The document discusses Paymit, a Swiss peer-to-peer payment solution, emphasizing its significance for Swiss banks and the evolving payments landscape due to digitalization and mobile technology. It highlights key trends and regulatory aspects impacting the payment market while detailing the functionality and adoption of Paymit, aiming to simplify transactions and reduce cash reliance. The document concludes with insights on future developments and the importance of innovation in the banking sector.

1. Seite 1
6. Juli 2015
Paymit – Swiss P2P Payment Solution
Thomas Landis

2. Seite
1
2
Trends and Digital Transformation
3
Regulatory aspects and other stumbling blocks4
In the next 50 Minutes
2
What is Paymit and why is it important for Swiss Banks?
Evolution in Swiss Payments Market
Outlook Paymit for Merchants5

3. Seite 3
A lot of trends that have not yet reached the necessary stage of
maturity today will have a medium to major impact in the future

4. Seite 4
A lot of trends that have not yet reached the necessary stage of
maturity today will have a medium to major impact in the future
“Begin to Plan” “Requires Attention”
“De-Prioritize” “Watch List”
Low High
Low
High
Impact
Polarity
Maturity Level
1 Market Consortiums Emerge
9
Mixed Views on
Mobile Proximity
4
P2P
Evolution
7 Developer
Communities
11
Shopping
Assistant Tools
10
Social
Payments
8
Virtual
Currencies
5
Expansion of Core Offering to
Other Payments
6 In-Person
Shopping Experiences
3
Emergence of
Cloud Solutions
12
MPOS
Revolution
2
NFC Success Driven by
Telco/Bank Relations
Timing
Impact Polarity
• Revenue / Cost
• Change to Ecosystem
• Change to Business Models
Maturity Level
• Awareness
• Usage / Penetration
Short Term (1-3 years)
Long Term (3+ years)

5. Seite 5
When we think about the future, we realize again and again that
we are entirely wrong when it comes to estimating time:
10 years10 years
"Went by quickly!" "Still so far off!"
The iPhone did not exist 10 years ago
Twitter was what a bird did
The cloud was up in the sky
4G was a parking space
LinkedIn was a prison
and Skype was a typo

6. Seite 6
The next 10 years will witness more changes in the payment
industry than in the last 30 years put together!
Information is forever
accessible at all times
• Digitalization of processes
• Digitalization of every-day
objects
• Products are “just” a piece of
software
• Everything is connected with
everything else
Globalization MobileDigitalization
Megatrend
The smartphone is
assuming an increasing
number of functions
Rollout software
products to the market
is cheap
New and at best
disruptive business
models
Megatrend Megatrend
New competitors from other
countries
• Clients expect innovations
that are already on the
market in the USA, Asia or
Africa
• Cultural differences are
being broken down
High-performance computers
are lying dormant in our
trouser pockets and handbags
• Smartphones accompany us
throughout the day
• 20,000 new apps per month
are added to the shelves of
the app store
• Wearables are becoming
increasingly important

7. Seite 7
What is the tipping point?

8. Seite 8
What we did: Focused on most important, most mature trend
“Begin to Plan” “Requires Attention”
“De-Prioritize” “Watch List”
Low High
Low
High
Impact
Polarity
Maturity Level
1 Market Consortiums Emerge
9
Mixed Views on
Mobile Proximity
4
P2P
Evolution
7 Developer
Communities
11
Shopping
Assistant Tools
10
Social
Payments
8
Virtual
Currencies
5
Expansion of Core Offering to
Other Payments
6 In-Person
Shopping Experiences
3
Emergence of
Cloud Solutions
12
MPOS
Revolution
2
NFC Success Driven by
Telco/Bank Relations
Timing
Impact Polarity
• Revenue / Cost
• Change to Ecosystem
• Change to Business Models
Maturity Level
• Awareness
• Usage / Penetration
Short Term (1-3 years)
Long Term (3+ years)

9. Seite
1
2
Trends and Digital Transformation
3
Regulatory aspects and other stumbling blocks4
9
What is Paymit and why is it important for Swiss Banks?
Evolution in Swiss Payments Market
Outlook Paymit for Merchants5

