Mobile Strategy

mCommerce is hot right now

• People are saying that mCommerce is where eCommerce was 10 years ago.

1999 2007

But if you look at the numbers…Source: US census

The market is bigger.

There are already 3 billion devices in the market today that can funnel mCommerce transactions, and mCommerce adoption is running 5X faster than eCommerce

% of Phone MarketPhone Types As of Q2 2010 Interest in

Android^Samsung 21.9% limited

Motorola 21.9% strong

LG 21.8% tentative

RIM* 8.3% none

Nokia 8.3% none

Apple* 4.86% none

Microsoft* 2.63% none

Google*# 2.59% n/a

Palm* 0.96% none

*Smart phones#Google’s Android platform is open source. Samsung, Motorola and LG all have Android phones^ From Joel West, San Jose State University Smartphone Platform Competition slideshow

Major players in the market

Smartphone as % of market

2006 2007 2008 2009 2010 2011 2012 2013 2014 20150%

10%

20%

30%

40%

50%

60%

70%

Smartphone % of market

Source: Joel West, San Jose State University

mCommerce

*Source: IE Market Research 3Q 2010

“…to exceed 1 Billion users and $1 Trillion in transactions by 2014” *

Overall Commerce

1997mCommerce

2015 & beyond

Commerce pie is finiteand it is shifting…

eCommerce2000

eCommerce

eCommerce2010

mCommerce2010

*Source: IE Market Research 3Q 2010

Who will win which piece of the pie?

Payments-Enabled Smartphones

9

Mobile Phone Market Summary

• Smart phones are only 23% of market today, but growing

• Mobile devices far outnumber computers as access points to internet / data / money transfers

• Multiple OS’s (iPhone, Blackberry, Android, Windows 7) that are incompatible vs. computers (Mac, Windows, Linux)

What is mCommerce?

• Moving payment and transaction data securely using a mobile device.

Mobile Merchants

Extended Workforce E-Tailers

Use their phone to accept Credit Cards

Access company’s systems on a mobile phone

Put their storefront securely on their customer’s phone

Why hasn’t it taken off in the US?

• According to Forrester Research the largest barriers for use are:

Credit Card Security Concerns

• Most mCommerce solutions go through a mobile browser.– Offer gets sms’d to the user’s phone and launches

a mobile page for a web browser– Anyone can use it, no authentication

• PCI-DSS, PA-DSS compliance issues• Keyed entry vs. swiped

Fear of ‘klunky’ user experience

Consider e-MailHow many people do you know that use e-mail in their

phone’s browser?• Too painful • Scroll too much to read• Wrong for the form factor

Instead they use an e-mail client. – Yahoo, G-mail, AOL all have applications for their

user’s cell phones

Partner with Ingenico and ROAM Data to provide a mobile platform that best fits your growing needs

What is Ingenico ROAM?

Partnership between Ingenico and ROAM Data, the leading mobile commerce services provider in the U.S.

Goes beyond payments with patented technology. Delivering device independent, dynamic apps to virtually any mobile device

Fully hosted service, PCI-DSS & PA-DSS Compliant, 1 stop shop

Based in Boston, founded in 2005 by seasoned payment and mobile industry experts from MIT and Carnegie Mellon

The future of Mobile Commerce does not go through a browser.

Have you ever tried to buy buy something on your phone?

• UI inconsistent– Scrolling to get to fields outside of window– Too many pages

• Need a browser on your phone– Limits the # of phones you can reach

• No off-line mode

ROAM’s award winning, patented and secure Player technology gives it the leg up

ROAM Patented Technology

Time to Market Advantages

• ROAM’s mobile Player middleware technology allows write once-run anywhere capabilities.

• ROAM’s IDE pulls APIs from web-services to quickly create custom applications that run on hundreds of devices.

• We can deploy faster and enter new markets quicker than our competitors.

Breadth of Devices

• ROAM’s mobile Player technology allows the same application to run on many different operating systems and hardware configurations.

• Hundreds of mobile phones on the market today.• PC and Mac Virtual Terminal• Dedicated POS terminals and devices• Encrypted audio swiper fits into audio jack.

– Not built for one particular form factor.

