Is your organization ready to execute on new thinking in payments? Does your infrastructure accelerate time-to-market for new services? The boom in smart phone sales and mobile usage is changing the way consumers pay for products and gain access to new banking services. Perficient will help you navigate these paradigm shifts and address the technologies reshaping the payments ecosystem that will drive your digital strategies. You'll learn about: A holistic view of the payments value chain - banking and retail A technical review of evolving payment architectures How you can provide innovative service utilities for greater consumer adoption Framework enablers to support rapidly growing transaction volumes Adapting your existing payment models to support the omni-channel experience

1. Cashing in on Mobile Payments with a
Winning Strategy
June 25, 2013

2. Perficient Profile
A national management and technology
consulting firm, with expert teams focused
on helping our clients implement business-
driven financial services solutions.
Fast Facts:
• Founded 1997
• $380 MM+ in annualized revenues
• 24 locations in North America
• Offshore in Europe, China and India
• 2000+ employees
• 85% of revenue from recurring clients
• Served 450+ clients in past 12 months

3. Financial Services Offerings
Practice Snapshot
 Practice Leadership with over 20+
years of financial services
experience
 Expertise delivering solutions across
multiple platforms
 Serving 19 of the top 50 U.S. Retail
Banks (4 of the top 5)
 Serving 5 top Card and Prepaid
companies
 Industry thought leaders and
speakers
 Formal methodology & tool set to
ensure success
Strategies and
Differentiators
 Cross-functional business process
experience
 Enterprise architecture expertise
 Deep Payments & Integration
experience
 Understand the balance between
business and IT
 In-house Experience Design team
(Perficient XD)
200+
clients

4. About the Speaker
Jeff Fisher, Director, Operations & Client
Advisory Services
Jeff Fisher has more than 20 years of experience in
financial services leading strategy, development, design
and implementation of enterprise initiatives. He has
provided IT leadership over enterprise systems and
processes at companies like Capital One, Federal
Reserve and Visa. His areas of focus include payments,
business process management, infrastructure services,
regulatory compliance, risk management, and
performance management.

5. Perspectives on the
Payments Ecosystem
3

6. Players in the Payments Ecosystem
Financial
Institutions
Retail &
Merchant Services
Card Companies
& Networks
Consumer
Should all banks make the shift
to mobile? Is mobile enough
for banks to differentiate and
be competitive?
Will rewards-based card offerings
and ever increasing merchant
processing costs change the
current payments paradigm?
Will emerging product
innovations from
intermediaries and new
merchant paradigms
impact industry
dominance?

7. The Consumer Perspective
Mobile technology has altered the way consumers behave and how organizations
adapt their business models.
• Emerging Payment Intermediaries have capital to
be innovative with no regulatory oversight
• P2P payments are riding the Credit and Debit rails
• Banks continue to be the “non-exciting”
intermediaries to transfer funds – interbank/intra-
bank transfers
• New digital currencies are emerging – intervention
by government not yet known
Folding Consumer Payments Into
the Ecosystem
• Profitable market segments have not yet fully adopted
mobile
• Emerging Payment products are and need to be
innovative & compelling to consumers
• Consumers with smart phones using “showrooming”
• Security still very important; though consumers are
seeking value in retail side “rewards”
Behavioral Shifts in Consumer Demand
ISO
Messaging
“Card
Present”
Mobile
Wallet
Rewards
Closed
Loop
In-Store
Retailer’s Systems
eCommerce
Web
Services
Processor
Services
Card Cos
Networks
Payment
Intermediary
Services
Payment
Intermediary
ACH
Consumer’s Bank
Retailer’s Bank
CC Acct
Bk Acct
Payment
Intermediary’s Bank
CC Acct
Bk Acct
Bill Pay, P2PRetail, P2P
In-aisle “price
shopping”
GPS Driven
Couponing
Retail Website/
Portal
OnLine
Store
Money
Load
Mobile
CC Acct
Bk Acct
CC Gateway
Credit, Debit & ATM
Networks
Consumer

8. The Financial Services Perspective
• Costs for infrastructure and platform
development
• Data to be monetized from
transactions and online campaign
marketing tools
• Reap savings in costs and services
• P2P capabilities are top of mind
Plan to Move to Mobile
• Mobile not an additive service –
it’s a replacement
• User Experience must be
easy, and intuitive with mobile
utility
• Omni-channel challenge and
opportunity
Ensuring Adoption & Usage

9. The Retail Perspective
Proprietary NW
“Card
Present”
Mobile
Wallet
In-Store
Corp Retailers Systems
Processor Services
Card Cos
Networks
ACH
Processor
Retailer’s Bank
CC Acct
Sweep/Deposit
Acct
ACH Services
Mobile
App: In-
Aisle
Shopping
In-Aisle
Proprietary
Card System
Closed Loop
Processor
Acquirer
Platform
Coupon,
Inventory &
Checkout
“Card
Present”
Mobile
Wallet
In-Store
Terminal Batch
Admin/BO
Console
In-Store
Distributed System
Small Store
Card Data
in PCI
Compliant
DSS Zone
Large Retail Store
Retail Location
Retail Website/
Portal
Treasury Mgmt, Rewards,
Payment Intermediary, Etc.
Gateway
/ Switch
Services
CC Acct
Debit Acct, ACH
RDFI
Customer’s
Bank
OnLine
Store
Card Mgmt
Retail Website
OnLine
Store
Card Mgmt
FRB ACH
CC Gateway
Payment
Intermediary
Payment Intermediary’s Bank
CC Acct
Sweep/Deposit
Acct
Consumer
• Closed Loop Systems and pre-
paid branded card programs
emerging
• Credit card fees
(authorization, discount, charge
backs), PCI Compliance, and
other fees are too costly
• ACH being leveraged for pre-
paid card funding
Retail Side of Ecosystem is
Changing
Retailer Innovation Meets
Mobile
• Building consumer affinity
towards prepaid models
• Leading retailers turn
showrooming into innovation
opportunity
• Retail systems enhancements
include mobile rewards and
couponing capabilities

