IBM Payments

Gateway
MORE PAYMENT OPTIONS MEAN
MORE COMPLETED SALES.

IBM PAYMENTS.

2
Digitally empowered customers are changing the Evolving customer behaviors and
way commerce is done and while elusive they are preferences create new consumer
extremely valuable to merchants and billers payments challenges and opportunities

4/5 20% 56% 17%

customers dislike of millennials of online shoppers of customers
the checkout would shop with want to see a abandoned their
process because a digital wallet via variety of payment shopping cart
it is inefficient or mobile device, options at due to concerns
inaccurate.1 even while checkout.2 over payments
making in-store security.3
purchases.1

1 Cognizant, Getting personal with shoppers, The Cognizant UK Shopper Study, 2013, http://www.cognizant.com/InsightsWhitepapers/Cognizant-UK-Shopper-Study-2013.pdf
2 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-purchases
3 3 Statista, “Why do online shoppers leave without paying?” 2012, http://www.statista.com/statistics/232285/reasons-for-online-shopping-cart-abandonment/
The vast majority of merchants agree that accepting a larger variety of payment
types would lead to more completed sales
Advantages of More Payment Options for Consumers
41%
Significantly agree
Fewer barriers to 71%
buying for customers 66% 5%
45% more
Slightly agree
Reduced cart 57%
abandonment 56% 1%
8% more

86 % %
514
more think
Neither agree or disagree Expansion to new
geographies / regions
53%
51% 2%
2% Greater sales in more
variety leads Slightly disagree 44%
existing geographies /
47% -3%
to more regions less
3%
sales Significantly disagree Other / unknown 1% -1%
2% less
1%
Unknown
Business Decision IT Decision
Maker Maker
Merchants Who Believe More Payment Options
Leads to More Completed Sales

4 2016 IBM Payments Merchant Study

Keeping up with security mandates and managing multiple payment solutions
impacts payment options and increases cost
The Average Number of Acceptance Solutions
Merchants Must Manage is 4.

41% 1% 1%
Significantly agree

45% 12%
Slightly agree 18%

86%
One

Two
18%
Do not agree 86%
managing 3 or 26%
Three

Four
2% 17% more payment Five
Unknown
solutions Between Six and Ten

More than Ten

24%
Merchants Who Feel Maintaining Security
Compliance Prevents Them from Offering More
Payment Types

5 2016 IBM Payments Merchant Study

Most merchants indicate that the additional financial overhead prevents them from
adding more payment options for customers

The Average Number of Employees Managing

22% Reconciliation and Settlement for Merchants is 21.
Significantly

49% 16 – 20 employees 26%

Slightly

71%
26 – 30 employees 21%
6 – 10 employees 16%
24%
Not Affected 11 – 15 employees 14%
21 – 25 employees 9%
5%
Unknown 1 – 5 employees 8%
> 30 employees 2%
Unknown 3%
Merchants Who Feel Additional Financial Overhead
Prevents Them from Offering More Payment Types

6 2016 IBM Payments Merchant Study

IBM Payments Gateway was designed increase opportunities for sales growth and
decrease resource and development costs.
CFO CTO CISO CMO
Executive Director of Payments VP of Payment Transactions VP of Fraud Prevention VP of e-Commerce
Director of B2B Director of Network Security Director of Channel Sales
________________________ ________________________ ________________________ ______________________
__
Reduced Deployment, Eliminate Data Superior
Reconciliation Growth and Exposure and Customer
Complexity and Certification Privacy Payment
Cost Abstraction Concerns Experiences
Increase transaction rate Leverage the SaaS cloud Assist counter-fraud Offer customers frictionless
leverage by enabling activities with complex and secure payment options
architecture to alleviate
processing through across devices and channels,
time-to-market, scalability multi-bank reconciliation
multiple banks while reducing checkout
Better reducing cost through and security concerns by
offloading the burden of
and dispute insights while
eliminating concerns of
abandonment and
improving the entire
complex payments
payments. reconciliation insight and
chargeback dispute
PCI-compliance, data
security and regulation
data at rest, regulation
compliance and system
shopping experience with
over 170 payment methods
Better analysis. maintenance to IBM. exposure. in over 70 countries to help
your business grow globally.
experiences.

7
STREAMLINED RECONCILIATION
AND LEAST-COST-ROUTING
MEANS BETTER MARGINS.

IBM PAYMENTS.
8
A complete solution for online consumer payment acceptance

Accept Connect
More payment options means More pre-integrated connections
less cart abandonment and means faster time to market.
increased sales.

Secure Manage
Stronger security and deeper Streamlined reconciliation and
fraud analysis means more least-cost-routing means better
trusted relationships. margins.

9
A truly global solution with locale-specific In use by manufacturers, credit
currency and payment type support. processors, retailers, consumer services
and telecoms around the world.

Gain Immediate Local Market Accessibility Large Payment Type Variety

10
95+ COUNTRIES 330+ TYPES
Tested and benchmarked to provide Deployed on one of the world’s top 3
exceptional performance when our clients cloud platforms according to analysts
and researchers. 1
need it most.

