Business Case 2017

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0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200

Asia

Europe

Latin America/The CarribienAfrica

North America

Middle East

Occeania/Australia Source: InternetWorld Stats- www.internetworldstats.com/stats.html

BasisL 3, 885, 567, 619 Internet users estimated in June 30, 2017Copyright©2017, Miniwatts Marketing Group

Millions of Users - June 2017

NUMBERS DON’T LIE!The Internet Today Currently North America has the largest Internet penetration rate per population (88.1%) versus Europe (80.2%). However, Europe has over 800 million people versus 565 million people in North America, thus the growth potential for new users in Europe is significant.

Growth AreasEurope has almost one quarter of the online market with over 659 million Internet Penetration Per Population, however Asia has the largest segment with more than 1938 million internet users. Asia only has 46.7% Internet penetration rate, but with the largest number of users. This number will continue to grow spurred on by the infrastructure expansion in the telecommunications sector and the increased number of competitive landscapes that lowers the cost of access to the Internet for all Asian users.

Both Asia and Europe each individually have a larger share than North America and a combine market of 1.3 billion Internet users, which represents 66.2% of the online market place.

The European, Latin American and Asian markets represent a major opportunity and web-based merchants, located in the USA or anywhere in the world, must tap into these new and burgeoning segments. Given that the majority of these internet users do not have or use credit cards, it is imperative that merchants offer alternative payment solutions to complement their time and efforts.

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1938

659

404

388

320

147

28

INTERNET WORLD PENETRATION RATESby Geographic Regions - June 30, 2017

0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

North America

Europe

Australia/Oceania

Latin America/Caribbiean

Middle East

World, Avg.

Asia

Africa

88.1%

80.2%

69.6%

62.4%

58.7%

51.7%

46.7%

31.2%

Penetration RateSource: InternetWorld Stats - www.internetworldstats.com/stats.htmlPenetration Rates are based on a world population of 7, 519, 028, 970and 3, 885, 567, 619 estimated Internet users in June 30, 2017.Copyright©2017, Miniwatts Marketing Group

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WHY USE ALTERNATIVES?It is important for merchants tounderstand that the credit cards are not theprimary payment method in the world.

“Of the 64% of online Europeans that do own a credit card more than a half will not use their card to buy online!.” (Forrester Research)

The Great DivideCredit cards are the most popular method of payment in the United States. However, this is not the case in the rest of the world and alternative payment solutions have established themselves in a variety of ways to further monetize a merchants’ website. From local postal derived payment systems to sophisticated bank programs, most countries have their own domestic online payment and clearing systems that consumers are using daily to make online payments.

Cultural difference also fosters different payment habits. In Germany, for example, with over 71 million intenet users, only 18.6% of the consumers use credit cards to make purchases online versus 61% that use a direct debit bank driven payment method.

Differing perceptions on credit cards can also be seen in online shopping habits. While credit cards today are the main tool used in the United States for online shopping, the British and French prefer debit cards, while Germans rely primarily on online bank transfers (according to Forrester Research).

While perceptions about money and credit may cause cultures to spend differently, economic realities also play a key role. Some countries just haven’t had the access to credit nor a sizable middle class to fuel its use and such non-credit card payment schemes have flourished.

MotiveMillions of online shoppers abandon their shopping cart everyday. Trust and unfamiliarity play and important role, but are not the only reasons; what if you can’t read the payment page and you don’t know how much you’re paying because the amount is not displayed in your local currency? Furthermore, what if your preferred and trusted payment method is not offered? Not everybody has a credit card, so payment processors in numerous countries have recognized the need to offer domestic payment solutions to their consumers and have developed alternative solutions to satisfy the demand.

