Vodafone is partnering with Intesa Sanpaolo bank to offer a mobile point-of-sale (mPOS) solution for small merchants in Italy. The mPOS solution will allow merchants to accept electronic payments directly on their smartphones and tablets. In phase one of the partnership, Vodafone will announce and co-market the mPOS solution bundled with mobile devices. In phase two, Vodafone sales representatives will directly sell the bundled mPOS solution. Over the long term, Vodafone aims to develop targeted vertical solutions and boost loyalty and revenues by integrating the mPOS into additional services for merchants. The mPOS solution represents an opportunity for Vodafone to differentiate and become more core

1. 24th June 2014
Marco Gioieni
Head of SoHo Marketing - Vodafone Italy
mPOS & MNO:
A new actor into the payments
acquiring value chain

2. About Vodafone
• Vodafone is one of the world’s largest
mobile communications companies
providing a wide range of communications
• Vodafone has equity interests in around
30 countries and more than 50
partner networks worldwide
• it is present in Europe and Africa, Middle
East and Asia Pacific
• Vodafone Global Enterprise division
provides telecommunications and IT
services to corporate clients in over 65
countries.
Vodafone in Europe
24th June 2014

3. 24th June 2014
Market context: trust is increasing but industry still suffering
3
Market by companies Mobile Market share by companies (1-5 lin)
• Less companies effected by crisis
• A growing level of investments
• An expected increase of the
demand
• A boost of household consumption
Enterprise Sentiment increasing:
• Tax and Political context
• Prices
• Unemployment
Climbing stop due to:
ItalianMarketSohoinTelco
(~ vs PY)
(-8% vs PY)
Consumer sentiment index Corporate sentiment index

4. 24th June 2014q qQ
Soho: hard to enlight differentiating assets
• Soho customers are not so loyal and very price “sensible” into a market context with very high
competitive pressure
• Customers perceived MNO as a commodity provider not core for their businesses.
• Differentiation assets are not well perceived by end user customer.
Key challenges

5. 24th June 2014
mPOS is a great market opportunity
• Over 1M of merchants in Italy still don’t own a POS
• From 1st July all merchants will be obliged to receive electronic payments over 30€ if requested by
customers
• mPOS opens to a new market share leveraging on core Telco assets
Opportunity
POS and Mobile POS forecastPOS customers at today
50% accept
payments
26% owns a
POS

6. 24th June 2014
How mPOS could helps to differentiate?
Convergent with core customer
business assets
New telling story for
Sales Force
Leverages on mobility
Moves customer focus far
away from price

7. 24th June 2014
Vodafone & Intesa SanPaolo-Setefi Solution
Ingenico iCMP
• Contactless
• Swipe Card
• Smart Card
Dedicated Setefi App
• iOS
• Android
• Windows
Vodafone assets
• Smartphone
• Tablet
• Fast&Safe network

8. 24th June 2014
Phase1: Vodafone & Intesa Sanpaolo partnership
Announcement
•Press release
•Disclosure to sales channels
Nov-13
Co-marketing launch
•“Soft bundle” with smartphone/ tablet
• ATL campaign
Jan-14

9. 24th June 2014
Phase2: Vodafone & Intesa Sanpaolo partnership
Direct Sale
•“Hard bundle” with smartphone/ tablet +
option (5€/m ARPU)
• Outbound salesforce incentives
Jun-14
How does it works?
• No more need to go to bank local branches
• Audio conference to finalize the contract
• mPos delivered directly to customer’s location
Sales Commissioning
Sales Process

10. 24th June 2014
mPOS as enabler for a new vertical solutions framework
mPOS evolution
• Targeted end-to-end solutions
• Two different app suites according to
customer mobility propensity
•Boost of loyalty and ARPU uplift effects
Q4 14
Vodafone shop
•Smartphone/Tablet
•Mobile POS
•CRM/Loyalty
•Video surveillance
Vodafone mobility
•Smartphone/Tablet
•Mobile POS
•Loyalty
•E-catalogue

11. 24th June 2014
MNO adds value into the acquiring value chain
The Best Network
Top Industry Handsets
Outbound Sales ForceIntegrated Assurance

12. 24th June 2014
• Differentiation is the only key into a mature market with a price
oriented customers.
•Vertical solutions are the way to become more core provider for our
customers  mPOS and the payments ecosystem are a great starters.
•Switching from an inbound to outbound go-to-market strategy opens to a
new market share still not fully discovered.
•Bundling core mobile assets as network,handsets together with mPOS
creates a strong unique selling propositions
Key takeaways

13. 24th June 2014
Thank you
Marco Gioieni
Head of SoHo Marketing - Vodafone Italy
Marco.Gioieni@Vodafone.com