Aeromexico and Adyen - Transformation of E-Commerce Payments
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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.
Aeromexico and Adyen - Transformation of E-Commerce Payments
- 1. Digital Transformation and the Role of Payments ATPS Worldwide, Berlin, 3-5th May 2017
- 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
- 6. Digital transformation with an unexpected discovery
- 7. Heritage
- 10. Digital transformation • Insourced, staff 5 > 80 • New website • API • New check-in kiosks • Chatbot, AI • Doubled Web as % of sales
- 11. Our e-commerce goals Best Latin American airline in e-commerce Global top 10 airline in digital innovation Customer Experience BrandProfit
- 12. So we must provide an Omnichannel Experience
- 14. The biggest surprise of all…
- 15. Our payments transformation • Architecture • Local acquiring • Monitoring • 3DSecure & Risk • Results • Future
- 16. Aeromexico’s architecture before Aeromexico.com Front end Aeromexico API SABRE back end 1 acquirer – MX 1 acquirer - US Issuing banks Cybersource Other Connections (Mexico cash) 3DS
- 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
- 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
- 26. Aeromexico… the world’s most advanced airline chatbot! m.me/AeromexicoMX
- 27. Coming soon… Payment inside of Messenger • With Visa assets e.g. • Cybersource Decision Manager • Tokenization • Visa Checkout • Secure, PCI • High approval rate • Reconciliation • Automatically issue ticket • Confirmation page and email
- 28. Q and A ATPS Worldwide, Berlin, 3-5th May 2017