RFID based e-commerce Presentation

Cardlink Management System Corp.

The preferred Consumer Payment and

Reloading Company

Tap-2-PayThe fast and easy way to pay

• Mission Statement :

• We deliver the way consumers prefer to pay for their everyday necessities.We enable merchants to accept the way consumers prefer to pay.

• We delight consumers at merchant point-of-sale.We enable merchants to benefit from delighting consumers at their point-of-sale.

• We automate the way consumers reload their CSC.

We enable merchants to benefit from automating the reloading of CSC.


Store Value Card Potential• The Cardlink card will be launch in May 2007 to create a more

efficient manner for millions of Filipinos to pay for daily public transport , food purchase and retail shopping on the Mass Rapid Transit (MRT) , LRT , Jollibee , SM Malls and Dept. Stores , Watsons, Mercury Drug Stores etc.

• Built on the versatile Contactless Smart Card (CSC) technology, the card can also be used for all small-ticket payment at points of transaction, security door access.

• With already a million riders in MRT and LRT as of August 2006,and 2.4 Million average daily transactions for 800 Jollibee Food Stores, the Cardlink card has the highest wallet penetration potential among payment or non- payment related cards in Philippines.

• With this large customer base, Cardlink aims to work towards entrenching Cardlink as the preferred payment option in the Philippines as it continues to develop as a cashless e-payment society.


Cardlink business• Smart possibilities with Cardlink Smart Contactless Card • Store Value Card (e-Purse) , Bills Payment , remittance ,

buy cellphone load and reload , G-Pass, G-Cash, Smart Money and e-Pass.

• Built on the Contactless Smart Card (CSC) technology, the Cardlink card system provides merchants and retailers today with an efficient, highly reliable mode electronic payment for transactions less than Php 5,000.00

• Managed by Cardlink Management System Corp., merchants and retailers will be able to leverage potential base of at least 1 million Cardlink cardholders.


Benefits of the Cardlink Card system are:

• • Fastest transaction clearance with an average clearance time of 1 to 3 seconds per transaction.

• • Cashless e-Payment• • Highest wallet penetration of any payment

or non-payment related cards in Philippines.• • Flexibly as debit and credit payment (in due

course), loyalty points system or even corporate security door access.

• • Improved hygiene


Is it Safe and Secure Payment ?

• Cardlink Tap2pay is safer than cash , the system generates a unique hash encrypted key everytime the amount changes ,that is , everytime the card is debited or credited .

• Only Cardlink knows the algorithm on how to generate the hash encrypted key. We ensure that our communications technology is secure .

• Cardlink ensures that every transaction is valid.


Solutions• Your Partner in Contactless and Smart Card

Payment we can offer you the following services:• -End to end CSC solution implementation: works

with leading electronic payment terminal vendors and banks to build secure processing systems to enable payment and loyalty program processing, time access activities, identification, authentication and authorization, and data storage/capture, remittance and auto reloading via self service kiosk.

• -Marketing services: works with leading brands and enterprises to deploy loyalty card programs based on CSC technology , e - load prepaid load top up and internet games , e-Pass, digital signage and advertising.


Solutions• -Consultation: provides complete consultation

services to project owners of smart card implementations in the region, leveraging on its successes in deploying pioneering CSC , kiosk projects in Philippines. Cardlink is backed by a team of experienced IT and business professionals.

• -Acceptance devices: works with merchants to provide compact terminals to enable standalone or chain outlets to accept payments. Cardlink has the acceptance devices and ePOS that works either in standalone mode or integrated to the merchants' ePOS to accept payment. Our latest technology is able to interface to an ePOS, or other intelligent communication devices. They include the Contactless Reader and ePayment Terminal thru our All in one Kiosk , POS and other devices.


The Cardlink Tap-2-Pay! Programme is relevant to the following merchants and

retailers:• Industry Examples application:• Food Courts

Fast FoodRestaurants CanteensCafésFood delivery servicesVending machines

• Tap and Munch! • Terminals will be placed at the cashiers


More Example

• Utilities and Bills Payment Terminals, Self – Service Kiosk , Vending Machines.

