Service To Cash Essential Banking V4

SAP Service to Cash for Banking

IBU Banking Solution Management
January 2012

SAP Service-to-Cash

Drivers Solution Value

References Demo Summary

2

SAP Service-to-Cash



3

Drivers Solution Value References Demo Summary

The Economical World is Under Pressure

HYPER COMPETITION
CHANGING BUSINESS MODELS
Drivers • Prices and margins are under
• Product to Services shift
pressure
Under Pressure • Multi-sided business
• Powerful „new“ market players
relationships
Customer Centric • Increasing customer demands
• Multi Convergence
Impacts • Immense Cost Pressure

Banking Scenarios

INCREASED BUSINESS COMPLEXITY
Companies need to
• Companies need to leave their home turf dramatically transform
• Highly dynamic markets drive a constant need for their business to survive
change and thrive
• Shorter innovation cycles and time-to-market

© 2011 SAP AG. All rights reserved. 4


Customer Centric: Retail Banking

Drivers
• Financial crisis Retain customers
Under Pressure Customers: More
• Regulatory pressures (i.e. with a la carte
Customer Centric
Product – based offers Demand
Basel III, Dodd Frank) pricing
Impacts
Banking Scenarios • Economies of Scale of Fight Competition
Competition: larger bank with faster Time to
Global Market
• Market consolidation

Technology:
More measuring • Mobile payments Handle large
points, More • Increased flexibility volumes of Data
events

Leading to Services-based offers
Relationship (Tier, Service Level, Profitability based) Pricing
Consolidated Charging and Billing
New forms of Payments
On Device Charging
Convenience, flexibility, loyalty


Evolution of SAP for Banking
As the Leader in Business Transformation

Integrated Enterprise Applications
Flexible E2E
Decoupled Processes
Integrated Banking Solutions
Banking
Cross-Industry Applications
Solutions

Real Time
Computing Client Server
Web-enabled
Enterprise SOA

Technology Platform & Architecture

~ 1980 ~ 1990 ~ 2000 Today



Hyperconnectivity: Impacts

•Time to Market
Drivers New Services:
Under Pressure Relationship- •Flexibility

Customer Centric
based pricing
•B2C & B2B
Impacts

Banking Scenarios

Massive
Volume of •Scalability
Real-Time •Performance
Transactions

Rapid
Recombination •Settlement
of Value •Commissioning
Chains



Business Model Innovation : Banking Scenarios
Industry Examples Value

Banking Smart fee structures which limit • Avoid “statement shock” → happy
Drivers general direct debit overdraft charges customers
Under Pressure Relationship Charge based on customer value, • Improved profitability, fee income
Customer Centric Pricing profitability and service level • Increased Customer Satisfaction

Impacts Consolidated One „source of truth‟ for customer • Improved Customer Satisfaction, loyalty
Fees / Billing in online banking and • Reduced revenue leakage
Banking Scenarios consolidated bank statements
Factoring Working capital financing, • Immediate Cash flow
Collection service, receivables • Reduced operations cost
management • Improve Sales volume
On Device Smart phones, Tablets, online • On Device Monetization & High Availability
Charging payments •Multi-Vendor Services
High Volume Credit card issuing to customers • High Volume processing
Credit Card for easy accessible funds • Complex partner settlement
unsecured loans
Credit Bureau / Helping creditors to determine the • Additional service offerings
Agencies credit-worthiness of a particular • Improved rating capabilities
applicant for credit.
Capital Markets Desire to automate fee • Brokers live on the margin &
/ Exchanges processing, remove current profitability between fees for costs
manual processes, move to and fees for revenues
more daily processing

SAP Service-to-Cash



9

S2C - Integration to the Banking Solution Portfolio

Customer & Employee Channels

Voice IVR E-mail Fax Mobile Bank Channels Mobile

Customer Relationship Management Enterprise Business
Marketing Sales Service Support

Customer Information Management General Ledger

Products and Transactional Banking
Master Contracts – Product Bundling Cost Management

