service
these changes while still maintaining an active billing cycle. automatically updates stored card details. Account updater is widely
supported by issuers, but full international coverage is not yet
3. Recurring payments complete.
Recurring payments that rely on stored customer card details must
comply with a relatively new, international card network requirement 5. Look local, be international
known as Credential on File (COF). The framework includes card An issuer authorising declines on cross-border payments is a parti
holder-initiated transactions (CITs) and merchant-initiated trans cularly frequent occurrence – and often due to issuer fraud risk
actions (MITs), and recurring subscription payments are classified systems being set up to be more risk-averse and sensitive to non-
as MITs. The rules require merchants to include additional attributes domestic payment authorisation requests. This can have a significant
to payment requests that use stored card details. The assumption is impact on businesses that process card payments across borders
that MITs are made pursuant to an agreement that a merchant has to support international sales. Typically, this situation can only be
in place with their customers, allowing them to initiate payments on resolved by setting up a local legal entity to contract directly with a
their behalf. In Europe, this means that MITs must include proof that local domestic acquirer. In addition, complying with local sales tax
Strong Customer Authentication (SCA) was carried out when the card rules is another issue that makes international sales complicated.
was originally stored. European issuers are now legally required to
decline transactions without this attribute (which is referred to as The payment provider – a strategic partner
TraceID for Mastercard, TranID for Visa, or Network Transaction ID Many PSPs cater to the above requirements – and particularly the
for American Express). cross-border payments scenario. Their proposition includes a Merchant
of Record solution which allows internationalising companies to
4. Payment retry logic piggyback on a network of local legal entities set up by the pay
If and when a recurring payment does fail, the issuer will pass a reason ment provider. Subscription payments are then able to process their
code to the merchant. Merchants need to have business rules and payment as domestic transactions and benefit from dramatically
logic in place in order to automatically decide if, when, and how to r improved authorisation rates. In a given market, if payment volumes
etry the payment. Hard declined payments (for instance, ‘lost or stolen increase above a certain threshold, the company may then consider
card’) should not be retried as these will continually be declined – setting up and managing its own legal entity and contracting with
and retrying hard declines will negatively impact future authorisation an acquirer of choice.
rates. Smarter retry logic uses machine learning to learn about
issuer behaviour and understand what action is likely to lead to a
successful reattempted payment.
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, fintech, mobile payments, digitalisation of retail
financial services, and ecommerce.
edgardunn.com
Cryptocurrencies and CBDCs
Size of the market

Cryptocurrencies have long passed the era where they were shrouded in mystery and an air of ‘rebellious’ uprising against the status quo
banking system. The very concept of crypto and the blockchain, the backbone on which the currencies are transacted, have taken an official –
quite regulated at times – life of its own, given birth to a myriad of business opportunities for enterprises, end-consumers, and governments
alike, in the past couple of years.
While there is still a fair amount of uncertainty about this technology in the areas of regulations, scalability, and governance, blockchain
has legitimately and fruitfully been adopted in financial services, digital identity, online payments, trade, and many more markets over.
Cryptocurrencies are most commonly used as an investment asset rather than a payment method. Consumers’ interest in buying and spending
cryptocurrency continues to rise, fuelled by the fear of missing out on a potential investment opportunity. To this end, many payments facilitators
have started successfully integrating crypto into their payments offering, while it also have begun playing an increasingly big role in
ecommerce.
From Ripple to Dodge Coin, the blockchain system and cryptocurrencies as a whole have taken multiple shapes and sizes over the past
year. Central Bank Digital Currencies (CBDC) – central banks to issue and distribute digital fiat currency – were openly and directly inspired
by the innerworkings of crypto, and non-fungible tokens (NFTs) have been the latest fad in a whirlwind of digitised and tokenised assets
that have swept the online transaction space. In a more concrete sense, CBDC development is closely accelerated by the development
of Diem (formerly Libra – the permissioned blockchain-based payment system proposed by Facebook). Comprising of 26 financial firms
and non-profits, the association announced it was withdrawing its payment system license application from Switzerland and relocating
its main operations from Switzerland to the US, where it works alongside regulators and issuers to pilot the well-awaited USD stablecoin.
Latest developments
Crypto: innovation, regulation, and future projects
• Paypal announced ever since November 2020 that it would let users withdraw funds from cryptocurrency accounts to pay for goods and
services at merchants that use the company’s platform.
• PayPal’s announcement follows Visa’s collaboration with Ternio to help crypto companies pierce the market with crypto payments that
ultimately are made possible through the Visa rails.
• Ecommerce marketplace Rakuten is now allowing Japanese customers to use cryptocurrency for their purchases and eBay started
looking into crypto payments options since May 2021.
• While some governments are still reticent to the uses of crypto, with China banning financial institutions and payment companies from
providing services related to cryptocurrency transactions and warned investors against speculative crypto trading, big banks such as
Wells Fargo or BBVA are launching crypto trading facilities to their clients.
• In June 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender after Congress approved President
Nayib Bukele’s proposal to embrace the cryptocurrency.
• eBay announced in May 2021 the online shopping platform was looking into new payments options for customers. The ecommerce
platform is also exploring ways to utilise non-fungible tokens (NFTs), apart from cryptocurrencies for transaction purposes.
• British digital bank Revolut has announced recently it will support crypto withdrawals, and PayPal-powered P2P mobile payments
app Venmo launched cryptocurrencies on its platform as well, allowing users to buy, sell, or hold Bitcoin (BTC) and other coins. ➔
Cryptocurrencies and CBDCs
CBDC – progress and initiatives
• Diem announced in May 2021 that the USD stablecoin it wants to release is intended as an interim step until the US Federal Reserve issues
a Central Bank Digital Currency (CBDC) or digital dollar.
• Visa has recently completed the first successful settlement transaction with Crypto.com sending USD Coin (USDC) to Visa’s Ethereum address
at Anchorage.
• Several countries have announced trials, sandboxes, and pilots for CBDC projects, such as: France, Switzerland, Norway, Sweden,
Russia, all the way to the US and Canada, along with Japan, South Korea, Thailand, South Africa, or Jamaica.
• Meanwhile, China has seen significant progress with its CBDC initiatives, when a Chinese district in Hebei province debuted the use of
the Digital Renminbi (digital RMB) to make salary payments via a local blockchain platform. At the same time, China’s central bank announced
in early March 2021 that a new Chinese homegrown enterprise blockchain, Chang’an Chain, would be integrated with the digital yuan.
• Still in March 2021, however, The European Central Bank director Fabio Panetta announced the bank was still preparing for a digital
euro, yet it will take 5 years before it will be introduced. According to the ECB’s director, this is due to technicalities since the introduction
of a Central Bank Digital Currency (CBDC) will have a strong impact on payment transactions and the financial markets.
Currency Research
Will China Pave the Way for Large-Scale CBDC Usage?
Gonzalo Santamaria currently leads the Payments stream for CR as VP and has forged his experience
from 35 years in the currency and payment industries. He is an avid speaker and moderator of panel
discussion at industry conferences and has held senior commercial roles leading international sales
teams.
Gonzalo Santamaria Vice President Currency Research
The global payments ecosystem has undergone tremendous In a recent issue, Central Bank Payments News said that activities
transformation and modernisation over the past decade. Central bank include cross-border testing of the digital yuan (e-CNY) by PBoC
digital currency (CBDC), however, may be increasingly poised as the and the Hong Kong Monetary Authority to offer an additional safe
next significant innovation to disrupt other payments instruments. and convenient means of cross-boundary payments to residents
Currently, more than 80% of central banks surveyed by the Bank for of HK and Mainland. The testing includes the e-CNY app, system
International Settlements are either exploring, researching and/or connectivity, and cross-boundary purchases to help promote inter
piloting a retail CBDC. connection of the Guangdong-HK-Macao Greater Bay Area. PBoC
has also embarked on a creative new trial in Shenzhen, the site
A recent study issued by CitiBank offers a broader commercial of their first public lottery test in October 2020, which saw them
perspective and views tokenization as the new digital form of currency, distributing red envelopes containing small sums of digital currency
moving beyond the account-centred transactions of e-money that to the e-wallets of selected lottery winners. This time, however,
have been the hallmark of financial services to date. This tokeni China’s central bank is calling on previous lottery participants in
zation will be seen across a variety of offerings, spanning CBDC, Shenzhen to top up their e-wallets with digital yuan to access
stablecoins, and cryptocurrencies (such as Bitcoin) and making discounts on purchases. Ten million yuan (USD 1.51 million) has
use of the programmable capabilities of such products, today with been earmarked for discounts available at more than 500 partici
>USD 2 trillion aggregate value in cryptos alone. pating retailers.
Several smaller jurisdictions such as The Bahamas (Sand Dollar) and Officials at PBoC stress there is no timetable available for the official
the Eastern Caribbean Central Bank (DCash) have already issued launch of DCEP and that e-CNY remains ‘under development and
their own CBDC products, with specific reasoning and tailored testing phases’. At the same time, the trials continue to expand,
strategies. On a larger scope are countries such as Sweden, which with six more regions added to the digital yuan pilot programme.
has long been studying and researching a digital e-krona based in Newer pilot tests are breaking from previous trials. For example, on
part on the fast decline of cash usage in that jurisdiction. Yongxing Island in Sansha city, PBoC is giving away 99 digital yuan
(EUR 12.70) for every 100-yuan purchase made at supermarkets,
However, it’s time to get ready for large-scale use cases. Ahead of restaurants, and hotels. ➔
the curve is the People’s Bank of China (PBoC), the governing body
whose intensive digital currency programme, Digital Currency Electronic
Payment (DCEP), and its respective pilot have been recently heating
up through large-scale trials.
Most recently, at the 4th Digital China Summit, PBoC along with The competition to gain market share in the inevitable product roll-
major national commercial banks and tech giants showcased e-CNY out is ramping up amongst issuers, including state-owned banks
use cases in dedicated booths. In addition to local ecommerce giant and third-party payment providers. WeChat Pay and Alipay have of
JD.com announcing its support of e-CNY for online shopping and course been key drivers in changing consumer behaviour and the
the payment of suppliers’ and employees’ salaries, the electronics adoption of digital payments, with USD 67 trillion worth of mobile
giant Huawei revealed a designer prototype to pay for staff-less transactions processed in China in 2020 – 400 times more than in
hotel rooms with the digital currency. the USA – and a combined active (monthly use base) of nearly 2
billion.
And to include overseas nationals in the mix, the state-owned Bank
of China demonstrated a machine prototype, which can convert 16 Converting these massive private-sector payments over to CBDC
foreign currencies into e-CNY. The idea is for returning nationals with will not happen simply through incentives and the regulator has
valid passports to place foreign banknotes into the machine, which been applying pressure on both tech-giant companies for some
in turn will issue a physical e-CNY card based on the exchange rate. time now. It should come as no surprise that the aforementioned
The card prototype (Figure 1) for foreign nationals features a small Summit also saw Ant Group and Tencent publicly demonstrating
screen that displays the balance of the hardware wallet and can their e-CNY wallet services for the first time.
be used in retail shops that have an e-CNY payment terminal. It is
reportedly being trialled and planned for real-world use during the It remains unclear when the e-CNY will be officially launched, but
next Winter Olympics, slated for February 2022 in Beijing. with large events such as the Winter Olympics on the horizon, China
likely intends to digitalise all payments (similarly to the London 2012
Figure 1: e-CNY Card Prototype Summer Olympics). One thing is certain, China is well ahead of any
other major economic powerhouse in the bid to be the first to the
finish line. The broad government support and community partici
pation in the trials, whether by ill or by will, is generating substantial
levels of data and public awareness — leading to a massive head
start for China.
CR’s mission as a knowledge-based services company is to inspire and progress industry

dialogue and efficiency across cash and payments through core initiatives: Conferences,
Consulting, Communication, and Community. CR is the leading global resource for central
banks, the related supply chain and FMI including the monthly e-publication Central Bank
Payment News and consulting services with a focus on strategy and policy. Currency
Research is also the organiser of the Central Bank Payments Conference (CBPC),
currencyresearch.com an event held on 8-10 November 2021 in Athens, Greece.
Gate.io
Paying With Cryptocurrencies: Now More Opportune than Ever
Marie Tatibouet is the CMO at Gate.io. As a blockchain influencer, Marie is known for spreading the
importance of blockchain technology to the masses, simplifying its technicalities for the everyday user,
and being a proponent for crypto evolution and adoption.
Marie Tatibouet CMO Gate.io
2020 may officially go down as the year where cryptocurrencies Cryptocurrencies have long been panned for being volatile and not
gained mainstream legitimacy and credibility. Due to the pandemic- a reliable payment method. Imagine paying for a service with X coin
induced financial fluctuations, people started moving into crypto worth USD 50 today and worth USD 40 tomorrow. However, by
currencies, and especially Bitcoin as a store-of-value. However, this accepting cryptocurrencies, these institutions are now treating them
is just the tip of the iceberg. The potential of cryptocurrencies as a as credible assets.
legitimate payments service is immense.

There is also another angle to this whole equation. In 2020 and 2021,
Bitcoin payment services it has become fashionable for institutions to dedicate a portion of
When compared to traditional payment methods, Bitcoin payment their balance sheet to Bitcoins. MicroStrategy and Tesla have already
services charge lesser transaction fees. For example, BitPay charges spent billions in acquiring Bitcoin. By paying for their services
a paltry 1% settlement fee compared to the 2% or 3% charged by with crypto, the companies now have a straightforward method to
traditional credit card processing services. Along with the low, there accumulate digital assets and diversify their holdings.
are two more obvious advantages to Bitcoin payments.

Increasing stablecoin adoption
Firstly, these payment services are borderless and allow users to send Since we are talking about purely payment options, it is essential to
any amount anywhere in the world in a seamless manner. Secondly, talk about the increasing stablecoin adoption. On Black Thursday
Bitcoin payment is a lot more transparent than fiat payments. If you (11 March 2020), the entire cryptocurrency market fell by a massive
send a fiat payment to someone, it is nearly impossible for you to amount due to COVID-induced panic, with Bitcoin dropping by 50%.
track the expenses. However, with crypto payments, you can use
the blockchain to track payments from the source to the destination As a result, the demand for stablecoins increased exponentially as
closely. investors started to move into stablecoins as a hedge against crypto
volatility. Plus, lately, the trading volume of Tether has more than
A simple way for institutions to get their hands on doubled in April to USD 171 billion, which is more than double of
BTC USA 54 billion a year ago, as per CoinMarketCap.com.
Over the past year, several institutions like Tesla, WeWork, Caruso,
and PayPal have started accepting Bitcoins for their products. Tesla, Hedging risk and diversifying are not the only use cases of stable
in particular, made a lot of noise when they announced that they coins. US dollar-pegged stablecoins allow crypto startups to bank
would be selling their cars for Bitcoin. in US dollars without the need for a traditional banking relationship.
As such, there are two specific use cases that these startups can
So, why is this such major news? unlock with stablecoins. ➔
Payments – All these blockchain marketplaces and applications DeFi has made the crypto a lot more sophisticated than a simple
need a suitable fiat-onramp to broaden their potential customer payment mode or a reliable store-of-value. These apps have
base. Stablecoins like USDC allow startups to accept payments brought traditional financial instruments into the crypto space, which
via traditional routes such as bank cards, ACH, and wire transfers are decentralised, innovative, interoperable, and composable.
that automatically settle in USDC. For example, users may swap their tokens or even apply for
uncollat eralised loans (aka flash loans) through platforms like
Payroll payouts – Most crypto startups are remote-first, hiring emplo Aave. Simple smart contract code makes sure that everyone is
yees from all around the world. This has been further exacerbated due economically incentivised to work in the system’s interest, creating
to the COVID-19 pandemic, which forced more companies to adopt a decentralised, trustless environment.
the remote work model. Due to legacy finance’s unwillingness to
deal with anything related to crypto, using traditional methods to DeFi payments apps are creating an open finance ecosystem that
pay employees can be quite a pain. This is why it’s much simpler caters to the needs of the underbanked and unbanked populations.
and faster for them to process payroll payments with stablecoins. There are people around the world that don’t have access to basic
banking facilities. In fact, the South-East Asia region alone has an
DeFi – bringing legacy financial instruments to unbanked population of >290 million.
crypto
Decentralised Finance (DeFi) has become one of the most innovative Projects like OmiseGO and Celer Network use innovative layer-2
and fastest-growing spaces in crypto. Since 2020, the DeFi sector solutions like Plasma to empower the unbanked masses to conduct
has ballooned from USD 0.70 billion to USD 59 billion – that’s a simple – and even cross-border payments through their crypto wallet.
>8,000% increase in overall valuation.
As DeFi grows more mature, it will be fascinating to see how decentralised
and centralised financial instruments may co-exist to provide users
with a plethora of options.
Gate.io enables a new generation of global traders with the tools to access the revolutionary
age of cryptocurrencies. The ‘Gate ecosystem’ consists of Gate.io, Wallet.io, HipoDeFi,
and GateChain. Gate.io enables blockchain enthusiasts to trade and store assets in over
670 of the leading cryptocurrencies for over 6 million users from over 150 countries. It is a
one-stop-shop for spot, margin trading, futures, perpetual contracts, staking, C2C loans,
options, and DeFi. At Gate.io, we strive to provide a platform that’s fast, easy to use, and
welcoming to everyone. Check us out on Twitter and YouTube for interesting updates,
reward campaigns, and more.
gate.io
Checkout Optimisation and
Customer Conversion
Digital Transformation
ACI Worldwide
Real-Time Payments Poised to Push the Needle in Ecommerce
Debbie Guerra is a seasoned payments industry executive with over three decades of experience
spanning payments, fintech, consulting, and IT services. She leads ACI Worldwide’s Merchant and
Payments Intelligence solutions portfolio, which encompass ecommerce, omnichannel payments, and
merchant fraud. She has global business experience with merchant acquiring spanning direct and
indirect channels, financial institution alliances, customer segments and verticals.
Debbie Guerra Head of Merchant Segment ACI Worldwide
ACI Worldwide provides a wide range of payment During the pandemic, we saw a lot of new con
services and access to global and local payment sumers enter the ecommerce space. Have you
methods: what trends have you observed in noticed any differences in payment preferences
payment preferences in the last two years? between younger and older groups?
In ecommerce, there was already a dramatic shift underway in terms We found that older shoppers, such as baby boomers, showed a
of payment preferences. Since the pandemic, even more shoppers higher adoption of grocery ordering and delivery than before the
have moved online and are comfortable with the digital experience. pandemic. They are now comfortable with digital payments and
Now, more than ever, they expect to be able to pay the way they expect a smooth experience, which means the UX is more important
want. Many larger merchants have added to their more established than ever for merchants.
payment methods portfolio with local payments methods, especially And there is enormous growth in mobile payments and e-wallets
when expanding into new markets. The pandemic has also driven among young consumers. For merchants, understanding and
shoppers to look for new ways to pay. We have seen significant enabling the different payment methods that match their consumer
increase in Buy Now, Pay Later solutions, as people want more preferences has become a critical way to ensure people want,
control over their available funds. and continue, to shop at their online stores.
In the last few years, we also saw sustained growth in conventional E-wallet top-ups are still heavily driven by traditional credit cards,
payment methods, such as PayPal. PayPal grew almost 90% from but we also see bank transfers growing in popularity, and as an
2019 to 2020, and from 2020 to 2021 the growth rate remained integrated payment method.
high, at almost 80%. If you compare that to Klarna, a popular
Buy Now, Pay Later method, whose adoption rate raised about Younger generations are less likely to avail of
50% from 2019 to 2020, but from 2020 to 2021 grew almost 450%. financial credit products. How do you see this
This significant increase in popularity of BNPL solutions was partly trend evolving?
driven by the surge in online purchases of higher value items, such The real-time payment infrastructure is going to have a large impact
as home electronics. on the shift away from cash towards digital methods for those
The Buy Now, Pay Later market is experiencing a boom, with consumers that are credit averse. The ability to link to online banking
many new entrants in different markets globally. This means that through an e-wallet provides the opportunity for merchants to reach
for ACI, as a solution provider, we need to continually develop our this demographic.
offering to provide the right payment methods for our customers. In the end, customers choose the payment method that best suits
For merchants, offering BNPL solutions opens an opportunity to them. Amongst younger generations we see adoption of instant
attract a new customer base that they previously had no access to. payments because of the budget control it provides; they are always
quick to adopt payment methods that provide a benefit. ➔
92 Payment Methods Report 2021 | Checkout Optimisation and Customer Conversion

