iPay88 – ASEAN Leading Payment Company

How iPay88 develop its World Class Payment Gateway Technology – Lesson Learn/Case Study

Consumer Driven

Technology

Laws & Rules Compliance(Domestic & International)

International Standards( PCI DSS, EMV, Trustwave & etc )

Acquiring Banks( Rules,Terms & Cond)

Experience

Fraud Prevention

Payment Services( World Class)

Observing CHANGEIs the key to integrate a

SOLID and TRUSTWORTHY

Relationship Between Merchant,

Service Provider and Consumers

Process Starts by Observing CHANGE

“We at iPay88 love Changes”

KNOCKED

“What Have Evolved/Changed”1) Technologies and infrastructures – IT, Gadgets,

Mobile, Logistics

2) Buying behavior of the new generations

3) Lifestyles and habits – at age1 kids are playing with ipad

4) High cost and standard of living

5) Everything Fast Pace and must be “Now”

6) Everything Google or search the internet

People Search Everything In The Internet

1 result found

We are still searching!

How To Manage My Wife

What Have Changed in Our Target GenerationsAge Traits

Baby Boomer 1946 to 1964 50 to 68

Brick and Mortar

Gen Y 1981 to 1994 20 to 33 80% IT & MobileSavvy

Gen Z 1995 to 2007 7 to 19 100% IT & MobileSavvy

Gen X 1965 to 1985 29 to 49 50 : 50 IT Savvy

Gen alpha Born after 2010 Beyond IT & Mobile

Mind ConflictGEN Y and Z

“ They buy online and mobile” and

They don’t understand

whyGen X and Baby Boomer

“Don’t buy online or mobile”

THE KEY POINTSGEN Y and Z

They Buy Online They Pay OnlineThey Book OnlineThey Do Everything Online

Online – A MUST!Still Got Problem To Believe And

Accept

The Fact?

To Go Online!

Then You Got Big Problem?

E-Commerce / M-Commerce Eco-system

Market Place

Fulfillment

Payments

Industry Level

. Very Stable & Matured

. Technology very advance

. Solution Providers abundant

. Reaching Maturity

. High Transactions security

. Regulated by Banks and Central Bank. Cyber Laws. PDPA Act. Advance payment Technologies

. Big Boys e.g UPS are very serious. Improving and . Still have some challenges

Industry Readiness

What are the changes?

What are the changes?

What are the changes?

Changes in Tech & Payments & Opportunities

1) Technologies Convergence - EMV vs E-Commerce vs M commerce – opportunity???

2) Front End Gadgets e.g smart phone, terminals like NFC, Mpos etc. Opportunity ???? Touch ‘n’ Go, Restaurants, POS ????

3) Broadband and mobile internet. Coverage vs Speed?????

4) Micro Payments – Gaming & small ticket size

5) Cross Border become Borderless??? Opportunity ??? AEC???

6) Crypto-Currencies????

7) Others???????

Generation Gap – Dilemma? Gen Y, Z and Alpha Gen X

Payment features Payment features

Ease of use Security

Technological Innovation Regulatory & Compliance

Mobile based PC based/Terminals

Higher Fees is OK Lower Fees is OK

Trust Everything Online Don’t Trust Everything Online

Intensity Intensity

Gen Y, Z and Alpha – Behaviour Snap shot

Behaviour Impact to Payment

a)Impatient - Simple Payment Processb)Try New things - New payment method & Technologyc)Curious - Simple payment processes and instructionsd) Rules are mend to be broken - Divide rules into 2 categories; i) Must Have ii) Can be changed

Payment Features Impact on Cost

Scenario 1

Fast Security Reliability VsCost

Scenario 2

Fast Security Reliability VsCost

Scenario 3

Fast Security Reliability VsCost Goods Service Tax (GST)

In The Past

Security in Payment is Always

The Main Concern

How Matured/Safe is Payment? In a Nut Shell

Market Place in a Nut ShellMarket Place in a Nut Shell

Regulatory / Laws & Compliance

Technolog

y

Business Rules

Market Place

Eco-System

RulesOf The Game

RulesOf The Game

RulesOf The Game

RulesOf The Game

Payment Gateway very SecuredPayment Gateway very Secured

Country Law

Country Law

Cou

ntry

Law

Country Law

Laws

Laws

Rul

esR

ules

What Have iPay88 done?

