Mobile Payments – The choice of a new generation Give your customers more ways to pay with mobile payments. Today’s customers expect convenient and seamless payments. Indue can help you deliver, with our secure mobile payments solution. With Indue, your customers can easily transact using Apple Pay and Google Pay, straight from a digital wallet on their smart phone or wearable device.

1. 1
THE MERITS OF MOBILE
mobilepayments
Commercial-in-Confidence
Dave Hemingway | Chief Commercial Officer

2. Our Story
• Australian owned and operated, Indue has been
providing payments solutions to financial institutions,
government and commercial clients for over 50
years.
• Locally incorporated and owned by 17 Australian
Mutuals and Credit Unions.
• Originally formed to provide operational banking
services to owners.
• 15 years ago, Indue diversified into providing
additional payment products and services to the
Australian market.
• Over 150 employees across 2 Australian office
locations in Sydney and Brisbane
Delivering payment solutions since 1965
2Commercial-in-Confidence
Next: Indue Vision & Purpose

3. To be the leading partner of innovative payment solutions to our customers in
Australia and New Zealand
To drive competitive advantage for our customers by helping people pay
Our Vision & Purpose
Why we do what we do
Next: Our Business

4.  Credit, Debit &
Prepaid card
processing
 New Payments
Platform
 Orion Financial
Crimes Monitoring
 Mobile Payments
(coming soon)
Technology
Products
Our Business
Indue combines payment technology, scheme sponsorship, clearing and
settlement, operational support, all wrapped up within a governance framework.
Payment System
Sponsorship
 Authorised Deposit-
taking Institution
(ADI)
 Australian Financial
Services Licence
(AFSL) Holder
 Licensee Visa,
Mastercard, eftpos,
BPAY, DE etc…
Clearing &
Settlement
 Direct & indirect
exchange of
validated & compliant
payment data
 Funds Settlement
Operational
Support
 Contact Centre
 Monitoring,
Reporting &
Analytics
 Inventory
Management
 Disputes &
Exceptions
Governance &
Risk
 Specialist in
complex scale
deployments
 Local regulated
vendor, rigorous
compliance and risk
oversight
 Robust program
delivery and
governance
Next: Payments in Australia

5. • Majority of Australians now use Digital
Payment Solutions.
• Australian modern payments infrastructure
key to mobile success.
• US & China experiencing payments
challenges due to terminal infrastructure.
Payments in Australia
In great shape to grow Mobile Payments
Next: Payments in Australia

6. Payments in Australia
Digital Payments Usage in Last 12 months
Next: Mobile Benefits
• Awareness among Australians of
digital payments is now an almost
universal 93.9%, with 72.4% using at
least one digital payment method
over an average 12 month period.
• This is likely to continue increasing
and will progress Australia towards a
cashless and cardless society.
• This is a potential threat to existing
banks if they don’t take on the new
disrupters and technologies.
Source: Roy Morgan January 2019

7. • Many people use wearables such as the iWatch or hold
their phone in their hand which is easier than pulling out a
wallet, and lessens need for physical wallet.
• Apple/Samsung support CD-CVM so a PIN is not
required when the txn is over $100 (subject to terminal
support) unlike with a contactless card.
• More secure through the use of tokenisation in particular
in a COF arrangement with in-app purchasing.
• Transactions are authenticated (Apple & Samsung)
making them more secure than ordinary contactless
payments.
Mobile Benefits
Why is customer behaviour pivoting to Mobile?
Next: Product Vision

8. • Relevance in the marketplace | Don’t get left
behind
• Point of Differentiation
• Selectively innovate to remain front-of-mind
for customers
• Simple and safe
• Deliver a seamless customer experience
Mobile Benefits
Why is customer behaviour pivoting to Mobile?
Next: Product Vision

9. Product Vision
Provide a compelling on-behalf-of service allowing
Issuers to provision cards in mobile wallets with minimal
system or operational impacts
Next: Who are we working with?
Bringing Mobile Payments to life for our customers

10. 10
Who are we working with?
And of course our issuers…
Token Service Provider (TSP) Switching Partner
Launch Wallets
Next: How it works
Partnering for success

11. Provisioning and Transaction Flow
Issuer
ID&V, Notifications
Visa TSP (VTS)Acquirer
Apple Pay
Purchase Transaction Flow
Provisioning Flow
Next: Digital Gift Cards
• All transactions run through Indue Fraud monitoring system
24x7 monitoring
Machine Learning and AI
How it works

12. Digital Gift Cards
Next: What is involved?
The future looks bright!
• Digital gift card programs can instantly strip costs
from the physical gift card program for potential
uplift in commercial return as they do not require
card manufacture, stock or physical distribution.
• Digital Gift Card programs are attracting the
attention of major retailers – Indue is currently
working with two major retail groups to bring this
solution to market late 2019

13. There are key components that need to be solved to support mobile payments
What is involved?
Provisioning –
ID & V
Scheme Enrolment &
Configuration
Lifecycle Management
Fraud Monitoring
Processing,
Chargebacks &
Reporting
Indue will perform the necessary configuration work for enrolment into an
OEM Mobile Wallet solution for each client.
Indue will handle the provisioning requests from the OEM Mobile Wallet by
providing user authentication and managing the notifications on behalf of
our clients.
Indue will manage the token lifecycle on behalf of our clients.
Where relevant, Indue will provide fraud transaction monitoring for card
transactions via OEM Mobile Wallets.
Indue will provide operational support across processing; managing
disputes and chargebacks; and reporting to clients, scheme and OEM
Mobile Wallet providers.
Next: What will issuers need to do?

14. 5 key tasks to support the project
What will Issuers need to do?
01
Card
Artwork
Provide Card Artwork,
T&Cs & agree the
authentication
rules/requirements with
Indue for provisioning
requests
02
Cardholder
Provide cardholder
demographic data into
the Orion Financial
Crimes platform (if not
already doing so)
05
Banking
App
If you have an iOS
mobile banking app,
work with your provider
to support in-app
provisioning (not Day 1)
04
Operational
Update Issuer
operational procedures
to be able to respond to
mobile payment related
queries and card status
changes
03
First Data
Provide card data to
First Data (Note that if
First Data do PIN
validation for you then
this is already done)
Next: Mobile Momentum

15. 15
Mobile Momentum
Next: Evolution
• Since CBA launched Mobile Payments
January 2019, significant increase in enquiry
and mobile project implementation work has
been undertaken by Indue with all Waves
fully subscribed.
Waves are filling fast

16. • The way in which we make payments is evolving
quickly and will continue to evolve into the future.
• Financial institutions are competing to create ever
increasingly frictionless payment experiences for
consumers.
• Digital payments provide businesses with rich data
on what the consumers are purchasing, how they
are purchasing it, and where.
• It is already feasible for someone to go about their
daily activities without the need for a physical wallet
or card.
Evolution
Frictionless payment systems
Next: Revolution

17. • Growing proliferation of smart phones and
wearables with integrated payment
technology such as Apple Pay and Google
Pay.
• People will come to expect the minimum
amount of effort when making a payment.
• The critical issue is matching your
customers’ expectations, desires, and
current needs.
Revolution
Frictionless payment systems
Next: Continue the Conversation

18. 18Commercial-in-Confidence
Dave Hemingway
Chief Commercial Officer
Follow us today
Email: indue@indue.com.au
Continue the Conversation
Website: indue.com.au