It also benefits merchants to accept real-time payments, both to There is a lot of innovation happening to leverage
meet customer expectations and from a liquidity management and the power of Open Banking and Instant Payments
margin point of view. in ecommerce payments, yet in terms of the number
of transactions, they are still small compared to
That ties neatly into our next question: what is the traditional payment methods. How do you see this
impact of the mass adoption of real-time payments playing out?
globally on the development of ecommerce? What Just like with anything new, there will be adoption trends. As real-time
are the benefits for consumers and merchants? payments become more ubiquitous, transaction volumes are going to
A lot of the benefits of real-time payments for merchants have to increase. Request to Pay holds real potential in Europe and can help
do with the reduction of risk. Some merchants need to receive smooth over some of the friction created in ecommerce with Strong
up-front payment before they dispatch goods, such as with high- Customer Authentication (SCA). The use of QR codes or Request
value electronics. Receiving verifiable real-time payments can be to Pay messages could create more seamless and secure payment
a tremendous benefit for this type of merchant. Moreover, since experiences with less friction. It is interesting to hear bodies such as
COVID-19, merchants have had to redesign and develop new Pay.UK and Payments Canada emphasise that they are building their
supplier relationships, and real-time payments can help accelerate R2P solutions with cross-border interoperability in mind. These kinds
this process. As banks expand their real-time payment services for of R2P messaging solutions are digital overlays to the real-time rails,
B2B and corporate payments, to include things such as Request to running on the global ISO 20022 standard. With real-time payments,
Pay, merchants will find managing their supply chain and accounts R2P can potentially even facilitate POS lending and instant funding
payable/receivable much more predictable and efficient. to digital wallets, especially for underbanked communities. In markets
For consumers, it is a little different: real-time payments provide the where we see consumer-focused regulation and initiatives such as
capability, particularly for those who are un- or underbanked, to fill PSD2 and Open Banking making this possible, it is a question of
up their mobile wallet. There will be some interesting evolution to when we will see mass availability of these kinds of services, not if.
watch between the account, the real-time payment, the wallet, and For merchants, there are real benefits of real-time payments,
the demographic that will be tapping into that. When we think about particularly when it replaces credit and reduces interchange fees.
markets with low card penetration, we see how quickly real-time But that will also have to be balanced with the consumers’ preference,
payment services were adopted for ecommerce, because they are so who might be very tied to their credit card and their ability to leverage
seamlessly integrated into customer experience such as purchasing their credit. Payment providers, such as banks and fintechs, will be
through social media or lifestyle apps. looking to offer benefits beyond credit card points that resonate with
consumers. The move to real-time payments is a rare opportunity to
perform a competitive land-grab and win more share of the customer

The real-time payment infra relationship. This is true for merchants too – they can create their
structure is going to have a large own loyalty offerings associated with real-time payments in a move
impact on the shift away from cash to grab more share of wallet.
towards digital methods for those

consumers that are credit averse.
ACI Worldwide powers digital payments and banking for more than 6,000 organisations
around the world. We have more than 45 years of payments expertise and customers in 95
countries. We serve 19 of the top 20 banks worldwide and more than 80,000+ merchants
directly and through payment service providers. More than 5,000 organisations use our
electronic bill payment solutions and 1,500 banks, intermediaries, and merchants prevent
www.aciworldwide.com fraud with our solutions.

PPRO
What Comes After the Pandemic: Agile Transformation for the Payments Industry
Claire leads PPRO’s sales and marketing efforts, making sure that they are highly integrated and
have a strong go-to-market focus. Prior to joining PPRO, she was the CEO for Paysafe Pay Later,
which she helped to expand across EMEA and North America. A fintech expert with over 25 years of
experience, Claire has also held positions at American Express, Virgin Money, Mastercard, and Citi.
She is a passionate advocate of workplace diversity, and she mentors several startups.
Claire Gates Chief Commercial Officer PPRO
Social distancing disrupted all parts of life, and consumers’ habits and What ecommerce growth means for us in payments
loyalties are no exception: where and when they shop, what they Now more than ever, companies recognise the value of offering
buy, and how they pay. localised experiences to consumers worldwide. Unsurprisingly, this
has caused a corresponding rise in the fortunes of digital payment
Unsurprisingly, there continues to be a huge surge in the use of digital providers and the specialists who enable their services. Local payment
payments. Some providers report a 50% increase in volume since the methods address not only the consumer’s preferred payment expe
lockdowns began in 2020. But how much of this increase will remain riences, but also tax, compliance, regulatory, and other nuances in
as social distancing ends? How much of these habits and preferen their respective market – thus gaining the trust and traction of local
ces stick? consumers.
‘Alternative’ payments are no longer alternative We have seen this again and again: for instance, with M-Pesa in Kenya,
The boom in fintech, coupled with the pandemic, has made local, digital, Grab in Singapore, Boleto in Brazil, and so on. There is no reason to
and alternative payment methods table stakes for the ecommerce believe that this trend is starting to slow down. In the twelve months
sector. Globally, local payment methods have grown at exponential leading up to October 2020, 321 million people connected to the
rates. In Indonesia, the mobile wallet OVO has seen a 267% increase Internet for the first time. With billions of people still verging toward
in new users. Payment methods in Europe – via the bank transfer online, we expect to see strong double-digit growth over the next
app BLIK in Poland, for example – have seen triple-digit growth 5-10 years.
as well.
As new markets and new populations come online, providers will certainly
In the US, Klarna’s transaction volume rose by 44% in the first half of develop new payment services for them. But here’s the challenge: when
2020, as consumers got accustomed to flexible, short-term, interest- companies try to scale their offering to multiple markets or payment
free payment options, with other Buy Now, Pay Later (BNPL) schemes methods, it quickly becomes too time-consuming, complex, and
globally seeing a similar development. expensive. ➔
Whilst such growth in payment options reflects a change in consumer
needs driven by the pandemic, it also reflects a longer-term trend
away from traditional credit or debit cards to digital and online
payments that better suit how many consumers live and shop today.

Infrastructure, not integrations
The most efficient way for payment providers to keep ahead of
the rapidly evolving payment space is to work with a payments
infrastructure partner such as PPRO. PPRO helps its partners grow
their business by accelerating time-to-market and freeing up its
partners’ resources for redeployment into other areas.
Companies work on Google Hangouts or Slack or similar tools, and
there is a reason behind not building their own collaboration system:
it is because everyone needs to focus on doing what they do best.
We see local payments infrastructure the same way. The right
provider should handle all the technical, legal, and commercial
complexities, much of the cost, and speed up time-to-market for
its partners.
The number one priority for payments businesses

in the wake of COVID-19
The pandemic created an unprecedented opportunity to win new
customers. But companies will miss that opportunity if they fail to
create personalised, frictionless payment experiences.
Offering the end customers’ preferred payment method at checkout
should be the number one priority right now. But it is not merely a
question of quantity. Payment companies need quality integrations
at scale. Focus on delivering that, and your customers will keep
coming back long after the pandemic is over.
PPRO is the top global provider of local payments infrastructure, powering growth for
payment service providers and enterprises with payment platforms. Companies at the
forefront of payments technology leverage PPRO’s unified platform, expert services, and
local payment methods to boost sales in over 100 ecommerce markets worldwide. In 2020
alone, PPRO processed over USD 11 billion for its customers, including companies such
ppro.com as Mollie, PayPal, Worldpay, and many others.

Amadeus Payments
Pay When You Fly: Supporting Travel’s Recovery With Flexible Payment Options
Jean-Christophe Lacour is an experienced Payments professional currently responsible for

Amadeus’s payment gateway business. He is passionate about maximising the positive contribution
payments can make to a travel merchant’s business and their customers. Prior to joining Amadeus, he
held senior product and strategy roles at Visa Europe. Jean-Christophe holds an MSc in Engineering
(Computer Science and Electronics) from Tier 1 French university École Centrale de Marseille. He
started his career at Gemalto.
Jean-Christophe Lacour Head of Merchant Services Amadeus Payments
The way people pay for air travel has changed over the years, but According to our research, if airlines offered a PWYF option, 62% would
the fundamentals remain consistent. Travellers pay airlines the full be prepared to book travel in the summer of 2021. The benefits that
fare at the time a booking is made. This model provides a degree of most appealed were: ‘no need to go through the refund process’ (43%)
certainty to airlines as they receive cashflow earlier, but the pressures and ‘the money stays in my bank until I travel’ (38%). In fact, PWYF was
of the pandemic have caused the industry to ask if this model can the most popular way to pay, outscoring both BNPL and traditional
be improved to better meet the challenges of today. pay at booking by a significant margin.
High rates of cancellation due to changing travel restrictions have Boosting confidence to buy
introduced significant uncertainty for travellers and challenges PWYF could represent a change for airlines that would need to
administering refunds during the pandemic have impacted traveller consider the cashflow shock involved with receiving payment later.
confidence – 81% of respondents to a recent Amadeus survey of However, our research shows that there could be opportunities to
5,000 travellers confirmed that heightened risk of cancellation is a increase yield. Travellers told us that they would be willing to spend an
barrier to booking travel during 2021. additional 36% on travel this summer if PWYF options were available,
suggesting this payment option could help carriers drive higher
What if we could rebuild traveller confidence and offer them the option value sales.
to pay later, all without requiring them to enter a credit agreement?
This is the promise of Pay When You Fly (PWYF), a novel payment Similarly, 49% of travellers said they would be more likely to purchase
option that several European airlines have introduced in specific an ancillary service like a meal or airport transfer when using PWYF,
circumstances. compared to just 6% that said they would be less likely. Moreover,
they’d be most likely to purchase seat selection (45%), meals (41%),
Combatting uncertainty and larger baggage allowance (38%).
PWYF sees travellers pay a small deposit when they book, in the
region of 10-15% of the fare, to secure a reservation that is refundable Another challenge faced by airlines during the pandemic has been
if the service is not provided by the airline. The balance is then settled short booking windows, as travellers delay booking until the last
a couple of weeks before the flight departs. This reduces the risk for minute. Our research suggests that the confidence PWYF instils might
the traveller because they are able to lock in better prices available be able to help, by encouraging travellers to book earlier, meaning
for advance bookings. In the event that the flight is subsequently airlines get more time to plan and optimise operations. On average,
cancelled before full payment, the traveller would only need to reclaim if PWYF was available, travellers said they’d be prepared to book
a much smaller amount (it is also very possible that some travellers six months ahead of departure. ➔
may decide not to claim a refund for small deposits in the region
of 10%).

The details of deposits
One of the key aspects of PWYF is the payment of a deposit at the
time of booking, which is non-refundable if the traveller decides to
cancel. For airlines, the deposit is best thought of as a cancellation
fee – a relatively small amount that covers the costs associated with
a booking cancelled by the passenger. But how much should airlines
ask for as a deposit?
We asked travellers how much they would be willing to risk as a deposit
and the mean average was 8.7% of the full booking cost. However, 31%
were willing to pay a deposit representing more than 10% of the
total booking cost.
Like most payment options, PWYF will be more appealing to certain
demographics than others. For example, a family of four booking a
holiday may not wish to make a EUR 4,000 payment at the time of
booking if there’s a risk this money may not be returned for several
months. Or an individual traveller making a short-haul booking for
EUR 100 might be happier to wait for the refund.
Regardless, it is important to highlight that many airlines will seek
to offer a mix of innovative payment options to travellers, perhaps
including PWYF. But at Amadeus, we believe that it will drive customer
confidence, encouraging travel planning and booking even in an
uncertain environment with changing government restrictions.
For more information about the potential of Pay When You Fly,
download Amadeus’s report on this phenomenon here.
Amadeus is a gateway that offers services to travel companies, helping them take
payments from their customers, pay suppliers, and optimise both. We apply global
payments expertise and a network of trusted partnerships integrated into our smart
payment hub to provide travel companies and their customers with a seamless payments
experience.
amadeus.com/en

elumeo
The Rise of Digital Wallets and Disappearance of Plastic Cards
Isabelle Isil Ugurlu is currently working as Head of Payment at elumeo SE and has also taken over
an additional role at the group and become Money Laundering Reporting Officer in 2019. She is also
an active part of EWPN (European Women Payment Network) since 2018 to foster network’s presence
in the German fintech industry. She is initiating partnerships with leading organisations and holds
Meetups, which cover not only hot industry topics but also focus on important matters like diversity.
Isabelle Isil Ugurlu Head of Payment elumeo SE
As COVID-19 maintains its grip and continues to influence consumer
behaviour, the uptake of non-plastic payment methods is rising.
But does this spell the end of the plastic credit-card era?
From the first Diners Club credit card unveiled in 1950 to now, a lot
of time has passed and much has changed. Recent technological
developments and consumer preferences in-store could suggest
times are changing.
For some years now, predictions suggest that plastic credit cards or
any other means of physical payment methods will not be around
much longer. On the other hand, speculations about how much
longer we will be carrying cash in our pockets have always been Source: www.alamy.com
a popular discussion among financial experts. Various founders of

financial institutions, as well as industry experts, used to base their The fear of getting infected and the urgency to spend a minimum
predictions about the future of payments on the light-speed growth time in stores in order to avoid interactions at the cashier led
of digital payments. consumers towards digital solutions. Considering the fact that,
especially in mature and emerging markets, the tendency for
Pandemic impact on digitalisation digital wallets is rising for both in-store and online purchases, the
While digitalisation unquestionably plays a key role in the rise of immediate digital adoption is less surprising. During the crisis, as a
digital alternatives, recent global developments as a result of the result of a quick shift in consumer payment behaviour, the capacity
COVID-19 pandemic have shown us a different array of possibilities to pay by contactless card has proven wildly popular during the
for rapid behavioural shifts amongst consumers. At the beginning pandemic. New data from Visa shows contactless cards were used
of the global pandemic, many governments took measures to in 73% of all card transactions worldwide in the last year.
protect their citizens, leading to lockdowns of varying degrees.
The immediate consequence was, of course, a steep reduction in And technologies that qualify as replacements for plastics cards
expenses along with cash usage. The fear of contracting corona already exist. Furthermore, options like QR codes, NFC, and
virus through high-traffic ATMs and, in some cases, the refusal of temporary PINs have been around for a while but true uptake and
merchants to accept cash can only be seen as a great addition to market breakthrough seem to only have happened on a global scale
an already declared war on cash. since the beginning of the pandemic. ➔

to be the second, most preferred payment method after cards and
the most preferred method among Millennials.
The predictions made before the pandemic may need to be adjusted
since COVID-19 and the extreme measures taken have allowed
changes to happen which might, under normal circumstances, have
taken years to take hold.
So, are smartphones set to make credit cards obsolete? Or will
there be a comeback for our beloved plastic spending power?
Source: Forbes Survey results pre-pandemic suggested many people were not
ready to abandon their beautiful leather wallets. In order to ascertain
In fact, according to statistics (see above), 86% of first-time con whether this becomes reality, we will need to keep consumer behavioural
tactless adapters see themselves likely to proceed with contactless trends, as well as rapid digital growth in payment technologies, closely
payments from now on. This trend may mean as well for cash as on our radar.
for plastics credit card a soon end.
When things, if ever, return to normality, a consumer-driven, slightly
Predictions and outcomes different checkout journey might just be awaiting us.
Mobile wallet demand had been on the rise before the pandemic.
Countries like France, Italy, and Germany had almost 150 million I would put my money on days spent free off plastic cards, scanning
smartphone users in 2019 alone. And by 2025, it is even being watches instead of inserting chips and presenting QR codes at
reported that 80% of the transactions will be done via internet- a self-checkout instead of queuing behind the masses. But then
backed devices. By then, it is expected that e-wallets are going again, I am a Millennial.
elumeo is a leading European company specialising in the production and sale of a wide
range of gemstone jewelry. Founded in 2008, it combines the tradition of age-old handcraft
with the cost benefits of electronic sales channels.
www.elumeo.com
EWPN is a not-for-profit organisation dedicated to building a community for women in

cards, fintech and payments in Europe. As the first and only Pan-European community
for women, EWPN strives to create more opportunities for women and minorities, as well
as being a champion for a more diverse and inclusive industry for all. EWPN does this by
organising local networking evenings, workshops, annual events, awards, and research,
ewpn.eu which all are welcome to be involved in.

