Virtual Prepaid for Perfect-fit Payments
Prepaid Summit: Europe 2015
Milan – Nov 2015
#PerfectFitPayments
Alex Mifsud
CEO

© 2015 Ixaris System LtdOur Prepaid Opportunity 2
Contents
1. Introduction to Ixaris
2. Payment Imperfections offer Opportunities
3. Virtual Prepaid for Perfect Fit

© 2015 Ixaris System LtdOur Prepaid Opportunity 3
Multi award-winning payments technology company
with 10+ years experience delivering prepaid
solutions
Pioneered virtual prepaid
cards in 2003
Multiple re-usable applications
that can be configured and
deployed rapidly without IT
effort
Who we are
Fast facts: 13 years old, 160 staff, 80+ engineers

© 2015 Ixaris System LtdOur Prepaid Opportunity 4
• Comprehensive range of off-the-shelf
products / templates
• Customise, configure and deploy
per market or per customer without
the need for an IT project
• Or scale up sales by empowering clients to
manage and customize themselves
• Create exciting new products without
extensive and expensive IT
What we do
An ‘App Store’ for prepaid programmes

© 2015 Ixaris System LtdOur Prepaid Opportunity 5
Turnkey corporate payment solutions
for purchasing, disbursement, payroll,
and incentives
From Technology to Turnkey Solutions
We provide the tools for prepaid but also build & operate solutions
Technology suite for banks to create
and offer their own prepaid payment
applications

© 2015 Ixaris System LtdOur Prepaid Opportunity 6
The Problem: payments inefficiency
There are many large and unaddressed inefficiencies in payments
The inefficiencies vary by
- Payments use case: purchasing, gifting, payroll, …
- Industry: travel, insurance, construction, …
- Geography: Western Europe, Eastern Europe, US, Africa, Middle East, …
- Customer size and type: consumer, SME, enterprise, …
Cost inefficiency
 High fees for cross-border transfers
 Forex spread
 Working capital requirements due to
slow transfers
Convenience inefficiency
 Delays in transfer and settlement – results
in costs of working capital and exposure
 Accessibility in the preferred form of use:
e.g. APIs for businesses, on mobile for
consumers, …
Control inefficiency
 Errors and failures
 Fraud – external and internal
 Exposure due to repudiation
 Loss of control over funds in transfer

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Corporate card business is hooked on rebates
Chip & PIN cards are expensive to produce
Consumer interchange falling by up to 80%
Now is the time to find New Models
Profits are under threat
The Opportunity: why prepaid issuers should address the problem
Established models in the cards business are under threat – do nothing and die!

© 2015 Ixaris System LtdOur Prepaid Opportunity 8
Virtual account numbers are more than just payment cards
No plastic! Virtual cards are a better mousetrap against payments inefficiency
Multiple use modes: single-load multi-spend, single-load
single-spend, multi-load single-spend, multi-load multi-
spend. Works on prepaid (debit) or credit card products
Real time issuance: Issued, funded and delivered
electronically in real time, at almost zero cost
Fine-grain control: at the time of issuing can set the
value-as-needed, MCC-restriction, time-validity window
Perfect reconciliation each card issued against external
reference provides to the penny reconciliation against
external data such as purchase order, client claim, etc
Virtualization of
Card Payments can
offer a path to new
applications, new
business models
and profitability

© 2015 Ixaris System LtdOur Prepaid Opportunity 9
Opportunities for Perfect-Fit Payments (1): Purchasing Cards
P-Cards have not been as successful in Europe as in the US
Europe accounts for 31% (€27.9 trillion) of global
Commercial Consumption Expenditure (CCE), but
only 8% of this is done via cards
Visa Commercial Consumption Expenditure Index 2010
Key reasons why
• P-cards are perceived to lack the controls available on other payment methods
• P-cards are perceived as expensive for both buyer as well as supplier compared with
national payment systems – SEPA threatens to extend this to pan-EU payments
• Limited penetration of card acceptance amongst suppliers
• Poor facilities for reconciliation – transaction records from issuers do not provide sufficient
external reference data