Deposits Loans Leasing
Human Resources
Service to Cash Collaterals Syndications

Analytical Banking Procurement
Financial Performance
Bank Analyzer Price Optimization
Management
Corporate Services
Information Discovery & Delivery Enterprise Information Management

SAP Business Process Platform
User Interface/ Business Process
SOA Management Connectivity & Integration
Shared Utilities Management


Service to Cash
End-to-End Solutions & Applications
Relationship Pricing Consolidated Customer Billing
Business Intelligence
Customer
Billing & Revenue & & Partner
Fee
Payment Expense Relationshi
Payments Calculatio
Statement Manageme p
n Engine
s nt Manageme
nt
Accounts Payable / GL

SAP SAP Customer &
SAP
SAP Payment Convergent
Customer Partner Business
Convergent Intelligence
Engine Financials Relationship
Charging Invoicing Management Management

 Real-Time & Batch  High Volume  Account  Financial  KPI Analysis
Transaction Billing Detail Receivable Customer &  SLA Tracking
Processing  Configurable  Payment Posting Partner Care  Dashboards
 Flexible fee pricing Statements  Dispute Mgmt  Web Channel
capabilities  Multiple Input  Credit Mgmt
 Embedded Streams  Electronic Bill
Settlement Presentment and
Calculation Payment


SAP Convergent Charging Solution
Innovative Technology: Decision Trees

Old: Code-Driven New: Business
Configuration

SAP Convergent Charging Solution
Automated Management of Revenues & Costs


Service to Cash - Relationship Pricing


Fee Billing & Revenue & Customer &
Calculation Payment Expense Partner
Engine Statements Mgmt Relationship
Mgmt

“We can create combined statements, but we can‟t Examples of fee-types supported by SAP:
combine our fee calculations for relationship
pricing…”  One-time or event driven fees:
• Configurable flat fee
 Many banks have acquired systems that can • Fee can be waived per account
create a combined statement, but these systems  Periodic – e.g. flat monthly recurring charges:
only aggregate the fees calculated by legacy • Configurable recurring charges
applications • Charged at service activation date (not prorated)
 Relationship pricing models are very hard to  Fee per transaction / usage fees:
create and control using spreadsheets • Deposit fee - flat fee
• Transaction fee - volume/amount * price + percent
 Manual fee calculations have poor process % (service fee) of computed price
controls resulting in very high error rates • Wire fees – threshold tiered pricing


Service to Cash
Scenario 1: Relationship Pricing
What is Convergent Charging when we talk about Fees
and Relationship Pricing?
 Relationship pricing involves looking at the customer from the
perspective of a bundle of products and services
 Typically, each product and service has its own fee structure and
pricing logic (also referred to in Banking as “counters” or
“calculations”)
 Convergent Charging “converges” or settles multiple, complex
fee structures for multiple products and services and prepares the
fees to be submitted to the accounting sub-ledger.

Example of transaction convergence affecting fees:
 Scenario 1 - Number/value of credit card transactions determines
checking fee
 5 transactions or $1000 = fee reduced to $5
 10 transactions or $4000 = fee waived
 Scenario 2 - Enable loyalty program tracking
 Use debit/credit card 10 times and receive 1000 rewards
point (points assigned instead of fees)
 Reward program assigns small share of revenue to Airline
Partner (partner settlement)


Service to Cash
Scenario 2: Consolidated Customer Billing

“Our customers want a single monthly
statement but we can‟t pull the data
together…”
 Some banks are satisfied with their fee
calculators, but don‟t have a system that
can create a combined statement.
 Combined statements are often manually
generated using spreadsheets and data
marts. Manual statements have poor
process controls resulting in very high error
rates.
 If a customer makes a single payment for a
manual statement, the bank will have
difficulty allocating and reconciling the
payment.


