Mokipay public mr_20120323_v6

NFC BASED MOBILE PAYMENTS AND LOYALTY PLATFORM IN CLOUD

We empower Mobile Operators, Banks and Retail companies to provide Mobile Wallet services for their customers

Fast. Convenient. Secure

www.mokipay.com

www.facebook.com/mokipay http://www.youtube.com/watch?v=5H6ls4uhqis

Please see how it works:

How it works?

Customer taps the phone to NFC reader

Customer receives the request to confirm the transaction*

Customer confirms the transaction by entering PIN code to his phone

Near field communication (NFC) is a set of standards for phones and similar devices to establish radio communication between the phone with NFC chip and NFC device (reader) by bringing them into close proximity (a few centimeters). In case of online payments – the customer enters his phone number in website instead of tapping the phone to NFC reader.

* Mokipay was developed specifically as a secure mobile payment system. It has a convenient Macro (more than 10 EUR) transaction confirmation system using Mobile infrastructure (PIN code on Mobile phone), which ensures the user and transaction authentication.

Customers equipment

We issue Mobile Wallet packages which include NFC sticker and Customers ID. Packages are distributed by Mobile Operator, Bank or Retail company.

Customers use SIM cards which support WIB (has SIM tool kit) or wPKI. SIM card is used to run the application which push the request to confirm the transaction to customers phones screen.

Customers may also use NFC embedded phones with SWP SIM cards. In this case – there is no need to stick the sticker to mobile phone.

Customer attaches the sticker to his mobile phone (any model) and activates Mobile Wallet by sending SMS, online or using mobile application (iOS and Android).

Mokipay Transaction Center

Mobile Wallet Account

(Bank or other holder of the account)

Trusted Service Provider

Mobile Network Operator

OTA servers

Payment module

Online Shop

Merchant

Merchant

POS system

NFC reader

At shops, restaurants and other places Customer taps the phone with NFC sticker attached (or NFC embedded) to the NFC reader. At online shop Customer enters his phone number in to the payment module. NFC reader reads (or payment module gets) Customers ID and the details of payment transaction and transmits it to the Mokipay Transaction Center (MTC). MTC checks the Customers account balance and states if there is enough funds to make a payment transaction. If yes – the request to confirm the payment transaction is sent to customers mobile phone using Trusted Service Providers (TSP) and Mobile Networks Operators (MNO) OTA infrastructure. The request to confirm the transaction is pushed to Customers phone screen from the application running on SIM card (therefore any phone model can be used and there is no need to run the applications on the phones operating system). The Customer confirms the payment transaction by entering his secure PIN code. The confirmation is sent back to MTC and MTC confirms the transaction for the Merchants. In case of MICRO payments (less than 10 EUR or other defined sum) – MTC immediately sends the confirmation of the transaction after the checking of the Customers account balance.

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Mobile Wallet The Customer can access his Mobile Wallet using mobile applications (iOS and Android), website or mobile web. There are few options of Mobile Wallet account:

Special Prepaid Account On the process of NFC sticker activation the system opens a special prepaid account for the customer. It can be topped up by bank transfer, using credit card or by cash in self service kiosks or at payment places.

Mobile Operators Bill Mobile payments can be included into Mobile operators bill

Linked to Credit Card

Linked to PayPal Account

Linked to Bank Account Customer can make payments using mobile phone from the regular Bank account. Partnership and integration with Banks information systems is needed.

Loyalty Mokipay platform includes multifunctional loyalty system: cash back, discounts, coupons, group buying, rewards … .

Customers using their mobile phones for payments automatically participate in loyalty programs, run by Mokipay as well as provided by the Merchants.

Mokipay has developed its own loyalty program, which includes cash-back based on the number of purchases and the sums spent at merchants places. The more customer buys, the higher is cash-back.

Mokipay also runs a time limited (weekly) campaigns of high cash-backs (25%-50%). These campaigns increase the number of transactions by 200%-800%.

If the merchant runs its own loyalty pro-gram, it can be integrated with Mokipay platform using API. In this case rules of merchants loyalty program would auto-matically apply when user makes pay-ments using his mobile phone.

Mobile payments are widely accepted in Lithuania by cafes, restaurants, shops, petrol stations, pharmacies and other Merchants. Mokipay has more than 250 contracts with Merchants, who accept Mobile payments and provide loyalty bonuses to Mobile Wallet users. We have deployed 600 NFC readers in Lithuania.

Merchants equipment Currently we use 3 types of NFC readers:

1. Desktop integrated to POS system NFC reader (for example QPROX QP 3000)

2. Handheld Stand Alone NFC reader (GPRS or Wifi)

3. NFC embedded mobile phones with POS application as a reader

Mokipay payment transactions can also be processed by other NFC readers. Mokipay in consent of the owner of the reader installs the necessary software to read and route Mobile payment and loyalty transactions.

Mokipay has developed POS application for NFC embedded phones for Samsung Bada operating system (in cooperation with Samsung R&D). Samsung Wave and other NFC embedded phones can now be used to accept Mobile payment and loyalty transactions. This solution is very convenient for Taxi drivers, small businesses, independent service providers.