Payment Operations Group
Get Invited to Go Outside and Play – Exploring New Payment Experiences
Sally Baptiste co-founded Payment Operations Group. Having run merchant payments for 16
years and worked for an acquirer for 13 years, she is able to leverage multiple perspectives to deliver
comprehensive approaches to payment processing for audiences around the world.
Sally Baptiste Founder Payment Operations Group
You are proud of your company for quickly transitioning to an online Before your consumer base expands their communications to ‘in
pandemic position for shoppers. Your customers, your leadership, person’, your company can assist their efforts by crafting a story of
and your company’s profitability relied on this shift and you delivered. their individual experience during lockdown through the lens of your
Across the world, we seem to be closer to the end of the pandemic brand. Early on, you sought comfort by buying W, later you leaned
than the beginning. As various parts of the world fight through expan into fitness with X, cooking with Y, and home improvement with Z.
ding cases, variant growth, vaccinations, and loosening restrictions, When they open this crafted story, offer a referral coupon so they
are you ready for post-pandemic shopping patterns? Did you just can instantly send the story/coupon/app to their friends.
assume that everything will return to pre-pandemic norms? It will not,
so it is time to redesign the user experience – again. This is just a suggestion, of course, but try to find a way to help con
sumers reconnect through the lens of positivity you can offer. Look at
In this piece, we discuss some factors to consider as you build your your user experience and identify a way you can become a conver
newest version of ‘normal’. sation instigator as they re-expand their world.
Be portable Be accessible
Your consumers are about to race out into public to re-connect with As your consumers go out, help them celebrate by inviting them to
everyone and everything they have missed for, well, over a year. upload pictures and plans of what they intend to do and what they
Go with them. Convert them to your mobile experience through did. Celebrate their re-discovered freedom – it will help you know
incentives, special offers, or additional features. Then buckle up whether to feature sporting apparel or wine selections as they
and collect those new data points. venture back out.
A little introspection and potentially a new feature can be combined For many of your customers, they may not be out for a while, but they
to incent a conversion to your mobile, in-app experience. Find a way are definitely thinking about it. Expand your experience to include
to ‘ask’ your non-app users to go out with them, encourage their anticipation. Help them think about and plan their ‘new normal’ and
trips, and be taken along. If they have an app, sensing they are out include your brand in any way possible. Site visits do not always
can prompt an alert of excitement to be joining them! have to be about the sale – it can be about the anticipation as well. ➔
Be sharable
Your consumers are about to tell their friends and family what they’ve
been doing for the last 18 months. So let them bring up pictures of
what they previously purchased and share that amazing find with
everyone.
Be available Be patient
Just because a customer can go to a retail outlet, it doesn’t mean they A short dip in site visits or purchases may be just that: short. If you
want to. Check to see if your website, product offering, or retail foot built an addictive user experience, your customers may just be busy
print adds a positive, sharable experience. Or would your users like but they will be back very soon.
to continue with the convenience they discovered during lockdown?
Be the answer they seek. Customer communication does not have to be sales-driven. Craft
messages for the areas they are in, discuss opportunities they may
have as their local restrictions are lifted and as events re-emerge.
It may not be on-brand but encourage their new freedom as it arrives
and they will be sure to remember your positivity when life settles back
into that ‘new-normal’.
Now is the time to re-examine your entire experience, re-package it
for yet another normal, and be ready when your consumers go back
into the world they have craved – and be invited to go with them.
Your brand has added value and convenience, in addition to protec
tion, during these difficult times. It’s time to re-assert your available
services as the convenience they can continue to be. Pinpoint and
re-market your features and services to enable your consumer base
to save time, reduce hassles, leverage your shoppers, or even auto-
renew pantry basics. Find the best new reason to use your pandemic
services beyond the pandemic – and tell someone!
Payment Operations Group is a consultancy of payment professionals with over

40 years’ combined experience in the payments industry – from acquiring and ISOs to
merchant perspectives. Our focus is on educating our clients with our end-to-end approach
to payment processing, helping them navigate the complex ecosystem, and strengthening
their position in their chosen processes.
paymentoperationsgroup.com
Security
Hoofdstukkop
Fraugster
The Most Common Fraud Threats for Individual Payment Methods
Neil Govender is Fraugster’s Head of Client Solutions and has held roles in Fraud Analytics as well
as technical and managerial roles at Mastercard, among other fintech companies. Neil’s main focus
is on providing the most innovative and successful fraud prevention strategies and solutions to both
merchants and PSPs, so they can minimise the risk and impact of fraud.
Neil Govender Head of Client Solutions Fraugster
There are over 200 types of payment methods available worldwide. This is why both merchants and PSPs must build a credible, competent
With so many options to choose from, merchants and payment service strategy around providing all preferred payment methods for their
providers (PSPs) are now seeing a significant shift in the ecommerce customers. However, with each new payment option that is enabled,
landscape. Payment is becoming a consumer brand, moving up in the the surface area of attack increases. Now, the goal is to provide
value chain from a utility to a preference, and it is influencing where choice and cater to customer payment preferences without sacri
customers buy. ficing security. And the best way to ensure secure transactions is
to understand the unique threats that come with each payment
Customers are also showing loyalty to their preferred payment type. method.
A recent study by PPRO showed that 44% of online shoppers have
admitted to abandoning a purchase if their favourite payment method The most popular payment methods – the risks
is not available. Therefore, payment method preference has become
such a fundamental aspect of the customer’s journey that it is now
time to add a sixth step to the traditional 5 Stage Buyer Decision
Process model.
Credit cards
Percentage of online payment mix by selected markets – Japan 65%,
Australia 52%, the UK 50%, Brazil 45%, Nordics 40%, France 36%,
North America 33%, Benelux 20%, Germany 12%
Fraud factor – card theft is a common issue with this payment type.
One of the major impacts can come in the form of chargebacks.
Not only can a merchant lose both the shipped item and the cost
charged, but the fees and fines associated with repeat chargebacks
can also run into the thousands. ➔
E-wallets
Percentage of online payment mix by selected markets – China 54%, bank account information and use it as a billing account. Then, they
Italy 35%, North America 30%, Spain 32%, the UK 31%, Germany use their desired pick-up address for shipping.
25%, Australia 22%, Benelux 10%
Cash on delivery
Fraud factor – account takeover (ATO) attacks are a danger to look Percentage of online payment mix by selected markets – Brazil 18%,
out for, with fraudsters gaining access to a user’s login information. Thailand 15%
This costly issue can also result in high chargebacks.
Fraud factor – this payment method may involve ordering online.
Buy Now, Pay Later (BNPL) & payment upon invoice However, the end payment comes in the form of cash. This can bring
BNPL – percentage of online payment mix by selected markets – with it the risk of money laundering. The direct cost to merchants is
Sweden 23%, the UK 14%, Germany 10%, Benelux 8% that scammers may purchase something online, pay with cash, then
request a refund to be transferred to a completely separate account.
Fraud factor – one of the main fraud tactics for BNPL is synthetic identity Merchants can also be vulnerable to other indirect costs like shipping
fraud. This is when a fraudster signs up for a BNPL account using and returns.
a real identity that has been constructed from multiple data points
combined with false information – name, surname, shipping address. Providing payment method preference without
This is one of the fastest-growing types of fraud and can result in large opening yourself to unacceptable fraud risks
revenue losses. The best practice for accurately evaluating payment method risk
comes down to a process known as data enrichment. Once a cus
Payment upon invoice – percentage of online payment mix by selected tomer makes a purchase attempt, 20-60 basic data points are then
markets – Germany 22%, Nordics 21%, Benelux 10-15%, the UK 1% sent to a risk management system, where thousands of additional
data points are uncovered and connected. This additional infor
Fraud factor – a fraudster can organise goods to be shipped to one mation provides the insight required to make an informed decision
address and the bill sent to another. The fraudster receives the delivery, on the validity of a given transaction and mitigates against fraud.
but an unsuspecting bystander receives the notice for payment.
This means that the merchant loses out on the goods before they For more high-risk transactions, it is recommended that additional
ever get paid. checks be implemented to maximise approval accuracy and save
legitimate purchases. This could come in the form of a one-time
Direct Debit password (OTP) or device ID check.
Percentage of online payment mix by selected markets – Benelux
50%, Malaysia 47%, Belgium 19%, Mexico 16%, Germany 25%, The merchants and PSPs who can strike a balance between catering
Nordics 20% to preferred payment preferences while also providing scalable
security measures will be the ones who find cross-border success.
Fraud factor – many online entities (businesses and public institu
tions) have their bank details open for public view on their website
so that visitors can pay directly. However, fraudsters take this public
Fraugster is an AI-based payment security company that enables ecommerce businesses

and global payment companies to intelligently manage the impact of fraud on their
business. We support our customers to reduce false positives, the total cost of fraud, and
improve checkout experiences.
fraugster.com
Localisation
BoaCompra
The Paypers has interviewed Alain Delcourt, Managing Director of BoaCompra, to learn more about the adoption and usage of
PIX in Brazil and what lies ahead for the country’s payments landscape.
Alain Delcourt is Managing Director at BoaCompra, a PagSeguro company. He has 20 years of

expertise in ecommerce, payments, and digital goods distribution in Latin America. Prior to BoaCompra,
Alain co-founded several ventures, which turned him into a versatile executive known for his skills to
build multicultural teams and highly collaborative work environments.
Alain Delcourt Managing Director BoaCompra
How did the local payment methods landscape in However, what really has shaken the payment landscape was the
Brazil evolve in the last couple of years, considering launch of PIX in November 2020. PIX is the new payment system
the rapid growth of ecommerce within the country? created and ran by the Central Bank of Brazil that allows real-time
We could say COVID-19 triggered an essential acceleration money transfers and payments. Free for consumers, PIX is intended
in banking penetration among Brazilians. Those new accounts to improve the ability to move money, replacing a previous system
provided access to digital payments, enabling access to that charged consumers a fee for bank transfers and was only
ecommerce. Credit cards transactions are still the most dominant available during working hours. Both consumers and businesses
payment method in 2020, taking up 64% of the total ecommerce can register for PIX using ‘keys’ such as phone numbers, national
share. It is motivated by the advantage of instalment payments, ID numbers, or randomly selected numbers.
a widespread option offered by almost every merchant that accepts
cards. Boleto bancario, the most popular cash voucher payment, PIX has seen outstanding adoption by Brazilians, with over 254
is losing share in recent years but was still the second most used million registered keys and over 93 million users in its first six months
payment method in 2020. E-wallets grew in share and remained as of existence. Historic transaction volume as of 31 May surpassed
the third most used option. BRL 1.4 trillion (USD 298 billion) and grew 61% monthly.
So far, PIX has been replacing cash and traditional bank transfers
So far, PIX has been (known locally as TEDs). The most recent Central Bank data
replacing cash and traditional demonstrates that PIX is overcoming even boletos in the number
of transactions, suggesting the cannibalisation of B2B and some

bank transfers (known locally
consumer payments. These are very expressive numbers, and we
as TEDs). The most recent already are seeing excellent results within BoaCompra’s merchants.
Central Bank data demonstrates

What are some of the main PIX benefits for
that PIX is overcoming even
consumers and merchants?
boletos in the number of From the consumer’s perspective, the key benefit would be that
transactions, suggesting the payments can be made 24 hours a day, seven days a week, all days
of the year (including weekends and holidays). Additionally, the

cannibalisation of B2B and some
entire process of identifying the receiver is streamlined, and it can
consumer payments. be accomplished by communicating their PIX key or scanning a QR
code – following only a few steps. ➔
Other key benefits for consumers would be that funds are What did BoaCompra notice in terms of facts and
transferred to recipients in a few seconds, and payments can be figures since it started providing PIX as a payment
made through PIX even if the person or company receiving the option?
funds operates with a different financial institution. At BoaCompra, most merchants started to offer PIX only in 2021,
and even if it is not being provided by most of our merchants, PIX
From the merchant perspective, PIX also offers many benefits: already represents 26% of the share. PIX appears as the second
it is cheaper since the number of intermediaries on the payment or third largest payment method for those merchants that have
arrangem ent is reduced with PIX; it provides access to more implemented it, surpassing bank transfers, e-wallets, and boleto,
shoppers (including new, unbanked ones) as the only requirement which represents on average 25% of total sales.
is that their fintech or e-wallet of choice is integrated to PIX; it offers
faster delivery of products or services as PIX receives payments As PIX has already seen such massive growth in
more quickly, and it is possible to deliver the product or service to Brazil, what do you think lies ahead for the more
the customer even quicker. It can positively impact the merchant’s traditional payment methods (such as cash-based
stock management and customer satisfaction with the brand. payments)?
What is more, PIX can help raise checkout conversion rates by We believe that PIX has all the potential to disrupt the way Brazilians
offering customers a payment method that has been massively pay in the near future. It has already replaced traditional bank
adopted in Brazil by users. transfers, has already overtaken boletos – and e-wallets and debit
cards will suffer from the easiness of use and massive adoption of
What is the difference between the existing payment PIX. Also, the consumer-to-business (C2B) transactions as part of
arrangement and the one with PIX? PIX are growing at an average monthly rate of 82% since the launch.
When we talk about the easiness of the process with PIX, it becomes It is time for a payment revolution in Brazil.
clear how bureaucratic was the traditional process and how PIX is
disruptive. To pay with Traditional Bank Transfers (DOCs/TEDs), the
end-user must complete information about the receiver – such as
Social Security Number, branch, account. Also, funds are available
only the next working day.
With Boleto Bancario, the end-user needs to generate a ‘boleto’, pay
via online banking, or at an ATM, or at a licensed shop, and funds
are available for up to three working days.
PIX only requires a PIX key, works 24/7, and funds are available
in real time.
BoaCompra is a cross-border payment platform that enables worldwide merchants to

access Latin America, accept local payments, or send payouts. An all-in-one solution that
offers local processing in local currency with international funds remittance, without the
need for a local entity in 17 countries in the region – or sending single/mass payouts to
Brazilians in local currency instantly, with no banking fees.
BoaCompra has over 15 years of experience in the Latin America region and is an expert
in handling complex procedures of cross-border transfers, including conversions, fees,
and compliance requirements. Being part of PagSeguro, a disruptive provider of financial
technology solutions in Brazil, extends our technological and financial resilience, driven by
boacompra.com
robust and consolidated infrastructure and capital.
SafetyPay
We sat down with Gustavo Ruiz Moya, SafetyPay, to learn more about financial inclusion and digital innovation in LATAM
Gustavo Ruiz Moya, CEO of SafetyPay, has led the company since 2013. His extensive background
ranges across several sectors such as payments, banking, and travel industries. Prior to joining
SafetyPay, Gustavo led American Express Bank in Mexico, holding several top positions including
VP and General Manager. His strategic vision and knowledge of international markets guides SafetyPay
to achieve aggressive performance goals.
Gustavo Ruiz Moya CEO SafetyPay
LATAM has seen great progress when it comes to like India and the Philippines, both scoring 71 out of 100. In addition,
increasing general access to financial products. countries like Mexico, Brazil, Chile, Colombia, Peru, Ecuador, and
Can you elaborate on the initiatives in this space Uruguay are all developing Open Banking frameworks. Many
that either emerged or gained ground during the regions across the world have adapted to the global shutdown
last couple of years? by taking advantage of digital payment channels. Cash-based
Over the last 18 months, financial opportunities and options in payments are declining in favour of electronic payments but are still
global markets have dealt with dynamic changes when it comes a critical payment method for the 200 million Latin Americans who
to everyday payments. LATAM consumers show a strong demand do not have their own bank accounts. Commerce in the region
for digital transaction experiences, and LATAM is emerging is still reliant on cash, with 21% of ecommerce transactions paid
as the world’s fastest-growing region for mobile ecommerce. with cash, compared to 10% in Asia and 7% in Western Europe.
Concurrently, the middle class has grown by more than 50% in LATAM countries are implementing ideas (such as social commerce)
the past decade, which, when combined with a high smartphone that proved to be successful in other markets to help improve their
adoption rate of over 60%, has increased the demand for more business strategy – which starts with the implementation of digital
fintech products and payment options. As of September 2020, wallets. Countries like Mexico have built and integrated digital
40 million people in LATAM remain unbanked, a decrease from wallets with QR into their marketplaces, allowing merchants to
45 million in May 2019 – and according to Statista, Colombia, further examine data and growth rates in digital, cross-border
Peru, and Uruguay earned financial inclusion scores as high as 75 patterns. With a digital payment platform based on QR codes,
(out of 100) in 2019. They ranked highest as the nations with best Mexico is much more advanced regarding instant payments than
access to financial resources, even above leading Asian markets many other LATAM markets. Following this trend and in order to add
more alternative payment methods for consumers and merchants
alike, SafetyPay implemented a QR code-based instant payment
Keeping a customer-centric solution, PIX in Brazil as an additional payment option for its
mindset and establishing aware merchants last May.
ness around digital innovation can

What are the main barriers that still stand in the
provide financial service access way of financial inclusion, and how can they be
to millions of customers that may tackled in order to also support the merchant
community in LATAM?
have missed these opportunities
Although financial inclusivity around the world is on the rise in 2021
in the past. due to new policies, tech-first financial institutions, and advance
ments in the fintech industry, there is still a long way to go. ➔
Geographical distance is one of the main barriers, as financial insti in LATAM and the Caribbean expect to use payment technologies
tutions locate banks in urban areas with high population density. such as QR codes within the next year.
The vast majority of the unbanked and underbanked population
live in rural areas, and their lack of physical access to a reliable What are the biggest gains registered after the last
financial source leaves them financially excluded. Moreover, high 12 months in terms of existing financial habits of
transaction costs are also an issue, since many transactions have consumers?
fees that could be unaffordable for low-income customers. Latin Customers are more concerned about fraud and actively shifting
American governments are beginning to create more inclusive toward options that do not compromise their financial information,
environments to support the growth of ecommerce. Colombia’s such as accessing their banking information via apps and secure
government introduced three VAT-free days in June, July, and sites on their mobile devices. Through this consumer shift, banks,
November 2020. They focused on the efficiency of online sales, and companies, and startups alike are rushing to adapt to consumer
they recognised the potential for ecommerce to power economic preferences. LATAM is gravitating towards digital channels, products,
growth. For merchants and their customers, implementing new, and services across different spectrums. Along with the rest of
frictionless technology that caters to discrepancies in payment the world, customers are seeking digital and contactless payment
options can make a positive impact. For example, providing QR methods. Latin American consumers are very open towards the idea
options for purchasing products in-store and paying bills within one of shopping online for physical goods, they are also interested in
secure account makes paying for goods and services easy and quick premium products, and they are price-conscious shoppers. Recent
for the consumer, while also enhancing convenience for merchants. data from Kantar shows that in Q1 of 2021 compared to 2020
people in Brazil and Mexico, across all socioeconomic levels, were
In many parts of the continent the population has shopping less often but buying more per trip.
no access or limited access to financial services.

