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NEDBANK GROUP INNOVATION

PAYMENTS INNOVATION - POCKETPOS

CHRIS WOOD

HEAD: GROUP INNOVATION

@CJWZA

The evolution of payments had a slow start…

Barter

3000 BC: The Shekel

180 grains of barley

(11 grams)

Chinese: The Cowry shell

Precious metals

600BC: Coins

7th Century:

Paper money

1816: The gold std

1950: Diners 1959 (‘72): ATM 92: 1st chip card ‘81: 1st online bank

1717: BoE

printed 1st

cheque

‘95: Contactless

3

But without a doubt, the future is mobile…

In South Africa:

• Mobile phone penetration is measured at

greater than 100%

• More users access the net through their

mobile device than traditional desktops

• More digital goods are bought on mobile

phones than physical goods

• But…The rate of growth of “real world”

products is rising at a faster rate than that

of digital products

• As smartphone penetration increases,

payment capabilities and user

experience will increase the sale of

physical product through mobile

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Which is changing consumer’s buying behaviour

5 2011 2012 2016

$106bn

$617bn

$172bn

Source: Gartner

Mobile payments will represent US$ 617bn by 2016…partially new

money, but largely disintermediation of current bank revenues

Gartner indicates 52

payments based innovations

across the Hype Cycle, while

the whole of Banking and

Investment services together

reflect only 33!

6

Innovation @ Nedbank

Home Page

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What is Nedbank PocketPOS?

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Driving Innovation with Payments in Mind

• The first ever EMV certified mobile payments device to

be launched in Africa

• Turns your mobile phone or tablet into a card

accepting device

• Allows small or mobile business and sales people to

accept payments wherever there is a cell signal

• Reduces the need to deal with cash and reduces cash

deposit fees

• Call out services can be paid on site, rather than waiting

for online payments to be made, which are often delayed

• Smaller and cheaper than traditional Point of Sale

devices, allowing more businesses to accept cards

• Available as an app download on Apple, Android and

Blackberry devices

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And we believe the mobile payments landscape is OPEN

App Development Type

Provision of an Application Programming Interface (API) for wider adoption…

Open API

Partner

Development

Integrators

Available for download directly from Nedbank

Multiple Operating systems Style guide included (Nedbank CI

where applicable)

Nedbank develops an app solution together with strategic partners

Third party developers assist to integrate into partner environment

Nedbank payment capability integrated into Retail integrators e.g. Micros solution

Integrators supply payment capability

Single Payment API made readily available to be used across devices

Nedbank as a trusted partner in payments acceptance and development in mobile

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Thank you!

Please visit the and stand outside!

CHRIS WOOD

HEAD: GROUP INNOVATION

@CJWZA