What changed in this filing

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Item 1. Business

2021-02-25 compared with 2020-02-27 · 134 added, 170 removed, 284 unchanged (52% of the section changed)

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On July 24, 2007, we changed our corporate name from “Transaction Systems Architects, Inc.” to “ACI Worldwide, Inc.” We have been marketing our products and services under the ACI Worldwide brand since 1993 and have gained significant market recognition under this brand name.

We develop, market, install, and support a broad line of software products and solutions primarily focused on facilitating real-time electronic payments.

Our payment capabilities, technologies, and solutions are marketed under the brand name Universal Payments ® , or “UP ® ,” which describes the breadth and depth of ACI’s product offerings.

UP defines ACI’s enterprise or “universal” payments capabilities targeting any channel, any network, and any payment type.

ACI's UP solutions empower customers to regain control, choice, and flexibility in today’s complex payments environment, get to market more quickly, and reduce operational costs.

These products and services are used globally by banks, financial intermediaries, merchants and billers, such as third-party electronic payment processors, payment associations, switch interchanges and a wide range of transaction-generating endpoints, including automated teller machines (“ATM”), merchant point-of-sale (“POS”) terminals, bank branches, mobile phones, tablets, corporations, and internet commerce sites.

The authentication, authorization, switching, settlement, fraud-checking, and reconciliation of electronic payments is a complex activity due to the large number of locations and variety of sources from which transactions can be generated, the large number of participants in the market, high transaction volumes, geographically dispersed networks, differing types of authorization, and varied reporting requirements.

We develop, market, install, and support a broad line of software products and solutions primarily focused on facilitating real-time digital payments.

Our payment capabilities, technologies, and solutions are marketed under the ACI Worldwide brand name.

ACI’s enterprise payments capabilities target any channel, any network, and any payment type and our solutions empower customers to regain control, choice, and flexibility in today’s complex payments environment, get to market more quickly, and reduce operational costs.

ACI's products and services are used globally by banks, intermediaries, merchants and billers, such as third-party digital payment processors, payment associations, switch interchanges and a wide range of transaction-generating endpoints, including automated teller machines (“ATM”), merchant point-of-sale (“POS”) terminals, bank branches, mobile phones, tablets, corporations, and internet commerce sites.

The authentication, authorization, switching, settlement, fraud-checking, and reconciliation of digital payments is a complex activity due to the large number of locations and variety of sources from which transactions can be generated, the large number of participants in the market, high transaction volumes, geographically dispersed networks, differing types of authorization, and varied reporting requirements.

These activities are typically performed online and are conducted 24 hours a day, seven days a week.

ACI combines a global perspective with local presence to tailor electronic payment solutions for our customers.

We believe that we have one of the most diverse and robust electronic payment product portfolios in the industry with application software spanning the entire payments value chain.

We also believe that our financial performance has been attributable to our ability to design and deliver quality products and solutions coupled with our ability to identify and successfully consummate and integrate strategic acquisitions.

ACI combines a global perspective with local presence to tailor digital payment solutions for our customers.

We believe that we have one of the most diverse and robust digital payment product portfolios in the industry with application software spanning the entire payments value chain.

Fiscal 2019 Acquisition

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(collectively referred to as "Speedpay").

The combination of the Company and Speedpay bill pay solutions serves more than 4,000 customers across the U.S., bringing expanded reach in existing and complementary market segments such as consumer finance, insurance, healthcare, higher education, utilities, government, and mortgage.

The combination of the Company and Speedpay's bill pay solutions serve more than 4,000 customers across the United States, bringing expanded reach in existing and complementary market segments such as consumer finance, insurance, healthcare, higher education, utilities, government, and mortgage.

The acquisition of Speedpay increases the scale of our ACI On Demand ("AOD") platform business and allows the acceleration of platform innovation.

Target Markets

ACI’s comprehensive electronic payment solutions serve four key markets:

ACI’s comprehensive digital payment solutions serve three key markets:

Banks and Intermediaries

ACI provides payment solutions to large and mid-size banks globally for both retail banking, digital, and other payment services.

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In addition, we enable banks to meet the requirements of different real-time payments schemes and to quickly create differentiated products to meet consumer, business, and merchant demands.

Financial intermediaries

ACI’s payment solutions support financial intermediaries, such as processors, networks, payment service providers (“PSPs”), and new financial technology entrants.

ACI’s payment solutions support intermediaries, such as processors, networks, payment service providers (“PSPs”), and new financial technology entrants.

We offer these customers scalable solutions that strategically position them to innovate and achieve growth and cost efficiency, while protecting them against fraud.

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Our solutions enable these customers to support a wide range of payment options and provide a convenient consumer payments experience that drives consumer loyalty and increases revenue.

ACI’s UP ® solutions span the payments ecosystem to support the electronic payment needs of banks, intermediaries, merchants and billers.

