全球支付产业：在不断变化的商户需求中比较Adyen和Stripe的价值主张

1、Global Research | 16 April 2021Global PaymentsExpert call: Comparing Adyens and Stripes value proposition amidst changing merchant needsExpert call affirms our view of Adyens strong tech stackOn 30th March, we hosted a call with a former Square (Not Rated) employee on Comparing Adyens and Stripes va

2、lue proposition amidst changing merchant needs to help us frame the payments landscape (traditional vs. neo-players) and help us understand who fits best to different merchant verticals (quick-service, marketplaces, etc.), but also puts Adyen (Buy) in context with privately-held Stripe, post the lat

3、ters$95bn valuation (link). In this note, we provide our key takeaways and the full transcript. Post the call, we feel affirmed in our Buy thesis on Adyen, which is based on continuous success in e-commerce, but with the narrative slowly changing towards unified commerce, where we see Adyens offerin

4、g being ahead of its competition validated by wins at complex merchants like Subway, Footlocker and latest win H&M.Key challenges todays merchants are facing and how neo-payments providers answerAccording to the expert, merchants are facing the following challenges from changing consumer behaviour:

5、(1) the shift to e-commerce, which saw another boost due to the pandemic last year; (2) the rise of omni-channel solutions (combination of e-commerce and in-store experience) with consumers demanding full flexibility regarding shopping experience; (3) the rise of mobile-shopping has increased the cu

6、stomized sales approach, which current payment solutions cannot meet - traditional payment data does only include basic payment data, while new solutions providers (Adyen, Square, etc.) connect the tokenized card details to the CRM tool - clienteling.Adyen and Stripe received a very strong review on

7、 their capabilitiesThe expert spoke highly about both neo-payments players suggesting both are liked by their customers, but it depends on which type of customers and what preference one has. In the experts view: Adyen typically acts as an account syndicator, where it creates an account for the merc

8、hant, while Stripe is an aggregator, meaning it acts on the merchants behalf as the merchant of record. As such, Stripe takes over various responsibilities from the merchant, which makes Stripe more attractive to smaller merchants, while Adyen appears to the expert as more customizable allowing merc

9、hants to fit payments to their internal processes ideal for enterprise merchants with a strong technology focus.What the expert said about different payments playersThe expert emphasized that the world is a very big place hosting multiple businesses with individual strategies and needs. As such it a

10、llows different payments companies to coexist. However, he pointed towards the need by traditional players to accelerate innovation or to consolidate to close the product gap. On Square, he thinks it has the best omni-channel solution among US-players, while Shopify offers by far the best online sto

11、re solution in the world. On Stripe, the expert said is by far the best e- commerce player and your best website player, and with Adyen you have a full stack, and a very comprehensive set of payment capabilities. EquitiesEurope including UKTechnologyHannes LeitnerAnalyst HYPERLINK mailto:hannes.leit

12、ner hannes.leitner+44-20-7568 7085Michael BriestAnalyst HYPERLINK mailto:michael.briest michael.briest+44-20-7568 8367Saul MartinezAnalyst HYPERLINK mailto:saul.martinez saul.martinez+1-212-713 2491Mariana TaddeoAnalyst HYPERLINK mailto:mariana.taddeo mariana.taddeo+55-11-3513 6512Tom BeadleAnalyst

13、HYPERLINK mailto:tom-g.beadle tom-g.beadle+61-2-9324 2126Olivia Nesnay Associate Analyst HYPERLINK mailto:olivia.nesnay olivia.nesnay+1-212-713-3169Jad YounesAnalyst HYPERLINK mailto:jad.younes jad.younes+44-20-7568 3577This report has been prepared by UBS AG London Branch ANALYST CERTIFICATION AND

14、REQUIRED DISCLOSURES, including information on the Quantitative Research Review published by UBS, begin on page 18. UBS does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect

15、 the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.Global PaymentsUBS ResearchPayments companies mentioned: Adyen, Stripe (private), Worldpay (FIS; not covered), Square (not covered), PayPal, Fiserv (not covered), First

16、Data (now Fiserv), Visa, MasterCard, American Express, GoCardless (private), Melio (private), Tencent, Alibabas Ant, Afterpay, Affirm (not covered)Merchants mentioned: WIX (not covered), Subway (private), Footlocker (not covered), H&M, McDonalds, DoorDash, GitHub (private), AirBnB (not covered), eBa

17、y, Deliveroo (not covered), Uber, Just Eat, Walmart, AmazonHardware vendor mentioned: Verifone (private), NCR (not covered)Conference Call TranscriptWe present below a transcript from our recent call with an ex-Square employee. We have edited the transcript and highlighted (underlining) all mentione

18、d companies. The opinions expressed by the expert herein do not necessarily reflect the views and opinions of UBS. UBS accepts no responsibility for the accuracy, reliability or completeness of the information and will not be liable either directly or indirectly for any loss or damage arising out of

