Payment solutions for secure and harmonised European transactions

è www.steria.com

A Steria capability overview

Payment solutions for secure and harmonised European transactions

Effective and flexible end-to-end solutions for a changing payments market

02 | Payment solutions for secure and harmonised European transactions è www.steria.com

Did you know...

Steria has more than 25 years’ experience in the payments industry with 500 skilled professionals specialising in payments around the world

We have delivered and advised on some of the world’s largest payments systems, supporting transformation programmes that have entailed full end-to-end lifecycle implementations

We delivered the first contactless card solution for the UK market We manage more than 4 billion transactions a year and 1,100 ATMs for Europe’s first

operational payment factory More than 100 banks are using our payment and card management solutions worldwide Our technology underpins motorway tolls and other transactional payments across Europe Our market-leading Stecard® solution for front office payments covers the requirements of

card issuers and card processing systems alike We’ve successfully operated a credit/debit card chargeback service since 2001, delivering

operational cost savings of 30% to our clients and reducing write-offs to less than 1% of the volume processed

We have developed cross border payment solutions and are connected with all international banking networks

We have built and implemented innovative digital payment solutions in response to new and emerging customer trends, including m-wallet and e-payment services

We partner with specialist technology and payments product vendors, including SWIFT, Sentenial, Experian and Edgar, Dunn & Company, as well as SAP and Oracle

“ Steria’s commitment and ability to respond to our needs have been key to the success of our card payment processing project, despite the complexity arising from the multi-bank aspects. The software’s multi-country features have already made it possible for us to consider integrating foreign subsidiaries onto the platform.”

Alain NICAUD – President, Transactis (joint venture between Société Générale et la Banque Postale)

Payment solutions for secure and harmonised European transactions | 03è www.steria.com

From banks and payment card providers to transport operators and online retailers, more and more organisations are turning to Steria to help them respond to fundamental change within the payments industry. Tighter regulation in banking and financial services, combined with an urgent need to keep down costs in all sectors, is driving new payment models and digital services.

As the use of payment cards for small amounts increases and pre-payment cards become more readily available, it is important to adopt new payment practices. How do you incorporate mobile, the internet or social networks into your payment infrastructure? Can you guarantee payment to merchants? And how secure are your customers’ transactions? With the introduction of the Single European Payments Area (SEPA) and increasing regulatory requirements, compliance too is a constant challenge.

Within this landscape, Steria has delivered and advised on some of the world’s largest payments systems. We help our clients to achieve diverse business critical objectives including the following:

• Costsavings–viamoreefficientpayments processing

• Securepaymenttransactions–bydeveloping new rules for validating payments

• Innovation–withnewdigitalpaymentchannels including social, m- and e-payments

Releasing value

At all times we focus on releasing value for our clients with qualitative outcomes as a result of our expertise in regulation, compliance and payments system integration.

We are helping to transform the payments industry with the following:

• Expertbusiness transformation and IT consulting services, drawing on our experience across the private and public sectors to transfer knowledge and share best practice.

• Card management, including expertise in card business consulting, project management (issuing and acquiring), secured payments, and our pan-European front office software Stecard® for banks and merchants. Our long history in card management gives as a deep understanding of how to manage payment information system performance and prevent money laundering and fraud across different industry sectors.

• SEPA and foreign payments expertise, including consulting in the integration of payment solutions

as Europe seeks to create a unique payment market simplifying payment credit transfers and direct debit payments between European companies.

• Digital payments services, delivering new business models, such as Europe’s first joint venture payment factory, and new technology solutions in response to the rapidly changing consumer demand for mobile and internet payment channels.

• Services to manage IT infrastructures, applications portfolios, quality assurance and business processes, including back office functions such as HR and Finance & Accounting.

Responding to continuous change across the payments landscape European harmonisation, ongoing cost pressures, technological innovation and escalating volumes mean that today’s payment service providers must adapt quickly with new payment infrastructures and services, such as mobile, social and e-payment, to remain competitive.

Did you know… we have simplified the cash management process for Société Générale with an end-to-end service including consulting, migration and maintenance for a new single payment platform known as Cash Europe.

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Capitalise on your payments transformation

As the volume of payment transactions continues to rise across Europe, companies are transforming their processes and technology to reduce the cost of processing their payment solutions. This is especially the case as budgets for maintaining and evolving payment technology in line with new regulatory and business rules are being squeezed.

Payments transformation is also an opportunity to maximise income with the development of new customer centric business models to offset investment in SEPA and to achieve greater payment security and efficiency across the end-to-end payment process.

