Adyen N : Investor Relations

Contributions from across the growth pillars

As in previous years, enterprise volume continues to drive the bulk of our growth. We are consistently able to win incremental merchant volume in this segment through adding channels, geographies and product lines with existing merchants. As a consequence of our land-and-expand strategy, most of the growth is still driven by cohorts that boarded onto the platform several years ago.

Within the enterprise pillar, we would like to highlight the increasing importance of platforms. In order to best help platforms and their users (e.g. sub-sellers in marketplaces, or SMEs in the realm of business toolkit providers like Wix), we needed a product that would work well at scale for both. This is why we developed Adyen for Platforms, formerly MarketPay. Through enterprise-level partnerships with platforms, the long tail of the market is able to gain access to the full strength of the Adyen single platform, worldwide. This includes unparalleled ease-of- use and full unified commerce without compromising on risk mitigation. Automated KYC[3] allows platforms to board their users quickly, providing them with a best-in-class payment offering - and ensuring that scale never hinders growth. Early results are positive, with a diverse set of merchants opting for the same solution as eBay. These merchants range from more traditional online marketplaces to companies like Zenoti - a business that provides technology to over 10,000 salons, spas and barber shops.

In the unified commerce space, helping merchants cater to rapidly evolving shopper behavior continues to be a driver for us. Delivering seamless shopper journeys across channels is increasingly becoming a necessity for businesses to thrive. In the second half of 2019, we saw hundreds of merchants adding a second channel, either ecommerce or POS, facilitating true unified commerce. New merchants, too, were more likely to begin processing via both channels than we have previously seen.

Initially, our focus in unified commerce was on helping high-end retail businesses. We felt that our technology would add most value to these merchants - whose main focus was already on delivering a best-in-class shopper experience. Following early success there, we moved into retail more broadly, and gained significant share in that space over the past few years, with customers including H&M and Gap Inc. Recent additions to the merchant portfolio in retail include HUGO BOSS, Dubarry and Acne Studios. In line with this growth, we continue to invest in our global POS operations and logistics to ensure scalability going forward.