regalocard – all information proprietary and confidential 1 your instant mobile money transfer...

RegaloCard – All Information Proprietary and ConfidentialRegaloCard – All Information Proprietary and Confidential 1

Your Instant Mobile Money Transfer

Spring Mobile Payments ConferenceMarch 2012

San Jose, California

Gregory Keough Chairman and CEO

Peer to Peer Mobile Money Transfer


What We Will Discuss Today…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


•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 UnbankedThe Unbanked


What is this Consumers Primary Financial What is this Consumers Primary Financial Transaction?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.


Remittances the Financial Transaction of Remittances the Financial Transaction of the Unbankedthe 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


While they dont have bank accounts they While they dont have bank accounts they DO ALL have mobile phones…DO ALL have mobile phones…

Country Wireless Penteration US 102 %Mexico 85%El Salvador 180%Guatemala 88%Honduras 118%


What does this mean…What does this mean…

There is an enormous opportunity to provide unbanked clients services using mobile phones…

Especially Mobile Money Transfer.


• 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 TransferRegaloCard’s Mobile Money TransferRegaloCard is using mobile phones to build the Western

Union of the next century.


1RegaloCard 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.

2 3

How RegaloCard Works?How RegaloCard Works?


RegaloCard Products: RegaloCardRegaloCard 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 Products: RegaloPayRegaloCard 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 Products: RegaloCashRegaloCard 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.


• 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 BenefitsCustomer Benefits

RegaloCard offers numerous advantages over the traditional money transfer model:


Fox-Pitt Kelton Cochran Caronia WallerLeading 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…This Approach to the Unbanked Works…

“RegaloCard technology both distruptive and groundbreaking”

RegaloCard winner of the “Best New Prepaid Product” 2011 RegaloCard winner of the “Best New Prepaid Product” 2011 and “Top 300 Funded Startups in America 2011”and “Top 300 Funded Startups in America 2011”


Mobile Payments “Sweet Spot” is the Mobile Payments “Sweet Spot” is the Unbanked ConsumerUnbanked 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.


To Sum Up…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.


Thank You…Questions????

Gregory Keough Chairman and CEO

Your Instant Mobile Money Transfer

regalocard – all information proprietary and confidential 1 your instant mobile money transfer...

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