We find out what’s behind their seamless checkout experience, the challenges of managing multiple payment systems and integrating increasingly popular BNPL products.

With insights on tech’s critical role in ASOS’s payment strategy, this episode offers a fascinating look into the future of ecommerce payments.

Minimising cart abandonment

Van Nijnatten, the General Manager of Payments at ASOS, is in the ideal position to uncover the secrets behind this retail giant’s payments operations. Managing commercial relationships and strategic initiatives surrounding payments at ASOS means he’s looking for the solutions that are going to create a better customer experience.

In the conversation he emphasises the importance of a seamless payment process to enhance this and therefore drive profitability. What is absolutely critical is minimising conversion loss, where customers abandon their virtual shopping carts at checkout. This can be caused by a number of issues but is incredibly common with the average cart abandonment rate sitting at 70%. It’s also essential, he says, to stay ahead of emerging payment trends.

Minimising complexity

Van Nijnatten goes on to explain that working in the payments industry requires constant vigilance and adaptation, as new payment methods continually emerge. He highlights the necessity of a measured approach, balancing the implementation of new trends with maintaining a streamlined and efficient checkout process. Personalization is important too, and tailored payment solutions and localised options can significantly enhance customer satisfaction. Your UK checkout may look quite different to other European countries.

The conversation also covers the backend complexities of orchestrating various payment systems for a large organisation like ASOS. He details the challenges and changes in the growing Buy now, Pay later (BNPL) landscape over the past five years, with giants like Klarna and Clearpay now being offered on many major online stores and contributing to a sector worth $260Billion. ASOS now offers multiple BNPL solutions in most of their operating countries but he stresses the importance of not overwhelming the checkout process with too many options, which can detract from the user experience.

Van Nijnatten goes on to explain the all too common strategic decisions involved in choosing between building in-house payment solutions and buying third-party services. He doesn’t go into too much detail but he does describe the tech-dependent nature of the business and how the payments department functions as an enabler for ASOS, allowing quick market entry and experimentation with different payment methods. This iterative approach ensures that ASOS can swiftly adapt to new markets and customer preferences without overcommitting resources.

Be sure to catch more of our Pay it Forward podcast episodes on our website.

The post Buying Clothes Online Has Changed Forever | Pay It Forward with ASOS appeared first on FF News | Fintech Finance.

Their innovative approach involves offering diverse payment options, including an integration with Spain’s largest peer-to-peer payment method, Bizum, and value added services like cashback.

It’s all in service of creating a seamless e-commerce experience, and we hear about this and much more in this great episode of the podcast.

Read on to find out more.

Ecommerce Growth in Spain

Capote, who is Head of Payments and Fintech Partnerships at Miravia, a company within the Alibaba Group, shared a number of insights on his role and the company’s strategic view of payments. The interview took place at MPE in Berlin, in the payabl. booth.

Miravia is a new e-commerce business launched in Spain in December 2022, and according to Capote, has experienced rapid growth so far. Capote emphasizes the importance of offering multiple payment options to guide customer interactions and facilitate seamless transactions, noting the necessity for businesses to adapt to changing consumer preferences by offering secure and convenient payment methods. Offering APMs is becoming a global trend and it’s heartening to see it being adopted in Spain also.

Of course, there are a number of considerations to make. In the interview, Capote also highlighted three fundamentals that companies must consider when integrating new payment methods: coverage, customer experience, and audience targeting. Coverage involves onboarding payment methods with significant market share, while customer experience focuses on facilitating a smooth payment process. Targeting the right audience means providing the payment methods they prefer. As an example, he mentioned the successful launch of Spain’s largest peer-to-peer payment method, Bizum, which saw a significant shift of users from traditional payment methods to Bizum, especially after a collaboration with neobank N26.

The future of payments includes value added services

Increasingly we’re seeing more and more value-added services in payments, something Capote discusses here. He described these as solutions that go beyond the payment itself, benefiting the end user. Possible features like instant payment discounts and cashback opportunities from bank partners, can enhance user satisfaction and engagement. They can influence positive user behavior but also increase market share for partners within the payment ecosystem.