Service to Cash
Scenario 3: High Volume Credit Card processing

“We need a to be accommodate flexible
pricing for our trade finance and invoice
factoring business…”
 Issuing Credit Cards is an important source
of income for the card issuing bank and the
most common form of unsecured loans
 As an example an online Credit Card
purchase cycle. Usually there are five
parties involved: the consumer, the
merchant, a clearinghouse, the merchant
bank, and the consumer‟s card issuing
bank which could be the same as the
merchant bank


Scenario 4: SAP OnDevice Charging:
Moving Rating Engine & Business Logic onto Smart Cards

Pricing offer is created Rating Engine + business logic: The business logic on the device
on a centralized system. containing personalized version of calculates price to pay - in offline or
the offer loaded onto user’s device. online mode.

SAP ODC Server Smart Mobile
Wallet /
Embeddable
Personalizing
Offer
NFC Service
offers

Intelligent
Business Logic + Charging for
= User’s Account Data
data / content /
+ Transactions
Apps / Ad
venue
Set of & Control
subscription
parameters Convenience /
= Real-time cost
Embeddable Mgmt / Anti Bill
Subscription Shock / Security /
Merchant
Strength: Discounts
Smart loyalty / SVA – Personalized offers
for online & offline services

Service to Cash
Scenario 4: Benefits of OnDevice Charging
Business logic stored on the device
On-Device Monetization can be executed in both online and
OFFLINE modes

No single point of failure / Scalable -
High Availability central platform does NOT need to be
highly resilient – LOW TCO

Promotions, discounts etc. from
Multi-Merchant Services
multiple merchants on the SAME
device – allows for special value prop
to bank’s merchant customers

Enable PERSONALIZED service
Customer Centricity offers and charging models, REAL-
TIME access to balances & counters

Consumer Data Privacy SENSITIVE consumer data remains
on the device. Tight Security
& Security management PREVENTS corruption
© 2011 SAP AG. All rights reserved. Confidential 19

Scenario 5a: Factoring - Ecosystem

Seller (Bank‟s Customer and non- Debtor (account debtor, or
Customers) customer of the seller)
2

1 Charge a percentage and a Debtor is notified
discount
sells one or more of its
invoices (the receivables) 4
at a discount to the third 3
party
Factor (Bank)

Collection


Service to Cash
Scenario 5a: Invoice Factoring

 It is a financial transaction whereby a business sells its Accounts Receivable
(AR, i.e. invoices) to a third party (factor) at a discount
 Factor provides financing to the seller of the AR, often 70-85% of the
purchase price of the accounts (net of the factor's discount fee (commission)
and other charges etc.)

Advantages:
 Fast and Safe increase of working capital
 Improves cash flow without hassle of Commercial Loans
 Offer better payment terms to customers
 In addition, S2C allows Factors to create automated combined statements
improving process controls and reducing error rates


Scenario 5b: Reverse Factoring - Confirming

Send Invoices
1

Ordering Party (Bank’s
Customer and non-Customers
Supplier
5

2 Withdraw amount from their Publish Invoices and credit
bank account on invoice due quotation for payment in
Upon agreement, supplier's date
invoices are transferred to advance 4
the bank
3

Factor (Bank)

SAP Service Accept credit quotation and
to Cash receive payment in advance

Customer


Scenario 5b: Confirming - Definition

Confirming (Reverse Factoring)
 Complete payment services managed by Bank (Factor) instead of customer
 Factor deducts commission/fee for advance from payment
 Customer (Ordering party) starts the process – usually a large company – choosing
invoices that should be paid in advance
 Supplier verifies need for immediate payment of invoices
 Fairly collaborative process between the ordering party, the supplier and the bank (factor)

 Advantages:
 Possibility of receiving advances on collections
 Simplified Payment processing
 Improved Payment terms and cash flow
 Immediate financing supplier‟s receivables


Scenario 5: Factoring & Confirming – Opportunity

Current challenges Market drivers Opportunity

 Simple and integrated  The factor provides immediate working  Real time quotation
architecture to launch capital to the supplier and supports capabilities
Factoring LOB better payment terms, immediate cash
flow and reliable business transactions  Full auditable revenue
 No real-time quotation stream of each single
capabilities  The factor provides a durable business transaction (accounts
relations and credibility as everyone receivable and
 Need for full auditable benefits (ordering party and supplier)
accounts payable)
revenue stream of each
single transaction  The factor consolidates processes for
(accounts receivable and the ordering party and presents besides
accounts payable) a single point of contact added security
and convenience for its banking clients


