DIGITALISATION OF PAYMENTS DRIVING THE FUTURE OF PREPAID WIRECARD Brian Lawlor, December 2017
CONTENTS Who we are Digitalisation Evolution of payments Emerging markets for prepaid Payment landscape Conclusion
1 WHO WE ARE BACKGROUND
FACTS AND FIGURES Foundation 1999 TecDAX (ISIN: DE0007472060) Employees: >3,760 Customers: >27,000 large/medium sized corporations, >150,00 small sized merchants Revenues 2016: EUR 1,028.4 mn EBITDA 2016: EUR 307.4 mn Transaction volume 2016: EUR 61.7 bn Banking (DE) and e-money (UK) license
COMPANY DEVELOPMENT Foundation Consolidation of Wirecard Bank AG TecDax listing M&A Jakarta, Indonesia M&A Singapore / Vietnam FCA (emoney license) Wirecard Card Solutions M&A Istanbul, Turkey / Cape Town, South Africa / Auckland, New Zealand M&A / Asset (VPS) Singapore, Visa Processing Service India M&A Sao Paulo, Brasil M&A Bucharest, Romania M&A Philadelphia, North America 1999 2005 2006 2011 2012 2013 2014 2015 2016 Initial Public Offering (reverse IPO) Deutsche Börse Frankfurt (FSE) Prime Standard M&A Dubai, UAE M&A Singapore, Singapore M&A / Asset of a prepaid card portfolio in UK M&A Singapore / Malaysia M&A Jakarta, Indonesia M&A / Asset Lufthansa AirPlus Servicekarten GmbH, Germany M&A Payment Business of Great Indian (GI) Retail Group, Chennai, India 5 2017 Wirecard
GLOBAL PRESENCE Canada Germany USA UK Ireland Austria Poland Slovakia Romania Turkey India Myanmar Malaysia Laos Vietnam Greece Hong Kong Philippines Mexico Singapore Dominican Republic Indonesia Australia New Zealand Brazil South Africa UAE 6 2017 Wirecard
WIRECARD OFFERS WHITELABEL SOLUTIONS BANKING AS A PLATFORM FOR FINANCIAL INSTITUTIONS AND FINTECH CUSTOMERS BIN sponsorship CARD ISSUING (PREPAID, DEBIT, CREDIT) MOBILE WALLETS/ MOBILE PAYMENT WHITE-LABEL BANKING ACCEPTANCE & ACQUIRING CREDIT BROKERAGE/ FACTORING 7 2017 Wirecard
2 DIGITALISATION FACTS AND FIGURES
HOW DIGITALISATION INCREASE Example Europe: Retail goes digital: More and more retailers are selling on the web, making a solid turnover share online and the digitalisation of the whole customer life cycle is on the breakthrough Digitalisation of consumer s shopping behaviour: Buyers get information and inspiration on the web, save with promotions and share impressions online while on virtual or real shopping tour. Reinventing Retail through Digitalisation comes with big investments in promising internet technologies *Sources: EHI Retail Institute, Eurostat, Google Consumer Barometer, IDC
Digitalisation only increase in a system working together. So Wirecard doesn t just offer Digital Payment. It offers a complete circle of products and services.
STRONG VALUE CHAIN DIGITALISATION END-TO-END FULLY DIGITISED ACQUIRING AND ISSUING MOBILE FRONTEND SOLUTIONS SMS / USSD SIM TOOLKIT / J2ME SMARTPHONE APPS SMARTPHONE SDK VALUE ADDED SERVICES MULTI-CHANNEL WALLET PLATFORM ISSUING PROCESSING PLATFORM CONTEXTUAL ADVERTISING CUSTOMER DATA MANAGEMENT TRANSACTION AUTH. / CLEARING KNOW-YOUR CUSTOMER FRAUD / AML MANAGEMENT LOYALTY PROGRAMS WALLET CONTENT MANAGEMENT BALANCE MGMT. (STORED VALUE ACCOUNT) CREDIT FACILITY MANAGEMENT PERSONALIZATIO N COUPONING SERVICES PEER-TO-PEER TRUSTED SERVICE MANAGER Issuing ISSUING LICENSE a and many more FINANCIAL SERVICES LICENSE E-money and banking license ACQUIRING LICENSE and many more ACQUIRING PROCESSING PLATFORM MULTI-CHANNEL PSP PLATFORM TRANSACTION AUTH. / CLEARING TRANSACTION ROUTING FRAUD / AML MANAGEMENT RISK MANAGEMENT CUSTOMER DATA MANAGEMENT FRAUD PREVENTION TERMINAL MANAGEMENT MERCHANT ANALYTICS NETWORK OPERATIONS MERCHANT RECONCILIATION Acquiring VALUE ADDED SERVICES CONTEXTUAL ADVERTISING LOYALTY PROGRAMS COUPONING SERVICES TRUST EVALUATION SUITE MINI ATM MULTI-CHANNEL FRONTEND HARDWARE ONLINE API SMARTPHONE SDK BATCH API VALUE ADDED SERVICES
3 EVOLUTION OF PAYMENTS
FROM THE PAST TO THE FUTURE
TODAY S PROGRESSION *Sources: Capgemini, Gartner, idate, IDC, Retail Bank Research, Statista Digital Market Outlook
4 EMERGING MARKETS FOR PREPAID
PREPAID ON THE RISE Worldwide growing markets Still more dynamic environment in the India and Asia market protected by increasing innovations The European, UK and US prepaid cards market is growing steadily, for example the US market is projected to reach USD 3.1 trillion by 2020 Overall, Payment via cash or cheque is playing an increasingly minor role, while prepaid payment is on the rise
PREPAID SOLUTIONS Use case: Contactless (NFC) mobile payment application Digital Prepaid MasterCard either provisioned into Apple Pay or HCE technology Loading via credit card or bank transfer Spending via ATM, e-commerce, POS terminals Available in: UK, FR, CH, IE, IT, ES (ios) DE, AT, ES, IE, BE, NL (Android) WD Product/ solution: Issuing and issuing processing through Wirecard Card Solutions
PREPAID SOLUTIONS Use case: Contactless (NFC) mobile payment application available in France and Spain Full integration of Self Service Platform and ICLS (Embedded cashback and couponing functionality) Top up via credit or debit card wire transfer and P2P money transfer Offer section fully integrated with Wirecard s Loyalty & Card linked offer platform WD Product/ solution: Issuing license by Wirecard Card Solutions, issuing platform, issuing processing Full turn-key solution by Wirecard (mobile app for Apple, Android and Windows; customer care)
5 PAYMENT LANDSCAPE WHERE WIRECARD SITS
MARKET ENVIRONMENT
TRANSACTION VOLUME
6 CONCLUSION
CONCLUSION The payments landscape continues to be become more and more digitalized Wirecard is successfully pushing forward the digitization of payment processes using internet and cloud-based technologies on a global scale. We have greatly expanded our fully digitalized platform for integrated acquiring and issuing solutions and enhanced it to include important value added services. In addition, the globalization of the Wirecard platform has been advanced on a huge scale. We want to support companies to fundamentally benefit from integrated and digitalized payment solutions in the FinTech space 23 2017 Wirecard
CONTACT Brian Lawlor Director of Sales and Business Development Wirecard Card Solutions Ltd. Grainger Chambers, 3-5 Hood Street Newcastle upon Tyne, NE1 6JQ (UK) brian.lawlor@wirecard.com www.wirecard-cardsolutions.com