Our six strategic solution areas include the following:

Retail Payments

ACI offers comprehensive consumer payment solutions ranging from core payment engines to back-office support that enable banks and financial intermediaries to compete effectively in today’s real-time, open payments ecosystem.

UP Retail Payments ™ solution enables banks and financial intermediaries to accept, authorize, route and secure payment transactions.

Using the orchestration capabilities of UP Framework ™ , this solution combines legacy technology with the modern, service-oriented architecture (SOA)-enabled UP BASE24-eps ® , protecting customers’ existing investment while enabling them to move to a real-time, open environment.

Customers have the flexibility to operate this solution on a range of hardware options, including x86/Linux, IBM System z, IBM System p, HP NonStop and Oracle Solaris servers.

This solution drives innovation and increases customer loyalty by delivering choice and consistency across channels.

ACI Card and Merchant Management ™ includes comprehensive credit, debit, smart card and prepaid card issuance and management;

end-to-end merchant account management and settlement;

and operation of complex settlement environments through a flexible system designed to support changing business models.

With proven scalability and interoperability with ACI’s other payment offerings, this suite allows banks to introduce new products to their consumer segments quickly, across different markets, domestically and internationally.

ACI is a global software company that provides mission-critical real-time payment solutions to corporations.

Customers use our proven, scalable, and secure solutions to process and manage digital payments, enable omni-commerce payments, present and process bill payments, and manage fraud and risk.

We combine our global footprint with local presence to drive the real-time digital transformation of payments and commerce.

Our strategic solution areas include the following:

Issuing & Acquiring

ACI offers comprehensive consumer payment solutions ranging from core payment engines to back-office support that enable banks and intermediaries to compete effectively in today’s real-time, open payments ecosystem.

ACI ® Acquiring ™ is a merchant management system that helps acquirers offer merchants capabilities to deliver digital innovation, improve fraud prevention, and reduce interchange fees.

ACI Issuing ™ is a digital payments issuing solution that helps issuers accelerate innovation, give customers new payment offerings and deliver cutting-edge security, with flexible cloud-based or on-premise deployments.

ACI Enterprise Payments Platform ™ is a market-leading technology that provides payment players global payment processing and orchestration capabilities for all digital payments, including high- and low-value payments, real-time and alternative payments, and cards.

Real-Time Payments

ACI supports both low and high-value, real-time payment processing for banks and financial intermediaries globally, ensuring multi-bank, multi-currency and 24x7 payment processing capabilities, as well as complete and ongoing regulatory compliance.

UP Real-Time Payments ™ solution is the only global solution that allows banks to address their RTGS (Real-Time Gross Settlement), SWIFT messaging, automated clearing house ("ACH") and real-time faster payments needs with a single, universal offering.

The solution delivers accelerated time to market with improved management of cash flow;

payments security and fraud detection capabilities;

simplified connectivity to new payment types and transparency for customers in tracking their payments.

It supports several major schemes globally, including but not limited to EBA and ECB in Europe;

Equens in the Netherlands, Germany, and Italy;

GIRO in Hungary;

UPI in India;

FAST in Singapore;

ITMX in Thailand;

RPP in Malaysia;

NPP in Australia;

and Zelle and TCH in the U.S.

UP Immediate Payments ™ solution enables banks and PSPs to meet multiple real-time payment scheme requirements globally and to quickly create differentiated products to address consumer, business, and merchant demands.

The solution provides gateway connectivity to any live, real-time payments scheme around the world and can serve as a modern, real-time hub.

The cloud solution speeds time to market through pre-packaged offerings available for major schemes globally,

including U.K.

Faster Payments, The Clearing House Real-Time Payments System, Early Warning Services Zelle Network, ECB TIPS, and EBA RT1.

Merchant Payments

ACI supports both low- and high-value real-time payment processing for banks and intermediaries globally, ensuring multi-bank, multi-currency and 24x7 payment processing capabilities, as well as complete and ongoing regulatory compliance.

ACI Low Value Real-Time Payments™ is a platform with a complete range of capabilities for processing real-time payments, including origination, processing, orchestration, clearing and settlement, fraud detection and connectivity.

ACI High Value Real-Time Payments™ is a global payments engine that offers multi-bank, multi-currency, and 24x7 payment processing capabilities, as well as SWIFT messaging with seamless integrations to multiple clearing and settlement mechanisms.

Omni-Commerce Payments

ACI provides real-time, any-to-any payment capabilities globally in both card-present and card-not-present environments.

UP Merchant Payments ™ solution provides merchants with a vendor-agnostic, flexible and secure omni-channel payments environment through an integration of Postilion ® , ACI ReD Shield ® , and ACI PAY.ON ® Payments Gateway™.

