Discover the key trends driving new commerce payments challenges and opportunities, and the technologies that are helping retailers successfully complete this critical "last mile" of the customer journey. View this IBM Commerce and PYMNTS.com webinar: http://ibm.co/1PQzALJ

1. Omni-Channel Commerce’s Best Kept Secret
PYMNTS.com – Karen Webster
IBM – Joe Aleardi, Joe Peterson

2. THE LAST MILE IN CONNECTED
CUSTOMER SHOPPING
EXPERIENCES.
2

3. 1 Aite, E-Commerce and CNP Impact Note, 2015, http://www.aitegroup.com/report/e-commerce-and-cnp-transactions-explosive-growth-explosive-risk
Consumers are escalating their demand for card-
not-present transactions online and through mobile
devices in store
2012 2013 2014 2015 2016
$1.6
Trillion
$1.1
Trillion
$830
Billion$620
Billion
3

4. customers dislike
the checkout
process because it
is inefficient or
inaccurate.1
Digitally empowered customers are changing
the way commerce is done and while elusive
they are extremely valuable to retailers,
merchants and billers
Evolving customer behaviors and
preferences create new payments
challenges and opportunities
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/4

5. Commerce executives are struggling with
demands and fears of the connected consumer
Evolving customer behaviors and
preferences create new payments
challenges and opportunities
of consumers are
afraid of having
their credit card
data stolen and
abused – higher
than those
concerned about
national security
and war.2
of merchants say
omni-channel
solutions are a
high priority –
only 16% today
feel they can be
profitable at it
today.1
1 JDA, Global Retail and Consumer Goods CEO Survey, 2015, http://now.jda.com/rs/jdasoftware/images/PWCExecutiveSummary_D.PDF
2 Unisys, Security Security Index Survey, 2014, http://www.unisyssecurityindex.com/system/press_release/uploads/115/original/Unisys%20Security%20Index%20US%20News%20Release%20May%202014.pdf?13999294695

6. MORE PAYMENT TYPES. BETTER
DATA SECURITY. OMNICHANNEL
DEMANDS.
6

7. Most
Important Pain
Points at
Checkout
Customers are most concerned with security of ease of
checkout
7 Source: ETA Strategy& payments survey April 2015 - http://www.electran.org/new-study-provides-insights-on-the-connected-customer/
15%
1%
23%
13%
Security and privacy
Irrelevant marketing
Speed of checkout and complexity
Lack of standardization
Other

8. Requirements for ‘Chip & Pin’ credit cards
demand a new way to process but isn’t the only
concern for merchants & billers
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
8

9. EXPERIENCE, DEPENDABILITY
AND SCALABILITY
WHEN YOU NEED
TO BE AT YOUR BEST.
IBM PAYMENTS GATEWAY.
9

10. Before purchase Payment After purchase
Discover
Browse &
Compare
Choose Pay/Buy Loyalty
Support/
Engage
Omni-channel marketing
Location-based marketing
User Reviews / Rating
Coupons / Rewards / Deals / Group buying
Mobile Ticketing
Location-based marketing
Social Sharing / Reviews
Loyalty Programs
*Common examples, not exhaustive
Price /
Product
Comparison
Fulfill
Order Management and Delivery
Omni-channel Selling & fulfillment capabilities
Payment Type
Selection
Card on File
Reconciliation
& Insight
10

11. 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
11

12. ACCEPT/CONNECT: A truly global solution with
locale-specific currency and payment type
support.
12
In use by manufacturers, credit processors,
retailers and telecoms around the world.

13. MANAGE: IBM Payments Gateway provides complete reconciliation and insight into all
payments activity
13
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

14. 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
14
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

15. Thank Your For Joining The Webinar!
To learn more about IBM Payments, please visit:
ibm.com/commerce/us-en/payments