Embracing Mobile Commerce:How Accenture and Paydiant Help Companies Move Beyond Payments

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As smartphones become the norm, more people want to use their phones to make their daily lives more convenient in many ways. One of the most appealing functionalities is to pay for goods and services. But that’s true only if paying via the phone offers benefits beyond those provided by a simple swipe of the credit card. Working together, Accenture and Paydiant can help companies adopt a mobile commerce solution that delivers a more compelling overall experience that generates far greater value for customers and merchants alike.

For mobile devices to become a true instrument for commerce, they must go beyond simply recreating the traditional credit card payment experience. It must deliver an entirely new customer experience that can provide additional value to both buyers and sellers.

For example, an especially important differentiator for today’s leading mobile payment solutions is tight integration with loyalty and offer schemes—something Starbucks recognized when developing its wildly successful mobile payment app. The mobile wallet embedded in Starbucks’ app enables customers to pay for orders, earn and track loyalty rewards, and access exclusive sales and offers. This clearly resonates strongly with customers: The company says mobile [app] transactions now account for 20 percent of all in-store sales—almost 9 million mobile transactions a week.1

Starbucks’ success is just one example of the strong demand for mobile payments among consumers—demand that Accenture is uniquely positioned to help companies fulfill. Through our global alliance with mobile wallet platform provider Paydiant, Accenture can help companies design, build, and integrate comprehensive mobile commerce solutions that can deliver a leading edge customer experience while boosting customer loyalty and overall sales.

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While payment is the culmination of effective customer engagement, Paydiant’s cloud-based solution goes well beyond payments. It sits at the center of a mobile commerce ecosystem of consumers, retailers, financial institutions, and service providers, which enables Paydiant to address all the key elements of a purchase transaction to deliver a rewarding customer experience.

Consider a typical scenario: Jim is checking out at the Main Street location of his favorite retailer. The Paydiant solution knows the exact store Jim is visiting and recommends Jim use a particular card because it will generate the most rewards for his purchase there. It also reviews Jim’s loyalty accounts and gift cards to find any points that Jim could use toward his purchase, scans the retailer’s current coupons Jim could redeem, and presents any offers the retailer has that might interest Jim based on his past purchase behavior. Jim can see all of the system’s smart recommendations on his mobile phone screen and accept or reject them.

Or how about the familiar scenario of filling the car with gasoline? As Jim’s car approaches a gas station, the Paydiant solution, through Jim’s mobile phone, can tell him which pumps are available and asks him which he would like to use, which grade of gas he prefers, and how much he wants to spend. Jim answers and the pump is unlocked and set to the grade and amount he selected. When he’s finished, he clicks the “pay” button on his phone screen and drives away, a truly seamless experience.

These scenarios Accenture and Paydiant can make possible are much richer and more compelling for customers than the one offered by a simple swipe of a credit card. Furthermore, Paydiant’s solution helps turn the payment process on its head by putting total control in the hands of the mobile apps’ end user. And it can be used in a wide variety of settings, from retail stores and restaurants to gas stations and ATMs.

One of the most visible examples of the strength of Paydiant’s solution is its use by Merchant Customer Exchange (MCX), a retailer consortium representing over 20 percent of U.S. retailer payment volume across the big-box, convenience, pharmacy, fuel, grocery, dining, specialty retail, and travel categories. Paydiant’s solution is at the heart of MCX’s mobile payment network, CurrentCTM. The CurrentCTM mobile wallet app gives consumers a simpler, faster, and secure way to check out at their favorite merchants, as well as access to innovative features and benefits, such as merchant loyalty programs, promotions, and instant coupon savings at the point of sale. When it’s fully scaled, CurrentCTM will enable consumers to shop with a single app at more than 110,000 merchant locations across the country.

MCX members also are free to create their own branded mobile wallet on the Paydiant platform, and that wallet would be accepted by other MCX members as well as merchants outside of MCX that use the Paydiant service. This includes Subway®, the world’s largest restaurant chain, whose mobile wallet is powered by Paydiant. Subway’s app is integrated with its Subway rewards program and enables the quick-service retailer’s customers to use the app to pay for orders in stores and also remotely place and pay for orders, then just stop into the Subway® location to pick up their food. Such efficiency is key to helping Subway® move more customers quickly through the store during the lunch and dinner rushes.

With Paydiant’s acquisition by PayPal, merchants and banks now enjoy the advantage of having access to PayPal’s experience in the payments space, large customer base and global reach.

PAYDIANT: Going Far Beyond Payments

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The ever-growing number of companies using Paydiant to underpin their mobile commerce efforts speaks to the platform’s effectiveness. However, when companies consider adopting a solution such as Paydiant, they often can benefit from additional, complementary services that enable them to fully embed the solution into their operations. That’s where Accenture’s experience and knowledge can help. As a preferred Paydiant alliance partner for systems Integration and mobile app development services, Accenture brings to the table a wide range of technology and consulting capabilities that can enable companies to not only more quickly adopt and deploy a mobile wallet, but also leverage the wallet to help deliver more value-added services to customers.

