HP Future Proofing Cards and Payments

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  • 1. FUTURE PROOFING CARDS ANDPAYMENTS Dee McGrath Vice President, Financial Services1 ©2012 Hewlett-Packard Development Company, L.P. © Copyright 2012 Hewlett-Packard The information contained herein is subject to change without notice
  • 2. HP is the world’s largest provider of information technology infrastructure, software, services, and solutions to individuals and organizations of all sizes.2 © Copyright 2012 Hewlett-Packard
  • 3. 3 © Copyright 2012 Hewlett-Packard
  • 4. An increasing area of importance Augmented Reality Social Media Cloud NFC Wallets Branded Contactless Mobile Paper Money General Wallets Shells P2P Purpose e-purse Charge Cards Gift Cards and Remittance 3-D Beads Secure Digital Virtual Wallets Currency 1980 1990 2000 600 BC 600 AD 1700 1900 1950 1960 QR Codes Debit Virtual Coins Checks / Consumer Multi-bank Card Payments M-POS Bank Drafts Charge Networks M-BankingBartering s M-Coupons Card M-commerce 4 © Copyright 2012 Hewlett-Packard
  • 5. HP solutions make life easer in ways you’ve probably never considered HP supports more than 5.6 million desktops, 2+ million smart phones, and 15 million IP addresses 13.3 billion >100 PB 2.4 billion 3.1 million credit card online data in healthcare viruses transactions 60 countries transactions detectedWe process over 13.3 billion We manage more than 100 We perform 2.4 billion We detect and quarantinecredit card transactions PB of online data in 60 healthcare transactions more than 3.1 million virusesannually countries annually annually5 © Copyright 2012 Hewlett-Packard
  • 6. North America EMEACards Accounts 12 million Cards Accounts 32 millionMerchants 1.3 million Merchants 54,000Transactions 3.7 billion Transactions 2.6 billion Latin America Asia Pacific Cards Accounts 8.6 million Cards Accounts 15.3million Merchants 1.2 million Merchants 530,000 Transactions 4.5 billion Transactions 2.5 billion HP has become one of the world’s largest 3rd party card processors
  • 7. High cost to serve, legacy infrastructure & an inability to innovateEXPECTATIONAlways-connected, DESIREanytime, anywhere Seamless experience and continuous access, across devicesMARKET TRENDS• Mobile internet: 10 billion+ units, (10x the size of the desktop internet)• Explosion in data stream subscriptions (premium media, social media, location-aware services, VoIP… )• 2014: 30 billion apps, $40 billion revenue (downloads + value-added services + ads) The things that were previously taken for granted are becoming less and less relevant7 © Copyright 2012 Hewlett-Packard
  • 8. We are more Today we carry the The web is social. connected than ever - internet in our pocket. 2012 is about global online convergence & big population is 1.9bn data8 © Copyright 2012 Hewlett-Packard
  • 9. Convergence is happening9 © Copyright 2012 Hewlett-Packard
  • 10. Mobile Payments HP IP – Mind Map ATC10 © Copyright 2012 Hewlett-Packard 10 HP Confidential
  • 11. Agile Card Framework - Modernization In 2007 HP initiated a modernisation of its card assets. The use of a SOA solution breaks down product silos and creates discreet services that can be repurposed and innovatively packaged11 © Copyright 2012 Hewlett-Packard
  • 12. Convergence is happening12 © Copyright 2012 Hewlett-Packard
  • 13. New Product Development Innovation Convergence of student ID card and debit card • Makes the financial provider relevant to their customer • Growth for a ‘mature’ product offering - cards13 © Copyright 2012 Hewlett-Packard
  • 14. 75 80 85 90 95 100 105 110 115 120 125 Mar-200814 © Copyright 2012 Hewlett-Packard May-2008 Jul-2008 Sep-2008 Consumer sentiment Nov-2008 Jan-2009 Mar-2009 Ask the customer..... May-2009 Jul-2009 Sep-2009 Nov-2009 Jan-2010 Mar-2010 May-2010 Jul-2010 Sep-2010 HP-RFi Australian Payments Research Nov-2010 Jan-2011 Mar-2011 Westpac-Melbourne Institute Consumer Sentiment Index May-2011 Jul-2011 Sep-2011 Nov-2011 Jan-2012 Mar-2012
  • 15. Then we investigated the current state: Which of the following payment methods do you use in a typical month? Please choose all that apply. 100% 90% 87% 80% 70% 60% 49% 47% 50% 46% 46% 44% 40% 34% 31% 30% 20% 10% 7% 0% Cash BPAY Credit card Scheme Debit EFTPOS card Direct debit Direct transfer Paypal Cheque Card 18-24 25-34 35-44 45-54 55-64 65-80 Total15 © Copyright 2012 Hewlett-Packard
  • 16. What are you changing to? To what payment method did you move the spending for which you previously used cash? 50% 48% 45% 39% 40% 35% 30% 30% 28% 24% 25% 23% 21% 20% 15% 10% 5% 0% Scheme Debit Credit card BPAY Direct debit Direct transfer Paypal EFTPOS card Card16 © Copyright 2012 Hewlett-Packard
  • 17. What do you prefer? Assuming that you have all of the following payment options available to you, please select the method you most prefer for each scenario.40% 37%35% 32%30% 28%25% 23% 22% 21% 21% 20% 20%20% 18% 19% 17% 17%15% 14%10% 5% 0% Buying over the Buying over the Shopping in a Paying by mail Paying for petrol Shopping at a Paying for a meal internet phone department store order / post supermarket at pub, café or restaurant Credit card Scheme debit card17 © Copyright 2012 Hewlett-Packard
  • 18. Seamless, secure, context-aware experiences for a connected world HP is a partner who recognises the changes occurring in the payments world.18 © Copyright 2012 Hewlett-Packard
  • 19. Customer Experience Extent to which a user can obtain and use the service to achieve their goals at the time it is needed. Strategic Elements New products, features and capabilities designed to increase usage, Product Innovation enhance customer satisfaction or drive more fee or interest income. Market Reach Product extension to additional geographies or schemes. Operational Internal product improvements to provide easier and more efficient processing, improve operations, and reduce costs. Enhancements Customer Product Innovation Market Reach Operational Enhancements Experience • Prepaid Cards • JCB • Exceptions Processing Functional Components • Mobility (Mobile (including Multi- • CUP • Technical (SOA, ODS, Payments and currency / Remittance • Discover BI, Rules Engine, Applications) and Gift Cards • PayPal Workflow) • Communications • Loyalty & Rewards • Closed Loop • Plastics Management (letters, statements, • Fraud • Double Byte • Application alerts) • Secure Payment • Asian Regionalization Processing • Portal / User Interface Services • Credit Risk • Data Analytics • Tokenization Management (e.g. • Reporting • Application Processing Triad) • Social Media • Authorization • Collections • Commercial Cards • General Ledger • Data Analytics19 © Copyright 2012 Hewlett-Packard
  • 20. New Product Development Innovation Convergence of Accounts Payable with Stored Card • Changes the view of the value chain • Connects with customer feelings with immediacy • Innovative – a bank solving an accounts payable issue!20 © Copyright 2012 Hewlett-Packard
  • 21. 21 © Copyright 2012 Hewlett-Packard