WINTER ‘17 - ‘18 EDITION
QUARTERLY FINTECH MAGAZINE
CREDITCLICK Who is the new kid on the block?
AMAZON
IS DISRUPTING THE PAYMENTS LANDSCAPE
UBER From Merchant to Payment Company
Car2Go and MyTaxi, Mercedes Pay is on the verge of tremendous growth. Read the full story in this edition. Whilst these companies are leading the way in innovative Payment Solutions that fit their needs, we are seeing other companies following. Uber, for instance, is issuing their own Credit Card and Walmart is creating their own Apple Pay killer with Walmart Pay. Check out Uber’s story on page 8.
Dear readers, I hereby present to you the end of the year edition of our Quarterly PaymentGenes Fintech Magazine. As you’ve probably noticed, a lot has happened in our beloved industry. The summer months turned out to be quite intriguing. We saw two large changes in the payments landscape; the acquisition of Bambora by Ingenico and the merger between Vantiv and Worldpay. However, the more interesting trend that we are noticing is the explosive growth of alternative payment methods, and that merchants are moving more and more towards the payment eco-system. Shoppers of the Amazon website who’ve had the privilege of using 1-Click, might not have been aware of Amazon Pay. Little do they know, Amazon Pay is one of the fastest growing e-wallet solutions in Europe, which saw a growth of over 120% in 2016. In this edition, we interviewed Giulio Montemagno, the General Manager for Amazon Pay in Europe, who told us all about Amazon Pay and its plans for the future. Another company that has made significant steps in the payments industry has been Mercedes. Through the acquisition of PayCash Europe, Daimler Mobility Services launched Mercedes Pay. Already integrated with European mobility provider
As far as Alternative Payment Methods are concerned, we are noticing the trend of unifying multiple Financial Services. For example, CreditClick, a Dutch Alternative Payment Method company, has successfully combined payments with financing. They have developed a product that enables shoppers to get instant credit at the moment of e-commerce checkout. Read more about this new kid on the block on page 13. We at PaymentGenes are extremely excited about the future of Payments. As innovation accelerates, new payment platforms emerge and global expansion continues, we look forward to sharing the latest trends and industry updates with you. Make sure you follow us on Social Media, either through LinkedIn, Facebook or Twitter. And of course, if you have any challenges that we can help with either through consultancy or recruitment, feel free to reach out and we will assist you any way we can. Enjoy this edition of the magazine, and the upcoming holidays!
Camile Laupman Partner at PaymentGenes
Content 4
Amazon Pay
8
Uberification
13
CreditClick
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Mercedes Pay
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How Uber is taking over the Payments Value Chain
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Disruption in the payments landscape We sat down with Giulio Montemagno, General Manager for Amazon Pay Europe, to ask him a few questions about Amazon’s new payment solution.
And with that you are now responsible for all of Amazon Pay Europe if I understand correctly? Yes correct. Today we have operations in five countries, but we are serving customers from all over Europe at this point. Can you tell us why Amazon decided to start its own payment solution, Amazon Pay? I think it is a natural continuation of what we’ve done in the past. Developing technologies internally and then making them available to third party merchants. We did this with Marketplace, for example. There we built our retail business and then used our e-commerce platform to enable third party sellers to sell. We did the same thing with AWS, where we started internally and then made cloud computing available to third party merchants and developers.
“At the end of 2016 we had over 33 million customers that had used Amazon Pay” Could you tell us a bit about your professional past and your current position at Amazon? I’ve been in commerce and payments for almost 20 years now. I started with eBay back in late 99 and stayed there for four years. In 2004, I joined PayPal and stayed with them until 2013, where I had various leadership positions in Europe. After that I joined a start-up heading up the international business outside of the U.S. called RetailMeNot, which had operations in several different countries in Europe. In January 2017, I joined Amazon to head up Amazon Pay in Europe.
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Amazon Pay follows in the very same direction. We have over 330 million customers that are active globally with Amazon. Over 10 percent of these have already used Amazon Pay using their Amazon credentials to pay on third party sites, safely and quickly, without having to create any additional account. We’re seeing a significant uptake on both the merchant side and the consumer side of our service. How important is Amazon Pay for Amazon? Hopefully it’s very important huh (laughs)? We are still a young business within Amazon. Amazon has many businesses and some are well established.
