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Paybl.hps.march2010.ver3.0 Paybl.hps.march2010.ver3.0 Presentation Transcript

  • Transact Freely with One-Click Pay tm Presented to Heartland Payments Systems Mountain View, CA Apr 2010
  • Q: How to get from thousands to millions of users
    • Have an existing back-end payment infrastructure
      • Built an end-to-end payment system for Debit and Credit
      • Platform independent, plug and play integration, mobile enabled
      • Lowers processing costs radically
    • Have a novel Architecture - Frictionless consumer enrollment, no sign-up required
      • Allows users to transact without enrollment or redirection (high conversion rates)
      • Easy conversion from existing networks to lowest cost settlement system
  • Answer: Leverage a high growth segment
    • Social gaming/Virtual Currencies have millions of users
      • Exponentially high growth, marginal COGS zero
      • Payments not their core competence
    • Rate of conversion is key in Social networks gaming/Virtual Currencies
      • Current rates saturated at 2-3%
      • Barter offers extremely lucrative but will taper off
  • Problem/Opportunity in Social Gaming/Virtual Currencies Merchants Low rate of paying users (2-3%) High processing costs Consumers Poor experience with online transactions No “one-click pay” No small (under $5) transactions
  • Noca’s Payment Solution www.noca.com copyright© 2009 Noca Inc All Rights Reserved
    • Frictionless enrollment and transaction experience
    • No fixed fee per transaction enables small payments
    • Lowest cost – no interchange or network fees
    • Eliminates most mouths from existing payment food chain
    • Easiest and most flexible integration - Most scalable
    • Ability to incent loyalty and consumer behavior. Low fraud since goods are virtual
    Consumer Friendly Solid Fraud Solutions Best Economics Excellent Technology Noca is a game changer for Gaming/Virtual Currencies
  • Increase Consumer Conversion
    • SStart with greater convenience
    • TTruly “OneClick Pay” increases conversion exponentially
    • SSubsequent transactions using checks
    www.noca.com copyright© 2009 Noca Inc All Rights Reserved
    • NNo change in Consumer behavior needed
    • PPay once inline, no redirection, auto enrollment with payment information pre-filled
  • Noca’s Solution Reduces Merchant Cost by 80% www.noca.com copyright© 2009 Noca Inc All Rights Reserved Payment Processing Costs Chargeback Others Fixed Costs Fixed Costs Others Chargeback Payment Processing Costs Current Transaction Cost 3-5% Cost Reduction of 80%
  • Noca's “Secure Credit/Secure Check” tm Differentiators Noca’s superior payment system will offer: Superior Chargebacks: merchant first right of refusal reduces chargebacks substantially Analytics: an API enabling rich analytics for merchants Real Time: provide real-time information regarding end-to-end payment experience SKU detail: deliver full SKU information and checkout “snap shots”
  • Noca Rides the Debit Trend Wave www.noca.com copyright© 2009 Noca Inc All Rights Reserved Visa Debit Surpassing Credit in 2008
    • Tightening lending standards
    • Reduction in revolving outstanding balances
    • Numerous issuers reducing credit lines
    • Legislation and regulation making credit extension challenging
    • Consumer desire for “control”
    • Noca's system leverages increasing debit adoption
    Credit Volume Debit Volume US Trends Favoring Debit for 20 years Current Economic Environment Accelerating Shift to Debit
  • Easy Implementation of Mobile Payments www.noca.com copyright© 2009 Noca Inc All Rights Reserved
  • Social Media Payments www.noca.com copyright© 2009 Noca Inc All Rights Reserved Actual facebook screen
  • Noca Value Proposition
    • Good Consumer acceptance - Frictionless consumer experience
    • Good Merchant acceptance - Ability to steer consumer from credit or debit option
    • Lower cost transactions - Order of magnitude cost difference
    • Lower regulatory hurdles - No PCI compliance
    • Increased efficiency for recurring payments - Bank accounts do not expire
  • Adoption Metrics (Feb 10)
    • Total volume through network = $100’s K
    • Total number of Merchant signups = 362
    • Total Consumers = thousands
    • Average web transaction size = $102
    • Total number of Fraud/Chargeback/Disputes = 1
    • Percentage of fraud/chargeback < 0.1%
    www.noca.com copyright© 2009 Noca Inc All Rights Reserved
  • www.noca.com copyright© 2009 Noca Inc All Rights Reserved Competitive Assessment Customer Friendly: No Registration or Redirection Registration or Redirection Low Merchant Fees (0.75%) High Merchant Fees 1-3% +$0.10-0.30
  • Current status
    • 1M+ users signed
    • 4M+ users discussion/LOI
    • 80M+ users discussion/LOI
    • 15M+ users discussion
    • 20M+ users contact
  • Current status
    • – Discussion/LOI
    • Homeaway - RFP/RFI
    • – LOI
  • The Founding Team
    • Pankaj Gupta [Founder, President]
    • Chief Network Architect at VISA
    • 15+ years industry experience in financial services
    • MS and BS in Computer and Information Science from Ohio State University
    • S. Randy Nott [Chief Architect]
    • Lead developer at VISA
    • 15+ years Industry experience.
    • BS in Computer Science from Western Michigan University
    www.noca.com copyright© 2009 Noca Inc All Rights Reserved
  • Team
    • Glenn Poppe [Biz. Dev]
    • Harvard Business School, cum laude
    • Ex Boston Consulting Group
    • Entrepreneurial experience, International Experience
    • Tony DeGangi [Lead, Security and Risk Engineer ]
    • Ex MIT Engineer
    • Extensive risk operations experience
    • BS, MS in Computer Science, Entrepreneurial experience
    www.noca.com copyright© 2009 Noca Inc All Rights Reserved
  • Financials (How do we make profit)
    • 0-1 Million Users
    1+ Million Users Cross sell to Merchants Advertising Financial Institutions EBITDA 75+% Per transaction Transaction Cost $0.100 Verification Cost $0.100 SG&A Cost $0.080 COST (COGS + SG&A) $0.280 Avg Trans Size: $70 We charge 1.00% of which we keep 0.50(the other 0.5% in going for incentives) Revenue/Per trans $0.375 Profit /per trans $0.10 EBITDA 35+%
  • Financial Summary
    • Current Capital Raised = 350K, Individual Angel investors
    • Terms = Convertibles with discount
    • Pre-money Valuation = under discussion
    • Looking to raise $3.5Million
    • Use of funds = growth through infrastructure and staff augmentation
    • In 4 years, 50M users and 200+M in revenues