Digital Content – the year of Intelligent Payments.

We thought it was about time we caught up with Daniel Belda, VP of Digital Content & Gambling, to see if the year is shaping up as expected.   

1. What have your top 3 highlights of 2018 been so far?

1. The continued growth of the VOD services is really interesting, with Netflix briefly overtaking Disney as the largest media company and Amazon buying the rights to stream sports games via its Prime service.

2. Disruption in the video gaming industry, including the resurgence of subscription models as free-to-play seems to waver and the trend towards creating cryptocurrencies for transfer of value in-game, reselling games or even to create more unique characters and content.

3. What started off as gamers at conventions has now become a global phenomenon with large media attraction. Reports state that by 2020, 500 million people will be tuning in to watch eSports and it will be worth $15bn. This is definitely one to track.

"So far this year, Netflix briefly overtook Disney as the largest global media company and Amazon bought the rights to stream sports games via its Prime service, disrupting 'traditional' TV rights."

2. We predicted some major changes for payments affecting digital content. Do you think we’re starting to see these? And, if yes, what have been your highlights?

Yes, we predicted that this year the major changes would be around machine learning in payments and changes to PSD2 regulation. As dusty a topic as regulation can sound, PSD2 has been a hot one so far this year, and our Intelligent Payments proposition fits perfectly to solve some of the challenges it will bring.

The highlight is the launch of Intelligent Account Verification and 3DS 2.0. These will help digital content merchants transact more successfully and be prepared for the PSD2 changes.

3. Traditionally, we’ve seen providers struggle with the growth in popularity of subscription services versus the usage of alternative payment methods (APMs) by consumers. What developments have you seen in this area – and what still needs to be done?

Unfortunately, many APMs still don’t properly cater to automated subscription models. If a user has to reconfirm a subscription each time it needs to be renewed, it leads to greater attrition versus it being automatically renewed after the subscription period.

There are ways, however, to offer non-automated methods. They require workarounds, like email reminders to users ahead of subscription expiration, which can be effective in certain countries, but still lead to attrition many times. Nowadays, most eWallets can handle recurring payments in one way or another, but the key to avoiding attrition in subscription environments is to avoid intervention from the user. Some APMs have adjusted their products to offer subscription functionality, so we’ll just have to wait to see who else come aboard that we work with or want to support.

There are a lot of exciting things happening and it’s difficult to keep the list short. One of those is an innovation from Jaguar and Shell who are partnering to provide invisible payments for fuel at Shell stations.

4. What are you looking forward to the most in the 2nd half of 2018?

The changes and opportunities that arise from PSD2. It’s not usual that so much opportunity is created from regulatory changes, but for the rest of the year we will be looking at how companies deal with these changes and how we can help in that process.

5. Which digital content companies are doing exciting things – and why?

There are a lot of exciting things happening and it’s difficult to keep the list short.

  • Innovation from areas you would not normally expect – Jaguar and Shell partnering to provide invisible payments for fuel at Shell stations.
  • Interesting, new models in Latin America, where Rappi raised $185 M from Andreessen Horowitz, Sequoia Capital and Delivery Hero as of February 2018.

Learn more: Digital Content

Written by:   ,  5 Jul 2018