IBM Payments Gatewaya new opportunity to extend retail payment

THE LAST MILE IN CONNECTED

CUSTOMER SHOPPING

EXPERIENCES.

IBM PAYMENTS.

2

DISRUPTOR: But digitally empowered customers are most concerned about credit fraud when paying online

of customers abandoned their shopping cart due to concerns over payments security.2

of online shoppers want to see a variety of payment options at checkout.1

1 Milo Local Shopping, NO CART LEFT BEHIND: WHY SHOPPERS AREN’T FOLLOWING THROUGH ON ONLINE PURCHASES, 2013, http://www.columnfivemedia.com/work-items/infographic-no-cart-left-behind-why-shoppers-arent-following-through-on-online-purchases2 Statista, “Why do online shoppers leave without paying?” 2012, http://www.statista.com/statistics/232285/reasons-for-online-shopping-cart-abandonment/3

of consumers are afraid of having their credit card data stolen and abused – higher than those concerned about national security and war.4

DISRUPTOR: However, most consumers still trust banks to secure their data more than social and tech organizations

5%

2%

5%

84%

MostTrusted

Payment Solution

4%

Consumer’s Bank

Payment Service Providers

Other Suppliers

Tech Companies (Google, Apple)

Social Media (Facebook, Twitter)

Other Banks

1 ING International Survey 2015, http://www.slideshare.net/ING/ing-mobile-banking-2015-report

DEPENDABILITY AND

SCALABILITY

WHEN YOUR

CUSTOMERS NEED

TO BE AT THEIR BEST.

IBM PAYMENTS.5

A complete solution for digital commerce payments

over 170 different payment methods with a deployment-ready solution

Highly ConfigurableConsistent Omni-Channel Shopping Experience

Customer-focused Services for Easy Repeat Purchases

to over 220 banks and processors in over 70 countries

Grow Globally Quickly and EasilyLocal Market Analysis & Worldwide SupportIBM Brand Recognition as a Business Partner

customer data to allow them to shop with confidence

PCI-Compliant Data VaultManage All Payment Credentials

Absorbs Regulation Compliance Burden

from a single view of payments across all channels and locations

Manage Payment RoutingAutomates Settlement Reconciliation

Straightforward Data Feed

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Retail payments acceptance solution for merchants, processors and acquiring banks

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Payer(Consumer)

TransactionAcquirer

Payee(Merchant)

IssuerProcessor

InstrumentIssuer

Acceptance Technologies:

Payments Management:

Integrate through APIs to pre-integrated payment methods, banks and processors around the globe.

A cloud-based payment management solution with one view of payments and reconciliation across channels.

Network AcquirerProcessor

A truly global solution with locale-specific currency and payment type support.

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In use by manufacturers, credit processors, retailers and telecoms around the world.

MANAGE: IBM Payments Gateway provides complete reconciliation and insight into all payments activity

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Straight-Through Processing

Data feeds designed to lower manual workload and achieve straight-through processing of payments.

• Automated closing and (re-)opening of accounts receivable (A/R) records

• Automated posting of bank and processor fees• Automated cash application and deposit forecasting

Lower Settlement Costs

Automated reconciliation of funds settlement combined with a managed service, which handles exceptions and ensures proper settlement on every transaction.

• Controls over lost settlements, fees and downgrades, settlement timeliness, and foreign exchange

• Managed service to reduce operating costs

SECURE: Highly secure data vault in the cloud and tokenized communication means no longer having to manage customer credit data and security headaches in house

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PCI Data Vault with Tokenization

IBM Payments Gateway stores all payment information in a PCI vault where the information is encrypted, protected by strict access controls, and purged when no longer needed. The vault includes a tokenization mechanism that works in all interface modules, tools, feeds and reports. This enables centralization and outsourcing the storage of all payment information to the data vault.

Embedded Fraud Prevention

• Address Verification Service (AVS) check• Card Verification Code (CVC) check• Card issuer and country check• 3D secure cardholder authentication• Dynamic security checks

Increase transaction rate leverage by enabling

processing through multiple banks while

reducing cost through complex payments

reconciliation insight and chargeback dispute

analysis.

Assist counter-fraud activities with complex

multi-bank reconciliation and dispute insights while

eliminating concerns of data at rest, regulation compliance and system

exposure.

Leverage the SaaS cloud architecture to alleviate

time-to-market, scalability and security concerns by offloading the burden of

PCI-compliance, data security and regulation

maintenance to IBM.

Offer customers frictionless and secure payment options across devices and channels,

reducing checkout abandonment and improving

the entire shopping experience with over 170

payment methods in over 70 countries to help your

business grow globally.