Service to Cash
Scenario 6: Credit Bureau Charging

Charge fees
Commercial Customer Retail Customer

Customer Credit Profile

SAP Convergent
Credit Bureau Charging
Prospects

Customer Credit Profile Customer Credit Profile
Charge fees

Banking & Insurance
SME/Microfinance (automobile collision and comprehensive
insurance, life insurance, loan insurance and
Enterprises accident and disability insurance.)


Scenario 6: Credit Bureau Segment – Opportunity

Market drivers
Consolidation, recombination, increased
competition, adjusted business models

Opportunity
 New value-added-services such as risk-based
scoring, address verification, alerts…
 Requirement for a flexible relationship pricing engine
 Process fee / pricing calculation in real time and
batch
 Real time quotation capabilities
 Rapid fee structure changes, quicker time to market
for new products
 Scalability to handle large volumes of records per
second

Scenario 7:
Sub-Segments in Capital Markets and Fee Flow

Buy-side Firms Charge fees
Mutual Funds, Hedge Commercial Firms.
Funds, Insurance Companies, etc.

Buy through
Buy through
Sell-side Brokers
Prime brokers, Inter-dealer
brokers, Banks, Futures Commission
Merchants, etc.
SAP
Convergent
Charging Trade through Clear & settle through
Prospects Charge
fees SAP
Convergent
Clearing Houses Charging
Exchanges Clearing houses, Settlement Customers
Systems, Custodial Services (CSD)


Scenario 7 : Capital Market – Opportunity

Current Challenges Market Drivers Opportunity
 Existing systems are  Potential customers and  Brokers live on the margin
typically homegrown technology providers agree that & profitability between fees
systems fee management is a pain point for costs and fees for
revenues
 Requirement to manage  Discounting & bundling to retain
 Opportunity to innovate by
fee structure complexity favored customers
proposing that total cost of
 Possible move to using fee trade becomes a factor in
 Desire to automate fee
processing, desire to pricing as a strategic part of choosing a venue for a
remove current manual business model innovation trade (making it visible in
processes, move to less (e.g., Exchanges charging for the front-office)
month-end bandwidth instead of just per
processing, more daily trade)
processing


Service to Cash
Scenario 8: Business Intelligence & Reporting

Fee Billing & Revenue & Customer &
Payments Calculation Payment Expense Partner
Engine Statements Management Relationship
Management


Service-to-Cash Analytics Dashboard

“Our customers want to be able to analyze their
monthly account activities and fees to better
understand their expenses.”
 Now banks can offer easy to use reporting
tools to their commercial and retail customers
instead of basic data downloads.
 Customer data analysis needs to be intuitive
and easy to use, and should be available in
real time or near-real time.
 S2C offers integrated Business Intelligence


SAP Service-to-Cash



30


Service-To-Cash : Value Proposal

Value

Flexibility Business Flexibility
Price, package, Bundle, promote your services and share revenue with partners
Deployment while maximizing profitability and reducing Time-to-Market

Low TCO

Unified View Deployment Flexibility
Set of componentized software which can interoperate amongst themselves and
with legacy and third party systems

Low TCO
Market-leading high performance on cost effective hardware and dramatically
reduced OPEX

Enhancing Customer Experience
Unified view of customer‟s services, subscriptions, balances and usages


Service-to-Cash - Value Proposition
Clients Client Satisfaction
Clients Demands
New Innovative Services
Relationship Based Pricing
On-Demand Price Quotes
Real-Time Analytics & Reports
Consolidated Statements

