Beyond Payments: NFC Value for the Merchant Ecosystem · NFC Smart Poster at Retailer 3. Marketing...

ViVOtech proprietary and confidential materialSlide 1

Beyond Payments: NFC Beyond Payments: NFC Value for the Merchant Value for the Merchant

EcosystemEcosystem

May 2009May 2009

CTST 2009CTST 2009

ViVOtech proprietary and confidential material

ViVOtech At a GlanceViVOtech At a Glance

ViVOtech is the leading provider of Third Generation Payment SolutionsContactless & NFC mobile phone paymentsMobile phone Over the Air provisioning infrastructure softwareMobile marketing, promotion, prepaid and loyalty application Software

ViVOtech has a commanding market lead and first mover advantage75% market share of contactless readersOver 480,000 contactless readers shipped to 35 countries Participant in most global NFC mobile payment trials

Prominent financial investors and market leading strategic investors and partners Citi, FDC, Nokia, Motorola, NCRAlloy Ventures, Draper Fisher Jurvetson (DFJ), Miven

ViVOtech has been recognized by Top Industry Players


Contactless Card Issuance in United States

* In pilot

*

Over 60 Million Contactless Cards Issued in US by end of 2008

Trend on Issuing Co-Branded Contactless Cards is Growing


Over 500,000 Contactless/NFC Readers are Already Enabling Merchant Acceptance at 120,000+ Locations in United States


Contactless is a Global Phenomena Contactless is a Global Phenomena ––Providing the Building Block for Mobile PaymentsProviding the Building Block for Mobile Payments

90+ M Cards Issued Worldwide 180,000+ Merchant Locations Enabled

Americas:United StatesCanadaMexicoGuatemalaBrazil

Asia PacificTaiwanMalaysia,SingaporePhilippineIndonesiaHong KongThailandChinaIndiaAustraliaKoreaJapan

Europe Middle East AfricaUnited KingdomFranceItalyAustriaTurkeyUAESwitzerlandSouth AfricaPolandSpainLebanonNetherlandIcelandSweden


Worldwide Contactless Forecast

“World Contactless Smart Card Markets” – Frost & Sullivan, 2008


NFC Beyond Payment and Transit

• MNOs are Working on Commercial NFC Business Models, but:

Significant Up Front Cap Ex

Limited Revenue Potential from Financial Institutions in Payment Cards Management

Equally Constrained Revenue Potential in Transit Cards/Tickets

• A Third Ecosystem Is Needed to Launch-- Merchants:

Drive impromptu traffic to partner stores

Increase in-store up sell

Increase cross marketing revenue & differentiation


Recent US Retail Survey Shows Great Promise for Contactless & Mobile

Retailer Survey ResultsDo you support conversion to Contactless and Mobile?


Recent US Retail Survey Shows Desired Functions for Mobile

Retailer Survey ResultsWhat is preferred sequence of implementing transactions?


1. Customer Taps NFC Smart Poster at Retailer

3. Marketing server issues personalized promotions to phone based on location, interestand personal profile.

Customer #1

Customer #2

Use Case 1: NFC Mobile Allows Location Based, Use Case 1: NFC Mobile Allows Location Based, Interactive, OneInteractive, One--onon--One Mobile Marketing ProgramsOne Mobile Marketing Programs

Electronic Redemptions

Tag I.D.2. Consumer and Tag ID info sent to Back-End

Consumer I.D.


User taps the NFC phone to the Retailer Smart Poster

NFC phone will connect to Retailer content website

Browser will ask user to confirm Retailer gift card download

Phone receives the SMS and open wallet application

Wallet will initiate the communication with OTA server

Wallet will initiate the card download through OTA servers

Card is successfully downloaded and ready to use by customer

User can use the card at point of sale terminal for top-up or payment

Note: Card could be co-branded or private level

Use Case 2: Retailer Gift Card Purchase W/ NFC PhoneUse Case 2: Retailer Gift Card Purchase W/ NFC Phone


Use Case 3: Online Purchase While Shopping at RetailerUse Case 3: Online Purchase While Shopping at Retailer

User taps the NFC phone to Retailer Smart Poster

NFC phone will open ViVOwallet application

Wallet will provide product description based on Smart Poster

Wallet will display product cost when user clicks “Buy”

At check out, wallet will display all credit/debit cards in wallet for payment

Customer will select card for payment

Wallet will show the confirmation page with the check out basket

Wallet will connect to retailer back end for authorization and display tracking information

Product will be shipped to customer ship to address.

