Retailers Encroach on the Payment Landscape

Introduction

Scope

Key findings

Drivers Leading to Retailers Moving Further into Payments

DRIVERS LEADING TO RETAILERS MOVING FURTHER INTO PAYMENTS

Drivers leading to retailers becoming more entrenched in payments

Spread of modern retailing already boosting card payments globally

Growth of modern retailing making card usage more prevalent

Internet retailing becoming an ideal channel for card payments

Rapid expansion of internet retailing bodes well for card payments

Retailers are taking advantage of technologies to conduct payment

A look at the changing landscape of mobile-enabled devices

Two categories of mobile payments: Proximity vs remote payments

NFC-driven mobile payments slowly gaining momentum

Fractured payment industry provides opportunities for retailers

The Evolving Payment Experience

THE EVOLVING PAYMENT EXPERIENCE

US retailers have been in the cards space since the beginning

The evolving role of the retailer in the new mobile-dominated world

New technology is enriching the merchant-consumer relationship

Mobile will dictate new store sales and drive digital couponing

Case study: Mobile could spell the end of traditional cash register

Mobile phones and tablets now replacing bulky cash registers

Phone interacts directly with POS terminal to execute the payment

PayPal enables consumers to make payment with phone number

Item-level RFID tagging could lead to a faster checkout experience

Case study: Mobile devices changing the experience in the aisle

Shoppers check out in the aisle via store-provided handheld device

Mobile apps make it possible for consumers to scan as they shop

Employees now being armed with mobile POS devices in aisles

Case study: Mobile devices changing the on-the-go experience

QR-code activated virtual stores in high-traffic urbanised areas

Technology enabling consumers to skip the line via pre-ordering

Merchants also use location-based discounts to drive purchases

Strategies Used by Retailers in the Financial Services Space

STRATEGIES USED BY RETAILERS IN THE FINANCIAL SERVICES SPACE

Some of the strategies taken by retailers in consumer finance

Case study: Retailers morph into consumer finance providers

New grocery list includes milk, bread and financial products

Retailer launches bank to offer insurance, credit cards and loans

UK supermarkets become more entrenched in consumer finance

Case study: Retailers use close relationship to target unbanked

The retailers-turned-bankers trend most prevalent in Latin America

Brazilian retailers first to offer services to low income consumers

Mexico’s retail outlets become popular bank channel for unbanked

Case study: US retailers join together to create mobile wallet

More than 30 big-name American retailers are involved in platform

Merchant-led network about cutting costs, retaining consumer data

Retailer-led mobile platform could reduce card processing fees

Case study: Retailers like Target offering cards with direct debit

Target offers its cardholders 5% everyday discount, free shipping

Target’s REDcards allow it to manage loyalty and drives sales

Pluses and minuses of store-issued card products

Prospects for Retailers in Payments

PROSPECTS FOR RETAILERS IN PAYMENTS

How retailers could disrupt the long-standing payment structure

Benefits and potential conflicts for retailers and payment providers

The prospects of retailers in the traditional financial services space

Report Definitions

Data parameters and report definitions (1)

Data parameters and report definitions (2)

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