Specialist
Former senior executive at Adyen NV
Agenda
- Adyen’s (AMS: ADYEN) regional growth trends, emphasising North America and APAC merchant wins and processed volume growth
- Merchant share of wallet trends and ability to win new regions
- Trends across Adyen’s Unified Commerce growth, POS (point-of-sale) and e-commerce fees
- Future revenue streams including issuing, accounts and capital
Questions
1.
How do you think about Adyen’s regional mix in terms of process volume and how do you expect that to evolve? You obviously have the North America and APAC insight.
2.
How would you roughly split the weighting of the European business relative to that of North America? To your point, Europe is still the biggest by probably quite a margin in terms of process volumes.
3.
What growth rate would you expect from the European business relative to that of North America?
4.
What growth trajectory do you expect from the North America business relative to that of Europe? Looking at where Europe was five or so years ago, quite a lot of growth has come out of the eBay transition from PayPal. How would you rate the company’s ability to win new merchants, specifically in North America? You suggested there may be some challenges there.
5.
What’s the dominant omnichannel solution in North America?
6.
Why would an international merchant give Adyen its North America process volumes if it could get it so much cheaper from a US provider?
7.
Do you see international merchants largely rolling out their North America process volumes to Adyen, or does the discount they get from local payment providers make it worthwhile to match and integrate the disparate core solutions?
8.
When Adyen reports regionally, is that just where the process volumes are as opposed to where the merchant is based?
9.
I know that no two large enterprise merchants are exactly alike, but can we think about any general rules around how penetrated you can get, in terms of percentages of merchants’ process volumes?
10.
Is there any point where a merchant would become uncomfortable in the north-of-USD 1bn ballpark? Could that be too much to put with one provider?
11.
Do you think any fundamental changes need to be made to Adyen’s platform or sales pitch to win more domestic North America merchants?
12.
Do you see further pricing pressure on processing fees?
13.
In percentage terms, how much lower would you expect Adyen’s take rates or processing fees to be in 2-3 years?
14.
Given the macroeconomic backdrop and the growth equation that Adyen has 80% historically coming from existing merchants, how do you think about the potential impact of a recession and of e-commerce growth having been pulled forward during the pandemic? Do you see that impacting the growth rate of process volumes?
15.
Do you think Adyen wants to move away from the end-market exposure you mentioned or carrying so much exposure to one category?
16.
I think the eBay transition is currently Adyen’s most notable platform customer. That transition seemed relatively slow and drawn out. Would you think about that as a guide or template for future platform merchant wins in terms of phasing that growth in the share of process volume?
17.
Adyen’s Capital Markets Day presentation suggested eBay is still around 75% of platform process volume. Do you think there’s still more to come from eBay? That’s not all the GMV the business does annually.
18.
You mentioned how Adyen goes to market and the incremental penetration of existing merchants. What share of process volume will the business typically be prepared to go in for at a merchant? What’s the general pitch?
19.
What share of process volume do you think comes from account-managed merchants?
20.
What timeline would you expect for going into a typical merchant? How long until you’re 50% of the process volume?
21.
What enables Adyen to grow its share of process volumes? What specific KPIs will a merchant consider and decide to give them to Adyen?
22.
Is there a typical saving a merchant would realise after migrating to Adyen?
23.
Merchants often mention the authorisation rate and how good Adyen’s is relative to peers’. Why is that? Why can the company have a rate that’s often significantly higher than peers’?
24.
Do you think progress in token interoperability will reduce the platform advantage over time and enable merchants to just use best of breed?
25.
Is the higher acceptance rate Adyen’s leading advantage over peers, generally speaking?
26.
What’s the typical go-to-market on Unified Commerce in general? Is it normally about converting digital customers into Unified Commerce customers or are they mostly entirely new merchants?
27.
Would you expect a particular legacy provider to be displaced more frequently than others by Adyen? Does the company have particular success against any specific competitors?
28.
What’s the primary benefit for a merchant in terms of omnichannel, relative to using a standalone POS [point-of-sale] and e-commerce payments provider?
29.
Do you not see an uplift in the fees charged when you move a customer to Unified Commerce, or is that transition-accretive for Adyen’s economics?
30.
Are there additional modules that can only be sold into Unified Commerce or omnichannel customers?
31.
Could a global merchant require or demand any features that Adyen’s offering can’t satisfy? Do merchants that chose not to use Adyen frequently mention anything?
32.
Do you think Adyen’s competitive advantage or position has or will change in the US due to having a banking licence now? How important is that?
33.
Do you share Adyen’s excitement about embedded finance more generally? The company spent a lot of time discussing this at the Capital Markets Day.
34.
Do you think Adyen will make a concerted effort to acquire SME business outside of platforms or will platforms be the focus?
35.
Would you like to highlight anything else around Adyen or the industry?
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