e-PaymentsJoe Seunghyun Cho

Chairman, Marvelstone Group

FINTECH1

FINTECHA technological segment that is disrupting the functions and systems of banking and financial services

Fintech provides an opportunity to supply financial and banking services to consumers through the power of technology

FINTECH ECOSYSTEM

Source: The Pulse of Fintech, 2015 in Review, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) March 9th, 2016

GLOBAL FINTECH INVESTMENTS

Source: The Pulse of Fintech, 2015 in Review, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) March 9th, 2016

ASIA FINTECH INVESTMENTS

Source: The Pulse of Fintech, 2015 in Review, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) March 9th, 2016

ASIA FINTECH INVESTMENTS

E-PAYMENTS2

What is e-Payments?Transfers of value which are initiated and/or received using electronic devices and channels to transmit the instructions.

Source: https://www.betterthancash.org/tools-research/toolkits/payments-measurement/focusing-your-measurement/introduction

e-Paymentscredit cards, debit cards, prepaid cardsCARD PAYMENTS

DIGITAL PAYMENTS2

MOBILE PAYMENTS3

1

PayPal, Bitcoin

mobile wallets, storage value accounts

E-PAYMENTS ECOSYSTEM

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Mobile wallet

POS

Digital currency

Mobile money

Direct carrier billingChip & Pin Cards

Contactless Cards

Wearables Stored Value Wallets

Remittance

E-PAYMENTS STAKEHOLDERS01 Non-bank playersTelcos, tech giants and other non-FIs have been innovating to capture more revenue

02 Local banks

03 Global banks

Have better understanding of local behaviours, needs and wants as competitive advantage

Strive to win through scale due to their global business operations

E-PAYMENTS PLAYERS

IMPORTANCE OF E-PAYMENTS

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Accessibility to financial resourcesLimited available funds (cash and cheque) for transactions. Merchants reluctant to accept big amounts due to risks.

1

SecurityGrowing trust and safety in security features driving consumption in payments.

2

TransparencyElectronic payments offer higher transparency than cash.

3

KEY DRIVERS

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Non-FS PlayersTechnology giants, telcos

RegulationConducive regulatory

environment

AdoptionIncreasing adoption of various

forms of payment modes

TechnologyTechnology is the key enabler

of the Internet and fintech

ConsumerGrowing middle class and

millennial adoption

Mobile PenetrationExponentially increasing

mobile and smartphone penetration

GROWTH&POTENTIAL

3

BUSINESS MODELS

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1. Operator CentricOperator acts as the acquirer, payment network and issuers

2. Bank CentricFinancial institutions own payment systems; cards payments,

3. CollaborativeCollaboration between banks and operators

4. Peer to Peer3rd party company that links customers, merchants and bankers.

GROWTH STAGES

IDENTIFICATIONIdentify the current problems or gaps in the market

CONCEPTUALISATIONConceptualize a solution to the pertaining to the problem

VALIDATIONIterate and validate all solutions in order to generate initial user growth

EXIT & MOREIPOAcquisitions,Cash Cow,

SCALINGGrow, grow, grow.Measurable KPIsMarket traction

1 2 43

SEED

SERIES A SERIES B, C, D..

EXIT

5

INVEST4

INVESTMENT CONCERNS

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SCALABILITY SECURITY PATENTS

NICHE COMPLIMENTARY REVENUE SOURCES

BURN RATE

VALUATION METRICS

PE Ratio Profits EBITDA

MultipleEV

EBITDARevenue

sEPS

Growth

IT DEPENDS

VALUATION METRICSPotential of new marketsPotential of expansion in existing marketsPotential of captive audience

POTENTIAL

TRACTIONQuantitative evidence of market demand2

STRENGTH OF MANAGEMENT TEAMExperienced professionals vs new entrepreneursTrack recordPotential?

3

1

COMPETITIONNumber of competitors and barriers to entry4

THANK YOU