Postilion facilitates transactions generated at the POS, as well as back-office functions, including prepaid, debit and credit card processing, ACH processing, electronic benefits transfer, card issuance and management, check authorization, customer loyalty programs, and returned check collection.

ACI ReD Shield offers real-time fraud prevention to detect and manage domestic and cross-border payments fraud across all payment types, as well as an interactive, self-service business intelligence portal for deep insight into merchant fraud activity.

Lastly, the ACI PAY.ON Payments Gateway delivers global payments connectivity through eCommerce and mCommerce channels, including a network of hundreds of local and cross-border card acquirers and alternative payment methods almost anywhere in the world.

UP eCommerce Payments ™ solution is designed for PSPs, ISOs, VARs, acquirers and others that offer payment services to their merchant customer base.

The cloud-based solution integrates ACI PAY.ON Payments Gateway and ACI ReD Shield, and is available as a white-label product.

Payments Intelligence

ACI’s big data engine uses powerful analytics to deliver robust fraud prevention and detection capabilities to bank, financial intermediary, and merchant customers.

UP Payments Risk Management ™ solution uses a 360-degree approach to enterprise fraud management.

The solution is designed to combat existing and emerging fraud threats using a combination of machine learning, fraud and payments data, advanced analytics, flexible rules, and agile decision strategies.

For banks and financial intermediaries, the ACI ® Proactive Risk Manager ™ component gives customers real-time visibility into threats across their enterprise, including issuer card fraud, check/deposit fraud, wire fraud, merchant acquirer fraud, internal fraud and money laundering schemes at multiple perspectives, ranging from an account or customer level.

It is available to financial institutions on premise or in the cloud.

For merchants, ACI ReD Shield provides real-time fraud prevention for eCommerce and mCommerce transactions.

It is available in the cloud.

Digital Channels

ACI Omni Commerce ™ offers merchants a scalable, omni-channel payment processing platform with the flexibility to support in-store, online, and mobile payments, protected by advanced P2P encryption, tokenization, and fraud management capabilities.

ACI Secure eCommerce ™ is a holistic platform that combines a powerful payments gateway, sophisticated real-time fraud prevention capabilities, advanced business intelligence tools, and access to an extensive global network of acquirers and alternative payment methods.

Fraud and Risk Management

ACI’s big data engine uses powerful analytics to deliver robust fraud prevention and detection capabilities to bank, intermediary, and merchant customers.

ACI Fraud Management ™ for financial institutions offers banks and intermediaries a comprehensive, real-time approach to fraud management that uses a superior combination of machine learning, fraud and payments data, and advanced analytics to prevent fraud and reduce the burden of compliance.

Our solution supports merchants with a comprehensive, real-time approach to fraud management that uses a superior combination of machine learning, fraud and payments data, advanced analytics and unprecedented consortium data to prevent fraud and reduce the burden of compliance.

Digital Business Banking

ACI offers banks advanced cash management capabilities in a multi-tenant, cloud-based platform.

ACI Universal Online Banker ™ is a comprehensive digital banking platform designed to meet the needs of small businesses up to large corporations.

It enables banks to generate new revenues through an extensive library of APIs and payment services while delivering a compelling customer experience with a highly-intuitive user interface.

Customers can use digital tools to easily manage daily collections, disbursements, information reporting, and numerous other corporate cash management services.

ACI Digital Business Banking ™ is a cloud-based digital banking platform with a vast application programming interface ("API") library and market-leading payments functionality that enables banks to reduce expenses and increase market share.

Bill Payments

ACI meets the bill payment needs of corporate customers across myriad industries through a range of electronic bill payment solutions that help companies raise consumer satisfaction while reducing costs.

ACI Speedpay ® solutions enable corporate customers to electronically present bills and collect payments from consumers through a single, integrated platform that powers the entire bill payments operation.

The solution overcomes internal application silos, providing a seamless consumer experience across all payment channels, payment types, and methods.

Customers can use ACI Speedpay solutions to power one-time payments, recurring payments, service-fee payments, disbursement services, remittance services, and eBilling.

The solution also simplifies treasury management operations through a broad array of reconciliation, reporting, and payment servicing tools.

ACI Speedpay solutions include industry-leading security, full payment card industry (PCI) compliance, and privacy practices.

ACI Speedpay ® is an integrated suite of digital billing, payment, disbursement, and communication services that lowers the cost of presenting and accepting bill payments while delivering industry-leading security.

On Premise or On Demand Software Delivery Options

Our software solutions are offered to our customers through either a traditional term software license arrangement where the software is installed and operated on the customer premises or in a third-party public cloud environment (ACI On Premise ™ ), through an on-demand arrangement where the solution is maintained and delivered through the cloud via our global data centers (ACI On Demand ™ ), or a combination of the two.

