Payments innovation-index

The only quantitative !assessment of the payments !industry’s readiness !to ignite or adapt to!innovation and change!

Proprietary & Confidential. Not for Distribution without express written permission

Payments Innovation Index 360°!

The Payments Innovation Index | Scope & Purpose!

There is currently no consistent, reliable benchmark that measures how companies are addressing innovation in the payments space. The rapid evolution of technology is making it critically important to understand how well certain segments are performing as well as how specific companies compare within each segment.

Scope US Retail Payments

Purpose

Assess Each Player’s Readiness to Ignite or Adapt to the Innovative Changes in

Payments (vs. each other and vs. other segments)


The Payments Innovation Index | Vision!Our vision is to be THE brand index for payments innovation – a credible, reliable ranking of companies.

It will help individual companies identify their strengths and weaknesses vs. the competition.

It will signal where they need to improve their external perception or where they can leverage brand strengths.

It will demonstrate where certain segments fall short vs. other segments and potential areas they can leverage to move the needle forward.


The Payments Innovation Index | How it Works!Methodology With development and guidance from leading academics and industry thought leaders, the Innovation Readiness Index leverages proven methodologies for measuring innovation strategies and execution. Its structure ensures that it is not biased towards one industry segment, enables rich external evaluation, and is uniquely distinctive within the payments industry.

Categories covering 100 companies Top companies from across the payments value chain including:

What’s In It?

•  Professional payment industry perceptions of company performance using survey methodology from PYMNTS subscriber base

•  Patent strength, using competitive impact •  Financial metrics and performance •  Company investments, partnerships, active initiatives

Objective performance metric derived from multiple data points including

•  Networks •  Issuers •  Money Transmitters

•  POS Enablers •  Commerce Platforms •  Security

•  Stored Value •  Processors •  Rewards & Loyalty


The Payments Innovation Index | Components!Components “The Index” – multiple, objective data elements combined to determine the value for each company based on a rigorous methodology.

Self-evaluation survey – an in-depth analysis of what drives innovation within each company and the ability to create value within the ecosystem. Categories include:

Purpose of each component The Index is designed to give all companies a “starting point” and reflect where they stand today with regards to driving innovation. In addition, it will also reflect how individual segments compare to each other – For example are Rewards companies leading the way vs. Processors? The self-evaluation survey is a deep dive into the “what” of a particular company. It provides a richness of the process, focus and value captured by innovation. Perhaps more importantly, it will allow you to compare how your institution handles innovation vs. your peers or other companies within the ecosystem by indexing across all other participating entities.

•  Role of Innovation •  Value Proposition •  Sources of Value

•  Monetization model •  Ignition strategy


The Payments Innovation Index | Program Architects!David Evans

Karen Webster

•  Founder, Market Platform Dynamics •  Visiting professor at University College London & the University of Chicago •  Ph.D. in Economics, University of Chicago and Author of Paying with Plastic

•  CEO, Market Platform Dynamics and President, PYMNTS.com •  One of the world’s leading experts on emerging payments and commerce •  Masters Degree in Marketing from John’s Hopkins University

•  Recognized leader in the successful design and deployment of new products and emerging payment strategies worldwide

•  Over 20yrs experience of working with financial institutions and retail partners •  Managing Director, Market Platform Dynamics •  MBA in Finance from the University of Chicago Booth School of Business

Gloria Colgan

Josh Lerner •  Jacob H. Schiff Professor of Investment Banking at Harvard Business School, and

head of the Entrepreneurial Management unit •  Ph.D. in Economics from Harvard •  Author, The Architecture of Innovation, The Venture Capital Cycle, The Money of

Invention, and Boulevard of Broken Dreams


The Payments Innovation Index | The Output!Proprietary Report & Analytic Platform Participating companies receive access to a detailed annual report with summary findings, company and industry rankings/benchmarking based on:

Robust Analytic Platform PYMNTS will create and host a robust analytic platform which allows each company to cross-tab and analyze responses for categories in which they participate. The data contained within the platform will allow participating companies to benchmark themselves against the competition across a number of dimensions including external perception scores, patent value and strength, innovation investment history, org structure and culture, financial commitment, strategic focus, degree to which the company has influence on the rest of the ecosystem, asset value and innovation rigor

•  Quantitative index •  Perception of the company based on feedback from PYMNTS.com

subscribers •  Patent strength •  Financial metrics •  Four additional metrics that combined comprise “the index”

•  Self evaluation score indexed vs. competitors and vs. other payment segments


The Payments Innovation Index | Example!Example report – Patent Information

Qua

lity

Com

petit

ive

Impa

ct

Quantity Portfolio Size

Client

Bubble Size: Patent Asset Index™ A

B

C D

H F I

E

G


The Payments Innovation Index | Example!Example report – Evolution of patent portfolios over time

Bubble Size: Patent Asset Index™

Company A

Company B

Qua

lity

Com

petit

ive

Impa

ct

Quantity Portfolio Size


For More Information | Contact Us!Karen Webster CEO Market Platform Dynamics [email protected]

Gloria Colgan Managing Director Market Platform Dynamics [email protected]
