Zoom Into Payments

ZOOM INTO PAYMENTS

Read the cartography, be an explorer!

October 2016

DSF

Introduction

FinTech, namely the payment financial technologies, is a necessity in consumers’ daily life and a buzzword among different sectors nowadays: the processing of payment flows involves different types of players in the payment value chain, closely relevant to E- commerce, banking services, insurance, credits, mobile, etc.

This booming industry was also helped by legislative changes (PSD1 and PSD2), which led to an explosion in the number of its actors. Indeed, this industry keeps changing, shifting rapidly to a more and more complete and integrated offer, which is also more complicated to handle technically. This was obviously was a huge opportunity for new actors to enter the market.

Without a clear understanding of the complexities, it’s hard to get out of struggle. Therefore, we decided to sort out all the players in the coopeting industry, the relations of the whole value chain, and various functionalities of each type of solution providers.

Methodology

To make this cartography mapping file and to be more abundant with useful information to assist your business, we chose 3 ways to obtain and categorize information, for the companies and professionals involved in this survey, please refer to appendix:

1. 1st hand research, based on the non-confidential information and contents from sales department. 2. 2nd-hand desk research, including customer insights institution, media of payment sector, etc 3. As a one-stop payment solution PaaS, among all the players of e-retailers and payment sectors, we also contribute with our professional knowledge about payment industry into this cartography mapping document.

FIN TECH MAPPING CARTOGRAPHY (MAIN PART)

Table of contents

The Payment sector: A booming industry ...... 5 PSD1 & 2: A key factor in the development of payment services ...... 5 What is it about? ...... 5 New banking institutions created by the legislative changes ...... 7 History of online payments: From Tech to FinTech ...... 8 The value added for merchants ...... 8 Marketplaces: An extra level of complexity...... 9 Main Services & Functionalities of online payments ...... 10 1. Pay in ...... 10 2. Collect & Reconciliate...... 11 3. Pay out ...... 13 Payment actors: A Coopetitive industry ...... 14 Payment Service Providers ...... 15 Acquirers ...... 16 A specific form of acquirers: Alternative payment methods ...... 17 Directory of the Payment industry ...... 22 1. Payment solution providers & acquirers...... 22 2. Marketplace SaaS/Payment technical solution providers ...... 28 3. Alternative payment methods ...... 30 About Limonetik ...... 38 Apprendix ...... 39

The Payment sector: A booming industry

PSD1 & 2: A key factor in the development of payment services

What is it about?

The PSD1 is the European legislation voted by the ACPR that regulates the collecting of money on behalf of third party. It paves the way for new actors to revolutionize the market, and redesigns the role of the marketplaces in the value chain.

This new legislation pushes the intervention of new banking institutions (issuers of electric money, payment institutions) to collect, process and dispatch the funds from sales. This initiative leads to an increase of the competition by encouraging the emergence of new bank-like actors, and offers a better protection of consumers’ data by capturing interchange commissions. The PSD1 also intends to make the payments safer by protecting customers’ data.

Indeed, it is a great opportunity for banks to collaborate with the FinTech sector, and it also opens a door for non-banking actors to enter the market and encourages them to offer value-added services to set their company apart from competitors. At the same time, it limits interchange commissions for bank card payments, which used to be paid by the final customer.

The PSD2 is about regulating the role of the new actors & services brought by the PSD1, making the payments even safer, and allowing new types of bank-like services to enter the market.

Indeed, the PSD2 revolutionize the access to bank accounts information: it brings in payment initiation services and account information services. This mainly means that it is possible for the consumer to have an access to their accounts information and to initiate payments without the mediation of banks.

The PDS2 drives competition and fosters innovation by reducing entry barriers for new payment service providers and online account information service providers. It will enable PSPs to launch innovative, safe and easy-to-use digital payment services and to provide consumers and retailers with effective, convenient and secure payment methods in the European Union.

The PSD1 & 2 are obviously about improving the user’s experience, making it safer and cheaper. It also makes it possible for new banking and non-banking actors to enter and revolutionize the market increasing the competition and bringing in new types of services.