Capote noted that while monetization of value-added payment services is not the main priority, delivering value to users ultimately impacts the company’s profitability. BNPL also gets a mention and he cites the increasing popularity of “Buy Now, Pay Later” (BNPL) services among younger audiences, who are less familiar with credit cards. Although the penetration of BNPL in Spain is relatively low compared to other European countries, he sees significant potential for growth due to the preferences of Gen Z and millennials.

Partnerships with other payment companies are also crucial for creating a best-in-class service for Miravia and Alibaba, Capote explains. E-commerce platforms excel in operations but rely on payment companies for expertise in payments. Collaborations with payment partners can increase acceptance rates, reduce chargebacks, and improve operational efficiency. These partnerships also enhance customer experience by offering exclusive benefits and create opportunities for growth and additional revenue streams. Miravia has established partnerships with companies like N26, Klarna, and Bizum to deliver benefits such as cashback, discounts, and flexible payment options, integrating these into their loyalty program.

Watch the video above to find out more and be sure to check out the rest of the Pay it Forward series.

The post Alternative Payment Methods on the Rise in Spain | Pay It Forward with Miravia (Alibaba Group) appeared first on FF News | Fintech Finance.

In another fascinating episode of the Pay it Forward podcast with payabl. we speak to LeoVegas Group’s Director of Payments, Christian Reinheimer, to find out how they navigate a rapidly evolving industry with diverse local regulations and ensure customers are looked after.

We hear about the impact of PSD2 on the payments landscape, and the importance of convenience and security in adopting new payment methods. There’s also some thoughts on the ones that are working so far and why good partners are essential.

Getting gambling payments online right

This conversation, which took place in the payabl. booth at MPE in Berlin, is yet another Pay it Forward episode that speaks of the many factors contributing to consumer payments today. Having been with the company for nearly five years, Reinheimer oversees a team of around 70 people responsible for the payments, product and technology at the online gambling company. The Swedish company was acquired by MGM Resorts in 2022 and has built a reputation as a popular provider of online games.

Reinheimer emphasized the importance of adapting to a rapidly changing industry, which is becoming increasingly complex due to varied local regulations. Each market’s unique licensing requirements necessitate continuous adjustments to their systems, reflecting the diverse regulatory environment across Europe.

In this conversation, which you can watch above, Reinheimer discusses the balance between adhering to regulations and maintaining a positive customer experience. Despite the growing number of rules, he views regulation as an opportunity for innovation, striving to find the best balance between player safety and entertainment.

Of course, the PSD2 directive also gets a mention. This has introduced more competition and innovation in the payments sector and in theory shifted the industry from a card-dominated environment to one where open banking and new providers offer varied and competitive services, benefiting companies like LeoVegas.

He also delves into the complexities of working with different PSPs. Getting your partners right is key and LeoVegas evaluates potential partners based on several criteria, including product offerings, risk mitigation features, cash flow handling, and service levels. The company seeks partners who are not just service providers but collaborators willing to engage in a close relationship to enhance their products to meet industry needs.

Alternative payment methods are becoming increasingly prevalent and people want to use them particularly in online gaming. He cites successful examples like Swish in Sweden and Pix in Brazil, which have rapidly gained significant market shares due to their instant and secure nature. The ability to quickly adapt to new payment trends is crucial for maintaining a competitive edge in the dynamic gaming industry.

Find out about all this and more in this special episode.

The post Delivering Seamless Payments in Global Gaming | Pay It Forward with LeoVegas appeared first on FF News | Fintech Finance.

In this episode of the Pay it Forward podcast with payabl. we speak to David Birch, fintech author and director of Consult Hyperion. Exploring the transformative potential of the metaverse in reshaping financial services, he lets us know how it might also solve the internet’s identity and fraud problem.

There’s loads of great insights here on everything from DeFi to B2B (that’s bot-to-bot!) commerce. We also hear his opinions on current efforts to tackle fraud and there’s some advice for merchants adapting to changes in the payments landscape. Enjoy!

Doing business in the metaverse

Birch is a busy man. He begins by telling us the not insignificant number of things he’s currently focusing on. There’s the dynamic relationship between Fintech and Big Tech, illuminating how these companies are playing an increasing role in the evolving financial landscape. He’s also thinking a lot about A2A (account-to-account) payments, something he sees as the backbone for next-generation retail payments.

