m:Cypher® Overview15th October 2014

Payment Authenticated PCI Compliant Fraud-free Non-Repudiated

Security P2PE Man-In-The-Middle Malware Data Protection

Transaction Unique ‘Fingerprint’ Encrypted 2-Factor Authentication Strong Authentication

User Experience Simple Secure Fast

= Frictionless, Fraud-Free Mobile Transacting®

Virtual Chip & PINUser View

Payments Industry View

Fraud Prevention

m:Cypher® Fraud Prevention Technology:

m:Cypher® combines Encryption, Transaction Fingerprinting and Multi-factor Authentication to protect against Fraud, Repudiation, Phishing, MITM and 3rd-party intrusion;

m:Cypher® bonds the User, mobile Device, mobile App, and the Service Provider (e.g. Merchant, Issuer, Bank etc.) into a unique, secure, and trusted 1-2-1 relationship;

Each m:Cypher® secured transaction is fully Authenticated before presentation for Authorisation;

m:Cypher® is a mobile-friendly, enhanced security extension of 3D Secure for the mobile channel (4D-Secure);

A Simple, Secure, Fast User Experience for mobile transacting;

Business Benefits

Seamless User Experience for mobile customers resulting in:

Increased Conversions and Reduced Abandonment;

Increased Transactions Values (AOV);

Increased Transaction Volumes (ATV);

Reduced Fraud, Chargebacks & Costs;

PCI & Data Protection Compliance for Merchants;

Card Holder Benefits• Simple ‘Checkout’ Feature;• Frictionless Experience;• Confidence to Safely Transact;• Card Never Stored on Device;• Personal Data Protection;• POS/ATM Authentication;• m-Commerce Anytime, Anyplace;

Merchant Benefits• Increase Transactions; • Reduce Fraud;• P2PE;• Reduce Chargebacks;• Data Protection Compliance• PCI Compliance

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Acquirer Benefits• Reduced Fraud (& Costs);• Reduce Chargebacks (& Costs);• Reduced PCI Costs;• Increased Transaction Volumes; • Increased Transaction Values;

Issuer Benefits• Increased Transactions;• Reduced Fraud (& Costs);• Reduce Chargebacks (& Costs); • Reduced ‘False’ Positives;• Mobile version of 3DS;

Card Not Present• In-App Payments;• On-Device Payments;• Bill Pay;• Funds Transfer;• Micro Finance

Card Present• Chip & PIN

• Micro Merchants;• Payments ‘on the go’;• In-Aisle Payments;• Q-Busters;

Card Near Present• Card Virtualisation;• NFC & 3D Barcodes;

• Payments;• Click & Collect;• Loyalty, etc.;

m:Cypher® Platform – Virtual Chip & PIN

m:Cypher® Platform

Platformm:Cypher

• Acquirers• Payment

Processors• Issuers

• Payment Processors

• Issuers

• Payment Processors

• Issuers• Card Schemes

• Merchants• Acquirers

SDKIn-App PurchasingIn-App Transacting

MPGOn-Device PurchasingOn-Device Transacting

MCTAOn-Device 2-FACP/CNP (Online, MOTO)

AUTHTransaction Authentication4 DS

• SDK – Software Toolkit;• MPG - Mobile Payments Gateway;• MCTA – Multi-Channel Transaction Authentication;• AUTH – Transaction Fingerprint Authentication;

Merchant Data Centre Online Card ProcessingMobile Ecosystem

Card Present

Card Near Present/MCTA

PSP

Card Schemes

Mobile Network

At Payment, m:Cypher® Slide-2-Pay connects to m:Cypher® Server via HTTPM

m:Cypher® Client Encrypts & Signs Transaction and Sends with Virtual ‘Fingerprint’ to TA m:Cypher® Server

TA m:Cypher® Server Validates ‘Fingerprint’ & Signature and Authenticates Transaction

Only Authenticated Transaction sent to Merchant for Decryption and Processing

Merchant e-Com Server Sends Transaction for Authorisation as Normal

Settlement Made Directly to Merchant’s Bank Account

Secure, PCI Compliant, Fully Authenticated Transaction

The m:Cypher® Secure Transaction Journey

Merchant Bank Account

e-Commerce Server

Issuer

Payment Processors

Authorise/Decline?

Authentication Authorisation

Trust AuthorityData Centre

Authenticated

Y/N?

Card Not Present

m:Cypher® Secure Authentication Technology Platform:

All Data Encrypted on Mobile Devices and In-flight for Data Protection;

Mobile Fingerprinting of transactions for Fully Authenticated Transactions;

2-Factor Authentication combined with Strong Authentication for Fully Authenticated Users;

All Communications Encrypted for Point-2-Point Encryption;

Mobile Friendly, Secure extension of 3D Secure (4-DS) for Fraud Prevention;

Service Provider becomes Trust Authority for Secure, Known End-2-End Transactions;

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Summary

m:Cypher® enables frictionless, secure m-Commerce:

Native In-App and on-Device Express Secure Payment;

“Virtual Chip & PIN”;

Triple-play for m-Commerce: i. Card Present, Card Near Present, Card Not Present;

User Friendly, Secure Extension of 3D Secure to mobile commerce (4 DS);

User Friendly, Secure Front-End to Online Wallets;

Multi-layer Encryption, Mobile Transaction Fingerprinting & Multi-Factor Authentication;

Summary contd.

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Enabling Frictionless, Fraud-less Online Transacting

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