H1 2022
Shareholder letter
Digital
Solving for complexity for large digital merchants has been core to our operations since founding Adyen, and helped us shape our offering throughout all stages of growth. Consumers are more comfortable with digital payments than ever before, and increasingly demand the most seamless digital experiences in which the payment process automatically runs in the background - and all but disappears from the shopper's interaction with our customers' brands. The evolution towards near-invisible payments that is synonymous with brands like Uber is now disrupting other industries (e.g. gaming, online retail) too, with no signs of slowing down. Our customers need a partner that can quickly adapt to these evolving circumstances.
This ever-increasing complexity paired with our customer-driven approach to product innovation makes us well positioned to continuously win volumes with existing and new customers. The quickly evolving needs of digital customers require a partner that builds fast — and our single code base enables us to move at forward-thinking businesses' speed of innovation.
Figure 1
Digital: Processed volumes (in billion euros) of non-platform merchants that process over 99.5% ecommerce volume.
Unified Commerce
The fundamental changes in shopper behavior and widespread digital transformation that took place over the last years drove unified commerce journeys from a nice-to-have to a need-to-have across verticals, creating urgency for businesses across industries to implement such strategies. This shift, paired with the strength of our single platform, means that our opportunity in unified commerce is larger than ever before.
In order to give our customers access to the most advanced shopper journeys, we continuously invest in broadening this offering. During the first half of 2022, these investments resulted in the launch of our in-house built terminals and Tap to Pay on iPhone in collaboration with Apple.
Our ability to translate the most complex consumer demands into seamless shopper journeys (e.g. self-checkout, cashierless stores, and order online, pick up in store) continues to drive growth with existing customers, and helps us win new customers too, with high-profile brands such as Dior, All Saints, and UNIQLO opting for our technology further underscoring the relevance of our offering.
We are operating at the forefront of innovation in this space, and remain the sole player offering a single integration for all sales channels.
Figure 2
Unified Commerce: Processed volumes (in billion euros) of non-platform merchants that process at least 0.5% of their volumes are point-of-sale. POS volumes shown in the shaded areas.
Platforms
We partner with platform businesses to address the long tail of the market in the most scalable manner. Through these partnerships, SMBs gain access to our industry-leading financial technology.
When further zooming in on platform volumes, the growth of our unified commerce offering in the platform space is especially noteworthy. Amid the broader trend of digitization reaching the SMB space, we saw point-of-sale volumes within the platforms pillar grow 304% year-on-year as we bring the value of unified commerce strategies to the long tail of the market.
When we launched Adyen for Platforms in 2017, we solely focused on online payments. Now, we are building out Adyen for Platforms into a single integration that offers unified commerce strategies, a full-fledged embedded financial product suite, and compliance and onboarding services. This all plays to the broader trend of platform businesses looking to further capitalize on the revenue opportunity the relationships with their users brings.
The platform business model is becoming increasingly dominant across a broad range of verticals, and its growth will only accelerate in the years to come.
Figure 3
Platforms: Processed volumes (in billion euros) of customers with at least 50% of volumes on Adyen for Platforms. POS volumes shown in the shaded areas.
Interim Condensed Consolidated Financial Statements
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