Making Convenience Safe and Secure

Zwipe Investor Presentation

Redeye Growth Day, Stockholm, 2 June 2020 | André Løvestam, CEO

2

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

3

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!

5

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

6

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

7

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

9

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.

10

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

1

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

12

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…

12

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

14

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

15

Contactless experience and roadmap beyond cards

16

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

1

2

3

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

17