market challenges facing an acquirer in the european ...€¦ · market challenges facing an...
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Market challenges facing an acquirer in the European market – a personal view
Geoffrey Barraclough
Head of Propositions
EVO Payments International
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$82m (between June and September 2017)
EVO Payments International at a glance
Highly Confidential 3
• Who we serve • How we serve
• Who we are
Headquartered in Atlanta, GA
16 officesacross 10 countries
More than 2,000team members around the world
Founded
1989
4-time recipient of best international card acquiring service provider
More than
450,000merchant businesses worldwide
Over 50markets served
$100 billionannual processing volume worldwide
130+transaction currencies
9market leadingbank partners
Market PolandCzech
RepublicMexico Spain Ireland Germany UK
EVO market rank
Date of first entry
#1
Dec 2013
#5
Feb 2016
#2
Aug 2015
#4
Oct 2013
#4
Sep 2014
#5
June 2013 Oct 015
Customer focus
All POS & eCom
SmallPOS & eCom
AllPOS & eCom
AllPOS & eCom
SmallPOS & eCom
Large x-borderPOS & eCom
SmallPOS & eCom
Alliance partner
No of POS terminals
EVO Payments International at a glance
12,000165,000 10,000 12,50070,000100,000 10,000
EVO Growth Strategy
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New geographies New customers Increase share of wallet
Single set of APIs
Modern sales and marketing
Boarding Processing Service
Global and local
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$82m (between June and September 2017)
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$82m on product development$67m on sales/marketing
(in Q3 2017)
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Because the purpose of business is to create a customer, the business enterprise has two - and only two - basic functions: marketing and innovation
• Peter Drucker
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My questions for the European merchant acquiring industry
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Q: What is the role of brand in merchant acquiring?
B2B branding has changed
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Necessary evolution of merchant acquirer brands
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Technical FunctionalRemoteUndifferentiated
TomorrowToday
HelpfulSpeedyInnovative Distinct
Why brand is important
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Q3: How do we balance sales and marketing?
Good marketing delivers inbound sales
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Q: How do we manage the move from discrete business
process to fully integrated ecosystem?
Orchestrating the ecosystem
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Acquirer alongside Acquirer inside Acquirer leading
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Q: Are ISVs the new ISOs?
EVO helping ISVs
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Q: What role do products play in the merchant acquiring
portfolio?
What role do products play in the merchant acquiring portfolio today?
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Role Definition Merchant services?
Magnet Attracts new customers eCommerce
Anchor Keeps customers Terminal rental & integration
Profit engine Makes the money Merchant account
Spice Brings excitement to the brand New payment types
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Role Definition Merchant services?
Magnet Attracts new customers Ecosystem, fast set up
Anchor Keeps customers Ecosystem, eCommerce
Profit engine Makes the money Merchant account
Spice Brings excitement to the brand New payment types, marketplaces, analytics
What role do products play in the merchant acquiring portfolio tomorrow?
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Q: Are we in financial services or technology services?
Three strategic options for acquirers
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Customer intimacy (brand)
Scale Vertical focus
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$82m on product development$67m on sales/marketing
(in Q3 2017)