“being innovative and constantly bringing new things to market is a part of Amazon’s DNA”
However, being innovative and constantly bringing new things to market is a part of Amazon’s DNA. Amazon Pay is one of those innovations that the company is betting on and has significant resources invested in it to develop a product that will enable merchants to grow their business. We’re still small in the grand scheme of things, but we are growing extremely fast. How would you describe Amazon Pay’s current position in the market, compared to others? Many competitors have been in this segment for over 20 years, if not more. I’m really pleased with the growth that we’re seeing, and with the quality and names of merchants that have started offering Amazon Pay to their end customers. We more than doubled our merchant base in 2016 and the number of Amazon customers that have used Amazon Pay has continued to grow at a very high rate. At the end of 2016 we had over 33 million customers that had used Amazon Pay for the first time, with a
growth of 78 percent year over year. A recent study done by Goldman Sachs calls out Amazon Pay as the fastest and most disruptive payment solution in the market for the years to come.
“Today Amazon is the most trusted brand when it comes to commerce globally” What do you think makes Amazon Pay so different, so disruptive as you say? I think it’s the size and quality of the user base. Prime customers – our most loyal and active customers spend significantly more online than other typical online users. Not only do they spend more, but they do transactions online with Amazon very frequently: this means that their shipping address and payment
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information are very current. So, when you put it all together, the quantity and quality of the user base that the merchants offering Amazon Pay can have access to is extremely high. On the other hand, the trust of the brand is also very important. 78 percent of all online users continue to consider trust the most important thing in commerce. Today Amazon is the most trusted brand when it comes to commerce globally and this is something merchants and consumers value greatly. What trends are going to change the payments landscape in the near future? Voice Commerce. Voice is what mobile was 10 years ago and it’s an entirely new platform. We are investing heavily into this new platform, enabling thousands of delveopers to create application and help us continue to invent on behalf of our customers.
Quickfire questions What time do you get up in the morning? 6.30 normally Which app couldn’t you live without? Amazon obviously :) but Deezer and the Economist apps too. What’s the best piece of advice that you’ve ever been given? Listen And the worst? I probably wasn’t listening when someone gave it to me…. What’s your motto? Make it happen
There are many things that we will be rolling out and announcing over the next few months. I cannot disclose exactly what is going to happen but Voice is going to be a key part of Amazon’s strategy. What is this going to mean for Amazon Pay? We are noticing a strong interest in developing voice based and voice powered shopping experiences with merchants across Europe. It’s a much more
natural way for humans to interact with machines, rather than just typing input on a keyboard or into a phone. With stable technology and the investments that we are making into developing this platform, I’m confident that we can bring solutions to market that respond to a variety of problems that merchants and retailers have today. Please tell us a little about the environment at Amazon. What makes it such a great place to work? Well, I would say it’s the spirit of innovation that we have, which is really amazing in my mind. There’s a healthy ambition, a desire to design products and services and make them as good as they can possibly be to serve our customers. That is probably the greatest trait that we have.
Aside from that, there is a sense that everything is possible. We are surrounded by very smart, very motivated people who really have a genuine desire change the world. What is the reason Amazon has chosen to work together with PaymentGenes on your more strategic hires in Europe? You’ve done some very good work helping us source great talent in the payment space. Obviously, our ambition is to create a successful payments franchise over the next few years. To do that, we need to be able to attract the very best possible talent in each market. I believe that your network in the payments business, your presence all over Europe and the track record that we have started building together will enable us to do so. To me these are very encouraging signs of our partnership for the next few years.
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Uberification How Uber is taking over the Payments Value Chain On October 25th 2017, Uber launched their own Uber credit card together with Barclays and Visa, which for many people in the payments industry who have had the privilege of working with Uber doesn’t come as a big surprise. Uber has truly incorporated payments as a crucial part of their business, by setting up multiple payments teams who
Uber, unlike most merchants, has embraced the fact that you have to build a payments team if you want to take advantage of the opportunities in the payments space. Card payments make up 80% of all transactions online, and due to the complexity, merchants are constantly dealing with issues like authorization rates, detecting fraudulent transactions, settlement time lines and the most challenging subject: dealing with chargebacks. By creating a payments team within your organization that builds the expertise, a merchant can better position themselves by improving authorization rates, getting a faster settlement, reducing fraud and automating chargeback defense. The launch of Uber’s credit card is an initiative that focuses on reducing costs and generating a new income stream, something that every merchant should aim for, but very little do. Every year we hear Uber is losing money, which has mostly to do with the cost of each transaction. In the US, 1 out of 5 card transactions doesn’t get
focus on implementing multiple PSPs/Acquirers, developing
innovative
services like InstantPay and now launching their own credit card.