IBM Payments Gateway generates deep engagement opportunities for banks with their

merchant customers.

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FAST CLOUD DELIVERY. EASY

INTEGRATION. REDUCED RISK.

IBM PAYMENTS.

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Tested and benchmarked to provide exceptional performance when our clients need it most.

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Deployed on cloud systems by IBM, one of the world’s top 3 cloud providers according to analysts and researchers. 1

1 Synergy, IBM, Amazon and Salesforce Lead in Cloud Infrastructure, 2014, https://www.srgresearch.com/articles/amazon-salesforce-and-ibm-lead-cloud-infrastructure-service-segments

IBM Payments Gateway is easy to integrate, easy to use and easy to manage

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Multiple Web, API and App Integration Options

• JSON API – Provides full control of payment GUI and user experience, a RESTFull HATEOAS interface. Ready for web 2.0 and HTML5 with PCI-DSS insulation and a full suite of transactions, for all payment methods. Can be extended with full Andoid and iOS source code libraries.

• Hosted Payment Page - Embeds “payment page” into merchants website to receive and store payment info (e.g. credit card #) within a PCI compliant vault requiring no additional development.

Comprehensive Payments Insight and Control

• Technical Issues• Entry point: 2nd Level Support Desk• Escalation: Support Desk Manager / Duty Manager

• Business Related Issues• Entry point: IPG Account Manager • Escalation: IPG Operations Team Lead / PS Operations

Manager

{ JSON }javascript object notation

iOS android

IBM provides reseller account management, Level 1, 2 and 3 technical and business support as part of the managed service

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Account Management and Trouble Ticketing

• Account Manager – a IPG account manager will be assigned to handle the IPG business related communication; such as inquiries, change coordination, and on-boarding coordination. The account manager will also provide the monthly business review report.

• Level 2 Technical Support - a 24/7 support desk available to all resellers. They handle all technical questions and all severity 1 and 2 incidents.

• Level 3 Technical Support - a team of specialists in IT operations and development. They are part of the advanced problem diagnostics and resolving team.

Comprehensive Support Structure

• Technical Issues• Entry point: 2nd Level Support Desk• Escalation: Support Desk Manager / Duty Manager

• Business Related Issues• Entry point: IPG Account Manager • Escalation: IPG Operations Team Lead / PS Operations

Manager

THE COMFORT OF EXPERIENCE

AND PROVEN RESULTS.

IBM PAYMENTS.

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million debit, credit pre-paid and commercial cards issued in processors’ regional footprint.

banks and member cooperatives that now have access to deliver a digital wallet solution to

their customers through the new service

430

IBM Payments Gateway

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A large European payments processor needed to develop a strategy to compete in the digital wallet space against competition like PayPal and Google Wallet for online, mobile and NFC sales. The IPG solution was deployed to cardholders and provides wallet services, payments gateway, merchant on-boarding and hosted payment/checkout pages.

Better financial services

made with IBM

3700+

vehicles/owners in use that have accounts and need payments management

movements are tracked daily and corresponding payments must be processed

when peak charges are assessed

250k

IBM Payments Gateway

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A European transportation agency needed an easier and simpler way to let their residents pay for peak traffic driving and express lane surcharges which must be paid within 24 hrs of occurance. The IPG solution expanded payment options to auto billing, credit/debit card, IVR and SMS. The solution also simplified and reduced fee collection costs as well.

Better cities

made with IBM

450k

expected purchase transactions per year direct to the consumer via the online channel

subsidiary companies leveraging the same cloud-based payment system at checkout

600k

IBM Payments Gateway

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A multi-national toy and board game company located in North America was deploying a new online storefront solution for B2B and B2C sales. The company selected IBM Payments Gateway to accept multiple credit/debit card, ACH and digital wallet payment types along with a card-on-file solution to streamline subsequent customer checkout experiences.

Better retailing

made with IBM

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IBM is dedicated to your success, in your industry

Unparalleled Industry Expertise

• Accelerate solution design and thorough business process expertise

• Reduce project risk with reusable implementation patterns and support for industry standards

• The #1 Banking Industry provider as ranked by the FinTech 100

Extensive Industry Support

Community

• IBM partners with the top banks in the world to invest in innovative design, functionality, and integration

• Dedicated resources within Global Business Services with an average of more than 10 years of experience

• Services organization closely aligned with software products to effectively translate technology into business outcomes

Significant Technical Investment

• Over $3 billion invested in the last 3 years to create a truly smarter approach to commerce

• Integrated products for easier implementation and increased speed to value

• Synchronized product roadmaps across software portfolio