Data-Driven Innovation in Payment Solutions
A strategic partnership with Visa, helping them transform payments data into competitive advantage.
The global payments network worked closely with Beyond to build, test, and launch a data driven merchant insights and consumer offers platform.
68M
Credit and debit cards
£335bn
spend
7.2Bn
transactions
Introduction to Visa Europe
Visa stands as a cornerstone of the global financial ecosystem, facilitating seamless transactions across borders and between stakeholders. With its sophisticated network, Visa ensures that money flows efficiently between merchants, consumers, banks, and governments, thereby powering economies and enabling commerce.
The company's technology infrastructure is designed to handle millions of transactions every minute, showcasing unparalleled reliability and security. Visa Europe's commitment to innovation is evident in its continuous efforts to enhance digital payment methods, making transactions not only faster but also more secure.
With the rise of e-commerce and digital banking, Visa has been at the forefront, developing new payment solutions that cater to the changing needs of consumers and businesses alike.
Visa’s role extends beyond transaction processing. It is a hub of innovation that constantly explores the future of money, from contactless payments to blockchain technologies.
Payments Sector Challenges
Visa Europe navigates through a landscape of challenges within the payment sector. Primary among these is the endeavor to displace cash. This shift requires not just technological innovation but also a change in consumer behavior and trust, a challenge that Visa Europe approaches with strategic initiatives aimed at demonstrating the benefits of digital payments.
Keeping bank clients satisfied and ensuring Visa cards remain the preferred choice involve a delicate balance of providing value to both banks and their customers. Visa Europe's strategies focus on enhancing the utility and benefits of using Visa cards, such as through rewards programs and security features, to maintain their status as the 'front of wallet' choice for consumers.
Another critical challenge is addressing the concerns of the merchant community regarding payment charges. Merchants are integral to Visa's network, and their satisfaction is crucial for the ecosystem's health.
The Role of Data in Payments
Data is the lifeblood of the modern payments sector, offering insights that drive decision-making, enhance customer experiences, and improve security. For Visa, leveraging the vast amounts of transactional data flowing through its network is a strategic imperative. This data, encompassing billions of transactions, reveals patterns, trends, and preferences that are invaluable for understanding market dynamics and consumer behavior.
In the payment industry, data analytics enables the identification of fraud in real-time, the customisation of customer rewards, and the optimisation of payment processes. For Visa, this means not just processing transactions but also generating actionable insights that can help banks, merchants, and consumers make more informed decisions.
Data-driven strategies empower Visa to innovate and offer services that are not only relevant but facilitate the development of new products, reinforcing Visa's position as a leader in the payments industry.
68M
Credit and debit cards
£335bn
spend
7.2Bn
transactions
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“This investment in Beyond reflects Visa Europe’s commitment to redefining its relationship with retailers, helping them to build stronger relationships with customers and secure increased market share. Enhanced data analytics forms a key part of our vision for the future of payments alongside new technology such as mobile payments and e-wallets.”
Peter Ayliffe, CEO, Visa
Journey with Beyond
The collaboration between Visa and Beyond was forged with the goal of unlocking the potential of Visa's extensive data assets, transforming them into actionable insights and innovative products that benefit banks, merchants, and consumers alike.
Beyond brought to the table its deep expertise in data analytics, applying its skills to evaluate Visa's data and identify opportunities for commercialisation. The result was a suite of ground-breaking products and services that leveraged consumer behavior insights to create value across the payment ecosystem.
For Visa, this meant not only enhancing its core transaction processing capabilities but also expanding its offerings to include data-driven insights for merchants, consumer behavioral reports, and targeted offers delivered through banking partners. These initiatives were designed to increase transaction volumes, drive digital payment adoption, and solidify Visa's relationships with key stakeholders in the payment chain.
Data Strategy Development
The initial phase of the partnership focused on developing a robust data strategy that would guide the creation and deployment of data products. This strategy was centered on understanding the unique value Visa's data could offer to different stakeholders in the payment ecosystem, from banks and merchants to consumers.
The strategic framework developed by Beyond and Visa identified key areas where data could be leveraged to create distinctive market and consumer insights. These insights were envisioned to fuel a range of innovative products and services that would not only offer unprecedented views into consumer behavior but also enable targeted marketing and loyalty programs.
The development of this data strategy was a collaborative effort that leveraged Beyond expertise in data analytics and Visa deep understanding of the payments landscape. Together, we mapped out a path to commercializing Visa's data, aiming to unlock its potential to drive business growth and innovation.
Mobile Offers and Merchant Insights Program Design
A central element of the partnership was the design of a program that combined mobile offers with merchant insights. This initiative was aimed at leveraging the digital banking platforms of retail banks to deliver targeted offers to consumers, thereby driving transaction volumes and enhancing customer loyalty.
The program was designed to be mutually beneficial for all parties involved. For Visa, it represented an opportunity to increase card usage and transaction volumes, aligning with its objective to displace cash. For merchants, it offered a direct channel to reach and engage consumers, supported by rich insights into customer behavior. For retail banks, it provided a compelling loyalty proposition that could help retain customers and differentiate their offerings in a competitive market.
The programme development commenced with a series of proof of concepts (PoCs) designed to demonstrate the practical value of data-driven insights.