“Uber, unlike most merchants, has embraced the fact that you have to build a payments team” 8
authorized. Because Uber doesn’t charge a card until the ride has been completed, that means that potentially 20% of their revenue cannot be collected. With a margin of only 25%, the margins Uber has to operate with are extremely thin, meaning that you need to employ solid technology to detect accounts that you are not able to collect on and keep increasing the number of rides to offset the losses.
By launching their own credit card, Uber is taking on the payments industry by doing what most banks have done for years, which is reduce cost by owning more parts of the value chain. Because Uber processes all of their transactions through their app, they are essentially an e-commerce company. Integrated with different PSP and Acquires, they have learned a lot about how card types, regionality and acquiring impacts their fees and authorization rates. By issuing their own card, they can use their knowledge, to reduce their fees, by routing transactions to the cheapest PSP/Acquirer and further improve authorization rates. With over 65 million users, Uber’s card has the potential to become a significant revenue source, but seems to be just the beginning of their steps into the Payment Value Chain. Mercedes Pay becoming a PSP and Amazon rolling out Amazon Pay to merchants across the world, the trend of merchants stepping into the payment space is just getting started and will continue to impact the Payment space. The prediction is that in 2018 many merchants will follow.
“Every year we hear Uber is losing money”
About Dwayne Gefferie As the Head of Data, Dwayne Gefferie leads and advances Dimebox’s data science capabilities and use of their data and frequently contributes knowledge and advice to the PaymentGenes team.
Want to work at one of the coolest companies in Amsterdam? PaymentGenes is growing fast! For that reason we are always looking for passionate and entrepreneurial people to strengthen our team. Do you want to work for an international company within the FinTech industry at a prime location in Amsterdam? Please send an email to careers@paymentgenes.com or give us a call on: +31 (0)20-2237888
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Will you join us at the next PaymentGenes FinTech Meetup? 2017 had some pretty memorable Meetup’s, with partners such as SimpledCard, Klarna, Magnius, EMS, Visa, Funding Circle and Barqo. We look forward to inviting you to the next editions in 2018, but until then, let’s look back at some of those memories... Did you miss our last PaymentGenes FinTech Meetup? Not to worry, become a member of our Meetup page and be the first one to know about upcoming get-togethers! Feel free to email us at mo@paymentgenes.com if you wish to team up with us for upcoming editions.
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Good luck to... Marion Deshoulières Born in:
Tours, France
Living in:
Paris, France
Senior Analyst Account Management Mastercard Position:
Every quarter we speak to one of our recently placed candidates about how they experienced the collaboration with PaymentGenes and their new employer. Meet Marion Deshoulières, Mastercard’s newest Account Manager in Paris who will be starting in December. She explains her motivations, expectations and experiences that will surely make this placement a great success!
What do you expect from the position? I expect to be challenged intellectually every day. It feels like a different universe, despite my past experience in the FinTech field. What is at stake is radically different and there is a need to take a consultative and analytical stance to develop a more strategical point of view. In an ever-changing, competitive landscape, I expect the clients’ needs to shift constantly and their expectations towards Mastercard to be very high.
What was it about the position at Mastercard that made you want to apply? During the interview process at Mastercard I noticed that the position was strongly about building solid relationships with clients. There is something I thoroughly enjoy about building a relationship with a client to become their most trusted partner. Only when this trust has been gained through dedication and professionalism, can we properly analyse and understand the clients’ innovative and more traditional needs.
“I am looking forward to helping my team go all the way!”
Aside from that, this is a position with direct bridges to all the other firm’s departments - I look forward to the challenge of being a trustworthy point of contact for both external and internal teams. What role did Anna Velly, Consultant at PaymentGenes, have in this process? Anna was an efficient, proactive coach before and after the interviews. As my first link with Mastercard, she gave me her fair and honest point of view of the company and the sector.
What past experience makes you perfect for this role? This would have to be my hands-on experience in FinTech with Limonetik. A small company is a great learning environment to tackle daily challenges and to get rapid exposure to new trends and tech. You have to be fast and have a problem-solving mind in every step of your daily work. At the same time, you often have to prove your abilities and expertise to prospects and clients. Longer and more intricate battles must be fought to gain their trust. I feel I now have most of the tools I’ll need to manage my portfolio and develop it at Mastercard, and I am looking forward to helping my team go all the way!