New banking institutions created by the legislative changes

The PSD1 & 2 encouraged the emergence of new actors to play the acquiring part in the payment process. That’s why it’s important to distinguish the banks from the issuers of electronic money and from the payment institutions. They can all play the same part but at different levels according to their accreditation.

Banks

It is the highest banking institution – the only one allowed to grant credits. They conduct operations such as receipt of funds, credit operations, and banking payment services. They also offer side services like money exchange, financial investments, buying and selling financial products and so on…

Issuers of electronic money

These establishments have the second highest banking accreditation. They can issue electronic money, make it available for the public, and manage it. They can also conduct payment services operations. Their main characteristic is that they’re authorized to stock money.

Payment institutions

It’s the lowest banking aggregation. Payment institutions provide payment services such as executing operations initiated by card, transfer or debit. They are also allowed to transfer funds, collect money on behalf of third parties, give access to payment instruments, manage accounts, and guarantee the execution of payment operations. Unlike issuers of electronic money, that can’t stock the money: they collect it and dispatch it right away.

History of online payments: From Tech to FinTech

The value added for merchants

A few years ago, it was really complicated for a seller to accept payments, and even harder for alternative payment methods. Indeed, the merchant had to open an account for each payment method he wanted to include, and negotiate the commission fees with each one of them. The payment solution provider (PSP), who processes the payments and the acquiring bank were two separated entities, with different functions and costs. The multiplicity of intermediaries (PSP – acquiring institution – payment method) made the payment part really unclear.

Then, the banks partnered with PSPs to offer a bundle solution, which included both the acquisition and the processing part. This alternative was taking one intermediary out of the paying process, but was mostly working for bank cards and a few other payment methods. Bundle

With the new legislations imposed by the DSP1 and 2, the PSPs had to include Issuers of

With the new legislations imposed by the PSD1 and 2, the PSPs had to include Issuers of Electric Money (IEM) or Payment Institutions (PI) to collect and dispatch the money. They partnered with these actors to move to a full-service offer that connects the vendor directly to the acquirer.

PSD1 / PSD2 Legislation

With the globalization and the explosive increase in the number of payment methods, PSPs had to partner with lot of new payment methods and acquiring institutions all over the world. The Full Service providers now position themselves as the unique

intermediary between the merchants, all the payment methods, and the acquiring banks worldwide. They handle not only the technical & contractual connection but also the reconciliation of the financial cashflows.

Marketplaces: An extra level of complexity

The marketplaces are new actors in the e-commerce, and one of the main growth levers in this market. They are multi-vendors e-commerce platforms, where product or services are provided by multiple vendors/ third parties.

To fit with this specific business model, some changes in the payment value chain are obviously required. Indeed, the money has to be collected from different payment methods, and paid out to several vendors. This specificity complicates a lot more the reconciliation step.

Main Services & Functionalities of online payments

The Payment industry offers plenty of functionalities and services, starting from simple processing to Full Service offers that also include collecting, reconciliation, pay out, and a battery of value-added services for marketplaces.

1. Pay in

Processing

It means the technical API connections, facilitating the integration among all the players on the payment value chain. This is mostly executed by the payment service providers. They connect payment methods for retailers, providing the whole “plug & play” solutions quickly and conveniently, and acquirer connection management. There are as many connections as payment methods and acquirers. This task also includes the integration of data & files.

Multi-payment processing

It is mainly provided by the PSP and other payment solution providers, including split- tender transaction support (customer could pay single one transaction with multiple payment methods – Gift card and bank card as a complement, for example), and updating new payment functionalities for retailers.

2. Collect & Reconciliate

Collecting

The payment collection is a service offered by Payment Institutions (PI) which designates the process of recovering the amounts owed by the clients to the firm. This means opening accounts and collecting funds worldwide, while respecting local compliancy. As there is a multitude of payment methods, there are a lot of complexities to be handled in the collecting part: the money needs to be collected from different sources for the same transaction sometimes (multi-payment processing for example).

