Mobile Payments and Mobile Commerce # Market overview # Competitive landscape # Region analysis # Value chain As of September 2012 Sources: Gartner, Euromonitor, Mashable, Arthur D. Little, mobilepaymentstoday.com, Sapient Nitro, internetretailer.com, deltapartnersgroup.com, paymentobserver.com

1. Mobile Payments & Commerce
September 2012
@ogillin

2. Agenda
• Market overview
• Competitive landscape
• Region analysis
• Value chain

4. Mobile Payment Transactions Value
by Region
700
Latin
America
600
500 EMEA*
42%
Billion US$
400
CAGR
Asia/
300 Pacific
200
North
America
100
Western
0
Europe
2011 2012 2016
Gartner (May 2012) *EMEA without West EU

5. Top countries in M-Payments
2011 - 2016
30 100
Billion US$
90
25
80
% CAGR 2011 - 2016
70
20
60
15 50
40
10
30
6.4
20
5
1.0 1.8 10
0.4 0.1 0.0
0 0
USA Japan France Philippines China India Germany Norway UK ES NL BE
Euromonitor.com, July 2012, Tablet traffic and Money Transfer transactions not included

6. Forecast assumptions
West EU US Africa/SEA
Web/WAP Web/WAP SMS
Technology
80% 88%
E-commerce E-commerce Money Transfer
Main usage (eBay, A9, Apple) In-store purchase & Airtime Top-Ups
In-store purchase (Starbucks, etc.) Ticketing
Merchandise $53 $43 $10/$20
Money trans. $93 $80 $68/$60
East-EU fastest growth Africa top in Value
Comment
in user but small base APAC top # users
Still fragmented for the next 2 years
Opportunities for regional players to meet local requirements
NFC to max 10% of transactions by 2015 and pick up in 2016
NFC requires change in behavior and multiple stakeholders
Source: Gartner (May 2011)

7. M-Commerce Overview
M-Commerce (Est.)
300
250
200 West EU (+17%)
Billion US$
CAGR 27% North America (+78%)
150 MEA (+8%)
LATAM (+38%)
100
East EU (+12%)
50 APAC (+1%)
0
2011 2016
Euromonitor.com, July 2012, Tablet and Money transfer not included

8. M-Commerce by Region
APAC West EU North America
90 40 160
80 Denmark Canada
35 140
Spain
70 China Norway
30 120
India
60 Germany
Philippin 25 United 100
es Kingdom
50
20 80
40
USA
15 60
30
France
Japan 10 40
20
10 5 20
0 0 0
2011 2016 2011 2016 2011 2016
Euromonitor.com, July 2012, Tablet and Money transfer not included

9. Factors of market growth

11. Source: Sapient Nitro (May 2012)

12. US/world Fast moving Competitive landscape
Business Consumers
Payor / A Party
Transaction Issuers Online Content P2P
Services
Networks
Service / Players
Acquirers/
Processors
POS
Payee/ B party
Government F2F retailers e- / m- retailers Consumers
Enterprise

13. EU Fast moving Competitive landscape
Business Consumers
Payor / A Party
Transaction Issuers Online Content P2P
Services
Networks
Service / Players
Acquirers/
Processors
POS
Payee/ B party
Quick Tap
Government F2F retailers e- / m- retailers Consumers
Enterprise Top 400 EU e-retailer: http://www.internetretailer.com/europe400/list/

14. Square disruption with Mobile POS
$100 $97.4
Principal Transferred
$1.9 Card issuer $0.2 Network $0.5 Acquirer
deltapartnersgroup.com

15. The value is in the services and
customer data
Account control
Service/user
(sign
interface
on, identity, custo
mer data)
Google
Google
Devices Advertising &
Google Nexus S Promotions
smartphone Google Offers
Google Shopper
Card acceptance Payment Bearer/
Trusted Service
network instruments connection tech.
Manager
Citi Mastercard Sprint, Google
Mastercard Google prepaid (via NFC enabled
First Data
Paypass card Nexus S)

16. Where Do you want to be?
http://www.deltapartnersgroup.com/blog/archives/490

17. Appendix

18. Electronic payment value chain
Low margins in Processing / Acceptance areas
Typical payments value chain and margins
1. Issuance
1 2 Processing / Acceptance
2. 3 Acquiring
3.
Payment
Payment Merchant Gateway Merchant
Instrument Settle
Process Process / POS Acquire
Issuance
Online 1.1% 0.9%
F2F 1.1% 0.40% 0.5%
Closed Model like Amex
2.00%
Mobile
wallet 0.8% 0.8%
0.40%
• Associate • Third Party Processors (TPP) focus • Bank focus
focus - own • Processing requires high volumes to be profitable – regulation
customer • Acquiring merchant accounts directly builds scale generally
relationship • Gateway / POS an important aspect of building stipulates
merchant relationships quickly must be a
bank

19. http://8.mshcdn.com/wp-content/uploads/2011/07/GLG_Goodbye_Wallets_FINAL-L_1841.png

20. Top countries in M-Payments
160 100
90
140
% CAGR 2011 - 2016
80
120
70
Billion US$
100
60
80 50
40
60
30
40
20
20
10
0 0
USA Japan France Philippines China India Germany Argentina Norway United Brazil Spain
Kingdom
2016 M-commerce % CAGR 2011-2016
Euromonitor.com, July 2012, Tablet traffic and Money Transfer transactions not included

21. Initiatives in various countries

22. Mobile POS: Square, Izettle, Intuit
+ US Verifone SAIL, US TapPay & TapWallet + NL GlobalCollect’s BOKU (Phone # + SMS)
+ DE Rocket Internet payelen + UK Sage Pay, Mpowa
+ DE Wirecard w/ Deutsche Telekom + IE BoxPay for carrier billing
+ DE StreetPay w/ E-Plus paymentobserver.com
+…