Overview of IBM's Payment Solution Payment Gateway.

1. IBM Payments Gateway
delivering data security and consumer trust

2. CREATING SECURE CUSTOMER
PAYMENT EXPERIENCES.
IBM PAYMENTS.
2

3. DISRUPTOR: Digitally empowered customers are most concerned about credit fraud when
paying online
of customers
abandoned their
shopping cart due
to concerns over
payments
security.2
of online shoppers
want to see a
variety of payment
options at
checkout.1
1 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
2 Statista, “Why do online shoppers leave without paying?” 2012, http://www.statista.com/statistics/232285/reasons-for-online-shopping-cart-abandonment/3
of consumers are
afraid of having
their credit card
data stolen and
abused – higher
than those
concerned about
national security
and war.4

4. 1 Aite, E-Commerce and CNP Impact Note, 2015, http://www.aitegroup.com/report/e-commerce-and-cnp-transactions-explosive-growth-explosive-risk
DISRUPTOR: At the same time online payment are
growing 6x faster than traditional card-present
transactions
2012 2013 2014 2015 2016
$1.6
Trillion
$1.1
Trillion
$830
Billion$620
Billion

5. DISRUPTOR: For merchants trying to navigate
security mandates and consumer demand can
be daunting
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
5

6. RESPONSE: Customer-focused CxOs want to stop having to worry about risk and security
and scaling IT systems
Source: Question B3–What are the top five areas you are personally involved in at an enterprise level?; Global n=2,940 to 2,954
-6%
-5%
-5%
+5%
+8%
+7%
Customer experience
management
IT systems and
operations
Risk and security
Supplier, vendor and
partner management
eCommerce
Talent management
610 June 2015

7. DEPENDABILITY AND
SCALABILITY
WHEN YOU NEED
TO BE AT YOUR BEST.
IBM PAYMENTS.
7

8. A complete solution for digital commerce payments
over 170 different payment methods
with a deployment-ready solution
Highly Configurable
Consistent 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 Easily
Local Market Analysis & Worldwide Support
IBM Brand Recognition as a Business Partner
customer data to allow them to shop
with confidence
PCI-Compliant Data Vault
Manage All Payment Credentials
Absorbs Regulation Compliance Burden
from a single view of payments
across all channels and locations
Manage Payment Routing
Automates Settlement Reconciliation
Straightforward Data Feed
8

9. ACCEPT: Retail payments acceptance solution for merchants,
processors and acquiring banks
9
Payer
(Consumer)
Transaction
Acquirer
Payee
(Merchant)
Issuer
Processor
Instrument
Issuer
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.
Network Acquirer
Processor

10. CONNECT: A truly global solution with locale-
specific currency and payment type support.
10
In use by automotive manufacturers, credit
processors and telecoms around the world.

11. IBM Payments Gateway is easy to integrate, easy to use and easy to manage
11
• JSON API – Provides full control of payment GUI and user experience,
a RESTFull 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 Andoid and iOS source code
libraries.
• Hosted Payment Page - Embeds “payment page” into merchants
website to receive and store payment info (e.g. credit card #) within a
PCI compliant vault requiring no additional development.
• 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

12. MANAGE: Tested and benchmarked to provide
exceptional performance when our clients need
it most.
12
Deployed on cloud systems by IBM, one of
the world’s top 3 cloud providers according
to analysts and researchers. 1
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

13. CLOUD DELIVERY. REDUCED
SETTLEMENT COSTS. DATA
SECURITY.
IBM PAYMENTS.
13

14. MANAGE: IBM Payments Gateway provides complete reconciliation and insight into all
payments activity
14
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

15. 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
15
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

16. IBM Payments Gateway addresses security needs for Finance and Technology leaders
16

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

18. expected purchase transactions per year direct
to the consumer via the online channel
subsidiary companies leveraging the same
cloud-based payment system at checkout
18
A multi-national toy and board game company located in North
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.

19. 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
19
A European transportation agency needed an easier and
simpler 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.

20. 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
20
A large European payments processor needed to develop a
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.

21. IBM is dedicated to your success, in your industry
• Accelerate solution design
and thorough business
process expertise
• Reduce project risk with
reusable implementation
patterns and support for
industry standards
• The #1 Banking Industry
provider as ranked by the
FinTech 100
• IBM partners with the top
banks 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 to create a truly
smarter approach to commerce
• Integrated products for easier
implementation and increased
speed to value
• Synchronized product
roadmaps across software
portfolio