hp future proofing cards and payments
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1 © Copyright 2012 Hewlett-Packard ©2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice ©2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice
Dee McGrath
Vice President, Financial Services
FUTURE PROOFING CARDS AND
PAYMENTS
2 © Copyright 2012 Hewlett-Packard
HP is the world’s largest provider of information technology infrastructure, software, services, and solutions to
individuals and organizations of all sizes.
3 © Copyright 2012 Hewlett-Packard
4 © Copyright 2012 Hewlett-Packard
Bartering
Shells and
Beads
Coins
Paper Money
Checks / Bank Drafts
General Purpose
Charge Cards
600 BC 600 AD 1700
e-purse Gift Cards
Debit Card
s
Virtual Payments
M-commerce
M-Coupons M-Banking
Mobile Wallets
M-POS
NFC
QR Codes
Social Media
Virtual Currency
Digital Wallets
P2P Remittance
Consumer Charge Card
1950 1990 2000 1980 1900
3-D Secure
Branded Contactless
Augmented Reality
Cloud Wallets
An increasing area of importance
Multi-bank Networks
1960
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HP solutions make life easer in ways you’ve probably never considered
HP supports more than 5.6 million desktops, 2+ million smart phones, and 15 million IP addresses
We perform 2.4 billion healthcare transactions annually
We detect and quarantine more than 3.1 million viruses annually
We manage more than 100 PB of online data in 60 countries
We process over 13.3 billion credit card transactions annually
13.3 billion credit card transactions
>100 PB online data in 60 countries
2.4 billion healthcare transactions
3.1 million viruses
detected
North America
Cards Accounts 12 million
Merchants 1.3 million
Transactions 3.7 billion
Latin America
Cards Accounts 8.6 million
Merchants 1.2 million
Transactions 4.5 billion
Asia Pacific
Cards Accounts 15.3million
Merchants 530,000
Transactions 2.5 billion
EMEA
Cards Accounts 32 million
Merchants 54,000
Transactions 2.6 billion
HP has become one of the world’s largest 3rd party card processors
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High cost to serve, legacy infrastructure & an inability to innovate
The things that were previously taken for granted are becoming less and less relevant
MARKET TRENDS
• Mobile internet: 10 billion+ units,
(10x the size of the desktop internet)
• Explosion in data stream subscriptions
(premium media, social media, location-aware services, VoIP… )
• 2014: 30 billion apps, $40 billion revenue
(downloads + value-added services + ads)
EXPECTATION Always-connected,
anytime, anywhere DESIRE Seamless experience
and continuous access,
across devices
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We are more connected than ever -
global online population is 1.9bn
Today we carry the internet in our pocket.
The web is social. 2012 is about
convergence & big data
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Convergence is happening
10 © Copyright 2012 Hewlett-Packard 10 HP Confidential
ATC
Mobile Payments HP IP – Mind Map
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Agile Card Framework - Modernization
In 2007 HP initiated a modernisation of its card assets. The use of a SOA solution breaks down product silos and creates discreet services that can be
repurposed and innovatively packaged
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Convergence is happening
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Innovation
New Product Development
Convergence of student ID card and debit card • Makes the financial provider relevant to their customer • Growth for a ‘mature’ product offering - cards
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Consumer sentiment
HP-RFi Australian Payments Research Ask the customer.....
75
80
85
90
95
100
105
110
115
120
125
Mar-2008
May-
2008
Jul-2
008
Sep-2
008
Nov-
2008
Jan-2
009
Mar-2009
May-
2009
Jul-2
009
Sep-2
009
Nov-
2009
Jan-2
010
Mar-2010
May-
2010
Jul-2
010
Sep-2
010
Nov-
2010
Jan-2
011
Mar-2011
May-
2011
Jul-2
011
Sep-2
011
Nov-
2011
Jan-2
012
Mar-2012
Westpac-Melbourne Institute Consumer Sentiment Index
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Then we investigated the current state:
87%
49% 47% 46% 46% 44%
34% 31%
7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Cash BPAY Credit card Scheme Debit
Card
EFTPOS card Direct debit Direct transfer Paypal Cheque
Which of the following payment methods do you use in a typical month? Please choose
all that apply.
18-24 25-34 35-44 45-54 55-64 65-80 Total
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What are you changing to?
48%
39%
30% 28%
24% 23%
21%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Scheme Debit
Card
Credit card BPAY Direct debit Direct transfer Paypal EFTPOS card
To what payment method did you move the spending for which you
previously used cash?
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What do you prefer?
37%
28%
23% 22%
20% 18%
20%
32%
21% 21%
17% 17% 19%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Buying over the
internet
Buying over the
phone
Shopping in a
department store
Paying by mail
order / post
Paying for petrol Shopping at a
supermarket
Paying for a meal
at pub, café or
restaurant
Assuming that you have all of the following payment options available to you, please
select the method you most prefer for each scenario.
Credit card Scheme debit card
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HP is a partner who recognises the changes occurring in the payments
world.
Seamless, secure, context-aware experiences for a connected world
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Str
ate
gic
Ele
ments
Funct
ional Com
ponents
Customer Experience
Extent to which a user can obtain and use the service to achieve their goals at the time it is needed.
Customer Experience
• Mobility (Mobile Payments and Applications)
• Communications (letters, statements, alerts)
• Portal / User Interface • Data Analytics • Reporting • Social Media
New products, features and capabilities designed to increase usage, enhance customer satisfaction or drive more fee or interest income.
Product extension to additional geographies or schemes.
Internal product improvements to provide easier and more efficient processing, improve operations, and reduce costs.
Product Innovation
Market Reach
Operational Enhancements
Product Innovation
• Prepaid Cards (including Multi-currency / Remittance and Gift Cards
• Loyalty & Rewards • Fraud • Secure Payment
Services • Tokenization • Application Processing • Authorization • Commercial Cards • Data Analytics
Market Reach
• JCB • CUP • Discover • PayPal • Closed Loop • Double Byte • Asian Regionalization
Operational Enhancements
• Exceptions Processing • Technical (SOA, ODS,
BI, Rules Engine, Workflow)
• Plastics Management • Application
Processing • Credit Risk
Management (e.g. Triad)
• Collections • General Ledger
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Innovation
New Product Development
Convergence of Accounts Payable with Stored Card • Changes the view of the value chain • Connects with customer feelings with immediacy • Innovative – a bank solving an accounts payable issue!
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