How can digital innovation and digital financial How did SafetyPay support financial inclusion in
solutions support a decrease in this sense? this new local context?
The framework behind digital innovation and digital solutions is Addressing financial inclusion is key for future economic growth
designed to accelerate the flow of payments, ease reconciliation, and financial security. By providing an alternative payment option
and streamline opportunities. Digital investment and innovation for consumers that are underbanked or those who chose not to use
around dedicated resources like interactive client support and credit cards, SafetyPay opens purchasing options that previously
payment management services for middle-class and lower income didn’t exist. For businesses, there are two essential components
customers is critical moving forward. Keeping a customer-centric toward promoting extra value that must be part of their overarching
mindset and establishing awareness around digital innovations like strategy: offering a transfer platform for those customers wanting to
QR codes, biometric payments, and cryptocurrency transactions make online purchases without compromising financial information
can provide financial service access to millions of customers and providing instant confirmation to merchants to better manage
that may have missed these opportunities in the past. What’s their inventories in real time. Both must be considered and executed
more, Mastercard’s New Payments Index identified contactless to build customer trust, which will ultimately lead to the future of
technology as ‘the digital catalyst’ for the exploration of new banking success.
payment options. The survey also found that 66% of respondents
Founded in 2007, SafetyPay is a secure and convenient alternative payments platform

that enables ecommerce transactions on behalf of consumers and merchants. With a com
prehensive suite of B2C and B2B payment solutions available, the company eliminates
common pain points associated with traditional payment methods. SafetyPay enables
cardless payments, either in the form of bank transfers or cash digitalisation. The platform
currently partners with more than 380 banks in 18 countries worldwide, across Latin
safetypay.com America, Europe, and North America.
Partelya Consulting
Southern Europe at the Crossroads of Innovative Payments
Expert in payments and financial services, 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 Aefi Spain and Afip Portugal, she realised several
publications about payments and is one of the co-authors of The PAYTech Book published in January
2020 by Wiley.
Andréa Toucinho Director of Studies, Prospective and Training Partelya Consulting
With so many initiatives on CBDC, instant payment, EPI, Southern This position testifies to the evolution of these two countries, histori
Europe is nowadays engaged in a huge transformation of payments cally linked with an international vision (Latin America, Africa), about
uses. Among the key countries, Spain has shown its ambition to a European payments strategy. Another important aspect is the
be at the forefront of European projects. At the same time, Italy is creation of a European fintech alliance, based on the same principles
one of the main European countries to work on CBDC. Last but not as the Ibero America Alliance launched in 2016 between the Latin
least, Portugal has presented in 2020 a strategic plan composed fintech association and the fellow organisations in Spain and Portugal.
of four pillars and twelve concrete actions to modernise payments
uses in the country. Confronted with the acceleration of European strategy in the field of
payments, and more precisely with EPI operational project, Spain
Announced in July 2020, European Payments Initiative (EPI) aims is among the forefront countries of European strategy in the field
at creating a pan-European payments solution. Launched, in the of digital. After the launch in July 2020, EPI extended its position to
beginning, by sixteen banks from five European countries – France, Poland and Finland. The interim company has now 22 shareholders
Belgium, the Netherlands, Spain, and Germany – EPI is now building (33 entities). Among the new stakeholders are Worldline, Nets Group,
its strategy in relation to operational actors of the European payments PKO Polski, and two new Spanish actors: Spanish Banking Consor
ecosystem. tium and Banco Sabadell. According to several Spanish actors,
there is an important link between innovative payments and the
Spain: one of the major actors of EPI project opening of the market, above all since the adoption of the sandbox
The European position of Spain, in the field of payments, is not a in September 2020 in Spain. ➔
surprise if we refer, for instance, to the engagement about Target
Instant Payment Settlement (TIPS) in 2018. At that time, the European
payments market was launching a new mean of payment: instant
payment. Convinced of the necessity to guarantee the European
reachability of this new tool, European Central Bank (ECB) created
TIPS. Among the first countries to adopt this tool were Germany,
France, and Spain. The first real European instant payment was
made, on 30 November 2018, by a Spanish bank (La Caixa) and a
French one (Natixis). Until now, several Spanish actors launched instant
payments as a new attractive tool. Its neighbour country, Portugal,
adopted in 2020 TIPS to accelerate truly European instant payments
in the country.
Italy: an experimental approach about CBDC Portugal: a strategic plan
Italian fintech sector, which also adopted a sandbox in 2019, is In Portugal, instant payment experienced a real boom in terms of
also confronted with a huge evolution in the payments field. One of uses last year, with a growth of 81% of volume and 50% in value
the major topics addressed by the Italian association of banks (Asso according to some figures shared by Banco de Portugal at the
ciazione Bancaria Italiana – Abi) is Central Bank Digital Currency beginning of 2021. The Portuguese payments ecosystem is now
(CBDC) considered not only as a real new innovative tool, but also working on the evolution of uses in the country. The goal is to promote
as a way to foster the possibilities of blockchain technology in the electronic means of payment. Among the pillars of the 2020-2022
payments sector. Abi announced in December 2020 its project to strategy: promoting information and communication in Portuguese
work on CBDC in order to contribute to European debates about society, reinforcing the benefits of digital transformation, contributing
this topic. The experimentation is done with some Italian banks and to a regulatory framework ensuring innovation and efficiency, and
Abi research lab. Another key issue of the Italian payments market promoting the adoption of secure payments uses. This plan implies
is Open Banking, which is considered today not just as a compliant twelve concrete actions based in the promotion of contactless and
project linked with PSD2 migration, but also as a real opportunity instant payment as ‘new normal’ as it is already the case in The Nether
to foster new uses and models. This position is not surprising if we lands, reinforcing the decline of checks payments, and boosting the
refer to Italian proactive strategy in the field of instant payment, development of ecommerce, SEPA Direct Debit, and more efficient
a few years ago. Italian banks considered, at that time, instant payments toward public administration. Concerning this last point,
payment as a new tool and a real asset to foster the migration of several Portuguese professionals consider request-to-pay as a real
some consumers (professionals, young generations etc.) towards tool to modernise payments towards administration, especially if we
electronic uses. already know that this new solution is seen at a European level as a
real ‘catalyst’ of instant payment and a ‘game-changer’ for the market.
Created in 2008, Partelya Consulting is a French innovative consulting company

specialised in means of payment and IT that contributed to various projects in the field of
payments for companies and financial institutions.
partelya.com
The Merchants’ Perspective –
Mini-Interviews on Customer Behaviour
Hoofdstukkop
Jumia
What measures have you taken to adapt to the new
payment preferences of your consumers?
Sami Louali
We keep on adding new payment methods to our portfolio of availa
EVP Financial Services ble providers, to make sure our customers can use their preferred
Jumia payment method – for example a card, a bank account, or a mobile
money account. Our objective is to offer all relevant local payment
methods to our community.
In addition to that, we have developed an instant refund solution
in the form of a store credit for future purchases on Jumia.
Our customers can choose to be refunded on their original payment
instrument (e.g. their card) but it can take a few days, or they can
The user experience is the key factor of success, and payments opt for the store credit and get their money back instantaneously
need to be smooth, secure, and fun. It is all about knowing to use on our platform. The credit is then automatically debited
your customers and simplifying their life – insights from Jumia from their next purchase. It is a significant improvement of the user
experience.
What changes have you noticed in terms of the

way your consumers pay? Finally, we are exploring options to offer Buy Now, Pay Later
We have noticed three main trends. The first one is an accelerated solutions to our online shoppers.
shift towards online payments since COVID-19 kicked in, with a con
tinuously decreasing share of cash on delivery payments. Many of How do they see the future of payments driven by
our customers used JumiaPay for the first time during the pandemic, Gen Z and Millennials?
mainly for safety reasons – they wanted to avoid exchange of physical Payments need to be smooth, secure, and fun. The user experience
cash. Online payments have also enabled contactless deliveries, is the key factor of success.
where the delivery agent puts the package in front of consumers’

doorstep during collection. The login must be seamless (e.g. biometric, PIN), the security must
be the best in class (e.g. anti-account takeover, with two-factor
The second trend we have noticed is an increased demand for fast/ authentication), the payment must be done as simply as possible.
instant refunds. Rightfully, our users are becoming more demanding For the latter, we have been working on a One Click solution that
and want to get their money back quickly in case of a cancellation or will be released very soon on some of our platforms – on the food
product return. Refunds back to debit and credit cards still take too delivery mobile app.
long for many of the issuing banks in some of our countries. This is
improving over time, but it can still take a few days or even longer. We are also building a whole ecosystem around our payment solution,
JumiaPay, with a dedicated super app, on which you can pretty much
The last trend is an increased demand for Buy Now, Pay Later (BNPL) pay for anything, from airtime recharge, utilities bills, e-vouchers,
solutions. Our customers want to pay in instalments (30 days, 3/6/12 TV/music streaming subscriptions, and so on. We are simplifying
months, and so on). They are even often ready to pay a fee for such the daily lives of our community, by bringing the most common
services, even though the goal should be to offer these solutions services on a single platform.
for free – or at a very affordable price. The trend is global, it has
started in countries such as Egypt, and it will develop across the
continent in the coming years.
Kinguin
After we enabled this feature, we saw traction resulting in organic
Faheem Bakshi conversion to Vault Payment.
Vice President of Payments and

Exchanges Crypto payments – We have had Bitcoin integrated since 2015, but
recently we also added new cryptocurrencies like Ethereum, USDC

Kinguin
Paxos standard, Gemini dollar, Binance USD, Ripple (XRP), and the
famous Dogecoin (DOGE).
Faster checkout – We see increased conversion after introducing fewer
payment or checkout pages and having all information requested
from customers in one page once the product is added to the basket.
Mobile wallets, unbanked currency, and one-page checkout are
a few key elements to consider for future customer conversion - Mobile payment – We have observed not only that consumers are
insights from Kinguin willing to pay via phone, but also that telecoms are moving from
traditional SMS purchases and prepaid to billing.
What changes have you noticed in terms of the way

your consumers pay? Buy Now, Pay Later – There are payment providers who make the
Prepaid card adoption – Other than wallet or credit cards, this is upfront payment on behalf of the customer, and we as a platform
something our customers, who are gamers, love to purchase. They simply receive the amount instantly upon purchase. Since we have a gaming
go to a shop to buy a prepaid card and redeem it on our platform. audience, we have a great demand and we enable this feature as
soon as our payment partner introduces it.
Payment token adoption – We have seen a surge in customers who
add payment tokens to avoid sharing their payment credentials or How do they see the future of payments driven by
details on their next purchase. Gen Z and Millennials?
Unbanked currency – Prepaid cards are one of the fastest-growing
Customers expect personalisation – Customers who are frequent alternative methods, especially for Millennials, also because many
visitors to this platform are not treated as new customers. That’s why younger consumers don’t have a bank account or a credit card.
we have changed the customer’s checkout experience and added
the last payment used as the first option at the checkout. Cryptocurrency – Millennials today are aware of cryptocurrencies
and their growth benefit, even if there is some volatility. This opens
Familiarise with 3D 2.0 – While in the past we had more complaints up an opportunity to introduce a secure payment method with a low
that transactions do not go through with 3-D Secure, now customers transaction fee on international payments.
already maintain their banking structure to comply and have a smooth
transaction while making a purchase. Mobile wallet applications – They created several opportunities, like
a cashback system, or even the option to pay bills via applications
What measures have you taken to adapt to the new that drive such payments. Banks have now collaborated with such
payments preferences of your consumers? payment providers to expand their Millennial and Gen Z user base.
Vault Payment – We recently added Vault Payment via our Kinguin
Payment Service 2.0, which is our API platform for payments. User experience – A one-page checkout has better conversion
Customers, after choosing the Vault Payment option, do not have than a three-page checkout. Millennials need to be able to make a
to input their credentials or credit card information on the second quick purchase, and they need to make sure where to enter their
purchase. It results in faster checkout and an increase in conversion. payment details.
Mango
where – this of course, in a secure environment and with an optimal
Carlos Madrona payment experience with the latest technologies while simplifying
Internal Control & Compliance, developments as much as possible. This way, we can alienate our
Payment Methods and Fraud selves with this whole world that advances at a speed where it is
Director
really difficult to compete if you do not have good partners along
Mango
the way.
How do they see the future of payments driven by

Gen Z and Millennials?
Among all the variables that influence understanding domestic
economies, one of the most important ones is age. The year we are
born, the generation to which we belong marks our way of saving
Bringing the latest technology in payment methods to your net and spending. The mobile phone is the main device through which
work, no matter where the customer is or how they want to pay – new generations will make their purchases online. In addition, they
insights from Mango tend to be carried away by the recommendations that different influ
encers offer through social networks.
What changes have you noticed in terms of the

way your consumers pay? These generations are interconnected and that is where the difference
The pandemic has clearly marked a before and after, but not only this. lies; their needs are different from those of yesteryear.
The new generations are changing the world of payments; countries,
where before the classic payments methods dominated the market, People who belong to this generation seek autonomy, govern every
are affected by a disruptive behaviour of the new generations that thing they do with the palm of their hand, expect agility and security,
force us, the merchants, to understand these customers. Offering and they seek to break standard protocols because they do not
customers to pay with what they use is not so much what they have, understand them.
and they normally articulate through the mobile device.

And how do we align ourselves from a payment methods point of
That said, new players have appeared on the market that are fully view with all this? By giving value to things, payments have to stop
aligned with them, offering security, immediacy, and technology, with being a pain point to become something natural that happens when
an exquisite user experience. Allowing to pay is no longer enough for someone wants to buy a product or service.
us, we have to make the payment experience enjoyable. On the other
hand, some clients do not belong to this group of new generations. This transformation will involve a great effort on the part of merchants,
We also have to provide services to them, in addition to agility and which we will only be able to achieve by collaborating with strategic
security, not in the payment itself, but in a secure environment. partners, because it will evolve at such a speed that businesses alone
will not be able to adapt in time and form to the continuous changes
What measures you have taken to adapt to the that they are going to come, for a long time. The merchant has no
new payments preferences of your consumers? longer served to sign with a large payment provider – what’s important
We are in the midst of creating an omnichannel payment experience. is creating links between partners that allow going hand in hand,
Because a client has to pay differently across channels, why has creating a win-win strategy that is fully adaptable to changes in the
the same client different payment experiences in a different country? shortest possible time. At Mango, we are already working on our
All these things are what we question and that is why in our transfor Global Payments ecosystem, to bring the latest technology in payment
mation process we are developing an omnichannel payment environ methods to our entire network, no matter where the customer is or
ment in which the customers will decide how they want to pay and how they want to pay.
TIDAL
How do you see the future of payments driven by
Gen Z and Millennials?
Melissa Gentile
The future of payments will undoubtedly be influenced by Gen Z &
Global Payments Manager Millennials. These generations are highly tech-savvy and mobile-
TIDAL native which inherently increases interest and demand for digital
payments products. The importance of keeping up with payment
trends will be crucial in maintaining relevance with this demographic.
Peer-to-Peer (P2P) apps such as Cash App, which is a mobile
payment service developed by Square, are also bound to continue
gaining widespread usage and popularity. Beyond transferring funds
between friends and family, these have already begun to add the
ability to use as a digital payment method to pay for online bills
Keeping up with payment trends will be crucial in maintaining and subscriptions. Lastly, cryptocurrency such as Bitcoin will surely
relevance with tech-savvy users like Gen Z and Millenials. be something that more merchants begin to adopt as consumers
As well finding the crossroads between speed, convenience use it more in their day-to-day lives and will find its way into these
and security is key for ecommerce success – insights from Tidal payment methods and platforms to fulfil demand.
What changes have you noticed in terms of the Finding the crossroads between speed, convenience and security
way your consumers pay? drives every decision regarding ecommerce. Consumers are savvier
With the dawn and evolution of ‘alternative payment methods’ than ever and naturally demand more while the bar continues
such as digital wallets, direct bank transfer methods, and peer- to rise. As the world becomes more digital, inevitably, commerce
to-peer (P2P) banking apps, there are more options available to will continue to shift along with it and payments are at the forefront
consumers that increase both the convenience and security of of it all.
online transactions. Moreover, the adoption of payment methods
like Google Pay (GPay) & Apple Pay in the US and SOFORT, iDEAL,
Klarna, and many others abroad have become increasingly apparent
in day-to-day consumer behaviour. The recent boom to ecommerce
from stay-at-home orders and the sudden shift to contactless-
everything due to the pandemic only served to strengthen this new
inclination.
What measures have you taken to adapt to the

new payments preferences of your consumers?
In response to these new preferences, TIDAL has taken great care
in making sure we offer as many relevant and prominent payment
methods as possible in as many regions as possible. We continue
to expand these offerings as new ones emerge and as we continue
to expand our global footprint as a company.
Wargaming.net
What measures you have taken to adapt to the new
Elena Emelyanova payments’ preferences of your consumers?
The adaptation of payment preferences is a regular activity that
Senior Payments and Fraud
Manager every merchant should keep in practice. With flexible adaption to
the changes in external environment, here are the top 4 measures

