Your Guide to Going Global with AP Automation. Donna Sawyer Paymode-X Product Manager, Bottomline Technologies

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1 Your Guide to Going Global with AP Automation Donna Sawyer Paymode-X Product Manager, Bottomline Technologies

2 Agenda Automating Global AP A Case Study for Global EFT Key Considerations When Automating Global Payables Q & A 2

3 The Changing Complexity of Global AP Inefficient paper processes plague traditional payments processing. Cross-border trade continues to grow as the Internet shrinks the world. According to the 2012 World Payments Report, the global volume of non-cash payments grew by 7.1% to reach 283 billion in Processing and executing global payments in a timely fashion only increases the complexity, expense and burden of making payments. 3

According to the 2012 World Payments Report, the global volume of non-cash payments grew by 7.

4 The Benefits of Automating Global AP FOR PAYERS Cash Management Improving the visibility into cash flow/cash management Cost Savings Eliminate postage and printing and/or expensive wire transfer costs Efficiency Streamline business processes by converting paper-based transactions to electronic Sustainability Accelerate transition to electronic payments and reduce carbon footprint Convenience Paymode-X manages vendor onboarding, handles all vendor inquiries and keep you informed date on progress FOR VENDORS Relationship Enhance business relationship with your customers Control - Better predictability of cash flow through online advance notifications of payments Sustainability Accelerate transition to electronic payments and reduce carbon footprint Visibility Online access to multi-format, unlimited payment history reports Flexibility - Gain efficiency without changing ERPs or banking relationships Network Effect Strengthen relationships and promote growth with single interface to many customers Savings Eliminate check processing fees, overhead and delays 4

Paymode-X manages vendor onboarding, handles all vendor inquiries and keep you informed date on progress FOR VENDORS Relationship Enhance business relationship with your customers Control - Better

5 A Case Study for Global EFT

6 An Introduction to the Company A technology performance company that makes technology make a difference by providing software, experts and best practices to ensure technology works well and delivers value. Key Facts FY 12 Revenues = $1B 4500 Employees worldwide 60 Different locations in 27 countries Finance Department 190 FTE s globally / 104 in the US Some functional roles managed in-country (for example payroll) 6

Key Facts FY 12 Revenues = $1B 4500 Employees worldwide 60 Different locations in 27 countries Finance

7 The Payments Process Transaction types and volumes last fiscal year 24,000 invoices 11,600 checks valued at $140,500,000 1,500 wires valued at $416,000,000 1,250 EFT s valued at $340,000 AMEX valued at $2,000,000 Process flow PO through invoice is mostly paper Wire used for international payments issued from the US Too many checks Reasons for change Time, cost and effort to continue to cut checks Suppliers wanted funds sent electronically, but they didn t want the added burden and risk associated with acquiring and maintaining supplier banking information 7

international payments issued from the US Too many checks Reasons for change Time, cost and effort to continue to cut checks Suppliers

8 Automating the Payments Process What they did Found a third party who could manage the payments, remittance and the supplier acquisition/maintenance for them Stakeholders getting consensus Required agreement from the Treasurer/VP Cash and the CFO The low risk / low expense model made the decision easy Measuring success Initially they were aiming at getting 10% of their check vendors onto the Network they fully expect to grow this % over time 8

Treasurer/VP Cash and the CFO The low risk / low expense model made the decision easy Measuring success

9 Automating the Payments Process Benefits to date Fewer checks, less expense, less work on their end Better supplier relationship; providing preferential treatment to their participating suppliers so they will provide better service to them They expedite invoices for vendors on the Network which means faster payment Their suppliers prefer electronic payments and they value getting the remittance electronically 9

will provide better service to them They expedite invoices for vendors on the Network which means

10 A Look into the Future What s next? Decrease the frequency of their check runs to entice suppliers onto the Network Move their AMEX spend onto the Network Reduce their manual processes Reduce their supplier s fees International Payments They make payments in virtually every country in the world; today its mostly done through wire They plan to roll this Network out globally 10

AMEX spend onto the Network Reduce their manual processes Reduce their supplier s fees