Reconciliation

Full reconciliation services provided by PSP and payment full-service providers are about organizing and unifying all the financial flow orchestration. It is a time- consuming task where you need to reconcile the sales transactions with the bank payments. It also needs to take into account eventual refunds (the consumer gets all/part of the transaction amount due to some problems like product quality, delivery, etc.), chargebacks (initiated by the consumers, who could stop the money from going to the account of the retailer) or disputes. To do so, the acquirers’ data are needed. But as big merchants and marketplaces usually have several acquires, there are lots of files coming from different geographic regions needing to be studied. What complicates even more the reconciliation task. Reconciliation takes place at 3 different levels: 1: Reconciliation of the transactions with the payment methods – Being able to say which transaction was made with which payment method. This is an operational level; there is no actual financial cashflow. 2: Reconciliation of the payment methods’ promises of payment with the sales transactions – Being able to know which operations are going to be paid by which payment method. This is a financial level. 3: Reconciliation of the promises of payment with the actual bank transfers – Saying if the transactions were paid or not.

Reporting

Reports are extracted files regarding the transactions, operations, reconciliation, daily unification report delivery, periodical capture data report, billing generation, settlement, etc. It’s important for the reports to be customized so they can be integrated in the ERPs softwares and allow the accounting reconciliation to be done.

The ERP (Enterprise Resource Plan) is a software used to collect, store and interpret data of different businesses. It provides a simple view of the core business processes.

Accounting system

It is a real time accounting system that allows PSPs to know exactly the amount of money they have, and what they owe to their partners. The system is able to differentiate the money waiting to be perceived from the money already perceived. It is about planning when to disburse the payment to vendors from baking partner, and receive the commission fees, meanwhile taking charge of the fraud and chargebacks. PSPs

Billing

The billing step if about giving vendors/marketplaces a detailed bill of the transactions, noticing them of the commission of each intermediary (the PSP, payment method, payment institutions…),

3. Pay out

Pay out

Paying out is about transferring the money from the escrow account to the vendor’s account. In the marketplaces’ case, payments have to be dispatched to several vendors.

The pay out can also take into account the conversion in local currencies for foreign sellers. Historically, this step was taken care of by the banks, but there are more and more actors doing dynamic currency conversion (Transferwise, Wertern Union, Moneygram…) that allows you to do the conversion at the real-time rate.

Checking final beneficiaries: KYC

Namely “know your customers”, this strategy is about doing a background check on your clients to prevent from fraud and reduce the risks as much as possible. This research aims to spot politically exposed and dangerous people. This due diligence is getting increasingly important, especially with the globalization and the emergence of cross-border transactions.

Payment actors: A Coopetitive industry

In the Payment industry, we distinguish 2 main types of actors: the Payment service providers (PSPs) and the acquirers. We usually talk about this industry as a coopetitive one because rivals often turn out to be partners. Indeed, sometimes PSPs can’t provide their clients with some advanced services and have to subcontract other providers to do so, whereas they are competitors on the market. The matrixes thereafter show a quick overview of the actors’ positioning in the payment industry.

Payment Service Providers

Payment Service Providers (PSPs), via technical connections with banks, acquirers and other payment networks actor enable e-retailers to accept payments from diversified payment methods: credit cards and other alternative payment methods such as gift cards, bank transfers, prepaid payments and so on. They simplify the relation between the merchants and the financial institutions, positioning themselves as a unique intermediary. PSP offer their service either directly to their customers, or as a white label for banks.

According to their level of services, we distinguish 3 types of PSPs: the processers, the Full Service providers, and the Marketplace service providers.

Processers

This is the type of PSP that has the less complete offer. They only provide their customers with the “Pay in” that is to say, the processing of payments and the integration of data and files.

Full Service Providers

Full Service Providers also offer value-added services like risk management, fraud protection and transaction reconciliation, reporting, fund remittance as well as multi- currency functionalities and services. In this category, the level of services depends on each PSP. Some PSPs often subcontract their competitors to provide their customers with a fuller offer.

