2006 © ViVOtech

Smart Card Alliance Smart Card Alliance –– 2006 Annual Conference2006 Annual Conference

Advances in NFC Advances in NFC & Mobile Payments & Mobile Payments Trials and TechnologyTrials and Technology

Mohammad KhanPresident, ViVOtech

October 3, 2006

T H E L Y D I A NR O U N D T A B L E

2006 © ViVOtech

ViVOtechViVOtech

We enable the third generation of electronic paymentscontactless card payments

quickly expanding to mobiles

We provide market leading systems and softwareContactless POS payment systems

Server software to manage payments, coupons and loyalty

mWallet and OTA servers software

We have a market leadHave shipped close to 200,000 contactless readers. Leading share.Installed in 18 countriesParticipation in majority of NFC trials

High profile investors including DFJ & Nokia

2006 © ViVOtech

Contactless Market is Here and NowContactless Market is Here and Now

US 17 Million Cards Issued - 35,000 Merchant Locations

International: 3 Million Cards Issued - 10,000 Merchant Locations

2006 © ViVOtech

NFC Applications in PaymentsNFC Applications in Payments

NFC Will Enable:

Convenience - A Single Solution for POS, OTA, Online, Transit & P2P Payments

Personal Savings & Rewards

Stronger Customer LoyaltyCustomized One-on-One Services

OTA eCoupon / mPromotionIn-Store Smart Posters

Increased Revenue StrongerDifferentiationStronger Customer Retention

Consumers

Merchants

Mobile Carriers & Issuers

Applications BenefitsPhone Payment/

Coupons at Physical Store

Secured Consumer to ConsumerPayments

Secure Payment of online purchases

Transit Ticket/

Payment

OTA BankingServices

2006 © ViVOtech

Major Carriers and Banks Are Initiating NFC TrialsMajor Carriers and Banks Are Initiating NFC Trials

NFC Trials Announced:

China France Germany Malaysia USA

2006 © ViVOtech

ViVOtech Provides A Complete Technology Solution for 3rd ViVOtech Provides A Complete Technology Solution for 3rd Generation Payment EcosystemGeneration Payment Ecosystem

Contactactless/NFC POS System

ViVOplatform OTA and Management Software

mWallet SoftwareCard Software

2006 © ViVOtech

Atlanta NFC TrialAtlanta NFC Trial

150 Season Ticket Holders

PaymentContactless credit

card payments

Smart postersVideo ClipsRingtones

Team News

Positive Test ResultsExceeded expectations

2006 © ViVOtech

Visa Wave NFC Trial in MalaysiaVisa Wave NFC Trial in Malaysia

• 100 User NFC mobile phone payment pilot in Kuala Lumpur

• NFC enabled Nokia mobile phones with Visa Wave enabled readers Participated by Maxis, MayBank, Nokia, Philips, Visa, and ViVOtech

• ViVOtech provided ViVOwallet software & ViVOpay 5000 contactless readers

2006 © ViVOtech

NFC Forum Developments NFC Forum Developments NFC Forum Developments

Membership & Participation92 Member Companies from 21 Countries37 New Members in 2006 (so far!)50% increase to 150+ participants at NFC Forum-Helsinki

Standards ProgressCompliance with ISO 14443 and ECMA contactless card standardsAnnounced first four specifications on Aug, 2006. Available free of charge:

• NFC Data Exchange Format (NDEF) Technical Specification • NFC Record Type Definition (RTD) Technical Specification • NFC Text RTD Technical Specification • NFC URI RTD Technical Specification

Market Communication ProgressNFC Target, Sub, & Compliance Mark Created; Trade Marking In-Progress

InteroperabilityEase of UseReliability

Four NFC Sponsored Events and Three Endorsed Events in 4Q06All New Website: www.nfc-forum.org30% of Yearly Handset Adoption Projected in 2011 (450M units/yr)

2006 © ViVOtech

MobeyMobey & Mobile Payment Forums& Mobile Payment Forums

Mobey ForumFormed in 2000 to accelerate User-Friendly Mobile Financial Services

28 Members

Generated multiple documents including:

Mobey Forum Security Element Technical Analysis (Executive Summary)

Mobile Payment ForumFormed in 2001 to create a framework for the deployment of simple, secure and interoperable m-payments.

26 Members

Generated white papers including a current draft version of:

Mobile Proximity Payment Issues and Recommendations. Mobile Payment Configuration and Maintenance, June 12, 2006

2006 © ViVOtech

Smart Card Alliance Smart Card Alliance –– 2006 Annual Conference2006 Annual Conference

Mohammad KhanPresident & Founder, ViVOtech

October 3 2006

Thank You!Thank You!

T H E L Y D I A NR O U N D T A B L E