PCM Vol.2 - Issue 10

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expert interview act locally but really only provide a credit card solution to most of these markets. And if credit card is not the dominant choice of payment in that particular market then those merchants and consumers are left with a negative consumer experience. This constitutes one more reason why PayU is focused on truly local expertise, which is where our strength lies. Another trend to keep an eye on is using mobile for payments in commerce. People in emerging markets commonly use the internet via their mobile devices for the first time. In markets, such as Sub-Saharan Africa, mobile payment is the dominant way to pay and to shop. For merchants that want to expand to Africa, mobile must become the top priority. For PayU, the number 1 priority is making sure to service our customers both on the merchant and consumer side in the best possible way through their mobile device. That means PayU must stay at the forefront of technological development in order to provide an easy to use experience. Equally important to us is the conversion rate. One of our recent studies showed that out of any of other payment service provider, we have the highest conversion rate in the industry. This is a crucial aspect for merchants as they don’t want to lose customers in the payment process Interestingly in Western markets you see a big conversion difference between eCommerce and mobile commerce. So, for people shopping on a PC, the conversion rate is 2 to 3 times higher than people shopping on their mobile device. In the emergent market the difference is not that significant, which is mainly caused due to consumers using their mobile device as their only access to the internet. Since this trend is likely to continue, mobile will be a big battleground in the future. Even beyond payments, PayU’s customers and merchants require additional services. This includes easy access to consumer credit or working capital financing, especially for small businesses. Those demands pose opportunities for us, which is why we are starting to explore expansion into these areas where we can provide our customers with an even richer range of services. Why should a global company be excited about entering markets such as Poland and Turkey? First of all, trends show that more and more consumers are going online to shop. These markets have vast populations – these are big markets with a lot of people. Plus, the consumer population tends to be in a younger bracket. For example, in Turkey 70% of the population is below the age of 35. As all of these people going online results in an increasing push for internet penetration both from the governmental side as well as from the consumers themselves. Consequently, when those potential shoppers go online, the global merchants have a great opportunity to capture a substantial part of their online spending. This is because many This Month’s Expert Mario Shiliashki Chief Executive Officer, PayU EMEA Mario Shiliashki was appointed CEO of PayU EMEA in October 2015. Before joining PayU, Mario was Senior Vice President and Group Head of Global Emerging Payments at MasterCard. Prior to MasterCard he was one of the first employees of Paypal’s international team in London helping building Paypal’s European business. In his early career, Mario was an equity analyst at Goldman Sachs and subsequently a strategy consultant at Bain. He holds an MBA from Harvard Business School and a Bachelor of Science degree in Finance and Economics from Bryant University. of those global brands are well recognized. This is the market in which consumers are looking to participate. The growth of the market, the even faster growth of e-Commerce and the increasing number of e-Commerce shoppers in these markets all lead to a massive opportunity for global brands to expand beyond single digit growth rates in their domestic markets to potential double or sometimes triple digit growth in areas such as Turkey, Poland, Russia, Central & Eastern Europe. Africa alone represents a whole new world of opportunities that is opening up with a fast growing middle class and internet penetration becoming relatively high. Also governments in that regions are becoming more open and friendly towards import and export business. To us, all these trends spell a big opportunity for global merchants. For that reason, PayU strives to make the move for merchants seamless and easy with our checkout mechanisms paired with our local know-how. We can provide the data and insights into what local consumers need, their preferred way of paying, their preferred way of checkout, what channels they like to shop on and so forth. we already possess this information because we are processing a large part of the online payments in these markets. What do you see as the most important factors for global merchants to be aware of when entering your markets? First and foremost, before entering an emerging market, merchants need to decide how to do it. Among other aspects the right consumer base needs to be determined and the right experience that the merchants want to offer to their consumers must be chosen. At this exact point of entering a new market or expanding within a new market, PayU can help with our data by extracting required information about consumer preferences. Therefore, PayU can advise merchants on suitable payment 016
expert interview pages, mobile payment services or preferred payment methods. On top of that, merchants need to find the right local partners who can help them build the desired experience and reach targeted local consumers. Another very essential point refers to regulatory requirements. Regulators have particular ways they operate their own markets. The requirements each merchant needs to adhere to differs from market to market. A good example is Russia and Turkey, where data privacy is very critical. In those countries the regulators require that all data stays within their nation’s physical borders. That means severs and data rooms have to be on soil in those countries. as a local player this is a hurdle we have already overcome but for merchants entering the market this might pose a problem linked to extra costs they need to bear to localize their service. So they need to be very well aware of that! PayU can provide a lot of insights to merchants regarding local nuances. Similarly, in markets like Nigeria, Argentina or Brazil there are specific monetary rules in place in terms of how much money a business can take out of the country and how it can be taken out. Lastly, merchants need to recognize that the world is becoming a smaller place and they need to have a global presence. In my opinion entering certain growth markets will no longer be a choice but a necessity in a few years. This is due to the increasingly competitive environment in those markets. If global merchants do not plan to enter markets with the highest growth or the highest potential to grow, then their competitors will. As a result they are likely to lose market share. How does PayU fit in to the market? How can PayU help big brands grow significantly in revenue compared to other payment service providers? PayU is as a global brand, with local expertise. Thus, PayU can provide global merchants with consumer habits, consumer preferences, and the best payment methods in each market. We can advise on regulatory and compliance aspects in high growth markets. We are also a well recognized brand in these markets both on the consumer side and the local acquirers, banks and local merchants side. That’s why we can help global merchants to increase their conversion by making the payment experience as seamless as possible for the consumers. In addition to that, PayU organizes certain programs, seminars and events that bring merchants and other industry players together. For example, we have been running the PayU Lab in Poland for three years now. In this event, we bring participants from e-Commerce, m-Commerce and the payments ecosystem together. This creates a space for merchants, regulators, banks, and credit providers to exchange ideas and solutions, facilitating a smooth collaboration in the future. It’s an industrywide initiative we put together and we have similar projects in other markets. Lastly, I can say that we’ve been operating in this emerging market for many years. In many markets we have gathered expertise for over <strong>10</strong> years and we’re very well positioned to drive e-Commerce and help global merchants expand into local markets. Any last bits of advise for a company contemplating expanding into this exciting region? Well, you should look at PayU to be your partner of choice! But seriously, looking ahead you also need to think about what’s next. For PayU that means we are looking beyond the payments services we currently provide. We want to serve the consumers with additional ways in which they can get access to money. In many of our markets, the consumers are not served well by their current providers in terms of access to credit. That is one of the areas where we aim to expand our product offering through partnerships in credit space. The same goes for local small businesses: since we process a lot of their online payments, we can give advise on how to expand their business and even provide them with working capital financing. There are some areas beyond the payments journey we are entering such as ladditonal FinTech services, where we can complement our current offer. PayU PayU is a leading online payment service in 16 high growth markets across Africa and the Middle East, Central and Eastern Europe, India and Latin America. Our 250+ payment options enable safe transactions for more than 160,000 merchants, allowing them to focus on reaching the 2.3 billion consumers in our markets. For more information please visit www.payu.com 017
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Page 3 and 4: Contents thoughtleaders 4 spotlight
Page 5 and 6: Thought Leaders Corner ? Behaviour
Page 7 and 8: Thought Leaders Corner Invisible Id
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Page 21 and 22: startup Spotlight secure access to
Page 23 and 24: SPECIAL FEATURE PCM: Any exciting n
Page 25 and 26: events Events Barcelona, Spain Mobe
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