2. Conversational Commerce
“Conversational Commerce refers to the intersection of messaging apps
and shopping”
“WeChat generates over $1.1 billion in revenue by
offering its 440 million users an all-in-one approach,
letting them pay their bills, hail taxis, and order
products with a text”
-TechCrunch
“Mobile Payments have grown from a niche market
to a potential $700-$800 billion opportunity by 2017”
-Deloitte
3. How can VISA build a winning solution and be a key player
in the global landscape of conversational commerce?
THE CHALLENGE
6. What do they need?
- Security
- Convenience
- Legitimacy
- Connectivity
- Prosumer Status
- Legitimacy
7.
8.
9. Keyboard Application
Works across Messengers
Variety of Payment Uses
Peer-to-Peer
C2B, B2C
Bill Pay
Apple Pay
Keyboards mean Big Data
Connectivity
IoT
“The Keyboard is key to conversational
commerce”
VISAccess Keyboard
14. Positions & Capabilities Value Barriers & Moats
• World’s largest retail
payment network
• Partner network
• VISAccess
• Visa developer
platform
• Keyboard works
across all applications
• Fast follower into
conversational
commerce
SUSTAINABLE
COMPETITIVE ADVANTAGE
• For Merchants:
• Instant authorization
will increase spend
• For Consumers:
• Network effect
• Convenience,
reduced friction
• Accessibility
• Security
• For Visa:
• Capture merchant
value
• Strength and Scale of
partnerships
• On-demand payment token
generation
• Brand Loyalty
• Unbanked markets
• Data Analytics
• R&D investment
• Localized “lablets”
COMPETITIVE ADVANTAGE
15. A
B
C
10, 15
5, 5
0, 0
6, 20
FAST FOLLOWER
Sequential Game Theory
• Later moves mean more info
• Differentiating strategic positions
• Better forecasting & planning
18. LONG TERM POTENTIAL
Africa & SE Asia
• Increased e-commerce
• GDP & small business growth
• Partnership with WHO & UNDP
• SMS communication, diagnosis, & transaction
for antibiotics (Malaria, ARVs, Dengue, etc.)
• Drone delivery of antibiotics
• Enhanced quality of life
19. Visa Developer APIs:
• Geo-location
• Real-time alerts
• Automatically programmed
transactions
Combined APIs Application:
1. Automatic contactless payments from smart-phones
(Ex. City Metros, road pay-tolls )
2. Wearable technologies (synchronize agenda with payments)
Developed World: IoT
20. Internet of Things
• Conversational
Commerce will change to
a conversation between
devices
• When you enter the
Subway, you program
your phone to pay your
fare… and VISAccess is
there
21. Smart PhonesFeature Phones
Unbanked
Banked
• Many competitive
options
• No substitutes
• Many new entrants
• Consumer has
bargaining power
• Few competitive
options
• No substitutes
• Many new entrants
• Consumer has
bargaining power
• Few competitive
options
• No substitutes
• Many new entrants
• Consumer has some
bargaining power
• Many competitive
options
• No substitutes
• Many new entrants
• Consumer has
bargaining power
SCENARIOS
22. MOVING FORWARD
TRANSFORM TECHNOLOGY
o Fast follower advantage
o 6 month smartphone keyboard launch
o Free on app stores
o Integration of VISAccess through all
communication channels via devices
DEEP PARTNERSHIPS
o Developing world: Africa & SE Asia
telecom companies
o Launch VISAccess SMS for feature
phone
o Developed world: Apple & Android
o VISAccess keyboard native to phones
EXPANDED ACCESS
o Re-engage banked
o New market: unbanked
o Enhanced ease
o Life-changing access
DIGITAL LEADERSHIP
o Constant innovation
o Surpass competition
EMPLOYER OF CHOICE
o Innovative leadership in
$700B market is
attractive
Positions and Capabilities:
Worlds largest retail electronic payments network
Phenomenal scope and scale – 15,000 financial institutions, 30 million merchants, 150 million transactions daily
Market leader
Visa developer platform
Single global company since acquiring Visa Europe
Visa Access – generic keyboard to be used for all interfaces via mobile digital channels
Fast follower into conversational commerce, insights gained and gaps identified
Value:
Positive and long-standing merchant relationships, instant authorization via Visa Access will increase spend amount. Capturing merchant value as their price is more inelastic
Consumers – network effect, almost every merchant accepts Visa
Convenience, rewards and security for consumer
Fraud exposure is limited. Real time end of day risk management service.
Reputation of brand
Reducing consumer pain points for transactions.
All market segments have access regardless of stage in pyramid
Sustaining Change:
Entry may be easy but rivals will take years to build scale of decentralized network to compete directly (beyond Mastercard)
Strength of partnerships and relationships are not easily replicated
Competitors often compromise security to trade lower fees and visa will continue to invest and offer the highest level of security whilst competitors gaps are exposed and investigated
Reputation will grow as visa becomes more established in the emerging markets and digital platforms.
Inclusivity of low-end (unbanked) market segment and adolescence will lead to new business and greater market share
Brand loyalty – engaging consumers from younger age; also focus on continuous positive consumer experience and to focus on employee satisfaction.
Data analytics – able to sell the data collected (keyboard) to other companies who can target the consumer needs effectively.
Strategic moves and positions VISA needs to make to roll this out (ie. Next steps)
