Payments Disruption

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  1. 1. PAYMENTS VALUE CHAIN? IS THERE A DISRUPTION IN THE
  2. 2. PAYMENTS' KEY PLAYERS VISA & MASTERCARD PLAY A KEY ROLE INTEGRATING MERCHANTS AND CONSUMERS WORLDWIDE Source: http://www.pymnts.com/
  3. 3. BASIC FEE SCHEME BEHIND A SIMPLE CARD 'SWIPE', THERE IS A COMPLEX FEE SCHEME Source: http://www.pymnts.com/
  4. 4. WORLDWIDE PERSPECTIVE GLOBAL STANDARDS COEXIST WITH LOCAL SPECIFIC BUSINESS MODELS Example up to 15%APR can be above 400% ~40% Market share of top 3 issuers ~85% 1-3 days @ 3% Time Merchants receive $ ~28 days @ 3% or next day @ 5% Other differences in Brazil +50% of transactions made in installments (the merchant will receive in installments or pay addl 2-3% per month to anticipate Acquirers anticipate card receivables by 2-3% discount per month MERCHANT PAYS ADDITIONAL ~2% TO RECEIVE $ NEXT DAY Source: author analysis
  5. 5. NEW KIDS ON THE BLOCK WILL THE NEW PLAYERS REALLY DISRUPT THE PAYMENTS' ECOSYSTEM? Source: author analysis
  6. 6. ENTREPRENEURSHIP OPPORTUNITIES WHAT ARE THE OPPORTUNITIES FOR ENTREPRENEURS? How different scenarios affect the opportunities for entrepreneurs? Will EMV and NFC adoption in the US change customer behavior? How retailers will evolve in their omnichannel strategy? How fast the new players will grow overseas? How the incumbent players are reacting to the new entrants? Source: author analysis
  7. 7. HENRIQUE CASTRO hcastro@stanford.edu