The document summarizes IBM Payments Gateway, a payment processing solution that allows merchants to accept more payment options. It discusses how evolving customer preferences are changing payments and creating challenges for merchants. IBM Payments Gateway aims to help merchants overcome issues like cart abandonment by offering over 170 payment methods across devices and channels. It also helps streamline reconciliation and reduce costs through features like automated payment routing and fraud analysis. The solution is deployed globally and used by various industries to improve sales and customer experiences.

1. IBM Payments
Gateway

2. MORE PAYMENT OPTIONS MEAN
MORE COMPLETED SALES.MORE COMPLETED SALES.
IBM PAYMENTS.
2

3. Digitally empowered customers are changing the
way commerce is done and while elusive they are
extremely valuable to merchants and billers
Evolving customer behaviors and
preferences create new consumer
payments challenges and opportunities
4/5 20% 56% 17%
customers dislike
the checkout
process because
it is inefficient or
inaccurate.1
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.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 Statista, “Why do online shoppers leave without paying?” 2012, http://www.statista.com/statistics/232285/reasons-for-online-shopping-cart-abandonment/3

4. The vast majority of merchants agree that accepting a larger variety of payment
types would lead to more completed sales
56%
66%
53%
57%
Fewer barriers to
buying for customers
Reduced cart
abandonment
Expansion to new
geographies / regions
71%
5%
more
1%
more
2%514%
86%
45%
Slightly agree
41%
Significantly agree
8%
Neither agree or disagree
Advantages of More Payment Options for Consumers
51%
44%
geographies / regions
Greater sales in
existing geographies /
regions 47%
IT Decision
Maker
Business Decision
Maker
2%
more
-3%
less
Other / unknown -1%
less
1%
2%
4
514%
more think
variety leads
to more
sales
86%
2%
Slightly disagree
1%
Unknown
3%
Significantly disagree
Merchants Who Believe More Payment Options
Leads to More Completed Sales
2016 IBM Payments Merchant Study

5. 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.
45%
Slightly agree
41%
Significantly agree
86%
12%
18%
1%1%
One
5
Merchants Who Feel Maintaining Security
Compliance Prevents Them from Offering More
Payment Types
2016 IBM Payments Merchant Study
2%
Unknown
18%
Do not agree
86%
17%
26%
86%
managing 3 or
more payment
solutions
24%
Four
Two
Three
Five
Between Six and Ten
More than Ten

6. Most merchants indicate that the additional financial overhead prevents them from
adding more payment options for customers
The Average Number of Employees Managing
Reconciliation and Settlement for Merchants is 21.
71%
49%
Slightly
22%
Significantly
21%26 – 30 employees
26%16 – 20 employees
6
Merchants Who Feel Additional Financial Overhead
Prevents Them from Offering More Payment Types
2016 IBM Payments Merchant Study
71%
5%
Unknown
24%
Not Affected 14%
9%
8%
2%
16%6 – 10 employees
11 – 15 employees
21 – 25 employees
1 – 5 employees
> 30 employees
Unknown 3%

7. Eliminate Data
Exposure and
Privacy
Concerns
CISO
VP of Fraud Prevention
Director of Network Security
________________________
Reduced
Reconciliation
Complexity and
Cost
CFO
Executive Director of Payments
________________________
Deployment,
Growth and
Certification
Abstraction
CTO
VP of Payment Transactions
Director of B2B
________________________
Superior
Customer
Payment
Experiences
CMO
VP of e-Commerce
Director of Channel Sales
______________________
__
IBM Payments Gateway was designed increase opportunities for sales growth and
decrease resource and development costs.
Increase transaction rate
leverage by enabling
processing through
multiple banks while
reducing cost through
complex payments
reconciliation insight and
chargeback dispute
analysis.
Assist counter-fraud
activities with complex
multi-bank reconciliation
and dispute insights while
eliminating concerns of
data at rest, regulation
compliance and system
exposure.
ConcernsCost
Leverage the SaaS cloud
architecture to alleviate
time-to-market, scalability
and security concerns by
offloading the burden of
PCI-compliance, data
security and regulation
maintenance to IBM.
Abstraction Experiences
Offer customers frictionless
and secure payment options
across devices and channels,
reducing checkout
abandonment and
improving the entire
shopping experience with
over 170 payment methods
in over 70 countries to help
your business grow globally.
Better
payments.
Better
experiences.
7

