U.S. B2B Payments: State of the Market

Table of Contents

1. INTRODUCTION

2. THE B2B MARKET

3. B2B GROWTH FORECAST

4. OVERVIEW OF B2B PAYMENTS

• SIZE DOES MATTER
  • Small and mid-sized companies
  • Murphy' s Law
  • Taking a page from manufacturing

5. HOW BUSINESSES COMMUNICATE PAYMENT DATA TO PARTNERS

• EDI (Electronic Data Interchange)
• Financial EDI (FEDI)
• eXtensible Markup Language

6. PAYMENT PROCESSORS

• FEDWIRE
  • Fedwire Funds Service
• CLEARING HOUSE INTERBANK PAYMENTS SYSTEM (CHIPS)
• AUTOMATED CLEARING HOUSE (ACH)
  • The Automated Clearing House (ACH) Network
• SWIFT
  • SCORE
  • The SWIFT MA-CUG Model

7. LEADING PAYMENTS BANKS

• Big Banks on Campus
• Bank of America
• Bank of New York
• Citibank
• Deutsche Bank
• JPMorgan Chase
• HSBC (The Hong Kong and Shanghai Banking Corporation Limited)
• Wachovia

8. OPPORTUNITIES AND THREATS OF US MARKET

• OPPORTUNITIES FOR BANKS:
• THREATS TO BANKS:
• OPPORTUNITIES FOR BANK CUSTOMERS:
• THREATS TO BANK CUSTOMERS:

9. CONCLUSION

List of Exhibits

• FIGURE 1: CHECK CLEARING - PRIVATE AND FEDERAL RESERVE (MILLIONS OF CHECKS)
• FIGURE 2: - US PAYMENTS PROCESSED IN MILLIONS OF TRANSACTIONS
• FIGURE 3: - PRIVATE VERSUS FEDERAL RESERVE CLEARING (MILLION TRANSACTIONS)
• FIGURE 4: - VALUE BY REGION (TRANSACTIONS)
• FIGURE 5: VALUE BY REGION - (USD BILLIONS)
• FIGURE 6: TYPICAL ORDER TO PAYMENT B2B FLOW DIAGRAM
• FIGURE 7: EDI FLOW DIAGRAM
• FIGURE 8: FLOW DIAGRAM FOR FINANCIAL ED
• FIGURE 9: ILLUSTRATES THE CHIPS PAYMENT PROCESS
• FIGURE 10: THE ACH PROCESS
• FIGURE 11: SWIFTNET TRAFFIC FOR 2006
• FIGURE 12: SCORE MODEL
• FIGURE 13: THE MA-CUG MODEL FOR CORPORATIONS COMMUNICATING WITH SWIFT