19、 the use of this information or any part thereof. In the Q&A section, we have redacted the identity of any investors who asked questions on the call. For easier navigation, we show mentioned companies, quotes or key topics on the right side of the respective paragraph. To aid readership we also prov

20、ide below a brief glossary of shortened terms that were used in the call:UX = user experienceAPI = application programming interface BNPL = Buy Now Pay LaterPOS = Point of salesTitle of Meeting: Comparing Adyens with Stripes value proposition amidst changing merchant needsUBS hosts: Hannes Leitner,

21、Equity Analyst Technology SoftwareGuest speaker: former employee at SquareDate: Tuesday, 30th March 2:30pm London timeHannes Leitner (UBS): Thank you, Chris. Hi, everyone. This is Hannes Leitner, Equity Analyst for Payment and FinTech here at UBS. Im delighted to introduce todays guest, former emplo

22、yee at Square, who will help us understand better latest payment trends at merchants and payment companies, and to better contrast most talked places like Adyen and Stripe. But before we start, some housekeeping stuff. In todays call there will be no discussion of any confidentially restricted or no

23、n-public information and views may differ from discussed companies. Secondly, if youd like to ask a question please either hit star one or email me, HYPERLINK mailto:hannes.leitner hannes.leitner. And now, lets get on.Thank you, Mike, for joining. Could you please briefly introduce and give the audi

24、ence a little bit of background what your experience was at Square?Expert: Sure. . Prior to that I was three years Head of Global Sales at Square, where I ran all of our actual sales, plus partnerships, business development, account management, and pretty much any aspect of the international go-to-m

25、arket and upmarket strategy there and the big push that we had into larger merchants. And that included our e-commerce launches, our point-of-sale for restaurants, for retail, and also the launching of several partnerships embedded within the cash-outs that are still present today that merged the se

26、ller ecosystem and the consumer ecosystem. Obviously we saw these companies many times over, either competitively or on the horizon, that are partially the topic of today, so happy to dive into any direction that helps.Hannes: Okay, great. Thank you. So maybe just high level, what do you see are the

27、 latest trends in payments and whats caught your attention in that space?Expert: Yes. I think number one is just the growing TAM of digital and credit card payments in general, as you see cash becoming persona non grata in the payments world. And COVID definitely helped accelerate that. I think the

28、second is youre seeing a drastic expansion of online and digital payment means, which we could talk about, and youre also seeing a big push, especially from retailers and quick service reps around some of the concepts of omni-channel.Omni-channel means a lot of different things, and it means somethi

29、ng different in each industry, and in each workflow. But the concept of order online, pick up in store, order in store, have it shipped to your home, have part of an order delivered to you in person, part of an order delivered after the fact, theres a lot of change happening there.Youre also seeing

30、a lot of integration of software into the payments world, and youre seeing a large proliferation of payment facilitators, which is generally a software company that also accepts and processes its own payments. There are many of those popping up, Square obviously being a huge one thats not popping up

31、 but has been around, PayPals another. Stripe is a similar kind of hybrid version of a payment facilitator as well as an aggregator.And again, I think youre also seeing a lot of consolidation in the payment space among traditional players, and I think youll probably see that continue. But youll see

32、a lot of pressure on the traditional players to add software and value-added services to their product. Otherwise, they will likely be commoditized out as other companies deal with a much more robust solution, as youre seeing.Hannes: Okay. So some of those payment companies you mentioned already, th

33、ey keep repeating fairly similar comments in the market. But if you now drill down a little bit into the technology hurdles to implement that - in terms, lets say for example: the omni- channel solution and more software approach, can you give us there a little bit more details on where are the obst

34、acles in the current tech space in relation to payments? And what is really there one of those newer payment providers solving in that space?Expert: Yes. I think the biggest hurdle is the ability to accept payments in person and online, again, a basic omni-channel payment situation. But also the abi

35、lity to collect customer information and to unify customer information so that I, the retailer, know that you, Hannes, are the same person who is buying the shirt for me in person in a store in London as you are the same person who bought from me online four weeks ago and I had it shipped to your co

36、untry house.biggest hurdle is the ability to accept payments in person and online, again, a basic omni-channel payment situationThats a critical value add that some softwaresand I use the word software specificallysome softwares are able to do that embed payments. Whereas, a traditional payments acq

37、uirer or merchant acquirer cant do anything close to that, another company would have to do it, which means you also need an integration between that software and the payment software. Thats one big hurdle.The second big hurdle I believe is the concept of e-commerce has not really changed very much

38、over 20 years, but the demands on e-commerce have changed, to be better at fraud detection, to collect information in a secure, compliant way. So youre starting to see, again, software providersthink of WIX, for examplethat are now also embedding payments and offering their own payment solution in s

