Specialist
Former senior executive at Microsoft Corp
Agenda
- Drivers of e-commerce merchant wallet share
- Merchant decision-making criteria and vendor comparison
- Adyen’s (AMS: ADYEN) differentiation vs modern acquirers such as Stripe and Checkout.com and legacy PSPs (payment service providers)
- Evolving merchant requirements for e-commerce payments
Questions
1.
How are you seeing the acquiring landscape evolve as it relates to e-commerce merchants, in particular, e-commerce payments? How do you see the needs of global merchants evolving?
2.
Do you see any moves towards consolidating the gateways on the legacy acquirer side? I appreciate on the back end that a lot of them are a patchwork of different acquisitions that can make rolling out features slightly more challenging, particularly for global merchants. Are you seeing any improvements in terms of the UI/UX for merchants themselves?
3.
What specific concepts or features do you expect Adyen, Checkout and Stripe to be able to bring to the market that the legacy players can’t do in a time-efficient or economic way?
4.
I thought most of the global merchant acquirers have token vaults, that the tokenisation had been around for some time and acquirers have been able to offer that quite readily to their merchant customers. Is that not the case?
5.
When would it be best to use a PAM [privileged access management] rather than a token? I would have thought the token is the best one. Is it if the issuer processor can’t accept the token? When would you not use a token if you could?
6.
Is the development lift for the merchant or the development burden for integrating directly with Visa or Mastercard’s tokenisation network too large in most cases?
7.
What are the main reason codes for a failed payment? One is do not retry, and another is card lost, stolen or compromised. Then you have a few others where there are insufficient data. What does the mix look like from a failed payments perspective? What portion of failed payments could tokenisation potentially optimise for?
8.
Do merchant acquirers change the behaviour of issuer process to be more accommodating or sophisticated around the transactions they do and don’t authorise? Can the merchant acquirer have any impact on that or is that just a problem with the issuer processor?
9.
How much higher is the authorisation or acceptance rate with mods and acquirers such as Adyen vs more legacy players?
10.
Do you think more widespread adoption of payment orchestration layers in small, medium and increasingly enterprise customers will increase the speed that Adyen, Checkout and Stripe gain share of process volume reduced with large merchants? Is that doing that process but maybe on a more automated basis?
11.
Do you think Checkout.com’s February 2020 acquisition of ProcessOut is a competitive advantage for it? I guess it’ll be able to see failure or reason codes across a number of different merchant acquirers which can potentially provide a benefit to its merchant acquiring business as well because it can optimise for those failed payments and have a bigger sample.
12.
Do you think merchants would be willing to pay higher scheme fees for a tokenised network that has higher authorisation?
13.
Why would a merchant acquirer not support merchants experimenting with debit routing?
14.
Would you expect Adyen to continue growing share of process volume among its enterprise merchant base and displacing legacy providers?
15.
You mentioned that there are things you can do to optimise for fund availability. Is embedded finance in some of those solutions you were hinting towards?
16.
How valuable do you think global merchants would find future embedded finance tools that Adyen’s been discussing in its recent couple of capital markets days?
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