Going global is a key strategy to drive company growth, but setting up and managing international payments can be very complicated. Join us at this session to understand payment operation requirements for multi-geography expansion and the Zuora configurations that will help you take your business anywhere in the world.

1. SUBSCRIBED 2018

2. Going Global: Demystifying
International Payments

3. GOING GLOBAL
Demystifying
International
Payments

4. SVP Head of Sales Enablement
at Worldpay
Eric Queathem

5. Manager
Zuora Subject Experts at Zuora
Renaldo Galipo

6. Trends

7. Growth in subscription market
By 2020, reports show that 50%
of adults will have access to
four digital subscriptions: a
50% increase from 2018.
The subscription market grew by
more than 100% during 2017.

8. The Trends
Low Monthly
Payments
Superior
Experience
Instant
access to
service

9. Why users stay subscribed beyond the first
month…
42% of users
appreciated
the ‘personalized or
tailored’ nature of the
service in question
18% say it’s because
of the ‘value for
money’ on offer
19% do so because
of the ‘convenience’
the service provides

10. Start with an
introduction
The most effective form of
flexible pricing comes in the
form of 30-day introductory
trials.
65% of the top 20%
most successful subscription
services offer free trials, while
just 15% of the least successful
use the same strategy.

11. Why
customers
opt out?
As participants in a long term
relationship, businesses that
offer subscription-based
products must deliver a
superior all-round experience.
Consumers are quick to cancel
services that offer poor media
quality or a lack of perceived
value.

12. What would cause you to cancel your
subscription to an online streaming
service?

13. Video streaming providers have
experienced a staggering 93%
conversion from free trials to
full subscriptions, while the
software as a service industry
reports conversion rates as
high as 20%.
Need image here

14. Reasons for cancellation

15. What the users have to say
28% of users stay
subscribed because
they appreciate the
personalised nature
of a service
26% of users
have cancelled a
subscription because
they were dissatisfied
with the product
Just 11% of users say
they signed up to a
service because they
liked the subscription
model itself

16. Customer Relationship

17. The best way to evolve with the
needs of a customer is to provide
them with new levels of service that
fulfill needs they didn’t even know
they had. Example, services that
once only offered searchable
albums, now provide personalized
playlists based on your own tastes.
This innovation in personalization
has added value for the consumer,
and could make it harder (second
guess) to unsubscribe from the
service.
Evolve with your
customers

18. The Customer is Still Always Right
Implementing in-app surveys reduced opt-outs by as much as
30% – suggesting that customers appreciate being asked for their
thoughts as much as they appreciate being heard

19. Perhaps don’t
message too much
Billing messages often act as a trigger
for customers to cancel subscriptions.
Whether the user feels that the
product isn’t providing enough value,
they’ve been planning to cancel the
subscription for some time, or they’d
simply forgotten about it, the
message acts as a reminder of
wasted money.

20. While billing messages may always
lead to a drop-off in subscriptions,
improving your retention by a
small degree could have a bigger
impact than you think.
Harvard Business School found
that a 5% increase in subscriber
retention rates translates to 25-
95% improvements in profit.
Retention is Key

21. Payment Strategies

22. Make payment
Simple
Quick fact
Developers on Google Play who give
users time to fix a payment issue
before retrying see a 57% higher
recovery rate from renewal declines
For the modern consumer,
accessing and paying for digital
content on the go is essential. And
with hundreds of different options
available globally, payment methods
are a fundamental part of the user
experience.

23. Intelligent Retries

24. Retrying Payments Payment Timing
One common issue is a lack of funds in
the customer’s account. If a
customer’s payday is yet to arrive,
and they have limited funds available,
their bank may decline the
transaction. This means it’s vital to
choose the right time to retry, and
give your business the best chance of
payment approval.
When a transaction is declined, card
issuers allow merchants to retry the
payment a limited number of times –
usually a maximum of four. This means
that every retry counts: there’s no point
in retrying four times in the same day, as
the original issue is unlikely to be
rectified, and you will ultimately lose the
right to try again.

25. Intelligent Retries: Payment Approvals

26. Intelligent Payment
Retry Automation
Advanced solutions base their transaction
timing on hundreds of thousands of
subscription payments.
The more data, the more accurate the timing
estimates can be: the best platforms on the
market identify specific 20 minute windows
every month which give merchants the best
chance of having their transaction approved.
This window changes depending on
customer segmentation, the type of
transaction, and a number of other factors.

27. Card Updater Services

28. Card Updater
Services
If the customer’s card details
were not valid, out-of-date, or
the user could not authenticate
the payment, your Account
Updater should help ease the
pain by rectifying the issue
before a payment is missed.

29. If you notify a user that their payment
method needs to be updated – expecting
them to stop everything and manually
re-enter their details – you run the risk of
making them question their subscription
and their loyalty to your service.
Account Updater enables recurring
payments, without repeated interruption.
It automatically updates your subscribers’
account details, turns payments that
would be declined into approved ones,
and supports a seamless user experience.
It avoids interruption of service without
requiring the cardholder to do anything.
Daily batch runs several
days in advance of the
payment request date to
retrieve updated or new card
details for a customer
Zuora Worldpay updater

30. Fighting Fraud
& Insights

31. Stolen identities can
be used to create fake
subscription accounts
online, giving the false
user free access
Risks
A stolen card can be
used to sign up for a
service, then the log-in
details sold on to
someone else.
Subscription-based
services provide a
relatively quick and
safe way for fraudsters
to test out stolen card
details
Issuers are extremely
cautious about approving
online payments. Out of
five transactions that
issuers decline because of
potential fraud, only one
will prove to be fraudulent.

