The Merchant Payments Digest is a regular update from Oliver Wyman focusing on merchant-relevant payments topics. Our goal is to provide the latest updates in the payments landscape to help keep merchants apprised of the many developments in the rapidly shifting payments space.
We welcome your thoughts and feedback on this inaugural version and we look forward to sharing editions with you in the future. To have a discussion with Oliver Wyman on your payments issues and opportunities, please contact Beth Costa at email@example.com.
Oliver Wyman is a global leader in management consulting with offices in 50+ cities across nearly 30 countries. Our Payments practice works with constituents across the payments value chain to deliver insights with real impact, combining deep industry expertise with powerful consulting capabilities.
Airbnb has agreed to buy social payments startup Tilt, the P2P money transfer provider focused on group payments and crowdfunding.
Tilt should help Airbnb with group payments, such as for friends to split the cost of an Airbnb rental
Tilt reports that over 500,000 groups used its product, which has a unique ability to offer cross-currency payments and thus may be particularly beneficial for Airbnb
Source: Skift (https://skift.com/2017/02/23/airbnb-buys-payments-company-tilt-travelers-split-trip-costs/
Ant Financial will take over helloPay Group, the online payments platform used on South East Asian eCommerce platform Lazada, via a merger. helloPay will be rebranded into AliPay in its local markets
helloPay staff will join Ant Financial in its Singapore office, although all of the company's services will remain unchanged and the rebranded helloPay will remain separate from the Alipay app
The move is the latest signal of intent by Ant Financial to become a leading power-broker in the global payments industry. Recently the firm raised its offer for US-based money transfer service MoneyGram to $1.2 billion
Source: TechCrunch (https://techcrunch.com/2017/04/19/ant-financial-hellopay/)
McDonald’s McDonald’s announced that it will offer mobile order-ahead and pay-ahead functionality on its mobile app. McDonald’s stated the order-ahead feature will be available at 20,000 locations globally by the end of the year. As with other such apps already in the market, customers will be able to place an order anywhere, pay for it, and then pick it up at the restaurant later. To keep these orders from clogging its restaurants, however, pick up will take place curbside or in the drive-through lane given payment will already be completed in the app.
Source: Business Insider (http://www.businessinsider.com/mcdonalds-joins-the-mobile-order-ahead-craze-2017-3)
PrintempsPrintemps, the French department store, launched AliPay acceptance in all 18 of its stores in late 2016. Printemps was the first in France to accept AliPay, enabling luxury shoppers from Asia to pay with their mobile phones using the same format they are accustomed to in Asia.
The result is two-fold: enhanced customer experience, plus the opportunity for cost savings. Chinese customers accustomed to paying with AliPay at home can maintain their same payments habits, reducing friction at the point-of-sale. And merchants may experience cost savings relative to cross-border card-based transactions, according to AliPay’s partner Wirecard.
AliPay, with 450 million Chinese users, has been exploring expansion and recently cut deals with BNP Paribas, Barclays, UniCredit, and SIX to expand acceptance across Europe in 2017 to 930K merchants. But the AliPay app enables more than just payment acceptance; AliPay users will be able to search for merchants that accept AliPay and receive promotional offers from them.
Source: NFC World(https://www.nfcworld.com/2016/12/06/348872/alipay-expands-across-europe-deals-major-banks-payment-providers/ ; https://www.nfcworld.com/2016/11/09/348365/48365/)
The Merchant Payment Digest is a new monthly newsletter from Oliver Wyman focusing on merchant-relevant payments topics. Our goal is to provide the latest updates in the payments landscape to help keep merchants apprised of the many developments in the rapidly shifting payments space.
Oliver Wyman is a leading global management consulting firm with over 50 offices in 26 countries that combines broad industry knowledge and expertise with close partnerships and relationships.
Oliver Wyman has a dedicated global Payments team that draws on years of industry-shaping work across all aspects of Payments, brings deep expertise in digital and retail, and leverages our state-of-the art research partners at Celent to help our clients develop strategies that capitalize on the winds of change in the Payments landscape.
We welcome your thoughts and feedback on this inaugural version and we look forward to sharing monthly editions with you in the future.