INNOVATION AT A GLANCE Wally Mlynarski Chief Product Officer
Product Innovation: Two Common Approaches Sustaining Innovation Problem is well understood Existing market Innovation improves performance, lowers cost and is incremental change Market is predictable Traditional business methods are sufficient Disruptive Innovation Problem is not well understood New market Innovation is dramatic and game changing Market is unpredictable Traditional business methods fail
Elavon s Investment ecommerce Integrated Payments Integrations International Footprint Omnicommerce Gateway Security
Payment Processing Elavon s Global Product Strategy Customer & Partner Engagement Integrated Payments Commerce Expansion Security Automated / Digital Boarding SDKs & Toolkits Commerce Platform / Gateway Advance Fraud Services Payment Types Customer Portal Cross Border (DCC/MCC/ORCA) Universal External Reporting & Analytics Specification & API Management Shop-in-a-Box Tokenization Encryption Authorization Knowledge Base / Merchant (CP & CNP) Self Help Customer Communications Certification Automation Financing Smart Terminals PCI Program, Compliance & Scope Minimizing Solutions Clearing & Settlement Partner Portal Developer Portal Loyalty & Gift Solutions Emerging Security Packages Reconciliation Engage Integrate Expand Secure Process
Top Trends in Silicon Valley Established Entities Network tokenization Zelle / real time payments Authorization approvals vs. chargebacks Payment Services Directive 2 (PSD2) 3DS 2.0 / Two-Factor Authentication Global Data Protection Regulation (GDPR) Emerging Entities Simplification in EMV adoption Pay at the Table Best in class user experience Distribution, boarding and activation (AML / OFAC) Global Data Protection Regulation (GDPR)
Elavon Innovation Update
Connect 2017: Elavon Innovation Update Targeted Launch Launched Adjusted Launch Date Validated Point to Point Encryption Q4 2017 May 2018 Advance Fraud Services Launch Q2 2018 Q1 2019 Oracle OPI / Cloud Bridge Q4 2017 May 2018 Pay Buttons Q4 2017 April 2018 Converge 2.0 to Europe Q4 2017 Pilot Q3 2018 Launch
What s Next?
Developer Portal http://developer.elavon.com/ European Developer Portal Live Q4 2018
Self-Test Platform Production and certification environment kept in lockstep, code deployment concurrent in these systems Testing functionality prior to production happens outside the standard test environment Available 24/7, with automated evaluation of tests Removed 85% of audit time for EMV certification Fusebox Production Certification Converge Production Certification Stratus Production Certification
Contactless EMV on Simplify (Fusebox) The Global contactless payment market is projected to grow at CAGR of 19.7% by 2025 and reach approximately $33.3 billion* Simplify Ingenico currently in certification first available timelines o Elavon Q3 2018 o First Data US Q3 2018 o Chase US Q3 2018 Simplify Verifone in development and currently planned for release in Q1 2019 *Linker Global Contactless Payment Market Analysis & Trends Industry Forecast to 2025
Quick Chip 1 Second Per Dip Using EMV with Quick Chip 10x Faster Than Traditional EMV 15% Faster Line Speed In-Store https://www.index.com/payments-and-security/emv/ Planned launch for Simplify Ingenico on Elavon in Q3 2018 and Simplify Verifone on Elavon in Q1 2019.
PCI P2PE One of the first U.S. acquirers to provide validated PCI P2PE solution and best positioned to address Tier 1 & 2 customers Currently available on Simplify Ingenico devices via Fusebox platform Benefits include: increased security levels, reduce SAQ by up to 90% and eliminate all network based requirements Expanding validated solutions to include Simplify Verifone and Converge during 2019
Pay at the Table / Order at the Table Pay at the Table Oracle o iwl Bluetooth available now o iwl Wifi targeted release Q3 2018 o Link 2500 targeted release Q4 2018 Squirrel o ismp4 targeted release Q3 2018 Agilysys o Integrated solution targeted release Q3 2018 Vivonet o Integrated solution available now Moby M70 Available on Converge with talech support in July Open Android 7" tablet using RP457 6.95" 1024x600 HD screen Gorilla glass capacitive touch screen 1GB RAM / 8GB ROM WiFi 2.4 / 5 GHz(ac) & BT 4.2 Back camera (5 MP) Magstripe, EMV Contact and MSD Contactless
Poynt Update Poynt is an Android All-in-One Platform (P61 & P5) Poynt provides Poynt POS API for semi-integration o Aloha and Micros through 3 rd party apps o Elavon POS connectivity app to Micros Q3 2018 3 rd Party App Store on device Enterprise models available Elavon s Direct Host AXIS NA Live Today Elavon s Direct Host Axis EU Live in July 2018 Converge Live July 2018 Fusebox Live Q4 2018 (TPP Roadmap Driven by Customer Priority)
Least Cost Debit Routing Least Cost Routing launch September 2018 Preferred Routing launch September 2018 PIN-less Debit Routing launch 1H 2019
Converge 2.0 in Europe ecommerce Social Media Mobile POS Advanced Fraud Services, Security & Compliance VAS, Loyalty & Marketplace Customer Interactions Global & Local Payments Internet of Things Customer Service Omnichannel CRM
Network Tokenization Targeted to replace all cards on file Enables integrated account updater functionality Works with network Pay Buttons and 3DS 2.0 Elavon working enable omnichannel use cases Launching 2019
3DS 2.0 Frictionless Fraud Protection Increased authorizations Liability shift for chargebacks Unlock reduced interchange categories Full proposition needs to support 1.0.2 and 2.0 requirements Elavon launching 3DS 2.0 in Q1 2019 for Visa, MC, Amex, Diners & JCB
Vertical Updates
Hospitality Focus Converge Hospitality Pay @ Table Apple Pay for Lodging Caribbean Expansion Mobility Secure way to accept payment for Amenity or Room-related charges from 3 rd parties Changing the way Americans dine out with service-enhancing and secure payment at the table. Introducing the world s favorite e-wallet for check-in and roomrelated charges Bringing Elavon s powerful Gateway and Security solutions to the islands of the Caribbean Taking transactions directly to the customer. Line busting, pool or beachside food service, remote check-in, order at table and more
Public Sector American Express Card Acceptance Specifically designed for the Public Sector Single point of contact Single reconciliation process State rates eligible Same speed of pay Service fee eligible July 2018 Service Fee Product Enhancements Converge Next Gen Hosted Payments Page with tokens launching Q3 2018 Converge XML API Ingenico terminals New bill pay product
Services Professional Services Telecom POS P2PE PCI Verified, EMV, NFC, with Service Fee Utilities
Bill Pay
Closing
Not Well Defined Problem Definition Well Defined Elavon is in Good Company Innovation Matrix Breakthrough Innovation Sustaining Innovation Basic Research Disruptive Innovation Not Well Defined Domain Definition Well Defined
Questions