Making Convenience Safe and Secure
Zwipe Investor Presentation
Redeye Growth Day, Stockholm, 2 June 2020 | André Løvestam, CEO
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Zwipe’s biometric payment platform is the most widely piloted solution in the emerging biometric payments marketplace
Zwipe is a fintech company focusing on biometric authentication
This is ZwipeA biometric fintech company pioneering the mission of “making convenience safe and secure”
1. Large market characterized by growth
from innovation
2. Mass-market price inflection point in sight
3. Technology and cost leadership,
with strong IP portfolio
4. Exclusive global sales & marketing rights to
a large, global customer base
5. Lean and scalable business model ready for growth
6. Strong management team and board
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COVID-19 is a global
crisis that affects us all…it is also affecting payment habits In the latest Mastercard global study, 79% consumers
confirmed they are now using contactless payments
• Worldwide, contactless transactions grew 2X more than non-contactless transactions in grocery and drug stores (Feb-March 2020)
An elevated focus on safety
following the COVID-19
pandemic
has dramatically increased the growth of
contactless transactions, and transaction
caps have been raised all over the world.
Hygiene may become an accelerator and
game-changer for biometric payments
A biometric card effectively
eliminates the need to ever touch
the payment terminal keypad
Regular cards require PIN above the transaction limit
(now e.g. SEK400 or NOK 500), after a set number of
transactions (~ 5), and when the cumulative value of
transactions has reached its limit (e.g. NOK 1,500 is
max in Norway before PIN is required)
Contactless payments have strong positive appeal:
82%
46%
74%
consumers view contactless as the cleaner way to pay
consumers have moved contactless cards to top of their wallet
Consumers will continue using contactless payments post-pandemic
10XContactless is seen as 10X faster than other in-person payment method
Zwipe will help banks and retailers to deliver three value propositions, especially relevant in COVID-19 times
1. Convenience
• Faster checkout drives higher customer throughout
• Uniform truly contactless experience in in-store payments
• Fully transparent towards the existing POS infrastructures
2. Peace of mind
• Safer & more hygienic in-store experience
• Promote and support more hygienic in-store payments
• Stronger security (no misuse of lost card, no risk of skimming, reduced fraud, no risk of lost data from central database)
3. Innovation & differentiation
• Next generation contactless experience
• Coolness factor, the next new thing!
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HIGHLIGHTS 2020
Toppan Forms, one of the
best positioned SCMs in
Hong Kong and Macau,
partnered with Zwipe to
offer biometric payment
cards
April 23, 2020
Asia Credit Card, a
specialist SCM based in
Hong Kong, partnered
with Zwipe to offer
biometric payment
products and services
April 28, 2020
As communicated in
Zwipe’s Q1, Zwipe is now
engaging, in projects or
in talks, with 40+ of the
top 50 (8 of top 10) smart
card manufacturers
May 7, 2020
Zwipe and IDEMIA
announced that their joint
development project to
deliver the next generation
card platform, Zwipe Pay
ONE is on schedule to
reach time and cost
targets, with first
availability expected by
2020 and volume roll-out
in 2021
April 8, 2020
Zwipe announced the
signing of agreement that
will see Zwipe combining
IDEX Biometrics sensor
products with the Zwipe
Pay ONE platform to
enable a complete system
solution for biometric
payment cards
April 20, 2020January 28, 2020
Zwipe listed on Nasdaq
First North Growth Market
in Stockholm
Masria Digital Payments,
one of the largest Smart
Card Manufacturers
(SCMs) in the Middle East
& Africa, selected Zwipe
for its drive to roll out
biometric payment
solutions
March 25, 2020
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2017 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E
1620 1670
1323
868
547 191 0 0 0
1380 14811985
2605
3100
3637
40204221
4432
Contact-based EMV Payment Cards Dual-interface payment cards
1. Large emerging market characterized by innovative growth
Millions
Source: Eurosmart, Zwipe. Note: 2017-2018 based on Eurosmart. 2019-2025 based on Zwipe projections, Paymentscardsandmobile.com, Payment Service Directive (PSD2)
Annual shipments of EMV payment cards reaching 4 billion per annum
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Accelerating smart payment card technology adoptionTime for new innovation to reach 1bn volume
3Bn
2Bn
1Bn
’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ‘22
1995: EMV smartcard (chip & pin)
introduced in Europe.
New POS infrastructure needed
2007: Contactless payment card
first launched by Barclays UK, new
POS infrastructure needed again 2020:
Biometric
payment
cards being
introduced.
NO NEED
FOR NEW
POS INFRA-
STRUCTURE
Total Smartcards per year Chip & PIN (contact) per year Contactless per year Biometric payment cards
– natural next step
18 years
8 years x years?
Source: Eurosmart 2000-2018, ABI 2019-2022 8
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ASIC
System in Package (SiP)
Discrete Components
Single Silicon
Total Card Price
Projection30-45 USD/card 18-25 USD/card
2017 - 2020
2020 - ?
