1. assessment of the payments industry’s readiness to ignite or adapt to
The only quantitative
assessment of the payments
industry’s readiness
to ignite or adapt to
innovation and change
Proprietary & Confidential. Not for Distribution without express written permission
14 September September 2018

2. The Innovation Readiness Index | Scope & Purpose
There is currently no consistent, reliable benchmark that measures how companies are addressing innovation in the payments space.
The rapid evolution of technology is making it critically important to understand how well certain segments are performing as well as how specific companies compare within each segment.
Scope
US Retail Payments
Purpose
Assess Each Player’s Readiness to Ignite or Adapt to the Innovative Changes in Payments (vs. each other and vs. other segments)
Proprietary & Confidential. Not for Distribution without express written permission
14 September September 2018

3. The Innovation Readiness Index | Vision
Our vision is to be THE brand index for payments innovation – a credible, reliable ranking of companies.
It will help individual companies identify their strengths and weaknesses vs. the competition.
It will signal where they need to improve their external perception or where they can leverage brand strengths.
It will demonstrate where certain segments fall short vs. other segments and potential areas they can leverage to move the needle forward.
Proprietary & Confidential. Not for Distribution without express written permission
14 September September 2018

4. The Innovation Readiness Index | How it Works
Methodology
With development and guidance from leading academics and industry thought leaders, the Innovation Readiness Index leverages proven methodologies for measuring innovation strategies and execution. Its structure ensures that it is not biased towards one industry segment, enables rich external evaluation, and is uniquely distinctive within the payments industry.
What’s In It?
Objective performance metric derived from multiple data points including
Professional payment industry perceptions of company performance using survey methodology from PYMNTS subscriber base
Patent strength, using competitive impact
Financial metrics and performance
Company investments, partnerships, active initiatives
Categories covering 100 companies
Top companies from across the payments value chain including:
Networks
Issuers
Money Transmitters
POS Enablers
Commerce Platforms
Security
Stored Value
Processors
Rewards & Loyalty
Proprietary & Confidential. Not for Distribution without express written permission
14 September September 2018

5. The Innovation Readiness Index | Components
“The Index” – multiple, objective data elements combined to determine the value for each company based on a rigorous methodology.
Self-evaluation survey – an in-depth analysis of what drives innovation within each company and the ability to create value within the ecosystem. Categories include:
Role of Innovation
Value Proposition
Sources of Value
Monetization model
Ignition strategy
Purpose of each component
The Index is designed to give all companies a “starting point” and reflect where they stand today with regards to driving innovation. In addition, it will also reflect how individual segments compare to each other – For example are Rewards companies leading the way vs. Processors?
The self-evaluation survey is a deep dive into the “what” of a particular company. It provides a richness of the process, focus and value captured by innovation. Perhaps more importantly, it will allow you to compare how your institution handles innovation vs. your peers or other companies within the ecosystem by indexing across all other participating entities.
Proprietary & Confidential. Not for Distribution without express written permission
14 September September 2018

6. The Innovation Readiness Index | Program Architects
David Evans
Founder, Market Platform Dynamics
Visiting professor at University College London & the University of Chicago
Ph.D. in Economics, University of Chicago and Author of Paying with Plastic
Karen Webster
CEO, Market Platform Dynamics and President, PYMNTS.com
One of the world’s leading experts on emerging payments and commerce
Masters Degree in Marketing from John’s Hopkins University
Gloria Colgan
Recognized leader in the successful design and deployment of new products and emerging payment strategies worldwide
Over 20yrs experience of working with financial institutions and retail partners
Managing Director, Market Platform Dynamics
MBA in Finance from the University of Chicago Booth School of Business
Josh Lerner
Jacob H. Schiff Professor of Investment Banking at Harvard Business School, and head of the Entrepreneurial Management unit
Ph.D. in Economics from Harvard
Author, The Architecture of Innovation, The Venture Capital Cycle, The Money of Invention, and Boulevard of Broken Dreams
Proprietary & Confidential. Not for Distribution without express written permission
14 September September 2018

7. The Innovation Readiness Index | The Output
Proprietary Report & Analytic Platform
Participating companies receive access to a detailed annual report with summary findings, company and industry rankings/benchmarking based on:
Quantitative index
Perception of the company based on feedback from PYMNTS.com subscribers
Patent strength
Financial metrics
Four additional metrics that combined comprise “the index”
Self evaluation score indexed vs. competitors and vs. other payment segments
Robust Analytic Platform
PYMNTS will create and host a robust analytic platform which allows each company to cross-tab and analyze responses for categories in which they participate. The data contained within the platform will allow participating companies to benchmark themselves against the competition across a number of dimensions including external perception scores, patent value and strength, innovation investment history, org structure and culture, financial commitment, strategic focus, degree to which the company has influence on the rest of the ecosystem, asset value and innovation rigor
Proprietary & Confidential. Not for Distribution without express written permission
14 September September 2018

8. The Innovation Readiness Index | Example
Example report – Patent Information
Bubble Size:
Patent Asset Index™ A
Client E B
Competitive Impact
Quality D C F H G I
Quantity
Portfolio Size
Proprietary & Confidential. Not for Distribution without express written permission
14 September September 2018

9. The Innovation Readiness Index | Example
Example report – Evolution of patent portfolios over time
Bubble Size:
Patent Asset Index™
Company B
Competitive Impact
Quality
Company A
Quantity
Portfolio Size
Proprietary & Confidential. Not for Distribution without express written permission
14 September September 2018

10. The Innovation Readiness Index | Participation
Complete access:
Participation in robust self-evaluation. Results from self-evaluation indexed to other participants and included with annual report and analytic platform, plus critical patent insights. In addition, company receives quarterly updates, including key patent filings, investment activity and new product introductions.
Baseline:
Self evaluation and final report
+ Quarterly reports available
+ Analytic Platform available
Proprietary & Confidential. Not for Distribution without express written permission
14 September September 2018