reportofpaymentcardacceptanceproject

1、qualitative report for visapayment card acceptance in sanyaprepared for: visaprepared by：nielsendate：oct, 2011title of presentation2copyright 2010 the nielsen company. confidential and proprietary.gentle reminder this report is based on qualitative research. qualitative research seeks to understand

2、the views, attitudes and opinions of the selected sample thus, as with all qualitative research, we make our usual reminder that the findings are not to be interpreted in any quantitative sense. instead, they reflect the attitudes and opinions on the subject under study among a small yet relevant sa

3、mples of individuals these findings are only to represent the thoughts of the respondents who took part in this study3copyright 2010 the nielsen company. confidential and proprietary.table of contenti.research recallii. detailed findings merchantcurrent development situation overall perception of di

4、fferent paymentskey triggers and barriers of different industriesaccommodationshoppingtransportation entertainment restaurant acquirerdevelopment strategy in card paymentmerchant, acquirer and card association current relationship and communication channel key development process of card payment per

5、ception of visaiii. conclusion & recommendation4copyright 2010 the nielsen company. confidential and proprietary.research recall research objectives research methodology5copyright 2010 the nielsen company. confidential and proprietary.-to map the challenges and opportunities related to the merchant

6、development, to develop solutions that can be implemented with banks and merchants. -the ultimate goal is to increase visa card usage and revenue in tourism city of sanya-acquirers:-to understand the challenge and opportunity of acquirers on card payment development-merchants:-to understand usage an

7、d attitude of merchant towards card payment-to find out triggers and barriers of card acceptance and usage-to understand perceptions of merchants on visa as card payment associationmarketing objectivesresearch objectivesresearch objective6copyright 2010 the nielsen company. confidential and propriet

8、ary.merchant in-depth interview stage 2qualitativemethodologyacquirer in-depth interviewsstage 1to understand usage and attitude of merchant towards card paymentto find out triggers and barriers of card acceptance and usageto understand perception of merchant on visa as the payment card association

9、companyto understand support needed from visaqualitative methodologyto learn the market condition of foreign currency card payment in sanyato understand the strategy of acquirers towards targeted merchants developmentsto understand the challenge and opportunity of acquirers for merchant developmentt

10、o understand support needed from visaresearch methodology 7copyright 2010 the nielsen company. confidential and proprietary.respondents criteria - merchant the respondent target is the decision maker (s) of the payment method used in particular outlet (the respondent knows exactly the store operatio

11、n and what kind of payment policy they have) the selected respondent (s) will represent the chosen outlet. the demographic profile of the selected respondents in terms social economic class, age, gender or marital status will fall naturally (no quota) the selected outlets will comprise of current ca

12、rd acceptor and current non-acceptor but potential users of visa. considering that we target to take a general understanding of the major industries at this stage, we propose the below sample design. groupacceptornon-acceptortransportation11shopping22accommodation11 restaurant11 entertainment11total

13、668copyright 2010 the nielsen company. confidential and proprietary.respondents criteria - acquirerbank interview1111total4all respondents will meet the following criteria managers or above in charge of developing payment card market in merchant have been working in the position for at least 2 years

14、 having rich industry experience9copyright 2010 the nielsen company. confidential and proprietary.detailed findings- merchant 10copyright 2010 the nielsen company. confidential and proprietary.merchantkey findingskey findingscurrent development situationcurrent development situationoverall perceptio

15、n of different paymentkey triggers and barriers for different industriesaccommodation shoppingtransportationentertainment restaurant 11copyright 2010 the nielsen company. confidential and proprietary.fast development in tourism with fiercer competition, more regulation and higher quality as becoming

16、 an “international tourism island” general speaking, thanks to the governments policy of “develop sanya as an international tourism island”, more and more domestic tourists and foreigners (from russia, korea, japan, hong kong and macao etc,.) are rushing to sanya. however, compared with domestic mar

17、ket, the glowing is slowing due to the worldwide economic crisis. hence, all kinds of industries spring up like mushrooms but with much changes afterwards more fiercer competition, strive for lowing down the cost more regulation on industry development from government and have more normalization wit

18、h more high-end consumers looking for high quality service12copyright 2010 the nielsen company. confidential and proprietary.merchantkey findingskey findingscurrent development situationoverall perception of different paymentoverall perception of different paymentkey triggers and barriers for differ

19、ent industriesaccommodation shoppingtransportationentertainment restaurant 13copyright 2010 the nielsen company. confidential and proprietary.overall perception of cash payment cash is still the most popular payment method for merchants in china market, with its traditional strengths and weakness. n

20、o extra cost for customers payment （没有额外的支出成本）（没有额外的支出成本） fast capital turnover （资金周转迅速）（资金周转迅速） can pay whenever or wherever (随时随地进行付款随时随地进行付款) instantaneous payment receipt (即时到帐即时到帐) not easy to differentiate the cash (较难较难辨辨别货币别货币的真的真伪伪) produce labor time cost and fault (产产生人力成本及人生人力成本及人为错误为错误）