Steria can help you achieve these objectives. Our experience in delivering SEPA solutions dates back to 2006, while more recently we have partnered to create Europe’s first operational payment factor for two French banks.

We recognise that each transformation journey is unique. That’s why we offer flexible business models, from a more traditional outsourced managed service to contracts based on Software as a Service. This allows you to derive all the benefit of new payments platforms without tying up resources and unnecessary cost.

We support end-to-end payments transformation with the following:

• Transformed payment processes, channels and methods: as more and more customers seek to use the internet and their mobile devices to make purchases, we’re developing new IT solutions and business models enabling banks, merchants, telecommunications operators, internet providers and other parties to secure, validate and approve of payment transactions. Our Stecard® solution is also behind an innovative new business model bringing together the front offices of La Banque Postale and Société Générale in the Transactis joint venture (see ‘Did you know...’ below)

• Evaluation of payment product: our impartial advice and knowledge of the payment industry ideally position as a consulting partner for companies looking to choose a new payment solution. We review and benchmark responses to RFIs, run Proof of Concept projects, and measure the return on investment (ROI) based on how your chosen solution integrates with the business plan.

• Security and compliance: a detailed audit of your information system will assess your levels of data protection and fraud prevention as well as your ability to comply with payment industry regulations, such as PCI-DSS (Payment Card Industry Data Security Standard), PA-DSS (Payment Application Data Security Standard), 3D Secure (e-payment authentication) and Near Field Communication.

• Payments best practice: as thought leaders in the payment industry we conduct intelligence and European surveys amongst many of the industry’s leading players to continually develop our understanding of the latest trends and to identify and share best practice with our clients.

• Launch of new payment services: our consultants can help you with the design, pricing and other aspects of your new product marketing and distribution activity, including running pilots.

We continue to help our clients capitalise on their payments transformation with increased payment income, reduced cost and the development of new business through agreements with payment service providers.

How do you ensure your payment transformation strategy delivers new and more efficient services in the face of increasingly tight budgets? Can your transformation help you to deliver more, for less?


Did you know… Steria is the lead provider of the first operational payment factory in Europe. Our Stecard® payment solution is managing peak transaction volumes of 4 billion card transactions per year for Transactis, the joint venture between Société Générale and la Banque Postale. This is a wholly new business model for the shared management of standard payment transactions, including the authorisation and collection of ATM transactions.

Supporting transformation

Here’s how some of our clients are benefiting from this transformation:

• Ecomouv’ –Steriadesigned,developedand now maintains the central IT system behind the first ‘eco tax’ in France, which manages cards transactions for more than 800 000 goods vehicles.

• Cooperative Banking Group –weimplemented an anti-fraud solution for this UK retail banking group with the migration of its payments to real-time services in line with regulatory compliance.

• Germany’s biggest card issuer –wehelped to migrate an active credit card portfolio of about 3 million credit cards to a new core-banking platform in a project that included numerous client specific extensions that has provided a state-of-the-art card management system

These are challenging times for all organisations operating in the payments sector. Despite reduced IT budgets, companies still need to invest in the latest software to ensure they stay ahead of constantly evolving payment crime and fraud threats.

New payment channels, including online and mobile, must not only deliver innovative services to the end customer, they must be secure in order to instil confidence in the end customer. Steria offers a complete end-to-end service that both helps you migrate to a new payments landscape and secures and maintains it for the long-term. Our high quality card business consulting offering embraces both the issuing and acquiring sides of the payments business. We focus on ensuring your operational efficiency and increasing the performance of your payment information system.

Stecard® is just one of the solutions we put in place to help our clients manage this end-to-end payments process. Well established as a software front office solution in banking and financial services, Stecard® meets all the requirements of both card issuers and card processing systems, interfacing with ATM and self-service banking equipment. It is now being used in other sectors, including transport, defence, e-commerce, retail, telecoms and media. In retail, for example, it enables merchants to process payment authorisations at point of sale.

Beyond Stecard®, our solutions extend from the design and integration of new

payments technology platforms, to new business models, secure transactions, regulatory compliance and innovative payment products. While we manage payments technology platforms and their interconnection across Europe, our clients are free to focus on the strategic implications of their payments business.

As we continue helping to develop European payment networks and global strategy our clients benefit from:

• Innovation: we are developing new payment solutions, such as m-payment, e-payment, e-wallet and tokenisation, enabling the use of mobile phones and other devices to pay for purchases and services

• Flexibility and scalability: we tailor our solutions to the individual needs or our clients

• Software roadmap strategy: keeping your organisation up-to-date with new versions of software and systems upgrades

• Security (certification and regulation): all our solutions are certified and comply with the latest regulations for payment security and information management

• International connectivity: our payment solutions link with all the main payment card providers.