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In other cases, security and local requirements combined with the advancement of technology are the driver to implement alternative payment methods. For example, alldebit cards issued in China, Japan, Korea and many other Asian Pacific countries do not work on the traditional credit card networks. To enhance security the local banksrequire a 4 or 6-digit PIN before authorization can be provided. In other words, they can’t use their debit cards to make online purchases at websites that do not have the solution. As with several of the alternative payment solutions we offer, the PIN requirement is a huge benefit to the merchant, as it eliminates the chargeback risk andguarantees the payment, which is extremely comforting to merchants that ship high ticket items or for those who wish to attract clients from all over the world without running a risk.

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A study byCyberSource Corp.found that websites

providing four or morepayment methods

other than credit cardshad a sales conversionrate 12 percent higherthan those offering just

one online paymentoption in addition to

credit cards.In other words, the

more online paymentoptions you offer, themore online payment

processing you'll do onyour site and the more

money you'll make!

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Our MarketOur customers are online merchantsfrom all geographic locations in allcategories and sizes. The merchantunderwriting process for alternativesolutions is different from typical creditcard merchant accounts, because therisks associated with many alternativesolutions is minimized due to the lackof chargebacks and payment reversaloptions for consumers.Our focus has also been onconsumers and although they are notour direct customers, they are theactual users of our systems and assuch we consider them part of ourtarget market. Consumers from allover the world are familiar with ourproducts and services as they areprovided domestically by their trustedservice providers.

How We MarketA three tier approach has beenemployed to cover all possiblemarketing channels; we marketdirectly to merchants; we useindependent sales organizations; andwe incorporate our solutions into theoffering of other payment providers.

CompetitivenessOur services are straight forward andour fees are competitive and aresimilar to payment card transactions,and we don’t believe in charging ourclients upfront fees.

ServiceWe are a dedicated team of peoplethat understand the business and wehave proven this to our customers formore than two decades. We strive to getour merchants up and running in 48hours or less and we provide customersupport 24/7 to our merchants andtheir clients.

More Options, Means More SalesThe success of your online businessdepends on sales. Offering alternativepayment methods improves consumerconfidence, but the primary reasonwhy you should look at alternativesolutions to credit cards is simple; youcan increase your sales and revenuesby simply adding these options to yourexisting platform.In the United States, alternativepayment solutions, such as ACH, arecomplementing the check-out pagesof merchants that offer traditionalcredit card payment methods.Alternative payments are not replacingcredit cards, they merely add moreoptions for consumers to select from.

Languages Improves SalesAs part of our service offering, all of our payment pages are automatically displayed in the language of the user.We use a GEO-IP feature that detects where the end user is located based on their IP, and every step of the payment process is then displayed in their native language and backed by local customer support phone numbers.

Comprehensive and SupportiveThe word solutions is used inconjunction with alternative payments, as they provide a complete set of features, options and services that often go far beyond facilitating a singlepayment. Fraud scrubbing tools and a variety of address, IP and accountverification services are included,foreign currencies are automaticallyposted at the appropriate exchangerates and pages are shown in locallanguages with local phone and email contact information. Alternative solutions also include extensive reporting and fraud management tools, while retaining simplified set-up and management.

“Austin Morgan, a 24-year-old American teaching in Japan, whoblogs about how financial practices differ around the world atforeignersfinances.com, says, "Living abroad has reminded me thatcredit cards aren't as popular everywhere as they seem to be inAmerica," he says. “I rarely see credit cards used here.”

Why would you decrease your sales potential by limiting the ways potential customers can pay for your products or services online?

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ALTERNATIVE PRODUCT ADVANTAGES

Our solutions help merchants overcome language and currency barriers and provide consumersglobally with payment methods they trust and are familiar with. We have an extensive worldwidebanking network that translates into the ability to offer our merchants access to local paymentsystems in over 180 countries around the world through one single payment gateway.

