9/8/2017 Proprietary & Confidential Presentation Prepared for:

Unlocking the Strategic Value

in Electronic Payments

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How CFOs are unlocking strategic value with Payment Optimization

“A 5% reduction in operating costs can have

the same impact as a 30% increase in sales.” – Gartner Group

Commercial Payments

One-Card | EMV

Expense Reporting

Invoice Automation

Procure–to-Pay

ERP Integration

Outsourced Payment

Execution

File Integration

Reconciliation

Optimized Payments

Electronic Settlements

Discount Realization

Working capital

Supplier Conversion

Enhanced Reporting

and Analytics

Decision Support

Cloud based solutions

Mobile enabled

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• Monitor spending areas 56%

• Manage cash flow 41%

• Control unauthorized spending 39%

• Ensure compliance with corporate policies 33%

• Streamline expense administration 31%

• Provide convenient expense management tools for employees 29%

Financial executives are focused on these key areas:

CFO Research

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The Current AP Environment

$3.00-$5.00 Check processing cost

1. The Institute for Financial Operations 2014 AP Automation Study

2. Association for Financial Professionals,

2015 AFP Payments Fraud and Control Survey

2015 AFP Payments Cost Benchmarking Survey

of organizations still make more than half

their payments by check. 63%

62% of organizations were targets of payment

fraud 3/4 of those instances were checks.

80% of companies are transitioning their B2B payments

from paper checks to electronic payments.

10x Checks cost more than ACH or virtual card

payments to process

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Resistence to change from suppliers

Difficulty of integrating with financial system

No compelling reason to change

Risk management issues

Cost of new technology required

Difficulty changing payments processes

Risk of damaging supplier relationships

Lack of support from the top

Difficulty coordinating with multiple banks

Other

38%

36%

28%

25%

25%

21%

19%

13%

8%

6%

Leaving the Check Behind Overcoming barriers is critical to success

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88% Suppliers also desire electronic

remittance and want to automate

the remittance exchange.

The Institute of Financial Operations 2014 AP Automation Study

Top Accounts Receivables Pressure includes:

high DSO (Days Sales Outstanding) and

lack of visibility into receivables.

Primary Drivers for Suppliers

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A Supplier’s Perspective of Virtual Accounts

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• A “single-use” 16-digit virtual Mastercard

account number

• Issued for a specific dollar amount and

period of time

• Assign key data elements to associate

with the transaction

• Safe, secure payment alternative to

check or physical card

• Ideal for one-time vendor payments

iSimplify portal, Batch or API

Virtual Account | A Secure Alternative iSimplifyPayments

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Unlocking the Strategic Value in Electronic Payments

Integrated Payables

• Multiple forms of payments

(Virtual Account – SIP/BIP, ACH,

Check with Positive Pay)

• Single payment file

• Closed loop reconciliation

Managed Payables

• Multiple forms of payments

including EFT with Discount

Administration and Global

Payment Delivery

• Complete terms management

• Single payment file

• Full payment optimization

Virtual Account AP

• Cardless

• Single-use accounts

• Supplier initiated (SIP)

• Set Supplier cost

• Streamlined reconciliation

Scaled Optimization

Moderate Maximum Minimum

Advantages

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Middle Market | Payment / Settlement Flow

• Bank-agnostic framework

• Optimized payment

timing and type

• 100% electronic

processing Day One

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Goals and Business Initiatives

• Reduce cost

• Increase control & efficiency

• Flexible payment execution from a

bank agnostic framework

• Strategic supplier engagement

• Margin improvement from discounts

and working capital considerations

The benefit of optimized electronic payments

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A Strategic Approach to Supplier Enablement

Supplier

Segmentation

Supplier

Engagement

Supplier

Management

GOAL

Migrate 75% of the targeted suppliers

to electronic payments in 120 days

APPROACH

RESULTS

Cost Savings Process Improvements Revenue Contribution

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Vendor Engagement Plan

1. Scrub and segment Target Suppliers (volume, spend, type, terms,

Top 25, industry, cash forward, etc.)

2. Internal Communications (AP, Treasury, Procurement, Operations,

etc.)

3. Terms, discounts, payment types, and check run strategy 4. Obtain Cash Forward Reports

5. Set goals, timelines, and milestones 6. External Communications (Letters, emails, scripts, microsite)

1. Executive Letters (CFO) 2. Phone Campaign

3. Check Stuffers 4. Emails

5. Joint Strategic Calls 6. Microsite

1. Weekly Progress Reports (Goals, Enrolled, volume, type, etc.) 2. Monitor Payments – Follow-up Calls

3. Supplier feedback 4. Campaign Adjustments

5. Best Practices 6. Market trends

PLAN

DO

REVIEW

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In Summary:

Payment Optimization is a formula for you to reduce administrative cost, streamline

business processes and contribute to margin improvement.

• Move to electronic payments

• Manage your discretionary business expenses

• Achieve savings with optimized payment strategies

• Drive the change you want to see in the business