Client Transactions

Bank/Broker Business Intelligence

Demands Bankers/Brokers
Client Satisfaction Customer & Profitability
& Retention Fee Billing & Revenue &
Partner
Automated Straight-Through Calculation Payment Expense
Relationship
Processing Engine Statements Management
Management
Audit-ability, Accuracy
& Transparency
Platform Consolidation

Financial Services
Partners

Value Chain Demands
Real-Time Revenue Management &Sharing
Flexible SLAs
Real-Time Analytics & Reports Partner Loyalty

SAP Service-to-Cash



33


Service-To-Cash : References

References

High Tech
Transportation

Postal &
Logistics

Telecom

Media

Financial
Services

Other



Q2 2011
LATAM
S2C in Financial Industry : Banco Popular C2C

Customer Business Issues solved
References • Need for a solution to support the roll out (full
automation) of a new line of business called
Banco Popular “Factoring” – a customers accounts payable
operations
LCH.Clearnet
Banco Popular Dominicano
Groupama BPD is the largest private bank in Why SAP Service to Cash - Benefits
the Dominican Republic, with a • Allows BPD to act as the customer‟s payment agent
significant market share of 23% in in front of suppliers and contractors, providing them
terms of total assets at end 2010. with an effective and low-cost way to make their
payments. Suppliers will additionally be able to
BPD is the main subsidiary of manage invoices that are covered by the customer‟s
Grupo Popular, S.A. (GPSA), a payment orders at any BPD branch.
holding company for mostly • Ability of C2C / S2C to support the complete
financial subsidiaries in the business process.
Dominican
Republic, Panama, and the U.S. • Capacity to handle supplier real time quotation and
with consolidated assets of more credit generation, invoicing and account receivable
than USD5.9bn at end 2010. and payable

Solution
• Full Service-to-Cash Platform (SAP Service-to-
Finance Cash)



Q4 2007
EMEA
S2C in Financial Industry : LCH.Clearnet CC (HD)

Customer Business Issues solved
• Looking for a group-wide safe, effective and reliable
References fee billing system;
• Flexibility to accommodate current and foreseeable
Banco Popular future fee structures, markets and Trade Sources;

LCH.Clearnet LCH.Clearnet is the leading • Effective reporting to both internal users and external
independent clearing house Clearing Members;
Groupama group, serving major international • Provision of daily billing data to Clearing Members to
exchanges and platforms, as well enhance their reconciliation processes and
as a range of OTC markets. It allocation of costs to their own customers;
clears a broad range of asset
classes including: • Reduce operating and development costs
securities, exchange traded
derivatives, commodities, energy, fr Why SAP Service to Cash - Benefits
eight, interest rate swaps, credit
default swaps and euro and sterling • Flexibility for new product introduction
denominated bonds and repos;
• Add new members easily and automatically
and works closely with market
produce detailed monthly invoices
participants and exchanges to
identify and develop clearing • Handle millions of transactions per day with
services for new asset classes. robustness, reliability and low TCO

Solution
• SAP Convergent Charging (Highdeal Charging &
Billing Platform)
Finance



08 2011
EMEA
S2C in Financial Industry : Groupama CC (HD)

References Customer Business Issues solved
• Replaced in-house commissioning system
Banco Popular • Manage targets, calculate payouts
LCH.Clearnet Established over 100 years ago • Allow for short-term commission plan changes
in the French farming
• Management of life & annuity products
Groupama community, Groupama is now a
major European insurance and • Lifecycles of commissions as client accounts vary
banking group with over 39,000 over time and as agents trade contracts
employees worldwide, serving
over 16 million customers in 14
countries. Why SAP Service-to-Cash Benefits
Groupama generates revenues • Ability to handle core commission modeling and
of €17.6 billion, has assets payout calculations
under management of €88 • Providing functionalities to ensure full traceability
billion and profits of €398 of all transactions and management of historical
million*. The group reinvests its contexts
profits into the business for the
ultimate benefit of its members
and customers

Solution
• SAP Convergent Charging (Highdeal Charging &
Billing Platform)
Finance


