Instant EMI Solution

Solution Overview

Agenda

• Instant EMI Solution

• Plutus Credit/Debit Acceptance at the PC POS

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Introducing Instant EMI Solution for 0% Financing O ffers

• Manufacturers can drive incremental sales by launching an attractive real-time EMIoffer on White Goods, Consumer Electronics, Travel Packages and much more

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Higher sales volumesControl over products - to sell slow-moving goods, restrict to high-margin products,improve sales in competitive categories or launch new product linesControl over merchants – offer presented only at designated stores during designatedtime periods

• EMI transactions are authorized at the POS in real-time…•

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Manufacturer sets centralized rules by Product Category, by Duration, by Merchant andStore, by date, and by transaction valueManufacturers can contract with multiple credit card Issuers to make offers available tobroadest possible prospect universeMerchant does NOT need to install devices or train cashiers – all rules are set centrallyand enforced automatically

• …and settled directly between Issuer and Manufacturer••

Financing cost is reported daily – by duration, product, store, etc.Manufacturer reimburses the negotiated subvention rate to Issuer via ECS payment

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How It Works: seamless customer experience at the P oint ofSale, with complete control from backend

1 Manufacturer logs intoEMI Host and sets offerrules: Product, Retailer,Location, Duration,Issuer & Rate

2 At the Point of Sale,Cashier selects EMItransaction and swipescustomer’s Card

3 Plutus application asksCashier to enter ProductCategory & Serial Number

4 Plutus queries EMI Host forapplicable Offer – for thatproduct, card, amount, etc.

BANK

8 Plutus generatessettlement reports at Endof Day

7 Plutus receivesauthorization & printscharge slip

6 Customer selects EMI Offerand Plutus sendstransaction to Bank

5 Plutus displays availableoffers to Cashier

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Key Benefits: EMI program supports flexible schemes ,creating a valuable new marketing channel for Manuf acturers

•1 Control offer delivery at the Point of Sale• Set centralized rules to control which EMI offer is presented to the consumer – eliminate Cashier

decision-making• Configure by product category & product line, by merchant or by store, by date range and by

Issuer• Use convenient web interfaces to update or edit schemes in real-time• Substantially reduce the risk of offer fraud and eliminate Cashier decision making

2 Increase reach into Issuers’ portfolios and at Retailers’ outlets•• Plutus front-end application can be integrated with Merchant’s POS Application , eliminating the

need for Cashier data entry• No need for EDC hardware installation and cashier training• Tie up with multiple Card Issuers: no need for “on us” transactions, no need to install new EDC

machines at merchant outlet

3 Leverage rich MIS at the cardholder and product level•• Receive automated reports – or pull in real-time from EMI Host using convenient interfaces• Reports include cardholder details, transaction information, computation of financing costs• Manufacturer can leverage MIS to track performance of individual EMI campaigns in real-time

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1Manufacturer sets rules by Product, Amount, Retaile r andTime Period using online interfaces – for centralize d control

Manufacturers can set rules by:

1. Product category : set EMI terms byproduct categories. For example, 12month EMI on Televisions and 3 monthEMI offers on mobile phones

2. Transaction value : set EMI terms bycumulative amount. For example, 12months on purchases > Rs 50,000; 6months on purchases < Rs 50,000

3. Merchant : set MIDs and regionseligible for offer. For example, programapplies only to Croma stores in North

4. Offer dates : set program duration. Forexample, scheme can be run for monthof November only

5. Issuer : set rules for Issuer and for BINrange of cardholders

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2Program ’s reach extends to multiple Issuers’ cardholderportfolios – without EDC installation

Conventional EMI Solution• EMI offers for “on-us”transactions only – locked intosingle Acquirer/Issuer

EDC Single Acquirer/Issuer

• Slow time to market of any newprogram

Plutus EMI Solution

Issuer 1• EMI offers from multiple Issuers –add or drop at will

• Issuers can set rules to acceptcards by BIN range for EMI offers

• Reconciliation and settlementreports generated EOD for allparties

Acquirer Issuer 2POS

Issuer 3

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3Plutus provides rich real-time MIS for reconciliati on,

including cardholder and product details

Online User Interfaces1. Customer-level data : Name,

phone number, address, productcategory, serial number

2. Transaction-level data : Productcategory, Merchant, Location,Value

3. Offer-level data : Issuer, EMIscheme details

4. Automated computation offinance charges

5. Fraud management : velocitychecks, de-duplication

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Our solution benefits all stakeholders in the EMI p rogram,increasing adoption and ROI of EMI

