U-commerce: Fueling economic growth with electronic payments

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U-commerce Fueling economic growth with
electronic payments

• Mark Burbidge, SVP and GM, e-Visa

Joint UNCTAD - UN ESCAP Asia Pacific Regional
Conference 21 November 2002
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Every economy needs secure, efficient and
reliable payments to grow
Electronic Payment Enables Commerce
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Visa Worlds Largest Payments Engine
40 payments each second in Asia Pacific
805,000 ATMs worldwide
One billion cards in use globally
More than 21,000 members worldwide
More than 50 of e-commerce transactions are
made with Visa
US2.3 trillion in global card sales in 2001
25 billion transactions a year
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Universal Commerce
anywhere, anytime, any way
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Putting the Infrastructure in Place
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Defining a Secure Payment
Authentication
Confidentiality
Integrity
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Online Retail Market is Growing
Forecast B2C Commerce Market Size Asia Pacific
(exclude Japan)
USM
Source IDC 2002
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Trend Internet Usage Experience
Regular Internet Users Shopping Experience
Source www.consult (data for Hong Kong)
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Trend Online Shoppers are Young
Percentage of Online Shoppers by Gender
Female
Male
0
1
Less than 15
5
8
15 to 19
20
34
20 to 24
33
33
25 to 29
22
16
30 to 34
11
6
35 to 49
1
4
40 to 44
2
0
45 to 59
1
50 to 54
Over 55
Source www.consult, data for Taiwan
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Trend Women are Catching Up
Internet users (China)

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Trend Proven Market Place
Repeat Purchasing by Product Segment

Source www.consult, data Hong Kong
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Consumer Concerns
Concerns About Online Shopping
Source www.consult
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Higher Security Means Higher Spend
Verified by Visa Average Transaction 2002 Averagee-Commerce Transaction Percent Difference
Issuer A Credit Debit 130 118 99 60 32 96
Issuer B Credit Debit 227 140 138 63 64 121
Issuer C Credit 207 89 133
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Prescriptions

• Embrace payments technology for economic
  development
• E-payments remove friction, increase efficiency
  gt strengthen the economy
• Support evolving structure of u-commerce
• Strengthen domestic banking system
• Review and align infrastructure with
  opportunities
• Eliminate regulatory barriers to innovation

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Summary

• Electronic payments enable commerce and economic
  growth
• Universal commerce