Solutions delivered through ACI’s on-demand cloud are available in either a

single-tenant environment, known as a software as a service (“SaaS”) offering, or in a multi-tenant environment, known as a platform as a service (“PaaS”) offering.

Solutions delivered through ACI’s on-demand cloud are available in either a single-tenant environment, known as a software as a service (“SaaS”) offering, or in a multi-tenant environment, known as a platform as a service (“PaaS”) offering.

Pricing and payment terms depend on which solutions the customer requires and their transaction volumes.

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In addition, ACI has membership in or participates in the relevant committees of several industry associations, such as the International Organization for Standardization (“ISO”), Accredited Standards Committee ("ASC") X9, ATM Industry Association, Financial Services, Interactive Financial eXchange Forum (“IFX”), Nexo Standards, International Payments Framework Association (“IPFA”), U.K.

Cards Association, Smart Card Alliance, and the PCI Security Standards Council.

Cards Association, Smart Card Alliance, and the

PCI Security Standards Council.

These partnerships provide direction as it relates to the specifications that are used by the card schemes, and in some cases, manufacturers.

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The agreements are generally worldwide in scope and have a term of several years.

We have alliances with our technology partners HP, IBM, Microsoft Corporation, Amazon, and Oracle USA, Inc.

We have alliances with our technology partners Amazon, HP, IBM, Microsoft Corporation, and Oracle USA, Inc.

(“Oracle”), whose industry-leading hardware, software, and cloud-based infrastructure services are utilized by and in delivery of ACI’s products.

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The following is a list of key product business partners:

Accuity, Inc.

• Arvato Financial solutions

• Bank of America – CashPro Online

Black Knight Financial Services

• Black Knight Servicing Technologies, LLC

• Cardinal Commerce

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• Diamond Communications Solutions

• Elavon Inc.

• Epic Systems Corporation

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• International Business Machines Corporation (IBM)

iSight Case Management

• Intuit, Inc.

• Jack Henry & Associates, Inc.

• Lean Software Services, Inc.

• MAGTEK Inc.

• Mi-Pay Limited

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• Payworks GmbH

IATA—Perseuss

Pronexus Inc.

• Perseuss - IATA

• Rambus Company

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• Spectrum Message Services Pty Ltd

• Stiftung SIC

• Symantec Corporation

ThreatMetrix, Inc.

TIBCO Software, Inc.

• TSYS Acquiring Solutions

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ACI provides our customers with product support that is available 24 hours a day, seven days a week.

When requested by a customer, the product support group can remotely access that customer’s systems on a real-time basis which allows us to help diagnose and correct problems and enhance the continuous availability of a customer’s business-critical systems.

When requested by a customer, the product support group can remotely access the customer’s systems on a real-time basis.

This allows us to help diagnose issues, correct any problems, and enhance the continuous availability of a customer’s business-critical systems.

We offer our customers three support options:

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• New product releases (major, minor and patches)

24-hour hotline for priority one (“P1”) problem resolution

Online support portal (eSupport)

• 24-hour hotline for priority one (“P1”) problem resolutions

• Access to our online support portal (eSupport)

• Vendor-required mandates and updates

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Agreements with our customers permit us to charge for substantial product enhancements that are not provided as part of the standard, enhanced, or premium customer support agreement.

The electronic payments market is highly competitive and subject to rapid change.

The digital payments market is highly competitive and subject to rapid change.

Competitive factors affecting the market for our products and services include product features, price, availability of customer support, ease of implementation, product and company reputation, and a commitment to continued investment in research and development.

Our competitors vary by solution, geography, and market segment.

Generally, our most significant competition comes from in-house information technology departments of existing and potential customers, as well as third-party electronic payment processors (some of whom are our customers).

Generally, our most significant competition comes from in-house information technology departments of existing and potential customers, as well as third-party digital payment processors (some of whom are our customers).

Many of these companies are significantly larger than us and have significantly greater financial, technical, and marketing resources.

Key competitors by solution include the following:

Retail Payments and Real-Time Payments

The third-party software competitors for ACI’s Retail Payments and Real-Time Payments solutions areas are Fidelity National Information Service, Inc.

("FIS"), Fiserv, Inc.

("Fiserv"), Finastra, Computer Sciences Corporation, NCR, OpenWay Group, and Total System Services, Inc.

(Global Payments), as well as small, regionally-focused companies such as BPC Banking Technologies, PayEx Solutions AS, Financial Software and Systems, CR2, Lusis Payments Ltd., and Opus Software Solutions Private Limited.

Primary electronic payment processing competitors in this area include global entities such as Atos Origin S.A., Fiserv, SiNSYS, VISA and Mastercard, as well as regional or country-specific processors.

Merchant Payments

Competitors in the Merchant Payments solution area come from both third-party software and service providers as well as service organizations run by major banks.

