Presentation Transcript

1. Discover® Opportunities 2014 Sandy NeddoffGeneral Manager US Acquirer Relations
2. Discover’s Continued Growth Largest global network1 $311B in network volume 47% increasein 30 day active merchants since 20062 Operating in 185 countries 25MM merchants accepting across the globe Access to more than one million ATMS globally Retail Banking and Research, The Global Payments Cards Market, August 2013 Switched to open acquirer model in 2006 2
3. Discover Financial Services Global Acceptance Footprint EMEA 2,600,000 North America 9,600,000 Asia Pacific 9,600,000 Latin America 3,700,000 Accepted at over 1 million ATMs Operates in over 185 countries / territories(1) Total Merchant Locations 25,500,000(2) Notes: (1) The map denotes countries or territories with transactional activity in the last year for Diners Club and/or Discover. (2) Total reflects the number of merchant outlets that accept one or more card brands through December 2013.
4. Maximize Sales by Enabling all of Discover’s Global Brands Help your merchants increase incremental spend. Encourage them to accept our partners $126 billion was spent in the US by International travelers1 the Average spend is approx. $1,900 and stay an average of 17 days.1 U.S. Department of Commerce 2013
5. Discover Delivers - Millions of Loyal, High-Spending Cardholders Large & Loyal Customer Base2 >40MM+ cardmembers3 Longest cardmember retention 1 in 4 households #1 in Customer Loyalty Award for 18 Years in a row1 Discover is the leading brand in their category for customer satisfaction and commitment. Sources: 2013 Brand Engagement Index Report Cardmember Information: Internal Data, MRI/Simmons/TNS 2013 State of the Card Market Nilson, January 2014 2013 Brand Keys Customer Loyalty Engagement Index Report
6. Discover in the News “This reinforces our desire to work with Discover as it shows that you guys are thinking big, taking no prisoners, and doing what’s needed to win. Now that’s a partner I want to work with!” – Large U.S. Acquirer “The first mobile payments network that spans both millions of users and millions of locations” – Wall Street Journal “I think it will pay big time to discover Discover” – Fox Business “Another pretty clever example of Discover Network in action and further evidence of Discover’s commitment to using its network as a catalyst to innovative payments.” – PYMNTS.com “Given the size of the network, the opportunity that is in from of Ariba and Discover is tremendous.” – Payables Place “This sets a new paradigm for payments: B2B finance – Aite Group “Discover’s Direct Mail Campaign Brings Fresh Positioning to Credit Card, Connects with Prospects in New Ways” – Yahoo “An established payments powerhouse reengineer a popular platform by listening to the consumer.” – PYMNTS.com “Discover IT is the talk of the town.“ – NerdWallet 6
7. Overcoming Merchant Objections Sources: 1) The Consumer Payment Strategies Research Program, 2013; 2) TNS’ Consumer Payment Strategies Program Rewards Card Report, 2013; 3) C&R Research, 2013
8. On Us Pricing Program Overview Offer Timeframe Offer Details Eligible Merchants No fees on Discover volume For a full 12 months Inactive with Discover for more than 6 months Non-registered Never active Now through December 31, 2014!
9. iPayment Enrollment Process If you mention the On Us Program with merchants during the sales process, please make sure they are aware of the eligibility requirement: No Discover transactions in the past 6 months.
10. iPayment Enrollment Process: Eligibility Qualified Ineligible Merchant notified via special insert in iPayment welcome kit BAU iPayment experience Merchants are none the wiser
11. iPayment Enrollment Process: Welcome Kit Insert
12. Discover Marketing Welcome Kit Marketing Discover sends each enrolled merchant a Welcome Kit Includes program information, signage, pens Inactive merchants receive targeted marketing through their 12 months in the program to encourage activation
13. Common Merchant Questions & Answers Answers Questions Your rates will be comparable to Visa/MC with the same per transaction fee I’m offering for other card types. What will my rate be after the first 12 months? You are not under contract with Discover, only iPayment. To receive the free Discover processing for 12 months, however, you must stay with iPayment during this period. How long am I under contract with Discover? This is a great offer and there’s no catch. Discover wants to ensure their card holders can use their cards at more places. This introductory offer helps promote that goal. This seems too good to be true. What am I missing?
14. Program Resources www.discoveronus.com/acquirer
15. On Us Program WINS! Program To Date Results Enrolled: 11,227 Active: 1,845 Great job!
16. Leverage promotions to assist in securing acceptance and drive incremental volume in key spend categories. Discover Has Powerful Promotions to Grow Merchant Sales
17. Free Signage and Supplies for Your Merchants Discover offers free signage and supplies; easy online ordering. For quick access establish a free link on your customer service site www.DiscoverSignage.com Window Decals Web Banners Check Presenters Store Hours Decal
18. Promote – So You Can Offer More Opportunities for Merchants Cashier Signage Cardholder Signage Window Signage An all-in-one decal kit; kit includes decals for your merchants cashiers, cardholder display and door/window
19. Robust Sales Rep Incentive Program to Encourage Enablement and Merchant Awareness Point-based system will reward sales representatives for successfully selling and testing Discover at the Merchant level Reps encouraged to have Discover awareness conversation and run Discover test transactions to earn points Points can be redeemed for hundreds of valuable items such as gift cards, electronics, housewares, jewelry and sporting event tickets
20. Partnering at a Local Level Provides Additional Assistance Develop partnerships with Discover Local Market Reps: Access to additional marketing opportunities and special events Tools for sales reps to increase sales, merchant awareness and Discover transaction volume Personal, relevant industry consultation and free signage and supplies Long Island Detroit Manhattan Salt Lake City Cleveland Chicago Philadelphia Denver Columbus San Francisco Las Vegas Baltimore St. Louis Alexandria Cincinnati Los Angeles Atlanta San Diego Austin Hawaii Miami
21. What Merchants are Saying About Discover DISCOVER THANKSYOU 41% FOR CONTRIBUTING TO OUR SUCCESS 41% of Discover primary Card members consider Discover their primary card 1 33% NEW MERCHANT REGISTRATIONS UP “We have the opportunity to impact folks directly and give them something that improves their quality of life. People come here for that one-on-one treatment that we’re known for. There’s that loyalty component with Discover customers, so it’s very important for Dunwoody Wellness to be aligned with Discover and have that loyalty as part of our concept. Think about what percentage of your revenue comes from Discover payments. Our business is built on clients having a good experience and coming back over and over.” Vlad - Owner of Dunwoody Wellness Center 33% of Discover primary cardmembers whose card was rejected have a lower opinion of a merchant2 “There was a big demand for it. We cater to a lot of travelers who prefer to pay with Discover. They’re always grateful when they hear we accept it. I think Discover is different because their members get something in return. As a small business owner, it’s nice to see that Discover cardmembers often spend more than other customers do.” Carolyn – Owner of Sciandrone’s Classic Touch
22. Thank you! Stop by our booth, drop off your business card to qualify for our drawing! BOSE® QuietComfort® 15 Noise Cancelling® Headphones Samsung Galaxy Tab ® 3 10.1

23. Let’s Put the Discover Difference to Work For You! – Thanks!