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GoPayment•UMobile Payment Solutions for College Students

Intuit Proprietary & Confidential

Team GoPayment•U

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Agenda

• Problem & Hypothesis

•Campus Currency

•GoPayment•U Product Overview

•Case Studies & Light Experiment

•Market Analysis

•Conclusion

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Agenda

•Problem & Hypothesis

•Campus Currency



•Market Analysis

•Conclusion

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Problem Statement & Opportunity

• Problem– Sellers who want to accept credit

cards cannot do so because students don’t carry their wallets on campus.

– Students want to pay with a form of currency held on an campus ID card but this kind of currency is not universally accepted.

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Opportunity for GoPaymentEnable GoPayment to accept campus currency


Size of the Problem

99% of students have a credit/debit card but only 13% of students carry a credit card on campus

100% of students have an ID card and 97% carry it with them on campus

37% of students who would like to sell goods on campus do not do so because “[other] students don’t carry credit/debit cards”

60% of students would likely or definitely use Claremont cash to buy things from other students

*Source: Survey of 173 students at the Claremont Colleges

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Value Hypothesis

Making GoPayment compatible with campus

currency will bring GoPayment to college

campuses and allow trade among students

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Agenda


•Campus Currency



•Market Analysis

•Conclusion

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ID Cards & Campus Currency

• Usage of ID Cards–Open doors– Access meal plan – Purchase goods and services with closed-loop debit functionality

• Problems with Campus Currency

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For the buyer

–Campus currency is not universally accepted

–Students cannot use campus currency to purchase goods from each other

For the seller

–Equipment costs• $1,500-4,000 up front or a $40

month rental fee–Transaction Costs• 1-3% for University

organizations and students groups

• 5-8% for off-campus merchants–No mobile payment solution

Intuit Proprietary & Confidential10

How Campus Currency Works


Who is Blackboard?

• Blackboard is a private company that provides software for:– Course management – Facility access– Campus currency

• $447M annual revenue (2010)

• 12,700 institutions use Blackboard software

• 465 institutions use Blackboard for campus currency (as of 2009)

• Operates mostly in the US and Canada

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Individual students

Student organizations

Student Government

The University

The Library

Dean of Students Office

On-Campus Cafes

Off-Campus Merchants

Cafes

Restaurants

Convenience stores

Potential Sellers

Students


Agenda


•Campus Currency



•Market Analysis

•Conclusion

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How GoPayment•U Will Work


• GoPayment should be able to read the financial data encoded in the CX numbers of track 2

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Track 1: Dining Hall servicesTrack 2: Financial dataTrack 3: Facilities access

Campus ID Tracks


Agenda


•Campus Currency



•Market Analysis

•Conclusion

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Case Study: Student Government

• Who:– Student government is a group of elected student representatives– This group subsidizes events and sells tickets, t-shirts, and other

goods but currently cannot accept Campus Currency

• Problems they face:– Blackboard hardware costs are too high– Blackboard hardware is not mobile– Students rarely carry cash, eliminating the possibility for

spontaneous transactions–Other options: Google Checkout: “A nightmare!”

• Opportunity for GoPayment– GoPayment can solve all these problems

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Light-Weight Experiment

• Experiment 1: – Task: We asked the CMC student government to use GoPayment to

sell t-shirts. – Results: $867 across 48 transactions– Insights: “This GoPayment is fantastic, we have to find a way to

allow people to use Claremont Cash with it” –Student Life Chair

• Experiment 2: – Task: We asked Resident Assistants to use GoPayment to raise

money for staff gift – Results: Collected $175 across 15 transactions– Insights: Students who used their credit cards donated on average

$5 more than those who used cash

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Agenda


•Campus Currency



•Market Analysis

•Conclusion

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Market Size Estimations

• Approximately 15M college students spend $280/year of campus currency per student = $4.2B charge volume

• Assuming 10% market penetration, Intuit will process $420M in payments, resulting in an annual gross revenue of $10.5M

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Potential Partners and Competitors

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BlackBoard CBORD

Nuvision Networks

ITC Systems

Heartland Payments

GoPayment U

Total estimatedannual revenue

$480M ( ) ( ) ( ) $1.99B* $10.5M

Primarily an ID card business?

No Yes Yes Yes No No

Primarily for Universities? Yes No Yes Yes No Yes

Estimated number of schools

450 2000 ( ) ( ) 150 300

In mobile payment business?

No No No No Yes Yes

Likely competitor? No No No No Yes /

* $5.7M for card business


Agenda


•Campus Currency



•Market Analysis

•Conclusion

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Next Steps

• Product Changes– Hardware: Modify the GoPayment reader to read the financial data

housed on track 2 of the ID Card– Software: Modify the gateway to process the financial data

• Partnership Opportunities– Partner with Blackboard and other companies that process campus

currencies

• Pilot Programs– Initiate Pilot projects at two types of universities1) A large urban university (Ex: USC, UC-Berkeley)2) A small liberal arts college (Ex: Amherst, Williams)

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Intuit is Positioned to Win

• Intuit has the technology–Most of the technical work required to make this possible has

already been done for GoPayment

• This is a niche market– ID card companies are not focused on mobile solutions–Mobile payment companies are not focused on universities

• This is the right time– Intuit would be the first to bring mobile card readers to universities– Introduces GoPayment to college students and familiarizes them

with other Intuit offerings

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Download - Intuit GoPayment•U

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