Presentation Title Goes Here - First Data...Consumers have a variety of mobile payment options that merchants need to consider supporting, based on their overall POS and payment strategy

Dom Morea

Copyright 2013 First Data Corporation. All Rights Reserved.

This document contains unpublished, confidential and proprietary information of First Data Corporation. You may not disclose, copy or use any part of these materials for any purpose without the express written consent of First Data Corporation. All trademarks, service marks and trade names used in this material are the property of their respective owners.

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Mobile Commerce Landscape

April 2013

FIRST DATA INSIGHTS

Copyright 2013 First Data Corporation

Universal Commerce

We’re Entering the Age of


The consumer is in control…

Personalized and value added services delivered anytime and anywhere!


Online

Social

NFC/ QR Codes

In-Store

ATM/Kiosks

Multi-channel buying is the new normal and consumers come to expect an integrated buying experience.


Re-Imagine Everything…


Four Points of Payment Innovation A new set of both established and niche innovators is seeking to transform the consumer shopping experience – and is wedging its way into the payments ecosystem through mobile and internet delivery channels

Consumer

Merchant

Access Point

Acquirer

Acquirer Processor

Network / Switch

Issuer Processor

Issuer

Integrated ConsumerX Mobile device transforms consumer shopping & buying experience

Transaction Services Layer Value-added services for merchants that ride alongside payments

Alternative Payments New brands looking to mitigate consumer payment frictions and/or earn disproportionate economics

Integrated Acquirers Access point and acquiring/ processing linked together under a simplified bundled pricing model


It’s all about enabling services that ENHANCE your customer experience


uCommerce for…

Retail Banks

Lenders

Credit Card

Issuers

Alternative FIs

Core Capabilities

• Select the right financial product

• Manage money

• Spending enablement

• Recognize me for being a valued customer

Unique Vertical Requirements

• Retail Banks: Balances, money in/out, transfer, bills, P2P, checks, rewards, wallet, ATM

• Lenders: Balances, bills, qualification, insurance

• Issuers: Balances, credit inquiry, rates/fees, bills, fee waiver, rewards

• Alternative: Balances, wallet, history, PFM, etc

Delivering Solutions to FIs that make it easy for their customers to select, manage, spend, and be recognized in key verticals

Universal Commerce Solutions for FIs


Unique Vertical Requirements

• Retail: pay at the counter or mobile POS

• QSR: pay inside, pay before you arrive via remote ordering, and drive thru

• Grocery: pay at checkout

• Restaurant: Pay at the counter, pay at the table, and curbside pickup

• Petro: pay inside, pay at the pump

Core Capabilities

• Pay via Accounts

• Earn & redeem loyalty

• Target & redeem offers

• eReceipts

• Data & Analytics

Delivering Solutions in key verticals that make it easy for your customers to PAY, EARN, REDEEM, and SAVE

Universal Commerce Solutions for Merchants

uCommerce for…

Retail QSRs

Grocery Petro

Restaurants


POS Redemption Technologies Payment Credentials Storage

Consumers have a variety of mobile payment options that merchants need to consider supporting, based on their overall POS and payment strategy

NFC, Barcode, Cloud or Something Else?

NFC Handsets & POS must

be NFC compliant

Mobile Wallets

Cloud Services Data security implications

QR/2D Barcode Data security implications

Transaction speed and reliability depends on network connection

Phone (SE) Requires a more

complex ecosystem

Handsets must have secure storage area


Universal Commerce – Key Ingredients

Enabling Infrastructure

Open, scalable and secure to create a timely, consistent experience a

Integrated Applications

Deliver a seamless experience across channels and functions

Actionable Intelligence

Valuable data to drive new levels of targeting, personalization, and measurement

Smart Devices

Connect consumers anywhere, anytime to

the things they need and want

Partner Ecosystem

Innovative collaboration to satisfy consumer

expectations

Five essential ingredients to deliver the personalized experience that consumers desire any time, any where


KEY

INTERSECTION

OF

MERCHANT

AND

CONSUMER X

MERCHANT

Next Gen Pos CONSUMER

Digital Wallet

Offers, Loyalty,

Value-added

Services Ucommerce

before,

during,

after the

transaction

Connect Seamless Checkout

Engage Recognize/Personalize

Strategic Focus on uCommerce/Mobile Services

Smart, advanced

acceptance devices

Apps to run

your business

eReceipts

Loyalty,

CRM, offers

Sell more $$$

Actionable

intelligence

Always get recognized

– max loyalty, save money and time

Earn, Gift, Share

Ubiquitous & Relevant:

sync’d with Local places I shop

Account Access: Instant, self-service

Ease & Convenience

eReceipts


Point of Service Consumer Services

uCommerce Product Framework Details… Merchants, FIs, ISVs, Developers, Third Parties

Transaction & Processing Services

Integration Services

Marketing Services Account Services

Inventory Services Financial Management Services

Fraud, Risk, Recovery Communication Services

Identity Services Billing Support Services

Data Services

Enabling Infrastructure: Security, Reliability, Scalability

Core Acquiring & Issuing Platforms: Acquiring, Switching, Routing, Authorization, Settlement, Issuing


• More effective customer targeting

• Clearer tracking and metrics for promotions

• Easier conversion of consumers from acquisition to loyalty channel

• Frictionless redemption process

• Better fraud and error controls

Big need for smarter promotions…

A key to unlocking the full potential of offers is in linking them to a payment card account


Arriving at uCommerce Solutions

Key Considerations:

• Accept mobile phone securely at point of service

• Retain existing customers to grow the business

• Acquire new customers to grow the business

• Evaluate how it’s going

• Build better connections with customers

Inputs:

• Innovation Lab

• Research-Marketplace Feedback

• Innovation Workshops with Clients

• Ignition Clients

• Channel Partner Feedback


Documents

Presentation Title Goes Here - First Data...Consumers have a variety of mobile payment options that merchants need to consider supporting, based on their overall POS and payment strategy