Confidential & proprietary December 2013. confidential & proprietary WHAT IS SMARTPAY?

confidential & proprietary

December 2013


WHAT IS SMARTPAY?

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SMARTPAY LETS CUSTOMERS GET PHONES, ACCESSORIES OR AIRTIME AND PAY MONTHLY.

SmartPay powered by BillFloat® is a lease-to-own plan that lets consumers purchase smartphones, airtime and accessories with convenient monthly payments.


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BASIC SMARTPAY FEATURES

• Lease transaction - customer acquires ownership by making all required payments

• Affordable payment plans – – 10-payments more than $450 approved purchase amount; 90

days* “same as cash” early payoff option for 10-payment plan– 6-payments $450 or less approved purchase amount (all states

except California); 30 days “same as cash” early payoff option

• First payment due on purchase, collected by SmartPay using customer’s debit card

• SmartPay collects all funds from the consumer - dealer does not need to collect any funds from consumer

• No recourse to dealer – we don’t ask dealer for any money if the customer does not make payments


* Length of “Same as Cash” early payoff option subject to change and may vary by state, every location will be offered one of the “same as cash” options

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PAYMENT PLAN COMPARISONS


Product Feature 10 Payments 6 Payments Approval Amount (including taxes)

More than $450 $450 or less

Number of Payments 10 equal payments 6 equal payments

Initial Payment amount First of 10 payments First of 6 payments

Same as Cash option 90 Days Same as Cash, save fees by paying early

30 Days Same as cash, save fees by paying early

Approval process Completely automated, no paperwork required

Completely automated, no paperwork required

Application process Same with very high approval rates

Same with very high approval rates

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WHICH CUSTOMERS ARE ELIGIBLE?


PLAN ELIBILITY

• 18 years old• Valid Social Security Number• Debit Card linked to a bank

account• $1000 pre-tax monthly income

RESTRICTIONS• No pre-paid cards accepted• Valid for tangible goods only

(phones, accessories, airtime)• Must have enough available

funds in bank account to cover the initial payment

High Approval Amounts

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HOW DO I GET PAID FOR WHAT I SELL USING SMARTPAY?

SmartPay pays you directly for the items you sell and you have two options on how to get paid:

1. ACH initiated next day; dealer funds in 3-5 days (no interchange)2. Virtual Debit Card – you run card number on your Merchant card

processing terminal and receive funds like any other debit/credit card transaction (results in interchange fee)


Notes: The initial payment is collected directly from the consumer’s debit card by SmartPayYou pay sales tax on SmartPay like any other transaction

Payment will be for full transaction amount including tax


WHY SHOULD I OFFER SMARTPAY?

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• Easy online application (NO PAPER)• SmartPay is a new “tender type” that

customers can use We reimburse you for the full

retail value plus sales taxes) of the items you sell

• Minimum initial payment one of 10 (or 6) easy payments deducted from consumer’s debit card automatically

• Dealer does not collect any payment from consumer, SmartPay collects payments online

• No long term commitments • Less than perfect credit ok• Instant decision – high approval rates• “90/30 Days Same as Cash” Early

Payoff* Option gives consumer a fee free option

*Not all customers are approved for $1500 and 90 days same as cash. Some customers may only qualify for lower dollar amounts and shorter term plans with 30 days same as cash.

WHY OFFER SMARTPAY?


HOW DOES A TRANSACTION WORK?

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IN-STORE SMARTPAY PROCESS

• Dealer associate qualifies customer– Customer must have the following

• Email address• 18 years of age• Minimum $1,000 gross monthly income• Debit card tied to a bank account• Social security number

• Customer fills out online application

• Dealer associate enters “Store Login ID” as part of the online application process

• The Store Login ID tells BillFloat which location to reimburse for the items

• Payments get deposited daily into your bank account via ACH or a virtual debit card transaction is created for real time processing of transaction


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SMARTPAY APPLICATION PROCESS


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SMARTPAY APPLICATION PROCESS (CONT.)


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SMARTPAY 2.0 APPLICATION PROCESS (CONT.)SCREEN SHOWS THE AMOUNT AND PAYMENT PLAN THE

CUSTOMER IS APPROVED FOR


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KEY SALES MESSAGING


• SmartPay is a lease-to-own plan that allows customers to make monthly payments on phones and accessories instead of purchasing them outright.

• Customers are approved for an amount of goods (phones, accessories, first month’s airtime) that can be purchased using this plan up to a maximum of $1500 - though not everyone is approved for $1,500.

• Customers approved for over $450 (including taxes) get a 10-payments plan. This plan comes with a 90 days same as cash option, which means the customer pays no fees if they pay off their balance within 90 days.