2021 onwards
Zwipe’s strategic partnership with IDEMIA is firmly on track to deliver this radical unit cost reduction:• Pilots planned from H2 2020• Mass-market deployment from 2021
Ultimately reaching below 5 USD
Below 10 USD
Industry Progression: Component Integration
2. Mass-market price inflection point of sub-$10 cards in sight
Note: All images are conceptual visual references. Total card price projections are indicative, will vary depending on geographical markets and individual market participants.
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About Zwipe Pay ONE
Zwipe Pay ONE Basic Package
1. ISO Contact plate module
2. Biometric Java Card OS
3. Inlay and card reference designs
4. Integration support
Fingerprint Sensorsourced from Idex Biometrics ASA for post-placement
Optional Packages
• Biometric aware payment applets
• VISA VBSS | Mastercard M/Chip
Advance | Local Schemes
• Prelaminate sheets
• Enrolment solutions
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2
3
Conceptual design of passive,
wired inlay
Zwipe Pay V3: active inlay with discrete components
Zwipe Pay ONE: passive, wired inlay without any discrete components
3. Zwipe is positioned for COST and TECHNOLOGY LEADERSHIP
11All images are conceptual visual references
✓ Much cheaper inlay
✓ Extreme integration into single chip, low component cost
✓ Card manufacturers can use standard production equipment and methods
✓ High reliability, high yield
= Low manufacturing cost
✓ Enabling total system solution ready for mass production and deployment
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Disruptive biometric payment card platform:
• replaces Secure Element, Microcontroller and >30 components with a single chip
• offers best in class biometric performance and energy efficiency
• enables significant cost reduction and mass volume market take-off
• will be piloted H2/2020, with mass volume deployment 2021
• this disruptive technology is expected to play a leading role in the BPC market
This partnership entails:
• co-investment in the technology development
• Zwipe retains worldwide exclusive distribution rights for the lifetime of the product to all
manufacturers of payment cards, wearables and other payment solutions (except IDEMIA),
and also to their suppliers
• IDEMIA will sell this technology in their cards to financial institutions (embedded in their F-
Code biometric payment card offering)
• Zwipe will also offer accompanying functionality, software and services around the
technology platform
4. Landmark partnership with Idemiagives Zwipe exclusive distribution rights…
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Partnership with Thomas Greg & Sons do Brasil, to enable Latin American marketplace
Partnership with Inkript, to strengthen position in the Middle East, Africa and Central Asia
Partnerships with Goldpac, XH Smart Technology, Silone Cardtech, Toppan Forms Card Technologies and Asia Credit Card solidifying ability to service issuers in APAC region
Diversified and growing customer network – with global reach
Partnership with dz card,strengthening capacity to support issuers in Southeast Asia
Zwipe’s customers include many of the world’s most established digital security providers and card manufacturers
Long standing partnership with CPI Card Group, largest domestic card manufacturer in the United States
Long standing partnership with Thales (Gemalto), world’s largest card manufacturer
Longstanding partnership with Hitachi High-Technologies
Partnership with TAG Systems, to unlock the fast-mover approach of European-based Challenger Banks
Selected by Giesecke + Devrient to develop biometric wearable
Partnerships with AllCard Inc. to address opportunities in the Philippines
Partnering with Idemia to offer disruptive biometric payments card platform
Partnership with Masria Digital Payments, to strengthen position in the Middle East, Africa
A. Focused business model and 40 % lowered run-rate
• from NOK 8m/month in 2019 to NOK 5m/month in 2020
B. Cost-leadership paving the way for mass-market take-off
C. Healthy margin projections
D. Cash-flow break-even reachable at low penetration rates of biometric payment cards
• Zwipe break-even at ~6 million units per year
• Annual card volumes in UK alone >100 million units per year
5. Lean and scalable business model ready for growth
Signing ceremony of the landmark technology partnership.Amanda Gourbault, Executive Vice President at IDEMIA,
and CEO of Zwipe, André Løvestam
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2 June 2020 Strictly Confidential
A shared and focused vision on how to create long-term sustainable value
Board members with diverse, deep industry knowledge and complementary skills
Management with a deep understanding of eco-system, industry, and company
6. Strong management team and board
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Contactless experience and roadmap beyond cards
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Ever since iPhone 5S in 2013,
smart phones have helped trigger
changing consumer habits by
creating demand for biometric
functionality in payments & beyond
Smart Phones
Biometric payment cards will
further enable the use of truly
contactless payment,
complementing the rising
popularity of smart phones
Smart Cards
Wearables
Actual image of wearable
prototype which will be
piloted this year with G+D
Wearables will create
another safe and secure
consumer touch point for
issuers in an increasingly
competitive market
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This is ZwipeA biometric fintech company pioneering the mission of “Making Convenience Secure”
1. Large market characterized by
innovative growth
2. Mass-market price inflection point in sight
3. Technology and cost leadership,
with strong IP portfolio
4. Exclusive global sales & marketing rights to
a large, global customer base
5. Lean and scalable business model ready for growth
6. Strong management team and board
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