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www.smartcentric.com

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SmartCity “Instant Award” Loyalty Application Overview

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“A smart card ‘e-purse’ cashless payment solution with loyalty and multi-application development

platform for closed or open environments”

What is SmartCity?

• Fully audited smart card payment system• Advanced multi-party loyalty application• Turnkey solution or integrated with other apps• Powerful APIs for vertical market integration• Scaleable from 1,000’s to millions of cards• Worldwide support from industry leaders

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SmartCity

• Secure off-line cashless payments– Merchant POS

– Unattended vending

– Internet

• Advanced Loyalty• Access control (physical, logical)• ID/membership• Custom applications

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SmartCity in Retail

• Shopping Malls• Department stores• Supermarkets• Chains• Fast food• Video rental• Etc.

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Retail Requirements

• Smart card based gift certificates– high security– eliminate cash back payments– breakage

• Loyalty– repeat customers– target marketing to most profitable customers– increased sales– competitive edge

• E-purse

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Manny’s StorePOINTS CARD

4.9 5.3 5.74.1

6.3 6.5 6.9 7.2

7.77.4

Bill’s StorePOINTS CARD2.9 3.7 3.8

2.4

4.1 4.6 5.9

The Paper “Punch Card”

+ Very low cost+ Simple to implement+ Increase sales

- No customer info- Difficult to measure success

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CUSTOMERDATABASE

CUSTOMERSALES LOG

TERMINALSOPERATORSSALES LOG.

POINTS CENTRALREPOSITORY

DEMOGRAPHIC ANALYSIS

BUYERS TRENDS

CARDHOLDER GRADINGPERIODIC BONUS POINTSPOINTS TRADING

PERFORMANCE MONITORINGFRAUD DETECTION•DATA MINING

•PRECISION RETAILING

•1-2-1 Marketing

Customer Relationship Management (CRM)

+ Detail customer info+ Track buying habits+ 1-2-1 marketing

- On-line only- Larger initial investment

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Smart Card Based Loyalty Systems

Punch Card

CUSTOMERDATABASE

PAPER PUNCH CARD

INDIVIDUAL PROGRAMS•MULTIPLE MERCHANTS•FULLY AUDITED•MULTIPLE LOYALTY POOLS

CUSTOMERDATABASE

CUSTOMERDATABASE

SHARED PROGRAM•MULTIPLE MERCHANTS•FULLY AUDITED•SHARED LOYALTY POOL

SMART CARD COMBINED WITH CRM•FULLY AUDITED•COMBINE WITH DATABASE MINING

MULTIPLE “PUNCH CARDS”•MULTIPLE MERCHANTS•ANONYMOUS

“MASTER” SHARED PROGRAM COMBINED WITH INDIVIDUAL PROGRAMS

CRMSYSTEM

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SmartCity “Instant Award” Loyalty

• Complete off-line operation• Points accumulate on card from purchases

and/or transactions (visits)• Multiple programs • Multiple merchants• Multiple loyalty purses on card• Configurable award/redemption rules• Award points for e-purse and/or other

payment methods (cash, credit/debit, etc.)

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Simple Loyalty

• Running point balance stored on card• Prints receipt/coupon when award level

reached• Target Markets:

– Cafeterias

– Small merchants

– Entertainment centers

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Advanced Loyalty

• Supports multiple loyalty programs• Individual merchant programs• Multi-merchant programs (pooled points) • Multiple loyalty purses (programs) per card• Each loyalty purse stores on card:

– Running point balance

– Accumulated (lifetime) points

– Total visits (transactions)

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Advanced Loyalty (cont.)

• Adjustable program dates– Program start date

– Program end date

– Program (point) expiration date

• Multiple card levels (silver, gold, platinum, etc.)• Adjustable discounts, award rules, and

redemption rules per card level

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Advanced Loyalty (cont.)

• Accumulate “Points per Value” and/or “Points per Transaction”

• Auto point redemption (at award level)• Accumulate points for selected redemption• Multiple promotional programs

– Promotion program start dates

– Promotion program end dates

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Advanced Loyalty (cont.)

• Complete host transaction history support• Detailed auditing and statistic reporting• Target Markets:

– Shopping malls

– Large chains

– Multi-merchant programs

– Sporting stadiums/arenas

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Merchant POS Loyalty Features

• Award points for purchases and/or visits• Point redemption• Automatic activation/deactivation of

promotion periods• Optional automatic discounts based on

cardholder profile • Merchant activated bonus point option

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Merchant POS Loyalty Features

• View loyalty and e-purse balance• POS printer receipt/coupon options

– Cardholder name

– Points this purchase

– Current point balance

– Accumulated (lifetime) points

– Accumulated visits (transactions)

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Loyalty Purse Data

• Balance 1 and balance 2 (backup)• Points counter 1 and 2 (backup)• Transaction (visit) counter 1 and 2 (backup)• Flag 1 and 2 (for anti-tearing)• Expiration date• Last award date, Last award amount• Last redemption date, Last redemption

amount

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Loyalty Transaction Record Format

ITEM

Transaction type (award/redemption)

Card Transaction Counter (CTC)

Terminal Transaction Counter (TTC)

Card Serial Number (CSN)

Card type

Multiplier (for bonus points, 0 = none)

Transaction value

Loyalty purse balance

Loyalty purse number

Device ID

SIZE

1 byte(s)

3

3

8

2

1

3

3

3

8

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Loyalty Transaction Record Format (cont.)

ITEM

Level/Promotion/Rule IdISO card numberLoyalty Purse Class IDLoyalty purse Type IDLoyalty purse Version IDFlag 0 = Promotion, 1 = LevelCard level Purse CTCTransaction date and timeMAC

SIZE

810 (19 digits)11111364 (lower 4)

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Reporting

• Customizable with Crystal Reports Pro• Example - Points awarded, redeemed, and/or

outstanding• Reports per:

– System and/or program

– Merchant or groups of merchants

– Device or groups of devices

– Cardholder or groups of cardholders

– Specific time periods (promotion evaluation)

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Loyalty Programs Setup

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Loyalty Program Setup - General

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Loyalty Setup - Purse(s) Supported

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Loyalty Setup - POS Display Options

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Loyalty Setup - Card Levels

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Loyalty Setup - Card Levels - Level, General

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Loyalty Setup - Card Levels - Level, Award Rule

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Loyalty Setup - Card Levels - Level, Redemption Rules

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Loyalty Setup - Card Levels - Level, Redemption Rules - Add Rules

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Loyalty Setup - Card Levels - Level, Redemption Rules - Redemption Rule New/Edit (Upgrade)

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Loyalty Setup - Card Levels - Level, Redemption Rules - Redemption Rule New/Edit (Redemption)

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Loyalty Setup - Card Levels - Level, POS Options - Receipt Options

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Loyalty Setup - Promotions

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Loyalty Setup -Promotions - General

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Loyalty Setup - POS Terminal Multipliers (for merchant controlled bonus points x2, x3, etc.)