SAP Service-to-Cash



38


Service-to-Cash Demo

Demo
Convergent Charging Demo #1
Demo
Testimonial

Accounts Receivable

Pricing, Invoicing & Revenue & Customer &
Rating, Payment Expense Partner
Charging Statements Management Financial
Care

Accounts Payable
SAP Convergent SAP Convergent
SAP Customer Financials Management
Charging Invoicing
 Pricing & Charging  Convergent  Revenue Management  Financial Customer Care
Model Design Invoicing  Credit Management  Collections Management
 Pricing Simulation  Online Bill Presentment  Dispute Management
 Converged
Prepaid, Postpaid
& Hybrid Charging



Service-to-Cash Demo

Demo
Convergent Charging Demo #2
Demo
Testimonial

Accounts Receivable

Care

Accounts Payable
Charging Invoicing
 Pricing & Charging  Convergent  Revenue Management  Financial Customer Care
Model Design Invoicing  Credit Management  Collections Management
 Pricing Simulation  Online Bill Presentment  Dispute Management
 Converged
Prepaid, Postpaid
& Hybrid Charging



Service-to-Cash Testimonial

Demo

Demo
Testimonial

“SAP Convergent Charging gives us
the freedom to react quickly to market
demands and be very creative with
our price plans and bundles.
“We can adjust our price plans in real-
time without disrupting service.
Giving us a real advantage in keeping
ahead of market demands.”
Akan Ismaili
CEO of IPKO


SAP Service-to-Cash



43


From Products to Services Everywhere

Summary

Business Trends
Service based Industries
Service based Industries
Service-To-Cash New
New
Telecommunication
Telecommunication
Value Pricing
Pricing
Models
Models Media
Media
References
High Tech
High Tech
Manage
Manage Transport & Logistic
Transport & Logistic
Uncertainty
Uncertainty Postal
Postal
Finance
Finance
Changing
Changing Massive
Massive
Value Chains
Value Chains Volumes
Volumes And… elsewhere!!
And… elsewhere!!



The Service-to-Cash Platform

Summary
Financial
Deliver Price & Bill & Collect &
Offer Order Customer Analytics
Business Trends Service Charge Settle Pay
Care

Service-To-Cash

Value SAP Service-to-Cash

References

Accounts Receivable

Care

Accounts Payable
Charging Invoicing



Service-to-Cash : Value Proposal

Summary
Business Flexibility
Business Trends
Price, package, promote your services and share revenue with partners
while maximizing profitability and reducing Time-to-Market
Service-To-Cash

Value

References Deployment Flexibility
Set of componentized software which can interoperate amongst themselves
and with legacy and third party systems

Low TCO
Market-leading high performance on cost effective hardware and
dramatically reduced OPEX

Enhancing Customer Experience
Unified view of customer‟s services, subscriptions, balances and usages



Service-to-Cash : 300+ References Worldwide

Summary

Business Trends

Service-To-Cash

Value

References


Appendix


SAP On-Device Charging Overview &
SAP CC relationships

 The On-Device Charging solution takes our SAP Convergent Charging solution and
produces a "light" version running on secure elements such as smart cards, SIM
cards, ...”

 This can then be embedded into end devices such as mobile (NFC) phones, multi-
services cards, EMV cards, smart meter, on-board-units in vehicles, set-top-boxes, M2M
devices, tablets, smart phone ..., thus allowing billions of devices to perform
pricing, rating, charging, balance-management, business logics and loyalty functions
locally, in an off-line mode (but also in an online mode or both).

 The SAP On-Device Charging is completely based on SAP Convergent Charging data
model. Thanks to a patented compiler, ODC will be able to transform and adapt the
business logics defined and stored in SAP CC by the service providers, for generating on
the fly the related program running on the secure element.

