Living in Real Time …Moving Payments On -Line · Trends in noncash payments 2000–15, by number 1. Checks continue their ... 2016 Eighth Annual Billing Household Survey ... FAST!

Living in Real Time…Moving Payments On-Line Mid Council Financial Network ConferencePresbyterian Church USANovember 7th, 2018

Questions????

Reminder

Closing Comments: Three Things to Remember

PayerExpress: Bringing a Real Time Payment Process to Your Fingertips

The NEW Language for Payments

Why Should You Care? Why You SHOULD Care!!!!

Times … They are a’ Changing

The Current Language of Payments

First, An Observation

1

A Roadmap for our Discussion

Current State of Payments

Current terminology in the Payments World Coin & Currency

Check

Wire

Card – A story for now

ACH – A story for later

2

The Changes that are Coming … and FAST!



Check

Wire



3


PayerExpress

One of the first banks to enter the Electronic Bill Presentment and Payment Services industry in 2007

Client base covers a diverse group of industry segments including:− Healthcare− Insurance− Utility− Real Estate− Municipal− B2B – Wholesale Distribution− . . . and many more . . .

Currently processing over 350,000 payments per month through the online application− Over $300 Million / month in bill

payments processed− More than 325 clients

PNC is represented on NACHA’sPayment Innovation Alliance Group

Upgrades and enhancements are made 2-3 times per year

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1 The Federal Reserve Payments Study 2016 -- www.federalreserve.gov

EBPP Experience

Trends in noncash payments 2000–15, by number1

Checks continue their precipitous decline as a form

of non-cash payment



Check

Wire



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Check

Wire



6


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Future State of PaymentsThe Changes that are Coming … FAST!

Now, the story for later: ACH…In Context

Conceptualized in 1968

First payment processed in 1972 (1 payment)

NACHA established in 1974

Same Day ACH launched in 2016

New Proposal for higher limits and a late window

ACH Payments have grown dramatically since making one payment in 1972…

Future State of Payments

A simplified approach to online bill presentment and payment− Summary, Detail & PDF Billing options− Card and ACH payment options

PNC hosted portal that can be linked to your organization’s website− Client branding is available including custom logo, color schemes and authentication values− PNC hosted site ensures PCI-DSS, NACHA WEB & TEL, HIPAA, HI-TECH compliant

Payment channels include online and mobile (responsive design):− One-time guest− Enrolled one-time, recurring, future dated− Interactive voice recognition− Customer service representative − One time− Future dated− Recurring − Auto-debit− In-person card swipe

Online administrative and reporting capabilities

Financial settlement occurs on a next day basis

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1 2016 Eighth Annual Billing Household Survey

The Changes that are Coming … FAST!

Consumer Bill Payment Preferences1


1 US Census Bureau2 Salesforce Blog, How Millennials are Shaping Mobile Payments, 20153 Social Media Week, 2016

Key Transformation Drivers – Your Clients AND Your Employees

GENERATION AGE SIZE1

Millennials 15-35 92 million

Generation X 36-51 61 million

Baby Boomers 52-70 77 million

35%

33%

29%

2016 Workplace

MillennialsGen XBoomersOther

By 2025, Millennials & Gen Z will represent 75% of the workplace2

CHARACTERISTICS

Raised in a digital world

Thrive on peer acceptance

Don’t embrace traditional financial processes

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New terminology for the Payments World:

Just The F.A.A.C.S. Finality

Availability

Application (Payment Information)

Cost

Security

Rather than Payment Type, Think … Smart Routing!

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nRT*

* As defined

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nU*

* As defined

12



nRT*+nU*= nN

# As defined in the payments world

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#

Future State of PaymentsThe Time has come for Real Time Payments

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INNOVATION

First new payment channel in over 40 years

SPEED

Funds sent and received 24/7/365

SECURITY & UBIQUITY

Introduced by The Clearing House … targeting ubiquity by

2020

TRANSPARENCY

Real-Time confirmation to both parties

COLLABORATION

RFI, RFP, Payment Acknowledgement Messaging

INFORMATION

Extended remittance details delivered in ISO 20022

Integrating Your Receivables Management … and expanding your reach

Order Fulfillment Billing

Inquiry/Terms

Payment Cash App Exception Mgmt

Past-due Collections

Order-to-Cash (O2C)

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Receivables Roundtrip – A Visual

Focusing on the end-to-end O2C process helps organizations create a Receivables Roundtrip solution to streamline customer billing and automate cash application to reduce DSO.

