IBM Payments Gatewaydelivering data security and consumer trust

CREATING SECURE CUSTOMER

PAYMENT EXPERIENCES.

IBM PAYMENTS.

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DISRUPTOR: 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

1 Aite, E-Commerce and CNP Impact Note, 2015, http://www.aitegroup.com/report/e-commerce-and-cnp-transactions-explosive-growth-explosive-risk

DISRUPTOR: At the same time online payment are growing 6x faster than traditional card-present transactions

2012 2013 2014 2015 2016

$1.6Trillion

$1.1Trillion

$830Billion$620

Billion

DISRUPTOR: For merchants trying to navigate security mandates and consumer demand can be daunting

After Euro adoption of EMV standards in 2002, off-line fraud rates dropped to just 3.5 basis points but on-line fraud rates more than doubled. 1

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RESPONSE: Customer-focused CxOs want to stop having to worry about risk and security and scaling IT systems

Source: Question B3–What are the top five areas you are personally involved in at an enterprise level?; Global n=2,940 to 2,954

-6%

-5%

-5%

+5%

+8%

+7%

Customer experiencemanagement

IT systems andoperations

Risk and security

Supplier, vendor andpartner management

eCommerce

Talent management

610 June 2015

DEPENDABILITY AND

SCALABILITY

WHEN YOU NEED

TO BE AT YOUR BEST.

IBM PAYMENTS.7

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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ACCEPT: 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

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

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

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

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• 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.

• 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

MANAGE: 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

CLOUD DELIVERY. REDUCED

SETTLEMENT COSTS. DATA

SECURITY.

IBM PAYMENTS.

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

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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

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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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.

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

IBM Payments Gateway addresses security needs for Finance and Technology leaders

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THE COMFORT OF EXPERIENCE

AND PROVEN RESULTS.

IBM PAYMENTS.

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

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

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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.

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

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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.

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

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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.

IBM is dedicated to your success, in your industry

• 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

• 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

• 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