Ensuring payment transactions are being

Carried out

Fast ! Secured ! And Reliable !

iPay88 capturing opportunities based on changes

How

iPay88

observe, analyze the trends and changes and capture

the opportunities !By

Providing Payment ServicesFast! Secured! And Reliable!

iPay88 Capturing Opportunities – How/Ingredients

a) Experience – keep on learning e.g attending seminars

b) Technology Trend and Innovations

c) Regional Presence

d) Policies

e) International Standards and Compliances

f) Learn from others ( Best Practices in all areas of the payment eco-system)

g) Work closely with Card Schemes, Banks, Authorities, Police, Merchants, related industry like Telco.

h) Case Study – for every attempt of fraud and breach of procedure and policy

© copyright 2012, Ipay88 Sdn. Bhd. all rights reserved

FAMS Admin Module

•File Import•Definition of

• Rules• Parameters• Policies

•Defined by Pre and Post Trade

• Merchant limit• Backlist records• Whitelist Record

File File ImportImport

Monitoring Module

ApplicationProgram Interface

API provided:•Web Services•Socket

Defined Defined ParametersParameters

Return Value:Return Value:•AllowAllow•Allow & AlertAllow & Alert•BlockBlock•Block & ReviewBlock & Review

Post Trade Processor Function:Verify Post Trade defined Policy for Gateway, House & merchants

Alert Module

Update Update Alert Alert modulemodule

Post Post TradeTrade

External Systems

Pre Trade Processor Function:Verify Pre Trade defined policies for Gateway, House & merchants

L IM ITS

L IST

iPay88 ensuring payments Fast, Reliable & SecureFraud Management Overview

iPay88 Capturing Opportunities - How

Developed & Launch New Products & Services

i) Pay 4 Meii) Payment over ATM & CDMiii) Mposiv) Touch ‘n’ Gov) E-wallet plus loyalty programsvi) Singapore paymentsvii)Etc !

iPay88 Market Leader In Digital Payment Space

TRUST is the world’s most expensive of intangible things.

It takes years to earn and require consistencyto maintain it.

Our business began and grew on TRUSTAnd our success today reflect our view on the

Importance of handling TRUST withUtmost integrity

Take AWAY

Online and MOBILE PAYMENTS

WILL BECOME AN IMPERATIVE

INSTEAD OF JUST AN OPPORTUNITY

The Good News

z

Contact iPay88 at

iPay88 Headquarter

Suite 2A-18-2, 18th FloorBlock 2A, Plaza Sentral50470, Kuala Lumpur, Malaysia

Chan Kok Longklchan@ipay88.com.my+603 – 2261 4668

Have a question about online payment?

Q & A

www.ipay88.com

We combine smartphones and card readers to create Mobile POS Device

Easy and affordable way to accept card payments

mPOS: The Game Changer

Market Opportunity

Delivery services Self-employed prosumers

Groceries & supermarkets

Fast food restaurants

Direct sales / Insurance

Taxi services

• Allows immediate payment and removes the need to carry cash

• Drives larger basket size, impulse purchases and home delivery, peak hour handling

• Allows card payment upon delivery instead of cash, reduces cost of handling cash

• Allow insurance agents/direct sales agents to collect payment by card on the spot

• Enables taxi drivers to accept customers who don’t have enough cash

• Peak hour queue handling, increases convenience of delivery services

Opportunity & Threat – Insurance Industry

A CASE STUDYGreat Opportunities

1)New Market Segments – Generation Z and Alpha

“Ping An Insurance Co of China – first to adopt third party payment and launched a mobile payment and social networking platform named Yiwallet”.

Opportunity & Threat – Insurance Industry

Great Opportunities

“A recent report by The Boston Consulting Group and Google said the percentage of customers purchasing insurance policies online had gone up steadily over last year. Health insurance buyers had increased from 13 per cent in 2012 to 19 per cent; motor insurance also went up from 13 per cent in 2012 to 16 per cent.”

Opportunity & Threat – Insurance Industry

Great Opportunities

2) New Sales Channel With Extensive Reach Globally

“Taikang Life Insurance, PICC Property & Casualty Co., Ltd and China Pacific Property Insurance partnered Alibaba, to sell insurance policies on Taobao marketplace platform”.

“ Online insurance sales surged to 29.1 billion Yuan in 2012 and 3.2 billion yuan in 2011” - Insurance Association of China

Opportunity & Threat – Insurance Industry

Great Opportunities

3) New Innovative Products and Services that sells itself in the digital space.

“Due to changes in target generations, cost effectiveness, global reach, digital innovations both devices and applications and information in lightning speed “.

Opportunity & Threat – Insurance Industry

Biggest Threat

“Online retail Giants like Amazon, Taobao, eBay, Rakuten and the local market place will be the major sales channel to the insurance companies that eventually they end up too rely or dependent to them that the insurance companies will loose their bargaining power.”

“Once this happened, online retailers will dictate what policy to sell and what cannot.”

Immediate benefits by Going Online

Online and e-payment improve performance in three areas:

1.Data MiningThe ability to mine the digital data consumers leave behind on the

internet, social media, driving apps and even health-monitoring wearables could help insurance companies to better target customers, price and underwrite policies more accurately, and manage claims more effectively.

2 Digitization of existing insurance processes Allowing quotes to go straight through processing, for example, and rapid product configuration could yield strong improvement to operating profit margins.