Marketplace Service Providers

The Marketplace service providers are PSPs able to handle the specialties of this business model. Indeed, marketplaces add an extra level of complication, especially for the reconciliation and the pay out parts, because of the multiplicity of the number of vendors.

There are also two PSP-like actors: IPSPs and Payment Gateways. IPSPs (Internet Payment Service Providers) open merchant accounts in acquiring banks and lease it to individual entrepreneurs, which simplifies the procedures for the client. On the other hand, Payment Gateways authorize credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. They are a narrower version of the PSPs.

Acquirers

At the end of the payment process, the money needs to be acquired by a bank. Traditionally, there are 2 types of acquirers: acquiring banks and issuing banks. But alternative payment methods can also play that part.

Acquirers Issuing bank

Also known as acquiring banks, Generally bills the card holders for they represent merchants and the debt, taking charge of writing a marketplaces to process payments letter of credit, to make sure the from different sources (card payment of interests and principal schemes, white labels, APMs) on any purchase by the card across different regions, holders, in the other word, issuing settlement currencies, etc. Now banks maintain the consumer’s some PSP also acquirer payments credit card to be paid out for the for merchants and marketplaces. retailers (merchants, vendors, etc.)

` In this model, the seller’s bank and the client’s one are different. On one side, we have the card holder and his bank – issuing the payment method. On the other side, there is the vendor accepting the payment, and his bank, playing the acquiring part. The two banks have to interact with each other to process the payment. It is called an interbanking transaction.

A specific form of acquirers: Alternative payment methods

APMs are identified as the alternative to credit card, especially for online & electronical payments. There are more and more APMs nowadays in the market, with differentiated competitive advantages, diversified functionalities, different usages, distribution, and preferences in various regions.

Alternative payment methods can indeed be considered as acquirers in a 3-party scheme because they issue and acquire the payment, as described in the following document.

In this model, the client – the card holder – and the vendor have an account in the same institution – they are in the same bank or using the same alternative payment method like Paypal. It is an intrabanking transaction: the same actor is playing both the issuing and acquiring parts.

Bank transfer

Bank transfer here mainly means the real-time one for online shopping payment. Normally consumers could pay after re-directed to the page of their banks, to transfer the amount to the account of retailers. This traditional payment method is seen as the main one in Netherland, Germany, Poland. Besides the APMs listed in the document dedicated for checking-out, online/mobile remittances via online platforms are also popular nowadays.

Gift card

Gift card could be categorized in to 2 types: multi-store and single store ones (both virtual and physical ones). Customer need to purchase a gift card before starting a transaction. E-gifting payment reaches $6 billion in 2014. It is predicted that the annual growth will be close to 10% for the gift card market through 2017, to reach $14 billion. A survey made by a payment institution showed that over 70% of the consumers are willing to pay with virtual gift card for online shopping. The main advantage is that it can be used to split tender payment for several transactions, or to pay with other payment methods for single transactions.

Direct debit

Direct debit could be regarded as an “authentication” by the bank account holder to the bank to debit their accounts to pay. It is mainly favorited in the context of low- value or recurring transactions, popular for regular, predictable payments, such as subscriptions, although they carry the risk of chargebacks. It’s one of the most used payment methods in Germany and Poland. The transaction amount is predicted to reach $13 billion in the year of 2019.

Prepaid payment

This item could be categorized into 2 types: prepaid card and voucher. Consumers need to buy before shopping and pay online, and it’s also possible to store monetary value on the same card or processed on credit card network. It could be issued by an institution for specific holder or anonymous. 32% of consumers reckon that the most secure payment methods would increase for online purchase. Most pre-pay products have a funding limit, and some allow multiple vouchers to fund one single transaction. Users could also use one voucher to pay for different transactions. It is forecasted by payment institutions potential of 14 billion euros for the prepaid market. Prepaid card penetration among adult population

Payment by installments

This payment method allows consumers to split their online purchases into smaller monthly payments, in other words, getting loan for e-commerce, to mitigate the impact of a large transaction. Thus, after ordering a product online, customers pay for it later at an affiliated outlet or store when they want to buy expensive products, normally, the price point is between €90 and €3,000. Online payment by installments market is estimated to be over €800 million transaction volume in the year of 2015.