Third-party software and service competitors include NCR, Ingenico Group, Adyen, Worldpay Inc.

(FIS), GlobalCollect, Cybersource (VISA), Square, Inc., Tender Retail Inc., First Data (Fiserv), and VeriFone Systems, Inc.

Payments Intelligence

Principal competitors for our Payments Intelligence solution area are NICE LTD, Fair Isaac Corporation, NCR, BAE Systems, FIS, Fiserv, SAS Institute, Inc., Kount, Feedzai, Featurespace, Forter, Accertify (American Express), and Cybersource (VISA), as well as dozens of smaller companies focused on niches of this segment such as anti-money laundering.

Digital Channels

Principal competitors for our Digital Channels solution area are NCR, Bottomline Technologies, Q2 Software, Inc., Jack Henry & Associates, Inc., FIS, Fiserv, and Finastra.

Key competitors by solution area include the following:

Issuing, Acquiring, and Real-Time Payments

The third-party software competitors for ACI’s Issuing, Acquiring, and Real-Time Payments solution areas are Computer Sciences Corporation, Fidelity National Information Service, Inc.

("FIS"), Finastra, Fiserv, Inc.

("Fiserv"), NCR, OpenWay Group, and Total System Services, Inc.

(Global Payments), as well as small, regionally-focused companies such as BPC Banking Technologies, CR2, Financial Software and Systems, Form3, HPS, Icon Solution, Lusis Payments Ltd., Opus Software Solutions Private Limited, PayEx Solutions AS, Renovite, RS2, and TSYS.

Primary digital payment processing competitors in this area include global entities such as Atos Origin S.A., Fiserv, Mastercard, SiNSYS, and VISA, as well as regional or country-specific processors.

Omni-Commerce Payments

Competitors in the Omni-Commerce Payments solution area come from both third-party software and service providers as well as service organizations run by major banks.

Third-party software and service competitors include Adyen, Cybersource (VISA), First Data (Fiserv), GlobalCollect, Ingenico Group, NCR, Square, Inc., Tender Retail Inc., VeriFone Systems, Inc., and Worldpay Inc.

Fraud and Risk Management

Principal competitors for our Fraud and Risk Management solution area are Accertify (American Express), BAE Systems, Cybersource (VISA), Fair Isaac Corporation, Featurespace, Feedzai, FIS, Fiserv, Forter, Kount, NCR, NICE LTD, and SAS Institute, Inc., as well as dozens of smaller companies focused on niches of this segment such as anti-money laundering.

Digital Business Banking

Principal competitors for our Digital Business Banking solution area are Bottomline Technologies, Finastra, FIS, Fiserv, Jack Henry & Associates, Inc., NCR, and Q2 Software, Inc.

Bill Payments

The principal competitors for Bill Payment solutions are Fiserv, FIS, Jack Henry & Associates, Inc., TouchNet Information Systems, Inc., Kubra Customer Interaction Management, Worldpay Inc.

(FIS), CSG Systems International, Inc., Nelnet, Inc.

and Affiliates, Higher One, Inc.

(Blackboard), Paymentus Corp., NIC, Repay, PayNearMe, Aliaswire Inc., and Invoice Cloud, Inc., as well as smaller vertical-specific providers.

The principal competitors for Bill Payment solutions are Aliaswire Inc., CSG Systems International, Inc., FIS, Fiserv, Invoice Cloud, Inc., Jack Henry & Associates, Inc., Kubra Customer Interaction Management, Nelnet, Inc.

and Affiliates, NIC, Paymentus Corp., PayNearMe, Repay, TouchNet Information Systems, Inc., Transact and Worldpay Inc.

(FIS), as well as smaller vertical-specific providers.

Research and Development

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We work with device manufacturers, such as Diebold, NCR, and Wincor-Nixdorf, to ensure compatibility with the latest ATM technology.

We work with network vendors, such as Mastercard, VISA, and SWIFT, to ensure compliance with new regulations or processing mandates.

We work with network vendors, such as Mastercard, SWIFT, and VISA, to ensure compliance with new regulations or processing mandates.

We work with computer hardware and software manufacturers, such as HPE, IBM, Microsoft Corporation, and Oracle, to ensure compatibility with new operating system releases and generations of hardware.

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If determined to be viable, the innovation is scheduled into a product roadmap for development and release.

We provide software products and solutions to customers in a range of industries worldwide with billers, banks, intermediaries, and merchants comprising our largest industry segments.

As of December 31, 2019 , we serve more than 5,100 customers, including 18 of the top 20 banks worldwide, as measured by asset size, and thousands of leading merchants globally, as measured by revenue, in over 90 countries on six continents.

We provide software products and solutions to customers in a range of industries worldwide with billers, banks and intermediaries, and merchants comprising our largest industry segments.

