e-PaymentsJoe Seunghyun Cho
Chairman, Marvelstone Group
FINTECH1
FINTECHA technological segment that is disrupting the functions and systems of banking and financial services
Fintech provides an opportunity to supply financial and banking services to consumers through the power of technology
FINTECH ECOSYSTEM
Source: The Pulse of Fintech, 2015 in Review, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) March 9th, 2016
GLOBAL FINTECH INVESTMENTS
Source: The Pulse of Fintech, 2015 in Review, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) March 9th, 2016
ASIA FINTECH INVESTMENTS
Source: The Pulse of Fintech, 2015 in Review, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) March 9th, 2016
ASIA FINTECH INVESTMENTS
E-PAYMENTS2
What is e-Payments?Transfers of value which are initiated and/or received using electronic devices and channels to transmit the instructions.
Source: https://www.betterthancash.org/tools-research/toolkits/payments-measurement/focusing-your-measurement/introduction
e-Paymentscredit cards, debit cards, prepaid cardsCARD PAYMENTS
DIGITAL PAYMENTS2
MOBILE PAYMENTS3
1
PayPal, Bitcoin
mobile wallets, storage value accounts
E-PAYMENTS ECOSYSTEM
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Mobile wallet
POS
Digital currency
Mobile money
Direct carrier billingChip & Pin Cards
Contactless Cards
Wearables Stored Value Wallets
Remittance
E-PAYMENTS STAKEHOLDERS01 Non-bank playersTelcos, tech giants and other non-FIs have been innovating to capture more revenue
02 Local banks
03 Global banks
Have better understanding of local behaviours, needs and wants as competitive advantage
Strive to win through scale due to their global business operations
E-PAYMENTS PLAYERS
IMPORTANCE OF E-PAYMENTS
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Accessibility to financial resourcesLimited available funds (cash and cheque) for transactions. Merchants reluctant to accept big amounts due to risks.
1
SecurityGrowing trust and safety in security features driving consumption in payments.
2
TransparencyElectronic payments offer higher transparency than cash.
3
KEY DRIVERS
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Non-FS PlayersTechnology giants, telcos
RegulationConducive regulatory
environment
AdoptionIncreasing adoption of various
forms of payment modes
TechnologyTechnology is the key enabler
of the Internet and fintech
ConsumerGrowing middle class and
millennial adoption
Mobile PenetrationExponentially increasing
mobile and smartphone penetration
GROWTH&POTENTIAL
3
BUSINESS MODELS
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1. Operator CentricOperator acts as the acquirer, payment network and issuers
2. Bank CentricFinancial institutions own payment systems; cards payments,
3. CollaborativeCollaboration between banks and operators
4. Peer to Peer3rd party company that links customers, merchants and bankers.
GROWTH STAGES
IDENTIFICATIONIdentify the current problems or gaps in the market
CONCEPTUALISATIONConceptualize a solution to the pertaining to the problem
VALIDATIONIterate and validate all solutions in order to generate initial user growth
EXIT & MOREIPOAcquisitions,Cash Cow,
SCALINGGrow, grow, grow.Measurable KPIsMarket traction
1 2 43
SEED
SERIES A SERIES B, C, D..
EXIT
5
INVEST4
INVESTMENT CONCERNS
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SCALABILITY SECURITY PATENTS
NICHE COMPLIMENTARY REVENUE SOURCES
BURN RATE
VALUATION METRICS
PE Ratio Profits EBITDA
MultipleEV
EBITDARevenue
sEPS
Growth
IT DEPENDS
VALUATION METRICSPotential of new marketsPotential of expansion in existing marketsPotential of captive audience
POTENTIAL
TRACTIONQuantitative evidence of market demand2
STRENGTH OF MANAGEMENT TEAMExperienced professionals vs new entrepreneursTrack recordPotential?
3
1
COMPETITIONNumber of competitors and barriers to entry4
THANK YOU