10. Seite 10
Online
banking
2015/2016
WALLET
The merging of the online and offline worlds is transforming
the Swiss payment market
Payment evolution
1
0
E-commerce
Money
transfer
Mobile
banking
Micro
payments
Mobile
commerce
Mobile
POS
Enhanced
P2P
EMV /
magnetic
stripe
Mobile
coupons
Loyalty Contactless
Mobile
loyalty
Self-
checkout
Mobile
top up
In-store
apps
OnlineOffline
Source: MasterCard Advisors Analysis, images taken from publicly available sources
Status
Key trends
•Multi-functional devices (one-stop shop)
•Multiple application by user
•Merging of online and offline

11. Seite
1
2
Trends and Digital Transformation
3
Regulatory aspects and other stumbling blocks4
11
What is Paymit and why is it important for Swiss Banks?
Evolution in Swiss Payments Market
Outlook Paymit for Merchants5

12. Seite 12
Sender
Pay
mit
• Open Standard for all Banks
• Easy and fast payment method based on mobile devices from person to
person connected directly to your Bankaccount or Credit Card
• Swiss Mobile Phone Number as the Alias
• Instant available funds for the receiver to be used within the P2P system
Paymit: what is it?
Innovation at SIX Payment Services
Receiver
Swiss
Credit Card
Bank
Account
Fr.
Stored
Value
Stored
Value Bank
Account
Fr.
In 6 seconds

13. Seite 13
Paymit (Live Demo): What is it?

14. Seite 14
SIX offers the Swiss banks a standardized P2P solution
Stored
value
Directory
Swiss banks
Paymit main functions
Welcome Luca!
Send Request
Activities Settings
P2P
service
Paymit main functions
Welcome Luca!
Send Request
Activities Settings
P2P
service
It’s Swiss.
It’s safe.
It’s from your bank.
P2P
service
Paymit main functions
Welcome Luca!
Send Request
Activities Settings
Paymit main functions
Welcome Luca!
Change Profile
Send Request
History Withdraw
P2P
Service

15. Seite 15
Paymit after 1st Week
Total User: 11’262 User
(without advertising)
Growth per day +/- 1’000 User

16. Seite 16
Then UBS and ZKB started to communicate Paymit

17. Seite 17
New Accounts the Morning after Communications started

18. Seite 18
Paymit after 1 Month
39’484 User (per 28.6.)
Growth per day +/- 2’000 User
32’939 Send Transactions
CHF 33.50 Avg. Trx.
Funding Kreditkarte CHF 34.62
Funding Bankkonto CHF 46.89
6’694 Money Requests
CHF 36.98 Avg. Request

19. Seite 19
High Transaction Periods
After Work Beer
Sharing Dinner Costs
Coffee Break
Sharing Lunch Costs

20. Seite
1
2
Trends and Digital Transformation
3
Regulatory aspects and other stumbling blocks4
20
What is Paymit and why is it important for Swiss Banks?
Evolution in Swiss Payments Market
Outlook Paymit for Merchants5

21. Seite 21
Highlights of the Solution
SIX
Bank
• Authentication and
authorization of the
user
• Processing of user
request
• Check user’s limits
• Fund transaction
• Transfer request to SIX
• Notification of the users
Switzerland
• Authentication and
authorization of the
bank
• Processing of request
• Check scheme limits
• Processing of credit
card funds
• Notification of the users
• Notification of the
banks
• Reporting
• Clearing
Luxembourg
• Account management
• Bookkeeping
• Balancing
• Reporting

22. Seite 22
Regulatory requirements
Sender
Paymit
• Two offers for full market coverage
- Integrated bank solution (SIX as processor)
- Stand-alone app for user/customers of banks that do not
yet participate
Receiver
Swiss
Credit Card
Bank
Account
CHF.
Stored
Value
Stored
Value Bank
Account
CHF.
• Payment to Swiss residents who have a Swiss
mobile phone number
• Sanction Screening for SIX-App: During
registration and on every update of sanction list
• Limits for SIX App: Max. turnover of CHF 5’000
per year, Max. balance of CHF 3’000
• Limits for all participants: number of
transactions, max. transaction amount, bank-
defined limits according to risk policies

23. Seite 23
Live Onboarding Process (KYC)

24. Seite
1
2
Trends and Digital Transformation
3
Regulatory aspects and other stumbling blocks4
24
What is Paymit and why is it important for Swiss Banks?
Evolution in Swiss Payments Market
Outlook Paymit for Merchants5