8. STREAMLINED RECONCILIATION
AND LEAST-COST-ROUTINGAND LEAST-COST-ROUTING
MEANS BETTER MARGINS.
IBM PAYMENTS.
8

9. A complete solution for online consumer payment acceptance
More payment options means
less cart abandonment and
increased sales.
More pre-integrated connections
means faster time to market.
Accept Connect
Stronger security and deeper
fraud analysis means more
trusted relationships.
Streamlined reconciliation and
least-cost-routing means better
margins.
ManageSecure
9

10. A truly global solution with locale-specific
currency and payment type support.
In use by manufacturers, credit
processors, retailers, consumer services
and telecoms around the world.
10
330+ TYPES
Large Payment Type VarietyGain Immediate Local Market Accessibility
95+ COUNTRIES

11. Tested and benchmarked to provide
exceptional performance when our clients
need it most.
Deployed on one of the world’s top 3
cloud platforms according to analysts
and researchers.1
BENCHMARKED
BEYOND 6,000 99.9992%
11
BEYOND 6,000
PAYMENTS PER
SECOND
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
99.9992%
UPTIME
Past 24 months

12. A consumer payment acceptance solution for retailers, merchants, and
billers
Pre-integrated to
hundreds of banks and
processors, IBM
automates payment
routing and secures
Payer
(Consumer)
Transaction
Acquirer
Payee
(Merchant)
Issuer
Processor
Instrument
Issuer
Network Acquirer
Processor
routing and secures
credentials across
digital channels.
12
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.

13. Acquirers/Issuers
Processors and
Third Party Providers
IBM Payments Gateway
Integration
APIs / HPP
PCI Data Vault
Tokenizer
in-app
online
in-store
Customer
Channels Merchant
web sites
mobile sites
call centers
IVR
mobile apps
agent cash ops
point of sale
order mgmt
{ JSON }
javascriptobjectnotation
Digital
Wallet
E-Cash
Virtual Terminal
/ Admin
330+ traditional and
alternative payment types
Customer Choice
IBM Payments Gateway solution capabilities overview
funds settlement
billing
logistics
credit mgmt
loyalty
ledger
AR
treasury
iOS android
Automated Payment
Reconcliation
Payment
Switch
Counter
Fraud
funds withdrawal
fulfillment
255+ pre-integrated banks
and processors
Instant Access
13

14. 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.
• Hosted Payment Page - Embeds “payment page” into merchants
{ JSON }
XML
14
• 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.
Comprehensive Payments Insight and Control
• 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

15. 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
15
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

16. 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
16
• 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

17. THE COMFORT OF EXPERIENCE
AND PROVEN RESULTS.AND PROVEN RESULTS.
IBM PAYMENTS.
17

18. 600k
IBM Payments Gateway
A multi-national toy and board game company located in North
America was deploying a new online storefront solution for B2B
Better retailing
made with IBM
expected purchase transactions per year direct
to the consumer via the online channel
subsidiary companies leveraging the same
cloud-based payment system at checkout
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.
12
18

19. 35
IBM Payments Gateway
A large North American telecom provider was facing a cost-
prohibitive upgrade to its payments system to meet new
Better telecommunications
made with IBM
internal systems aggregated to provide omni-
channel support for payments
level of PCI compliance enabled via the cloud
without any capital costs and delays in time to
market
prohibitive upgrade to its payments system to meet new
regulatory requirements. They also wanted to reduce customer
friction when making payments. The cloud-based IPG provided a
PCI compliant solution and card-on-file services to meet all
mandates and increase customer satisfaction.
1
19

20. 250k
IBM Payments Gateway
A European transportation agency needed an easier and simpler
way to let their residents pay for peak traffic driving and express
Better cities
made with IBM
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
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.
450k
20

21. 430
IBM Payments Gateway
A large European payments processor needed to develop a
strategy to compete in the digital wallet space against
Better financial services
made with IBM
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
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.
3700+
21

22. IBM is dedicated to your success, in your industry
Unparalleled Industry
Expertise
Extensive Industry
Support Community
Significant Technical
Investment
• 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
• 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
• 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
22

23. https://ibm.biz/BdHKF3https://ibm.biz/BdHKF3