Wargaming.net
we’ve been taking and move forward with:
Talk to your customer: When you’re looking to get a better under
standing of your customer’s needs, especially relating to a specific
market or payment method group, questionnaires and feedback are
of great help.
In order to adapt to the customers’ needs, 4 major actions must Be friends with your Billing Customer Support team: Billing CS
be undertaken: communication with the customer, strong colla team is the first to know about any request, bug, or inconvenience
boration with billing customer support, knowledge sharing, and in the payment flow, thus close collaboration between departments
checkout optimisation – insights from Wargaming.net is extremely important.
What changes have you noticed in terms of the Listen to your industry colleagues: Although live networking has
way your consumers pay? recently moved online, virtual industry conferences, online webinars,
We see a significant shift in the mix of payment methods in all the and roundtables are in high demand and add significant value to
regions where we operate, with buyers choosing simplicity and payments experts’ knowledge.
convenience. Any feature that simplifies shopping online today
is very quickly adopted – less friction and security are key. It has Improve the checkout page UI/UX: Improve UI of the checkout
been my opinion that these two things don’t sync up when thinking page, a/b test variations of layouts, remove any extra steps if possible.
about e-payments in the gaming sector. The formula was simple: Put the most preferred methods of your customers at the top.
security steps add friction to the payment flow, decreasing con
version. However, that has changed too. Entertainment still attracts How do you see the future of payments driven by
people despite its complex externalities. Moreover, consumers Gen Z and Millennials?
are becoming more educated about online payments and loyal The future of payments overall will rather be driven by Generation Alpha
towards extra friction as a result of security. However, thanks to – those who have just learned walking or barely speak, but already
new regulation and technology, the payment flow can now be have a decent experience with modern e-gadgets and will never know
frictionless and secure. We did not see a huge drop in conversion a life without smartphones. Cash will not be an option for them since
rates due to the SCA, as we had anticipated (although the impact their views on money and how they shop will differ from Gen Z and
is still very visible). Buyers are ready to accept extra friction priori Millennials. Our current average player profile shows that Millennials
tising their data and payment methods’ security. The main drivers are still prevailing, although it varies from region to region, and we
of the change in the payment methods mix in our case are Asian may see Gen Z stepping up. Although both generations are young, their
and European markets where cash methods are being replaced online payment habits differ. Gen Z is more open to new payment
by online payments, specifically card payments, QR codes, and technologies, as we have seen in the wake of the COVID-19 pande
online banking. North American and CIS markets, which are known mic, for example, in Europe and Asia, where we have a big audience
for their high penetration of cash/ATMs and mobile payments of this generation. They do care about the security of their funds
(SMS/DCB) show more modest changes in payment behaviour. even more than about their customer experience, that’s why extra
friction due to SCA is not killing our conversion today as expected.
Wayfair
what became popular in Scandinavian countries only a few years ago
Attila Doğan has now become a key component of our payment method selection
in all markets.
Head of Product, Global
Payments & Fraud
What measures have you taken to adapt to the
Wayfair
new payment preferences of your consumers?
At Wayfair, we are focused on creating the best possible shopping
experience for home, and that includes making payments seamless.
A lot of work has gone into building our proprietary payment orche
stration layer for card payments but as for the earlier reference on
the growing adoption of BNPL products, we offer at least one financing
Buy Now, Pay Later products are here to stay and mobile pay option in each of our markets – in most countries even more. Back in
ment options continue to take market share. A best-in-class September 2020, Wayfair announced a long-term partnership to provide
experience relies on these two elements – insights from Wayfair a new private label Wayfair Credit Card and co-brand Wayfair Mastercard
which enables us to reward our loyal customers with more added perks
What changes have you noticed in terms of the and benefits. The payment methods we currently offer to our customers
way your consumers pay? at Wayfair reflect the trends and preferences we are observing and
There are probably a few recent events and ongoing trends that are measuring, and we’ll continue to explore opportunities to offer a best-
impacting the way consumers pay today. Consumer behaviour in in-class experience for our customers as mobile payment options
both North America and Europe has undeniably changed as a result continue to take market share.
of the pandemic. Prolonged periods of lockdown in the physical
world have accelerated trends of consumers to shop online and we How do you see the future of payments driven by
are noticing a new demographic that previously showed reluctance to Gen Z and Millennials?
ecommerce. What is really interesting from the Wayfair point of view The growing interest and usage in BNPL products can probably be
is that even with restrictions easing and the economy opening back up, attributed to a large extent to Gen Z and Millennials. Many Millennials
those new consumers continue shopping online and we expect this do not own a credit card and shy away from credit so they see BNPL
trend to continue. as an alternative. There is a clear value proposition by offering variable
financing terms (many without added interest), there is the convenience
Another significant event has been the enforcement of Strong Cus part through easy access, and they are digital-first. I would not consider
tomer Authentication (SCA) in Europe. Outside of North America, BNPL as payment options that take share of the existing methods, but
Wayfair operates in Germany and the UK and as part of PSD2, rather as options that introduce online shopping to a whole new demo
Germany started enforcing SCA earlier this year, which has led to graphic – we see those as incremental and very much welcome this
some shoppers choosing alternative payment options. While I would trend.
expect SCA to mature over time, either by consumers feeling more
comfortable with it, or by issuers improving their UX or new concepts A lot is currently being written about cryptocurrencies and, although they
such as delegated authentication becoming an alternative, at this are intellectually challenging, we just have not seen customers ask for
point, consumers are choosing alternative payment methods where them nor do I personally see a particular value add for online shopping.
the added friction of SCA is preventing a seamless buying experience When crypto matures into an accepted form of payment then Gen
on cards. Finally, on general trends, we do see an increased demand Z and Millennials are likely to be the ones driving this trend.
for Buy Now, Pay Later (BNPL) products. BNPL is here to stay and
Payment Methods 101
Payment Instruments and Payment
Methods 101
Payment Instruments
Introduction
Online payments could be described as the way shoppers can choose to pay for their online purchases and where the payment method itself is
selected online. ‘Online’ refers only to the condition that the selection of the payment method is made online, e.g. in merchant’s online shop or
within the app. A transfer of funds is not required to be initiated online or to occur online. One should take into consideration that not every consumer
prefers to pay online and in real-time, or even has the option to do so, since globally, 2 billion people are unbanked, meaning they do not
have access to checking, savings or mobile money provider accounts, neither do they have access to financial products like insurance, loans
or mortgages, no protection for their money from theft or loss.
Online payment methods refer to the way shoppers can pay for their purchases over the Internet. An online payment method is presented at the
checkout or payment page of the merchant and should have a clear recognition by the shopper through means of a well-known logo (e.g. Mastercard,
Visa, PayPal, iDEAL, Trustly, Klarna) or common all-purpose words like ‘credit cards’, ‘bank transfer’ or ‘payment-on-delivery’. Online payment
methods rely on six ‘meta’ payment instruments:
• card payments;
• Account-to-Account payments (bank transfer payments);
• direct debit payments;
• cash payments;
• cryptocurrency payments;
• direct carrier payments.
Normally, online payment methods refer to online payment method brands (Mastercard, Bitcoin, Boleto, Bancontact) or directly to one of the
payment instruments (e.g. ‘bank transfer’). In this report we draw a clear line between the six payment instruments, the actual tools for a transaction,
and payment methods, and the ways in which these tools are put to use. Each of the six payment instruments has its own local, regional, global
or vertical payment ecosystem. Ecosystems are represented by a specific payment ‘scheme’ which can be described as the institution that
sets the governing rules and technical standards for the execution of payment transactions using one of the underlying payment instruments.
1. Card payments
Credit cards
Credit cards are issued to cardholders after which a revolving account is created by the issuer, granting a line of credit to the cardholder, from which
the cardholder can borrow money for payment to a merchant. Credit card balances are usually revolving, whereby part of the balance needs to
be paid (with interest and/or charges) on a 30-day basis, until the full balance is paid.
For credit cards we distinguish two different types of schemes. The three-corner model (closed and exclusive scheme, e.g. AMEX, Diners Club)
and the four-corner model (open and inclusive scheme, e.g. Mastercard, Visa).
A three-corner scheme model consists of three parties whereby the issuer (having the relationship with the cardholder) and the acquirer (having
the relationship with the merchant) is the same entity. This means that there is no need for any charges between the issuer and the acquirer.
These schemes could be seen as ‘premium’ card schemes as they tend to have strong cardholder focus and to provide additional privileges
for cardholders. Merchants are often charged a relatively high merchant service charge. Examples of this setup are Diners Club, Discover Card,
American Express. ➔
120 Payment Methods Report 2021 | Payment Methods 101

Methods 101
In a four-corner scheme model the issuer, who has the relationship with the cardholder, and the acquirer, who has the relationship with the
merchant, are two different entities. The four parties consist of the consumer, the merchant, the issuer, and the acquirer. These four-party
schemes are referred to as ‘open schemes’ as they allow banks and other financial institutions to join, to start issuing their cards and/or to
acquire merchants for card acceptance. The four-party model is known for its interchange fee revenue model. The interchange fee is a fee – fixed
or a percentage of the transaction – that is paid from the acquirer to the applicable issuer. The interchange fee represents a major share in the
total merchant service charge. Examples of this setup are: Mastercard, Visa, UnionPay, JCB, and RuPay (India).
Debit cards
Debit cards are directly linked to the checking account of the buyer. Several providers also offer the option of using the debit card online, via
checkout services connected to the card provider. In these cases, 3DS protocol is used for authentication.
Prepaid cards
Two types of prepaid cards that exist are: open-loop and closed-loop. Open-loop cards run on card networks such as Mastercard or Visa, and
can be used at any location that accepts card payments from that particular scheme. Closed-loop cards generally do not run on card networks,
and can only be used at specific locations. Examples of closed-loop cards include gift cards and public transportation transit cards.
2. Account-to-Account payments (bank transfer payments)

An online bank transfer, or Account-to-Account payment, is simply the movement of funds from one bank account to another. The mass
adoption of real-time payment systems around the globe has accelerated the usage of this instrument that rides on the strength of the banking
payments rails.
3. Direct debit
We will enclose in this report a description of the European SEPA Direct Debit (SDD) Core scheme that like any other direct debit scheme,
is based on the following concept: ‘I request money from someone else, with their prior approval, and credit it to myself’. The payer and the
biller must each hold an account with a payment service provider (PSP) located within SEPA. The accounts may be held in euro or in any
other SEPA currency; however, the transfer of funds (money) between the payer’s bank and the biller’s bank always takes place in the euro
currency. The SDD Core scheme allows a biller to collect funds from a payer’s account, provided that a signed mandate has been granted by
the payer to the biller. A mandate is signed by the payer to authorise the biller to collect a payment and to instruct the payer’s bank to pay the
agreed collections. Payers are entitled to instruct their banks not to accept any SDD collections on their accounts. The mandate expires 36
months after the last initiated collection. The signed mandate must be stored by the biller as long as the mandate is valid and for a minimum
of 14 months after the last collection. The mandate can be issued in paper or electronic formats.
4. Cryptocurrency
Cryptocurrency is a digital currency in which the regulation of the amount of currency units and the verification of transactions of these units
are done through cryptographic techniques. Cryptography is generally used to secure the transactions, and also to control the creation of
new currencies or coins. The first cryptocurrency to be developed was Bitcoin in 2009. Nowadays, there are hundreds of other cryptos, often
referred to as Altcoins, although Bitcoin is the largest cryptocurrency in both market capitalisation, volume, acceptance, and notoriety.
Bitcoin allows people to pseudo-anonymously buy goods and services over the Internet. All transactions are publicly visible, but the account
numbers are anonymised, and are not in someone’s name. ➔

Methods 101
5. Cash
Globally, 31% of all people worldwide are unbanked without access to banking products or debit/credit cards. Therefore, cash payments are
still a relevant payment instrument for payment methods developed to cater the needs of these groups.
6. Direct carrier billing

Direct carrier billing can be defined as ‘making a payment for goods or services which is charged to the customer’s mobile phone account,
either to the monthly bill (for customers with a contract) or as a debit from prepaid credit’. This payment instrument enables merchants to
monetise consumers who do not own a debit or credit card, such as the unbanked (e.g. consumers who do not have access to banks or
credit unions), underbanked (e.g. consumers either having a checking or savings account, but also relying on alternative financial services)
and younger demographics.
Payment Methods
As mentioned before, online payment methods refer to the ways shoppers can pay for their purchases over the Internet. There is an endless
number of payment methods to match all contexts (pay in advance, pay later, and payment and delivery conducted at the same time).
A payment method can stand in a one-to-one relationship with an instrument, as with credit cards, but it can also incorporate several payment
instruments in one method, as with e-wallets (it can be topped up by debit/credit card or bank transfer payments).
We have identified ten different payment categories:
1. Credit card 6. Direct debit
2. Debit card 7. Payment on invoice – Payment after delivery –
Instalments – Buy Now, Pay Later
3. Prepaid card 8. Cash
4. E-wallet 9. Direct carrier billing
5. Account-to-Account payments 10. Cryptocurrency
(bank transfer payments)
Going in, we will elaborate on these ten payment method categories consisting of both card-based payment methods and non-card payment
methods. ➔

Methods 101
Credit cards
General description Credit cards are issued by banks or financial services companies and allow cardholders to
borrow funds that they can use to make payments for goods and services to merchants.
Market reach Credit cards are widely used internationally as a common payment method for
ecommerce and in-store purchases. Globally, they represent the second most popular
payment method of 2020 after e-wallets. In that time period, they have accounted for
22.8% of ecommerce payments and 22.4% of in-store payments.
However, there has been a gradual decline in credit card usage internationally, as
e-wallets (more convenient), Account-to-Account payments (cost, convenience, and
security) gain more ground. In the wake of this, loyalty cards have taken large strides
towards growth. Loyalty rewards and cash back are an important factor, especially in
the US, for maintaining credit cards as one’s preferred payment method. Other benefits
are the relative ease of access and ease of use both online and offline, and shopper
protection offered by credit card companies.
Payment instrument Card
Payment guarantee In the case of fraudulent transactions made with credit cards, the consumer is typically
not liable for the lost amounts. In the US, the liability is limited to USD 50, but often
incurs no cost at all for the cardholder. Furthermore, most modern credit cards now offer
‘zero liability’ protection, meaning cardholders are not responsible for any fraudulent
charges at all.
With credit cards, when a fraudulent transaction is made, the consumer’s funds are not
affected. The available credit may temporarily drop after an unauthorised transaction,
however, the cardholder is typically not impacted in these situations.
Chargebacks can be filed by cardholders in cases where the merchant has ceased
trading, the purchased goods have been damaged, the goods do not conform to the
presented description, or when the goods do not arrive at all. There is typically a time limit
of 120 day for filing chargebacks claims, which usually starts from the day the consumer
becomes aware of an issue.
Brands Mastercard, Visa, JCB, Discover & Diners Club, American Express, China Union Pay,
RuPay (India), Elo (Brazil)

Methods 101
Debit cards
General description Debit cards are payment cards linked directly to a consumer’s bank account. The top distinction
between debit and credit cards is that, with the former payment method, funds can be drawn
directly from an account, while the credit card is used to borrow funds for making purchases.
Market reach Debit cards display a similar acceptance status to that of credit cards. In 2020, they ranked
as the third most popular payment methods, accounting for 22.3% of in-store transactions
and 12.3% of ecommerce transactions.
Payment instrument Card
Payment guarantee A debit card offers less guaranteed fraud protection than a credit card. In the US debit card
fraud protection falls under the Electronic Funds Transfer Act (EFTA), which is very different.
This may still cover consumers, but the guaranteed coverage is conditional. Whether or not
it protects the buyer depends on when the card is reported lost.
The cardholders are not liable for any fraudulent transactions if they inform the bank that the
card was stolen or compromised before someone uses it. While credit cards have a maximum
fraud liability of USD 50, the liability cap only lasts for two days in the case of debit cards.
After two days pass, the liability jumps to USD 500. If 60 days pass, the liability is unlimited,
meaning that any funds lost by the cardholder will not be reimbursed.
In the cases of debit card fraud, the effects of unauthorised transactions are felt immediately,
as criminals have the ability to completely drain the consumer’s bank account before the
unauthorised purchases are detected.
Brands Visa Debit, Debit Mastercard, Carte Bancaire (France) Maestro, Dankort (Denmark), V PAY card,
PostFinance Card, Interac debit cards, Bancontact (Belgium)
Prepaid cards
General description Similarly to credit and debit cards, prepaid cards allow cardholders to make purchases or
withdraw cash. The main distinction between prepaid and the other types of cards is the fact
that they need to be loaded up with funds before transactions can be made – the balance
then acting as the spending limit. Unlike debit cards, which are linked to a checking account,
prepaid cards do not require the cardholder to have a bank account, allowing unbanked
consumers to access the online marketplace.

Methods 101
Market reach The MENA region shows the most significant usage of this payment methods; prepaid card
transactions accounting for 4% of ecommerce payments and 6.2% of in-store payments
in 2020. This is followed by North America, where 3.9% of in-store transactions have been
made with prepaid cards in the same period. It is also worth mentioning that this payment
method has registered a steady growth in Italy over the past years, and the rise in popularity
only accentuated during the pandemic, with a total of 25 million prepaid cards being issued
in the country.
Payment instrument Cash or card
Payment guarantee When it comes to prepaid cards, there’s no legal entitlement to protection; it’s solely at the
discretion of the issuer.
Brands Netspend, paysafecard, NeoSurf, Cashu, Aplauz, Bluebird, Movo, Pockit, Kaiku, Brinks Money,
PostePay
E-wallets
General description An e-wallet is a software-based tool that allows users to store payment information and
perform transactions. It can store credentials for payment methods such as debit cards, credit
cards, and alternative payment methods. In addition, some e-wallets can be used to store
loyalty card information and digital coupons. E-wallets can take the form of smartphone apps,
allowing users to make mobile payments via NFC, QR codes, or SMS. They can provide the
means for a faster and more convenient checkout experience, as users do not have to key
in their payment details when making purchases. E-wallets can be used both online and in
physical stores. Furthermore, they can also be used to manage personal finances, generally
providing features such as peer-to-peer money transfers and expenditure tracking.
Market reach E-wallets are currently the most popular payment method for ecommerce and in-store
purchases globally. Notably, the APAC region leads in this category: 60.2% of ecommerce
payments and 40.2% of in-store payments have been made with e-wallets in 2020.
Payment instrument Multiple payment instruments can be used to top up the e-wallet, depending on the e-wallet
provider: card, direct debit, bank transfer.
Payment guarantee The chargeback risk typically depends on the payment instrument used to top up the e-wallet.
Brands Alipay, Due, Google Pay, Samsung Pay, Apple Pay, PayPal, Venmo, Paytm, MobiKwik, Amazon
Pay, Skrill, WeChat Pay, MobilePay (Denmark and Finland), Vipps (Norway), GoPay (Indonesia)

Methods 101
Account-to-Account payments (bank transfer payments)
General description Account-to-Account (A2A) payments involve the transfer of funds directly from one bank
account to another, without the intervention of an intermediary. They can provide the means
to lower the cost of transactions as fewer parties are involved in the process. This payment
method can be used by consumers to make transactions with a business, but they can
also take the form of peer-to-peer (P2P) payments, where funds are transferred between
individuals.
Market reach PSD2 and Instant Payments are accelerating innovation around A2A payments in Europe.
A2A transfers in Europe account for around 13% of checkouts. In the Netherlands, Finland,
Sweden, and the Baltics A2A payments are the dominated payment method.
In India, UPI (launched in 2016) has seen success domestically. UPI has been developed by
the National Payments Corporation of India (NCPI) and is India’s real-time payments system.
The interface, regulated by the Reserve Bank of India facilitates inter-bank transactions,
connecting multiple bank accounts to a single mobile application, which allows users to
transfer money and make payments instantly, 24/7. Users can link their bank accounts to
multiple peer-to-peer (P2P) payment apps, such as Paytm, Google Pay, PhonePe, MobiKwik,
and BHIM (NCPI’s P2P app), among others.
The international tech giants Google, Amazon, Alibaba, and Facebook have all taken great
interest in UPI and benefited from its design. Google has successfully used UPI to shift
ecommerce payments in India from card-based to account-based. Their success in India has
led to Google directly encouraging the United States’ Fed to adopt a similar approach when
implementing the next generation of payments infrastructure in the US.
In Brazil, instant payments (PIX) drive innovation and the growth of A2A payments.
In the US, the market share is currently 6%. In 2020, the US Federal Reserve unveiled new
details about its FedNow Service – a real-time payments platform that would enable financial
institutions in the US to clear and settle transactions virtually in real time. ACI Worldwide’s
recent ‘Prime Time for Real-Time’ report projects that, with two schemes live (Zelle and TCH)
and FedNow launching by 2023, real-time payment transactions in the US will increase six-
fold by 2025. FedNow might follow in UPI’s footsteps in bringing innovative new payments
use cases to US consumers.
Payment instrument A2A payments rely on bank transfers.
Payment guarantee Successful A2A bank transfers cannot be reversed. After the bank receives the payment,
the buyer cannot reverse the transfer. The merchant is not faced with a chargeback risk.
Also, Account-to-Account payments come at a lower transaction fees than credit cards.