Mailed Bills

Online Bills

Customers Online Banking Bill Pay

Web, IVR, CSRPayments

Consolidated Remittance File

ERP

Mailed / Scanned PaymentsBilling

File

ERP

PayerExpress: An Overview… A Closer Look at EIPP

PayerExpress

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Electronic Presentment and Payment Enablement via Payer Express

The Process Flow: How It Works

Payment Channels

File Integration

Funds Settlement

CSR

IVR

Auto-debitProgram

Website

Billing / Admin System

Posting File

Billing File

PNC ACH Ops

PNC Merchant Services

PayerExpress

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Payer initiated invoice print suppression is available under any invoice presentment options

Invoice Presentment Options

PDF PresentmentProvides the exact PDF rendering that is received by PNC

Summary Presentment

Provides invoice-level data fields such as previous balance due, payments made, current charges and total amount due

Detail PresentmentProvides the same invoice-level data as the summary format, plus transaction level data fields such as item numbers, order

quantities, transaction amounts and transaction dates

PayerExpress

PNC has deployed a “Responsive Design” of PayerExpress that will allow users to access the online payment portal from any device. (Automatically formats to device screen size). System is also ADA compliant.

Enrolled customers can login using a computer or mobile phone to your website, where they can add their bills to Apple Pay or Google Pay.

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6% 8%

16%

27%33%

2011 2012 2013 2014 2015

% of US Online Households Paying at Least One Bill through Mobile Bill Pay1

1 Eighth Annual Billing Household Survey, Fiserv Inc., 2016

Mobile Capabilities

PayerExpressInterface: PNC Hosted Site

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Customer Experience and Related Data Integration

PNC Hosted Solution

Account information delivery from

company Online reporting

And/or Transmission of payment details

Web upload or transmission

Users can be directed to the PayerExpress website via: Link from company website Separate marketing/mailings Company’s Customer Service Rep initiated enrollment email

Or via Single Sign-on Authentication from Company’s system

Company can elect to further control the user experience with more limited deployment of Payer Express Secure Hand-off (payment capture only) API connection to PNC for payment processing

PayerExpress

PNC’s Single Sign On service allows Payers to login through

the Company hosted website and, in a seamless and secure manner,

be transferred to the Company branded PayerExpress site for bill viewing and payment

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Interface: Single Sign On (SSO)

User Login to Company Hosted

Site SSO Token Authentication PayerExpress Access

Payer logs into Company hosted site

Company hosted site sends information to SSO

token server

Payer enters Company branded PayerExpress to view bills and

make a payment

PayerExpress

Secure Handoff allows Company to collect remittance information, redirects the end user to a Company

branded PayerExpress payment screen, which will include information such as billing account

number, customer data and billing data.

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Interface: Secure Handoff – Version of Single Sign On

SSO Token Authentication

PayerExpress Access

Payer logs into Company hosted site

Company hosted site sends information to SSO

token server

Payer enters Company branded PayerExpress, is able to view

billing, account number, customer data and billing data,

make a payment, then be redirected back to Company

hosted site

Company hosted site collects remittance

information from Payer and passes billing, account number, customer data

and billing data

Company Hosted

Site


Site

PayerExpress

PNC’s Application Program Interface (API) allows Company to customize

and own the visual side of the online portal

while utilizing PNC as the back-end payment processing engine

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Interface: Application Program Interface (API)

Company Hosted Site PayerExpress Back Engine

Payer logs into Company hosted

site

PNC is the back end payment engine, Payer does not interact with

PNC hosted site

Payer views bill and makes payment on Company hosted

site


Site

PayerExpress

Payment Only allows Billers to offer an online payment option without providing filescontaining billing details

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Payment Only – Site for Donations

User Login to PayerExpress PayerExpress Access

Payer logs into Biller branded PayerExpress

Payer is able to make any payment amount, add free form

text descriptions and select payment descriptions from a drop

down menu

PayerExpress

Many features for Non-Invoice Payments

Common look and feel

Enroll or single payment

Remember Me feature

Includes payment history

Can save a payment account

Can be used with an IVR

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Payment Only – Site for Donations


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P.S. – these are NOT Bitcoins!

Disclaimer

This presentation was prepared for general information purposes only and is not intended as legal, tax or accounting advice or as a recommendation to engage in any specific transaction, including with respect to any securities of PNC, and does not purport to be comprehensive. Under no circumstances should any information contained in this presentation be used or considered as an offer or commitment, or a solicitation of an offer or commitment, to participate in any particular transaction or strategy.

Any reliance upon the presentation is solely and exclusively at your own risk. Please consult your own counsel, accountant or other professional advisor regarding your specific situation. Any opinions expressed in this presentation are subject to change without notice.

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Documents

Living in Real Time …Moving Payments On -Line · Trends in noncash payments 2000–15, by number 1. Checks continue their ... 2016 Eighth Annual Billing Household Survey ... FAST!