Sadly we didn’t have time to cover all of this in depth but we did get to hear about the topic of Birch’s latest book, “Money in the Metaverse“, written in conjunction with Victoria Richardson. We find out about the transformative potential of the metaverse, not just as a new playground for digital interactions but as a revolutionary platform for financial services.

According to Birch, this new technological frontier presents an opportunity to redefine traditional financial services by addressing the internet’s persistent identity and fraud problems. The cost of defending against online fraud has always been high, but the metaverse offers a fresh slate to build more sophisticated identification credentials.

The advent of Web3 and the tokenization of assets could establish new pre-conditions for business and innovative mechanisms for exchanging value, making transactions more secure and efficient. This evolution goes beyond avatars and games, as evidenced by Apple, ever the serious contender, entering the metaverse themselves, prompting a broader reconsideration of its potential.

More than just Fortnite

For merchants, the implications of the metaverse are profound. Birch recounts attending a book launch within the metaverse, which was an enjoyable experience until the moment he had to exit to make a traditional payment. This highlights the pressing need for integrated payment systems within virtual spaces.

He also emphasizes the potential of future identity systems, which he describes as an exciting frontier. These systems will likely support commerce involving autonomous bots handling menial tasks, leading to bot-to-bot transactions that will prioritize different criteria than human-centric commerce. The richness and diversity of metaverse experiences will far surpass current gaming environments like Fortnite, opening up new possibilities for interaction and commerce.

Further exploring developments in digital identity away from the metaverse, Birch expressed skepticism about the UK Government’s recent enactment of the Economic Crime and Corporate Transparency Act. While acknowledging the efforts to combat fraud, Birch argues that the UK’s actions are insufficient. He also notes the absence of sufficient collective action among banks to address these issues comprehensively.

We also get some views on the challenges and opportunities for small to mid-sized merchants navigating the increasingly complex payments landscape. He advocates for scenario planning as a more effective strategy for directing investments than the traditional five-year plans that many companies rely on. This approach allows businesses to adapt more flexibly to the rapid changes in technology and consumer behavior, ensuring they remain competitive in an ever-evolving market.

It’s a thoroughly insightful interview with a knowledgeable thought leader, so be sure to watch the video to get the full, immersive experience.

And check out more of the Pay it Forward podcast on our website.

The post This Is the Real Metaverse Value Proposition | Pay It Forward with David Birch appeared first on FF News | Fintech Finance.

According to one report digital game purchases accounted for over 70% of all game sales in 2022. Eneba is a growing online games store that sells games for multiple platforms as well as DLC, points and more.

In this episode of the Pay it Forward podcast with payabl. We speak to Mantas Eitutis, Head of Payments at Eneba, to find out more about the evolution of video game payments and the growing trend of embedded finance in the gaming industry.

We hear about gamers expectations, understanding local markets and what innovations could be on the horizon. Whether you’re a gamer or a payments fan, this video should have plenty of interesting insights.

Modern gamers looking for instant access

A particularly interesting point raised by Eitutis is how the evolution of digital distribution platforms like Steam, and the stores on PlayStation and Xbox have reshaped the gaming experience, with instant access to purchased content a key selling point. Modern gamers now expect competitive pricing, high-quality service, and the ability to use their preferred payment methods, alongside rapid and effective customer support.

The discussion also touches on the challenges of managing payments in the gaming industry, especially in light of new European regulations like ISO 20022. But there are benefits to this and Eitutis suggests that such regulations could enhance transaction speed, reduce errors, and lower costs, ultimately leading to better cash flow and operational efficiency.

Of course, many people might be curious to know how Eneba maintains competitive pricing, which Eitutis informs us they achieve by offering a wide range of payment methods tailored to different markets, boasting over 160 payment options to cater to global users. This adaptability is crucial in providing access to gamers who may not have traditional payment options.

The future of video games

The conversation then shifts to embedded finance within video games, a trend where in-game purchases and real-world transactions blend seamlessly. Eitutis sees this as a growing area, particularly with the possibility of Apple and Google opening their ecosystems to third-party app stores. This could enhance the in-game payment experience, offering more options and flexibility to gamers.

The conversation also explores the future of gaming payments, including the burgeoning trend of “earn to play,” where gamers can convert their in-game time and achievements into real money or tangible rewards.