Service that Follows the User

• Our product is a service.– When a merchant changes phones, the service

follows them. – ROAM provides all technical support

• Provisioning the merchant’s devices• Certifying new phones in the market

– ROAM takes care of mobile, so you can focus on your payments business

What Ingenico ROAM offers for mCommerce

Ingenico ROAM

Mobile merchant account solution for small businesses, and other functions - easier ways to do business on the go.

Mobile MerchantSolutions

24

The Mobile POS market•27 million small business owners in the US – 78% of total businesses

•15% currently have a merchant account (our solution will help increase this number)

•What % of this new segment can your sales staff talk with?

•What % can they close?

****Note opportunity to tap existing merchant base beyond new merchant base. (Existing merchants who want mobile, requires creative marketing.)

27,000,000

4,050,000

?

?

Based on Merchant Category Code (MCC)MCC is the same as SIC Codes

Target Markets-US

• 550,000 plumbers , 12% self-employed• 695,000 electricians, 9% self-employed• 51,000 Home entertainment installers• 1.7 million home health aides• 122,000 massage therapists• 1.2 million landscapers• 67,000 pest control workers• 1.3 million childcare workers, • 299,000 building cleaning workers • 261,000 health trainers

Total of above: 6,360,000 plus 15,100,000 Direct Sellers in the US (AVON, Mary Kay, Amway, etc)

Also target: Any IVR users, Virtual Terminal users, current low volume wireless merchants, Brick and Mortar Merchants for special events

• 45,000 private detectives• 232,000 taxi drivers• 308,000 HVAC installers, 54% worked for

contractors, 16% self-employed• 221,000 artists, 60% self employed• 72,000 interior designers• 152,000 photographers, 80,000 + self

employed• 49,000 chiropractors, 44% self employed• 170,000 psychologists, 34% self employed• 74,000 self employed sales reps

* From the US Bureau of Labor and Statistics

Small Business Owners

• Shorter sales cycle• Not as price sensitive• Not a lot of cash to invest• 27,000,000 of them

28

Competitive LandscapeCompetitors Security Device Breadth Hardware Accessories

Ingenico ROAM ROAMpayPCI-DSS, PA-DSS certified, DES3 secure, 168 bit encryption

400+ phones; Blackberry, WinMo, Android, iPhone, J2ME, Brew, Laptop/Desktop VT, dedicated POS terminals

Encrypted audio jack swiper/Bluetooth printer swiper

Apriva SecurePOS256 bit AES Encryption, Message Authentication Code, PCI certified

Windows Mobile Apriva Wireless Printer -

CHARGE AnywhereHTTPS, SSLv3 at 128-encryption

Multiple devices across multiple platforms (Blackberry, WinMo, WebOS, Android, iPhone, J2ME)

Blue Bamboo Bluetooth printer

VeriFone PAYware PCI DSS 1.2 approved. iPhone 3G or 3GS Credit Card Encryption sleeve

MerchantWARE Mobile Encrypted SSL ConnectioniPhone, Blackberry, Android, and WinMo phones

Triple DEA data encryption Bluetooth Card Reader

Infinite Peripherals Multiple devices

Intuit GoPaymenthttps connect over SLL at 128-encryption

Multiple devices across multiple platformsBlue Bamboo Bluetooth printer, Bluetooth Card Reader

Square128 bit SSL on physical servers; PCI Level 1 certified;

iPhone and Android only Free audio swiper

Hypercom Smartpayment Mobile

iPhone

e-NablerWindows Mobile PDA's running Pocket PC software

All-in-one Enterprise PDA , Infinite Peripherals Linea Pro for iPod Touch, Bluetooth printer swiper

ROAMpay is PCI-DSS and PA-DSS certified

• Application outside of the browser. – allows each phone to be fully authenticated

• DES3 168 bit double encrypted data transfer• In off-line mode, data is encrypted.• The only encrypted audio swipe device in the

market today.• Technology and service model is patented

Customer-centric solution

• Your merchants can now conduct business where ever they are whenever they want, on the device they want.

• # of supported devices increases your potential reach into your target markets

ROAM’s got a consistent UI

• ROAMpay is a dedicated smart client like eMail– Its own application– Can be played on smart and non-browser enabled

phones– Same UI and transaction flow no matter the phone

or carrier– Look and feel can be customized to fit your needs

• Customer can change phones, and the service stays the same.