3 trends according to Marion Deshoulières Instant Payments
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Comeback of Mobile Wallets
The rise of the Ethereum
Instant Consumer Credit for eCommerce purposes Jeroen Bosch van Rosenthal
Maxim Dyachenko
How is your role here different from your role at ICS? There is quite a big difference! I come by train and no longer by car. I love walking in the centre of Amsterdam in the morning, seeing the city wake up. Being CEO of a start-up means doing everything yourself and together. It is a great thing to be part of something new that I can actively contribute to. Building a business from the ground up is a totally different ballgame compared to steering an existing business. I love this change in life.
How do you like working together? As Jeroen said, it is great to work with professionals. CreditClick was founded by two companies with a similar background in the payment industry. We talk the same business language. Being one team of professionals with different disciplines allows us to quickly come to results. Being part of a small team is exciting. We work hard while making sure we have fun building the company! What do you like about working for a start-up? In my previous role, I was director of a 100+ FTE software development department. I monitored progress through meetings and reports instead of participating in developing the product myself. Today I’m happy that I can lead sprints, formulate user stories, and push the buttons while clearly seeing the long-term goal. Contributing directly to the success gives a great feeling and motivation to make something unique.
Why did you choose to work for a start-up? CreditClick is a young and entrepreneurial FinTech company. People have a hands-on mentality; this is where many payment related topics come together and the atmosphere is great. When I launched the idea for CreditClick together with PaymentGenes, we quickly came to partnering up with a bunch of professionals in the payments industry.
About CreditClick CreditClick is a new payment method which facilitates instant and real-time online credit. A customer has to register only once. After they have been scored positively, the loan is directly available. With CreditClick we are creating a winwin-win solution for all stakeholders in the value chain. Merchants are given the opportunity to increase their conversion rates by offering loans to consumers creating instant buying power. The CreditClick platform gives the capability to create a substantial new business in the online eCommerce world.
CreditClick gives Payment Service Providers new and recurring sources of income. Our platform is built with the latest technologies which allow our customers to have a painless integration process. We realise integration in days, not months. Through our modern RESTful API, we offer a future-proof gateway to the e-Commerce world.
Benefits • • •
Guaranteed Payments Instant buying power No Merchant Service Charge
• • •
Increase conversion Simple and quick integration Cross-border acceptance
Get in touch with Jeroen & Maxim
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The Driving Force Behind Payments Are you curious about the innovations that the collection of data will bring us in the future? Mercedes Pay can explain their story, as they have been the new electronic payment processor for all products and services provided by the Daimler Group since January 2017.
It all started when Jan Reinhart and Jürgen Wolff launched PayCash in 2011. Not just another payment processor, no, they took it a lot further than that. Thanks to the development of a broad range of valuable services, PayCash conquered a strong position in the European FinTech and Payment Industry. Alongside credit card payments and processing transactions from almost every alternative payment
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method, PayCash also developed a Bitcoin POS solution, a Mobile application, a Mobile Payment Solution for all cashier systems and, finally, a loyalty program through prepaid gift cards and vouchers. All the while, the automotive industry has kept evolving and ‘in-vehicle’ payment solutions have become an undeniable fact to stay ahead of the competition. Now acknowledge what has been described above and think of two possible options for an established car brand. Option 1: partner up with a payment processor and make sure all your transactions are handled without any difficulties. This is the easy option, right? Option 2 is more complex: Merge with a payment provider, start processing all the transactions yourself, and see how you create a more interesting future than any of your competitors in the car industry can offer. That’s exactly what
“in-vehicle payment solutions have become an undeniable fact to stay ahead of the competition”
Daimler thought when it bought PayCash in January 2017. “Payments are fun and all, but it’s the data you can collect from payments that will bring you so much more.” This was also the moment that PaymentGenes realised it was ready to expand to another market, one where Payments and FinTech were clearly already up and running; Luxembourg. The Daimler Group acquisition of PayCash happened recently, and they were right at the beginning of a growing, and promising future. That’s when the partnership between Mercedes Pay and PaymentGenes began.
“Payments are fun and all, but it’s the data you can collect from payments that will bring you so much more.” successful time ahead. After our extensive contact, we are more than certain that he will do a terrific job and be of great added value to the vibrant future of Mercedes Pay.