Looking ahead, Eitutis predicts that mobile gaming will continue to dominate, driven by advancements in 5G technology, cloud computing, and cross-platform solutions. These developments will enable gamers to play high-quality games on any device without the need for expensive hardware, making gaming more accessible and immersive.

It’s a comprehensive look at the dynamic interplay between video games and the payments industry, and another informative look at how payments are integrated into yet another industry. For more insights on this, check out the rest of the Pay It Forward podcast.

The post You Could Soon Get Paid to Play Video Games | Pay It Forward With Eneba Games appeared first on FF News | Fintech Finance.

Here we get an insight into the payment preferences in Finland, the increasing rise of mobile wallet payments and how they have successfully integrated their loyalty program.

Lindström also shares insights on the importance of customer data, and potential benefits the ISO 20022 standard may have. It’s a very real look at how payments intersect with everyday customer convenience.

It’s important to point out just how ubiquitous S Group is in Finland. Their retail operation spans grocery stores, hospitality, traffic services, department stores, an amusement park, and even a bank. They’re the largest retail conglomerate in the country and mainly compete with one other organisation, K Group. Lindström of course has the important role of overseeing all things payments, ensuring compliance and managing vendor relationships.

Where payments and groceries intersect

The interview highlights the breadth of Lindström’s responsibilities, given the diverse sectors S Group operates in. Payments is obviously a central concern for S Group who also recently entered into an extensive partnership with paytech Adyen. The discussion then shifts more broadly to the payments ecosystem in Finland which according to Lindström is predominantly a debit card society, with 84% of transactions made via cards, 90% of which are debit transactions.

Mobile wallet payments are on the rise but still represent a small fraction of transactions. Increasingly, like other Nordic countries, cash usage is minimal. He also discusses the popularity of alternative payment methods like the Danish MobilePay and bank links, which stem from historical consumer caution towards sharing card details online.

As mentioned above, Lindström explains S Group’s commitment to their successful loyalty scheme, which is crucial for customer retention and satisfaction. He mentions the challenges they face, such as integrating loyalty points with Apple Pay, necessitating a custom-built orchestration layer to handle S Group-specific features and ensure seamless payment experiences across different channels.

As e-commerce grows alongside S Group’s physical operations, Lindström highlights the importance of maintaining a consistent payment experience both in-store and online. Although the majority of transactions currently occur in-store, S Group is focused on expanding their e-commerce presence significantly in the coming years. With this comes the need to optimise payment methods and customer journeys to avoid unnecessary security checks and improve user experience.

There are further discussions about the increasing blend between physical and digital and we get a look at the anticipated impact of the ISO 20022 standard on S Group. Be sure to watch the video above, to hear about this and much more. It’s a fascinating discussion that looks at how S Group have got both eyes on the future and always seeking to innovate.

The post How This Nordic Retail Giant Deals With Payments | Pay It Forward With S Group appeared first on FF News | Fintech Finance.

We hear about the project’s transition from investigation to preparation, all in service of creating a robust Pan-European payment system. Tune in to the video above or read on to find out more about the key drivers behind this leading example of digital currencies and some of the key benefits they feel it will have.

Central Bank Digital Currencies, which involves central banks creating digital versions of their national currencies to enhance the efficiency, security, and inclusivity of payment systems, are becoming increasingly ubiquitous. More and more countries and jurisdictions are developing or researching the possibility of one, as we established in an article looking at the topic. As for the European Central Bank, the idea of a Digital Euro is something they’ve long supported, with legislation from the European Commission outlining how it could work. Not everyone’s on board and there are legitimate concerns about whether it would work but there’s no question there are a number of conceivable benefits. Witlox looks at some of those in the conversation.

Getting people on board with the Digital Euro

It begins with a bit of background into her own career in the private sector, before moving to the ECB and transitioning into payments. A big part of what is needed for the Digital Euro to work is stakeholder engagement. Witlox explains that the ECB is actively collaborating with various market participants, including the European Retail Payments Board, consumer organizations, banks, and non-bank financial entities. This inclusive approach ensures that the Digital Euro is developed with broad input and support. She also stresses the importance of communication and transparency, which includes participating in conferences like the one where this conversation took place, MPE.

