March 2017

The Future of Payments Is Not

Better Payments

Dr. Soner CANKO

CEO - BKM

@SonerCanko

AGENDA

BKM

Featured Products & Services

The Future of Payments

Established

in

1990

BKM: COMMON PLATFORM OF TURKISH BANKS

10 shareholders

29members

Payment

services

provider to all

Turkish

Issuers &

Acquirers

1st non-bank (e-money)

member:

Turkpara

BKM’s FEATURED PRODUCTS AND SERVICES

THE FIRST

NATIONALDIGITAL WALLET

Developed with co-

operation of banks and

eCommerce companies

in Turkish market

TURKEY’S NATIONAL DIGITAL WALLET:BKM EXPRESS

Launched in

November

2012 e/m commerce

payments

P2P money

transferQR payments

1,3M+members

3,2M+ payments

50% penetration in the

market

21K+merchants

100+campaignssince launch

Source: BKM

99% penetration in

the market

17 banks

FAST GROWTH & MARKET ADOPTION

Airport fast

checkout

QR

Payment

Leading taxi ride

hailing app

In-App

1 Click Payment

24*7 delivery app

for urgent needs

In-App

1 Click Payment

Pay for gas

without leaving

your car

In-App

Pay with SMS OTP

Fast checkout at

supermarket ECR

In store-

SMS OTP

BKM Express is expanding its face to face payment network

FIELD TESTING NEW SOLUTIONS WITH PARTNERS

Integration with

social start-up

QR and

E-commerce

Donation and

customer services

Chat Bot

TÜRKİYE’NİN

ÖDEME YÖNTEMİ

Brand is launched, actions are outlined in the marketing plan

TROY

TURKEY’S

WAY OF PAYMENT

Current

Both magnetic stripe and

EMV/contact chip technology

are ready to issue as debit,

credit and prepaid cards

2017 Q2

Co-badge and

contactless cards will

be ready at 2017 Q2

2017 Q4

Mobile payments

studies are planned

to be executed in

2017

2017 Q2

With the R&D Lab, new

solutions will be

introduced to the Turkish

market fast

TROY HAS AMBITIOUS TARGETS AND WE ARE COMMITTED

A new ecosystem in Turkey is built after Troy

TROY

BKM INITIATED A PROOF-OF-CONCEPT PROJECT

USING BLOCKCHAIN IN 2017

Digital Identity

Distributed

LedgerCryptocurrency

Smart

Contracts

AGENDA

BKM

Featured Products & Services

The Future of Payments

14

CUSTOMER EXPERIENCE IS DRIVING

THE FUTURE OF PAYMENTS

By 2020 customer experience will ovetake price and product as the key brand

differentiator

The Future of Payments is Not Technically Better Payments But

BETTER CUSTOMER EXPERIENCES…

Deliver an excellentcustomer

experience

Reduce Payment Friction

CreateStrong

Ecosystems

Open toco-opetition

TRENDS THAT TAKES US CLOSER TO

FRICTIONLESS CUSTOMER EXPERIENCES

Instant Payments

Fintegration

Open APIs Internet of Things

17

THE FUTURE OF PAYMENTS

THROUGH CO-OPETITION &

STRONG ECOSYSTEMS with

THE HELP OF FINTECH

THANK YOU

Dr. Soner CANKO

CEO - BKM

@SonerCanko

19

Purpose: prepare an inventory of European digital wallets

•The data was collected in Q4 2016 and Q1 2017.

• 49 wallets have been captured

Next Steps

•European markets have been covered but it should be updated through Mobey

Forum webpage

•New Working Groups required for other markets

Mobey Forum Digital Wallet Working Group Is Completed