Delivering benefit

As you’d expect from a company that has been at the heart of European payments for more than 25 years, we put the emphasis on the quality of our delivery to manage costs and prevent project delays. Among the clients benefiting from our expertise are:

• A major French bank –choseSteria’sadvanced electronic payments solution Stecard® to ensure its automated teller machine (ATM) server solution would continue to provide a high performing 24/7 service to its customers using 6,000 ATMs in France

• Payment service provider–leadingpayment processing company depends on our Stecard® solution to run more than 400 ATMs and to rationalise electronic banking flows for 15 major clients on a unique and single platform.

As new business models emerge in European payments, with diverse channels and service requirements, how do you manage the increase in volume securely for you and your customer?

Secure card payment transactions across every channel

è www.steria.com06 | Payment solutions for secure and harmonised European transactions

Did you know… French motorway operator Sanef Group selected our Stecard® solution to implement Europay, MasterCard and VISA standards across its road network. This allows Sanef to comply with new standards requiring motorway management to read smart card chips for all toll transactions.

Staying ahead of regulatory change and digital developments Keeping up with all the payment regulations including SEPA, PCI-DSS and PA-DSS, as well as the stipulations from Visa and Amex, cannot be left to chance.

Are you equipped to assure compliance with regulatory requirements linked to your payments business? And what about fraud and anti-money laundering? As new channels and technologies continue to disrupt the payments market, a raft of legislation is in place to ensure that customers and providers alike are protected in this evolving landscape.

Steria offers solutions to support compliance with the latest regulations while enabling organisations to make the most of new digital payment opportunities.

Regulatory compliance

Get ready for SEPA. More than nine European businesses out of 10 use credit transfers and half issue direct debits to receive payments from their customers. All businesses using credit transfers or direct debits in Euros will need to migrate to SEPA by February 20141.

Our consultants offer extensive payments compliance experience. This ranges from SEPA, foreign payments, bulk and individual payments, to SWIFT, clearing, exceptions, reconciliation, e-banking / portal-solutions and cash management. Our clients benefit from the resources and expertise they need to implement new regulations and market requirements. We achieve this with local teams

working alongside each client to help them identify and seize new business and market opportunities, such as those presented by the SEPA protocol for data use.

In addition, as the 2014 SEPA deadline approaches, we’re helping companies across Europe implement the solutions they need to comply, on-time and cost effectively. They are benefiting from our Business Process Outsourcing (BPO) managed services converting customer and supplier bank records to SEPA format and remediation services for refreshing customer/supplier missing data and SEPA Direct Debit mandate completion. Outside financial services, our sector-specific knowledge allows us to bundle payment capabilities into solutions tailored to individual clients, such as those operating in transport, retail, telecommunications and other industry sectors.

Digital opportunities

Within the continually evolving regulatory landscape, we are also supporting the digital transformation journey with a complete digital payment offer. This extends from IT and business consulting to off-the-shelf digital payment solutions and integration services.

We define digital strategies and solutions for our clients that incorporate the most appropriate product, channels, transactions, technologies and IT-systems.

This allows our clients to:

• Improvetimetomarketwithnew digitalpaymentservices–enhancing the customer offer and increasing customer loyalty

• Easedigitalpaymentsolutionintegrationwith current technology platforms to maximise investments in existing IT

• Deploymulti-channelofferingsinlinewithconstantly changing customers demand for new and innovative payment services

• Securealltransactionstransferringpayment between companies and across borders.

We are delivering these services to multiple clients, including:

• Banque de France–wemanagetheEuropean interbank exchange platform with a solution that centralises cashflows between the bank’s platform and Clearing and Settlement mechanisms such as STET, EBA and Swift.


1 SEPA : will European businesses be ready for the transformation? | A Steria Report 2012

Did you know… a leading German automotive bank selected Steria as its business consulting partner to ensure SEPA readiness with an impact analysis of all systems and processes and implementation of SEPA Credit Transfer and SEPA Direct Debit.

• Major European bank– we supported the bank’s digital transformation with the development of an online payment business case. We defined the functional and IT requirements and provided recommendations for the solution provider.

• German cooperative banking sector–Steriaprovided consultancy services supporting the design and rollout of a new payments engine as a central solution for 800 cooperative banks with a modern payments infrastructure meeting SEPA requirements.



