retail payments strategy overview - aci worldwide...‣commerce gateway - 19 ‣base24 – 235...

Retail Payments Strategy Overview

Jeffrey S. Hale Senior Vice President Retail Payments

ACI WORLDWIDE

INTERACTIVE RESPONSE SYSTEM

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Key drivers

Current product portfolio

Product strategies

Customer considerations

Close

DISCUSSION ITEMS

KEY MARKET AND CUSTOMER DRIVERSIN RETAIL PAYMENTS

Business‣Margin pressures‣The drive for customer loyalty‣Fraud‣Mobile‣Customer service and access expectations

Regulation and compliance‣EMV‣PCI‣Durbin‣SEPA

Technology‣Open systems‣SOA-centric architectures‣Cloud computing‣Mobile

KEY DRIVERS FOR CHANGE

The payments business continues to be increasingly relevant for banks and retailers, with many key drivers for change.

CURRENT RETAIL PAYMENTSPRODUCT PORTFOLIO

ACI RETAIL PAYMENTS SOLUTION – PRE-S1

EXTERNALPAYMENT NETWORKS

TRANSACTIONCHANNELS

MOBILE

ONLINE

BRANCH

CALL CENTER

ATM

POS

ACI RETAIL PAYMENTS SOLUTION – POST-S1

TRANSACTIONCHANNELS

MOBILE

ONLINE

BRANCH

CALL CENTER

ATM

POS

EXTERNALPAYMENT NETWORKS

‣Issuer – 9‣Acquirer – 4‣Interchange - 34‣Payments Manager – 17‣Postilion Office – 180‣Postilion Card Management- 160 ‣Token Manager – 3‣Smart Chip Manager – 24‣Claims Manager – 16‣CMS – 27

Back Office‣BASE24-eps - 90‣Postilion Realtime– 375‣Retail Commerce Server – 45‣ISD - 145‣Commerce Gateway - 19‣BASE24 – 235‣Open/2 – 27‣ON/2 – 25‣OCM24 - 20‣ASX – 13‣TRANS24 – 2

Online Payments

ACI has a broad portfolio of online payments and back office solutions.

ACI RETAIL PAYMENTS CUSTOMERS BY PRODUCT

90 CUSTOMERS HAVE LICENSED BASE24-eps‣Live 50‣In Project/licensed 40

MIGRATIONS/IMPLEMENTATIONS‣BASE24 Migrations 47‣Other ACI Payment Engine Migrations 9‣New Implementations 34

LICENSED CUSTOMERS BY PLATFORM‣IBM System z 6‣IBM System p 24‣HP Non-Stop 54‣Sun 6

LICENSED CUSTOMERS BY CHANNEL‣EMEA 45‣Americas 33‣Asia-Pacific 12

BASE24-EPS CUSTOMER BREAKDOWN

PAYMENT INFRASTRUCTURE SOLUTIONSRetail

BankingWholesale

Banking Fraud

Payment Testing

ASSET forBASE24/BASE24-eps

ASSET for PRM

Payment Communications

Communication Services (ICE/ICE-XS)

Communication Services (ICE/ICE-XS)

Communication Services (ICE/ICE-XS)

Payment Communications Web Access Services (WebGate) Web Access Services (WebGate) Web Access Services (WebGate)Payment Communications

Enterprise Security Services (SafeTGate)

Enterprise Security Services (SafeTGate)

Enterprise Security Services (SafeTGate)

High Availability GoldenGate GoldenGate

Payment Service Management Prognosis for BASE24/BASE24-epsPostilion

Prognosis for MTS

Prognosis for PRM

Mobile

Mobile Channel Manager Mobile Channel Manager Mobile Alerting

Mobile Mobile Alerting Mobile AlertingMobile

Token Manager for Mobile Token Manager for Mobile

Mission-critical enabling infrastructure

RECENT PRODUCT DELIVERIESBASE24-eps‣Release 11.1

Card and Merchant Management‣Acquirer 3.9‣Interchange 3.36

Postilion‣Realtime 5.4‣Office 4.3‣Card

Retail Commerce Server‣Release 4.7.2‣PinComm Version 6.4.4

Infrastructure Solutions‣Payment Services Mgmt for BASE24-eps 11.1, PRM 8.0‣Asset support for new BASE24-eps interfaces‣ICE/XS enhancements (SOAP, TCP/IP)

Ongoing active investment across the portfolio

RETAIL PAYMENTS PRODUCT STRATEGIES

GLOBAL KICKOFF2011

STRATEGY FOR RETAIL PAYMENTS

Offer integrated end-to-end solutions for retail payments

Offer the most scalable, reliable, flexible solutions in the market

Give customers environmental choice

Ensure solutions integration and quality

Offer the broadest range of solutions, available globally

EXECUTION PLAN FOR RETAIL PAYMENTS

Employ a Dual-Product Market Strategy

Invest at Above-Markets Rates

Create Clear Migration and Support Plans

Use Customer Input to Refine Plans

‣ BASE24-eps for global banks and processors (Postilion for Africa)‣ Postilion for global retailers (RCS for US and Mexico)

‣Features, infrastructure, extensibility, integration

‣Migration enablement‣Structured support plans for products across the maturity spectrum