Waitrose Store Openings
The first PoC focused on identifying optimal locations for new Waitrose stores. By analysing Visa's transactional data, the team was able to gain a detailed understanding of shopping patterns and consumer movements within potential store locations.
This data-driven approach enabled Waitrose to prioritize its investment in new stores based on the quantified opportunity of each site, leading to the successful opening of five new stores in the most promising locations.
Waitrose Store Opening Hours
Waitrose identified a critical gap in their operations: their stores were opening 65 hours less per week compared to competitors. Despite several attempts, extended opening hours hadn't gained internal support. However, a turning point came with a new approach that leveraged Visa Market Performance data to quantify the financial impact of customers turning to competitors while Waitrose was closed.
This fact-based evidence was a game-changer, securing unanimous approval across all business divisions. It enabled Waitrose to strategically adjust opening times to align with local shopping patterns.
Armed with this compelling data, Waitrose implemented extended hours in 11 stores, a decision that received full backing from the partnership committee. The result was a tailored approach to store timings that resonated with consumer behavior and led to a 5% increase in sales.
Restaurant Chain Expansion
The third PoC assisted a UK restaurant chain in adopting a more data-led approach to expansion and customer engagement. Without access to customer data, the chain faced challenges in understanding market share, customer loyalty, and the potential for a rewards program.
Utilizing Visa's data, Beyond Analysis provided insights into customer dining habits, loyalty, and market share, enabling the restaurant chain to refine its strategic decisions and lay the groundwork for a successful loyalty program.
“We joined forces with Beyond because of their proven track record to deliver growth driving customer intelligence across the retail and banking sectors. Together we offer the retail community powerful insight, which is based on actual rather than claimed behavior.”
Mariano Dima, Marketing Director, Visa
Solution
Developing Spendographics™
A landmark achievement of the partnership was the development of Spendographics™, a solution that leveraged Visa’s extensive transactional data to create a comprehensive segmentation of the UK consumer market.
Spendographics™ used data from 68 million cards, encompassing £335 billion in spend across 7.2 billion transactions. This vast dataset enabled the segmentation of consumers based on various factors, including what they buy, where they shop, when they make purchases, and how they prefer to spend. The granularity of the insights provided by Spendographics™ allowed for a nuanced understanding of consumer behavior, enabling businesses to tailor their strategies more effectively to meet customer needs.
By categorizing consumers based on their spending patterns, Visa were able to offer businesses a powerful tool for targeting and engaging with customers more effectively.
Launching the Visa Offers Program
The Visa Offers Program was launched with the aim to card use and transaction volumes by presenting consumers with personalised offers, thus accelerating the shift from cash transactions to digital ones. Tailored offers programmes were designed in close collaboration with banking partners to ensure these offers fit seamlessly into their loyalty and engagement strategies.
In parallel, Visa engaged with a broad spectrum of retailers to curate a variety of compelling offers designed to match the varied tastes of cardholders. These efforts were underpinned by detailed analytics to ensure that the promotions not only adhered to prevailing consumer trends but also motivated greater card usage and spending.
At the core of the program's success were targeted, data-driven campaigns that capitalised on Visa's insights into consumer behavior, ensuring that the offers reached the right audience to maximize engagement and redemption.
Developing Merchant Data Products
Alongside the offers programme was the development of merchant data products, a strategic effort to engage more deeply with the retail sector by offering valuable insights drawn from Visa’s vast transactional data.
This initiative equipped retailers with a comprehensive understanding of consumer purchasing behaviour, enabling them to tailor their marketing strategies, product offerings, and promotional activities more effectively to the needs and preferences of their customers.
Retailer analytics emerged as a key component, providing businesses with the ability to dissect consumer spending across various brands, sectors, and markets, thereby enhancing their competitive edge and growth potential.
The benefits of these data products to retailers were significant, offering them the tools to precisely measure market share, pinpoint expansion opportunities, and benchmark against competitors. This wealth of information proved crucial for strategic planning, allowing for more efficient resource allocation and a more informed pursuit of growth opportunities.
Results and Impact
The collaboration between Visa and Beyond yielded significant results, demonstrating the transformative potential of data-driven innovation in the payments sector. Through the development and implementation of data products and services, the partnership not only supported Visa's strategic objectives but also delivered tangible benefits to a wide range of stakeholders.
For Visa, the initiatives contributed to an increase in transaction volumes and the adoption of digital payments, reinforcing its position as a leader in the payment industry. Banks benefited from enhanced loyalty programs that differentiated their offerings and retained customers, while merchants gained access to valuable insights that informed business strategies and drove growth.
The success of the partnership underscored the value of leveraging transactional data to create innovative solutions that address the needs of consumers, banks, and merchants.
Lessons Learned
Interested in becoming a data driven organisation like Visa?
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Why Choose Beyond?
Expertise
Our team of seasoned consultants has decades of combined experience in data strategy and consulting. We bring deep industry knowledge and hands on experience to every engagement.
Customised Solutions
We provide tailored solutions that fit with where you are on your data journey to address your unique data needs and challenges, ensuring a perfect fit for your organisation.
Value-Driven Approach
Our focus is on delivering real value through our services. We work to identify opportunities for cost savings, revenue generation, and process improvements.
End-to-End Support
We are with you every step of the way, from initial assessment to implementation and beyond. We are committed to your success.
Examples Of Our Work