Pay by Cash

It is also known as “post pay”. Consumers could pay after ordering online at an offline stores, points, convenient stores or groceries. Customer receives a reference number online after ordering, and then goes to the physical store / convenience store to pay with cash. Payment notification is done as soon as the customer paid. Normally this sort of PMs has over hundreds of physical points in a certain region. This payment method is popular in Japan, Brazil, etc. The transaction value is predicted to reach $25 billion in the year of 2019.

E-wallet

It is also known as digital wallet. Users could link the wallet with their bank account to plug in and store money in their E-wallet. Taking refunds back is also possible (with/without charge fees). It is regarded as the most rapidly rising star in payment method sector, most popular online payment methods in emerging countries: China, Russia, etc. It could be achieved on multiple devices. Mobile wallet is one of the most thriving one in the market at present. Telecom companies and mobile manufacturers (Apple, Sumsung) are also flooding into mobile wallet area. The transaction value is predicted to reach $668 billion in the year of 2019.

Crowd-funding gifting

It is also known as social payment. It tackles this problem through online “money pots”, collecting money from different types of payment-service providers. Mainly for event / celebration gifting. Normally, users could enjoy the promotion and discounts from the merchants’ partners of the crowdfunding payment platforms. It could be a mobile app and social payments site as well. It lightens the burden of payment by letting others chip in, and eliminates the need for a manual order process making it easier to ship. Wedding list is one type belonging to this payment method.

Carrier billing

Mainly operated by telecommunication companies. Different from other payment methods on mobile device, with carrier billing, final users could pay directly through their mobile phone bill. Boku is the leading player in this sector.

Digital currency

It has also been identified as crypto-currencies. It is popular among youngster users to pay digital products, like videogames, music, e-books, online subscription fees, etc. internationally. Bitcoin is the main player in this part. There are many bitcoin processors to connect bitcoin for retailers and deal with the transactions

Top reasons to use APMs : Security, Convenience, Comfort, etc.

Directory of the Payment industry

1. Payment solution providers & acquirers

Region Brief Information 2Checkout platform integrates multiple payment methods US internationally for retailers. 2Checkout 2checkout Expand is simple to implement, including a globally payment gateway, a merchant account, PCI compliance, anti-fraud management, and easy integration. A highly-globalized PSP, founded in Netherlands 2006. Expand in 200 + countries and Adyen Expand territories. Connect 250 payment globally methods, 187 currencies, and different sizes of merchants and marketplaces. A payment gateway serving merchants Brazil and PSP with one integration providing Allpago Expand clients an access to credit card globally payments and offers post-transaction reconciliation, reporting. Leading PSP in Asia, one – stop Hong Kong electronic payment mercies solution Expand in provider and technology partner in South East Asia Pay Asia, covering international credit Asia card, debit card and other prepaid

card payments. Leading PSP in Europe, Key actor for B2B2C industries. ATOS Worldline Atos Worldline Expand in EU provides e-commerce with e- transactional payment services and financial processing. Since 1996, Authorize.Net has been a leading provider of payment gateway services, managing the submission of Authorize.net US billions of transactions to the processing networks on behalf of merchant customers. Authorize.Net is a solution of CyberSource Corporation. Established in 2012. As a PSP and acquiring institution for online Be2Bill France retailers, providing payment processing services across different channels / devices.