Methods 101
Brands Multi-bank schemes enable A2A transfers between participating banks and retailers. The seller
or PSP uses a single connection to accept payments from participating financial institutions.
Brands: iDEAL (the Netherlands), Swish (Sweden), GiroPay (Germany), BankAxess (Norway),
BLIK (Poland), PIX (Brazil)
Third-party companies can also provide A2A payments. They sit in between the network and
the consumers, and require the banking details of the customer in order to initiate payments
to merchants. Brands: Trustly, PayWithMyBank, Sofort Banking Zimpler, kevin (startup in
Lithuania), PayDirect (TrueLayer), Paytrail (Finland), MOLPay (Malaysia and Thailand), Instant
Bank Pay (UK)
Direct debit
General description A direct debit is a payment method in which cardholders pre-authorise their bank to withdraw
money from their accounts. Payments can be set up one-time, recurrent, or a mix of both.
Market reach Of all regions, direct debit is most popular in Europe, where it earned 4% of the market
share. Globally, it was used for 1.2% of ecommerce payments in 2020, 1.8% in Middle East
and Africa, 1.3% in Latin America, 0.8% in North America, and only 0.3% of Asia-Pacific
ecommerce payments. It has seen the strongest adoption rates in Germany, the Netherlands,
France, Spain, and Belgium.
Payment instrument Direct debit
Payment guarantee The SDD Core Scheme grants payers a ‘no-questions-asked’ refund during the eight weeks
following the debiting of a payer’s account. Therefore, during this time, any funds collected
by SDD Core Scheme will be credited back to the payer’s account upon request. Consumers
may demand a chargeback (claiming it was an unauthorised transaction) for up to 13 months
after the settlement. Solution providers offering SDD-based payment methods can take over
the risk of default payments and chargebacks.
Brands (enablers) SEPA Direct Debit, ACH Direct Debit, BACS Direct Debit, RatePay, SlimPay (enabler),
GoCardless (enabler), NuaPay (enabler), Stripe (enabler), SmartDebit (enabler), AccessPay
(enabler)

Methods 101
BNPL (payment after delivery; instalment)
General description Invoice/instalment/Buy Now, Pay Later (BNPL) – can refer to two types of invoice payments:
open invoice (payment after delivery) and instalment payments (a series of payments that a
buyer makes instead of a lump sum to compensate the seller).
At present, there is an uplift in the usage of BNPL solutions for shopping, mostly driven by
trends such as Gen Z and Millennials looking for convenient budgeting tools and the lack of
interest fees in many cases. The COVID-19 pandemic has also played a crucial role in pushing
this new shopping habit further for the obvious reason: it is financially convenient.
Market reach The pay by invoice method has been and still is widespread in the DACH region, where
merchants enabled consumers to first choose and try the goods from the catalogues – and
pay for them later. According to the latest online payments report of the German EHI Retail
Institute, 30,4% of 2020 ecommerce sales were paid for after delivery (paid on invoice).
Apart from Europe, Australia, and the US, it will most likely become more popular in regions
such as the Middle East, South-East Asia, and Africa, where new players arise currently.
As BNPL continues to earn market share, it is expected to double, going from a global use
for ecommerce payments of 2.1% in 2020 to 4.2% by 2024. The regional overview of BNPL
use for ecommerce payments in 2020 goes as follows: 7.4% of the market share in Europe,
1.6% in North America, and 0.6% in Asia-Pacific.
Traditionally, this payment method was offered primarily in retail, but we currently see this
method becoming more adopted in travel as well.
Payment instrument Card, direct debit, bank transfer
Payment guarantee Solution providers offering BNPL often take over the risk of collecting the payment. They
guarantee payment to the merchant, either by some sort of insurance or by taking over
the invoicing process. To do this, solution providers perform their own assessment of the
shoppers’ risk profile and accept or decline the order online.
Brands AfterPay (Arvato), Afterpay (Australia), Klarna, Affirm, Uplift, Sezzle, Splitit, Zip, PayPal, Fly
Now Pay Later (UK and US), Alma (France), 3x 4x Oney (France), PayBright (Canada). Some
companies offer white label solutions: Ratepay (DACH region), Jifity, Limapay.

Methods 101
Cash
General description We distinguish two commonly used methods of cash payments: cash-on-delivery and kiosk
payments. Cash-on-delivery (COD) is a payment method in which ordered goods are carried
to the buyer’s place but are handed over only upon full payment.
Kiosk payments are popular in India, LATAM, Russia, Indonesia, and Japan. Shoppers can
choose this cash payment method and print a voucher or receive a reference number. With the
voucher or reference number, they can pay for the item at a kiosk, a cash register of a
convenience store, or a bank branch. The kiosk notifies the merchant that the payment has
been made, credits the merchants account, and confirms to the merchant to ship the item.
Market reach Globally, some countries are reducing their use of cash in favour of other payment methods
(e.g. the Nordics, the UK), while others still rely heavily on cash. In Brazil, for instance, the most
popular cash-based payment method is Boleto Bancário, which is regulated by the Brazilian
Federation of Banks, issued by banks at the request of merchants, and payable at over one
million locations nationwide. Nonetheless, the most visible trend in this space is the worldwide
decline of cash-based payment methods in favour of BNPL and e-wallets.
Cash-on-delivery was the customers’ choice worldwide for 3.3% of ecommerce payments
in 2020. At a regional level, cash-on-delivery registered a market share of 16.4% in Middle
East and Africa, 5.5% in Latin America, 4.1% in Asia-Pacific, 3.3% in Europe, and only 0.7%
in North America.
Payment instrument Cash
Payment guarantee After the payment has been made and the goods are received, the buyer cannot reverse the
payment via the carrier.
Brands Boleto (Brazil), QIWI (Russia), Oxxo (Mexico), PayNearMe (the US), Kudo (Indonesia), Aplauz
(Switzerland), CashtoCode (Germany), Barzahlen Viacash (Germany, Austria), 7-Eleven
(Malaysia, Japan), Pay-easy (Japan)

Methods 101
Direct carrier billing
General description Direct carrier billing is a payment method that allows users to make purchases by charging
payments to their mobile phone carrier bill, enabling merchants to monetise unbanked and
underbanked shoppers.
Market reach Presently, online purchases of digital content (games, music, video, e-books, and ringtones),
charity donations, TV voting, and competitions are the primary use cases for direct carrier
billing.
Research company Omdia forecasts that the total transaction revenue enabled by carrier
billing will expand at a compound annual growth rate (CAGR) of 6.8%, to be worth over USD
77 billion by 2025, up from USD 47 billion in 2020.
Payment instrument Direct carrier billing
Payment guarantee Payments cannot be reversed by the buyer. When a buyer fails to pay his telephone bill, it is
up to the telecom operator to collect the money.
Brands Domoco Digital, Boku, Bango, Fortumo, Dimoco

Methods 101
Cryptocurrency
General description There are two ways in which one can make a cryptocurrency payment. Firstly, in the form of
a transaction from one crypto wallet to another – these transactions are made exclusively in
a cryptocurrency and mostly happen B2B or C2C. Secondly, by making a transaction in a
cryptocurrency to a crypto wallet, but which can be transferred into a payments account that
uses an institutional currency (e.g. EUR or USD). These transactions happen mostly B2C.
Market reach Cryptocurrencies are most commonly used as an investment asset rather than a payment
method. Consumers’ interest in buying and spending cryptocurrency continues to rise,
fuelled by the fear of missing out on a potential investment opportunity. Most of the EU
countries are allowing residents to use Bitcoin while paying, and the verticals that typically
accept cryptocurrencies are gaming, adult entertainment, FOREX, electronics and hardware,
and jewellery and precious metals. Additionally, according to a recent research by PYMNTS
(commissioned by BitPay), the typical cryptocurrency holders are young, male, Millennials.
In February 2021, Elon Musk announced that Tesla expects to begin accepting Bitcoin as
a form of payment for their products sometime in the near future, and the price of Bitcoin
went up substantially. However, in May, he said that Tesla is no longer accepting Bitcoin as
a payment method for purchases of its electric vehicles, owing to the excessive amount
of carbon-based energy it uses. Bitcoin plunged following his comments, registering high
fluctuations over a short period and indicating how volatile this payment methods still is.
Payment instrument Cryptocurrency
Payment guarantee Cryptocurrencies do not allow payments to be reversed because there is no third party between
the sender and receiver of a payment.
Brands Bitcoin (BTC), Ethereum (Ether), Ripple (XRP), Cardano (Ada), Dash, Tether, Stellar (enabler),
Chainlink (enabler), Uniswap (enabler), PumaPay (enabler), Coinify (enabler), BitPay (enabler)
The facts and figures featured in the ‘Market reach’ section have been extracted from ‘The global payments report 2021’ by Worldpay.

Methods 101
Sources:
Credit cards https://www.investopedia.com/terms/c/creditcard.asp
https://www.paiementor.com/the-three-corner-model-in-card-payments/
https://www.paiementor.com/the-four-corner-model-for-card-payments/
https://www.investopedia.com/ask/answers/09/stolen-credit-card.asp
https://en.wikipedia.org/wiki/Credit_card_fraud
https://ec.europa.eu/info/sites/default/files/chargeback_report_revised.pdf
https://www.theglobaleconomy.com/rankings/people_with_credit_cards/
Debit cards https://www.investopedia.com/terms/d/debitcard.asp
https://www.experian.com/blogs/ask-experian/are-credit-cards-safer-than-debit-cards/
https://www.finder.com/refund-fraudulent-debit-card
https://en.wikipedia.org/wiki/Debit_card
https://www.thebalance.com/difference-between-a-credit-card-and-a-debit-card-2385972
Prepaid cards https://www.investopedia.com/ask/answers/042315/how-do-prepaid-debit-cards-work.asp
https://nuvei.com/en-emea/articles/why-prepaid-what-you-need-to-know-about-prepaid-cards/
https://chargebacks911.com/prepaid-card-chargeback/
https://www.chargebackgurus.com/blog/prepaid-card-fraud
https://www.creditcards.com/prepaid/
https://www.businesswire.com/news/home/20201229005352/en/18.47-Trillion-Prepaid-Card-Markets---
Global-Opportunity-Analysis-and-Industry-Forecast-2020---2030---ResearchAndMarkets.com
https://www.statista.com/statistics/1055589/prepaid-card-usage-by-country/
https://edgardunn.com/wp-content/uploads/2018/10/Global-Potential-for-Prepaid-Cards-SEPT-2018.pdf
E-wallets https://www.investopedia.com/terms/d/digital-wallet.asp
https://www.investopedia.com/terms/m/mobile-payment.asp
https://en.wikipedia.org/wiki/Digital_wallet
https://economictimes.indiatimes.com/definition/e-wallets
https://agilie.com/en/blog/digital-wallets-types-ideas-and-future-of-such-products
https://due.com/blog/the-11-best-digital-wallets-of-2020/
https://due.com/blog/top-101-digital-wallet-companies/
A2A https://thepaypers.com/expert-opinion/is-this-the-end-of-the-card-payment--1244912
https://ithandbook.ffiec.gov/it-booklets/retail-payment-systems/payment-instruments,-clearing,-and-
settlement/card-based-electronic-payments/online-person-to-person-(p2p),-account-to-account-(a2a)-
payments-and-electronic-cash.aspx
https://vibepay.com/blog/a2a-chargebacks-fraud/

Company Profiles
Payment Methods
Company AfterPay
AfterPay is committed to helping consumers separate moment of purchase and payment.
We guarantee trust and security: we let consumers pay in pace with life. Our Pay After
Delivery product comes with five payment options: 14-Day Invoice, Campaign Invoice,
Consolidated Invoice, Fixed Instalments, and AfterPay FLEX.
Website www.afterpay.nl
Head office The Netherlands
How the payment method works More information available upon request
Target market Merchants (fashion, sports, home décor, home improvement (DYI), beauty pharmaceuticals,
pet accessories and food, electronics, parking, public transportation, travel, other retail)
Contact details More information available upon request
Operational area Central and Northern Europe – Germany, The Netherlands, Sweden, Belgium, Austria,
Switzerland, Norway, Finland, and Denmark
Year founded 2010
Investors More information available upon request
License type More information available upon request
Reach Over 100 million consumers across the nine markets.
Acceptance More information available upon request
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 Direct integration or integration via partners (PSPs or ecommerce platforms)
(non technical)
Company motto Experience first, pay later
Payment type
Buy Now, Pay Later/Instalments/ All
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 payment
instructions to the consumer. They can pay via the consumer portal/APP or via classical
bank transfer. Consumers also have the flexibility to pause a payment or convert it to an
instalment plan.
- Payment instruments used No card needed to start instalment plan. Independent risk scoring.
- Credit check Yes
- Credit application Yes, using local standards
- Late fees Dependent on 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 partners (PSPs or ecommerce platforms)
View company profile in online database
135 PAYMENT METHODS REPORT 2021 | COMPANY PROFILES

Chargeback/Buyer protection We don’t enforce a strict buyer protection policy. Instead we act as a moderator and ensure
a good experience for all parties involved.
Automated and instant refund More information available upon request
Reconciliation With each settlement, a reconcillation 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)/ AfterPay takes over the full risk of a transaction – both from a credit risk but also from a
Risk management fraud risk. 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.
Future developments More information available upon request
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
Transaction volume
Number of transactions (per year) More information available upon request
Transactions value More information available upon request

Flexible payment options
drive business growth
Your customers’ shopping

experience comes first.
Always.
Because boosting your sales starts with
understanding what your customers truly want.
Recent AfterPay Insights research shows that

more than 50% of consumers in Germany and
the Netherlands have a BNPL need. AfterPay
is prepared to offer your customers the flexible
payment options they demand.
Thanks to a simple integration with all major

platforms and service providers, AfterPay is more
than ready to add even more ease, flexibility and
reassurance to shopping with your brand.
Buy now, pay later.

www.afterpay.nl
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
Operational area Switzerland, expanding to Europe
Year founded 2020
Investors ICM/Alectus
License type EMI
Reach Switzerland, expanding to Europe
Market share More information available upon request
Implementation requirements Directly through our API
(non technical)
Company motto Concious Spending Made Easy
Payment type
Prepaid Cash, debit, or credit card, online banking e-payment/Account-to-Account
Channels
Online Yes
POS/In-store No
Omnichannel Yes
Services
Settlement currencies CHF/EUR
Processing currencies CHF
Currency available for customers CHF
Implementation requirements Direct API
Chargeback/Buyer protection No
Automated and instant refund Yes, not instant
Reconciliation Digital files
Fraud prevention (measures)/ No
Risk management
Pricing/Fees structure Per transaction fee
Future developments App, e-wallet

Technology
Integration technology API integration
Integration support Yes
Transaction volume

PAY IN-STORE, BUY ONLINE
Conscious
Spending
Made Easy
Company Atome
Atome is a leading Buy Now, Pay Later platform in Asia, partnering retailers to increase
conversions and grow average orders and customer segments. It currently partners over
5,000 retailers in nine markets. For consumers, Atome offers choice, convenience, and
flexibility in how they choose to shop and pay.
Website https://www.atome.sg/
Head office Singapore
How the payment method works 1. Customer checks out with the Atome mobile app/payment method on the merchant’s
website or by scanning a QR code at the in-store checkout counter at 0% interest, no
admin fee, and splits the shopping bill into three easy monthly payments.
2. Merchant will receive full transaction amount (minus MDR – Merchant Discount Rate –
fees) within 3 working days.
Target market Global and regional online and offline retailers in the fashion, beauty, lifestyle, travel, and
health and fitness categories
PSPs
Global and regional ecommerce platforms
Potential partners and FIs such as banks
Contact details renwei.lee@atomefin.com
Operational area Singapore, Indonesia, Malaysia, Hong Kong, Taiwan, Vietnam, Philippines, Thailand, and
mainland China
Year founded 2019
Investors More information available upon request
License type License dependent on the particular market
Reach 20 million registered customers
Acceptance 5,000 online and offline retailers across Southeast Asia
Implementation requirements For consumers – local identity card, payment details, and basic information
(non technical) For merchants – registered business entity with bank account
Company motto Create a better life for consumers through greater financial access and technology
Payment type
Buy Now, Pay Later/Instalments/ Yes – Buy Now, Pay Later
Pay by invoice
- Business model 1. The customer checks out with Atome at 0% interest, no admin fee, and splits the
shopping bill into three easy monthly payments.
2. The merchant will receive the full transaction amount (minus MDR – Merchant Discount
Rate – fees) within three working days.
- Payment instruments used Credit card, debit card, local e-wallets, direct bank debit, integration with PSP platforms
- Credit check Yes
- Credit application No
- Late fees More information available upon request
- Interest rates No interest for users
Channels
Online N/A
POS/In-store N/A
Omnichannel Merchant website, mobile application, in-store POS, QR code

