B2B payments are broken! At the very least, they are a paper-intensive, high-touch endeavor that requires you to risk handling supplier bank accounts, deal with escheatment, and manage supplier inquiries. AribaPay, a new and unique method of B2B payment, leverages the strengths of both the Ariba Network and the Discover Network to solve the fundamental issues that plague B2B payments and prohibit you from moving more suppliers to electronic payments. By giving your suppliers full visibility into the payment with rich remittance and payment track and trace technology, you can virtually eliminate checks and supplier payment inquiries while outsourcing your biggest source of payment risk: supplier bank account management. Join this session to learn how AribaPay can fundamentally transform your B2B payments process while giving your suppliers what they really want: full visibility into information needed to reconcile as well as complete confidence in payment timing.

1. Solving B2B Payments!
Eliminate Checks, Reduce Risk & Save Money with AribaPay
Tom Turkot, VP, Arlington Computer Products
Mark Buchek, VP Arlington Computer Products
Drew Hofler, Director-Solutions Marketing, Ariba
March 19, 2014
#AribaLIVE
@ariba
© 2014 Ariba – an SAP company. All rights reserved.

2. Agenda
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Introducing AribaPay
B2B Payments – A Receiver‟s perspective
© 2014 Ariba – an SAP company. All rights reserved.

3. AribaPay: Before and After
Unintegrated  ‘High Touch’  Paper-Intensive  Opaque
Purchase
Order

Invoice
?
 Remittance
Advice


Existing Transaction Bank /
Payment
Check Issuance Provider
Closed-loop  Secure  Auditable  Transparent  Trackable
Purchase
Order

Invoice

Payment
with AribaPay
3
© 2014 Ariba – an SAP company. All rights reserved.

Remittance
Advice

4. AribaPay: Contrasting to Other Payment
Methods
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Unique value due to tight integration to „prepayment‟
business collaborations between Buyer-Supplier
•
AribaPay not intended to cover Wire transactions
which are typically high-value, low-frequency
payments handled manually by Buyer‟s Treasury
function and Bank
•
4
AribaPay is designed to be a better payment method
for Ariba Network trading partners paying/getting paid
by traditional ACH or paper check
Subject to customer demand, Ariba functionality may
add commercial card transactions integrated to
Ariba Network transactions
© 2014 Ariba – an SAP company. All rights reserved.

5. High-Level Flow AribaPay
• AribaPay is a secure,
global and scalable
payment method that
permits Buyers to pay their
Suppliers and deliver rich
remittance advice.
• AribaPay is not a credit
card offering.
• Leverages Discover‟s
trusted, secure and global
payment infrastructure
and ecosystem.
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© 2014 Ariba – an SAP company. All rights reserved.

6. A Scalable Enablement Program Key
to Success
• Ariba works with Buyer directly to
design, deploy and manage
enablement and on-going support
• Scalable and secure enablement
infrastructure
• Third party Merchant Acquirers, in
partnership with Discover, will
leverage processes and expertise
to capture bank account
details, validate Supplier
organization,
and identify proper individuals
with authority to manage banking
information.
• Weekly, ongoing monitoring of
AribaPay-enabled Supplier ensures
bank account information is
maintained, and risk/compliance
6

7. AribaPay:
New Remittance Advice
UI for Buyer and Supplier
‘Rich’ remittance information
including every invoice
accompanying payment.
Created at time of Invoice
Approval, which can be
days or weeks before
payment sent.
‘Clickable’ Invoice Summary
information
Opportunity for Supplier to
spot payment issues sooner,
assess internally and adjust
receivable accordingly.
For ‘problem’ payments
unintentionally short paid,
resolves disputes faster

8. AribaPay:
New Remittance Advice
UI for Buyer and Supplier
‘Track and Trace’ for payments
shows payment status for
every payment.
Fewer ‘check’s in the mail’
conversations. Suppliers can
assess payment status real-time,
all the time, with date-stamping of
messaging choreography.
Complete error messaging protocol
– failed payments have error
messaging that can be used by
Ariba Customer Support (hotswappable to Discover for payment
issues) to resolve potential issues.
Viewable by both Buyer and
Supplier users. Both sides see
same status/data.

9. AribaPay:
New Remittance Advice
UI for Buyer and Supplier
AribaPay ‘logic’ compares
incoming invoice value
from Supplier to ‘agreed to
pay’ value from Buyer.
Differences highlighted
with
icon to draw
user’s attention to
problem invoices.

10. AribaPay:
New Remittance Advice
UI for Buyer and Supplier
AribaPay native to Ariba
Network transactions, so all
Invoices, POs and related
business transactions with
Buyer in one environment.
A single portal for Buyer’s PO,
Supplier’s Invoices and now
payment transactions …and
underlying information.

11. AribaPay:
New Remittance Advice
UI for Buyer and Supplier
Information may be
printed or downloaded via
cXML to user’s systems.
Ariba will also make
available ‘integration’
solutions to populate backend accounting packages
such as Microsoft
Dynamics, QuickBooks,
Great Plains, etc.

