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The Largest Independent Payment Infrastructure

“Disruptive Innovationen in der

Finanzwirtschaft”

Vortrag 02.03.2016

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High Income Population is Overserved with Payment Options

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Whereas Low Income Population is Underserved and existing Payment Options are inconvenient and expensive

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Germany is still extremely cash-driven

Credit Card Penetration in GER

Online Banking Usage in GER

Source: “Zahlungsverhalten in Deutschland”, Deutsche Bundesbank 2014

Source: BITKOM; Basis: Eurostaat (Stand: 02/2015)

Payment Behavior in German Retail

Source: “Zahlungsverhalten in Deutschland”, Deutsche Bundesbank 2014

Cash Debit Card

Credit Card

No User User

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Especially Low-Income Population Extensively Uses Cash

Usage of Payment Methods According to Net Income:

Net Income

74,7%

55,0%

43,6%

0% 20% 40% 60% 80% 100%

below 1500 €

1500 up to 3.000 €

above 3.000 €

Cash Debit Card Credit Card

Bank Transfer Others Online Payment

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Cra$smen2.100€GrossIncomepermonths

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Saleswomen/-men1.400€GrossIncomepermonths

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8

Waitress/Waiter1.300€GrossIncomepermonths

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9

HaircuAer1.200€GrossIncomepermonths

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10 Total:>20mnpeopleinGER

TaxiDriver1.400€GrossIncomepermonths

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CPS has Built Germany’s Largest Independent Payment Infrastructure

No. of Bank Branches in Comparison to CPS’ Network (as of today)

Products

Sparkasse 14,874

Volksbank/Raiffeisenbank 12,770

Cash Payment Solutions 9,831

Commerzbank 1,200

Postbank 1,092

HypoVereinsbank 796

Deutsche Bank 753

Deposits, Withdrawals & Money Transfers n  CPS will conveniently combine most basic banking needs like deposits,

withdrawals & money transfers with grocery shopping

Total: ~10,000 POS

Online Payment Service n  With CPS’ services, more than 7,500 e-commerce clients can offer their

customers a complementary, free-of-charge cash payment method

Offline Invoicing n  Low-income consumers can pay any type of bill like their utilities at ~10,000 stores instead of visiting one of the few utility branches or a banking branch

**+3,000 in the last 4 months

1.822 Filialen

720 Filialen 314 Filialen

802 Filialen

188 Filialen

2.207 Filialen

205 Filialen

3.573 Filialen

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Payment Process Barcode

Customer Receives Barcode Customer receives a bill or shops online and either receives a payment slip or text message with a barcode

Convenient Payment The customer conveniently pays at local retail partners with ~10,000 P O S n a t i o n w i d e https://www.barzahlen.de/assets/video/the-way-it-works.mp4

R e a l T i m e P a y m e n t Confirmation The cash register system confirms the payment real-time and the respective client gets notif ied immediately that the payment is settled

CPS Allows Consumers to Complete Most Basic Banking Services at ~10,000 POS More Conveniently and Free of Charge

Printout Mobile

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Cash Withdrawal

Bank Deposit

CPS Serves 20mn+ Consumers and Replaces Traditional Banking Infrastructure

Pipeline

# of POS / cash points ~6,000

# trained cashier 100,000

E-Commerce

Gaming

Travel

Segmente

2013

/ 20

14

2015

/ 20

16

2016

+

Kunden POS

„Bringing Cash Online“

“Replacing traditional banking

infrastructure”

“Bringing Invoices to the Next Level”

# of POS / cash points 15,000+

# trained cashier 250,000+

# of POS / cash points 9,000+

# trained cashier 150,000+

Utilities

Payment Collection

Insurance

Local Authorities

Money Transfer

Telecommunications

Housing Associations 2

1

3

DetailliertaufFolgeseite

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CPS‘ Payment Infrastructure is Used by Direct Banks to Allow Consumers to Withdraw Money from the Bank Account or Deposit Money