3. Increased digital marketing Improve opportunity to connect with existing customers, allowing firms

to better upsell, cross sell and retain valuable customers.

Benefits To Insurance Companies – Going Online

“Based on our experience, a thoughtful and well plan online initiative program can deliver up to 65 percent in cost reduction, a 90 percent reduction in turnaround time on key insurance processes, and improve conversion rates by more than 20 percent.” – Havard Business Review Blog.

Success StoriesOver the years iPay88 have been working with insurance companies in ASEAN to assist them to go online especially in the e-payment space.

Malaysia – Allianz, Sime Axa Assurance, Tokio Marine, Prudential BSN, Great Eastern, Sun Life Malaysia and etcs

Philippines – Malayan Insurance

Indonesia – Asuransi Adira Dinamika, PT

What Next?Which ever phase your company is at

nowChoosing the Right

Payment Gateway Provider is the Key!

To your company e-commerce venture

SUCCESS

What make a good Payment Gateway?

3 Most Important Criteria

Criteria #1 Criteria #2 Criteria #3

EXPERIENCE EXPERIENCE EXPERIENCE

Payment Gateway ProviderPayment Gateway Provider Why?

Experience dealing with Fraud (domestically, regionally and globally) both credit cards and ebanking

Experience dealing with Banks and e-wallets such as Telcos’ e-money and etcs

Experience dealing with Regulatory Bodies/Central Bank

Experience dealing with each Market Uniqueness. Example shopping carts and etcs.

Experience dealing with each Country Laws and regulations

Many others!

Payment Gateway ProviderPayment Gateway Provider

ThereforeGood Payment Gateway Provider must have the following 7 areas of Expertise and EXPERIENCES

1.Comprehensive Payment Options2.State of the art Fraud Management System3.Reliability4.Compatibility5.Cost effectiveness6.Ease of use7.Localized (Domestically, regionally and Globally)

iPay88 ResumeiPay88 ResumeiPay88 have the following

“World Class” Payment Gateway experiences

Experience #1 More than 12 years in e-commerce & now including

m-commerce payment in South East AsiaExperience #2

Provide comprehensive payment options Malaysia, Thailand, Indonesia, Philippines, and

Singapore. We work with all top banks in each country > 6000 merchants ( Enterprise to Soho )

iPay88 ResumeiPay88 Resume Experience #3

> 1 Million transactions a month & still growing rapidly Awards winning payment solutions

Experience #4 State of the art Fraud System (FAMS) Conformed to all Key International Security Standards Used in Malaysia, Philippines, Indonesia etc Soon to be in Thailand and Singapore

Experience #5 Many satisfied customers Enable our customers increase sales revenue, profit and market

share (New Market Segment) Increase operational efficiency and reduce tremendous cost

“Groupon views iPay88 as a partner to provide convenience for shoppers, as consumers can now easily purchase products and services online. The options to make payments are via credit card or online banking. Users can pay safely and securely with iPay88’s solutions. With the support from iPay88, Groupon has grown to become one of the largest e-commerce companies in Malaysia.”

Joel Neoh, CEO of Groupon Malaysia

Satisfied and Happy Client

Moving ForwardNo More

“What” and “Why”

Rather

“When” and “How”

And

“Who”

iPay88 Sdn BhdASEAN LEADING

PAYMENT GATEWAY

Our VisionTo become a leading one-stop comprehensive

payment company in ASEAN

Our MissionTo enable borderless e-business

through state-of-the-art payment eco-system and staff enrichment

Payment Devices

notebook computer POS terminal smart tablet

phone

Overseas Remittanc

eTelegraphy Transfer IBFT

Payout

Direct Link

Virtual Termina

l

Email Paymen

tVirtual Link

Auto Debit

Multi Paymen

t

Online Payment Services CASH CASH MANAGEMENTMANAGEMENT

Payment Gateway Features Payment Switch

✓Intelligent routing ✓Payment network synchronize ✓Bank’s Merchant ID management

Fraud Filtering

✓Rule base fraud filter ✓Black list database ✓Frequency check

CRM & Marketing

✓Loyalty redemption ✓Customer support ✓SMS/Email integration ✓Affiliate network

User Interface

✓Multi-language ready ✓Multi-platform ✓Customize template ✓Mobile-optimization ready

Analytics &

Reporting

✓Report automation ✓Trend analysis ✓Customize reports

Finance & Accountin

g

✓Reconciliation✓Settlement ✓Fraud management and cancellation ✓Forex exchange

Security & Monitoring

✓PCI DSS compliance ✓Token authorization✓Online store audit ✓Server monitoring

Product & Services

Philippines

Malaysia

China

Singapore

Australia & New Zealand

Indonesia

Thailand

Vietnam Coming Soon

iPay88 Regional Partners

Over 6,000 e-merchants in ASEAN region crossing over 30 different industries have chosen iPay88 as their

trusted online payment provider