Turbo-charging loyalty and payments in retail
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Case study
Convego Pearl:
®
Turbo-charging loyalty
and payments in retail
Stay top-of-mind
The payment portfolio of today’s consumer has never been more
complex. Credit and debit cards sit alongside loyalty cards for
What is Convego® Pearl?
different brands, cash and pre-paid gift or payment cards for
specific retailers. On their mobile devices, contactless payments Convego® Pearl is a payment and loyalty program
and brand-specific retail apps compete for a share of attention, management solution designed to enable retailers
while in many countries non-card based payment systems such to own and control the transaction and the
as SOFORT, iDEAL, PayPal, or AliPay are popular alternatives. customer relationship. An all-in-one solution,
WorldPay’s 2020 Global Payment report predicts that, by 2023, Convego® Pearl connects multiple payment devices
52.2% of e-commerce transactions and 29.5% of all POS in-store with multiple payment methods and offers
transactions will be done through digital wallets1. a robust management module for loyalty programs,
all in one place for a seamless and full-featured
With the payment market in such a crowded condition, any brand customer payment experience.
that can integrate loyalty and payments into one automatic
process will find a significant advantage over the competition and
offer a truly differentiated multi-channel customer experience
that paves the way for stickiness and boosted revenue.
https://worldpay.globalpaymentsreport.com/#/en
1
Convego® Pearl: 1
Turbo-charging loyalty and payments in retail
How does Convego® The benefits of deploying
Pearl work? Convego® Pearl
Convego® Pearl is a closed-loop, all-in-one payment • Complete solution
management and loyalty platform. It enables retailers to Pearl offers physical/virtual card issuing & life-cycle
simplify their payment and loyalty offerings through a management, payment processing and robust loyalty
cohesive and integrated system. With Convego® Pearl, engine, geared around social sharing for maximum growth.
the retailer stays in control, managing their customer’s • Scalable and available
accounts and money, awarding and rewarding customers Pearl’s robust architecture is capable of deployment
in the way that matters to them. Capable of omni-channel from tens of thousands to hundreds of millions of
payment management, from cards to e-purse and mobile subscribers or cards.
QR codes, Convego® Pearl allows retailers to offer a superior • Proven performance
payment experience, no matter which method the customer Pearl is in use in thousands of retail outlets handling
chooses. With rich data capture and analysis, retailers will millions of complex payment and loyalty transactions.
gain an in-depth understanding of consumers and their • Highly customizable and configurable
payment habits, so they can tailor their activities to match Pearl can easily integrate with 3rd party systems such as
customer need. ERPs, CRMs, or Payment Gateways, as well as being
adaptable to specific retailer requirements.
29.5%
• Revenue boost
Pearl can generate float and improve consumer retention.
• Mobile application support
Pearl is an ideal complement to mobile services and
applications, enabling Over the Air (OTA) issuance of virtual
cards and lifecycle management, as well as contactless
payment, mobile top-up and OTA loading.
• Cost optimization
of POS transactions will be completed Pearl helps to minimize interchange fees and cash handling
through a digital wallet by 2023 expenses, reducing costs throughout the customer journey.
The Convego® Pearl solution is comprised of four
modules for an integrated, all-in-one approach:
Acquiring services Processing services
• Terminal registration and assignment • Transactions routing management
• Acquirer risk control • Integration with external payment
• Payment acceptance networks
• Clearing & settlement • Clearing & settlement
• Fee & dispute management • Fee & dispute management
• Multiple acceptance channels
Issuing services Loyalty services
• User registration and card issuance Issuing services • Member registration and
• Card order & life-cycle management life-cycle management
• Top-up, load and inquiry services • Membership level management
• Issuer risk control • Member group management
• Payment verification and authorization • Points transfer between members
• Clearing & settlement • Loyalty points exchange (import/
• Fee & dispute management export)with business partners
• Multiple payment channels
Convego® Pearl
Integrated solution
Convego® Pearl: 2
Turbo-charging loyalty and payments in retail
The global
payments market
The global digital revolution coupled with increased payment EU
card adoption has transformed the retail market. By the end of Security and identity protection are the focus for the EU market,
2020, there will have been over 1 billion payment transactions with PSD2 rolling out across the region in 2020 enforcement of
made through a digital or mobile wallet worldwide2. Although Secure Customer Authentication (SCA) beginning from January
the impact and scale of this change can be felt globally, the 20215. Biometrics, tokenization and other cryptographic
fragmentation of the payment market means that regional innovations will soon be seen by the EU market as standard,
approaches to payments can differ markedly: rather than a niche differentiator.
APAC MEA
Payments in South-East Asia have undergone an unprecedented Throughout the Middle-East there is a strong move embracing
level of change in the past few years. Already a world leader in digital payments technology, with the launch of solutions such as
internet usage and mobile/smartphone adoption, the Chinese the Mada card in Saudi Arabia, with over 30 million digital cards
market leads the world in e-commerce and mobile payments. in circulation6. In the UAE, 71% of customers use digital payment
It is predicted that, by 2023, 66% of all sales in China will come methods in store in addition to cash7.
from m-commerce technologies3.
