paybl.hps.march2010.ver3.0

www.noca.com copyright© 2009 Noca Inc All Rights Reserved

Transact Freely with One-Click Paytm

Presented to Heartland Payments Systems

Mountain View, CAApr 2010


Q: How to get from thousands to millions of

users• Have an existing back-end payment

infrastructure– Built an end-to-end payment system for Debit

and Credit– Platform independent, plug and play integration,

mobile enabled– Lowers processing costs radically

• Have a novel Architecture - Frictionless consumer enrollment, no sign-up required– Allows users to transact without enrollment or

redirection (high conversion rates)– Easy conversion from existing networks to lowest

cost settlement system


Answer: Leverage a high growth segment

• Social gaming/Virtual Currencies have millions of users– Exponentially high growth, marginal COGS zero– Payments not their core competence

• Rate of conversion is key in Social networks gaming/Virtual Currencies– Current rates saturated at 2-3%– Barter offers extremely lucrative but will taper off


Problem/Opportunity in Social Gaming/Virtual Currencies

Merchants

Low rate of paying users (2-3%)

High processing costs

Consumers

Poor experience with online transactions

No “one-click pay”

No small (under $5) transactions

Noca’s Payment Solution


• Frictionless enrollment and transaction experience

• No fixed fee per transaction enables small payments

• Lowest cost – no interchange or network fees

• Eliminates most mouths from existing payment food chain

• Easiest and most flexible integration - Most scalable

• Ability to incent loyalty and consumer behavior. Low fraud since goods are virtual

ConsumerFriendly

Solid Fraud

Solutions

Best Economic

s

Excellent Technolog

y

Noca is a game changer for Gaming/Virtual Currencies

Increase Consumer Conversion

SStart with greater convenience

TTruly “OneClick Pay” increases conversion exponentially

SSubsequent transactions using checks


NNo change in Consumer behavior needed

PPay once inline, no redirection, auto enrollment with payment information pre-filled

Noca’s Solution Reduces Merchant Cost by 80%


PaymentProcessing Costs

Chargeback

Others

Fixed Costs

Fixed Costs

Others

Chargeback

PaymentProcessing Costs

Current Transaction Cost 3-5% Cost Reduction of 80%

Noca's “Secure Credit/Secure Check”tm

DifferentiatorsNoca’s superior payment system will offer:

Superior Chargebacks: merchant first right of refusal reduces chargebacks substantially

Superior Chargebacks: merchant first right of refusal reduces chargebacks substantially

Analytics: an API enabling rich analytics for merchants

Analytics: an API enabling rich analytics for merchants

Real Time: provide real-time information regarding end-to-end payment experience

Real Time: provide real-time information regarding end-to-end payment experience

SKU detail: deliver full SKU information and checkout “snap shots”

SKU detail: deliver full SKU information and checkout “snap shots”

Noca Rides the Debit Trend Wave


Visa Debit Surpassing Credit in 2008 • Tightening lending standards

• Reduction in revolving outstanding balances

• Numerous issuers reducing credit lines

• Legislation and regulation making credit extension challenging

• Consumer desire for “control”

Noca's system leverages increasing debit adoption

Credit Volume

Debit Volume

US Trends Favoring Debit for 20 years

Current Economic Environment Accelerating Shift to Debit

Easy Implementation of Mobile Payments


Social Media Payments


Actual facebook screen

Noca Value Proposition

• Good Consumer acceptance - Frictionless consumer experience

• Good Merchant acceptance - Ability to steer consumer from credit or debit option

• Lower cost transactions - Order of magnitude cost difference

• Lower regulatory hurdles - No PCI compliance

• Increased efficiency for recurring payments - Bank accounts do not expire

Adoption Metrics (Feb 10)

Total volume through network = $100’s K

Total number of Merchant signups = 362

Total Consumers = thousands

Average web transaction size = $102

Total number of Fraud/Chargeback/Disputes = 1

Percentage of fraud/chargeback < 0.1%



Competitive Assessment

Customer Friendly: No Registration or

Redirection

Registration or Redirection

Low Merchant Fees (0.75%)

High Merchant Fees 1-3% +$0.10-0.30

Current status

• 1M+ users signed

• 4M+ users discussion/LOI

• 80M+ users discussion/LOI

• 15M+ users discussion

• 20M+ users contact

Current status

• – Discussion/LOI

• Homeaway - RFP/RFI

• – LOI

The Founding TeamPankaj Gupta [Founder, President] Chief Network Architect at VISA 15+ years industry experience in financial services MS and BS in Computer and Information Science from

Ohio State University

S. Randy Nott [Chief Architect] Lead developer at VISA 15+ years Industry experience. BS in Computer Science from Western Michigan University



TeamGlenn Poppe [Biz. Dev]Harvard Business School, cum laudeEx Boston Consulting GroupEntrepreneurial experience, International Experience

Tony DeGangi [Lead, Security and Risk Engineer ]Ex MIT EngineerExtensive risk operations experienceBS, MS in Computer Science, Entrepreneurial experience


Financials (How do we make profit)

0-1 Million UsersPer transaction

Transaction Cost $0.100

Verification Cost $0.100

SG&A Cost $0.080

COST (COGS + SG&A) $0.280

Avg Trans Size: $70

We charge 1.00% of which we keep 0.50(the other 0.5% in going for incentives)

Revenue/Per trans $0.375

Profit /per trans $0.10

EBITDA 35+%

1+ Million Users

Cross sell to Merchants

Advertising

Financial Institution

s

EBITDA 75+%

Financial Summary

Current Capital Raised = 350K, Individual Angel investors

Terms = Convertibles with discount

Pre-money Valuation = under discussion

Looking to raise $3.5Million

Use of funds = growth through infrastructure and staff augmentation

In 4 years, 50M users and 200+M in revenues

paybl.hps.march2010.ver3.0

Education

transaction experience

consumer behavior

consumer desire

consumer conversion

endtoend payment system

nocas payment solution

rights reserved nno

years industry experience