21、 ） hard to give change (找零困找零困难难) risk for cash storage and transaction (存在存放及交易存在存放及交易风险风险) (foreign currency) adjust the payment according to the exchange rate14copyright 2010 the nielsen company. confidential and proprietary.cash payment is more direct no extra cost for customers payment （没有额外的支出

22、成本）（没有额外的支出成本） fast capital turnover （资金周转迅速）（资金周转迅速） can pay whenever or wherever (随时随地进行付款随时随地进行付款) instantaneous payment receipt (即时到帐即时到帐) not easy to differentiate the cash (较难较难辨辨别货币别货币的真的真伪伪) produce labor time cost (产产生人力成本）生人力成本） hard to give change (找零困找零困难难) risk for cash storage and tran

23、saction (存在存放及交易存在存放及交易风险风险) (foreign currency) adjust the payment according to the exchange rate“when you apply cash payment, you dont need to pay extra fee to anyone else, this is very important to us.” tea house “well, its so important that there are enough money for us, as we need money to purch

24、ase materials for sales. with cash payment method, i dont need to go to bank for money.” restaurant “most of the time, our customers wont go to our store for service. cash payment can allow them to pay us anytime anywhere.” car rental “i can get the money immediately and be able to get to know how i

25、 earn by day .” restaurant the competitive edge of cash payment is no more extra cost and convenient (pay whenever and wherever), which is the most important for some industries, e.g. restaurant and transportation 15copyright 2010 the nielsen company. confidential and proprietary. no extra cost for

26、customers payment （没有额外的支出成本）（没有额外的支出成本） fast capital turnover （资金周转迅速）（资金周转迅速） can pay whenever or wherever (随时随地进行付款随时随地进行付款) instantaneous payment receipt (即时到帐即时到帐) not easy to differentiate the cash (较难较难辨辨别货币别货币的真的真伪伪) hard to give change (找零困找零困难难) risk for cash storage and transaction (存在存放及

27、交易存在存放及交易风险风险) (foreign currency) adjust the payment according to the exchange rate“when come to a big amount of cash, you need to pay much attention to its fake.” car rental “it takes time for us to count the total and go to the bank for deposit.” spa“for us, its not easy to make changes for our cu

28、stomers and it takes time to give changes. ” supermarket and specialty“after consumers payment, we need to take them on the way to go and it has risk for stealing .” car rental “we accept foreign currency, but its hard to follow the exact exchange rate, sometimes, we might lose some money for the hi

29、gher exchange rate.” jewelry store to take advantage of card payment, you can highlight the key barriers of cash payment “produce labor time cost and fault” and “not easy to differentiate the cash” but cash payment lacks of security and convenience produce labor time cost and fault (产产生人力成本及人生人力成本及人

30、为错误为错误） ）16copyright 2010 the nielsen company. confidential and proprietary.not high awareness and clear perception of card payment due to from this study, we find that most merchants in sanya do not have clear perception of card payment, even some acceptors have poor knowledge of card payment. and

31、some misunderstandings come from non-acceptors due to card payment method still develops slowly and is not so popular amongst consumers and merchants for some industries in sanya lack of information delivery from acquirers, like bank etc. hence, more information about “card payment” needs to deliver

32、 to merchants from acquirers to correct their misunderstanding or supplement their knowledge about card payment as its the premise of development“what? i dont know we can let foreigners to pay via pos.” hotel “do i need to go to the bank for reconciliation of bank account for pos transaction? tea ho

33、use17copyright 2010 the nielsen company. confidential and proprietary.overall perception of card payment save payment time (convenience) and reduce human fault induce more purchase/stimulate consumers purchase intention enhance stores positive image safe/fair deal produce pos transaction fee not ins

34、tantaneous payment receipt/slow capital turnover not instantaneous and inconvenient reconciliation of bank account for pos transaction not easy to differentiate the real card can not pay whenever and wherever build up initial trust between consumers and merchants risk for “whether can receive the mo

35、ney, double count/wrong payment due to wrong operation”18copyright 2010 the nielsen company. confidential and proprietary.merchantkey findingskey findingscurrent development situationoverall perception of different paymentkey triggers and barriers for different key triggers and barriers for differen

36、t industriesindustriesaccommodation shoppingtransportationentertainment restaurant 19copyright 2010 the nielsen company. confidential and proprietary. although the general perception of card payment are similar amongst different sectors of merchants, key triggers and barriers of card payment usage a

37、re somewhat differentiated from different industries due to different industries characteristics, which can impact different merchants on card payment acceptance. as a result, the following part would like to line out what are the key triggers and barriers for different industries so that visa can i

38、mplement marketing support on increasing card payment usage for targeted merchants in sanya accordingly. note to this part 20copyright 2010 the nielsen company. confidential and proprietary.snapshot of current payment situation - shopping shopping industry develops fast, especially specialty store,