10. Who is
driving
mobile
payments
innovation?
Payments Ecosystem

11. Payments Ecosystem
The Consumer!

12. Validation of Consumer Adoption &
Movement Towards Mobile Payments
3

13. Consumer Access to Retail Services
“32% of smartphone users used
‘showrooming’ to make a purchase”
- Federal Reserve System
“U.S. Online Retail Sales to Rise
to $370B by 2017”
“Projected to be 1.8B social
networking users worldwide
in 2013”
“Tablet sales expected to
surpass portable PCs in
2013, total PCs by 2015”
“1B smartphones will be
shipped worldwide in 2013”

14. Consumer Access to Banking Services
24% to locate ATM
21% for mobile RDC
53% transferred money
27% for bill pay
87% to do a balance inquiry
“Mobile banking users
will exceed 1B in 2017”

15. Payment Volumes
“Gartner cuts NFC payments
forecast by 40%”
-TechCrunch
“US mobile wallet users
spent $500M in 2012”
- Berg Insight
“$3.8T in purchases on
General Purpose Cards”
- The Nilson Report
“Google to offer P2P
via Gmail”
“Mobile coupons trigger 51% of
consumers to shop in-store”
- RetailMeNot
“More than 770M GPS-
enabled smartphones”
- Business Insider

16. • 10% of transaction as
m-payments
• Loyalty program used
25% by 9M members
• $41M in payment volume
per day
• On target to process $15B
in 2013
• $20B in mobile commerce
in 2013
• 10% of payments volume
from mobile in 2012
Nonbank Challengers

17. Nonbank Challengers
575,000,000
Store Accounts
?

18. Helping Move the Dial
More than 300+ Vendors
Guide of 350+ Vendors
175,000,000 Search Results

19. The Bottom Line
• Adoption of mobile will yield rich
consumer “data” for the payments
ecosystem to leverage
• Account aggregation and payment
initiation for financial services clients –
regardless of location
• Omni-channel customer experience in
stores – retailers can steer purchasing
• Ability to build brand affinity – target
marketing with mobile will be rich
• Convenience factor for the consumer –
statistics validate growth trends in mobile
to derive revenue for all parties
Value Propositions for Mobile Payments

20. How to Elevate Your
Success with Payments
3

21. Financial Services
Mobile Payment Strategies
Green Dot’s prepaid cards are available to
consumers at more than 70,000 retail
locations nationwide and online.
Challenge
• Faced with significant growth &
deploying new mobile product s
Solution
• CIO Advisory services to optimize IT
Services and build a next generation
mobile infrastructure
Business Value
• Increased agility to respond to rapid
changes in the industry and scale for
future growth
• User Experience + Empowering the
Customer = Mobile Payments Success
• Data-savvy Players: Customer Analytics =
Game-changer for Banks in Payments
Ecosystem
• Mobile infrastructure platform and strategic
partnerships ensure Mobile Payments
readiness
+

22. Financial Services
• Streamline transaction
processing - Mobile apps that
extend couponing with
relevant offers (less is more)
• Monetize data for smarter
banking – Fine-tune advertising
and promotions to consumers
• “Under-banked” today will be
“banked” tomorrow - Identify
new payment products to
better serve this segment
Top of Mind for Consumers¹:
• Improve Internet and Mobile
Services
• Change Fee Structures
1 Ernst & Young Global Consumer Banking Survey 2012

23. Commercial Payments
Enabling Strategies for Wholesale
Payments
• Full array of B2B services - Portals with
role-based access control
• Provide a corporate admin capability to
manage permissions, payment release
workflow, and reporting
• Adopt a “payments hub” architecture
that interfaces with ACH, Wires, and
Securities services
• Leverage a predictive analytics fraud
model for ACH and wire services
• Secure environment with seamless and
cost effective back-office integration
“Provide a mechanism that
offers corporate customers
least cost alternative payment
methods to use.”

24. Retail & Merchant Services
• Leverage technical partners for “virtual”
POS terminal applications
• Support all payment types to include
split-tenders
• Partner to monetize transaction data
• Reduce merchant obstacles & promote
digital adoption
• Provide guidance on EMV standards
and qualify transaction attributes well in
advance
• Preclude unnecessary PCI fees
assessed on merchants
Merchant Enablement Strategies
Emerging mobile commerce and payments
innovator serving the U.S. Retail industry.
Challenge
• Differentiate their mobile payments
product and attract new merchant
members to drive consumer adoption
Solution
• Delivered UX design for a mobile
wallet application on the iOS platform
supporting all payment types.
Business Value
• Decreased time to market for their
pilot mobile wallet

25. Card Companies & Networks
What’s Important to Them
• Promoting brand recognition
• Highly competitive environment to
grow volume in US market
• Continue to expand into
underdeveloped markets
• Card company infrastructure and
networks require maintenance
along with enhancements – all at a
cost
• Reduce fraudulent transactions
• Expand “platform as a service”
offerings beyond portal-based prepaid
platforms – make them competitive
• Evaluate alternative message streams
containing PAN data originating at
POS to reduce downstream PCI costs,
impacts and fraud
• Promote service offerings to help
banks monetize data
• Promote mobile adoption to all
demographic segments
Enabling Ecosystem Strategies

26. Questions?

27. Other Resources
Session Moderator
Follow
On Twitter
@Perficient_FS
Come Visit
Us at Booth
#532

28. Thank you for your time
and attention today.
Please visit us at Perficient.com