 SAP ODC supports the SAP CC main features :
 Rate/charge any kind of service,
 Implement some flexible business logics,
 Cascade and compose price plans for multi-partners business models


B2B2C Banking use cases
ODC – Virtual Wallet vs. Private Payment vehicle

 In addition to existing offline payment means, such as Credit (Smart) Cards more and more
banks provide some prepaid card based on wallet and eMoney. A wallet can be viewed as a
balance which is debited at purchase time

 ODC could be used to control the usage of such virtual wallets and banks could propose
virtual wallets services to companies / institutional org / third party:
Example 1: A virtual wallet could be offered by the bank to local / federal
government to aid in controlling the usage of funds i.e. social benefits according to
specified rules. ODC can implement those rules to authorize or reject the usage of
funds belonging to the related „social wallet„.
Example 2: A virtual wallet infrastruture offered by the bank could also improve third
party services i.e. payment devices related to healthcare
benefits, city/citizen, companies, student, transportation card, military etc.


Smart Mobile Wallet: General architecture overview

Mobiliser Platform
NFC Handset
Wallet Content Mgt
Mobiliser Smartphone Wallet Server

OTA Interface
Proxy
Wireless

OTA

Security
Debit Banking Loyalty Integration Services
Pay Bill Retail Network
Transfer

ODC Server
ODC
Application Processing Env SmartTrust TSM
Enabler
Rich OS

SWP Drivers & Stacks
SIM NFC Sec El TSM hub
SmartTrust Delivery Platform
Sec-Elt 2
Sec-Elt 1 Global Platform Card
ODC Cards (SVA Management System
+ BizLogic
Cards
(loyalty, paymen
t, …) Offers

Service Providers
NFC Controller
Payment Payment Merchant Loyalty
SP Systems
Network
Contactless POS Coupons Banks &
NFC Tag Payment Terminal Aggregator Financial


Smart Mobile Wallet Proposal

Build a SAP-Sybase end-to-end “Mobiliser Smart Mobile Wallet” platform allowing user
to deploy online services but also NFC services with the following characteristics:
• end-to-end common services (remote and proximity):
mBanking, mPayment, mRemittance, loyalty, couponing, vouchers
• Complements existing Sybase Mobiliser front & backend.
• Integrated ODC for smart SVA, loyalty with real-time management/redemption, offer
personalization, offline charging
• Includes Mastercard Paypass NFC payment service developed by G&D.
• Interfaces with G&D SIM/OTA solutions (SmartTrust NFC Enabler, SE, TSM hubs)
• Open to support external cards from other service providers (transportation, etc.)
• Ability to host future SAP mobile business applications requiring a Secure Element.


Mobile Payment tools overview

Payment performed with a mobile device which can be charged on:
 Banking card/account
 Carrier bill
 Electronic wallet

Three categories for mobile payments:
 Remote payment
 Proximity payment – connection with a merchant payment terminal / POS –
 Mobile to mobile money transfers

Several technologies can be used by mobile payments according to usage
 Communication: SMS, USSD, Vocal server, mobile internet, NSDT, NFC, Bluetooth, QR-code
 Security: Secure Element, Cryptographic server, Trusted Execution Environment

Characteristics of mobile payments
 Online/Offline payment: requires an OTA connection at payment time
 Synchronous/Asynchronous payment: the account transfer is done later


© 2011 SAP AG. All rights reserved.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP
BusinessObjects Explorer, StreamWork, and other SAP products and
services mentioned herein as well as their respective logos are trademarks
or registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal
Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business
Objects products and services mentioned herein as well as their respective
logos are trademarks or registered trademarks of Business Objects
Software Ltd. Business Objects is an SAP company.
Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and
other Sybase products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of Sybase, Inc.
Sybase is an SAP company.

All other product and service names mentioned are the trademarks of
their respective companies. Data contained in this document serves
informational purposes only. National product specifications may vary.
These materials are subject to change without notice. These materials
are provided by SAP AG and its affiliated companies (“SAP Group”)
for informational purposes only, without representation or warranty of
any kind, and SAP Group shall not be liable for errors or omissions with
respect to the materials. The only warranties for SAP Group products and
services are those that are set forth in the express warranty statements
accompanying such products and services, if any. Nothing herein should be
construed as constituting an additional warranty.

54

Service To Cash Essential Banking V4

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