25. Seite 25
What is our vision?

26. Seite 26
P2P: from P2P to P2M
We aim to displace cash by
1. Simplifying P2P transactions together with Swiss Banks
2. Reducing investment and costs for cash and card transactions
3. Simplifying and leverage e-/m-commerce transactions for low value
payments < 12.50 CHF
4. Opening our P2P System to other payment providers with open API
5. Further displacing cash by bringing P2P to the EFTPOS Terminal
Sender Receiver
Swiss
Credit Card
Bank
Account
Fr.
Bank
Account
Fr.
SHOPPaymitStored
Value
Stored
Value

27. Seite 27
Going Market Roadmap Merchants

28. Seite 28
Thank You!

29. Consulting. Design. Agile Projects. Products. Innovation Hosting.
Paymit in the garage
Speed is the best remedy against
disruptive developments
Zürich 29. Juni 2015
Walter Strametz, CTO

30. ti&m AG and SIX group
ti&m innovation garage
Paymit solution
it is time to market!
06.07.2015 30
ti&m garage & Paymit – Agenda

31. ti&m – Our Offering
Individual full service for your digitization strategy.
CompetenceCenter
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Mobile
Microsoft
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Projects
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Commerce
ti&m channel suite
Der Benchmark
für Business-
Digitalisierung.
ti&m security suite
Next Generation
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und Access für das
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Business.
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critical solutions
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as a Service
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Social Business
IT
Requirements
Engineering
Architektur
Reviews Projekt-
management
Umsetzungsorientiert,
unabhängig und
innovativ.
» Erfolg durch Innovation,
Agilität und techno-
logische Exzellenz.
Produkte, Beratung
und Kundenbeziehung
digitalisiert und sicher.
Das Schweizer Full
Service Center für Ihre
Innovationsprojekte.
Innovationen durch
Emotionen, Kreativität
und Einfachheit.
» » » »
Business
ProzesseSolutions
Digitalization
Agile Methoden
Social Content
Management
ti&m scrum / RUP
Start-up
Enabling
CMS Solutions
06.07.2015 31

32. ti&m knows SIX group, their systems, interfaces and organization well and has
thorough experience in working in the banking environment.
ti&m – developing SIX history
 Innovation “garage” like Paymit
 Contract work (e.g. SIX BDM, P2P, P2X)
 Developing in SIX backend-systems
We are working also with numerous banks:

33. ti&m AG and SIX group
ti&m innovation garage
Paymit solution
it is time to market!
06.07.2015 33
ti&m garage & Paymit – Agenda

34. Do regulations, politics and
processes hold you back?
We offer space for your initiatives and help your idea to grow without borders.
Do you want to have place where your ideas
can prosper?
Do processes, systems and regulations hold
you back?

35. 06.07.2015 35
ti&m garage closes the innovation gap and turn their innovations into successful products!
ti&m garage – Closing the innovation gap1
or: when innovations become just a “good idea”
Ideate Select
Innovation
Gap
Development
Introduction
& Scale
Why innovation centers often fail: -
- Customers are lost on the transition
from the idea to the product.
- Existing Processes and silo thinking
create firewalls - the idea cannot
evolve.
- Unrealistic and untested assumptions
drive the idea – disappointments are
programmed.
Why the garage works:
- Takes the tools from “the left side” of
innovation, ideation into the development
phase
- Product is tested on the market as early as
possible – so are the assumptions.
- Integrated and co-located teams support
direct information flow – no slow processes.
- Time to market is key
1) Based «Bridging the Innovation Gap»

36. 06.07.2015 36
Be inspired by the ti&m innovation room and let your ideas grow by reducing to the maximum.
ti&m garage – the fuel for Speed
+ Design thinking
+ Agile Software Engineering
+ Excellent people
+ Vertical integration
ti&m garage
Ideas vs. hierarchies
Fast launches
Empowerment
Entrepreneurship
Time-boxed and Co-located @ ti&m Obtain products rapidly within
3
months
6
months
9
months
Innovation culture

37. 06.07.2015 37
The garage is the physical melting pot of innovation, iteration and market focus.
ti&m garage – Method overview
Backlog Tasks
Use time
blocker for
the tools
ti&m
garage
Empathize Artefacts & ceremonies:
- Ideation, e.g. Brainstorms
- Personas and Immersion
- Paper prototypes & wireframes
- Immersion, Interviews
- Gut Check
Fixed time block and budget, select tools you need that your product will pivot towards real needs.
Scale artefacts & ceremonies:
- Find first customers
- Measure success – data driven
decisions
- Business model and its assumptions
Product
& Pitch

