All innovations solve problems. These problems may not be critical or high-impact, but every innovation is an improvement to a company or sector that creates a better way of doing things across the market. Find out about PayPoint's process in solving problems and generating innovation internally here:

1. in payments innovation
20 years

2. The three tenants of innovation
Developing a culture of innovation
True innovation sparks a step change in the way we go about doing something, from a
technological advance to a shift in organisational structure.
But innovation doesn’t just happen – it needs the right mindset and company culture to
develop breakthrough innovations.
Success or failure are both learning
experiences. The Wright brothers didn’t
succeed at their first attempt at flight but
learned from their failures and persevered
until they succeeded
By staying alert to innovations and
industry developments, companies can
unearth opportunities to develop their
own innovations.
Having spotted the high price point of
smart phones, OnePlus developed their
flagship killer smartphone at half the price
of the competition
Companies that collaborate together are
able to leverage each other’s expertise to
develop innovative products and solutions
that would otherwise be impossible to
achieve. A great example of this is Coca-
Cola and Heinz who collaborated to
develop more sustainable containers
Learn from every
experience
Identify and seize
opportunities
Collaborate to
innovate

3. The 4 types of innovation
Innovation springing
from a fundamental
review of an industry’s
business model
When a company
innovates their core
or enabling processes
to deliver competitive
advantage
When a company
delivers true innovation
to the product range or
method of delivery that
creates a shift sector
change
When a company looks
to change the way it
engages with target
audiences, incorporating
channel choice, brand
positioning, and
customer experience
OfferingBusiness model Process Delivery

4. Drivers of innovation in payments
Problem solving
Many innovations arise from looking to change an unsatisfactory
practice or way of doing things
External forces like the 2008 financial
crash can produce incredible innovation,
with sharing economy icons like Uber and
Airbnb a standout example of service
innovation in the face of adversity
Technological innovation often derives
from eliminating the need for a certain
job, role, or activity. Auto-save apps like
Acorns or budgeting tools like Toshl look
to facilitate financial responsibility without
the hassle
Just as the Ford Model T succeeded to
the horse-drawn carriage, sometimes
payments systems too need drastic
overhauls in order to perform to
expectations, with legacy systems being
replaced with newer ones, often taking
advantage of cloud technology or similar
breakthroughs
Negative situations Eliminating needs Performance barriers

5. Drivers of innovation in payments
Customer insight
Customer demands, both known and hidden,
are also a consistent driver of innovation within markets
Innovations driven by evolution in customer demand include the
drive for personalisation across the payment sector (covering
bespoke rewards packages and customised user interface), as well
as the drive for increased convenience and flexibility, with the Tesco
Clubcard a leading example of personalisation
Sometimes customers themselves don’t yet know what their
newest demands may be. In the payments landscape the increasing
use of behavioural economics and nudge theory is a great example,
tracking behaviour trends and providing new products or solutions
before the demand exists. David Cameron’s government established
a Behavioural Insights Team in 2012 to explore just this
Evolving customer demand Hidden customer demand

6. What innovations have we seen in 20 years?
PayPoint has seen many important innovations within the
payments sector over the past two decades. They have
been driven by a number of different factors, but all have
resulted in driving the sector forward, delivering better
solutions for customers, suppliers, and retailers.
Here we identify a few, and outline why they have been so
important in the evolution of the payments ecosystem we
know today.

7. The journey through payments
Innovation past
The last 20 years have seen many important innovations
across the payments sector which have changed the landscape
Originally trialled in 2003 and introduced in 2006, a decade of
adoption has now reached some 75% of UK retailers, and has
drastically improved security and speed of sale
Within the prepay sector, there have been a number of steps taken
diversifying and advancing innovations in payment gathering.
Token meters, gas smart cards, and electricity keys have all been
developed to collect payments
Chip & Pin Prepay sector

8. With 76% of UK adults owning a smart
phone, and UK consumers looking at
smartphones over one billion times every
day, it is no surprise that payments have
embraced mobile as a platform
The rapid adoption rate of contactless
payment underlines the importance of
Point of Sale (PoS) customer experience,
as slick transactional processes can bring
consumers and suppliers closer together
From smart meters and
auto-charging on toll roads to branded
ventures like the Amazon Dash
button, integration and connectivity
is delivering payments solutions into
every aspect of life
Mobile first Contactless Internet of things
The journey through payments
Innovation present
Our current payments sector is prioritising integration,
convenience and customer experience above all

9. The journey through payments
Innovation future
Building on our extensive experience, the future of
payments has yet more exciting developments in store
Bitcoin has seen a remarkable growth since its inception in 2008,
from each Bitcoin being worth 4p to their current value of over
£460 – the anonymity and flexibility of blockchain technology has
interesting implications for the role of banks and security in the
coming years
There are a wide variety of exciting security initiatives in
development looking to address growing concern over financial
security. Biometric sensors building on the prevalent touch ID
identification, and even gait recognition to identify you by your
walk aren’t far from more general roll-out, and this can only increase
confidence in payments systems
Virtual currency Next-gen security

10. PayPoint’s four-step process to innovation
All innovations solve problems. These problems may not be critical or
high-impact, but every innovation is an improvement to a company or
sector that creates a better way of doing things across the market.
At PayPoint, we have a simple four-step process which informs how we go
about solving problems and generating innovation internally:
1. Define the issue
F Clarity is crucial: identify the problem and any connected
problems associated with it
2. Develop a framework
FIdentify the roots of a problem, including any previous
attempts at solution, taking on learnings from history
F Consider the problem within its own context, as well as the
wider impacts that solving this problem might solve
F Ensure clarity of purpose by phrasing challenge questions
to avoid words like “faster”, or “better”, which will guide you
towards vague answers
F Identify decision-makers, whether they are upper
management or the salesforce at the coalface, make sure
the right people are in the room
3. Generate some ideas
F Problem solving is a fundamentally creative process, and
true innovation comes from new ideas created within a
framework (again, mission clarity is central to ensuring
focused creative output)
4. Pick and implement the best
F Once you have a number of creative solutions, the pre-
identified decision-makers should pick the best ones, and
begin to outline the path towards implementation

11. PayPoint keeps modern life moving
across the uk
Energy Transport Cash out Parcels Contactless
payments
Since launching
MultiPay in 2014 with
Utilita’s, PayPoint has
given their customers
greater control
over energy usage,
and grown Utilita’s
customer base rapidly
Delivered by PayPoint
and ACT in November
2014, over a million
tickets have now been
sold on Walrus cards,
ITSO Mersey Transport
smart ticketing
scheme covering bus,
rail and ferry travel
Revolutionising how
energy companies
refund, reimburse
or issue funds to
customers, including
the annual energy
credit and Warm Home
Discount activities
Solving a huge
consumer headache
of waiting in for
parcel deliveries and
providing convenient
click and collect/
return services at
6,000 local stores
10,000 contactless
enabled card payment
machines making the
UK’s largest Apple Pay
enabled network

12. Thank you
www.paypoint.com