paybl.hps.march2010.ver3.0
TRANSCRIPT
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Transact Freely with One-Click Paytm
Presented to Heartland Payments Systems
Mountain View, CAApr 2010
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Q: How to get from thousands to millions of
users• Have an existing back-end payment
infrastructure– Built an end-to-end payment system for Debit
and Credit– Platform independent, plug and play integration,
mobile enabled– Lowers processing costs radically
• Have a novel Architecture - Frictionless consumer enrollment, no sign-up required– Allows users to transact without enrollment or
redirection (high conversion rates)– Easy conversion from existing networks to lowest
cost settlement system
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Answer: Leverage a high growth segment
• Social gaming/Virtual Currencies have millions of users– Exponentially high growth, marginal COGS zero– Payments not their core competence
• Rate of conversion is key in Social networks gaming/Virtual Currencies– Current rates saturated at 2-3%– Barter offers extremely lucrative but will taper off
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Problem/Opportunity in Social Gaming/Virtual Currencies
Merchants
Low rate of paying users (2-3%)
High processing costs
Consumers
Poor experience with online transactions
No “one-click pay”
No small (under $5) transactions
Noca’s Payment Solution
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• Frictionless enrollment and transaction experience
• No fixed fee per transaction enables small payments
• Lowest cost – no interchange or network fees
• Eliminates most mouths from existing payment food chain
• Easiest and most flexible integration - Most scalable
• Ability to incent loyalty and consumer behavior. Low fraud since goods are virtual
ConsumerFriendly
Solid Fraud
Solutions
Best Economic
s
Excellent Technolog
y
Noca is a game changer for Gaming/Virtual Currencies
Increase Consumer Conversion
SStart with greater convenience
TTruly “OneClick Pay” increases conversion exponentially
SSubsequent transactions using checks
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NNo change in Consumer behavior needed
PPay once inline, no redirection, auto enrollment with payment information pre-filled
Noca’s Solution Reduces Merchant Cost by 80%
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PaymentProcessing Costs
Chargeback
Others
Fixed Costs
Fixed Costs
Others
Chargeback
PaymentProcessing Costs
Current Transaction Cost 3-5% Cost Reduction of 80%
Noca's “Secure Credit/Secure Check”tm
DifferentiatorsNoca’s superior payment system will offer:
Superior Chargebacks: merchant first right of refusal reduces chargebacks substantially
Superior Chargebacks: merchant first right of refusal reduces chargebacks substantially
Analytics: an API enabling rich analytics for merchants
Analytics: an API enabling rich analytics for merchants
Real Time: provide real-time information regarding end-to-end payment experience
Real Time: provide real-time information regarding end-to-end payment experience
SKU detail: deliver full SKU information and checkout “snap shots”
SKU detail: deliver full SKU information and checkout “snap shots”
Noca Rides the Debit Trend Wave
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Visa Debit Surpassing Credit in 2008 • Tightening lending standards
• Reduction in revolving outstanding balances
• Numerous issuers reducing credit lines
• Legislation and regulation making credit extension challenging
• Consumer desire for “control”
Noca's system leverages increasing debit adoption
Credit Volume
Debit Volume
US Trends Favoring Debit for 20 years
Current Economic Environment Accelerating Shift to Debit
Easy Implementation of Mobile Payments
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Social Media Payments
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Actual facebook screen
Noca Value Proposition
• Good Consumer acceptance - Frictionless consumer experience
• Good Merchant acceptance - Ability to steer consumer from credit or debit option
• Lower cost transactions - Order of magnitude cost difference
• Lower regulatory hurdles - No PCI compliance
• Increased efficiency for recurring payments - Bank accounts do not expire
Adoption Metrics (Feb 10)
Total volume through network = $100’s K
Total number of Merchant signups = 362
Total Consumers = thousands
Average web transaction size = $102
Total number of Fraud/Chargeback/Disputes = 1
Percentage of fraud/chargeback < 0.1%
www.noca.com copyright© 2009 Noca Inc All Rights Reserved
www.noca.com copyright© 2009 Noca Inc All Rights Reserved
Competitive Assessment
Customer Friendly: No Registration or
Redirection
Registration or Redirection
Low Merchant Fees (0.75%)
High Merchant Fees 1-3% +$0.10-0.30
Current status
• 1M+ users signed
• 4M+ users discussion/LOI
• 80M+ users discussion/LOI
• 15M+ users discussion
• 20M+ users contact
Current status
• – Discussion/LOI
• Homeaway - RFP/RFI
• – LOI
The Founding TeamPankaj Gupta [Founder, President] Chief Network Architect at VISA 15+ years industry experience in financial services MS and BS in Computer and Information Science from
Ohio State University
S. Randy Nott [Chief Architect] Lead developer at VISA 15+ years Industry experience. BS in Computer Science from Western Michigan University
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www.noca.com copyright© 2009 Noca Inc All Rights Reserved
TeamGlenn Poppe [Biz. Dev]Harvard Business School, cum laudeEx Boston Consulting GroupEntrepreneurial experience, International Experience
Tony DeGangi [Lead, Security and Risk Engineer ]Ex MIT EngineerExtensive risk operations experienceBS, MS in Computer Science, Entrepreneurial experience
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Financials (How do we make profit)
0-1 Million UsersPer transaction
Transaction Cost $0.100
Verification Cost $0.100
SG&A Cost $0.080
COST (COGS + SG&A) $0.280
Avg Trans Size: $70
We charge 1.00% of which we keep 0.50(the other 0.5% in going for incentives)
Revenue/Per trans $0.375
Profit /per trans $0.10
EBITDA 35+%
1+ Million Users
Cross sell to Merchants
Advertising
Financial Institution
s
EBITDA 75+%
Financial Summary
Current Capital Raised = 350K, Individual Angel investors
Terms = Convertibles with discount
Pre-money Valuation = under discussion
Looking to raise $3.5Million
Use of funds = growth through infrastructure and staff augmentation
In 4 years, 50M users and 200+M in revenues