Our payments solutions portfolio is built on more than 25 years’ experience in this specialist area. These solutions are complemented by our proven IT-enabled consultancy services and technology solutions that give you the agility you need to make change happen as quickly as possible:

• Transformation services: supporting the ongoing transformation of business processes, applications and IT infrastructure.

• Consulting: making the most of our sector expertise to successfully implement strategic and organisational change.

• Application development and system integration: from solution definition, design and development, to deployment and ultimate benefits realisation.

• Testing and quality assurance: bridging the gap between application development and systems rollout.

• Application management: agile, focused IT services based on guaranteed outputs and outcomes designed to optimise and maintain solutions.

• Infrastructure management: meeting the drive for cost reduction, flexibility, performance improvement and growth.

• Business Process Outsourcing: delivering a step change in business efficiency, agility and performance in functions such as HR and Finance & Accounting.

We draw on our best-in-class consulting, solutions, services and implementation expertise to ensure our clients are able to operate efficiently in this constantly evolving area. For example, we have long-term business process outsourcing (BPO) partnership with a leading UK telecommunications provider, which includes the provision of back office support for its mobile money service. We are providing this m-payments business with cash management services, such as accounting-to-supplier payment management support, a supplier help desk, payroll and a broad range of accounting services, including management reporting.

Across the entire payments landscape, we’re freeing up our clients and giving them the tools they need to focus on their business priorities of driving payments revenue securely and cost effectively.

Rising to the challenge of 21st century advanced payments Steria offers advanced payments solutions that incorporate new business models, game-changing technologies and proven expertise in business process optimisation.

Did you know… payment service providers can tap into a broad global market as a result of Steria’s payment solutions linking with all the main payment card providers, including Visa, Mastercard, Amex and China Union Pay.


Steria payments solutions

We deliver specific advanced payments and related services, solutions and innovations, including:

Find out more

Find out more about Steria’s extensive range of advanced payments services and solutions and our diverse portfolio of IT-enabled business services at www.steria.com or email [email protected]

Services:

• ApplicationManagementandDevelopment

• BusinessProcessConsultingand Implementation

• BusinessProcessOutsourcing

• ChangeManagement

• End-to-EndCaseManagement

• End-to-EndTestingManagement and Governance

• FinanceTransformation

• InfrastructureManagement

• OperationalandITOutsourcing

• PartnerManagement

• ProgrammeManagement

• RegulatoryChangeManagement

• TUPEManagement

Solutions:

• FrontOfficeSmartCardStecard®: Point Of Sale (POS) and Automated Tailor Machine (ATM) solution

• SEPAforCorporates:SEPAMandates Management, Transaction Processing, BIC / IBAN management, SEPA Financial Flow Router

• Anti-MoneyLaundering

• BaselII/III

• BusinessIntelligence

• CreditCardChargeBack BPO Services

• DataManagement

• EnterpriseContentManagement

• EnterpriseSolutions (SAP, Oracle)

• FinancialCrime&Anti-FraudMechanisms

• HumanCapitalManagement

• ITSecurity

• Migrations

• Post-MergerIntegration

• Procurement

• RegulatoryChangeManagement

• RegulatoryReporting

• RiskManagement

Innovation:

• BusinessVisioning

• ChannelStrategy&PortalSolutions

• Cloud-based,InfrastructureOnCommand

• DigitalVisioning

• LegacyEnablement

• Location-basedApplications

• MobileApplicationDevelopment

• TargetOperatingModelDesign and Roll-out

• TechnologyInsightandDirection

Groupe Steria SCA 43 - 45 Quai du Président Roosevelt F-92130 Issy-les-Moulineaux CEDEX France © Steria _ DoEPAY001

For further information about our services visit www.steria.com

About Steria

Steria delivers IT enabled business services and is the Trusted Transformation Partner for private and public sector organisations across the globe. By combining in depth understanding of our clients’ businesses with expertise in IT and business process outsourcing, we take on our clients’ challenges and develop innovative solutions to address them efficiently and profitably. Through our highly collaborative consulting style, we work with our clients to transform their business, enabling them to focus on what they do best. Our 20,000 people, working across 16 countries, support the systems, services and processes that make today’s world turn, touching the lives of millions around the globe each day. Founded in 1969, Steria has offices in Europe, India, North Africa and SE Asia and a 2011 revenue of €1.75 billion. 21%* of Steria’s capital is owned by its employees. Headquartered in Paris, Steria is listed on the Euronext Paris market.

*Including the Employees Shares Trust in the UK

Payment solutions for secure and harmonised European transactions

Technology

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