There are several key ways in which Accenture can help companies seeking to join the Paydiant ecosystem. For example, before rolling out a mobile wallet, Accenture can work with a company to define its mobile commerce market strategy. This helps the company understand what it hopes to accomplish with its mobile wallet, how it will be used, the technology and process investments required, and the metrics needed to measure the wallet’s performance.

Accenture also can bring to bear its considerable experience to create custom-branded mobile wallet apps using the Paydiant platform, and the associated testing and maintenance that apps entail. Accenture adopts a unified approach to develop mobile apps, and a wide range of tools, assets and processes to industrialize and accelerate app delivery. This helps ensure apps are delivered and deployed more quickly, and at a consistently high quality. Furthermore Accenture helps align the experience delivered on the mobile channel to the company’s other digital channel to provide a cohesive view for end customers.

One of the biggest benefits of Accenture’s involvement is our extensive experience in systems integration, which enables us to help make the Paydiant solution an effective and integral part of a company’s technology environment including integration with legacy systems. With Accenture playing the lead role in integrating Paydiant with all relevant front- and back-office systems, companies can be confident the Paydiant solution can work seamlessly across the enterprise.

Finally, when a company uses Accenture to help implement the Paydiant mobile wallet, it gains an additional benefit in the form of enhanced analytics for the Paydiant solution. Accenture integrates two of its industry-leading analytics solutions that help companies offer location-based targeted promotions, offers, loyalty programs and other value-added services. The first is Accenture Customer Insight (ACI), which is based on Accenture’s customer analytics, technologies, data processes and services. ACI provides a framework to help businesses achieve an integrated approach to deriving meaningful customer insight from the data generated by the mobile wallet (as well as

other assets across all dimensions of the marketing and merchandising cycles). The second is the Accenture Recommendation Engine (ARE), which uses a library of machine-learning algorithms to help deliver unique and insightful recommendations to customers, at scale and in real time, based on predefined business and merchandising rules. For example, ARE can suggest which offer to present to customers based on analytics performed on buyer identification data at the point of interaction, such as when they enter a store’s perimeter or approach a restaurant. By integrating ACI and ARE into the Paydiant platform, Accenture expands Paydiant’s scope and strengthens the solution’s ability to help deliver a rewarding customer experience.

ACCENTURE: Accenture: Infusing Technology and Analytics Experience

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Mobile payments is not an end in itself but, rather, part of a broader series of actions that customers take when seeking out and buying a particular product or service. Indeed, mobile payment is only a small part of mobile commerce. It comes at the end of a consumer’s journey to making a purchase—a journey that includes myriad types of data and multiple potential touch points (both online and in the real world). Mobile payment solutions that are built on this premise are better positioned to gain widespread adoption among consumers and merchants.

With its ecosystem-based, value-centric approach to mobile payments, Paydiant has become a leading solution for companies seeking to capitalize on the surging consumer demand for mobile payments. When complemented with systems integration, app development, and analytics capabilities from Accenture, the Paydiant ecosystem can become an integral part of a company’s drive to put mobility at the core of its business.

By bringing together their individual industry-leading strengths, Accenture and Paydiant can help companies create a seamless, compelling mobile commerce experience that can engage customers, strengthen customer satisfaction and loyalty, and increase sales.

Accelerating the Drive Toward Mobility

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Copyright © 2015 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or further details on any matters referred to, please contact your Accenture representative.

References1 Starbucks Mobile Order & Pay Factsheet,

September 2015 https://news.starbucks.com/uploads/documents/Fact_Sheet_-_Mobile_Order__Pay_National_Launch_2015.pdf

This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks.

Contacts

If you would like to hear more about Accenture’s views on this topic or would like to discuss how you can address the strategic questions highlighted in this paper, please contact:

Tim Summers Managing Director timothy.summers@accenture.com

Greg Riché Senior Manager gregory.riche@accenture.com

Richard Meszaros Senior Manager richard.t.meszaros@accenture.com

About Accenture Digital

Accenture Digital, comprised of Accenture Analytics, Accenture Interactive and Accenture Mobility, offers a comprehensive portfolio of business and technology services across digital marketing, mobility and analytics. From developing digital strategies to implementing digital technologies and running digital processes on their behalf, Accenture Digital helps clients leverage connected and mobile devices; extract insights from data using analytics; and enrich endcustomer experiences and interactions, delivering tangible results from the virtual world and driving growth. To learn more about Accenture Digital, follow us @AccentureDigi and visit www.accenture.com/digital.

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with more than 358,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$31.0 billion for the fiscal year ended Aug. 31, 2015. Its home page is www.accenture.com.

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