neupai mobile topup

Simple | Mobile | Payments

November 2010

The Rosetta Stone between Banks and Carriers

NeuPai Confidential

Mobile Topup Today

Carriers Card Distributor

Retail Store

Topup Card Cash

User puts in Number to Phone

•  Expensive distribution channel

•  High loss rate due to cash transactions

•  Left out of frequent transactions •  Left out of consumers minds

Carriers

Banks

Consumers •  Inconvenient to get cash and

topup

•  Unnatural to use a manual process for a digital good

Banks Under Siege

Pools Flows

New Companies

Growth of Non-Bank Payments 29% CAGR

Increased Regulatory Oversight

Basel III

AML

ATF

Unbanked Growth

Mobile Regulations

Technology Advances

Customer Demands

Pools Flows

NeuPai’s USP

 NeuPai will become the Rosetta Stone for Banks and Carriers by connecting their disparate networks.

 Carriers want to reduce the cost of

mobile topups.  Banks need to increase transactions and

customer touchpoints

Banks Telecom

NeuPai Confidential

“Mobile topup in Latin America is primed for optimization, today mobile topup is a cash based and inefficient system relying on local merchants.

Telefonica would like to see a system where our customers would get access to a more convenient solution while Telefonica gets paid faster and reduces our distribution costs.

Creating specialized integrated relationships with banks is one way to achieve this. NeuPai has the right approach and experienced team to become a relevant player in this space”

Pablo Montesano – Director of Financial Services

Worlds 3rd largest Wireless Telecom

Confirmation

NeuPai Confidential

“As a leading global bank HSBC sees the value in connecting the disparate and varied mobile telecom providers in the 100+ markets that we serve.

The difficulty is that banks and telecoms speak different protocols and standards. HSBC supports the efforts of a company like NeuPai that can easily connect our highly scalable payment systems to carriers operations.”

Paul Mullins – Global Head of Mobile Distribution Strategy

Team   CEO – Dion Lisle

  Owns Sales, Marketing and Administration   3 Years at Citibank driving mobile

strategy around the globe

  2 Years at Obopay driving Financial Services BD

  Frequent speaker on the mobile payments circuit

  VP of Channels for Voltage Security

  CPO/CTO – Jeppe Dorff

  Owns Product, Engineering and Operations   SVP at a leading Mobile Provider –

Clickatell

  Founder/CTO of KushCash

  Head of Product Development for EnStream – JV between Rogers, Bell & TELUS

  Board Member – African Center for Mobile Financial Inclusion

 Advisors   Alfredo Ohagan – Executive at: Euronet, Western Union,

MoneyGram, First Data

  Luis Samra – Mobile Payment Advisor – CEO of LatAm Startup, Verifone, American Express

  Robert Botch – MD of CapFin Private Equity

NeuPai Confidential

Competition is Fragmented

Mobile Banking

Mobile Payments

Carrier Billing

  Mobile Banking players moving to Mobile Payments

  Mobile Payments players trying to do too much before they succeed at core payments

$5.5 Billion $71 Billion

Mobile Topups

$293 Billion

Source: Compilation of GSMA, Wireless Intelligence and Carrier financial results

NeuPai Confidential

Annual Global Topup Market

Source: Compilation of GSMA, Wireless Intelligence and Carrier financial results

$15 B North America

$51 B Latin America

$32 B Middle East &

Africa

$45 B Europe

$18 B Russia & E.

Europe

$132 B Asia & Pacific

$293 B Total Global Topup

NeuPai Confidential

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In November of 2010 Mary Meeker identified U-BRIC as the hottest growth markets for Internet Usage

She further identified USA, China and Brazil as the hottest mobile markets and Russia as

a high growth entry

U+BRIC Topup Markets Mobile 270 million Prepaid 51 million Banked 280 million NeuPai TAM 41 million Yearly Topup $15 billion

Mobile 184 million Prepaid 151 million Banked 84 million NeuPai TAM 51 million Yearly Topup $29 billion




Mobile 1.87 billion Prepaid 1.5 billion Banked 803 million NeuPai TAM 415 million Yearly Topup $174 billion

USA RUSSIA CHINA

INDIA BRAZIL

U+BRIC TOTAL

NeuPai Confidential

NeuPai Delivers  NeuPai eliminates friction to ensure Customer Satisfaction

while delivering increased carrier profits and new bank revenue stream

User Banks Telecom

•  NeuPai makes $0.30 per topup

•  NeuPai pays telco $9.00

•  Bank makes $0.70 in new transaction revenue

•  Pays NeuPai $9.30

•  Is paid $9.00 in less than 30 days

•  User buys credit from their mobile or bank for $10.00

•  Security – no need to carry cash

•  Increase in customer transactions

•  New business model with 30% commission rates

•  40% Decrease in distribution costs

Benefits

New Channel

New Network

New Transactions

New Convenience

NeuPai Confidential

Connects Banks and Carriers  NeuPai’s Gain 360 platform will connect banks and carriers

for new transactions

  The platform can serve as a future proof platform for yet to be discovered payments.

NeuPai Confidential

Single Market Revenue - Brazil

>$1 $5

$25

$66

$121

$-‐

$20

$40

$60

$80

$100

$120

$140

Year 1 Year 2 Year 3 Year 4 Year 5

Millions

Revenue Total (M)

Model takes into account a 5% decrease in commission per annum

Backup

NeuPai Confidential

Mobile Payments Growth  Mobile Payments will grow dramatically between 2009

and 2014 – CAGR of 95%

 Mobile Topups as the number one category for mobile payments – Source: IEMR

0

50

100

150

200

250

300

2009

2014

Topup

Merchandise

Money Transfer

$ Billions

NeuPai Confidential

neupai mobile topup

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