1. EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST EYO, BASSEY FRANCIS – CEO PAYPORTE JUNE 2016 CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

2. PREAMBLE The worldwide expansion of the internet has considerably contributed to the transformation of trade and store transactions. E-commerce, or electronic commerce, largely means buying and/or selling products through the internet and is commonly associated with online shopping. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

3. ONLINE PAYMENT OPTIONS CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016 Today it’s more important than ever to ensure your online payment process matches your consumers’ needs

4. CARD PAYMENTS Everyone probably knows card payments. There are global and local card schemes like MasterCard, Visa ; Verve and e-Transact cards (Nigeria). The shopper purchases goods or services using their credit, debit or prepaid card online. Cards could be seen as the 'key' to the consumers bank account, whether it is a deposit (debit), a loan (credit) or a stored value (prepaid). Cards can be used to 'unlock' and transfer the shoppers money to the online merchant. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

5. DIGITAL WALLET PAYMENTS Digital Wallets allow shoppers to link credit cards or other alternative payment methods to a virtual wallet. Consumers can then pay using stored value in their wallet or instantly pay with their stored card or alternative method. They provide improved payment experience and simplify online and mobile checkout. Especially on mobile devices consumers appreciate an enhanced and swift payment experience. These digital wallets should be seen as the virtual look-a-like of our physical wallet. These eWallets can contain (pre-registered) credit cards, debit cards, gift and loyalty cards and provide access to alternative payment methods like online bank transfers. Some eWallets allow the consumer to preload money into their wallets. PayPal's Wallet is probably best known to many. KongaPay is also available in Nigeria CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

6. DIGITAL WALLET PAYMENTS Preloaded Digital Wallet A Preloaded Digital Wallet is a wallet which is prepaid and has e-money preloaded to use as an alternative to cash. Users of the wallet have to fund the wallet before they can pay for an online transaction. They can add funds to the wallet via various ways of payment such as cards or alternative payment methods. The balance on the wallet is used to pay for online and mobile transactions. This type of Digital Wallet is the traditional eWallet model. Pass-Through Digital Wallet A Pass-Through Digital Wallet is where the eWallet authenticates the user, but the transaction is being settled on a linked payment system, such as a bank account, a credit, debit or prepaid card. The user of the Wallet is not using the funds stored in the Wallet but selects during the moment of payment one of the 'stored' payment methods to finalize the payment to the merchant. Traditional Preloaded Digital Wallet brands have added this type to their offering allowing the user to choose between either two at the point of checkout. This is why you will find most of the Preloaded Wallet suppliers offering both types. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

7. ALTERNATIVE PAYMENTS – EMERGING PAYMENT OPTIONS Alternative Payments Methods do not rely on cards. Examples include Online Bank Transfers Checks Direct Debits Invoices Mobile Carrier Billings Offline Cash Payments SMS/USSD Crypto-currencies (e.g. Bitcoin). CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

9. Bank Transfers These payment methods connect with the shoppers bank where the shopper can authorize a transfer. The transfer is prepared by the merchant and only has be authorized by the shopper within his own online bank environment. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

10. Direct Debits A payment method where the merchant initiates a money transfer from a shopper to itself. In most cases a mandate (either paper or electronic, with different levels of authentication) is required. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

11. Mobile Carrier Billing These are payment methods that require a mobile phone to authenticate the shopper. Some of these collect the money via the phone bill (carrier billing), others behave like a wallet. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

12. Invoices These methods take over the collection risk of the payment. They guarantee payment to the merchant, either by some sort of insurance or by taking over the invoicing process. To do this, they perform their own assessment of the shoppers risk profile and accepts or declines it online. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

13. Checks A check is a payment method where a (virtual) form (the check) is submitted. The value of the check is determined when filling out the form. The amount is collected whenever the receiver of the form hands in the check. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

14. Cash on Delivery A payment method that uses physical tokens, coins or bank notes which are handed over at the time of delivery of goods. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

15. SMS/USSD/SHORT CODE In the predominant model for SMS payments, the consumer sends a payment request via an SMS text message or an USSD to a short code and a premium charge is applied to their phone bill or their online wallet. The merchant involved is informed of the payment success and can then release the paid for goods. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

16. QR Codes: The QR Code is presented on the mobile device of the person paying and scanned by a POS or another mobile device of the payee The QR Code is presented by the payee, in a static or one time generated fashion and it's scanned by the person executing the payment CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

17. Specials The Specials payment category is one that cannot be categorized yet and where the Payment Method has only been considered a way of payment on the Internet fairly recent. An example of such a method is Bitcoin, Android pay, Apple Pay CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

19. 46% are Payment Related Reason Why Shoppers Abandon Cart 68% - Average Cart Abandonment Rate CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

20. The Future - Who rules?

21. WHAT ABOUT THIS? Guaranty Trust Bank (GTB) *737*amount# Fidelity Bank 770*amount# First Bank *894*amount# Sterling Bank *822*Amount# Skye Bank *389*076*1*Amount# United Bank for Africa (UBA) *389*033*1* Amount# EcoBank *326*Amount# Zenith Bank *302*Amount# Stanbic Bank *909*Amount# Access Bank *901*Amount# First City Monument Bank (FCMB) *322*214*amount# Wema Bank *322*035*amount# Diamond Bank *710*555*Phone no*Amount*PIN# Unity Bank *322*215*amount# Heritage Bank *322*030*Amount#. KeyStone Bank *322*082*Amount#. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

22. *737*EcommerceID*OrderID*Amount#Send Let the banks take the short USSD Codes to the next level CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016 Payment Innovation

23. DIRECT CARRIER BILLING DCB offers more than a fast and convenient method of paying for purchases. In many developing nations, DCB offers the only way to pay for goods and services, especially those that are purchased online. 95% of the world’s 7.14 billion people have a cell phone account, while only 49% have a bank account and only 30% have a credit card. Allowing purchases to be added to the cell phone account opens new markets for Online retailers, and can improve the quality of life for millions of people for whom goods and services would otherwise be inaccessible. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016

24. e-wallet services like PayPal and other similar platforms are on track to eclipse online credit-card use by 2019. Generally, consumers see these platforms as more secure, flexible and convenient.

25. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016 At least one-third of card holders refuse to buy online using credit cards because they fear fraud.

26. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016 CONCLUSIONS Advances in electronic and technology-based payments have accelerated and will continue to change. However, all payments are not yet equal. Key opportunities exist for merchants to shift payment mix or reduce payment-related costs.

27. CBN CASHLESS CARDEXPO 2016 - EMERGING ONLINE PAYMENT OPTIONS AND THE IMPACT ON CART AND COST - PRESENTED BY EYO BASSEY CEO PAYPORTE.COM, JUNE 2016 THANK YOU!