• More options means more sales • Comprehensive reporting• Broadens the merchant’s reach • Full set of user management tools• Conveniences customers • Compatible with all shopping carts• Reduces risk and fraud • Automatic re-billing options• Proven services, Membership and affiliate management• Easy to implement and use • Level 1 PCI Compliant• One processing connection • Custom development options

We make it simple for our merchants and their customers. Our Geo-IP technology automaticallydetects the location of the customer and provides the payment page in the appropriate language and displays the amount in their local currency together with local and international payment options.

• Options for customers without credit cards or for those who prefer not to use credit cards.• Payments options for customers to pay directly from their bank account.• Automatic currency exchange - display local currency, receive funds preffered currency.• Options to reduce risks and completely eliminate chargebacks.• Generate sales from credit card blocked countries with guaranteed funds.• No risk and guaranteed payment options for higher ticket items.

Not only do we provide support to our merchants from the initial inquiry through the going-live process, we also take care of their customers by providing local support. For added trust and convenience each payment page displays a local phone number and email address.

“Of the 64% of online Europeans that do own a credit card more than a half will not use their card to buy online!.” (Forrester Research)

The Great DivideCredit cards are the most popular method of payment in the United States. However, this is not the case in the rest of the world and alternative payment solutions have established themselves in a variety of ways to further monetize a merchants’ website. From local postal derived payment systems to sophisticated bank programs, most countries have their own domestic online payment and clearing systems that consumers are using daily to make online payments.

Cultural difference also fosters different payment habits. In Germany, for example, with over 71 million intenet users, only 18.6% of the consumers use credit cards to make purchases online versus 61% that use a direct debit bank driven payment method.

Differing perceptions on credit cards can also be seen in online shopping habits. While credit cards today are the main tool used in the United States for online shopping, the British and French prefer debit cards, while Germans rely primarily on online bank transfers (according to Forrester Research).

While perceptions about money and credit may cause cultures to spend differently, economic realities also play a key role. Some countries just haven’t had the access to credit nor a sizable middle class to fuel its use and such non-credit card payment schemes have flourished.

MotiveMillions of online shoppers abandon their shopping cart everyday. Trust and unfamiliarity play and important role, but are not the only reasons; what if you can’t read the payment page and you don’t know how much you’re paying because the amount is not displayed in your local currency? Furthermore, what if your preferred and trusted payment method is not offered? Not everybody has a credit card, so payment processors in numerous countries have recognized the need to offer domestic payment solutions to their consumers and have developed alternative solutions to satisfy the demand.

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HOW DO WE COMPARE?

Our premise has always been to keep things simple, but extremely effective!

With us...• You get the authentic service. We don’t resell third party services as ours.

• You don’t need to establish a merchant account. Our alternative solutions are ready to go.• You don’t need to buy software or rework your strategy. It all fits with what you have today.

• You get an easy to integrate payment solution. We’ll help you with each step.• You can get up and running in 48 hours or less, provided that you give us all your information.

• You get all the features you will ever need. All included.• You can get custom development. We’ll think out of the box with you.

• You don’t have to pay any set-up fees. We only make money when you make money.• You don’t need thousands of transactions to be approved. We respects all merchants, no matter what size.

• You get an Award-Winning service that will generate more sales. That’s why we got the award.• You get proven technology that works and is installed on thousands of websites.

• You don’t have to worry about currency exchange. • You don’t have to translate payment pages, manage currencies or provide local customer support. We do it all.

• You get the latest fraud scrubbing technologies and access to our extensive negative database. Reduces risk.• Your customers will be happy to find their trusted local payment method. You will be happy too.

• You won’t be left hanging. If needed, we have an in-house collection service with a 50% success rate.

A study byCyberSource Corp.found that websites

providing four or morepayment methods

other than credit cardshad a sales conversionrate 12 percent higherthan those offering just

one online paymentoption in addition to

credit cards.In other words, the

more online paymentoptions you offer, themore online payment

processing you'll do onyour site and the more

money you'll make!

LEADER.HISTORY.VISION.

®

www.alternativepayments.comsales@alternativepayments.com