Key Advantages for Banks

n  Significantly less costs for CPS cash-outs than ATM networks charge direct banks for every withdrawal

n  Dense POS network leads to an increased customer satisfaction

n  No customers sent to competitor, independent infrastructure n  Innovative image and differentiation from competitors

Advantages for Banks

Key Advantages for Direct Banking Customers

n  First solution to cash-in at all

n  Vastly increased availability of points for cash-outs (~10,000 POS, more than every privately held bank in Germany)

n  Basic banking needs integrated in everyday life, no extra way to ATM or banking branches

n  Better opening hours, accessible 20/6 per week

Advantages for Direct Banking Customers

ChooseCash-In/Cash-

Out

Customerseesonmapcloseststores

nearby

ChooseAmount

Customerchoosesamountandconfirms

transac:onwithpersonalPINcode

Barcodeisgeneratedand

scanned

Barcodeisscannedortypedinbycashierandtransac:onisse?ledinreal-:me

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Feedback from Customers

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Feedback von Kunden zu der neuen Lösung Number26 und Barzahlen.de bei Facebook, Twitter & Co.

Kundenfeedback

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Feedback von Kunden zu der neuen Lösung Number26 und Barzahlen.de bei Facebook, Twitter & Co.

Kundenfeedback

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Feedback von Kunden zu der neuen Lösung Number26 und Barzahlen.de bei Facebook, Twitter & Co.

Kundenfeedback

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Head of Telecommunication and Media

Jörg Kubitzki Tel.: +49 30 346 46 16-37 Mobil: +49 177 200 20 62 E-Mail: joerg.kubitzki@barzahlen.de

Your Personal Contacts at CPS Contact Information

Founder and Managing Director

Sebastian Seifert Tel.: +49 30 346 46 16-17 Mobil: +49 172 563 76 42 E-Mail: sebastian.seifert@barzahlen.de

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n  Lower costs to process cash payments to merchants

n  More customer-friendly cash payments due to more flexible opening hours and a better POS density

n  Payment behavior within utilities sector:

CPS Provides a Powerful Tool for Merchants to Lower Payment Default Rates Along the Payment Process

Cut-off Bill 1. Payment Reminder

2. Payment Reminder

n  Case studies show usage rates of ~ 8%

n  Monetizing accessible cash income

n  Faster payments due to high convenience for cash consumers

3. Payment Reminder

12 days prior to cut-off

4. Payment Reminder

3 days prior to cut-off

External Payment Collection

n  Case studies show usage rates of more than 70%

n  Monetizing accessible cash income

n  Consumers can borrow money from friends / relatives to prevent cut-off

n  Payment by Barcode can be easily paid by a third party

n  Real-time payment confirmation allows short-term cash-in, even on Sundays

n  Performed by an external service provider

n  Barzahlen corresponds with:

-  Tesch Inkasso

-  Universum Group

* Payment process in case of an utility (similar in every industry with mass consumer business including insurances and local authorities)

Valu

e-A

dd b

y C

PS

Paym

. Pro

cess

*

80%

15%

5% Cash

Bank transfer

Direct debit

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CPS’ Strong Partner Network Allows for a Rollout of Services across Europe

Source: http://www.dm-drogeriemarkt.at/at_homepage/unternehmen/zahlen_und_fakten/unternehmenszahlen/ I http://www.rewe-group.com/vertriebslinien/?pageSection=discount-international I http://www.telekom.com/weltweit I http://www.metrogroup.de/#standorte-weltweit

Country No. of POS POS Partners POS / 1mn

Inhabitants

807

537

510

580 763

270

387

181

111

93

175

70

67

+ 973 POS in 16 other European countries

19

27

25

67

55 72

55

Number of Total POS of Key Partners by Country:

348

Austria 3095 360.7

Czech Rep. 807 76.7

Romania 580 28.8

Slovakia 387 71.4

Italy 763 12.6

Hungary 510 51.5

Greece 537 49.6

Poland 270 7.0

Croatia 348 81.2

Netherlands 181 10.8

3095

+ 3,600 international POS in the last 3 months