Services
Settlement currencies Local currencies
Processing currencies N/A
Currency available for customers More information available upon request
Implementation requirements For consumers – local identity card, payment details and basic information
For merchants – registered business entity with bank account
Chargeback/Buyer protection Yes
Automated and instant refund Refund possible through the merchant
Reconciliation Yes
Fraud prevention (measures)/ In-house eKYC credit risk profiling and assessment technology
Risk management
Pricing/Fees structure Merchant MDR fees
Future developments Scale the business to new markets in SEA, improve the merchant experience, develop tools/
features to help them grow their business better/faster, develop features to help users with
smart spending/budget features
Technology
Integration technology WooCommerce, Shopify, Opencart, WIX, Magento, PrestaShop, Shoplazza, Salesforce,
Shopline
Integration support Yes
Transaction volume

Company BLIK (Polish Payment Standard)
BLIK is a mobile payment system. It enables ecommerce payments, POS payments, ATM
cash withdrawals, and mobile P2P. BLIK has a dominant share of the mobile payments in
Poland. BLIK has won many prestigious awards, including the title of FinTech of the Year in
2019 by Cashless.pl and FinTech of the Year 2020 by Invest Cuffs.
Website www.blik.com
Head office Warsaw, Poland
How the payment method works BLIK is a payment method which enables you to pay easily and quickly in the store or over
the Internet, and you can also deposit and withdraw cash. You can also use BLIK to settle
accounts with a friend instantly, using just their phone number. You don’t need a payment
card or e-wallet to pay with BLIK. All you need is a phone with Internet access and your
bank’s app.
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 16 mln mobile banking app users in Poland
Acceptance 100% ecommerce in Poland, 65% POS, 95% ATM
Implementation requirements Polish bank account required. EU license for acquiring with notification from the Polish
(non technical) Financial Authority.
Company motto We are experts in creating modern payment solutions
Payment type
Online banking e-payments/ Account-based mobile payments
Account-to-Account payments
Channels
Online Yes
POS/In-store Yes
Omnichannel Yes – P2P, ATM, ecommerce, POS
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 Reconcilation file in xml format
Fraud prevention (measures)/ Based on the issuer side
Risk management

Pricing/Fees structure More information available upon request
Future developments Contactless payments
Technology
Integration technology API – web services
Integration support UAT – testing environmental
Transaction volume
Number of transactions (per year) 424 mln in 2020
Transactions value EUR 12,7 bln in 2020

Company DOCOMO Digital
DOCOMO Digital is the international payments business of NTT DOCOMO. We partner with
carriers, merchants, OTT services, app stores, and payment providers in both developed
and emerging markets around the world. We solve the challenges of customer acquisition
and retention, regulation, and complexity for our partners with alternative payment methods
such as direct carrier billing and digital wallets.
Website https://www.docomodigital.com/
Head office London, UK
How the payment method works Direct carrier billing allows consumers to buy digital content and services with a few clicks
and pay for those services as part of their mobile phone bills or with their pre-paid balances.
In addition to direct carrier billing, we aggregate the most locally-relevant payment methods
for our merchant partners.
Target market Merchants (gaming, entertainment, lifestyle, productivity, telecommunications, apps)
Marketplaces
PSP
Fintech
Banks
Brokers, crypto, FX
Contact details payments.marketing@docomodigital.com
+44 20 7613 6000
Operational area Global
Year founded 2009
Investors NTT DOCOMO
License type E-money license European Union
Reach 3 billion+ consumers
Market share Market leaders in direct carrier billing. Recently adjudged the Best Direct Carrier Billing
Provider for 2021 by Juniper Research.
Implementation requirements No embargo, no sanctions, KYC compliance
(non technical)
Company motto Fostering trust, simplicity, and scale in mobile payments
Payment type
Credit card Visa, Mastercard, Amex, JCB, Discover, Diners, UnionPay International
Debit card Visa, Mastercard, Amex, JCB, Discover, Diners, UnionPay International
Prepaid Cash, debit or credit card, online banking e-payment/Account-to-Account
E-wallet We support more than 300 alternative payment methods, such as e-wallets (Alipay,
BancomatPay, Doku, Grab Pay, ipara, MobiKwik, PayPal, Paysera, Paytm, Qiwi, Skrill,
TenPay, VTC Pay, WeChat Pay, YandexMoney, Zimpler etc.)

Online banking e-payments/ e.g. Affin Bank, Aktia, Ålandsbanken, Ambank (Am Online), Banamex, Banco AV Villas,
Account-to-Account payments Banco Caja Social, Banco Consorcio, Banco Corpbanca, Banco de Bogotá, Banco de
Chile/Edwards Citi, Banco de Occidente, Banco do Brasil, Banco Falabella, Banco GNB
Sudameris, Banco International, Banco Pichincha, Banco Popular, Banco Procredit,
Banco Ripley, Banco Santander, Banco Santander, Banefe, Banco Security, BancoBice,
BancoEstado, Bancolombia, Bancoomeva, Bangkok Bank, Bank Islam, BBVA (Chile), BBVA
(Columbia), BBVA Bancomer, Banorte Empresas, BCI-TBANC, Bradesco, CIMB Clicks,
Citibank, Colpatria, Corpbanca, Danske Bank (Finland), Dragonpay, eNETS, Entercash, EPS
Estonian Banks, giropay, Handelsbanken (Finland), Helm Bank, Hong Leong Bank, iDEAL,
Instant Transfer, Itau (Brazil), Itaú (Chile), Krung Thai Bank, Krungsri Bank, Latvian Banks,
Lithuanian Banks, Maybank2u, Multibanco, MyBank, MyClear FPX, Nordea (Finland), OP
Pankki (Finland), Osuuspankki (Finland), PayU, Poli, Postfinance (YellowPay), Przelewy24
(P24), PSE, RHB Bank, S-Pankki (Finland), Säästöpankki (Finland), Safetypay, Santander
Online Payment, SCB Scotiabank, Scotiabank Mexico, SOFORTbanking, SPEI, Trustly,
Trustpay, Webpay, BLIK, Klarna
Direct debit All
Buy Now, Pay Later/Instalments/ Not at this stage
Pay by invoice
Cash 7-Eleven, Boleto Bancario, Indomaret, Pago efectivo, RapiPago, Pago Fácil etc.
Direct carrier billing 3, A1, A2 Telekom, Airtel, Asiacell, Bouygues, Claro, Movistar, Metro by T-Mobile,
NTT Docomo, O2, Optus, Singtel, True Move, Turk Telekom, U mobile, Vodafone etc.
Crypto Not at this stage
Channels
Online Yes
POS/In-store Only in Japan and South Korea
Omnichannel For certain services
Services
Settlement currencies All
Processing currencies All
Currency available for customers Local currencies in over 50 countries
Implementation requirements None
Automated and instant refund Yes
Reconciliation Multiple settlement options available
Fraud prevention (measures)/ Yes
Risk management
Pricing/Fees structure For current pricing, contact payments.marketing@docomodigital.com
Future developments FX, lifecycle data analytics, single global settlement
Technology
Integration technology API
Integration support API interface with core billing infrastructure
Transactions volume
Number of transactions (per year) 50 million billing transactions processed every month in 2020
Transactions value USD 4.5 billion+ in transactions processed in 2020

NTT DOCOMO’s lineage of payments innovation
coupled with an unmatched global network of mobile
carriers to make growth through direct carrier billing
and carrier partnerships possible for digital merchants
and app stores
We solve the challenges of customer acquisition and

retention, regulation, and complexity in mobile commerce
A single Local payment Faster Global

integration methods time-to-market settlements
An NTT DOCOMO Enterprise www.docomodigital.com

Company GoCardless
GoCardless is a global leader in Account-to-Account payments – making it easy to collect
both recurring and one-off payments directly from customers’ bank accounts. We take
the pain out of getting paid for 60,000+ businesses worldwide. Each year GoCardless
processes over USD 20 billion of payments across more than 30 countries. GoCardless
is headquartered in the UK, with additional offices in Australia, France, Germany, and the
United States.
Website www.gocardless.com
Head office London, UK
How the payment method works We have built a global network for bank debit 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 with the applications businesses use everyday, such as
Xero, Quickbooks, Zuora, and Salesforce.
Our global network means merchants can collect recurring payments from their customers’
bank accounts and settle them back in their home country, with FX dealt with automatically –
making it simple for merchants of all sizes to collect international payments. Success+,
our payment intelligence product, predicts and manages payment failures. On average, it
collects 76% of payments that initially fail, providing a better payer experience.
The recent addition of our Instant Bank Pay feature, powered by Open Banking, is designed
to complement bank debit. It is a simple and convenient way to collect one-off payments –
at checkout or using a paylink – and means merchants can now manage both their recurring
and one-off payments all from a single platform.
Target market Merchants of all sizes, from small businesses to multinational corporations, across: financial
services, insurance, information technology, energy and utilities, communications and
media, health and wellbeing, consumer goods and services
Partners – billing, CRM, and accounting platforms
Contact details https://gocardless.com/contact-us/
Operational area More than 30 countries, including: the UK, the US, France, Germany, Australia, New Zealand
Year founded 2011
Investors Investors include Y Combinator, Accel, Balderton, Passion Capital, Notion Capital, Adams
Street Partners, GV (formerly Google Ventures), Salesforce, and Bain Capital Ventures.
License type Payment Services License
Reach 30+ countries and 600+ million payers. 25 million payers are currently paying via
GoCardless.
Acceptance 60,000+ merchants
Implementation requirements Bank account required
(non technical)
Company motto We take the pain out of getting paid so that businesses can focus on what they do best.
Payment type
Online banking e-payments/ Account-to-Account – instant one-off payments
Direct debit Direct debit across eight schemes: Bacs (UK), SEPA (Europe), BECS (Australia), Autogiro
(Sweden), Betalingsservice (Denmark), BECS NZ (New Zealand), PAD (Canada), ACH Debit
(US)
Channels
Online Yes
POS/In-store N/A
Omnichannel N/A

Services
Settlement currencies GBP, EUR, SEK, DKK, AUD, NZD, CAD, and USD
Processing currencies GBP, EUR, SEK, DKK, AUD, NZD, CAD, and USD
Currency available for customers GBP, EUR, SEK, DKK, AUD, NZD, CAD, and USD
Implementation requirements Bank account required
Automated and instant refund Yes
Reconciliation Yes – via partner integrations
Fraud prevention (measures)/ Yes
Risk management
Pricing/Fees structure https://gocardless.com/pricing/
Future developments Open Banking, fraud protection, payment intelligence (machine learning)
Technology
Integration technology Merchants can use our RESTful API without a library by building HTTP requests themselves,
or alternatively use one of our client libraries: Java, Python, Ruby, PHP, JavaScript, and
.NET.
Integration support 200+ partner integrations across a wide range of billing and accounting platforms; dedicated
customer portal, API reference, and solutions engineering support
Transaction volume
Number of transactions (per year) 147 million
Transactions value Over USD 20 billion

Move over
cards.
There’s a new way to

collect one-off payments.
Instant Bank Pay from GoCardless is a fast

and easy way for customers to make a one-
off account-to-account payment. Powered
by open banking, payments are confirmed
instantly, creating a smoother experience
for you and your customers.
It’s a better way to collect one-off payments,

right within the existing GoCardless platform.
So you can manage your one-off and
recurring account-to-account payments
together. Not to mention saving on those
costly credit card fees.
Find out more about Instant Bank Pay.
Check the GoCardless website for terms and conditions

Company Currence iDEAL B.V.
Currence is the brand owner of iDEAL (payments), iDIN (identification), and Incasso
machtigen (e-mandates). It draws up rules for the use of these products, certifies market
parties (banks and suppliers), after which these parties conclude a license 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.
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, and top-ups.
Contact details Mail to ideal@currence.nl
Operational area Worldwide for merchants; consumers with a Dutch bank account
Year founded 2005
Investors Currence is a private company which shares are held by the founding banks.
License type N/A
Reach 100% of the Dutch online shoppers uses iDEAL to pay
Acceptance 206,126 active merchants in 2020
Market share In Dutch ecommerce, the market share is 69%.
Implementation requirements (non Corporate bank account, Chamber of Commerce registration (at a minimum).
technical)
Company motto Provide payers the right balance in confidence and convenience, and provide payees with
reach and conversion
Payment type
Online banking e-payments/ Yes
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
Fraud prevention (measures)/ N/A
Risk management

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
Technology
Integration technology XML, HTTPS
Integration support Provided by acquirers, PSPs, various IT providers and the open source community
Transaction volume
Number of transactions (per year) 890 million (2020)
Transactions value EUR 70 billion (2020)

Company Trustly
Trustly is a global leader in Online Banking payments. We have unique transatlantic coverage,
enabling 525 million consumers banking with 6,300+ banks across Europe and the US
to pay directly from the bank account. We offer services to more than 8,100 merchants
in ecommerce, travel, financial services, and igaming. Trustly has 600 employees across
Europe, North America, and Latin America.
Website www.trustly.com
Head office Stockholm, Sweden
How the payment method works First, the consumer selects Trustly as the payment method in the checkout. The consumer
is then presented with a bank selector, without leaving the site. After selecting their bank,
the consumer is asked to verify themselves with their bank-provided authentication method,
static username, or password. Finally, the consumer chooses the account from which to pay
(checking, savings etc.).
Target market Merchants (ecommerce, travel, financial services, digital goods, subscriptions, online
gaming)
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
Acceptance 8,100 merchants
Market share N/A
Implementation requirements API integration directly with Trustly or through one of over 50 PSPs. Settlement made to
(non technical) a European bank account or your PSP. Merchants do not need a local legal entity or bank
account (e.g. a German company can accept payments from Sweden)
Company motto Fast, Simple, and Secure
Payment type
Online banking e-payments/ Yes
Direct debit Yes (Sweden)
Channels
Online Yes
POS/In-store Yes
Omnichannel Yes
Services
Settlement currencies EUR, SEK, NOK, DKK, GBP, PLN, CZK, BGN, HUF, 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 (e.g. a German company can accept payments from Sweden).
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.

Fraud prevention (measures)/ Full risk management system including: data checks, comparison checks, velocity checks,
Risk 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
Technology
Integration technology JSON API
Integration support API manual online, designated integration support, plugins for web shops and platforms,
SDK for apps
Transaction volume
Number of transactions (per year) N/A
Transactions value USD 21 billion in 2020

More growth.
Less complexity.
TRUSTLY IS A WORLD LEADER IN
ACCOUNT-TO-ACCOUNT PAYMENTS.
Unlike our competitors, we have consumer

reach of well over half a billion through
a network of 6,300+ banks. Only Trustly
can handle the entire payment journey
and remove complexities when localizing
in other markets.
Want to know more about the next

generation of payments? Go to trustly.com
Payment Service Providers
Company ACI Worldwide
ACI Worldwide powers digital payments and banking for more than 6,000 organisations
around the world. We have more than 45 years of payments expertise and customers in 95
countries. We serve 19 of the top 20 banks worldwide and more than 80,000+ merchants
directly and through payment service providers. More than 5,000 organisations use our
electronic bill payment solutions and 1,500 banks, intermediaries, and merchants prevent
fraud with our solutions.
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 intermediairies.
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
PSPs
Fintech
Banks
Brokers, crypto exhange, FX brokers
Contact details Annett Van de Bunt, Director 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
Company motto Driving Real-Time Digital Transformation
Service provider type
Payment Service Provider – Payments and fraud software solutions provider, powering electronic payments and currently
Gateway serves more than 80,000 merchants; processing more than a billion transactions annually via
our platform.
Payments orchestration – Yes
Payments-as-a-Service
Pay-out/Disbursements ACI Worldwide provides pay-out/disbursements through partners for merchants. For banking
pay-out/disbursements without partners
Financial infrastructure ACI Worldwide provides an acquirer agnostic solution
Payments infrastructure ACI Worldwide provides end-to-end payments and risk management services. ACI’s 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.
B2B payments ACI Worldwide offers ERP integration, onboarding, factoring, e-invoicing, and AP automation
to lending and KYC.
Cryptocurrency payments Bitcoin
solution

POS/mPOS ACI Worldwide offers a precertified POS solution with PAX, Oracle, and Elavon. It provides a
standard ACI POS interface for vendors to integrate to ACI. mPOS – has an iOS and Android
native mSDK – it will either run directly on an Android mPOS device or it will connect to an
mPOS device.
Channels – context
Online Yes
POS/In-store Yes
Omnichannel Yes
Payments capabilities
Hosted pages Yes
Whitelabel solution Yes
Recurring billing Yes. ACI Worldwide provides scheduled flexible instalments for merchants to setup
subscriptions and recurrring payments from a vast variety of options including monthly,
weekly, and daily.
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
Dynamic routing Yes. ACI Smart Transaction Routing, part of the ACI Secure eCommerce Solution, is a
comprehensive suite of routing solutions designed to help domestic and cross-border
merchants and merchant intermediaries improve acceptance, conversion, and payment
performance in a cost-effective way. ACI Worldwide provides a portal to manage all the
different MIDs that must be set up to manage the different routing options.
Intelligent routing/routing Yes
optimisation
ERP integration Yes
E-invoicing (automated) Yes, with ACI billpay solution for the US only
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.
Factoring Supported by our connected partners
Onboarding Yes
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 ratio PSD2/SCA For financial institutions only, available with 30 banks.
Fraud and risk management ACI Worldwide augments its fraud management solution with 3rd party partners like Arvato,
partners Neustar, Targus, TransUnion, Ekata, Lexis Nexis, Emailage, Threatmetrix.
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-currency virtual IBAN Yes. ACI Worldwide supports virtual IBAN.
Instant settlement No
Client onboarding (KYC/KYB) ACI Worldwide helps to facilitate KYC.