Convego® Pearl’s flexible, scalable approach allows you to easily
LATAM adapt to local market conditions and quickly integrate payments
1bn
Although the LATAM region is very much still a cash-driven and loyalty into your channels.
economy. mPayments and digital wallets are becoming key
components in the retail payments payment mix. More than
half the region’s population remaining unbanked yet by 2023,
+
non-cash payments are predicted to deliver 56% of total POS
transaction volumes4. eWallet services such as PagSecuro,
Payvalida and PayPal enjoy high market penetration.
transactions made through a digital or
mobile wallet worldwide in 2020 alone
The challenges of a
multi-channel payment
experience
For retailers, in today’s multichannel world can be a
challenge. Not only must they deal with multiple
credit/debit card and cash payments and technologies
such as QR code ePayments and mobile wallets. They
must also engage with the multi-faceted ecosystem of
merchant services and payment processors. Typical POS
devices must cater for these multiple payment methods,
and that requires an investment in technology to enable
those payments. Key challenges for retailers include:
• Multiplicity of payment methods
• Integration of POS and backend technologies
• Offering service in rural and distributed locations
with poor connectivity
• Seamlessly merging digital and in-store payment
experiences
• Providing a best-in-class customer experience
Convego® Pearl can enable retailers to meet these
challenges and deliver a full-featured, multi-channel
in-store payment system at scale.
Convego® Pearl: 3
Turbo-charging loyalty and payments in retail
Convego® Pearl in action:
150m 13%
cards issued uplift in sales year-on-year
Boosting payments and Generating loyalty
loyalty throughout the and brand love for a
retail network market-leading retailer
A large gas station network has been using Convego® Our client, one of Asia’s largest chains in the Quick Serve
Pearl to manage their payments and their loyalty Restaurant (QSR) segment, had an issue with their existing
program since 2009. The main challenges for the retailer loyalty program, it simply wasn’t scalable to meet their
were to strengthen brand loyalty, launch an ‘owned’ enormous retail footprint. Their goal was to implement a new
payment system and to support payments in rural and system to boost both revenue and market share with their
isolated locations. loyalty program – generating more business.
Convego® Pearl was deployed as a closed-loop system, They chose Convego® Pearl as a one-stop payment and loyalty
supporting value-added services to operations, marketing system across stores throughout the region and beyond. Pearl’s
and customers, enabling multi-channel payments via card flexible, scalable approach enabled the retailer to move to a
and mobile QR technologies, across more than 20,000 gas 100% online transaction model and lay a stable foundation for
stations in the retailer’s network. future revenue generating initiatives. The platform was also
chosen for its ability to integrate with their current processes –
To date, the retailer has issued more than 150 million cards selected as the solution least disruptive to their business.
and their transactions have grown year on year, processing
approximately 3.5 million transactions every day. The solution was deployed in all of the retailer’s stores
nationwide. They sold over 7 million cards and now process
more than 110,000 transactions per day – a 13% uplift in sales
year-on-year.
Convego® Pearl: 4
Turbo-charging loyalty and payments in retail
€ m 1
revenue forecast in FY2020
+
Localizing a Why choose
global brand Giesecke+Devrient (G+D)?
A global energy business which had made fairly recent With over 150 years of passion for payments G+D is the
inroads into the Asian market, were seeking a solution perfect partner for your payment and loyalty needs.
to improve customer service quality in their gas stations. We have provided more than 100 instances of digital
They were also looking to ease the burden of manual payment solutions for leading financial institutions
reconciliations for offline payments at pumps or in worldwide and issue up to 400 million payment cards
remote locations where real-time payments could every year. We are well placed to offer you and your
prove challenging. customers the secure, convenient solution you will need
to support you as the payment markets evolve. We have
Convego® Pearl’s specific offerings for the gas station market the expertise to provide a solution to even the most
proved to be invaluable. They deployed Electronic Payment challenging and distributed of retail models, and our
Systems (EPS), one of Pearl’s payment management portfolio of solutions combine to create a single point
components, in each gas station to integrate payments of excellence for any payment need.
across multiple terminals, both at-pump and in-counter,
and took advantage of Pearl’s Site Integration Platform
and Central Reconciliation Platform to make reconciliations
simple, automated and efficient.
The retailer’s EPS integrates smoothly with the majority
of payment methods available in the Chinese market,
from cards powered by China Union Pay, to the retailer’s
self-issued fleet cards, third party fleet cards and mobile
wallets like WeChat and AliPay. 2
https://www.emarketer.com/content/us-mobile-payment-users-2019
3
https://worldpay.globalpaymentsreport.com/#/en
Since deployment in 2017, revenue enabled by Convego® 4
https://worldpay.globalpaymentsreport.com/#/en
Pearl for our client has increased dramatically, with 5
https://www.financederivative.com/what-are-the-payments-trends-for-2020/
forecasts of over €1 million in revenue in FY2020. 6
https://www.payfort.com/blog/2019/07/31/cashless-payments-in-middle-east/
7
https://www.middleeastbusiness.org/2020/07/07/digital-payment-trends-for-2020
About Giesecke+Devrient
Giesecke+Devrient (G+D) is a global security technology group headquartered in
Munich. As partner to organizations with highest demands, G+D engineers trust
and secures essential values with its solutions. The company’s innovative technology
protects physical and digital payments, the connectivity of people and machines, the
identity of people and objects, as well as digital infrastructures and confidential data.
G+D was founded in 1852. In the fiscal year 2020, the company generated a turnover
of 2.31 billion euros with around 11,500 employees. G+D is represented by 74
subsidiaries and joint ventures in 32 countries. Further information: www.gi-de.com.
Giesecke+Devrient Mobile Security GmbH
Prinzregentenstrasse 159
81677 Munich
Germany
Follow us on:
www.gi-de.com
mobilesecurity@gi-de.com
© Giesecke+Devrient Mobile Security GmbH, 2021
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