12. AribaPay:
New Remittance Advice
UI for Buyer and Supplier
Payment directly to Bank
Account of Supplier’s choice.
No change in Buyer’s – or
Supplier’s – bank account
required to support AribaPay

13. AribaPay Benefits
Buyer
• „Per payment‟ cost amounts may
vary greatly from company to
company (and cost may be
blended into other financial
provider offerings)
• Fees include…
• Fewer paper checks
• Fewer supplier payment enquiries
• No more handling supplier bank accounts
• Payment method focuses Supplier mind on B2B enablement
• Less escheatment
• Deep integration to pre-existing Ariba Network transactions (PO, Invoice)
• Leveraging Discover ecosystem capabilities around anti-money
laundering (AML), Office of Foreign Asset Control (OFAC), and other risk
elements as regulatory environment increases in this area
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© 2014 Ariba – an SAP company. All rights reserved.
Bank Transaction Fees
Supplier Bank Account Management
ACH and/or Check Processing Fees
Postage, Check Printing, Storage, Paper
Handling, Other Paper Costs
• Escheatment
• FTE Expenses (reconciliation, supplier
payment enquiries, dispute
resolution, bank account management)
•
•
•
•
• Lower processing costs, no AribaPay transaction fees
* Ariba Estimate. Sources: EMC Consulting analysis, FRB, NACHA, IBM, McKinsey US Payments Map, expert interviews, Discover data

14. AribaPay Benefits
Sellers
• „Per payment received‟ costs amounts
may vary greatly from company to
company (and cost may be blended into
other financial provider offerings)
• Fees include…
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• Bank Transaction Fees
• Lockbox or financial provider AR fees
• Remittance Advice management, reconciliation
efforts
• Discovery of short-pays, resolution of disputes
• FTE Expenses (reconciliation, supplier payment
enquiries, dispute resolution, bank account
management)
• Richer remittance advice permitting faster reconciliation
• Reliable view of future payments, reducing collections team efforts
• Payment „track and trace‟
• Better auto-reconciliation rates
• Lower payment processing costs
• Earlier discovery and resolution of problem payments
• Better reporting
• Stronger perception of value of Ariba Network transactions
* Ariba Estimate. Sources: EMC Consulting analysis, FRB, NACHA, IBM, McKinsey US Payments Map, expert interviews, Discover data
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© 2014 Ariba – an SAP company. All rights reserved.

15. Recent Quotes* from Existing
Ariba Network Supplier
•
“This is exciting – this is a key pain point for supplier for sure…”
•
“The value proposition is there. Anything that reduces the time to reconcile and find short
payments is worthwhile”
•
“We need both sides to participate”… “How many out of those 70 buyers we have
[on Network] that we are invoicing will do this?”
•
“We would be interested to participate in the design phase” but “will need to know more
about costs, pricing after design phase, buyers who will use…”
•
“…What it will help with is our collections and our cash applications – with my remittance
application today I don‟t know offhand what is my cost of operations…”
* August 5, 2013 discussion with large US-based retail Supplier
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© 2014 Ariba – an SAP company. All rights reserved.

16. Suppliers Can Connect to Back-end Systems
with AribaPay-enabled integration packages from Dell Boomi
•
AribaPay will offer „out of the box‟ connectivity via Dell Boomi integration packages
to present seamless integration of AribaPay Payments and Remittance Information
to Supplier‟s most popular back-end systems
• Future Payment Visibility
Payment
Remittance Advice
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© 2014 Ariba – an SAP company. All rights reserved.
• Faster
Reconciliation
• Spotting
Problem
Payments
Faster
• Faster Dispute
Resolution
• Integrated to
Supplier‟s
Back-End
Systems

17. Tom Turkot, VP, Arlington Computer Products
Mark Buchek, VP Arlington Computer Products
B2B PAYMENTS:
A RECEIVER’S PERSPECTIVE
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© 2014 Ariba – an SAP company. All rights reserved.

18. ACP Company Background
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Founded in 1984; 30 years of Financial Stability
Delivered over $1.5 billion in IT Solutions
Outstanding Technology Partner Relationships
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Enterprise-oriented Customer Base with strong Public Sector
and Commercial Accounts
Customer Champion-Vendor Neutral
Entrepreneurial Based
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HP, IBM, Cisco, Juniper, MS, Apple, Dell…
Personal, Responsive, Flexible, Proven Track Record
HQ – Chicago, Reg. Offices – Atlanta, Milwaukee, Intl. - London
Excellent Customer References
© 2014 Ariba – an SAP company. All rights reserved.

19. ACP Invoicing Overview
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Average monthly invoicing over $11 million
Over 2,000 invoices average per month
5 FTEs support the invoicing process
Average cost of sending a manual invoice = $5
Lockbox costs
Ongoing collection efforts
© 2014 Ariba – an SAP company. All rights reserved.

20. ACP Current Invoicing and
Payment Pains
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Inconsistency of payments
Delays in collection
Manual process of posting payments
A/R Aging gaps due to delays
© 2014 Ariba – an SAP company. All rights reserved.

21. ACP Current Invoicing Work Flow
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Sales Team inputs an order into the system
Accounting processes the order
Purchasing places the order with distributors
Invoice generated through the system
Invoices manually stuffed and mailed
Remittance processing both manual and through a lockbox
and payments posted to the accounts
© 2014 Ariba – an SAP company. All rights reserved.

22. ACP Perspective on AribaPay – Why Join?
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Begin the process of automating invoicing and payments
Initiate Re-architecting Accounting Processes
Decrease days sales outstanding
Decrease Administrative Costs
Gain consistency in payments
Leverage the strength of the AribaPay Network
Eliminate manual processes
© 2014 Ariba – an SAP company. All rights reserved.

23. ACP Perspective on AribaPay –
Additional Benefits
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Improved application of funds
Eliminate the need to send duplicate invoices
Improved visibility throughout the payment process
Reduce Collection Efforts
Improved Cash Flow
© 2014 Ariba – an SAP company. All rights reserved.