Business model Merchant

NFC reader

Customer Mobile Network

Operator

Bank (or other holder of

Mobile Wallet accounts)*

Mokipay

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2a

2b

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1. Fees paid by Merchant a. Payment transaction fee (commission paid to Bank) b. Regular Loyalty transaction fee (commission paid to Bank) c. Loyalty campaign fee (fixed or percentage commission on each transaction) (paid to Bank) d. NFC reader rent and support fee (fixed monthly fee, paid to Bank)

2. Fees paid by Customer Customer acquires Mobile Wallet package from MNO or Bank.

2a. Fees paid by Customer (to Bank) a. Fee for using account for Mobile payments (x EUR/month) (fixed fee, periodical) b. Account top-up fee x EUR or x% (if the account is prepaid account) (fixed or percentage)

2b. Fees paid by Customer (to Mobile Network Operator) a. Fee for using SIM card to confirm payment transactions (x EUR/month) (fixed fee, periodical) b. Fee for participating in Loyalty programs and Loyalty programs integrations (x EUR/month) (fixed fee,

periodical)

3. Revenue share between MNO and Bank If the Mobile Wallet services are provided by MNO and Bank in Partnership – Mokipay recommends to work on a revenue sharing model.

4. Fees paid to Mokipay a. One time system deployment fee (customization, integrations and etc.) b. License per active user (x EUR per month) c. Payment transaction fee (x EUR or x%) PLEASE NOTE: the presented business model is only a recommendation. All figures are exposed for demon-strational purposes only and must be specified individually. The business model may be changed by the re-quest of participating organizations or in order to correspond to customers expectations.

* Mokipay can cover the part of Bank as it has e-money license (which enables provision of payment services across EU) and can open a separate prepaid account for the customer.

http://www.nfcworld.com/2011/07/11/38528/omnitel-launches-national-nfc-service-in-lithuania/

Lithuanian tech start-up Mokipay together with mobile network operator Omnitel (a part of TeliaSonera) has launched NFC mobile payments service at European Men's Basketball Championship (EuroBasket 2011) hosted in Lithuania

We are not building the platform – it is a proven and fully

While most of other Mobile payment systems based on NFC are just a small scale pilot projects, Mobile payments based on Mokipay platform become an ordinary payment method in Lithuania.

Mokipay mobile payments are accepted by many local and international Merchants (including McDonalds, Statoil, Douglas, …) and has already proven its superiority to the customers and merchants.

Our primary goal is to correspond to the end user needs. We put on priority user experience, ease of use and convenience. Mokipay users do not need special applications or smart phones to make a transaction. The payment process is as usual and as easy as payment using traditional payment cars (most of our users say – even more convenient and faster).

Most Mobile payment and loyalty systems have serious limitations. Mokipay – is very flexible and compatible system. It works with all handset models (as example – Google Wallet only works with Nexus S 4G available on Sprint). It is compatible with most popular NFC readers and is Bank or payment card independent (never less – it can be linked to any Bank or Credit card).

operational system launched in Lithuania on a national scale.

Why Mokipay?

For Investors

April

Mokipay was officially founded on May, 27th

May

June

July

August

September

October

November

December

January

February

March

April

First Mobile payment transaction on April 18th

Investors (private persons) join Mokipay

Private BETA

GO LIVE! on August 18th

2012

Contract with Omnitel (TeliaSonera).

Started selling Mobile Wallet packages in the name of Omniltel

Gold medal. Product of the Year 2011

Participated at Mobile World Congress 2012

Negotiations with MNO, Banks and Retail companies

Beta

Timeline

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Mokipay is initiating Series A investment round. The proceeds will be used for operational expenses, further platform and product development and international growth.

Mokipay would prefer investors with a deep know-how and experience in mobile and payment markets.

Mokipay would expect the investor to contribute on the definition of the products, interoperability of the platform and its development directions as well as on international sales.

Facts

Mokipay team is 23 professional employees (a half of them is a technology team).

Mokipay OPEX is 45.000-50.000 EUR per month (travel expenses not included).

At the moment Mokipay revenue is generated from the sale of Mobile Wallet packages (selling directly to the end-users and bulk sales to MNO) and from the commission on transactions.

Lithuania is the test and product development market for Mokipay. In other markets Mokipay will not address the end users directly (unless requested by investor) – we will partnership with MNO and Banks and will serve users in the name of these organizations.

Finalist at Contactless & Mobile Awards 2012

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Markas Zbarskis Founder and President Markas is the owner of one of the biggest IT companies in Baltics “ERP.” He is professional manager experienced in leading large-scale IT projects with background on engineering and business administration.

Aurelijus Vadeika Chief Technology Officer Aurelijus has over 15 years experience in wide range IT Project management and Product development. Lately focused on innovative projects, including self-service payment terminals, finance management portals and mobile applications.

Mindaugas Rutkauskas Chief Operating Officer Experienced business manager with background of MBA and Law. Previously served as CEO and started one of the biggest media groups and developed biggest network of internet portals in Lithuania.

Advisory Board

Mike Mayer (Israel) – over 30 successful years and a proven track record in the IT industry. Mike has held key positions at Digital Equipment Corporation, Oracle and most recently at SAP as Vice President Global Emerging Markets.

Jim Dvorkin (USA) – Five9 CTO, has a rich experience in development of IT and communication projects. Jim has held key positions in companies like SalesForce, Echopass, Contactual, NextAge Technologies, Genesys Solutions.

Dainius Kreivys (Lithuania) – ex-Minister of Economy of Republic of Lithuania (2009-2011). Dainius initiates early stage business development programs in Lithuania, is experienced in development of retail and real estate businesses, is successful businessman.

Management team

Contacts Mindaugas Rutkauskas Chief Operating Officer +370 687 51442 [email protected]

Innovative. Experienced. Credible