NETS EXPERIENCES ON INSTANT

PAYMENTS

The Central Bank of Hungary

2018 March 1st Engagement Director Paul Walvik-Joynt

Nets RealTime24/7 in Europe

Only proven scalable and high performing cross border managed service solution in production

Proven speed of implementation and ability to deliver

Solid and proven architecture that has a proven operational track record

Instant Payment solution with world leading P2P uptake and services

Nets’ in numbers

500,000More than 500,000

terminals interact with Nets

45%45% of the Nordic market

for card processing

33m33 million cards on

Nets’ platforms

500,000More than 500,000

merchants serviced

140,000Creditors use our services

along with most households

in Norway and Denmark

7.8mMore than 7.8 million

digital identities issued

THE BUSINESS THE COMPANYDKK 6,5 BILLIONA steadily growing turnover

2.500 EMPLOYEESMore than 2.500 skilled employees in

six countries and eight offices

NORDIC + BALTICLocal offices in Denmark, Finland,

Norway, Sweden, Estonia and Latvia

Instant Payments on RealTime24/7

Services on

Instant Payments

Business

Development

of Services

Payment Solutions

and situations

Experiences

when going

Instant

Services on Instant

Payments

Services for

merchants

POS and e-com

(Partners)

Mobile, Netbank

And Eco System

(Partners)

Powered by

Nets

P2P and P2M

Direct transfer and

Request to payAI and VR

(Nets Smart

Payments)

Receipts and

Loyalty

(Nets Storebox)

PSD2 and

Open Banking

(Nets NAAS)

Going Instant- Denmark scaling fast

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

14 000 000

16 000 000

Additional 40% on-us transactions

P2X ~ 7 out of 8 transactions

Average number of trx. per day tripled

~28 trx. per inhabitant per year 2016

~35+ in 2017 – average growth 4% per month

Business Development with success

Competitive, free of charge

Push for signup

User friendly app. sending/

request/share bill,

recipient validation, etc.

Smaller merchants usage

Market places/Events

Fundraising/charity

Bluetooth terminals -

Creating critical mass

Find store

Attractive commercial

model for merchants

Receipts archiving, Mobile

on your Apple Watch

Loyalty programs, 5-15%

Customer experience

Specifications

All banks on-boarded (80)Gradually increasing

amount limits for mobile

Retail chains joining

Internet retailers on-

boarded

05/2013

Bank´s launch

P2P Mobile

09/2013

RealTime24/7

Project Launch

Q1-2/2014

Use cases

acceleration

11/2014

RealTime24/7

Launch

Q4/2014

The P2M

approach

O1-2/2015

Broadening the

use cases

H2/2015

2016

Enhancing value

proposition

Transfer all current mobile

transactions to real-timeBuild the infrastructure for

creating full reach Promote home banking

Targeting merchants

further

Higher amount limits 7K€

Municipalities onboarding

IP INFRASTRUCTURE - VAS

Slovenia Instant Payments inspiration

REGISTER/

DIRECTORY SERVICE

BATCH INPUT

(BULK/DEBULK SCT)

M-BANK

E-BANK

MOBILE WALLET

(P2P, P2M)

E-SHOP

PISP APPLICATION

PAYER PSP

PSP EMPLOYEES

SEPA PARTICIPANTS

PISP

PAYEEE PSP

PSP EMPLOYEES

ACH

M-BANK

E-BANK

MOBILE WALLET

(P2P, P2M)

POS SOLUTION

AISP APPLICATION

PAYER PERSON

PAYER BUSINESS

PAYEE PERSON

PAYEE BUSINESS

FRAUD

AML / KYC

STAND-IN

PSD2 TPP CHANNEL

Nets RealTime24/7

CLEARING

SCTinst

SETTLEMENT

TARGET2 INTERFACE

CENTRAL BANK

AISP

Payments

solutions and

Situations

Large retailers provided with external

”units” with Bluetooth and QR

Solutions for e-commerce payments

Augmented Reality shopping

experience

Business versions of P2P for SME´s

without a terminal

2nd G enhanced terminals handling both

cards and mobile payments

Can both be integrated with cash

registers and function as mobile

and portable devices in stores.

Invoice function for users to pay

invoices via mobile phones.

Enroll ERP-suppliers

Chatbot in Messenger

Mobile Payout function for corporates

InnovationFriction

Convenience Right now

@pauljoynt /in/pauljoynt

Instant Payments on RealTime24/7