Main Menu Key Functions, Select “Credit Sales”

Log Notes, email Receipt as Option

Detailed receipt emailed to merchant and to customer (all data tracked on system)

Off-line capabilities

• Your clients can also accept credit cards and other business information while in off-line mode

• Once back in service, the encrypted stored data will be sent to the servers for authorization and processing.

What Ingenico ROAM offers for mCommerce

Ingenico ROAM

Allow cardholders to check balance, activities, receive alerts, make payments, and transfer funds on their mobile phone.

Mobile Wallet

Solutions

Mobile merchant account solution for small businesses, and other functions - easier ways to do business on the go.

Mobile MerchantSolutions

Mobile Banking/Mobile Wallet

• According to Berg Insight, 894 million Mobile Banking users by 2015

• In 2010, only 1,000 financial institutions out of 30,000 have a mobile banking application – Mobile Marketing Association

Lots of room for growth

What Ingenico ROAM offers for mCommerce

Ingenico ROAM

Allow cardholders to check balance, activities, receive alerts, make payments, and transfer funds on their mobile phone.

Mobile Wallet

Solutions

Smart POS solutions, Contactless Enabled, dynamic updates with apps that can tie systems together

Retail Solutions

Mobile merchant account solution for small businesses, and other functions - easier ways to do business on the go.

Mobile MerchantSolutions

Extended Workforce market

• Direct Sales companies• Government agencies• Pollsters• Any company with a mobile workforce

Apps to not HAVE to be payment related. We can extend CRM, Order Entry, reporting functionality

Enter QuantityAdd additional SKUs

Automatic Price Lookup From Server

To Calculate Total: Enter Zip code, Shipping Option, Discounts – if any

What Ingenico ROAM offers for mCommerce

Ingenico ROAM

Allow cardholders to check balance, activities, receive alerts, make payments, and transfer funds on their mobile phone.

Mobile Wallet

Solutions

Smart POS solutions, Contactless Enabled, dynamic updates with apps that can tie systems together

Retail Solutions

Your mobile storefront and actionable offers to hundreds of phone models your customers carry.

Mobile Consumer Solutions

Mobile merchant account solution for small businesses, and other functions - easier ways to do business on the go.

Mobile MerchantSolutions

E-Tailers

• Large retailers with web presence• E-tail only

• Current apps– Drive purchases to mobile web– Drive customers to store

• ROAM solution can turn mobile into Sales Channel. • Capture impulse purchase in fewest clicks, securely, on

the device your customers already own.• Push marketing capable – send targeted offers, to

capture additional revenue.

For Consumers To Buy on their Mobile:Merchants can deliver their mobile storefront and offers to their

best customer’s handsets

1. Convenience for Consumers!• Get immediate access to detailed product and

pricing information.• Navigate through a catalog to buy• Special Offers / Coupons that are actionable!

ROAMbuy API Examples(Buy from Mobile App, or Adds)

1. Hit “Buy” on the ad 2. Confirm Product 3. Enter Order Parameter(s)

ROAMbuy API Examples(Convenient Purchase & Fulfillment!)

1. Confirm Purchase 2. Secure ROAMpay 3. Fulfillment & receipt

ROAMbuy API Examples(PULL usage, “Value of the Day”)

1. PULL-“Value of Day” 2. See Deals/Overstock 3. Buy with Convenience

ROAMbuy API Examples(PUSH Marketing, Target Customers)

1. PUSH Marketing 2. Targeted for Customers 3. Impulse Buy

ROAMbuy API Examples(Buy Instantly or Drive Store Traffic)

1. PULL-“Value of Day” 2. Buy on the Spot 3. Redeem Coupon in store

Beyond Player Apps

• ROAMplayer middleware gives ROAM clients the reach across hundreds of devices

• Larger clients also want to invest in using the widgets inherent on certain devices (iPhone, iPad, Android, etc…)– Most dedicated apps don’t have full payment and order

fulfillment capabilities– Many embed their e-commerce site within their app, or link

to it from their app.

For them we have the ROAMbuy API53

Partnership

• You• Ingenico• ROAM Data

• Building beyond 2011

Backup slides

Only ROAM Updates Your Apps Easily and Instantly Across All Supported

Devices… why be bounded?

