ViVOtech Overview

1
FSTC Annual Conference - 2008
Mobile Payments Promotions Hans Reisgies NFC
Business Development June 18, 2008

2
about ViVOtech

• Enabling 3rd Generation Payment Technology
• Market Leading Contactless Readers for Point of
  Sale
• NFC Software Solutions for All Ecosystem
  Participants
• Transaction Software Prepaid/Gift, Smart
  Posters, eCoupons
• Serving Customers Worldwide
• 400,000 NFC/contactless readers shipped in over
  30 countries
• Headquarters Silicon Valley
• Design Centers Silicon Valley, New Delhi
• Support Centers London, Singapore,
• Tokyo, Frankfurt
• Experienced Team with Strong Backing
• VCs Draper Fischer Jurvetson, Alloy Ventures
• Key Investors Nokia, Motorola, First Data, NCR,
  Citibank

Slide 2
3
Contactless Card Issuance in United States
More Than 45 Million Contactless Cards Have Been
Issued
In pilot
Trend on Issuing Co-Branded Contactless Cards is
Growing
4
400,000 Contactless Readers are Installed at
110,000 Merchant Locations in United States
All Locations in United States Enabled or Are in
Process
Regionally Enabled or in Pilot
Recently Some Merchants Have Started to Take the
Lead for Their Own Programs!
5
New Cash Dominant Locations Are Also Getting
Contactless Enabled
Taxi Cabs All Taxis in Philadelphia - Enabled
Most of 13,000 in New York - Enabled Las
Vegas, Chicago, Boston, Dallas - Next Toll
Booths Ohio Turnpike - Enabled More - Under
way Parking Meters DFW airport, Central Parking
(NY) Enabled Aggregated parking meters
Underway Vending Machines 20,000 Coca Cola,
Other machines Enabled
continuous Stadiums Enabled
continuous
Slide 5
6
Worldwide Contactless Card Payments Is Growing
Providing the Building Block for Mobile
55 M Cards Issued 150,000 Merchant
Locations Enabled
Europe Middle East Africa United
Kingdom France Italy Austria Turkey UAE Switzerlan
d South Africa Poland Spain Lebanon Netherland Ice
land Sweden
Asia Pacific Taiwan Malaysia, Singapore Philippine
Indonesia Hong Kong Thailand China India Australi
a Korea Japan
Americas United States Canada Mexico Guatemala
7
Contactless Readers for Contactless Mobile
Payments
Countertop / Mounted
Window-Mount
Compact Drive-Thru
8
Contactless Provides A Clear Solution Roadmap for
Banks Retailers
Phase 1 Phase 2 Phase 3
NFC phone enabled Card Programs, Smart Posters,
Coupons One-on-One Mobile Marketing
Enable POS with For Branded Contactless Cards
Issuing Contactless Gift, Prepaid, and/or Loyalty
Devices

• Benefits
• Replaces Cash Faster
• More Transactions
• Bigger Transactions

• Benefits
• Higher Usage of Cards
• Individualized Promotion Services
• Electronic Coupon Issuance Redemption
• Location Based Targeted Loyalty Programs
• Cross Marketing/Selling working with retailers

• Benefits
• Better Wallet Share Increased Card Usage
• Increased Customer Loyalty
• Added Security

9
The Mobile as a Payment and Interactive Marketing
Device

• From Back Pocket to Front Pocket

• Virtual Coupons

• Virtual Tickets

• Personalized on Line

• Personalized in Store

10
NFC Mobile Payments

• NFC phones to allow consumers multiple payment
  options
• Pay at physical stores
• Credit, Debit, Pre-paid, and ePurse Card
  Payments
• Pick up redeem coupons electronically
• Receive payments, coupons, tickets OTA
• Manage payment, promotions, and coupons
• Service discovery applications
• Consumers to download payment cards OTA
  (Over-The-Air)

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NFC Smart Posters Can Drive Individualized
Promotions Based on Location and Profile
2. Consumer and Tag ID info sent to Back-End
Tag I.D.
Consumer I.D.
Generic Promotion Poster
1. Customer Taps NFC Smart Poster at Retailer
3. Marketing server issues personalized
promotions to phone based on location, interest
and personal profile.
Customer 1
Customer 2
Review all promotions
12
ViVOtech Provides Essential Infrastructure
Software Hardware for Contactless NFC Mobile
Ecosystem
(2) NFC Mobile Payment OTA Infrastructure
Software
(3) Applications Software
(1) POS Infrastructure Hardware Software
13
Sprint-BART Trial Overview

• Sprint, BART, Jack-In-the-Box Trial Objectives
• Integrate with Existing Commercial Systems
• Multiple Issuers/Segments Possible?
• User Management via Phone Only?
• Top-Up of ePurse and Online Cards Possible via
  Phone?
• Scope of Trial
• Launch January 2008 thru May 2008
• Any Existing Sprint and BART EZ-Rider Invited
• 250 Consumers Switched Their Primary Phone to NFC
  Phone
• Supporting Partners
• ViVOtech NFC Software Technology Provider
• Samsung NFC Phone Providers
• First Data Corporation JIB Card Issuance and
  Top-Up Processing
• SpeedPay BART Top-Up Transaction Processing

Slide 13
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Highlights of Sprint-BART Trial

• Bay Area Rapid Transit (BART)
• BART System based on MiFare card (ePurse style)
• Reuse of Existing BART Readers in Fare Gate
  System
• Users Register for Auto-Top Up via Phone UI
• Jack-In-the-Box
• Jack-in-the-Box Stored Value Card based on MiFare
  (Online style)
• Jack-in-the-Box readers deployed by Card
  Associations
• Users Register for Top-Up on Demand on Website
• Samsung a920 CDMA Phone
• NFC is not just for GSM world
• No SIM, No Problem with Embedded NXP SmartMX
  Secure Chip
• Single Wallet, Multiple Applications from
  Different Issuers
• User Initiates the Download of Cards from the
  phone (not the web)
• And

Slide 14
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Latest Trial Sprint/BART/JIB TrialFull OTA
Provisioning or Transit and Merchant Cards
2. Get directions to the nearest Jack in the Box
on your phone screen
1. Tap your phone on Find Your Burger NFC
Poster at the Powell BART Station in San Francisco
3. Pay for your meal with your Jack CAH prepaid
card on ViVOpay readers
Click the link below to view coverage from local
TV stations spx?Onum3922B685-F72E-4AE5-8707-C8F22E7F333F
http//cbs5.com/video/?id30620_at_kpix.dayport.com 
 
Slide 15
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NFC Pilots Announced Only
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Summary Learning from Trials - Consumers Bank
and MNOs

• Banks
• Must be easy/intuitive to download a card
• Customer initiated-single session key
• MNOs
• Consumers LOVE applications
• Banks dont all behave in the same way

Mass deployment will require close
collaboration
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Conclusion

• NFC Mobile Phone is a breakthrough technology
  
• First Open Standards Based Mobile Payments and
  Marketing Opportunity
• Will play a critical role in the success of
  unattended/kiosk industry growth
• Huge Growth Opportunity for
• Mobile Operators
• Transit Systems
• Merchants, Kiosks, Vending Machines, Parking
• Card Issuers
• Retail Marketers
• Financial and Unattended Transaction Service
  Providers
• ViVOtech Is Uniquely Positioned to Enable Trusted
  Service Manager Role
• Unique NFC infrastructure and applications
  software
• 100s of thousands of NFC readers installed

19
Thank You!
Hans Reisgies Director, NFC Business Development