MEET THE NEXT GENERATION OF PAYMENT TRENDS & TECHNOLOGIES - RYAN AUDUS, DIRECTOR OF PRODUCT JOHN MCELROY, SR. MANAGER, PRODUCT STRATEGY

Meet the Next Generation of Payment
Trends & Technologies
Ryan Audus, Director of Product
John McElroy, Sr. Manager, Product Strategy

Payment Trends: Topics
•   Evolving to Meet Gen Z Expectations
•   Moving Money Faster
•   Wallet Payments
•   A “New” Trend Toward a Cashless Campus
•   EMVco and Reducing Fraud
•   Best Practices to Support

Payment Trend: Beyond Cash or Charge

Generation Z: Mobile Natives

Trend: Mobile-Centric Business

Unattended: Grab and Go

Unattended: Food Ordering
                    Order Ahead
                  Food & Beverage

Question:
Are you less inclined to use a
kiosk for self-service post
pandemic?

Unattended: Order Ahead Dining
          Order

Unattended: MOTO (Mail Order / Telephone Order)

  Live Agent Payments                    IVR Payments
       Call Centers

Unattended: Validated P2PE and VoiP

Unattended: “Hey, Alexa…”
                          The football
                          game starts
           Your next      at 12:05 on    Your current
        class starts at    Saturday.       Account
         10:00 AM in                        balance
          Fraser Hall.                   is $1,459.92.

Unattended: Chatbot and AI Services

                            “How much is my refund?”

                            “When is my next payment
                            due?”

Trend: Contactless
                     Minamalize contact.
                     No contact as a goal.

                     No signature
                     No receipt
                     No touch

Contactless: Faster and More Secure

                                 Tokens

Question:
How many of you are accepting
contactless transactions at the
point of sale?

Contactless: New Standard for Device-to-Device

Trend: Move Money Faster

                           OCT

New Ways to Pay: These Two Wallets Too

New Ways to Pay: Apple Pay ecomm

                               ● Dual Authentication
                                   with Biometrics
                               ● Tokenization
                               ● No Card #’s Shared
                               ● No PCI

Trend: New Ways to Pay

• Alternative Payment Methods (APMs)
• Cross-border/FX payments (option to pay in local currency)
• Wallet Payments

Trend: Wallet Payments

• China’s Most Popular
  Payment Wallets.
• Wallets Growing in all
  of Asia
• US Methods Too

New Ways to Pay: Asian Wallet Experience
                                 eCommerce

       Point of Sale

Question:
Have you received requests to
accept Venmo or similar wallet
payments on campus?

New Ways to Pay: Currency Conversion

Not “New” but emerging in terms of
school interest in options:
  Dynamic Currency Conversion (DCC)
  Multi-Currency Processing (MCP)

                                       Example of DCC

New Ways to Pay: Cashless Campus
• Starbucks model – does it make sense for your campus?
• $1.6 billion in declining balance accounts (i.e. gift cards)
• 30% of all transaction (13% Order Ahead)

                                          In January of 2018, Starbucks began testing a policy in which it will not accept cash at a store in
                                          Seattle, supporting only plastic or mobile payments.

Move Money Faster: P2P

Move Money Faster: Disbursements
• New Disbursement Options for Students
  – Visa Direct (OCT)
  – Digital Checks
• What about APM’s?
  – Venmo (PayPal)
  – Zelle (Early Warning)
• Banking as a Service (BaaS)

Move Money Faster: Disbursements
                Push to Card vs. ACH vs. Check

New Ways to Pay: Secure Remote Checkout
                           Building blocks: Common acceptance mark, standard UI/UX, No Passwords!

                                                  Single “Buy Button”                                                                                                                                 User Experience Standards

                                                         Other ecommerce Other ecommerce
                                                             solution 1     solution 2

                                                                                                                                                                                                              Illustrative Only

            One “buy button” and acceptance mark to minimize                                                                                                                                                        User experience standards
                           customer confusion                                                                                                                                                                        to build consumer trust Illustrative Only

All brand names, logos and/or trademarks are the property of their respective owners, are used for identification purposes only, and do not necessarily imply product endorsement or affiliation with Visa.

Move Money Faster: ACH
  June 30, 2020 or June 30, 2021 – based on volume

                                      End-to-End Encryption
                                              June 30, 2020

  January 1, 2020

                                Account # Validation
                                     March 19, 2021

How to Support the Trend: Platform Approach

How to Support the Trend: Challenges

• Keeping up with the Joneses
• Finding a platform provider able to accommodate the various
  payment points and transaction types.
• A mobile-centric approach from your vendors.
• Ongoing security and regulatory changes

Thank You!
                       Questions
John McElroy, Product Strategy   Ryan Audus, Director of Product
(913) 310-1249                   (913) 310-1298
jmcelroy@touchnet.com            raudus@touchnet.com