As of December 31, 2020, we serve more than 6,000 organizations, including 19 of the top 20 banks worldwide, as measured by asset size, and 80,000+ merchants directly and through payment service providers, as measured by revenue, in 95+ countries on six continents.

No single customer accounted for more than 10% of our consolidated revenues for the years ended December 31, 2020, 2019, and 2018.

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Our primary method of distribution is direct sales by employees assigned to specific target segments.

Headquartered in Naples, Florida, we have principal United States sales offices in East Brunswick, Norcross, Omaha, and Waltham.

Headquartered in Naples, Florida, we have sales personnel in and outside the United States in numerous locations, including East Brunswick, Norcross, Omaha, and Waltham.

In addition, we have sales offices located outside the United States in Auckland, Bahrain, Bangkok, Beijing, Bogota, Brussels, Buenos Aires, Cape Town, Dubai, Gouda, Johannesburg, Kuala Lumpur, Limerick, Madrid, Manila, Melbourne, Mexico City, Milan, Montevideo, Mumbai, Munich, Naples (Italy), Paris, Quito, Santiago, Sao Paulo, Shanghai, Singapore, Sulzbach, Sydney, Tokyo, Toronto, and Watford.

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• AGS Technology Inc.

ASI International (Colombia/Venezuela/Caribbean)

• ADSI International (Colombia/Venezuela/Caribbean)

• Bayshore (China)

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• DataOne Asia Co., Ltd.

DDWay (Italy)

• Deda Group Business Solutions (Italy)

• EFT Corporation (Sub-Saharan Africa)

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• Korea Computer Inc (Korea)

Kuvaz (Chile)

• Kuvasz (Chile)

• Pactera (China)

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• Stanchion (South Africa)

(United States)

• Stream IT Consulting Ltd.

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• Worldline (China)

ACI ReD Shield channel partners during the year ended December 31, 2019 , included:

Omni-Commerce channel partners during the year ended December 31, 2020, included:

• Altapay (Denmark)

• Amadeus (Spain)

Barclaycard (U.K.)

• Barclaycard (United Kingdom)

• Computop (Germany)

Easynollo (Italy)

• Easy Nolo S.P.A.

• Evo Payments (United States)

• Ingenico Group (Netherlands)

Mastercard/Datacash (U.K.)

• Mastercard/Datacash (United Kingdom.)

• Metrics Global (United States)

• MNP Media Ltd.

(United Kingdom)

• Paysafe Group Plc (United States)

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• Planet Payments (United States)

Secure Trading (U.K.)

• Secure Trading (United Kingdom)

• Simplepay (Australia)

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• County Information Resources Agency

Creative Micro – CMI

• ECHO Health

• Nordis Technologies

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• Ontario Systems

• RR Donnelley

• Solutions by Text

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Further, there can be no assurance that intellectual property protection will be available for our products in all foreign countries.

Like many companies in the electronic commerce and other high-tech industries, third parties have in the past and may in the future assert claims or initiate litigation related to patent, copyright, trademark, or other intellectual property rights to business processes, technologies, and related standards that are relevant to us and our customers.

These assertions have increased over time as a result of the general increase in patent claims assertions, particularly in the United States.

Third parties may also claim that the third-party’s intellectual property rights are being infringed by our customers’ use of a business process method that utilizes products in conjunction with other products, which could result in indemnification claims against us by our customers.

Any claim against us, with or without merit, could be time-consuming, result in costly litigation, cause product delivery delays, require us to enter into royalty or licensing agreements or pay amounts in settlement, or require us to develop alternative non-infringing technology.

We could also be required to defend or indemnify our customers against such claims.

A successful claim by a third party of intellectual property infringement or one of our customers could compel us to enter into costly royalty or license agreements, pay significant damages or even stop selling certain products and incur additional costs to develop alternative non-infringing technology.

Government Regulation

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Oversight by Banking Regulators.

As a provider of payment services to banks and financial intermediaries, we are subject to regulatory oversight and examination by the Federal Financial Institutions Examination Council (“FFIEC”), an interagency body of the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the National Credit Union Administration and various state regulatory authorities as part of the Multi-Region Data Processing Servicer Program (“MDPS”).

As a provider of payment services to banks and intermediaries, we are subject to regulatory oversight and examination by the Federal Financial Institutions Examination Council (“FFIEC”), an interagency body of the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the National Credit Union Administration and various state regulatory authorities as part of the Multi-Region Data Processing Servicer Program (“MDPS”).

The MDPS program includes technology suppliers who provide mission critical applications for a large number of financial institutions that are regulated by multiple regulatory agencies.

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Money Transfer.

Official Payments Corporation, our EBPP affiliate, is registered as a Money Services Business.

Accordingly, we are subject to the USA Patriot Act and reporting requirements of the Bank Secrecy Act and U.S.

