Slide 1

Mobile Payment Beyond the Hype Insights into the mobile space

Slide 2

Mobile payments can significantly enhance the experience and processes centered around payment

Executive summary

Current mobile payment solutions don’t offer a significant value add over traditional methods when it comes to payment functionality vs.

Payment integration involves many parties, certifications and local knowledge

Mobile payments can significantly enhance the experience and processes centered around payment

Buy 10, Get 1 Free

Slide 3

Mobile payment is predicted to be a big thing

Mobile payment in numbers

This year, more people will use mobile phones than desktop computers to go online

By 2016, mobile commerce is expected to grow to 5 times its current size

Sources // Google, Gartner, Moovweb

In 2016, there will be 448 million mobile payment users, in a market worth $617 billion 448

Slide 4

But everyone has their own definition of mobile payment

Some mobile payment variations

S // Shopper M // Merchant

Mobile as the Point of Sale

§ § PIN

M S

Mobile at the Point of Sale

M S

Mobile Shopping

S

Slide 5

Mobile payment has payment at its core and needs to fulfill four major criteria

Our understanding of mobile payment

Mobile payment

is

payment enhanced with mobile technology

!

Risk mitigation Availability Cost Efficiency

$ Secure transfer of funds

A B

Slide 6

Mobile payment solutions don’t offer a significant value add over traditional methods when it comes to payments

Current situation in payment

Debit and credit cards are still the

predominant means to pay

Mobile doesn’t fundamentally change the

way authentication and authorization are

done

Payment problem is essentially solved in developed markets and current mobile payment solutions don’t offer significant improvement in security, risk, availability and cost

Slide 7

Mobile payments can significantly enhance the experience and processes centered around payment

Advantages mobile payment technology can offer

Provide access to cashless payments for small merchants

Seen in the US, spreading world-wide

Service under-banked merchants

New workflows possible

Very specific solutions tailored to the merchant

Improve the sales process

Merchants can increase customer retention

Loyalty, couponing, targeted advertisement

Add additional services

Cheaper hardware if mobile device is already present

Cut out middle-men (P2P)

Reduce risk through better authentication and authorization

Reduce costs

Slide 8

Mobile payments can significantly enhance the experience and processes centered around payment

Two examples of the value that mobile payment can bring

Pre-ordering of food Loyalty programs

Buy 10, Get 1 Free

For all of this you need payment but this is not the most important part

Slide 9

Our goal at payworks is to provide a way payment as a component that can easily be integrated into mobile solutions

payworks positioning

Easy We set ourselves the goal to make it possible for anyone to integrate payment

We provide a platform that lets our clients process both card present and card not present transactions on one independent platform Platform

We make mobile payment stars. Our clients run our platform and their mobile payment applications on their own – under their own brand.

Slide 10

Learning: Payment requires a lot of parties to work together

Parties and hardware involved in a simple transaction flow for a credit card transaction

Acquirer

Issuer

Shopper Merchant

Card Scheme

Processing Platform

§ PIN

Hardware integration effort Payment integration effort Handling multiple parties

Slide 11

Learning: Payment integration requires many certifications

Required certifications for a simple transaction flow

Own certifications

Acquirer

Issuer

Shopper Merchant

Card Scheme

Processing Platform

§ PIN

EMV PCI

PTS POI

ADVT mTIP

PCI P2PE

PCI DSS

Multiple certifications required

Slide 12

Learning: Payment is very local

Issues we had to solve

Different countries – different rules

Different countries – different banks

Different countries – different payment methods

Slide 13

The world of mobile payment on one single platform

Visit us! Hall 9, Stand A50