Digitalisation of the bank accountJOHAN NORD, CCO TRUSTLY

The Fintech scene

The Swedish Fintech sceneSTOCKHOLM - EUROPE’S SECOND LARGEST FINTECH CITY

UK Sweden Netherlands Germany Rest of Europe0

200

400

600

800

1000

1200

Total FinTech investment volume 2004-2014

USD millions

*An overview of the FinTech sector in the greater Stockholm Region by the Stockholm School of Economics (SSE) 3

The Swedish Fintech sceneTOP THREE 2014 INVESTMENTS IN STOCKHOLM FINTECH COMPANIES

2014 Activity*

The year 2014 was a landmark year for investments in Stockholm-based FinTech companies.

In total 15 FinTech deals attracted $266 million in investments. Moreover, FinTech investment in Stockholm represented 32 percent of total investments in Sweden.

$125 Mln

$55.5 Mln

$28.8 Mln

*An overview of the FinTech sector in the greater Stockholm Region by the Stockholm School of Economics (SSE) 4

Trustly

Trustly is a payment solution.BANK PAYMENTS AND TRANSFERS

The merchant makes Trustly available in their checkout next to other payment methods like Card, Klarna and PayPal.

The end-user can then pay directly from their bank account using Trustly

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Five main business areasTRUSTLY IS A B2B COMPANY

e-Commerce Selected customers:

Travel Selected customers:

Selected customers:Marketplaces

Gaming Selected customers:

Financial services Selected customers:

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Consumers are adopting mobile commerceCONSTITUTES 1/3 OF ALL TRANSACTIONS

1/1/13 1/1/14 1/1/15

94%78%

65%

4%

17%29%

2% 5% 6%

Desktop Mobile Tablet

The bank account

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The hub of peoples financial lifeALL OTHER PAYMENT METHODS DEPENDS ON THE BANK ACCOUNT TO WORK

Invoice

e-wallet

Debit card

Credit cardBitcoinThe bank account

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Strong authenticationTWO FACTORS

’Something you have’

’Something you know’

’Something you are’

93% of European citizens have a bank accountHUGE UNDERLYING CUSTOMER BASE

93%

7%Banked

Unbanked

http://ec.europa.eu/finance/finservices-retail/docs/inclusion/sec_2011_907_en.pdf 13

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Online payments in EuropeThe importance of catering to the European consumer’s preference to pay with their bank account

e-Commerce mix, Western Europe

*Datamonitor (market size, payment preference Germany) , Worldpay (payment preference other)**Includes invoice, micropayments, e-wallets, cash on delivery

NetherlandsFinlandPoland

GermanyAustria

SwedenBelgiumNorway

SpainDenmark

Italy

64%48%

45%32%31%

27%24%

13%8%

6%5%

Bank payments Card Other**

USD 236 billion market (2014)

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A good product leads to high user adoption.The importance of catering to the European consumer’s preference to pay with their bank account

iDeal transaction growth, Netherlands 2005-2014

Source: iDeal

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

50,000,000

100,000,000

150,000,000

200,000,000

United Kingdom

Germany

Nordics

France

Netherlands

Italy

Spain

Russia

Rest of Europe

31.3

23.3

10.4

8.5

8.1

5.8

3.9

0.9

8.2Source: Postnord – Ecommerce in Europe 2015l

Cross border e-commerce in EuropeWhere European e-commerce consumers buy products from when they buy from abroad within Europe (millions of people)

(millions of people)

Final remarks

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Why Trustly?

• There is a market: 93% of all Europeans have a bank account

• There is an underlying consumer preference in Europe

• Digital authentication methods – paying online using your bank account is increasingly user friendly

Trustly expanding into marketsYESTERDAY 8, TODAY 29

• Officially announcing expansion into 21 new markets

• Live in all 28 EU markets plus Norway

• Press release distributed this morning

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Thank you!