One issue that the currency would attempt to address is Europe’s dependence on non-European payment systems, which handle about 70% of retail payments. Witlox talks about the necessity for a Pan-European infrastructure to maintain monetary sovereignty and ensure the continuity of retail payments. The Digital Euro could reduce this dependency and enhance the resilience of the European payment system.

Interoperability with other digital currencies is another key topic. Witlox acknowledges the importance of designing the Digital Euro with future interoperability in mind, even though the current focus is on creating a robust system tailored to Europe’s needs.

What most want to know is what are the benefits and opportunities of the Digital Euro? Witlox outlined several advantages, such as ensuring access to central bank money in a future where cash usage might decline. There is also the goal mentioned above of being a Pan-European solution with legal tender status, meaning it would be accessible through all banks and accepted by all merchants. In theory, this would foster competition and provide a public good that counters the monopolistic tendencies of dominant private payment providers.

It’s a fascinating conversation that should give an insight into what could be happening in Europe over the coming years.

The post The Case for the Digital Euro | Pay It Forward With European Central Bank appeared first on FF News | Fintech Finance.

The Pay It Forward podcast is back and this time we’re looking at the integration of payments in cars. Andre Moeller from Volkswagen Group‘s charging division, Elli, discusses how advancements in car manufacturing and payments technology are revolutionizing the electric vehicle (EV) charging experience.

We hear about the future of in-car payments, plug-and-charge technology, and enhancing the customer experience with further amenities during longer charging times.

It’s a fascinating look at the questions we’re all asking as we look to the future of driving.

Making charging easy

The conversation begins with Moeller looking at the unique challenges faced by the electric vehicle (EV) charging sector compared to traditional e-commerce.

With more and more people making the transition to electric vehicles, there’s a need for a seamless, reliable payment system that works effortlessly across different geographies and currencies, accommodating different payment preferences across Europe. For Elli, the future involves multiple payment methods, including both pan-European and local options.

This potential is balanced by operational complexities, which Moeller explains involves customers traveling across countries receiving invoices in different currencies and languages, which can be problematic. The goal is to prioritize the customer’s experience, tackling issues from technical, linguistic, and driver convenience perspectives.

Looking ahead, Moeller also identifies key trends in payments technology. This is where the embedded finance market, which is anticipated to surpass $228bn by 2028, could do something really groundbreaking. He highlights the growing role of in-car payment systems, which could eventually negate the need for smartphones or ID cards at charging points. The next leap is the plug-and-charge technology, where the charging station automatically identifies the vehicle, simplifying the process to merely plugging in the cable, making it as effortless as possible for the user.

Moeller also touches on the broader implications of these advancements. Charging stations are evolving from simple points of transaction into multi-functional hubs. As charging an EV takes longer than refueling a traditional car, new facilities like co-working spaces, cafes, and recreational areas could be added to enhance the customer experience during wait times.

The conversation concludes with a discussion on the importance of partnerships in the fintech and automotive industries. Moeller highlights a recent collaboration between Volkswagen Group Charging and SIXT, a major car rental company. This exemplifies the potential of data sharing and integrated services, where a customer can seamlessly use charging services through a single app. Moeller goes on to suggest we need more collaborations like this, suggesting that companies should focus on mutual benefits and improved customer experiences rather than competing over customer data.

It’s a comprehensive insight into the evolving landscape of EV charging and payments, which we hope you enjoy. If you want to hear about more ways payments are impacting different sectors, check out other editions of the Pay it Forward podcast on our website.

The post Embedded Finance Will Play Central Role in EV Future | Pay It Forward With Elli (Volkswagen Group) appeared first on FF News | Fintech Finance.

In this episode Brett King catches up with Ali Paterson, Editor-in-Chief, FF News about … fintech and banking!

Having been part of the architecture, or rather furniture, of the industry for many years, these two leaders, writers and influencers look at fintech — through rearview mirrors and what’s on the road ahead — in a lighthearted discussion from respective vantage points. There are standout moments (does anyone remember the literal payments race?), personalities, culture, and some favorite stories

Listen to the full episode here

The post Buzzword Bingo: Episode 545 appeared first on FF News | Fintech Finance.