‣Product Advisory Councils‣Early-stage use cases with specific customers

TARGETING POSTILION CORE TECHNOLOGY

GlobalRetailers

MobilePayments

Office

CurrentCustomers

Emerging Africa

FRONT END

FRONT END

MOBILE TOOLS

CORE SYSTEMS

NETWORKS

‣Depository systems‣Mortgage & loans‣Compliance

‣Global associations‣Regional networks

PAYMENTS PROCESSING

CORE SYSTEMS‣Systems of Record

‣Global associations‣Regional networks

NETWORKS

GLOBAL PAYMENT SOLUTIONS STRATEGY

PAYMENTS PROCESSING

MOBILE

Online, Mobile & Branch Banking

Internet Shopping

Enabling Mobile Payments & Mobile Wallets

Online & Mobile Banking

Trade

Middleware/Hub, Payment Services, Payments Processing for RTGS, ACH, SWIFT, Financial Messaging

FRONT END

FRONT END

MOBILE TOOLS

CORE SYSTEMS

NETWORKS

‣Depository systems‣Mortgage & loans‣Compliance

‣Global associations‣Regional networks

PAYMENTS PROCESSING

CORE SYSTEMS‣Systems of Record

‣Global associations‣Regional networks

NETWORKS

GLOBAL PAYMENT SOLUTIONS STRATEGY

PAYMENTS PROCESSING

MOBILE

Online, Mobile & Branch Banking

Internet Shopping

Enabling Mobile Payments & Mobile Wallets

Online & Mobile Banking

Trade

Middleware/Hub, Payment Services, Payments Processing for RTGS, ACH, SWIFT, Financial Messaging

BASE24-eps: A Scalable, Extensible Global Payments Platform

Release 11.1 (Q112)‣More features‣More infrastructure‣Migration enablement

Software Development Kit ‣ SOA-enablement‣Easier extensibility

“Customer component” ‣ Facilitates P2P, Mobile, ACH

Tetris release ‣ More features ‣ More infrastructure‣ Migration enablement

‣Robust global feature set‣Scalable, open infrastructure‣Flexible scripting and configuration‣Extensible by customers

RETAILER SOLUTION – BEST ASSETS COMBINEDSingle, integrated platform that forms the basis of a customer-centric retailing strategy. Leverage the critical interaction of payments as the foundation for growing profitably by driving new revenue, keeping more spend in store and reducing losses due to fraud and abuse. All available to license on-premise or as Software as a Service.

Net

wor

k Ac

cess

Third Party Process

Telcos

Gift Card Providers

Acquirers

Consistent Shopping Experience

Authorisation ServicesECR

MOTO

e-commerce

Transaction Channels

Net

wor

k Ac

cess

Fuel

Stored Value Cards

Proprietary Charge

Commerce Gateway

Settlement

Auto-Reconciliation

Transaction Queries

High Availability

Monitoring And Alerts Active/active

Web

Con

sole

s

Import / Export Files

Third Parties

Disaster Recovery

Configuration Management

Tokenisation

Point-to-point encryption

Net

wor

k In

terf

aces

Term

inal

D

rivin

g

Proactive Risk Manager

Reports

Mobile

CREDIT, DEBIT, PREPAID, PAYPAL

P2P PAYPAL/P2P ANYWHERE

MOBILEPAYMENTS

MOBILEWALLETMOBILE

BANKING

SOCIAL MEDIA

INTEGRATED FRAUD DETECTION AND PREVENTION

Real-time ScoringProfilingAnalyticsRules/ list management

Alert managementCase ManagementDashboards

ONLINE BANKING

BRANCH ATM POS CALL CENTERONLINE BANKING IVRMOBILE ACH & WIRE

Limit managementBlock checkingCVV validation

Sanctions filteringLimit managementDual controlPermissions

‣Browser security‣Entitlements ‣Token management

Multi-factor authenticationVelocity monitoring

Other Retail and Wholesale Payment Engines

Real-tim

e Dashboards and

Program

Effectiveness

Third Party VendorsAnalyticsAlertingAMLGovernance

Certified Interoperability

&

PAYMENTS PROCESSING

KEY CUSTOMER CONSIDERATIONS

KEY CUSTOMER CONSIDERATIONS :

PRODUCT AND CUSTOMER SUPPORT

No “end-of-life” for mission-critical products

You make the choice

Product support& customer options‣Migrate in full to the new solution‣Remain on the current solution‣Hybrid environments

ENABLING CUSTOMER CHOICE

1

Customer Migration Options

2 3

Migrate to New SolutionAbove-market product investmentLike-for-like investment protectionMaturing deployment infrastructureMigration enablement toolsStructured project processesMaturing services model

Remain on Current SolutionCommitment to no “end of life”Industry-standard maturity modelStructured support process, including mandate supportESP for code-stream specific support

Hybrid Environment1+2, plus – Bridging technologiesMigration support

LOWERING THE BAR ON MIGRATION COST/TIME/RISK

Lowering the migration bar through:‣Migration tools‣Migration programs

(e.g. Networks First‣ Services programs‣ Better experience and use cases

BASE24 (for example)

‣Proven, robust, scalable, secure‣Single platform‣Customization via source code change

Lower TCO & Faster time to market

CostRiskTime

BASE24-eps‣Open, flexible, modern technology‣Multi-platform support‣Customization via scripting and‣ Software Development Kit

CLOSING COMMENTS

‣ Tremendous activity in the payments market and at ACI – let’s share our experiences and team up to create winning strategies

‣ Please attend the detailed sessions and give us feedback

‣ Thanks for attending and enjoy the conference!

Thank You!

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