twin cash model presentation 3

TwinCash business model

The creator of the mobile cash

February 2013

Confidential - Twinlinx property (www.twinlinx.com) – February 2013 2 Confidential - Twinlinx property (www.twinlinx.com) – February 2013

Twinlinx represents ….

5M€ invested in

R&D, 2 patents

Worldwide

market

Creation in 2006

by Jacek Kowalski,

Founder of Inside

Secure

Business model

aiming cash

replacement by

mobile money

http://www.twinlinx.com


Confidential - Twinlinx property (www.twinlinx.com) – February 2013 3 3

Some situations when cash is useful

Dad, give me

$10 to go out

with friends

tonight

I will pay that

bill and you

will pay me in

cash your part

Can I pay that

drink with a

credit card?

I make you a

discount if you

pay with cash

Here is $50 bill

for that drink, I

have nothing

else

Sorry my

son, my

wallet is

empty

OK but I do

not have cash

on me. I will

pay you later

Sorry, we do

not accept

cards for that

amount.

I have no cash

now but next

time I will

have it

Sorry but I do

not have

change



Mobile cash concept

No fees for transactions

Anonymous

Stored on the mobile phone

Accepted everywhere

Mobile Cash is a new payment tool taking

advantage from the mobile phone functionalities


Confidential - Twinlinx property (www.twinlinx.com) – February 2013 5

Opening mobile cash market

Mobile cash challenges

No users

No tools

No infrastructure

proposition

Create an attractive business model

TwinCash

Equip users with mobile wallets

Twinee

+



Mobile cash technology: NFC

NFC-enabled phone

NFC-enabled phone

TwinCash payment terminal

User 1

User 2

Merchant

NFC is the most convenient way to pay (swiping and pushing OK) NFC is compatible with transport and banking payment systems NFC is secure: employs banking security standards NFC is foreseen to integrate the mobile phones



Multiple applications in the phone

TwinStore

Transport

tickets Business

cards Coupons

Photos

transfer

Tags

Reading

Cash

Banking

cards Tourism

info

Market

adoption

NFC applications

environment



Loading mobile cash from the bank account

from someone’s phone

TwinCash fees model

Using mobile cash back to the bank account to someone’s phone paying for goods

No fee

No fee

No fee

Small Fee paid

No fee

No fee

Small annual subscription


Confidential - Twinlinx property (www.twinlinx.com) – February 2013

9

Twinee adds NFC to any mobile phone

Twinee

Powered by an internal battery

Bluetooth and NFC communication

Integrates banking security chip

Twinee



Twinee NFC device

Active Module

integrating NFC

and Bluetooth

Li-Ion Battery

Secure

Contactless

Chip

LED

Active part :

powered by the battery

Passive part:

Contactless

operation

Vibration

Detector

Twinee

Fully independent from the phone Wakes up by the vibration detection 2 patents delivered 5 years development work



Mobile phones coverage

Android iPhone J2ME Windows

Twinee



TwinPOS payment terminal

Merchant’s

mobile phone

TwinPOS

Twinee

TwinPOS enables deployment of TwinCash infrastructure

NFC Phone



Twinee versus NFC phones

Million units

135

6000

2012

NFC compatible

Mobile phones

NFC

in phone

Twinee

Security control Operator Issuer

NFC compatible Yes Yes

TwinCash compatible Yes Yes

TwinStore compatible Yes Yes

Deployment costs High Low

Visual advertising No Yes



TwinCash system organization

TwinCash system

management

User 1

User 2

Shop

Shop’s bank User’s 2

bank

User’s 1

bank

Off-line

Cloud Cash

Account



TwinCash model for consumers

- 15€ one time fee

- 0.5€ per cash reload

3 models

Twinee

- 25€ one time fee

- 40 free cash reloads then

0.5€ per cash reload

- 30€ fee first year

- 15€ fee following years

- Unlimited cash reloads

or

or



TwinCash model for merchants

No fee

Yearly subscription = 50€ per terminal

TwinPOS


17 17 Confidential - Twinlinx property (www.twinlinx.com) – February 2013

TwinCash for Retailers

Current model TwinCash model

Card payment

Cash payment

No cost

Retailer Retailer

Costs for 10m€ retail sales Credit cards: 100k€ to 500k€ Cash handling: 30k€ to 40k€ High cost for small amounts

Costs for 10m€ TwinCash sales TwinCash: 0% Cash handling: 0% TwinPOS readers: 500€/year

(ten terminals)


18

Twinee for Banks

18

Visa/Mastercard compatible with banking certification

Full independence from other market players

Allows to issue private payment cards with own fee structure

Allows to expand presence in the Retailers market


Viral market expansion strategy => Universities

Pioneers

Me-too

Never University free kits

100 Twinees + TwinCash 50 TwinPOS terminals Incentives for virology marketing



TwinCash virology marketing model

Hey, get this exciting

TwinCash function on your

phone... Why not ?



Twinlinx model versus Square model

Merchant transaction fee : 2,75%

or 3300$ per year

Merchant transaction fee : 0%

65$ yearly subscription

Raised $200M in September 2012 at $3.25 billion valuation

2 years

400 employees



Team presentation

Jacek Kowalski, CEO Created and led Inside from 1996 to 2006 (IPO 2012) Raised 36M€ capital at Inside, 1.3m€ at Twinlinx 28 years chips experience (ST, Gemplus, Inside) 50 patents Smart card market visionary in 2004

Piotr Trochimiuk (Poland) 5

years contactless chips experience hardware and firmware development R&D team management

Igor Goldovsky (Russia) 30 years experience

in banking, security, certification, payment systems (Visa/Mastercard)

General Director at Mobile Solutions, NFC payment software solution provider • former Deputy General Director of UCS, largest Russia-based merchant acquirer and currently



CONTACT INFORMATION

Jacek Kowalski , CEO

Mobile France: +33 603 901 901

Mobile Poland: +48 797 403 269

Mobile Russia: +7 985 416 7982

Email: [email protected]

Espace Descartes Bat B

425, rue Rene Descartes

13587 Aix-en-Provence, France

Tel. +33 (0)4 42 50 08 04

www.twinlinx.com