Manufacturer

• Higher sales on selectproducts and Retailers

• Ability to run targetedcampaigns - seasonal,new product launches,incentives on slow-moving goods or high-margin products

Retailer

• Higher turnover in thestore, especially on high-ticket items

• Convenient integrationwith Manufacturer salesstrategy at minimumoperational effort

• Rapid check out process

Issuer

• Higher volumes of creditcard usage, at no extracost

• Automation of EMI Offerprocessing andsettlement

• Access to “off us”transactions at theRetailer

• New income streamsfrom financing charges

• Differentiated offer to thecardholder

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• Convenience & control of• Opportunity to integratelaunching and editing EMIdirectly with POSOffer strategy in real-timeapplication

• Complete MIS forperformance evaluation

Agenda

• Instant EMI Solution

• Plutus Credit/Debit Acceptance at the PC POS

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Introducing Plutus, our credit & debit processing a pplicationfor the PC POS

How It Works

• Solution runs on existingPC-based POS

• Merchants install Plutus viaCD and guided installationinterfaces

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Plutus Features Summary

Certified by major BankAcquirers, and Visa

• ICICI, HDFC, AXIS,HSBC Global Payments,Citibank, SBI

• Amex• Visa PCI, EMV

Accepts all paymentinstruments

Cr/DrPin-basedEMVMobilePPC/GVContactless

Best-in-class securityfeatures

3DES data encryptionfrom swipeUser accessmanagementTID licensing and keymanagementInput device control

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Only PC-based product -replaces EDC

• Higher security• Flexible connectivity -

CDMA, VPN, VSAT, IP• Integrated with Biller -

manual data entry• Touchscreen enabled• Batch reporting• Supports split

transactions

Value-added features

• Plutus Multi-acquirer -route transactions topreferred Acquirer

• Plutus Secure - Bank-certified IP connectivity

• TransactionReconciliation - centraldata warehousing &management

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••••

Integrated with leadingPOS peripherals

Card readers - MagTek,AMDL, WincoreBar code scannersPEDSmart Card readerPrinters - OPOS,Windows

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Key value drivers of Plutus - At A Glance

•1 Replace EDC terminals•••

Eliminate dial-up charge for cr/dr transactions, and landline charges for each EDC terminalSwitch to always-on, high speed internet processingRemove counter clutter

•2 Streamline operations at the POS•••

Reduce need for cashier trainingAutomate data entry by integrating Biller and cr/dr payment transactionEliminate cashier manual data entry, and increase transaction speed

•3 Centralize transaction routing•••

Eliminate cashier decision-makingExtract favorable MSF terms from Acquirers for high transaction volumesChange routing rules (Acquirer strategy) centrally at the touch of a button - no retraining of cashiers required

•4 Leverage Transaction warehousing and automatic reconciliation••••

Digitize & automate reconciliation of POS settlement and Acquirer payment adviceLeverage rich MIS, including Acquirer-level transaction analysis and quarterly audit reportsCentralize POS-level alerts, e.g., unsettled POSSave cashier time

5 Rely on highest Security standards••

•

End-to-end PCI Compliant solution eliminates need for PCI certification of merchant’s POS or network or datacenterEMV-compliant card acceptance through Pin Entry Device integration

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1Plutus replaces EDCs - and their associatedtelecommunication cost

EDC Functionality

• Every Cashier counter must have EDC

Plutus Scenario

• NO need for EDC - Plutus is a softwareapplication which can run on any Windowsbased PC or PC-POS

• NO need for PSTN lines - Plutus can supporttransaction processing through existingbroadband connection

• To make transaction secure and acceptable toVisa / Master and AMEX, Plutus comes withPA-DSS approved VPN connection

- Rs 150 for Secure VPN Plutus connectionfor 3 POS = Rs 450

- Plus monthly internet cost of Rs 200

- => Monthly telco costs are Rs 650, asavings of Rs 2000 per store per month

• Every EDC must have PSTN telephoneline

- Assuming Rs 1 per call, and 2000transactions per month in each store

- Plus Rs 150 for landline rental foreach EDC terminal, and 3 EDCterminals per store

- => Monthly telco costs are Rs 2650

• In case of acquiring by multiple banks,multiple EDCs required at every till,resulting in clutter

• All acquiring banks are available in singleapplication

• Axis Bank, ICICI, HDFC, Citi, HSBC, AMEX

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2 Second, Plutus streamlines operations at the POS