• Tap and Pay !• Terminals will be placed at the

Kiosk


More Industry Example Application

• SupermarketsConvenient storesPush Cart StoresDrug and Retail StoresDepartment Stores/ Malls

• TAP and Shop!• Terminals will be placed at the

cashiers


And More

• CinemasTheme Parks Game Arcades

• TAP and Play! • Terminals will be placed at the

box offices or cashiers


And More

• City or Town Halls and Government Agencies

• TAP and Pay! • Terminals will be placed at the

customer service desk or cashiers


And some more…

• Public or private car park payment system Taxis , Buses , MRT , LRT Transport System

• TAP and Travel! • Terminals will be placed at car park

exit points or in taxis and Buses entry and exit doors

• MRT / LRT stations


And some more…

• e-commerce web sites or portals

• Netopia • TAP and Click! • Terminals will be available for

customers to purchase and install in their home PCs


And …

• Others• Charitable Organizations,

Religious Organizations, Professional Organizations , Educational Institutions.

• Collect donations and payments the Cashless way , at a mere tap of the Card.


More Cardlink Business• Card Advertising:• Advertising on Cardlink cards • All Jollibee Food outlets , public transport operators begin to

accept only Cardlink cards as the stored-value contactless smart card that allows travel on public buses, the MRT, LRT and the North East Line with greater speed and cashless convenience.

• Should you be interested to advertise on Cardlink cards, please note the following:

• • Minimum print quantity: 20,000 cards (10,000 units per design)

• • Rates are subject to 12% VAT• • Distribution through CardLink’s tickets sales offices located at

all MRT stations , Jollibee outlets and Cardlink Business Centers. • • Production lead time : 8 weeks (locally printed) For more

information on pricing and delivery, please contact Ms. Yzza Ilagan, VP Sales and Mr. Rico Sevillena at [email protected].


mailto:[email protected]

More Card Business

• Personalized Premium Cards• Collectible Cards with high design value. For

example :• 2 Fast 2 Furious, Harry Potter, Finding Nemo ,

Star Wars

• Lord of the Rings , Narnia , Tarzan , Apocalypto etc.

• Customized Corporate Cards• Gift Card , ID card , Payment Card


Project Timelines

• Jollibee integration to Cardlink Card – May 2007 first 100 stores

• Bench , Watsons, Mercury Drug Card integration to Cardlink Card – July 2007

• SM Cinema , Glorietta , Greenbelt to Cardlink Card – September 2007

• Parking areas in Ortigas CBD , Makati CBD to Cardlink Card – October 2007.


Action Plan• First phase is to deploy and install at no cost to

the merchants like Jollibee stores e-payment terminals / CSC readers around 100 units .

• Manual reloading of Cardlink Cards can also be done in this participating merchants. Selected outlets will have auto load all in one Kiosk at designated areas.

• At the launch of the CSC payment system , free Cardlink Cards will be given away , 100 per Jollibee outlets , total cards 10,000 units.

• Cardlink Cards without Php 50 prepaid load will be given away.


Action Plan Second phase

• Second Phase is to deploy more reloading Kiosk Second Phase is to deploy more reloading Kiosk at Jollibee , other new merchants like at Jollibee , other new merchants like Mercury Drug outlets , Watsons, Bench , 7-11 , Mercury Drug outlets , Watsons, Bench , 7-11 , Mini-Stop etc. Mini-Stop etc.

• Franchising the All in One Kiosk will take care of Franchising the All in One Kiosk will take care of this multiplier effect and cost of deploying more this multiplier effect and cost of deploying more all in one Kiosk, Contactless Card Readers . all in one Kiosk, Contactless Card Readers .

• More e-payment CSC terminals will be deployed More e-payment CSC terminals will be deployed and installed around big malls. Part of the and installed around big malls. Part of the franchise fee will be used to buy more payment franchise fee will be used to buy more payment terminals. terminals.

