Person-to-Person Mobile Payments

money made simple

Cliff Canan

(CEO)

E-mail: cliff@nooch.comWebsite: www.nooch.comTwitter: @NoochMoney

Nooch

Defining the Status Quo

What’s changed? Generation-M

P2P Opportunity : Solving a real problem

Merchant Value-Add: 1-3 years out

Keys for success in P2P

Topics

Nooch Incorporated – Proprietary and Confidential.

No P2P Solution

ATMsInconvenient,

High fees

PaybackBets, dinner

tabs, & friend-based debt

Cash is Scarce

People carry less cash

The Problem

Nobody likes a MOOCH:

Status Quo

<10% Americans use any of theemerging platforms… yet.

…outdated, inefficient, and NOT

GOOD ENOUGH

Today’s Status Quo:

What’s Changed?

Generation-M• Simple• Social• Secure

• Close to free

More smartphones sold than PCs in 2011

Social Media

Curse of the app store

Person-to-Person mobile payments

for:• college students• small groups• micro-merchants

• Native iPhone app – 3rd generation, simple UI

• HTML5 mobile web site for any smartphone

• All functions from app

• Security: intelligent fraud ID & risk management

• PCI compliant on SSAE 16 certified private servers

• All accounting databases

Technology

The Solution: Nooch

FRONT END

BACK END

How Nooch Works: P2P Transfers

Home Screen

Select Recipient

(Facebook, phone contacts, or

email)

Enter Amount

Confirm PIN

Nooch: After Transfer

Recipient Notified Instantly

Sender’s Reciept• All details

• Easy, big Dispute button

Sender’s Activity

Sort by type, time, location, amount,

etc.

Nooch Incorporated – Proprietary and Confidential.

Generation-M

Among College Students:

• 84% carry less than $50

• 89% use ATM at least monthly

• 73% pay friends/peers regularly

$9.7 billion per year donated to charities & non-profits

$7.1 billion per year spent on ATM fees

$2 billion per year spent on fraternity & club dues

$1 billion per year spent on fantasy sports

USE CASES

Generation-M

Mobile Services Among the Top 100 Banks

Banks are rapidly adopting mobile capabilities, but P2P is not yet a prominent offering outside of the largest

institutions.

P2P Market Opportunity

Electronic P2P is an $80 to $120 Billion market

opportunity…

P2P Market Opportunity

Sources: CashEdge Presentation at NACHA’s Payments 2010 Conference, April 2010; CashEdge Presentation to the FRB, May 2011; USAA interview with Mobile Payments Today, April 2012; Fiserv Presentation at 2012 Card Forum & Expo, May 2012; Wells Fargo Presentation at 2012 Mobile Banking & Commerce Summit

Student Spending All U.S. Adults - Volume by Use Case (in billions)

Nooch offers Banks:early market leadership in the

erupting mobile payments space, and a competitive

technology edge for tomorrow.

Bank Benefits Market ready mobile product

Other banks’ customers without acquisition overhead

Entry into college market: Gen-M

New fee sources

Nooch’s Value Add

Nooch offers “Generation-M”:

a quicker & more convenient way to pay friends anytime,

anywhere, right from a smartphone.

Consumer Benefits Payments anytime, anywhere

Cheaper than ATMs, PayPal

Quicker than checks or wire transfer

Simplest interface – just a name

Nooch Incorporated – Proprietary and Confidential.

Business Model: Start with P2P

T I M E

User Acquisition

• College Ambassadors

• Viral marketing• Inbound/SEO• Facebook

Person-to-Person (P2P)

• Flat Fee, paid by sender

• No other fees

Person-to-Group (P2G)

• Frats, non-profits

• Events

• Small merchants (pizza shop, bars)

Merchants

•2% fee (undercut credit cards)

• Customer data

•Acquisition & Loyalty

Future Revenue: Ads, Coupons, DATA

Large user base

Location-based data

Micro-targeted

ads, coupons

High profit

potential

Partners

UD on CampusCollege

Ambassador Program

At MediaBranding,

Graphic Design

ACM AdvisorsFinancial Strategy

Marketing

Evolve IPServer Hosting & Network Security

The Seven SoftServer Hosting & Network Security

Technical

TARGUS InfoUser

Verification & Validation

Awards & Recognition

Duke Start-up ChallengeWinner: Judges’ Choice ($5,000)

Vator SplashTop 10 Finalist

Recognized by Council for Entrepreneurial

Development

Baiada Institute Incubator Comp.

Winner: Judges’ Choice ($40,000+)

Invited toPlug and Play Startup Camp Incubator

Silicon ValleyKillerStartups.com article

Invited to presentPlug and Play University Expo

Silicon Valley

Social GraphConnect with FB,

Twitter, LinkedIn, Four Square, Pinterest, and

more

Merchant Benefits

Free advertising & loyalty

21st century targeting

Customer Incentives

Discounts for public posts, check-insGame Mechanics

Future Opportunities - Merchants

• Intelligent Analytics & Metrics• Account history with merchant• Risk management history

• Transaction session information

• Tweet with payment for discount

• Customer engagement• Referral traffic

Merchant Features: Geo-Location

Location-Based Search:• Users presented list of restaurants

closest to them

• Automatically suggest a restaurant to pay when a user opens Nooch

inside that restaurant

Benefits: Speed/convenience for

customers

New first-time customers

Future Opportunities

Micro-Targeted Ads• Relevant ads based on spending in

real-time

• Location-based options: Geo-Fencing

Micro-Targeted Coupons, Offers

Built-In Menu:• Restaurants can add their own

menu with prices

• Mimic online shopping carts

• Updated via web-based portal to make changes instant &

easy

Restaurant Features: E-Menu

Benefits: Efficiency. Servers can focus on

serving

Experience. More control to customer over their experience

Cost. Save on printing, updating menus

Paperless Accounting:

• User-selected items

• Clear & easy to read

• User sends order to bar

Benefits: Efficiency. Servers can focus on serving

Consumer Experience. More control to customer

Cost. Save on printing, updating menus

Merchant Features: Digital Receipt

Other Options:• QR Code

• Bar Code

Nooch Incorporated – Proprietary and Confidential.

Trust Established players Fragility

Infrastructure (tech) Cash in/out Security Reliability

Network Chicken and egg effect

Barriers to Entry into Mobile Payments

NFC?

Problems with NFC

Adds “new” hardware Money Laundering Suspcious activity

Security concerns (real & perceived)

Active/Passive

Practicality Proximity Not faster Not even close to ubiquitous – value to merchants??

Not a “Mobile Wallet”! What about… license, loyalty cards, job ID, medical insurance card, Business cardsNFC. Not For Consumers.

Nooch Incorporated – Proprietary and Confidential.

P2P TransferRemittances

Virtual Goods

Keys for New Models: SOLVE A REAL PROBLEM. Unserved target

markets

SIMPLICITY. Simple interface, UX – NO NEW HARDWARE

SCALABILITY. Bottom-up, not top-down

TRUST. Make security priority #1

PARTNERSHIPS. Bank/telco/CC, tech, & marketing

Merchants/Retail

Keys to Success

Person-to-Person Mobile Payments

money made simple

Cliff Canan

(CEO)

E-mail: cliff@nooch.comWebsite: www.nooch.comTwitter: @NoochMoney