• Customers approved for less than $450 (including taxes) get a 6-payments plan. This plan comes with a 30 days same as cash option, which means the customer pays no fees if they pay off their balance within 30 days.

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HOW DO CARRIER MONEY BACK GUARANTEES WORK WITH SMARTPAY?


• Carrier standard money-back guarantees are supported by SmartPay with standard guidelines– Return within carrier’s allowed days of purchase and allowed minutes of

talk time on handset• Associate must process return on SmartPay Portal

– Customer must provide DOB and last 4 digits of SSN– Lookup consumer, click “Start Processing Return” and select amount of

return– Partial returns are supported– Funds for the initial payment will be returned to the consumer’s debit card

directly– Funds for the returned phone will be debited from the following day’s ACH

transfer to the dealer, or if dealer was paid using a Virtual Debit Card, processes debit card return

• Consumer cannot receive cash back, return must be processed using Payment Support

• Line of service is canceled• 1st month of service return process follows current guidelines

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FAQs


1. Can the dealers get a copy of the deck with the rules and screenshots?There is document recently sent to the AMs that can be used to train.

2. Can we get the customer application to be able to be pulled up on a tablet?Not at this time.

3. If the customer decides to wait before purchasing, and later goes to another store, do they have to go through the application process again?

No, as long as the application is accessed within 7 days, you can look up and find an approved basket amount

4. How much is the fee for BillFloat?About double MSRP for the 10-payment product and 1.75 for the 6-payment.

But they can pay off the amount early and save on the fees. We have a 90/30 days same as cash offering, which means consumers pay the same price as if they were taking the device out of the store as long as they payoff within 90 /30 days. Even after the “same as cash” period ends, consumers can save money by paying early. For example, a consumer that pays off after 5 payments saves half the fees in the 9-payment plan!

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FAQ’S


5. Can customers choose which payment plan they want?The payment plan length is automatically determined by the amount the customer gets approved for. Customers approved for more than $450 get the 10-payment product, while customers approved for $450 or less are offered only the 6-payment plan

6. What can customers do to get the highest approval amount?Provide accurate information on their application. We can usually tell if customer information is not accurate and it decreases their likelihood of approval and decreases their approval amount if approved

7. What if a customer signs up for the 6-payment plan, how do they make their 30 days same as cash payment?The process for both “30 days same as cash” and “90 days same as cash” is the same: customers must log into their SmartPay account and make a special payment to payoff their balance early. The same as cash option is not automatic, so the customer must take action to exercise this option7

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FAQs (cont.)


8. When refunded, do they get all their money back? Yes

9. What is the earliest a customer can pay off what they owe and avoid fees?

It can be as early as the next day.

10. What money does the dealer collect from the customer?Only fees or charges for items not on the lease. Dealer does not collect on

behalf of SmartPay.

11. Do all handsets, airtime and accessories qualify for BillFloat?Yes, but airtime must be first month only, and all other goods must be tangible

goods.

12. How long does it take for the funds to go in the dealers account via ACH?3 to 5 business days.

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FAQs (cont.)


13. Can the dealer take the sales tax from the customer?No, SmartPay will reimburse the dealer for all costs including

sales tax.

14. If the initial payment isn’t in their bank account, what happens? “Funds not available” will show up and the transaction will not proceed, therefore the customer will not be able to proceed with the transaction.

15. In case of a return, how long does it take for the customer to get their money back on their debit card?

1 to 2 business days.

16. Can the customer pre-pay more to get a smaller monthly payment?No, a larger pre-payment would give less months but not make the monthly

payment smaller.

17. Can you do this on new and upgrades?Yes, both new and upgrades qualify. If it is an upgrade, the dealer needs to collect the upgrade fee.

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FAQs (cont.)


18. What marketing collateral will there be?You will be able to download printable versions of a take-one flyer, poster and pricing tags from the SmartPay portal, phone wigglers are also

available from your SmartPay representative

19. How do we show this transaction in our POS system?It depends on your POS system.

20. Does the way SmartPay handle sales taxes present risk for me as a dealer?

No, SmartPay reimburses you for the full retail amount of the sale including sales taxes. You treat SmartPay like any other tender type. SmartPay deals with collecting taxes from the consumer.

21. Can two different customers use the same debit card?No. Only one debit card per one customer.

22. Can I charge customers who use SmartPay a different cost for the items I am selling them as compared to other customers?

No. You must charge customers using SmartPay the same price customers get when paying with cash.

Documents

Confidential & proprietary December 2013. confidential & proprietary WHAT IS SMARTPAY?