Introduction to Mobile Payments Servebase Global Card Solutions Introduction to Mobile Payments Servebase Global Card Solutions & Thyron Systems Andrew Brooks Business Development Director EMEA And Nigel Cullum Sales & Marketing Manager

Agenda Introduction – Servebase/Thyron Systems The Mobile payments market Current solutions New developments

Background to Servebase Established in 1986 An independent and self-financing business Servebase solutions process 30 million transactions annually Representing GBP 8 Billion in value Company operating revenue (2004) GBP 3.2 million Over 50 personnel servicing clients in 30 countries Customer Service ‘help desk’ manned 24 hours per day 7 days per week 365 days per year Est 1986 by current owner. Processing in multiple currencies. Revenue building year on year at excellent growth rate. Field offices Ireland, Greece, Australia, Italy etc. Cust service – real people behind real desks (no mobile phones)

Background to Thyron Originally formed 1989 – New management 2002 Self financed and cash positive Focus on providing hardware and software for “Secure Payments” and “Mobile Transaction Solutions” Recognised leader in field of Mobile Payment Technology Mastercard TQM certified UK’s only independent manufacturer of payment terminals 40,000+ terminals in the UK 30+ people, 85% R and D, application development Sub-contract manufacturing to UK and Far East

Market Sectors Mobile Payments Transportation Hospitality

Thyron UK Strategic Partners GPRS partners Wireless-LAN partners Card processing bureau Partner

MOBILE PAYMENTS MARKET…

What is a Mobile Merchant..? “A trading entity that needs to accept credit or debit cards in locations where traditional telephone based communications are not accessible or available”

Mobile payment business sectors Rent and fine collections (public and private sector) Market traders Call out charge collections / repair payments (utility companies) Door to door deliveries Airports/Railway station concourse (linked with Hot Spots) Queue busting Exhibition payment collections Ticketing Shopping centres Contract caterers Restaurants Hotels, coffee shops etc. Roadside rescue Taxis

Types of Mobile Payment Solutions Mobile – based on using wide area wireless technologies, GPRS, Paknet Taxis Market traders Roadside rescue Portable – based on using local area wireless technologies, WLAN, Bluetooth Restaurants Hotels Coffee shops

Elements needed to carry out a “Mobile Transaction” A portable, battery operated credit card payment terminal with wireless technology (Thyron MPT500 series) A wireless connection to send and receive transactions from the terminal to the service bureau (GPRS/WLAN) A managed service bureau from Servebase (Axis) to securely connect the transactions to the Banking networks

Mobile Payment Terminal MPT500 Series Mobile/Portable Card Transaction Terminal

PayCell® MPT 500 - Features MPT500 Series: Smallest footprint terminal of its type Light – less than 525gms Fully Chip and PIN certified All wireless communications available GPRS WLAN Bluetooth All card types supported Easy Load Printer Long life battery technology Charging Cradle Integrates into tills and EPOS systems

GPRS/WLAN EPOS Link – to EPOS or cash register Thyron MPT500 Cash register but could be a cash receipting system at a council payment desk PC-EFT or Axis solution Bank

Benefits of a mobile payment solution Take a payment anywhere, anytime Chip and PIN to reduce fraud and charge-backs Lower merchant service charges Improved cash flow through faster payment collection Fast transaction times (via Servebase) Access to Servebase’s Flex management reporting tool for: Simple and central reconciliation facilities Improved management reporting Secure web based access to transaction logs Reduced communications costs (WLAN with ADSL) Easy to install – low infrastructure costs EPOS integration providing local reconciliation

NEW DEVELOPMENTS…

WiFi Chip & PIN Hotspot Solution

Who are The Cloud…? Europe's leading WiFi network provider Over 6,000 hotspots across the UK Experience in delivering complex WiFi solutions at: Canary Wharf, Manchester United, BMW, Coffee Republic, Bullring shopping centre The only carrier neutral network in the UK Supporting over 25 service providers (BT Openzone, Skype, Vodafone etc) Allows users with service provider or roaming WiFi accounts to log on to the internet. Visitor Pay-as-you-Go service

WiFi Chip and PIN Hotspot Solution Wireless Hotspot PC-EFT or Axis solution MPT510 Terminal Authorisation/Settlement Bank

Benefits to the Merchant Increases foot fall and dwell time at your location Improved revenue opportunity for your site Revenue Share Example Monthly public access revenue share for the merchant, paid by The Cloud is 20% of service provider and 40% of PayGo revenues generated from the site For every £4.50 PayGo voucher purchased on-line by a customer for an hours Internet access, a merchant can earn up to £1.47 per voucher after transaction costs and VAT e.g. If a merchant sells 20 vouchers per month you can expect to earn up to £29.44 which pays for the monthly ADSL subscription and support for one payment terminal. Increased user flexibility New market areas possible based on uptake on WiFi enabled consumer products (PDAs/phones/Sony PSP)

“MOBePOS”

Features Bluetooth enabled GPRS terminal MPT500 (b) Links to external Hand Held Computing terminals via Bluetooth Uses GPRS connectivity to gain authorisation via Servebase Flex system Simple API between Hand Held Computer and Terminal allows easy integration to existing applications without requiring Bank certification Uses printer mechanism on MPT500 (b) to provide non card related receipt details (VAT receipts, delivery notes etc) – no need for separate printing mechanisms

Target markets Logistics Pay on Delivery Rent and fine collection (public and private sector) Travel and Transport Mobile EPOS Hospitality Any Hand Held computing application that demands Chip and PIN

Summary Mobile payments untapped market Technology is available and in use today Thyron/Servebase solutions provide flexibility for your specific business requirements Enhanced services can improve customer experience and benefits Face to face card payments have no barriers!

What do Servebase do? Providers of card processing solutions for merchants, banks and processors globally Enterprise software and hosted solutions Multi-card, multi-currency, multi-merchant and multi-acquirer functionality within all solutions Accredited by Visa, Mastercard, American Express, Diners International and JCB EMV approved for chip and PIN

Introduction to Mobile Payments Servebase Global Card Solutions Introduction to Mobile Payments Servebase Global Card Solutions & Thyron Systems THANK YOU AND ANY QUESTIONS