ACI Payments, Inc., our EBPP affiliate, is registered as a Money Services Business.

Accordingly, we are subject to the USA Patriot Act and reporting requirements of the Bank Secrecy Act and United.States ("U.S.").

Treasury Regulations.

These businesses may also be subject to certain state and local licensing requirements.

The Financial Crimes Enforcement Network

(“FinCEN”), state attorneys general, and other agencies have enforcement responsibility over laws relating to money laundering, currency transmission, and licensing.

The Financial Crimes Enforcement Network (“FinCEN”), state attorneys general, and other agencies have enforcement responsibility over laws relating to money laundering, currency transmission, and licensing.

In addition, most states have enacted statutes that require entities engaged in money transmission to register as a money transmitter with that jurisdiction’s banking department.

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or by global or regional multilateral organizations, such as the United Nations Security Council and the European Union as applicable.

As of December 31, 2019 , we had a total of 4,018 employees.

None of our employees are subject to a collective bargaining agreement.

We believe that relations with our employees are good.

Human Capital

As of December 31, 2020, we had a total of 3,768 employees worldwide, with 1,733 employees in the Americas, 1,045 employees in Europe, the Middle East, and Africa ("EMEA"), and 990 employees in Asia Pacific.

ACI emphasizes a diverse and inclusive workplace, with nearly 40 sites in over 30 countries.

Globally, 35% of our employees are women and 33% of our executive team members are women.

We are committed to ensuring employees feel safe and respected, regardless of race, color, age, gender, disability, minority, sexual orientation, or any other protected class.

Employees have the ability to challenge themselves and continue to grow through various assignments, projects, and development programs.

We strive to offer competitive salaries and benefits to all employees, and we continuously monitor salary ranges in our market areas.

COVID-19 and Employee Safety

During the COVID-19 pandemic, our primary focus has been on the safety and well-being of our employees and their families and business continuity.

Our Crisis Management Team ("CMT") leads our global pandemic efforts, which include leveraging the advice and recommendations of the Centers for Disease Control ("CDC") and the World Health Organization ("WHO") to establish proper safety standards and procedures worldwide.

Our CMT meets twice weekly to review our protocol, status of employee well-being, and adjust site practices based on new information or restrictions at the national or local level.

The CMT frequently communicates these updates to the workforce.

We encourage flexible work arrangements to ensure all associates feel comfortable, safe, and secure in their work environment.

In cases where the offices are permitted to be open, employees attend on a voluntary basis and there are clear safety precautions and guidelines in place based on recommendations from the CDC and WHO.

As the pandemic continues, the health and well-being of our workforce remains our top priority while we ensure business continuity and productivity while working from home.

Our voluntary regrettable turnover, or our turnover of high performers, through December 31, 2020 was 5.1%, which compares favorably to industry turnover rates.

We are pleased with our retention and will continue to employ strategies to retain and engage our global employees.

We provide our global employees with competitive and comprehensive benefits to meet their needs and the needs of their dependents.

In the United States, nearly all of our employees participate in our employee benefits programs that include:

• Comprehensive health coverage for medical, vision, and dental care

• Short term, long term, accident and disability insurance coverage

• Flexible spending accounts for medical and dependent care expenses

• Commuter expense reimbursement accounts

• Retirement savings plans including 401(K) and deferred compensation plans

• Access to 529 Plans for college savings

• Adoption assistance

• Employee discounts programs

Some of these benefits are available to our employees outside the United States where applicable and permissible by law in addition to locally provided benefits.

Globally, all employees have access to an employee assistance program which offers support to employees and their immediate family to address a range of personal needs and concerns in support of their well-being and mental health.

To foster a stronger sense of ownership and align with the interests of our shareholders, participation in the employee stock purchase plan is available for eligible employees.

Available Information

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As of February 25, 2021, our executive officers, their ages, and their positions were as follows:

Interim President, Interim Chief Executive Officer, and Chief Operating Officer

Executive Vice President, Chief Financial Officer

Odilon Almeida 59 President and Chief Executive Officer

Behrens 49 Executive Vice President, Chief Financial Officer

Evanthia (Eve) C.

Executive Vice President, Group President, ACI On Demand

Executive Vice President, Group President, ACI On Premise

Executive Vice President, Chief Risk Officer

Executive Vice President, Chief Product Officer

Executive Vice President, Chief Administrative Officer, General Counsel, and Secretary

Saks was appointed Interim President and Chief Executive Officer in December 2019, effective January 1, 2020.

Saks continues to serve as the Chief Operating Officer, with more than twenty years of payments and banking expertise.

Previously, Mr.

Saks led ACI's Strategic Products division.

Prior to joining ACI in February 2012, Mr.

Saks was Senior Vice President of Shared Services at S1 Corporation, which was subsequently acquired by ACI.

From 1999 to 2007, Mr.