11 Key Considerations When Automating Global Payables

12 1. Reach Leveraging a Networked Economy * Increase efficiency Easy to use Lower costs 200,000 organizations have joined for a reason Optimize working capital Improve productivity Reduce carbon footprint Protect against payment fraud * Aberdeen Group defines a Networked Economy as a collection of buyers and suppliers who share a common connection to trading partners. Strengthen trade relationships 12

footprint Protect against payment fraud * Aberdeen Group defines a Networked Economy as a collection

13 2. Key Capabilities Ability to make electronic payments to vendors outside of the United States Operates on a good funds model Ability for the payer to choose the currency of their choice for payment instruction and funding Flexible options for foreign exchange that meet a variety of payers business needs Ability to eliminate the need to maintain accounts in every currency in which a payer transacts business Ability to support payers who don t want to manage their own foreign exchange Allow vendors to choose to be paid in their preferred currencies 13

variety of payers business needs Ability to eliminate the need to maintain accounts in every currency in which a payer transacts business

14 3. Ease in Payment Processing Payment Instruction File Delivered 1 6 Remittance Delivery Web $ Payer Vendor Calculate FX Funding & Credit Confirm & Collect Funding Execute Currency Conversion (FX Trade) Initiate Credit $ Proprietary AR File 14

Calculate FX Funding & Credit Confirm & Collect Funding

15 3. Ease in Payment Processing (cont d) Payment Instruction File Delivered FX FUNDING 1 6 Remittance Delivery Web $ Payer Vendor Calculate FX Funding & Credit Confirm & Collect Funding Execute Currency Conversion (FX Trade) Initiate Credit $ Proprietary AR File 15

4 5 Calculate FX Funding & Credit Confirm & Collect Funding Execute

16 4. Payment Funding Options Ability for the Payer to choose either: Fixed credit payments, where vendor receives amount specified and payer funds whatever amount is needed to make sure the vendor receives that amount Fixed debit payments, where payer pays a specific amount and the vendor receives whatever that amount converts to when FX is required 16

needed to make sure the vendor receives that amount Fixed debit payments, where payer

17 5. Proven On-boarding Success Enroll in Paymode-X Determine File Transmission Protocol Verify Payment File Includes Required Data Elements Test Payment File UAT/Go Live PAYER IMPLEMENTATION Payment File Received Test Transmission Method Create Customized Data Parser Perform Paymode-X Training Updated Vendor History File Dividends Onsite Levers to Adoption Confirmed Vendor Enrollment Campaign Start Earning Dividends DRIVING VENDOR ADOPTION Paymode-X Segmentation Round 2 Segmentation Review Complete Marketing Materials Approved Activation Reporting Begins Zero Fee Vendor Communication 17

Training Updated Vendor History File Dividends Onsite Levers to Adoption Confirmed Vendor Enrollment Campaign Start Earning Dividends DRIVING

18 6. Intuitive Vendor Enrollment Drive address validation and bank account capture/validation based on country 18

19 6. Intuitive Vendor Enrollment Country determines type of bank identifiers used and currency options available User prompted in a step by step fashion Bank name and address displayed as reference 19

options available User prompted in a step by step

20 7. Secure Global Payment Model 3-STEP AUTHENTICATION + REGULATORY CHECK Company (Name & Address) Bank Account Regulatory Check Repeats When Information Changes 20

21 7. Secure Global Payment Model Validation of bank identifiers, including IBANs and SWIFT BICs 21

22 8. Visibility into Details of Payments Made 22

23 8. Visibility into Details of Payments Made 23

24 Concluding Remarks Automating Payables delivers concrete cash, cost and efficiency benefits Leveraging a global settlement network eliminates inadvertent keying errors and the need for individual payers to manage and house supplier payment information Leveraging a global settlement network ensures that you stay current on global EFT payment formats and regulations without requiring the expertise to manage it in-house Flexibility around instruction, funding and credit currencies satisfy both payer and vendor Access to the same reporting data by both payer and vendor ensures the same visibility into the payment process To be successful, it has to be a win-win for both payer and vendor, no matter where they conduct business 24

25 Questions? 25

26 Contact Information Donna Sawyer Paymode-X Product Manager Bottomline Technologies is REVOLUTIONIZING payment and invoice automation 26

Paymode-X: Your Best Option for Order-to-Pay Automation

Paymode-X: The Largest Business-to-Business Payments and Invoicing Network Paymode-X: Your Best Option for Order-to-Pay Automation Why Automate Your Order-to-Pay Process? Order-to-Pay automation frees