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Transcript of Person-to-Person Mobile Payments money made simple Cliff Canan (CEO) E-mail: [email protected]...
Person-to-Person Mobile Payments
money made simple
Cliff Canan
(CEO)
E-mail: [email protected]: www.nooch.comTwitter: @NoochMoney
Nooch
Defining the Status Quo
What’s changed? Generation-M
P2P Opportunity : Solving a real problem
Merchant Value-Add: 1-3 years out
Keys for success in P2P
Topics
Nooch Incorporated – Proprietary and Confidential.
No P2P Solution
ATMsInconvenient,
High fees
PaybackBets, dinner
tabs, & friend-based debt
Cash is Scarce
People carry less cash
The Problem
Nobody likes a MOOCH:
Status Quo
<10% Americans use any of theemerging platforms… yet.
…outdated, inefficient, and NOT
GOOD ENOUGH
Today’s Status Quo:
What’s Changed?
Generation-M• Simple• Social• Secure
• Close to free
More smartphones sold than PCs in 2011
Social Media
Curse of the app store
Person-to-Person mobile payments
for:• college students• small groups• micro-merchants
• Native iPhone app – 3rd generation, simple UI
• HTML5 mobile web site for any smartphone
• All functions from app
• Security: intelligent fraud ID & risk management
• PCI compliant on SSAE 16 certified private servers
• All accounting databases
Technology
The Solution: Nooch
FRONT END
BACK END
How Nooch Works: P2P Transfers
Home Screen
Select Recipient
(Facebook, phone contacts, or
email)
Enter Amount
Confirm PIN
Nooch: After Transfer
Recipient Notified Instantly
Sender’s Reciept• All details
• Easy, big Dispute button
Sender’s Activity
Sort by type, time, location, amount,
etc.
Nooch Incorporated – Proprietary and Confidential.
Generation-M
Among College Students:
• 84% carry less than $50
• 89% use ATM at least monthly
• 73% pay friends/peers regularly
$9.7 billion per year donated to charities & non-profits
$7.1 billion per year spent on ATM fees
$2 billion per year spent on fraternity & club dues
$1 billion per year spent on fantasy sports
USE CASES
Generation-M
Mobile Services Among the Top 100 Banks
Banks are rapidly adopting mobile capabilities, but P2P is not yet a prominent offering outside of the largest
institutions.
P2P Market Opportunity
Electronic P2P is an $80 to $120 Billion market
opportunity…
P2P Market Opportunity
Sources: CashEdge Presentation at NACHA’s Payments 2010 Conference, April 2010; CashEdge Presentation to the FRB, May 2011; USAA interview with Mobile Payments Today, April 2012; Fiserv Presentation at 2012 Card Forum & Expo, May 2012; Wells Fargo Presentation at 2012 Mobile Banking & Commerce Summit
Student Spending All U.S. Adults - Volume by Use Case (in billions)
Nooch offers Banks:early market leadership in the
erupting mobile payments space, and a competitive
technology edge for tomorrow.
Bank Benefits Market ready mobile product
Other banks’ customers without acquisition overhead
Entry into college market: Gen-M
New fee sources
Nooch’s Value Add
Nooch offers “Generation-M”:
a quicker & more convenient way to pay friends anytime,
anywhere, right from a smartphone.
Consumer Benefits Payments anytime, anywhere
Cheaper than ATMs, PayPal
Quicker than checks or wire transfer
Simplest interface – just a name
Nooch Incorporated – Proprietary and Confidential.
Business Model: Start with P2P
T I M E
User Acquisition
• College Ambassadors
• Viral marketing• Inbound/SEO• Facebook
Person-to-Person (P2P)
• Flat Fee, paid by sender
• No other fees
Person-to-Group (P2G)
• Frats, non-profits
• Events
• Small merchants (pizza shop, bars)
Merchants
•2% fee (undercut credit cards)
• Customer data
•Acquisition & Loyalty
Future Revenue: Ads, Coupons, DATA
Large user base
Location-based data
Micro-targeted
ads, coupons
High profit
potential
Partners
UD on CampusCollege
Ambassador Program
At MediaBranding,
Graphic Design
ACM AdvisorsFinancial Strategy
Marketing
Evolve IPServer Hosting & Network Security
The Seven SoftServer Hosting & Network Security
Technical
TARGUS InfoUser
Verification & Validation
Awards & Recognition
Duke Start-up ChallengeWinner: Judges’ Choice ($5,000)
Vator SplashTop 10 Finalist
Recognized by Council for Entrepreneurial
Development
Baiada Institute Incubator Comp.
Winner: Judges’ Choice ($40,000+)
Invited toPlug and Play Startup Camp Incubator
Silicon ValleyKillerStartups.com article
Invited to presentPlug and Play University Expo
Silicon Valley
Social GraphConnect with FB,
Twitter, LinkedIn, Four Square, Pinterest, and
more
Merchant Benefits
Free advertising & loyalty
21st century targeting
Customer Incentives
Discounts for public posts, check-insGame Mechanics
Future Opportunities - Merchants
• Intelligent Analytics & Metrics• Account history with merchant• Risk management history
• Transaction session information
• Tweet with payment for discount
• Customer engagement• Referral traffic
Merchant Features: Geo-Location
Location-Based Search:• Users presented list of restaurants
closest to them
• Automatically suggest a restaurant to pay when a user opens Nooch
inside that restaurant
Benefits: Speed/convenience for
customers
New first-time customers
Future Opportunities
Micro-Targeted Ads• Relevant ads based on spending in
real-time
• Location-based options: Geo-Fencing
Micro-Targeted Coupons, Offers
Built-In Menu:• Restaurants can add their own
menu with prices
• Mimic online shopping carts
• Updated via web-based portal to make changes instant &
easy
Restaurant Features: E-Menu
Benefits: Efficiency. Servers can focus on
serving
Experience. More control to customer over their experience
Cost. Save on printing, updating menus
Paperless Accounting:
• User-selected items
• Clear & easy to read
• User sends order to bar
Benefits: Efficiency. Servers can focus on serving
Consumer Experience. More control to customer
Cost. Save on printing, updating menus
Merchant Features: Digital Receipt
Other Options:• QR Code
• Bar Code
Nooch Incorporated – Proprietary and Confidential.
Trust Established players Fragility
Infrastructure (tech) Cash in/out Security Reliability
Network Chicken and egg effect
Barriers to Entry into Mobile Payments
NFC?
Problems with NFC
Adds “new” hardware Money Laundering Suspcious activity
Security concerns (real & perceived)
Active/Passive
Practicality Proximity Not faster Not even close to ubiquitous – value to merchants??
Not a “Mobile Wallet”! What about… license, loyalty cards, job ID, medical insurance card, Business cardsNFC. Not For Consumers.
Nooch Incorporated – Proprietary and Confidential.
P2P TransferRemittances
Virtual Goods
Keys for New Models: SOLVE A REAL PROBLEM. Unserved target
markets
SIMPLICITY. Simple interface, UX – NO NEW HARDWARE
SCALABILITY. Bottom-up, not top-down
TRUST. Make security priority #1
PARTNERSHIPS. Bank/telco/CC, tech, & marketing
Merchants/Retail
Keys to Success
Person-to-Person Mobile Payments
money made simple
Cliff Canan
(CEO)
E-mail: [email protected]: www.nooch.comTwitter: @NoochMoney