39、ome markets. Because again, the value to the consumer and to the merchant is not the payment, its the ability to accept an order, and theyre attaching a payment to it.The third thing is this concept in retail of clienteling, which I believe is one of the bigger reasons why youve seen Adyen pop up in

40、 some more very distributed retail environments. And the idea of a clienteling scenario is again being able to build a database of consumers, like a CRM, but to have very detailed information in there, and to build higher end, higher touch nurture programs and almost automate marketing to these indi

41、viduals based on their purchase behaviour, based on their preferences, based on their size, seasonal stuff. And again, very popular in retail.The fourth I would say, thats popping up in the payment world, is the consolidation of payment services into individual players. The reason why Fiserv and Fir

42、st Data are now the same company is because they offer slightly different things, but now together they offer probably the largest package of financial instruments for a merchant, especially the large merchants in the world.I think, again, you will see more consolidation. But to me, those companies

43、can only really grow horizontally, which means theyre either going to grow through acquisition or just through spending more money in sales and marketing, which, over time, that costs more and more to generate the same lead or the same new merchant. And the reason is that a lot of those technology s

44、tacks of those businesses are not very modern. They dont scale very well. They dont eat or drink very well.And I think that poses a problem if you have a legacy system as your payments provider, but now you want to build all this automation and you want to build this omni-channel experience, there a

45、re some traditional players, most in fact, that really cant help very well there. So you either have to accept that youre going to have multiple solutions or youre going to bring in a player that has many of the software components and the value add components together with the payment itself.Hannes

46、: Okay. So if I understand it correctly, one of those elements is that basically newer payment companies give some additional data to fill basically some gaps or enrich the existing data on consumers or customers and can be quite valuable compared to other guys who dont have it, right?How is that -

47、and please correct me if Ive misunderstood or missed out on something - but how is this important in, lets say the current pandemic as we basically moved more into e-commerce? And do you see there a bigger shift in the market as merchants want to push on omni-channel? And how critical is the payment

48、 solution in, for example, reaching the omni-channel data, especially on the back of the pandemic?Expert: Thats a great question. And I think its a phenomenal scenario that we can easily walk through given COVID, which again, make believe Im a retail store in New York City and I have people come int

49、o my business every day, every week, and theyre consistent but I have no idea who they are. If I have a traditional payment solution, I have a VeriFone terminal and global payments behind the scenes, or a bank, or First Data or something and I have a cash register, which is still the most common poi

50、nt of sale in the world, again I have no idea whos buying from me.So the day I have to close my store, and I now want to try to sell to you online and get you to purchase from me online, I dont know how to find you. I dont know who you are because no information has been collected. The only people w

51、ho have that information are Visa, MasterCard, American Express, and maybe some of the acquirers3 critical hurdles of todays payments: 1st: some softwares are able to do that embed payments2nd extended value-add: fraud detection, collect information in a compliant secure way3rd: Adyen brings the ide

52、a of clienteling scenario: the idea of a clienteling scenario is again being able to build a database of consumers, like a CRM, but to have very detailed information in there.and 4th is payment consolidation like Fiserv and First Data with .largest package of financial instruments for a merchant.COV

53、ID-19 impact on payments solutionsbehind them that have basic data. But they dont know what they bought. They dont know what size they are. They dont know what their seasonal preferences are. So again, you end up being left behind.The other critical part of that is, again the concept of omni-channel

54、 is being able to turn on an online solution very, very quickly and seamlessly that integrates with all of your in- person, on-premise data. Many companies do not have that capability. For example, Square does. Square bought Weebly. So it had a first party online store as well as a first party point

55、 of sale and its processing the payments.So if Im a retail merchant on Square in person and I want to turn on a website, I can flip on a website within five minutes. It has all of my data. It has all of my CRM information. It has all of my inventory. And immediately I could be selling online, and I

56、could be finding those same consumers because Square automatically generates customer records. Most payment processors do not.And the concept of an automatic record creator is one of the biggest value adds of Square, because again, it has your payment. It tokenizes it. It tokenizes every unique iden

57、tifier, so it makes it easy to know who you are and how to come back to you. This is a critical aspect of COVID time.The third thing I will say, without going too long on the answer here, is theres a difference between a purchase like a payment and an order, right? An order is just a summary of item

58、s, SKUs, prices, details about the items, etcetera. The payment of course is the means of transacting that order. Many companies do not have the ability to transact both a payment and an order. To create an order you need software, so you need point-of-sale, or you need some form or inventory manage

59、ment.So if a company or a merchant does not have those solutions, again, theyre only going to have the detail that says Michael paid $14 on March 30th. But its not going to know what I bought and it may not even have a ton of other detail, if any, attached to it. And whether you as the merchant have

60、 access to those data is a whole different concern, because many traditional acquirers do not provide that data to the merchants. Its generally kept separate.Hannes: Great answer. Before we drill down into a couple of those companies, which you mentioned earlier, maybe you can just really state who