RegaloCard – All Information Proprietary and Confidential 1 Your Instant Mobile Money Transfer Spring Mobile Payments Conference March 2012 San Jose, California Gregory Keough Chairman and CEO Peer to Peer Mobile Money Transfer

RegaloCard – All Information Proprietary and Confidential 2 What We Will Discuss Today… 1.Who needs mobile payments? 2.Potential For Mobile Money Transfer 3.Lessons from the Real World – RegaloCard’s Mobile Payments Experience

RegaloCard – All Information Proprietary and Confidential 3 Unbanked are people without a checking or savings account. 7% of US is Unbanked One in 10 residents in the U.S. is an immigrant. Over half are from Latin America. Most immigrants are unfamiliar and inexperienced with the banking system 66% of Latin American Immigrants in the US are unbanked and the Mexcian rate is higher. The Unbanked

RegaloCard – All Information Proprietary and Confidential 4 What is this Consumers Primary Financial Transaction? People migrate to the U.S. to work, immigrants tend to be employed and have a strong savings ethic. They also tend to have little experience with financial institutions and accustomed to functioning solely within a cash economy. Immigrants who lack an account with a traditional financial institution rely on check-cashing and commercial remittance service establishments.

RegaloCard – All Information Proprietary and Confidential 5 Remittances the Financial Transaction of the Unbanked 60% of Latin American immigrant population in the US sends money home Average of 8-13 times per year. Those who have been in the U.S. longer send more money, but less frequently. Although immigrants are more likely to send regular remittances in the years immediately following their arrival in the U.S. 23 % continue to remit for 20 to 30 years afterward

RegaloCard – All Information Proprietary and Confidential 6 While they dont have bank accounts they DO ALL have mobile phones… Country Wireless Penteration US 102 % Mexico 85% El Salvador 180% Guatemala 88% Honduras118%

RegaloCard – All Information Proprietary and Confidential 7 What does this mean… There is an enormous opportunity to provide unbanked clients services using mobile phones… Especially Mobile Money Transfer.

RegaloCard – All Information Proprietary and Confidential 8 RegaloCard offers a mobile-to-mobile transaction that you purchase in the United States and it is delivered instantly to the mobile phone of the person you choose in Latin America enabling purchases and cash back within a network of leading local retailers. Through a proprietary mobile payment technology platform and unique business model, RegaloCard represents a new business segment –allowing consumers to send as little as $5 directed to specific uses – instantly and easily. RegaloCard’s Mobile Money Transfer RegaloCard is using mobile phones to build the Western Union of the next century.

RegaloCard – All Information Proprietary and Confidential 9 1 RegaloCard works as simply as a phone call making it familiar and easy to use for customers sending money to their home country. Visit any RegaloCard affiliated store in the US and pay the cashier for your RegaloCard transaction. Provide the mobile number of the recipient. Once approved, a confirmation code is received and instantly your RegaloCard account is activated. Upon activation the recipient back home instantly receives an SMS message on their mobile phone with their RegaloCard PIN code for redemption at any of the hundreds of participating merchant locations throughout Latin America The Recipient simply presents the PIN at any convenient and familiar location within the RegaloCard in-country merchant network for CASH payout or the purchase of any product or service. 23 How RegaloCard Works?

RegaloCard – All Information Proprietary and Confidential 10 RegaloCard Products: RegaloCard Mobile-To-Mobile Virtual Gift Card, for Your Family, To Be Spent at Leading Retailers in Your Home Country Instant - Immediately delivered anywhere, anytime – 24 x 7 x 365 with no need to wait in line at the bank or receive only during banking hours. Great for emergencies (communications, medicine, food supplies) or last minute birthday gifts. Easy - Send previously impossible “mini money transfers” of as little as $5. Directed - Specify how and where the money is spent. Convenient - Available from leading in-country merchants and all the places the sender and recipient currently shop (Mobile Operators, Pharmacies, Super Markets, Restaurants and more). Secure - Just like cash and utilizing multiple authentication checks. Trusted - Available brands and locations are already well known to, and visited by, the consumer.

RegaloCard – All Information Proprietary and Confidential 11 RegaloCard Products: RegaloPay Instantly Pay Your Families Electricity, Water, Telephone, Cable and Other Bills Back Home Instant - Your International Bill Payment is immediately processed and credited to your family member’s account Easy - Pay at convenient nationwide RegaloCard agent locations Directed - Make sure your money is spent on the things YOU think are most important Economical - Avoid expensive Money Transfer Fees with smaller amounts going directly to the billing source

RegaloCard – All Information Proprietary and Confidential 12 RegaloCard Products: RegaloCash Instantly Send $5 to $50 Cash To Your Family Back Home For As Little As 99 Cents Instant - Immediately delivered anywhere, anytime – 24 x 7 x 365. No need to wait in line at the bank or receive your money transfer only during banking hours. Easy - Available in all the places the sender and recipient shop. Redeem at thousands of in-country RegaloCard Merchant locations including Supermarkets, Pharmacies, Convenience Stores and more. Directed - You no longer need to send one large transfer and ask the recipient to split it up among your family members and payment requirements. Send the money directly to the person you want assuring they receive it. Economical - Send your money transfer for as little as 99 cents. Trusted - Available cash pick up locations are leading retailers already well known to, and visited by, the consumer.

RegaloCard – All Information Proprietary and Confidential 13 Easy – Available in all the places the sender and recipient currently shop; Instant – Immediately delivered anywhere, anytime – 24 x 7 x 365 with no need to wait in line at the bank or receive only during banking hours; Flexible - Send previously impossible “mobile money transfers” of as little as $5; Controlled – Specify how and where the money is spent; and Trusted – Available brands and locations are already well known to, and visited by, the consumer. Customer Benefits RegaloCard offers numerous advantages over the traditional money transfer model:

RegaloCard – All Information Proprietary and Confidential 14 Fox-Pitt Kelton Cochran Caronia Waller Leading Financial Industry Group Investment Bankers “Western Union – Initiating Coverage at Underperform: Model is Irreparably Flawed” We view RegaloCard’s technology as both disruptive and groundbreaking. For Western Union, RegaloCard provides evidence that the threat of a competitor devising a superior technology is no longer an abstract concept too distant to acknowledge—the threat is very real, and it’s here.” “We believe RegaloCard’s model will lead to devastating consequences for Western Union. No matter how much Western Union spends on new technology in an effort to defend its market position.” This Approach to the Unbanked Works… “RegaloCard technology both distruptive and groundbreaking” RegaloCard winner of the “Best New Prepaid Product” 2011 and “Top 300 Funded Startups in America 2011”

RegaloCard – All Information Proprietary and Confidential 15 Mobile Payments “Sweet Spot” is the Unbanked Consumer 1.They have clear needs that aren’t being met and feel more comfortable with mobile devices than financial institutions. 2.They are not going to change their ways quickly. Remittance are good example this is a cash to cash transaction – unbanked to unbanked transaction. 3.They have reasons to adopt and quickly use useful technologies. 4.Can act as “on ramp” to inclusion in the traditional financial system.

RegaloCard – All Information Proprietary and Confidential 16 To Sum Up… 1.Look for the pain…massive adoption is only from addressing a true need. 2.Don’t count on the incumbents to get it right. This is going to be HIGHLY disruptive. 3.Look for ever increasing use of mobile payments regionwide in unique formats, providing yet another leap frog moment for Latin America.

RegaloCard – All Information Proprietary and Confidential 17 Thank You…Questions???? Gregory Keough Chairman and CEO Your Instant Mobile Money Transfer