• Cardlink Cards will be sold as Personalized , Cardlink Cards will be sold as Personalized , Collectible Cards, Tourist Cards , Corporate Collectible Cards, Tourist Cards , Corporate Cards , Loyalty Cards , and of course as CSC Cards , Loyalty Cards , and of course as CSC payment Cardspayment Cards

• Target Cardlink Card in circulation around 150K Target Cardlink Card in circulation around 150K to 300K initially. to 300K initially.


Second version of e-Kiosk• Second Version of all in one Kiosk will target the

OFW remittance business.• The new version will include the dispensing and

acceptance of Philippines and local currencies of each Country.

• Both currencies can be accepted and dispense in bulk.

• Jollibee will make a big role on this since they have foreign based Outlets that cater to OFW abroad.

• Infoserve existing Remittance business in the USA can be upgraded to incorporate Cardlink and Jollibee remittance business.


Facts and Figures :• Contactless Card Selling Price , Php 150.00 with free Php 50.00

load• Without load Php 100.00 • Jollibee Customers 2,400,000 (800 stores) regular per day• Target Market of 300,000 of Potential customers (100 stores) per

day • Say we have 50 % of that as initial members of our Tap-2-Pay Card• That’s 150,000 Cardholders• 10,000 Cards is issued for free; 140,000 Cards for PreSale @ Php

150.00/pc or Php 100/pc• Cardlink Profit for each CSC Card = Php 20.00 per card • 140,000 cards x Php 20.00 = Php 2,800,000.00• Service and Transactional fee of Php 3.00 for every Php 100.00

reload• Say 10 % of 150,000 will reload each day = 15,000 in 100 Jollibee

stores• That’s Php 3.00 x 15,000 = Php 45,000.00 each day• Or Php 1,350,000. 00 per Month • Php 16,200,000.00 a year



The Revenue Streams• Tap-2-Pay card sales• Tap-2-Pay card advertising• Tap-2-Pay reload fees• Cellphone reload transactions• Prepaid card sales (Internet, games)• Cardlink Kiosk franchise• Cardlink Kiosk advertising


Tap-2-Pay card sales

Pre-load amount 50.00Card cost w/ printing 50.00Tap-2-Pay Revenue 20.00Distribution Cost 25.00Taxes 5.00

TOTAL 150.00


Tap-2-Pay reload fees

Cardlink 2.00Franchise 0.50Merchant 0.50

TOTAL 3.00


Cellphone reload transactions

Franchisee 9%Merchant 2%Cardlink 1%

TOTAL 12%


Merchants Revenue streams

Card Reload Fee Share P 1.00 Card Sales , distributor P25.00Card Ads Commission P 5.00Cellphone Reloads 11 % gross

Card Distributor Revenue

• Php 25.00 each Card • 140,000 Cards Distributed to

Jollibee outlets• Php 3,500,000.00 to Jollibee



Est. Merchants Revenue share Revenue streams Market / Quantity Amount

Card Reload Transactions

15,000 daily@ P 0.50

P 7,500 / day P 225,000 / mo

Card Sales , distributor

2000 pcs. daily@ P 25.00

P 50,000 / dayP 1,500,000 / mo

Card AdvertisingCommission

10,000 pcs / mo@ P 5.00

P 50,000 / mo

Cellphone Reloads ( Kiosk )

P 2,500,000 / mo@ 11% gross

P 275,000 / mo

Total P 1,775,000 / mo

Reload fees Sharing Scheme

• Split Php 3.00 to 3 Entities• Php 2.00 to Cardlink , Php 0.50 to

Franchisee, Php 0.50 to Merchant• 15,000 Cardmember reloads a day• Php 900,000.00 per Month to Cardlink • Php 450,000.00 split between Merchant • ( Jollibee ) and Franchisee per Month

guaranteed• Pro rate share of All in One Kiosk to

Franchisees and Merchant.