BENCHMARKED
BEYOND 6,000 99.9992%
PAYMENTS PER
SECOND
UPTIME
Past 24 months

11 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
A consumer payment acceptance solution for retailers, merchants, and
billers
Pre-integrated to
hundreds of banks and
processors, IBM
Payer Instrument Issuer Network Acquirer Transaction Payee
(Consumer) Issuer Processor Processor Acquirer (Merchant) automates payment
routing and secures
Acceptance Technologies: credentials across
Integrate through APIs to pre-integrated payment digital channels.
methods, banks and processors around the globe.

Payments Management:
A cloud-based payment management solution with one
view of payments and reconciliation across channels.
12
IBM Payments Gateway solution capabilities overview
Channels Merchant IBM Payments Gateway Acquirers/Issuers
Processors and
Customer online web sites
PCI Data Vault Third Party Providers
mobile sites Tokenizer

call centers
in-app Digital
IVR Wallet
Integration
mobile apps
APIs / HPP
in-store E-Cash Customer Choice
agent cash ops
330+ traditional and
point of sale
{ JSON } Virtual Terminal alternative payment types
javascript object notation
/ Admin
order mgmt
iOS android

billing
Payment
logistics Switch
credit mgmt
fulfillment Counter
loyalty Fraud

ledger
Automated Payment Instant Access
AR
Reconcliation 255+ pre-integrated banks
treasury
and processors

funds settlement

funds withdrawal
13
IBM Payments Gateway provides additional advanced integration capabilities
Multiple Web, API and App Integration Options
• APIs – Provide full control of payment GUI and user experience, a
RESTFul (JSON) 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 Android and iOS source
code libraries. XML
• Hosted Payment Page - Embeds “payment page” into merchants
commerce site to receive and store payment info (e.g. credit card #)
within a PCI compliant vault requiring no additional development.
{ JSON }
javascript object notation

Comprehensive Payments Insight and Control

• Technical Issues
• Entry point: 2nd Level Support Desk iOS android
• Escalation: Support Desk Manager / Duty Manager
• Business Related Issues
• Entry point: IPG Account Manager
• Escalation: IPG Operations Team Lead / PS Operations
Manager
14
Highly secure data vault in the cloud and tokenized communication means no
longer having to manage customer credit data and security headaches in house

PCI Data Vault with Tokenization

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.

Counter Fraud Prevention

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

15
IBM Payments Gateway provides complete reconciliation and insight into all
payments activity

Straight-Through Processing
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

Lower Settlement Costs

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
16
THE COMFORT OF EXPERIENCE
AND PROVEN RESULTS.

IBM PAYMENTS.

17
 IBM Payments Gateway

Better retailing
made with IBM
A multi-national toy and board game company located in North 600k
America was deploying a new online storefront solution for B2B
and B2C sales. The company selected IBM Payments Gateway
expected purchase transactions per year direct
to accept multiple credit/debit card, ACH and digital wallet to the consumer via the online channel
payment types along with a card-on-file solution to streamline
subsequent customer checkout experiences.

12
subsidiary companies leveraging the same
cloud-based payment system at checkout

18
 IBM Payments Gateway

Better telecommunications
made with IBM
A large North American telecom provider was facing a cost- 35
prohibitive upgrade to its payments system to meet new
regulatory requirements. They also wanted to reduce customer
internal systems aggregated to provide omni-
friction when making payments. The cloud-based IPG provided a channel support for payments
PCI compliant solution and card-on-file services to meet all
mandates and increase customer satisfaction.

1
level of PCI compliance enabled via the cloud
without any capital costs and delays in time to
market
19
 IBM Payments Gateway

Better cities
made with IBM
A European transportation agency needed an easier and simpler 250k
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, vehicles/owners in use that have accounts
and need payments management
credit/debit card, IVR and SMS. The solution also simplified and
reduced fee collection costs as well.

450k
movements are tracked daily and
corresponding payments must be
processed when peak charges are
assessed
20
 IBM Payments Gateway

Better financial services

made with IBM
A large European payments processor needed to develop a 430
strategy to compete in the digital wallet space against
competition like PayPal and Google Wallet for online, mobile and
million debit, credit pre-paid and commercial
NFC sales. The IPG solution was deployed to cardholders and cards issued in processors’ regional footprint.
provides wallet services, payments gateway, merchant on-
boarding and hosted payment/checkout pages.

3700+
banks and member cooperatives that now
have access to deliver a digital wallet solution
to their customers through the new service
21
IBM is dedicated to your success, in your industry
Unparalleled Industry
Expertise
• Accelerate solution design
and thorough business
process expertise
• Reduce project risk with
reusable implementation
patterns and support for
industry standards
• Extensive support, research
and domain leadership
across more than 40
industries and sectors
22
Extensive Industry
Support Community
• IBM partners with the top
retailers, merchants and
billers 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
Significant Technical
Investment
• Over $3 billion invested in
the last 3 years in
Commerce to create a truly
smarter approach to
commerce
• Integrated products for easier
implementation and increased
speed to value
• Synchronized product
roadmaps across software
portfolio
https://ibm.biz/BdHKF3