Note: Customer can also use retailer card or coupons during purchase


ViVOtech Solution Delivers End to End Experience

1. Tap your phone on “Find Your Burger” NFC Poster at a BART Station in San Francisco

2. Get directions to the nearest Jack in the Box on your phone screen

4. Pay for your meal with your Jack CA$H prepaid card on ViVOpay readers

Jan Jan –– May 2008 Trial: Sprint/BART/JIB/ViVOtech Trial May 2008 Trial: Sprint/BART/JIB/ViVOtech Trial -- Full OTA Full OTA Provisioning of Transit and Merchant Cards.Provisioning of Transit and Merchant Cards.

3. Wave your phone on the Turnstyle to ride the BART to your favorite Jack in the Box location


•Over 8 of 10 (82%) indicated that use of Mobile Wallet was somewhat or very easy•Most respondents were somewhat or very satisfied with the benefits delivered.

Note: Discount pricing was only provided for the BART fare.

BART Survey Results


ViVOtech-Enabled NFC Pilots: Industry Firsts

*Pilots announced using ViVOtech NFC Software


Results Highlights from ViVOtechResults Highlights from ViVOtech--Enabled TrialsEnabled Trials

75% of Participants Preferred Paying with NFC Phone vs. Card

Personalized eCoupons Very Popular and Highly Redeemed

87% of Participants Want NFC Payments on Their Next Phone

Easy Security: Swipe Finger ‐‐MasterCard is Ready to Pay

Users Asked for More Locations to Make Purchases

Users Wanted All Their Cards and Tickets on Future NFC Phones

80% of Participants Found the Mobile Wallet Easy to Use

9000 Transit Rides Taken on BART Using NFC phone

BART EZ‐Rider cards OTA Topped‐Up Over 800 times


ViVOtech Provides Essential Infrastructure Software & Hardware for Contactless & NFC Mobile Ecosystem

(1)POS Infrastructure

Hardware & Software

(3)Mobile Marketing

ApplicationsSoftware

(2)NFC Mobile Payment

Infrastructure Software


Mohammad [email protected]

415-609-0208


Worldwide NFC Mobile Handsets Forecast

0

50

100

150

200

250

300

2009 2010 2011 2012 2013NFC-Enabled Handsets Forecast in Million UnitsABI Research, December 2008

(Mu)


Branded Contactless Cards Forecast for US Market

020406080

100120140160180200

2006 2007 2008 2009 2010Jupiter Research Forecast, July 2006

Actual Issuance ViVOtech Revised Projection


Multiple Add-on Reader Models Available for Contactless/NFC Acceptance

Countertop Applications Drive-Thru and MountedApplications

Countertop / Mounted/ IntegratedFor Existing Kiosk/ATM

Taxi Cabs/ Drive-Thru

For New Kiosk/ATM


ViVOtech Application Management System (AMS) for NFC Mobile Applications

• ViVOplatform has modular, extensible and flexible architecture using best of breed Java technologies

• Is designed for “customization by configuration” which enables merchants and banks to customize and personalize at runtime without making code changes,

• Supports promotions and advertising to mobile phones thru SMS, emails, and mobile wallet

• Architected to easily integrate into multiple POS environments and financial networks and to bridge into the Over-The-Air (OTA) delivery infrastructure

• Gift/Prepaid cards,

• Loyalty,

• eGift,

• Promotions

• Coupons

• Smart poster management

• Location based marketing

• Coalition marketing

• Messaging (SMS)

Real-time Gift, Prepaid and Loyalty Platform

• Web Based Merchant Customization by Configuration

• Web Interface for Card Holders and Merchants

• Triggered based marketing, email, and reporting

• POS and System Integration using different Protocols

• Integrated as well as independent applications

• Extensive Message Infrastructure

• Hosted ASP and License Models

Key Applications Platform Features


ViVOtech Over-the-Air Management Software for Trusted Servicer Managers (TSM)

Patented Over-the-Air Management System (OMS) for SIM (UICC) and Embedded NFC phone supporting both

Issuer Initiated Push Provisioning

Consumer Initiated Pull Provisioning

Easy to use, powerful, flexible, and multi-application mobile wallet

OTA provisioning of branded and retailer cards, Transit, ePurse, Loyalty, Coupons, and Promotions

Two server architecture for maximum flexibility

Issuer Server

Control Server

Tightly integrates multiple payment applications, coupons, tickets and offers to be electronically accepted by ViVOpay POS Systems

Beyond Payments: NFC Value for the Merchant Ecosystem · NFC Smart Poster at Retailer 3. Marketing...

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