© 2003 – 2010 monitise group limited. all rights reserved. confidential. mobile money 17 mar 2010...

© 2003 – 2010 Monitise Group Limited. All Rights Reserved. Confidential.

Mobile Money

17 Mar 2010

Alastair LukiesCEO


Lloyds TV advert


It cant be done – its never been done before

• No one has ever done a joint venture with LINK (owned by banks – busiest ATM switch globally)

• Banks will never outsource a key consumer channel

• Banks will never share an ecosystem

• Mobile operators will want to own this space

• It cant be replicated outside the UK

• Its not a global proposition

• You cant grow a banking infrastructure business as a PLC

• You cant raise capital on AIM in 2008/9

• Consumers wont use it

• Surely its now easy to replicate by others


“If past history was all there was to the game, the richest people would be librarians”

- Warren Buffett


Investment AreasRegional Product

Monitise Asia Pacific The Carphone Warehouse Monitise India Travelex

Monitise Africa

Live OperationsMonitise AmericasMonitise Europe

Visa Global Alliance

Mobile money manager technology platform

Group Structure

Monitise Group Limited

Monitise plc


Recent Milestones

October 2008: 1st 1 million transaction month

Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10

June 2009: VISA global alliance signed

Aug 2009: Monitise breaks 750,000 customer barrier and takes 100% control of UK joint venture

Dec 2009: Monitise breaks 1.5 million customer barrier and signs partnerships with First Eastern and The Carphone Warehouse

Coming soon

Ventures in Asia Pacific, India and Africa

Feb 2010: Monitise hits 1.75 million customers


Monitise becomes a global mobile development partner for VISA inc – June 2009

• Connecting Visa payments infrastructure to Monitise mobile money platform – Visa sell existing Monitise products

– Monitise develop products for Visa to sell

– Monitise ecosystems benefit from Visa connection

• Minimum contract value $13m– development and service fees

• Initial services to be launched in h1 2010

• Visa take 14.4% new-money stake in Monitise

• Worlds largest payments brand

• 60% + of all global electronic payments

• 1.7 billion card holders globally

• $58 Billion Market Cap


Mobile Money is becoming a massive market

The number of text messages sent every day exceeds the population of the planet

Global mobile banking take up is set to soar over the next five years, with the number of people using the technology growing from 20 million in 2008 to 913 million in 2014, a CAGR of 89% Berg Insight, Mar 09

53% of global consumers were comfortable with the idea of using mobile phones for financial transactions and 54% at least likely to conduct banking through their mobile phone in the next 12 month found KPMG in their world wide survey. KPMG, July 2009

Currently there are an estimated 445m mobile phone subscribers in China, compared with 159m internet subscribers Boston Consulting Group

An extra 10 phones per 100 people in a typical developing country boosts GDP growth by 0.8%...... More than 4 billion handsets are now in use worldwide, three-quarters of them in the developing world.” World Bank, The Economist, September 2009

© 2003 – 2010 Monitise Group Limited. All Rights Reserved. Confidential.

Our unique role


The Monitise Mobile Money Manager Platform enables banks, operators, processors and merchants to overcome the many barriers to successful, sustainable deployment

Security Customer

Management

RegistrationHandset

Coverage

Operator

Connections

And the rest!System

Integration

Monitise

Mobile Money Manager

Platform

$

PATENTPROTECTED


Winning Propositions

Simple mobile money services which

‘come as standard’Full Mobile Money Management

Configurable by

• service

• segment

• delivery technology

• registration method

Bank Accounts

Cards

Virtual Accounts

Monitise

Mobile Money

Manager Platform

ESSENTIALSTOOLKIT

ADVANCEDTOOLKIT


Advanced

Essentials

Everyone

Key customer groups

Customers who see their phone as the centre of their digital & Data lifeThey will bank and pay via mobile

They are most likely to migrate to ‘new brands’ for financial services

Customers who use text alert services to manage their money

See the mobile as an ‘extension’ of their bank account – payments

comes next

Customers who get a balance by text or activate a card/service via the

mobile

The mobile is by far the most ubiquitous ‘self service’ channel for

banks to utilise


Key UK customer profiles

Comfortable, but balance bills and savings monthly

Income of £45k

Want services that make life easier like Sky Plus

Busy strivers

Standard current account, occasional overdraft user

Weekly struggle to make ends meet

Household income £20k

Choose no frills products like pay as you go mobile

phones

Budgeting family

Basic bank account, hovers near overdraft limit

Simple & Feeder

Affluent, pioneers

Successful, with desire to reach the top

Earns £45k+ a year

Prefers self service & embraces technology like iPad

Packaged current account, rarely in the red

Advanced


Today Example - Reloads

Proliferation of electronic accounts– Airtime Credit– Gift Cards– Prepaid Cards– Transport Accounts– Gaming– Lottery

Reload from mobile– Consumer benefits

Anytime Anywhere Anyone

– Business benefits Convenience drives increased usage Reduced Distribution Costs v Retail Instant, Non-Repudiable value


Today Example – Bill Presentment & Payment

Overview

• Text message ‘Gas Bill. £120. Click to Pay’

• Extension to m-Invoicing

Benefits

– Consumer Control

– Business Remove cost of paper bills Reduce cost of chasing payments Improve collection cycle time Instant, Non-Repudiable value


Tomorrow Example – Location-Based Advertising

Overview

• Mobile detects that I am in Broadway

• I have registered an interest in entertainment offers

• I get a text alerting to 2-for-1 ticket offer for a top show

• Click to purchase

• Ticket downloaded to my phone

• Tap my phone to get in to the theatre

Business benefitsSupremely Targeted and Timely promotionReduced Distribution CostsInstant, Non-Repudiable value


Foundation for driving asset value

The mobile evolution If you don’t establish the secure link now it is lost

Account information/money management

DatabaseMSISDN - PAN

Mass market self service channel Cost reduction & service enhancement

Account to account paymentLeverage payment infrastructureDefend payment position

person to person payment “text money”

Phase 1 mCommerceExtend payment reach

mCommerce – Remote “text to buy”Vouchers & offers (add revenue)

mCommerce - Proximity “NFC”

Network extension of A2ACheque replacement

Phase 2 mCommerce Mass market payments

Importance to the Banking industry


Therefore

• Retail banks, through existing infrastructure should establish themselves at the centre of this landscape now

• Be the acquirer and custodian of the MSISDN/PAN link• Retain key role as source of funds for Mcommerce• Recognise and adapt to a new generation - the ‘self empowered’, networked

community

• Establish the ‘Merchant Acquiring’ and ‘Interchange’ rules in mobile

• Banks must embrace and fully utilise the ‘rails’, scale and flexibility of their (actually quite few) global trusted partners in this space


Global Ivy League Next Frontier

Back to the Past Leapfrogging

Innovation Islands

Business as Usual

Technology and Innovation in Financial Services

Scenarios to 2020


The Ecosystem (utilising some key bank capabilities)

KYC

(know your customer)

Source Of Funds

Secure Channel to consumers

Database


Conclusions

• Mobile Money is a massive concept• Compelling new propositions & Compelling business cases

• Connecting consumers to their money via their mobile is not easy• It takes a lot of complexity to make it simple

• Ecosystem approach provides connectivity infrastructure• The ‘rails’ for new propositions

• Mass market adoption is underway

What’s the mobile money strategy for your business?

© 2003 – 2010 monitise group limited. all rights reserved. confidential. mobile money 17 mar 2010...

Documents

monitise ecosystems

monitise hits

mobile phones

mobile phone subscribers

planet global mobile

ecosystem mobile operators

market cap slide

patent protected slide