Almost one year later, we are very proud that we have been able to prove our expertise several times, and once again have made a high-level placement. We wish our new placement a wonderful and very
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REGISTER BEFORE DECEMBER 31ST TO SAVE 10% To apply the discount (10% off regular price by December 31) please enter the following promo code: 66-05-14-18-12 into the field: special requirements on the registration form.
February 20-22, 2018 Berlin
NEW FACES & NEW STORIES
150+
SPEAKERS
Industry innovators who:
Innovate card acquiring Raymundo Leefmans, CEO & CoFounder, Dimebox Dimebox innovates acquiring with its full-stack white label acquiring solution with fully integrated risk management, A.I. based fraud protection tooling, chargeback automation and billing and settlement capabilities.
Revolutionize the reward schemes in mobile payments Michael Rolph, CPO & Co-founder, Yoyo Wallet Yoyo Wallet is the fastest growing mobile wallet in Europe enabling merchant to automate marketing with features like gamified campaigns.
ATTENDEES
300+
40+
C-LEVEL EXEC S
COUNTRIES
70+
Mathias Plank, Founder & CEO, KACHING Kaching redefines retail with a cloud-based, mobile-first omni-channel retail platform.
Merchant Payments Ecosystem (MPE) THE European conference & exhibition on Merchant Payments Acceptance: - Card Acquiring & Alternative Payments - POS & Payment technology: online, mobile and in-store
Eliminate obstacles for marketplaces John Snoek, VP Product, Acapture Acapture’s SlicePay solution is an easy-to-integrate product designed to reduce the burden of payouts to multiple parties in various countries and currencies.
Allow people to buy easily and pay later on
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SPONSORS & EXHIBITOR S
Redefine customer interaction
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FINTECH PEERS
Michael Rouse, Chief Commercial Officer, Klarna Klarna, an European Merchant Payment “unicorn” is a tech start-up valued at more than $1bn that changed the way how customers shop online by letting them try first, than pay.
Request the agenda and register @ www.merchantpaymentsecosystem.com 16
Challenges to PSD2 for PSPs and processors
INTERVIEW Ralf Gladis CEO Computop PSD2 will be law in all EU states By January 2018. What does this mean for Alternative Payment Methods (APMs)? With PSD2 new requirements for two factor or biometric authentication will be required by law. Payment schemes will habe to impose new authentication schemes to consumers. At Computop we expect a rise of biometric authentication which we offer ourselves to banks and PSPs. What obligations are imposed on PSPs? The obligation to ensure two factor or biometric authentication hits the ultimate payment initiator. That’s typically not the PSP but the payment scheme or the bank. Let’s look on
opportunities, too: besides strong authentication PSD2 also brings access to consumer accounts which might make risk management much easier if applied properly. And what are the implementation challenges? The hassle of implementations will probably be the scope: some APMs might need no changes, other will need slight changes and bold payment schemes might take the opportunity to introduce a completely new interface. The problem will be the number of different technical tasks. Let’s hope the schemes will get it right and not scare consumers away. Computop will help with biometric authentication like fingerprints, voice or face recognition to improve the user experience.
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Our top Job picks... Payments Strategy Manager Stockholm Get in touch with: Quinten Boertien +31 6 83 23 63 93 quinten@paymentgenes.com
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Product Manager Acquiring Frankfurt Get in touch with: Kirsten Visser +31 6 49 14 64 20 kirsten@paymentgenes.com
Director Finance Amsterdam
Mgr. Partnership Development London
Get in touch with: Steffanie van den Bos +31 6 29 58 08 85 steffanie@paymentgenes.com
Get in touch with: Jorrit Wijtsma +44 739 35 92 190 jorrit@paymentgenes.com
Head of Sales Digital Goods MĂźnchen or Berlin
Directeur Produit Paris
Get in touch with: Thijs Moser +49 (0)15 218 023 053 tmoser@paymentgenes.com
Get in touch with: Anna Velly +33 6 48 49 44 61 anna@paymentgenes.com
Looking for the next step in your career? PaymentGenes is one of the world’s fastest growing global fintech recruiting companies. We work with established international companies, as well as fintech startups.
Check paymentgenes.com for the latest vacancies in fintech
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Happy Holidays! SINGEL 250 1016 AB AMSTERDAM THE NETHERLANDS www.paymentgenes.com
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