ROAM Competitive Advantages & Patented Differentiations

• Technology Advantages: – Device agnostic vs. device specific – Dynamic vs. static applications– Peripheral capable (voice, card reader, NFC, etc.)– Push capable (for enterprise users or cardholders)– IDE for rapid Application Development

• Services Advantages:– Full mobile services provider for your end-users– Full payment gateway provider , PCI Certified & Secured– Services Compatible with other 3rd Party Vendors

“Service The End Users”: Provisioning, Rights Mgmt, Fully Hosted

Services & Support

4

Dev & Integration to Legacy Easy: Easy Web Services Integration, Non Invasive,

Hosted IDE, Easy & Fast to build, manage, add new applications

2

Built-In Payments

& Other Web Services.

3

Devices Complexity Resolved: Device & Network Agnostic, Secure, Easy to Use!

Interactive, Peripheral Enabled, Dynamically Update Your Apps, Push

Capable

ROAM’s 4 Key Breakthroughs, To Deliver Scalable Mobile Commerce

1

The

Cloud

UIUI

Device Complexity Solved

59

C Library

ANSIUI

ANSI

Objective C

UI

Objective C

J2MEUI

J2ME

J2SEUI

J2SEPC/MAC

Virtual Terminal

AndroidUI

AndroidLibrary

Device Complexity Solved

60

Web Service

Integration with Legacy Systems

61

Systems API

Subset of API

The Cloud

3DES

Confirmation of authorization is sent back to the device using 3DES encryption

Built in Payments

62

3DES Key 1

3DES Key 2

We double encrypt all data as it’s entered on the device

3DES Key 1

Our mobile gateway decrypts the first key and sends the single encrypted data to our payment gateway

3DES Key 2

Payment Gateway

PCI PCI

Our PCI certified payment gateway decrypts the second key and processes the transaction, getting authorization from one of our payment platform partners

3DES Key 2

J2ME App #3

App #2

J2ME App #3

App #2

J2ME App #3

App #2

J2ME App #3

App #2

J2ME App #3

App #2

J2ME App #3

App #2

Payment Processor #2

(Prepaid)

Integration & TestingMarketing & Revenue Share

Payment Processor #3

(checks)

Integration & TestingMarketing & Revenue Share

Processor #4 Integration & TestingMarketing & Revenue Share

Processor #5Integration & TestingMarketing & Revenue Share

Payment Processor #1

(Credit)

App Developer#1:

iPhone

iPhone App #1

Integration & TestingDev, Certs, BoardingApp Changes, Services Marketing & Revenue Share

Traditional Mobile App Architectures Do NOT Scale for Even One App, Let Alone Many Changing Apps

App Developer #2:

J2ME

J2ME App #1

Dev, Certs BoardingApp Changes, Services

Integration & Testing

Marketing & Revenue Share

RIM App #3

RIM App #2

App Developer Symbian

App Developer

Palm

App Developer #3Android

Android App #1

Dev, Certs, BoardingApp Changes, Services

App Developer WinMobile

WinMobApp #1

Dev, Certs, BoardingApp Changes, Services

App Developer

RIM

RIM App #1

Dev, Certs, BoardingApp Changes, Services

App Developer

Brew

Dev, Certs, BoardingApp Changes, Services

BrewApp #1 Enterprise

App #1 with

Payments

Enterprise App #1

with Payments

Enterprise App #1

with Payments

Enterprise &

Commerce App #1

What AboutEnterprise &

Commerce Apps?3rd Party Apps???

J2ME App #3

App #2

J2ME App #3

App #2

J2ME App #3

App #2

J2ME App #3

App #2

J2ME App #3

App #2

Enterprise &

Commerce App #1

Enterprise &

Commerce App #1

Enterprise &

Commerce App #1

J2ME App #3

J2ME App #2

Payment Processor #1

(Credit)

J2ME App #1

ROAM Approach: Highly Scalable! Write Once, Run Everywhere! Update Anytime! As-A-Service!

iPhone App #1

RIM App #3

RIM App #2

ROAMMobile

Platform &Services

Android App #1

Dev, Certs, BoardingApp Changes, Services

WinMobApp #1

RIM App #1

BrewApp #1 Enterprise

& Commerce

App #1

Payment Processor #2

(Prepaid)

Payment Processor #3

(Checks)

Integration & TestingMarketing & Revenue Share

Processor #4

Processor #5

Enterprise &

Commerce App #1

.

.

.. . .