32. 46% of merchants
say that friendly
fraud is damaging
their revenues
The Impact of Fraud
69% of service
providers
believe that increased
automation is the key
to fighting fraud
98% of digital
businesses feel
‘significantly affected’
by third-party fraud

33. Protect yourself through data analysis
Using a combination of supervised and unsupervised learning, analysing large databases
and drawing their decisions from a more informed viewpoint.
Running constantly in the background, data analysis of this quality will identify anomalies
in consumer behavior that could be a sign of fraud.
It goes beyond payments – analyzing login and browsing activity to assess the bigger
picture.

34. PSD2 & Subscriptions

35. In September 2019, the final implementation of PSD2 will arrive. This means
that every electronic transaction – including those related to subscriptions –
will require stronger customer authentication.
To subscribe to a service using a credit or debit card, subscribers will
typically have to go through extra authentication steps, usually presented to
them in the form of 3DS/3DS2.
PSD2
May 2019 Sept 2019 Jan 2020
3DS Flex PSD2 Fines for non-compliance

36. SCA Exclusions
Merchant Initiated Transaction (MIT)
Regulators have recognized that many
transactions are not truly initiated by
the cardholder but by the merchant.
Because the cardholder is not present,
extra authentication cannot be easily
applied. Recurring card payments are
expected to fall under this exclusion.
Recurring Exemption
PSD2 regulations allow for individual
transactions to be flagged as recurring
payments, and these will not require an
extra security step.
However, to qualify for this exemption the
transaction amount must remain the same
every month – so if you charge varying
amounts depending on level of service, this
route may not be useful for you.
.

37. The Future of Subscriptions

38. The Future of Subscriptions
Digital Currencies
As digital natives, millennials and members
of generation Z enjoy innovation, freedom,
and convenience – all commodities that
virtual money offers – suggesting that the
potential market for digital currency is only
set to grow.
APMs
Alternative payment methods are
also rising to meet the needs of
subscription consumers online, led
by eWallets and bank transfers.

39. The Future of Subscriptions
Biometrics
Fingerprint ID or facial recognition will be
used in more than 18 billion
transactions by 2021. The growing
popularity of smartphone payments and
biometrics is part of a wider trend but will it
be widely available to use when signing
up to subscriptions?
Voice Assistants
More than half of consumers—54%—
have not set up a payment option for
their voice assistant

40. Multi-geography expansion

41. Geographical Considerations
Payment Method 2018 2022**
eWallet 36% 47%
Credit Card 23% 17%
Debit Card 12% 11%
Bank Transfer 11% 6%
Other 18% 19%
Top eCommerce payment methods Globally
* Estimated **Forecasted

42. USA & Canada
Payment Method 2018* 2022**
Credit Card 34% 27
eWallet 20% 33
Debit Card 19% 19
Charge & Deferred
Debit Card
13% 11
Bank Transfer 6% 5
Popular eCommerce payment methods
* Estimated **Forecasted

43. APAC
Payment Method 2018* 2022**
eWallet 52% 66%
Credit Card 17% 11%
Bank Transfer 12% 11%
Debit Card 5% 3%
… … …
Popular eCommerce payment methods
* Estimated **Forecasted

44. EMEA
Payment Method 2018* 2022**
eWallet 52% 66%
Credit Card 17% 11%
Bank Transfer 12% 11%
Debit Card 5% 3%
… … …
Popular eCommerce payment methods
* Estimated **Forecasted

45. LATAM
Payment Method 2018* 2022**
Credit Card 45% 29%
eWallet 15% 18%
Debit Card 10% 16%
Bank Transfer 9% 8%
Post Pay 8% 15%
Popular eCommerce payment methods
* Estimated **Forecasted

46. Q&A

48. APAC
Australia & New Zealand
● Credit Card/Debit Card (MC,Visa,Diners, Amex) ,
● Bank Transfer (Direct Debit AU & NZ) for Electronic payments.
● CENTREPAY, BPAY, LOCKBOX (cheques) are external payment methods used by some
customers.
● Electronic Funds transfer ( EFT) - external payments. B2B scenarios.
● External payments via Apples store and Google play sync for digital subscriptions scenario.
● Paypal.
● Australia Post payments via barcode scan on invoice. Applied as external payment.
China - What makes China’s Alipay- and WeChat Payrun mobile payments ecosystem truly
unique is that it is driven by two tech companies instead of a traditional FI like a bank.
● Japan - Japanese consumers are steady in theirpayment preferences with no fundamental
change from last year. Cash is first at the physical counter, and credit cards remain the
second most popular card-present payment type. Use of eWallets trails other mature
commerce markets, both online and atpoint of sale.

50. Worldpay, Inc. is a leading payments technology company with unique
capability to power global, integrated omni-commerce. With an unmatched
technology platform and pre-built subscription billing integrations, Worldpay
offers clients a comprehensive suite of products and services globally.
Worldpay, Inc. was formed in 2018 by combining the No. 1 merchant acquirers
in the U.S. and the U.K., processing 40+ billion transactions annually through
300+ payment types across 146 countries and 126 currencies
Zuora Partners since 2015

56. Technology revolutions (move to end)
• Faster payments
• The shift from batch to real-time payments to faster digital payments.
• New Payments Platform (Australia)
• Faster Payments Service (United Kingdom)
• Social Media (China - Wechat, Alipay)
• Impact on collections, uk has on of the highest levels of unpaid invoice debt at 9%. Working with Worldpay
and Zuora, Sage UK, large software firm is looking to reduce time to collect to increase efficiency of
payment and reduce effort on collections
• Interesting new use cases
• Payments via voice assistants like Siri, Alexa, Google, etc.
• https://www.worldpay.com/uk/iq/voice-activated-devices-are-quickly-becoming-new-normal