Engaging Consumers Through Mobile Utility Payment Conference October 23, 2014 Brandon Goldman Strategic Partnerships Laurie Foreman Manager, Customer Service

1 2 3 Why are mobile payments important? What do consumers want? Agenda 1 Why are mobile payments important? 2 What do consumers want? 3 Arlington Water’s mobile approach

You have a hard job 9 minutes Average time In past 12 months, how much time did you spend interacting with a representative of your electricity provider? (over the phone, e-mail, home, in- store). Source: Accenture end-consumer observatory 2012

With consumers, you play on their turf

Mobile is platform shift Stunning rise in mobile traffic

To stay relevant, you must go to the customer

Mobile Payments Growth PayPal is a good barometer

Mobile Payments in the Mainstream 14% Mobile in-store transactions Mobile payments account for 14% of in-store transactions in the US

Mobile payment catalysts?

16 Billion $4.3 Trillion 10 bills per month Bill Payment Market 16 Billion $4.3 Trillion 10 bills per month

State of Bill Payment Online dominates but still too much mail and in-person Online 7,485 46% Mail 3,428 21% Direct Debit 2,750 17% In-Person 1,519 9% Phone 666 4% Mobile 493 3% Total 16,340 100% Source: How Americans Pay Bills, Aite Group Sept 2013

Consumer’s financial state of mind

This doesn’t solve the problem

Consumers moving away from bank bill pay Banks going down Billers going up Why banks are loosing ground: Their products aren’t easy to use Bill presentment is clunky at best Can’t pay how I want to pay Source: How Americans Pay Bills, Aite Group Sept 2013

70% of Millennials say that in 5 years, the way we pay for things will be totally different Banks going down Billers going up Why banks are loosing ground: Their products aren’t easy to use Bill presentment is clunky at best Can’t pay how I want to pay Source: Millennial Disruption Index, 2014

Mobile Bill Payment Growth Mobile bill pay poised to be next major consumer channel Source: Sixth Annual Billing Household Survey, Fiserv Inc., 2013

Why consumers like mobile bill payment Source: Sixth Annual Billing Household Survey, Fiserv Inc., 2013

Mobile is more than payments Bill reminders Statement delivery & storage Communications & marketing

Build Buy Partner Mobile payment options? We’re going to build our own from scratch We’re going to buy software and customize We’re going partner with a mobile company

City of Arlington, TX Water Utilities Serves over 380,000 people with safe and clean water in Arlington, TX Primarily residential and small commercial customer base Home of the Cowboys and Rangers

Arlington’s Business Motivations Improve customer experience Mobile is the future Cost savings

Partnership Minimized Risk City of Arlington, TX

In-Depth Money and Bills Everything at a Glance Bills to Pay Notifications & Alerts

Account Details Account info updated daily Integrated payment City of Arlington, TX Account info updated daily Integrated payment Bill history & PDFs Enhanced content

Marketing & Comms

Marketing & Comms

Mobile Results 50X Increase in number of Arlington customers using Check over 8 weeks # of Arlington Customers

Final questions What’s your company’s mobile payment strategy? How can you use mobile billing and payments to achieve marketing and communications goals? Who’s turf are you going to play on?

Thank You! Brandon Goldman Strategic Partnerships Brandon_goldman@intuit.co m Laurie Foreman Manager, Customer Service laurie.foreman@arlingtontx.gov Utility Payment Conference October 23, 2014