Remote payments

Market analysis and investment options for Corporate

April 2010

Analysis by: Davide Zari

Remote Payment - Market Sentiment Players

Market Company positioning

Gartner, Forrester, Innopay etc forecast a growing

market, also in Italy

Forecast period ranging from 1 year to 2-5 years

Growing news and market research since 2008,

with a clear hype recovery

Still a fractioned market, with small medium

specialized players (Paybox 12 $Mil), some

veritcally integrated

No public traded specialized international player,

early stage market

Really vertical solutionss or full mobile value chain

coverage

Italy mob transactions

Wo

rld

mo

b t

ran

sacti

on

s

Contactless nearer Company core competency vs

remote payment

Possible new development in CRM and Risk

management

0.01 Bil $

70 B

il $

Mobile payments news trend

Not an Italian market right now

Promising but uncertain growth rate

Payments

FVC Cards

Contactless

Virtual

Remote

CRM

Risk management

Analysis by: Davide Zari

Remote Payment – Investment options

Option Pro Cons Value €Mil (*)

MAKE

BUY

PARTNER

EQUITY

PARTNER

Total control

Brand

Decreasing costs

Greater income

Bigger investment

Full market risk

> Time to market

Time to market

Sales channel

Lower investment

Lower income

Maintenance management

Brand

Integration costs

Time to market

Sales channel

Lower investment

Co branding

Lower income

Maintenance

management

Integration costs

Time to market

Sales channel

Brand

Greater benefit

from market

growth

Up fron investment

Full equity risk

Know how difficult

mapping

Integration costs

(*) Real option model over four analyzed options, italian market growth

scenarios 10, 25 and 50% ytoy on 3y timeframe

Product development

License reselling

Revenue sharing

Equity participation

0,1

0,33

0,43

0,24

BEST OPTION

Analysis by: Davide Zari