Omni-Channel Commerce’s Best Kept SecretPYMNTS.com – Karen Webster

IBM – Joe Aleardi, Joe Peterson

THE LAST MILE IN CONNECTED

CUSTOMER SHOPPING

EXPERIENCES.

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

Consumers are escalating their demand for card-not-present transactions online and through mobile devices in store

2012 2013 2014 2015 2016

$1.6Trillion

$1.1Trillion

$830Billion$620

Billion

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customers dislike the checkout process because it is inefficient or inaccurate.1

Digitally empowered customers are changing the way commerce is done and while elusive they are extremely valuable to retailers, merchants and billers

Evolving customer behaviors and preferences create new payments challenges and opportunities

of millennials would shop with a digital wallet via mobile device, even while making in-store purchases.1

of customers abandoned their shopping cart due to concerns over payments security.3

of online shoppers want to see a variety of payment options at checkout.2

1 Cognizant, Getting personal with shoppers, The Cognizant UK Shopper Study, 2013, http://www.cognizant.com/InsightsWhitepapers/Cognizant-UK-Shopper-Study-2013.pdf2 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-purchases3 Statista, “Why do online shoppers leave without paying?” 2012, http://www.statista.com/statistics/232285/reasons-for-online-shopping-cart-abandonment/4

Commerce executives are struggling with demands and fears of the connected consumer

Evolving customer behaviors and preferences create new payments challenges and opportunities

of consumers are afraid of having their credit card data stolen and abused – higher than those concerned about national security and war.2

of merchants say omni-channel solutions are a high priority –only 16% today feel they can be profitable at it today.1

1 JDA, Global Retail and Consumer Goods CEO Survey, 2015, http://now.jda.com/rs/jdasoftware/images/PWCExecutiveSummary_D.PDF2 Unisys, Security Security Index Survey, 2014, http://www.unisyssecurityindex.com/system/press_release/uploads/115/original/Unisys%20Security%20Index%20US%20News%20Release%20May%202014.pdf?13999294695

MORE PAYMENT TYPES. BETTER

DATA SECURITY. OMNICHANNEL DEMANDS.

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MostImportant Pain

Points at Checkout

Customers are most concerned with security of ease of checkout

7Source: ETA Strategy& payments survey April 2015 - http://www.electran.org/new-study-provides-insights-on-the-connected-customer/

15%

1%

23%

13%

Security and privacy

Irrelevant marketing

Speed of checkout and complexity

Lack of standardization

Other

Requirements for ‘Chip & Pin’ credit cards demand a new way to process but isn’t the only concern for merchants & billers

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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EXPERIENCE, DEPENDABILITY

AND SCALABILITY

WHEN YOU NEED

TO BE AT YOUR BEST.

IBM PAYMENTS GATEWAY.

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Before purchase Payment After purchase

DiscoverBrowse & Compare

Choose Pay/Buy LoyaltySupport/ Engage

Omni-channel marketing

Location-based marketing

User Reviews / Rating

Coupons / Rewards / Deals / Group buying

Mobile Ticketing

Location-based marketing

Social Sharing / Reviews

Loyalty Programs

*Common examples, not exhaustive

Price / Product

Comparison

Fulfill

Order Management and Delivery

Omni-channel Selling & fulfillment capabilities

Payment Type Selection

Card on File

Reconciliation & Insight

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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/CONNECT: 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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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

Thank Your For Joining The Webinar!To learn more about IBM Payments, please visit:

ibm.com/commerce/us-en/payments