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Purchasing Background
AXA makes thousands of international payments daily supporting travellers who need
immediate assistance. It handles 8.5 million case files annually in over 200 countries,
employing 6,900 people in 32 different countries to do so. AXA often has to pay
suppliers in far-away places and under circumstances where time for procuring a
service (such as rescue or medical attention) can be critical.
Challenges
• Getting pre-payments to service providers in some countries requires local agents
to handle a lot of cash, involving risk
• Payment on invoice can result in the amounts involved being under dispute ‘after
the event’ creating difficulties for AXA that needs to keep suppliers in far flung
places happy to serve it
• Reconciliation across such a complex organization (with 32 subsidiaries) and its
suppliers globally is a constant challenge
Case 1: Real-Time Payments for Global Assistance
Streamlining global payment processes with lower costs and improved controls

© 2015 Ixaris System LtdOur Prepaid Opportunity 11
Purchasing
The Solution
Case 1: Real-Time Payments for Global Assistance
Streamlining global payment processes with lower costs and improved controls

© 2015 Ixaris System LtdOur Prepaid Opportunity 12
Approach
We created a solution based on our standard Corporate Purchasing application
configured to deliver a single-use virtual card via secure web terminals so that
deployment would not require integration. Each card number created was tagged by
additional data such as the claim number, customer id, supplier reference, cost centre.
This enables perfect reconciliation once settlement records are received.
Results for the Client
• Reduced costs v bank transfer or cheques – particularly cross border, smaller and
fragmented payment
• Improved controls due to better reconciliation and reporting
• Faster payment process – payments issued and received globally in real time 24/7
Results for the Programme Manager
• Multiple revenue streams: fees, interchange share, forex
Purchasing
Case 1: Real-Time Payments for Global Assistance
Streamlining global payment processes with lower costs and improved controls

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Ixaris enables to us to
drastically improve the
disbursement of payments
from all our 32 operating
centres around the world
Nicolas Barsky,
Group CFO
Purchasing
Case 1: Real-Time Payments for Global Assistance
Streamlining global payment processes with lower costs and improved controls

© 2015 Ixaris System LtdOur Prepaid Opportunity 14
Case 2: Payment Optimization for European Travel Group
Direct contribution to the bottom line and improved controls
Background
International online travel agent (OTA) Logitravel purchases thousands of hotel
rooms, flights and other holiday components across the world daily through
automated purchasing processes. As an intermediary between travel services
providers, Logitravel’s margin are slim, and surcharges and forex exposure takes a
huge toll on profit.
Challenges
• Losing 10-20% of margin as a result of payment costs for common types of
bookings such as Low Cost Carriers
• “Surcharges and forex fees a significant threat.”
• “Facing a reconciliation nightmare.”
• Unclaimed hotel booking commission fees running at about 20% as a result of
incomplete reconciliation
Travel

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Working with Ixaris has
helped boost our
margins by 10-20% on
each transaction
Yago Casasnovas,
Collection & Payment Manager
Travel
Case 2: Payment Optimization for European Travel Group
Direct contribution to the bottom line and improved controls

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Opportunities for Perfect-Fit Payments (2): Incentive Payments
This market is growing but many programmes can be unprofitable
Key reasons behind opportunities for virtual in Incentive programmes
• 53% of those who have received an incentive in the UK preferred Cash or Open-loop card
over product, experience or store card
• Reloadable open-loop cards in Europe have to be Chip&PIN – expensive outlay
• Small amounts and irregular pay-outs make such programmes unprofitable
Source: Gx 2013

© 2015 Ixaris System LtdOur Prepaid Opportunity 17
1. Virtual prepaid can address many of the inefficiencies in payments,
and are flexible enough to provide perfect-fit
2. Several market segments are ripe for virtualisation are purchasing,
supplier payments and incentives
3. Ixaris Technologies can offer a range of solutions to enable banks to
offer virtual card programmes today:
– Cloud-based standalone virtual cards platform
– Integration into legacy systems (optional)
– Fully outsourced programme management (optional)
Conclusion: Virtual Prepaid for Perfect-Fit Payments
Virtual delivers the flexibility, economics and reach to solve large inefficiencies

Drop us a line:
Marketing@Ixaris.com
Find out more:
www.Ixaris.com
@Ixaris #PerfectFitPayments
linkedin.com/company/Ixaris-systems-ltd