Saks served as the Chief Operating Officer at Fundamo.

Saks holds a Master of Commerce in IT Management from the University of Cape Town and a Bachelor of Commerce in Computer Science from the University of Port Elizabeth.

Aretakis 61 Executive Vice President, Chief Revenue Officer

Wilmot 52 Executive Vice President, Chief Product Officer

Byrnes 57 Executive Vice President, Chief Legal Officer, General Counsel, and Secretary

Almeida was appointed President and Chief Executive Officer on March 9, 2020.

Almeida has senior leadership experience spanning multiple industries and countries and two decades of payments experience.

Prior to joining ACI, Mr.

Almeida served as an operating partner at Advent International, one of the world's largest private equity funds.

Almeida also spent 17 years at The Western Union Company, where he most recently served as the President of Global Money Transfer.

Almeida is fluent in English, Spanish, and Portuguese, and he holds a bachelor’s degree in Civil Engineering from Centro Universitário Instituto Mauá de Tecnologia in São Paulo and a Master of Business Administration from Fundação Getulio Vargas in São Paulo.

He extended his education at Harvard Business School, The Wharton School, and the International Institute of Management (IMD).

Behrens serves as Executive Vice President and Chief Financial Officer.

Behrens joined ACI in June 2007 as our Corporate Controller and was appointed as Chief Accounting Officer in October 2007.

Behrens was appointed Chief Financial Officer in December 2009.

Behrens ceased serving as our Corporate Controller in December 2010.

Behrens was appointed Chief Financial Officer in December 2009 and ceased serving as our Corporate Controller in December 2010.

Behrens was appointed Executive Vice President in March 2011.

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Behrens holds a Bachelor of Science from the University of Nebraska – Lincoln.

Aretakis serves as Executive Vice President and Group President of ACI On Demand.

Aretakis serves as Executive Vice President and Chief Revenue Officer.

Previously, Ms.

Aretakis led ACI's Product Development group.

Aretakis led ACI's On Demand segment and Product Development group.

Prior to joining ACI in 2016, Ms.

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Aretakis holds a bachelor’s degree in Computer Science and Economics from Union College.

Wilmot serves as Executive Vice President and Group President of ACI On Premise.

Wilmot serves as Executive Vice President and Chief Product Officer.

Prior to his current role, Mr.

Wilmot held a number of senior leadership roles at ACI, including Executive Vice President, Chief Marketing and Revenue Officer, Senior Vice President and Managing Director for the Americas, President for the Asia-Pacific and Regional Director for Western Europe and Africa.

Wilmot held a number of senior leadership roles at ACI, including leading ACI's On Premise segment, Chief Marketing and Revenue Officer, Senior Vice President and Managing Director for the Americas, President for Asia Pacific and Regional Director for Western Europe and Africa.

Prior to joining ACI in 1999, Mr.

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Wilmot holds a Bachelor of Arts in Business Studies from Oxford Brookes University in the United Kingdom and has completed the Advanced Management Program at INSEAD in France.

Homberger serves as Executive Vice President and Chief Risk Officer.

Previously, Ms.

Homberger held a number of senior and operational leadership positions at ACI, including leading global sales, ACI On Demand, and customer management and maintenance.

Prior to joining ACI Worldwide in 2006, Ms.

Homberger worked at GE Healthcare, where she held finance leadership roles and completed the Financial Management Program (FMP).

Homberger is a board member of the American Transaction Processors Coalition (ATPC) and Women in Payments.

She is Six Sigma Green Belt Certified and holds a Master of Business Administration from Fordham University and a Bachelor of Science from Miami University.

Braatz serves as Executive Vice President and Chief Product Officer.

Prior to his current role, Mr.

Braatz most recently served as the Chief Marketing and Solutions Officer, Senior Vice President and P&L lead for ACI On Demand’s Software as a Service solutions, and Senior Vice President and Product Line Manager for ACI On Demand and for ACI’s Payments Risk Management solution.

Prior to joining ACI in 2012, Mr.

Braatz served as Senior Vice President of Marketing and Product Management at Memento Inc., a provider of enterprise fraud management solutions that was acquired by Fidelity National Information Services Inc.

Earlier in his career, Mr.

Braatz was a consultant for Bain & Company, working with clients in the software and financial services industries.

Braatz began his professional career as an officer in the United States Air Force, where he attained the rank of Captain.

Braatz holds a Bachelor of Arts in Mathematics from Northwestern University and a Master of Business Administration from Northwestern's Kellogg School of Management.

Byrnes serves as Executive Vice President, Chief Administrative Officer, General Counsel, and Secretary.

Byrnes serves as Executive Vice President, Chief Legal Officer, General Counsel, and Secretary.

He has served in that capacity since March 2011 and as General Counsel and Secretary since joining the Company in June 2003.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business