What do the businesses gain from accepting cash? <ul><li>These consumers; </li></ul><ul><ul><li>Pay their utilities with cash every week </li></ul></ul><ul><ul><li>23% of the 3m daily online Bingo players use cash to deposit and do so 2-3 times per week </li></ul></ul><ul><ul><li>Most e-commerce misses these users . </li></ul></ul>% UK Population TOTAL MALE FEMALE Social Grade C2 20.7% 9,964 5,395 4,570 Social Grade D 16.2% 7,819 3,712 4,107 Social Grade E 8.1% 3,916 1,435 2,481
Cash online reaches rest of the world 67% of EU adults do not have a card to use online South Africa Population 49m and 80% use prepay as methods to buy online Brazil population 203m and 37.4% online Cash is key requirement Russia - 91% of card users only use to get cash out of the ATM Australia Over 60% of 55+ age group fear fraud online
Cash brings security to merchants <ul><li>Assured funds – this really does mean zero charge backs </li></ul><ul><li>Cash is collected from over 500,000 locations across 6 continents with security / guarantees in place </li></ul><ul><li>All monies collected are in a regulated manner kept segregated until its time to settle to the merchant </li></ul><ul><li>Cost of handling cash versus all the processes to handle cards and the administration is circa 1.25% less </li></ul>
<ul><li>Customers go to local shops, Post offices, Interactive kiosks and ATM’s </li></ul><ul><li>Give cash in local currency to receive a voucher back </li></ul><ul><li>Vouchers can be cards, receipts, SMS messages – unique </li></ul>
Comparing pre and post-paid solutions Post paid has to wait for customer to go to shop before any goods can be shipped. 2 part payment flow.
Managing risk and compliance <ul><li>Dedicated risk/compliance team and anti-money laundering capability </li></ul><ul><li>Ukash, like some others have full E-Money license (EMLI) - ensures compliance with the FSA/e-money regulatory practices </li></ul><ul><li>This is achieved through: </li></ul><ul><ul><li>Full KYC of all distribution & redemption partners </li></ul></ul><ul><ul><li>Management of voucher limits by geography, partner and per voucher </li></ul></ul><ul><ul><li>Full traceability of each voucher from issuance to redemption </li></ul></ul><ul><li>Traceability of cash through e-money is supported by all the official police and crime management authorities </li></ul>Similar risks and targeting by fraudsters as cash in banks; the companies take risk management seriously
Cash Solutions PrePaid Cards What is it Geography reach Benefits Costs to consumer Other considerations Pre-Paid voucher No registration £5 - £500 48,000 POS – UK 500,000 + in 55 countries Assured funds Variable values Simple user experience Change given ZERO Smart Voucher patented solution for promotional usage Post-paid No registration UK only 35,000 POS Assured funds Simple user experience ZERO Merchants can get logistics issues awaiting user to go and pay, or not. Pre-paid voucher No registration £20 - £100 26,000 UK POS 250,000 EU Assured funds Simple user experience 2% Part of the Paysafe Group Pre-paid voucher/card No registration 26,000 UK 350,000 POS in 26 countries Assured funds No registration ZERO Use CashTicket in E-Commerce category Post-paid No registration 26,000 UK Assured funds ZERO Only available to merchants on PSP platform Pre-paid Registration required 20,000 – 26,000 UK Card process 2%-6% various fees Consumers not really seeing as a cash solution yet
Cash online growth 12x overall eCommerce growth over 3 years <ul><li>Cash eCommerce has grown 532% or 85% compound </li></ul><ul><ul><li>Source: Ukash audited sales growth as featured in the 2011 Tech Track 100 list </li></ul></ul><ul><li>General eCommerce has grown 43% or 13% compound </li></ul><ul><ul><li>Source: IMRG Capgemini e-Retail sales index grew from 4737 to 6797 between Aug 08 to Aug 11 </li></ul></ul>