Clients
Main clients/references More information available upon request
Case studies For all ACI Worldwide case sutdies 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
Transaction volume 225+ billion consumer transactions each year
Transaction volume (USD/EUR) USD 14+ trillion in payments and securities transactions daily

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 Amadeus
Amadeus is a gateway that offers services to travel companies, helping them take payments
from their customers, pay suppliers, and optimise both. We apply global payments expertise
and a network of trusted partnerships integrated into our smart payment hub to provide
travel companies and their customers with a seamless payments experience.
Website amadeus.com/payments
Head office Madrid, Spain
Core solution We focus on payment solutions for travel-specific use cases. Our offer has unparalleled
reach, processing payments in 190+ countries. We offer a single entry point where travel
companies can manage all their payment processes and providers in all markets and
channels.
Target market Travel and insurance merchants
Contact details travel.payments@amadeus.com
Geographical presence North and Latin America, Europe, Middle East and Africa, Asia Pacific
Year founded 1987
Investors Publicly-listed company
Member of industry association EMVCo, IATA, HEDNA, ARC
and/or initiatives
Company motto Powering better journeys through travel payments technology
Payment Service Provider – Yes
Gateway
Payment Service Provider – Merchant processor
Merchant acquirer/Processor Acquiring services through partners
Full service commerce Yes – retail and digital
Pay-out/Disbursements Yes
Payments infrastructure Yes
B2B payments Yes
POS/mPOS Yes
Online Yes
POS/In-store Yes
Omnichannel Yes
Hosted pages Yes
Recurring billing No
Payment methods supported Yes – All major cards and 300+ AMOPs
Settlement currencies Yes – 170+
Tokenization Yes
Dynamic routing Yes
optimisation
ERP integration Yes

E-invoicing (automated) Yes
Reconciliation and reporting Yes
Factoring No
Onboarding Yes
Consolidated data and reporting Yes
dashboard
Chargeback management No
Fraud ratio PSD2/SCA No
Fraud and risk management Accertify, ACI, Cybersource
partners
FX – number of currencies Yes – 170+
available
Virtual IBAN No
Multi-currency virtual IBAN No
Current account/settlement No
account
Lending No
Client onboarding (KYC/KYB) Yes
Clients
Main clients/references More information available upon request
Case studies More information available upon request
Awards Amadeus Xchange Payment Platform (XPP) won Most Disruptive Payments Technology
Award at the Payments Awards 2020
Amadeus XPP was shortlisted for Best Merchant Payments Initiative of the Year at the
Merchant Payment Ecosystem Awards 2021
Transaction volume More information available upon request
Transaction volume (USD/EUR) More information available upon request

Building Better
Travel Payments
At Amadeus, we offer an
extensive range of global,
regional and local payment
methods that meet your
travelers’ needs, ensuring
your range of payment
options remains competitive
in your markets.
We serve every part of the

global travel ecosystem,
powering better journeys
through payments
technology.
Find out more: https://bit.ly/3jJ3NlZ

Amadeus.com/payments
© Amadeus IT Group SA
Company BoaCompra by PagSeguro
BoaCompra has over 15 years of experience in offering locally preferred payments in
the Latin American region, and is an expert at handling complex cross-border transfers,
including conversions, fees, and compliance requirements. Being part of PagSeguro,
a disruptive provider of financial technology solutions in Brazil extends our technological
and economic resilience, driven by robust and consolidated infrastructure.
Website www.boacompra.com
Head office São Paulo, SP – BRAZIL
Core solution BoaCompra offers local payment solutions for pay-in or payout in Latin America to
international merchants. An all-in-one solution that enables local processing in local
currency with international funds remittance without the need for a local entity in
17 countries in the region or sending single/mass payouts to Brazilians in local currency
instantly with no banking fees.
Target market We cover different industries: gaming, entertainment, digital goods, services, retail,
marketplaces and PSPs.
Contact details https://boacompra.com/
Geographical presence LATAM, Europe, and China
Year founded 2004
Investors PagSeguro
License type Payment Solution: card acquirer, payment processor, PSP and payment aggregator.
Member of industry association MRC
and/or initiatives
Company motto Connecting international companies to local payments in Latin America
Gateway
Merchant acquirer/Processor
Financial infrastructure Yes – PagBank in Brazil
Payments Infrastructure Local payment methods and payouts
B2B payments Yes
POS/mPOS Yes – PagSeguro in Brazil
Online Yes
POS/In-store Yes – PagSeguro in Brazil
Hosted pages Yes
Recurring billing Yes
Payment methods supported Yes – 140 payment methods in 22 countries
Settlement currencies Yes – four currencies
Instant settlement More information available upon request
Tokenization Yes

ERP integration Plugins/extensions for WooCommerce, Magento, and Shopify
Onboarding Yes
dashboard
Chargeback management Yes
FX – number of currencies 16
available
Current account/settlement Yes
account
Clients
Main clients/references Bytedance, Garena, EA, Avast

BOA COMPR A
PAYO U T
SOLUTION
Send instant payouts
to Brazilians
BoaCompra Payout is an all-in-one API solution that enables global companies to send instant
payouts to Brazilians. Using this disruptive payout model, businesses from all over the world can
instantly send payouts in local currency within minutes and with no traditional banking fees.
Discover how your business can benefit

from BoaCompra Payout Solution
Single or mass Instant transfers in Easy access to

payouts to Brazilians. local currency. the payees.
Uncomplicated cross- Disruptive payout Banking

border operation. experience. taxes free.
High level of compliance.
And more: Offer PagBank’s

advantages to your partners.
FI N D O U T M O R E:
BOACOMPRA.COM/PAYOUT
Company dLocal
dLocal (NASDAQ: DLO) is a global payments platform enabling merchants to reach billions
of emerging market consumers across 29 countries in Africa, Asia, LATAM, and the Middle
East. More than 325 companies rely on dLocal to accept over 600 local payment methods
in emerging markets and issue millions of payments to their contractors, agents, and sellers
around the world. dLocal’s ‘One dLocal’ concept delivers payins, payouts, payments for
marketplaces, and direct issuing through one direct API, one platform, and one contract.
Learn more at www.dlocal.com
Website www.dlocal.com
Head office Montevideo, Uruguay
Core solution Our ‘One dLocal’ concept delivers payins, payouts, payments for marketplaces, and direct
issuing through one direct API, one platform, and one contract, without the need of separate
payment processors, and without the need to set up numerous local entities, or integrate
multiple acquirers or payment methods in each market.
Target market Merchants – More than 325 global companies operating across different verticals and
geographies, including retail, streaming, ride hailing, financial institutions, advertising, SaaS,
travel, e-learning, and gaming rely on dLocal to access over 600 local payment methods in
emerging markets, as well as to issue millions of payments to their contractors, agents, and
sellers in growth markets around the world. Some of dLocal’s customers include Amazon,
DiDi, Kuaishou, Spotify, Microsoft, Wikimedia, Wix, and many more international merchants.
Marketplaces – dLocal has built a global platform from the ground up to be accessible
through a single direct API and to meet the rapidly evolving needs of these fast-growing
global merchants. In addition, we cater to the needs of leading marketplaces to help their
SMB clients and partners expand their geographic reach. Our global merchants benefit from
maintaining direct relationships with their end users while facilitating a faster, safer, more
reliable, and compliant payments experience.
PSPs
Contact details https://dlocal.com/lets-talk/
Geographical presence Africa, Asia, LATAM, and the Middle East
Year founded 2016
License type PCI certified, EU e-money license
Member of industry association MRC, PaymentsEd
and/or initiatives
Company motto Enabling global merchants to connect seamlessly to billions of emerging market users
Gateway
Full service commerce We are an enterprise-focused company, targeting large global merchants that operate in
different verticals and geographies. Our key verticals include retail, streaming, ride hailing,
financial institutions, advertising, SaaS, travel, e-learning and gaming.
Financial infrastructure Yes
Payments infrastructure Yes
B2B payments Yes

Online Yes
POS/In-store No
Hosted pages Yes
Recurring billing Yes
Payment methods supported Yes – dLocal enables its merchants to connect to over 600 payment methods
Settlement currencies Yes – dLocal processes payins and payouts locally in 29 emerging markets while settling
with merchants in EUR, USD, or local currency
Instant settlement Yes, more information available upon request
Tokenization Yes
Dynamic routing Yes
optimisation
ERP integration Yes
Factoring No
Onboarding Yes
dashboard
Fraud and risk management Transunion, Emailage, Telesign, Ekata, Experian, Serpro, ClearSale, Veraz, CheckExpress,
partners WorldCheck/Thompson Reuters, Sift, Mati, RiskScreen, Keesing
FX – number of currencies Over 30 currencies
available
Virtual IBAN Yes
Multi-currency virtual IBAN Over 30 currencies
account
Lending Yes
Instant settlement Yes, more information available upon request
Clients
Main clients/references Amazon, DiDi, Kuaishou, Spotify, Mailchimp, Microsoft, Wikimedia, Wix
Case studies No case studies available
Awards MPE Award 2021, Fast Company Award

We enable global merchants to
connect seamlessly with billions of
emerging market users
One API One platform One contract
PAYINS - PAYOUTS - M A R K E T P L AC ES - D IR ECT ISSU IN G
www.dlocal.com
Company Fraugster
Fraugster is an AI-based payment security company that enables ecommerce businesses
and global payment companies to intelligently manage the impact of fraud on their business.
Backed by some of Europe’s most reputable deeptech investors, such as Earlybird,
Speedinvest, CommerzVentures, and Munich Re Ventures, we support our customers to
reduce false positives and the total cost of fraud while improving checkout experiences.
Website www.fraugster.com
Technology Native cloud
Target market Corporate
Fintech
Merchants/ecommerce
PSP/acquirers
Contact hello@fraugster.com
Geographical presence Europe
Year founded 2014
Service provider type – category Fraud platform
Member of industry association More information available upon request
and/or initiatives
Company motto Minimize Fraud. Maximize Revenue.
Services
Unique selling points Fraugster provides fraud prevention services to online merchants both via direct integration
and through partner PSPs, minimising the integration effort. We offer managed services,
including chargeback protection and revenue increase guarantee, as well as a self-service
risk management suite (SaaS).
Pricing model SaaS-based pricing model/pricing per transaction and volume
Fraud prevention partners More information available upon request
Third-party connection Ingenico ePayments, Ratepay, Worldline Six Payment solutions, CrefoPay
Technology: Identity verification methods
More information available upon request
Authentication technology used
Proprietary AI technology which combines human accuracy and machine scalability.
We developed the Fraugster AI Engine based on a behavioural science approach that
mimics the thought processes of a fraud analyst. Instead of clustering transactions, as done
in classical machine learning, our technology analyses the behavioural context of each
transaction in order to accurately block fraudulent transactions while approving legitimate
ones.
Built on self-learning algorithms, the AI Engine detects and adapts to new fraud patterns
as they emerge. Combined with a machine computation power, it processes thousands of
transactions within milliseconds, enabling unlimited growth.
Authentication context
Online
Mobile
Reference data connectivity
Connectivity to governmental Global Sanctions lists via Elucidate
data

Clients
Main clients/references Ingenico ePayments, Six Worldline, Ratepay, Eurostep, AS Adventure, Diana SRL, European
Games Group, Iberostar, Billink, Startselect to name a few.
‘Artificial Intelligence is the future of fraud prevention, and Fraugster’s FraudFree helps our
merchants improve their performance.’ Gabriel de Montessus, EVP Retail at Ingenico Group
‘Fraugster’s Fire is the perfect addition to our in-house machine learning platform. The
flexible self-service rule engine allows our fraud analysts to quickly draft, test, and deploy
anti-fraud rules directly into the real-time environment. Thanks to this cooperation, we can
provide even greater customer experience to our merchants and their customers and help
merchants drive revenue growth.’ Nicolas Kipp, Ratepay, Chief Risk Officer
‘We chose Fraugster because it was the most sought out alternative to our previous
solution. We said: let’s give it a try, and now we couldn’t be happier with the results. Our
employee costs immediately went down once we eliminated manual reviews and our clients
are now completely shielded from the trouble of chargeback costs.’ Giovanni Marconato,
CFO – Problem Solver, Eurostep

Company PPRO
PPRO is the top global provider of local payments infrastructure, powering growth for
payment service providers and enterprises with payment platforms. Companies at the
forefront of payments technology leverage PPRO’s unified platform, expert services, and
local payment methods to boost sales in over 100 ecommerce markets worldwide. In 2020
alone, PPRO processed over USD 11 billion for its customers, including companies such as
Mollie, PayPal, Worldpay, and many others.
Website https://www.ppro.com/
Head office Global offices from São Paulo to Singapore
Core solution PPRO builds local payments infrastructure designed to help businesses gain access to new
markets and new customers. Companies at the forefront of payments technology leverage
PPRO’s unified platform, expert services, and local payment methods to boost sales in over
100 ecommerce markets worldwide.
Target market Payment service providers and their merchants
Enterprises with payment platforms
Banks
Contact details https://www.ppro.com/contact/
Geographical presence US, Europe, 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 motto Multiply your payment options. Boost your conversion rates. Simple.
Full service commerce Yes (digital)
Financial infrastructure Yes
Payments infrastructure Yes – local payment methods + value-added services (consultancy, regional experts, quality
measurement, compliance, legal etc.)
B2B payments Yes
Cryptocurrency payments Yes
solution
POS/mPOS Yes
Online Yes
POS/In-store Yes
Omnichannel Yes
Hosted pages Yes
Payment methods supported Hundreds
Settlement currencies 24
Tokenization Yes
optimisation
Onboarding Yes

dashboard
Fraud & risk management capabilities
Fraud and risk management Yes, more information available upon request
partners
FX – number of currencies 32
available
Virtual IBAN Yes
Clients
Main clients/references Mollie, PayPal, Sprint by Citi, Elavon, Global Payments, Alipay, and many more
Case studies https://www.ppro.com/case-studies/
Awards MPE Award 2020 ‘Best PAAS Provider’, Payments Awards 2020 ‘Best Cross-Border
Payments Service’, Emerging Payments Awards 2019 ‘Leading Emerging Payments
Organisation’, the PayTech Award 2021 for Best Cross-Border Payments Solution, and more.

Make global e-commerce
a piece of cake
Expanding across borders is no easy feat.

To make customers click “buy”, you need to offer them their preferred way to pay ...
And there are over 500 of them.
So you’ll need to partner with a pro.

The biggest names in the biz rely on our local payments infrastructure to accept local payments,
expand their global reach, and increase their revenue.
Come say hi (or ciao or 你好!) at:

ppro.com
Company SafetyPay
SafetyPay is a secure alternative payments platform. With a comprehensive suite of B2C
and B2B payment solutions, the company eliminates common pain points associated with
traditional payment methods, allowing non-card holders and fraud-wary consumers to pay
via bank transfers or cash payments. The platform partners with 380 banks and payment
partners in 18 countries worldwide.
Website https://www.safetypay.com/en/
Head office Miami (US)
Core solution We provide a non-card payment platform, enabling cross-border and local commerce
transactions through bank transfer, instant payments, and cash payments in Latin America
and Europe.
Target market Merchants (financial services, travel and tourism, sports betting, MLM, ecommerce and
shopping, gig economy, buisness and consumer services, education, gaming)
Marketplaces
PSPs
Fintech
Contact details mtrivino@safetypay.com
Geographical presence Europe and LATAM
Year founded 2007
Investors IFC (World Bank), Armilar Capital and Escort Investments (Family Trust)
License type Payment Institution
Company motto SafetyPay has the mission to encourage financial inclusion by giving access to payments in
ecommerce, and enable merchants the oportunity to make cross-border sales.
Gateway
Payment Service Provider – Yes (non-card)
Full service commerce Yes, digital
Payments infrastructure Yes, bank transfers, cash, and cross-border.
B2B payments Yes
Cryptocurrency payments No
solution
POS/mPOS No
Online Yes
POS/In-store No
Omnichannel Yes
Hosted pages Yes
Recurring billing No
Payment methods supported Yes, bank transfers, cash, and cross-border.
Settlement currencies Yes, nine currencies.
Tokenization Yes

Factoring No
Onboarding Yes
dashboard
Fraud and risk management Yes, Feedzai and Iovation
partners
FX – number of currencies Yes, 11 currencies.
available
Virtual IBAN No
Multi-currency virtual IBAN No
account
Lending No
Clients
Main clients/references https://www.safetypay.com/en/merchant/our-clients/
https://www.safetypay.com/en/merchant/our-partners/
Case studies https://www.safetypay.com/en/merchant/our-clients/
https://www.safetypay.com/en/merchant/our-partners/
Awards iupana most innovative financial service projects 2020
Shortlisted by Emerging Payments Awards 2021 for International Payments

(full list of the finalists)
Best E-Commerce solution in 2017 for E-Commerce Awards
CIO Banking
Future developments Lending and payout
Transaction volume More information upon request
Transaction volume (USD/EUR) More information upon request

SafetyPay,
the most secure
and largest
payment network
in Latin America.
safetypay.com
Contact us at
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The Payment Methods Report 2021

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RELEASE VERSION 1.0

TEL: +31 20 893 4315

Lead Editor for Payments and

markets and new customers.

What you will find in this report

3 Payment Methods Report 2021 | FOREWORD

Checkout optimisation and customer conversion

Buy Now, Pay Later infographic

Facts and figures

Payment methods 101

Enjoy your reading!

4 Payment Methods Report 2021 | FOREWORD

8 Payment Methods in High Gear – Latest Trends and Developments

13 Payment Methods Featured in This Report

27 Buy Now, Pay Later

39 Buy Now, Pay Later Global Mapping

52 Mobile Payments: E-wallets and Super Apps

5 Payment Methods Report 2021 | TABLE OF CONTENTS

69 Direct Carrier Billing

72 Debit and Credit Cards

84 Cryptocurrencies and CBDCs

90 Checkout Optimisation and Customer Conversion

6 Payment Methods Report 2021 | TABLE OF CONTENTS

112 The Merchants’ Perspective – Mini-Interviews on Customer Behaviour

119 Payment Methods 101

133 Company Profiles

134 Payment Methods

158 Payment Service Providers

7 Payment Methods Report 2021 | TABLE OF CONTENTS

gained momentum in the last 12 months with good traction even

progress in this field is to understand their future roadmap. As well,

As ownership shifts to access, consumers want the latest technology

Sweden, and the Baltics Account-to-Account payments are the

Corporation of India (NCPI), India’s real-time payments system.

can ‘enjoy a checkout experience that is familiar, convenient, secure,

and trustworthy’. Consumer-facing programmes and solutions using

EMV SRC specifications are known as Click to Pay.

payments in India from card-based to account-based. Their success

used via SEPA transfer. In the multi-month phase, Giropay will be

and 8% of the total, in terms of quantity and value, respectively.

In 2020, the US Federal Reserve unveiled new details about its

the US will increase six-fold by 2025.

GoCardless, a digital payments company based in the UK, has

• various innovations in technology, including more convenient bank

In recent years, bigtech companies such as Amazon and PayPal

have also embraced the BNPL business model. Payment services

including short-term, interest-free payments have been added to

PayPal’s financing options in March 2021, Pay in 4 (available in the

US and France), and PayPal credit (available in the US and UK).

Furthermore, Visa launched its BNPL pilot programme in 2020

in the US, and Mastercard will conduct test programmes with

its Mastercard Consumer Installment (MCI) platform outside the

Investments Embedded payments are expected to go mainstream with the