Cardlink Kiosk Franchising• Php 1.25 Million Total Franchise Cost• Php 1.0 M Kiosk Hardware• Php 200 K Franchise fee• Php 50 K initial load.com inventory• 5 year term , yearly evaluation• Kiosk location at Jollibee Stores .• Franchisee to pay for Internet cost ,

phone bills, connection cost related to operations.

• Service and Maintenance is free of charge.

• Hardware Upgrades not included.



Kiosk Franchise , Monthly recurring

Cardlink 1,000.00AsiaPOS 4,000.00

TOTAL 5,000.00


6 Months Pre-Operating Expenses

Cardlink Employees (15)And Officers (5) Salaries

2,690,000.00

Office Rental 300,000.00Telephone / DSL Admin. Supplies

36,000.0030,000.00

TOTAL 3,056,000.00

Approx. CAPEX to Implement this project.

• Initial Card Inventory to be given away for free . 10,000 pieces @ Php 50. = Php 0.5M

• CSC readers 200 units , @ Php 5K each. = Php 1M

• PC 100 units @ Php 25K each = Php 2.5 M• 140,000 Contactless Cards = Php 7.0M• Pre-Operating Expenses= P3.056M• Hotel Launch = Php 40K• Advertisement = Php 250K• Total Cost = Php 14.346M



ROI for P 14.346 M Investment@ 10% Reloads - P 900K Monthly or P 10.80 M Annual

ROI – 1.33 years

@ 15% Reloads - P 1.350M Monthly or P 16.20 M Annual

ROI - 10.63 months

@ 20% Reloads - P 1.80M Monthly or P 21.60 M Annual

ROI - 7.97 months

Plan to Cover the Cost

• Pre-sell the Card at face value say Php 100. with no load yet.

• 140K Card pieces @ Php 20 pesos profit each card = Php 2.80M

• Sell the 5 Kiosk , @ Php 1.0 M = Php 5.0M .

• Total internal funds = Php 7.80M


Plan to Cover the Cost

• Bank Loan or thru Investors share

• Raise Php 7.0 M• Total initial funds = Php 14.80M


Cardlink Mgmt. System Corp. Revenue (Projected initial year)

• Reload fee (Php2.0) earnings per year ,P 10.80M

• P 200K Franchise fee for each Kiosk at 10 Kiosk per year , P 2.0M

• P 4K monthly Maintenance and Service fee for each Kiosk for 10 units , P 0.480M

• Total yearly Income projected , P 12.48M • Shares of each Director will be proRate

at Chairman’s disclosure and decision of the board.


Projected Card Sales• Card Sales / Quantity Gross Profit


150,000 Cards P 3.0 M

200,000 Cards P 4.0 M

250,000 Cards P 5.0 M


Merchants and Bank as Partners

Bank as depository , and fund settlement managerMerchants as Business PartnerCardlink as lead partner

Conclusion

• The business plan is doable, introducing a cashless contactless store value card is high time. Success in this business will be attained if we do it now not tomorrow . Paypass is surely but slowly introducing CSC . Our advantage “ transaction even when Offline “. Cooperation with Merchants and Banks is our utmost objective asap. Migrating to a debit card system, remittances and centralized clearinghouse is part of our next phase.


Cardlink Management Systems Corp. Org. Chart

• Telephone Nos. – 871-3508• Cellphone Nos. – 0921-8019392• [email protected]• 0521 A. Ozaeta St., BFRV, Las Pinas City

Mr. Voltaire Cruz JrPresident / CEO

Mr. Erick KalugdanVP - Operations

Ms. Margarita L. CruzVP – Finance

Mr. Enrico SevillenaVP – Channels and

Franchising

Mr. Joselito CruzExec. Vice President

Earnings from Increasing reloaders for Cardlink /AsiaPOS

10% or 15,000 reloadsPer day

P 900,000 MonthlyP 10,800,000 Annually

15% or 22,500 reloadsPer day

P 1,350,000 MonthlyP 16,200,000 Annually

20% or 30,000 reloads Per day

P 1,800,000 MonthlyP 21,600,000 Annually

Documents

RFID based e-commerce Presentation