This document discusses Aeromexico's digital transformation and improvements to its payments processing. It notes that Aeromexico transitioned to using Adyen's payment platform, which allowed for local card acquiring in multiple markets. This led to increased approval rates, sales in local currencies and payment methods like installments. It also reduced costs. Aeromexico's transactions grew substantially after implementing these changes. The document outlines further payments innovations Aeromexico plans to pursue, such as adding a chatbot and enabling payments directly within Facebook Messenger.
2. Tim van Diest
SVP Global Accounts
Brian Gross
Head of Digital Innovation
3. Some facts
about Adyen
• Tech company founded in 2006
• One platform, one integration
• $90 Billion processed volume in 2016
• 7 own + 90 external acquiring connections + LPM’s
• 13 offices in 5 continents
• 560 employees globally
4. Adyen & Travel
• 30% of total Adyen volume
• Active in all regions
• Integrated with Amadeus, Sabre and
Navitaire
• Multi acquiring routing tool
• 39 Airlines live on the platform
17. Aeromexico’s architecture:
Connections to our back end are expensive
Aeromexico.com
Front end
Aeromexico API SABRE back end
Issuing banks
Cybersource
Other Connections
(e.g. Mexico cash, Central America, Colombia, Argentina)
3DS
2 acquirer – MX
1 acquirer - US
1 acquirer - BR
1 acquirer - EU
1 acquirer - UK
1 acquirer - CA
18. Adyen enables local
acquiring in new markets
Benefits of local acquiring
• Cost savings channel shift
• In-country transaction
• Higher acceptance rates
• Local currency
• No foreign exchange or surcharging
• Local instruments
• Parcelas in Brazil - 50% of sales
• Installments in other Latin countries - 30-80% of sales
19. Monthly transactions for AM.com (2015-2017)
0
300
600
900
1200
Jan 15 Mar May Jul Sept Nov Jan 16 Mar May Jul Sept Nov Jan 17 Mar
United Kingdom
France
Spain
Netherlands
Rest of Europe
Europe Growth vs previous year (MoM, %)
Launch of EUR and
GBP in Feb. 16
Local acquiring boosts sales
-3%
34%
164%
120%
263%
219%
239%
203%
431%
286%
234%
253%
352%
112%
55%
20. Tips and Tricks
Check message configurations
• Acquirers have special configurations for certain
cards, countries or Forms of Payment (e.g.
installments).
• Check the set-up with them to find gaps or
underperforming categories
Retry transactions with other acquirers
• Around 10% of Rejections from Acquirer A,
might be authorized by Acquirer B
Validate end-to-end flow
• Auth, Capture, Settlement, Refunds, etc. Every
new PoS might need specific adjustments
Solve frequent unclear error types
• Focus on the most common ones that are
unclear or vague. Acquirers might have
unpleasant surprises.
Monitor daily performance
21. Adyen Dashboard
• Monitor daily performance
• Solve concerns, deep analysis
• Performance by acquirer by BIN
• Identify misconfigurations for
installments, cards by country, etc.
• Change % traffic to different acquirers
• Generate manual procedures for
refunds, captures or cancellations
22. We removed
3D Secure
• No significant Fraud increase in Mexico
• Fraud increased beyond tolerable
levels in US, so we put 3DS back on,
but…
• New acquirer in US – Elavon – fraud
remained under threshold
• Cybersource = effective!
• Implementing Dynamic 3DS with
Adyen
23. Overall results: high acceptance rate,
increased customer satisfaction
Success rate Visa/MC payments Web Mexico in 2016
70%
90%
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sept-20 Oct-20 Nov-20 Dec-20
77% 78%
76%
74%
79%
80% 80%
82%
86% 86%
84% 84%
Launch
ofAdyen
asG
atew
ay
M
SIQ
6
code,
Accep.from
57%
to
75%
Santanderas
2nd
Acquirer
Retrieson
AcquirerB
9% recovery rate,
5M USD per year
24.
25. The future
• Central and South America:
• Local card acquiring
• Cash
• Installments (30-80% of market)
• Adyen + Asia, AFP Europe, etc.
• 3rd acquirer Mexico
• 2nd acquirer USA
• Chatbot
• Payment inside of Messenger