EDC Functionality

• EDC cannot be integrated with billerapplications on POS

Plutus Scenario

• Intuitive Windows-based interface limits trainingof cashiers and reduces human error

• Can be easily integrated with any billerapplication, using Windows based COM API

• Workflow automation reduces overhead, speedstime to resolution

• Cashier manually enters amount inEDC, leading to data entry errors

• Transaction Amount is passed by biller directlyto Plutus. No data entry possible

• EDC dial up is slow, resulting in longerqueues

• Faster transaction times through automation andfaster connectivity reduces queuing time

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3 Third, centralized transaction rules allow the merc hant tooptimize acquiring strategy without relying on cash iers

EDC Functionality

• Manual decision by cashier toselect most optimal acquiring bank(for example, lowest MSF rate)

• Limited ability to enforce complexrules - based on cashier’sjudgment

• Cashier training is required toroute transactions to most suitableacquiring banks

Plutus Scenario

• Plutus selects Acquirer based on rules

• Rules are set centrally at HO - not by thecashier, creating real savings on MSF rates

• Complex rules - for example, on-us versusoff-us optimization; time-based; defaultacquiring - can be set using intuitiveinterfaces

• No cashier training required

• Rule changes are propagated in real-timein the field

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3 Multi-Acquirer solution ensures transactions are ro utedto on-us Acquirer with favorable MSF rate

Single Acquirer Solution ~70% of transactionsare routed to V/MC for

off-us settlement

Issuer 1

QuickTime™ and adecompressor

are needed to see this picture.

POS Single Acquirer/Issuer

Visa/Master-card Gateway

Issuer 2

Issuer 3

Multi Acquirer Solution Only ~20% oftransactions are

routed through V/MCfor off-us settlement

Acquirer/Issuer 1

QuickTime™ and adecompressor

are needed to see this picture.

POS

~80% of transactionsare routed directly toAcquirer.Issuer for on-

us settlement

Acquirer/Issuer 2 Visa/Master-card Gateway

Other Issuer

Acquirer/Issuer 3

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4 Lastly, Transaction Aggregation and Reconciliationeliminates paper-based reconciliation and reduces e rror

EDC Functionality

• Each transaction is deleted uponsettlement

Plutus Scenario

• Transactions can be stored in TRM for whateverperiod required

• Centrally accessible user interfaces rendertransactions volumes, settlement and reconciliationstatus and allow users to search by zone, store,POS, transaction, etc.

• Settlement is controlled by cashier, • Central user interfaces show alerts for unsettledand often overlooked - payments batchesare settled late

• Reconciliation between settlementreports and banks’ paymentadvice is manual and laborintensive

• Reconciliation of each batch with bank’s paymentadvice is automatic

• Disputes are flagged and entered into work flow foreasy resolution

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TRM centralized payment advice reconciliation &workflow tools

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1.Frees upcashier’s time

2.Eliminatesmanual errors

3.Speedsquarterlyaudits

• Centralized reconciliation of settlement and payment advice• Digitization of statements• Integration into automated accounting and dispute resolution

workflow

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5

Security: current POS devices & networks are insecu re

Component

POS device

Security Concerns

• Track data encryption from the point of card swipe

Dial-Upconnectivity

• “Sniffing” - credit card data is transmitted in plain text and caneasily be intercepted

CDMA, VPN orVSAT networks

• No end-to-end security - reliant on retailer LAN to secure dataat POS before transmission outside of store

Storage • Sensitive data resides in central data, providing h ackers with asingle point of attack - “jackpot” scenario

Businessprocesses

• User access poorly controlled, allowing capture of credit carddata

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5 Plutus Secure application enables transaction proce ssingvia broadband - PCI PA DSS certified

Transaction Process Flow withPlutus Secure

PC-based POS inStore

• Secure card swipe• Data packet encryption

BroadbandConnection on

Public IP

• Transmission ofencrypted data packet insecured channel

Data CentreBank Payment

Switch

• Transactionauthorization

• Data transformation tobank protocol

Faster transactions, with higherSecurity at lower connectivity cost

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Proposed Architecture: Plutus with Secure Internetconnection to Banks

Secure Processing via Internet

• TRM stores masked data fortransaction management

• Automatically reconciles withBanks’ payment report

• Data encrypted andtransmitted securely viabroadband

• End-to-end PCI Certified -merchant’s networkrequires no certification

• Rule Configuratorsets routing rulesat POS level

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Our Contact Details

http://pinelabsblog.com

contact@pinelabsblog.com

We would be more than happy to demonstrate the solution and offer a FREE trial