Evolution of ePayables Technologies

Scott Songer, CEO

The B2B payments and related ePayables markets are in flux.

1. The payments space has evolved significantly over the past 15 years.

2. A subset of end-users (buyers and suppliers) have embraced current technologies.

3. Overall growth in the industry is expected to continue, however, much of the low hanging fruit has already been harvested.

4. The next 15 years will see an increasing number of entrants and shrinking margins.

5. Stakeholder’s current product mix will be insufficient to ensure continued success.

6. High growth has attracted and will continue to attract additional players to the marketplace.

7. Financial institutions must integrate, innovate, partner and/or acquire or risk being passed by as other entrants.

The information contained in this document is Confidential and as such cannot be disseminated to any parties other than .

Buyer ERP / AP

Applications

Supplier ERP / AR

Applications

Buyer Profile

& Set-Up

Supplier Profile

& Set-Up

Card

ACH Check

Payment &

Remittance Data

Payment &

Remittance Data

The overall B2B market need remains constant.

Goal: Balance between buyer and supplier.Source: SilverStream Advisors

AP / EIPP Technology Landscape

• T&E, • Fleet, • P-card• One Card

Virtual AP-Card Technology

Distributed Card

Technology

EIPPTechnology

• Vendor card • Single use ghost accounts

(SUGA)• Push pay / supplier

enablement• Pre-authorization / exact

match

• B2B marketplaces

• Payment hubs• E-Procurement

Features / Functionality

LicensingParties

• Card schemes• Processors• Tech providers

• Card schemes• Processors• Tech providers

Multiple providers

Super-RegionalCard Issuers

Primarily End-Users

Minimal End-User

Integration

Complex End-User

Integration

PrimaryProviders

Majority of Card Issuers

Fragmentation + Competition = Innovation

Source: SilverStream Advisors

The future will look very different...

• This has become a technology play

• Technology companies follow the money; seek new business models

• Your biggest competitor may not be your current competitor

• It is only a matter of time

Who? What?

Relentless focus on the

user experience

Case Study:

Existing providers recognize the growth and will find a way to participate in the value chain.

ERP Providers BPO Providers(Finance and Accounting)

vsFinancialInstitutions

ERP and BPO Providers

• Treasury management relationships

• Line of credit

• Treasury management relationships

• Line of credit

Large organizations invest in only 1ERP integration

Large organizations typically have 2-3

FI relationships

Collaboration

Financial institutions must integrate, innovate, partner and/or acquire or risk being passed by other entrants.

Financial Institutions

Technology Enablers

ERP & BPO Providers

Networks

“One of the most consistent patterns in business is the failure of leading companies to stay on top of their industries when technologies or markets change.”

- Clayton M. Christensen (Author of ‘Innovators Dilemma’)