39、jewelry and clothing and garment etc. which have local characteristic that can attract more tourists. need for payment convenient to consumers fast payment method easy to monitor the account/clear accounting list by purchase/day/week current payment pattern cash card payment shopping card current po

40、licy encourage cash payment foreign currency exchange when consumers hesitate purchase or not, proactively recommend card payment21copyright 2010 the nielsen company. confidential and proprietary.key triggers for card payment usage enhance positive image stimulate purchase intentionsave payment time

41、 (for various products provided stores) with card payment, consumers would like to purchase more in-store for low awareness about how much they really spend in-store without card payment method, those without enough money need to bear in mind and have limitation on purchase “when consumers hesitate

42、to buy or not, especially for more expensive product, i will recommend them to apply card payment. and this is very helpful.” jewelry store to trigger more shopping merchants to use card payment, its suggested emphasizing its benefit on “stimulate consumers in-store purchase” visa can take its advan

43、tage as an international brand and deliver the benefit to merchants help to increase the positive image of merchants and help to attract more high class consumersmore significant more positive image will build up with better service, more considerate high class feeling “if we do not provide card pay

44、ment method, consumers would think my store is out of date and has poor service .” specialty store “when we offer visa payment, our store becomes more international. “ jewelry store no need to give changes and reduce human fault avoid getting the fake money “our cashier do not need to spend much tim

45、e on giving changes.” supermarket 22copyright 2010 the nielsen company. confidential and proprietary.key barriers for card payment usage (1) high demand on instant and convenient reconciliation of bank account for pos transaction can not get the reconciliation of bank account for pos transaction wit

46、hin a day currently without a clear accounting list per purchase and the total amount per day/week detail account list provided need to go to bank for reconciliation of bank account for pos transaction misunderstanding of card payment “most of the time, we need to get todays account after tomorrow 0

47、 oclock, i am not able to check whether something wrong with my total account .” supermarket“i think i need to go to the bank for reconciliation of bank account for pos transaction, which is too trouble for me.” apparel store to overcome their concern about the reconciliation of bank account for pos

48、 transaction, acquirers can provide account list with details down to purchase by day/month level “online reconciliation of bank account for pos transaction system” can eliminate the barrier of “inconvenient reconciliation of bank account for pos transaction” visa should provide the most updated for

49、eign credit cards introduction including how to differentiate the card、 、types of card via acquirers training for merchants more significant (especially for foreign credit card) not familiar with the foreign credit cards without updated introduction from acquirers poor knowledge/skill about card dif

50、ferentiation “it happened once that it can still be used even its a fake card. at last, we lost money.” supermarket “we do not know what exact foreign card can be used, whats worse, we don not know how many types of card.” supermarket not instantaneous and inconvenient reconciliation of bank account

51、 for pos transaction not easy to differentiate the real cardproduce pos transaction feeslow capital turnover23copyright 2010 the nielsen company. confidential and proprietary.key barriers for card payment usage (2) the extra payment rate 2% is not affordable for some merchants, e.g. merchant type: a

52、pparel store etc not high class/unbranded store per purchase amount: just within few hundreds “i think the extra payment rate 2% is too high for me, which makes me unprofitable.” apparel store“i think the purchase amount is just between one or two hundreds, so there is no need for my consumers to us

53、e card payment.” apparel store more significant not instant payment receipt and limitation on cash taken out from account per month its much faster to receive the payment for private account than business account of pos transaction improve the speed of payment receipt “i know when its private accoun

54、t, they can receive the money tomorrow, but the business amount takes more time.” jewelry store “i can not take out all the money i earn from the account per month, there is a limitation on the money taken out, that i can not have enough money to purchase enough materials.” jewelry store not instant

55、aneous and convenient reconciliation of bank account for pos transaction not easy to differentiate the real cardproduce pos transaction feeslow capital turnover for acquirers, its not easy to target those stores with less various product provided/small purchase amount. hence, more promotion activiti

56、es need to attract these merchants. 24copyright 2010 the nielsen company. confidential and proprietary.snapshot of current payment situation - accommodation the accommodation industry in sanya trends to develop as more international and high quality to attract more high-end consumers, e.g. foreigner

57、s need for payment more flexible to meet consumers need from different countries safe and simple for cashier fast payment receipt and capital turnover current payment pattern cash card payment current policy (large scale/chain）can apply different payments according to consumers requirement (small ho

58、tel/inn) apply credit card for pre authorization as deposit, then encourage cash payment after servicefor stay in 1-2 days, merchants would like to receive cash rather than get payment via card foreign currency exchangetitle in here25copyright 2010 the nielsen company. confidential and proprietary.k

59、ey triggers for card payment usage safestimulate purchase intentionenhance positive image (with full service provided) with pre authorization of deposit, consumers can have different service sectors via their room number without instant payment stimulate purchase from other service low awareness abo

60、ut how much they have spent“frankly speaking, when consumers do not need to pay when they have service, they tend to consume more and would like to experience different service. because its more convenient for them .” local chain hotel for some large scale/international/chain hotel, they expect that