38. 06.07.2015 38
ti&m garage focuses on the early visualization of the product and time to market
ti&m garage – What was the impact of the garage?
Front first
Mocking backend systems to move forward
Designer involved in the scrum team, short review after standup meeting
Co-location
We worked with short communication cycles – the product is the documentation
Minimal Viable Product
Do not hunt for the perfect solution which covers every scenario
No merchant integration
Different integration patterns

39. ti&m AG and SIX group
ti&m innovation garage
Paymit solution
it is time to market!
06.07.2015 39
ti&m garage & Paymit – Agenda

40. Consulting. Design. Agile Projects. Products. Innovation Hosting.
We have a
lift off!
06.07.201540
Next Steps:
• Network has to grow
• Followers can use
economies of scale
• Urgency is obvious

41. 06.07.2015 41
Releasing early catches market share, releases resources and reduces complexity.
Paymit – Integration patterns and saving through reuse (%)
Initiation
White
label
80 %
+
Onboar-
ding
60 %
1 2
“Loading” necessary
SIX virtual account
Integrated to SIX Paynet
Be part of the «Paymit cloud»
(Just change SIX logo)
Attached to bank account
integrated in bank
backend/middleware
or integrated with B-
Source/Swisscom
1 month
time-to-market
Full integration
~ +4 months time-to-market
2
Full
Integra
-tion
40 %
Integrated with security
Easy on boarding – no
repetition of personal
information

42. 06.07.2015 42
After white-label integration, continue iteratively, based on customer value, effort and risk.
Paymit – Partly and full integration pattern
existing
bank
Paymit
Integrator
Paymit
app
E-
banking
batch
REST
SOAP
White-label solution of SIX
1 months time-to-market
No integration with infrastructure
Client based on white label app
Security not integrated
security
existing
bank
Paymit
Integrator
Paymit
app
E-
banking
or app
batch
REST
SOAP
Onboarding integration
3 months time-to-market
Security Integration
Client onboarding integrated
Security integrated
Prospects can be included
security
existing
bank
Paymit
Integrator
Paymit
app
Mobile
banking
app REST
SOAP
Full integration
5 months time-to-market
Can be fully integrated in existing
channels
designed Paymit app
security

43. ti&m AG and SIX group
ti&m innovation garage
Paymit solution
it is time to market!
06.07.2015 43
ti&m garage & Paymit – Agenda

44. To be or not to be digital – Success stories
 Social Banking B2B-Community
 (Web & Smartphone) with approx. 8000 members
for Credit Suisse –
developed & hosted by ti&m.
9months
Innovation Corporate Cash Suite Innovation EamXchange
6months
 Multibanking Cash Suite for Corporate Customers
 Running on Desktops & Tablets.
 Design, Frontend & Backend by ti&m.
Time-To-Market Customer Benefit Agile

45. 06.07.2015 45
To be or not to be digital– Innovation Responsive Portal
Time-To-Market Customer Benefit Agile
11months
 One solution for Web 2.0 including all
mobile channels smartphones and
 Tablets & Browser - OS independent.

46. 06.07.2015 46
To be or not to be digital – Innovation Mobiles Payment
Time-To-Market Customer Benefit Agile
4months
 Design, Frontend and backend
integration by ti&m.

47. 5months
 State of the Art Smartphone- & tablet
banking solution of BCV.
 Frontend & backendintegration
by ti&m.
To be or not to be digital – Innovation BCV Smartphone & Tabletbanking
06.07.2015 47
Time-To-Market Customer Benefit Agile

48. 06.07.2015 48
6months
 ti&m designed and provided
API and smartphone solution
to enable Sanitas with new
digital business models.
To be or not to be digital – Innovation Smartphone
Time-To-Market Customer Benefit Agile

49. Unsere Kunden und Partner – Branchenreferenzen (Auszug)
Unsere Kunden spüren und schätzen unser unternehmerisches Engagement.
06.07.2015 49

50. Weitere
 Bundesamt für Informatik und
Telekommunikation (BIT)
 Bundesamt für Landestopografie swisstopo
 Eidgenössisches Departement für Wirtschaft,
Bildung und Forschung WBF
 Novartis
 Schweizerische Nationalbank
Unsere Kunden und Partner – Branchenreferenzen (Auszug)
Unsere Kunden spüren und schätzen unser unternehmerisches Engagement.
06.07.2015 50

51. Wir digitalisieren Ihr Unternehmen.
Consulting. Design. Agile Projects. Products. Innovation Hosting.
ti&m AG
Buckhauserstrasse 24
CH-8048 Zürich
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