A PayPal company. A leading payment platform, processing payments for US innovative online merchants. With Expand in NA, Braintree business in 40+ countries, 130+ EU, Australia settlement currencies, especially on the devices of mobile. A leading PSP established in Germany, German 1997, now covering global regions. Computop Expand Connect over 10 thousand 1st tier globally cross-border merchants and marketplaces. Founded in US in 2007. A leading payments acquirer in worldwide. Providing full secured acquiring US services with the “Smart Acquiring”, Expand Credorax including merchant onboarding, globally settlement, fraud management, credit card processing, reporting, analytics, etc. Founded in 1996. Now a sub brand of MasterCard. Provide international UK payments processing, fraud Datacash Expand management solution, white label globally acquirer, etc. As one provider for all the payment processing needs. US Connected over 200 international and local payment methods, and over 170 Digital River Expand currencies. In 2014, Digital River globally processed more than USD 35 billion in online transactions. A leading PSP in Asia, founded in 1997, now expanding its online payment solution business in different Japan segments: e-Commerce solution, Expand in eContext online payment solutions, overseas APAC marketing, etc. With sub payment brands across Asia: Veritrans, econtext, Citrus, Sendo, etc. A leading global payment processor. Provide wide range of services, US including payment processing to Expand Elavon loyalty programs, fraud management, globally mobile payments, security solutions, data-driven insights, etc. Founded in UK in 2002. An innovative UK payment processing gateway, eMerchant Expand providing authorization, settlement, globally funding in 150+ settlement currencies, card processing, APMs, etc.

PSP solutions. Innovative Payment processing, payment data collecting Expand services providers, with special eNett globally expertise in the travel sector, covering both domestic and international areas. German EVO is mainly working as the exclusive Expand to card acquiring provider for Deutsche EVO Payments Europe, NA Bank’s Global Transaction Banking in and LA Europe. Founded in 1984 in US. A leading actor US in payment sector, providing services Fiserv Expand of innovative payments, processing, globally for clients like online merchants, mobile banking, online banking, etc. Provide multiple give cards and loyalty programs processing for merchants, US Givex gathering data from their POS, CRM, and other systems for clients. Leading PSP worldwide, with 600+ clients of major ecommerce brands. GlobalCollect Netherlands Now acquired by Ingenico Epayments, Expand enable merchants to accept payments globally from 170+ countries in 150+ currencies, with 150+ local payment methods worldwide. Founded in US in 1983. A leading US payment processor in US. Now Heartland Expand extending to mobile / e-commerce, globally marketing solutions, end-to-end encryption. France  It could integrate all payment methods for merchants and marketplaces, and HiPay Expand provide full services, including fund globally collection, allocation management. Starting into payment sector since 1999. Integrate popular local payment Netherlands methods for websites, e-retailers, with IcePay Expand in EU expertise on international payment, marketing, business development. Limonetik is a full service provider in the payment ecosystem that offers to PSPs, acquirer, international marchants and marketplaces to easily France Limonetik access, via a unique API to a large panel of international payment methods and advanced services from collection to accounting reconciliation.

 Marqeta platform, as a payment processor with an open API, enabling Marqeta U.S. clients to processing and collecting payments easier, no matter B2B or B2C sectors. Belgium, Offer online fraud prevention France solutions, payment methods Ogone connection, collecting for retailers. Expand in EU Now belong to Ingenico group since 2013. Germany  Onpex provides solutions to facilitate international expansion and the Onpex Expand in EU, development of banks, PSPs, ISOs in NA, Asia the payment business, with connection to acquirers, APMs internationally. A software provider for acquiring and issuing for bank card, payment processing, financial transaction routing and remote banking services, Open Way Worldwide etc. Its WAY4 Wallet solution is dedicated to provide strategic value for banks online/mobile payment applications with innovation. Founded in 1999. One of the leading PSP in France. With competitive advantages in online ticketing, tourism Paybox France payments. A brand of Verifone. Now Expand in EU processes payment flows for 40,000 + merchants and 120 million transactions per year. PayFort is an online PSP, providing United Arab services to online retailers, Emirates governments, airlines, SMEs, PayFort Expand in institutions with innovative payment Middle East options for both credit card and non- credit cardholder’s online shoppers. Across Europe, a solution being used in France 26+ countries, as an international Payline acquirers. With Payline, merchants Expand in EU could accept payments in 114 different currencies. Connected 40+ PMs. Founded in 2011 in Austria. Affiliated to PaySafe Group. Provide white-label solutions for invoicing and installments Austria in Germany, Austria and Switzerland, Payolution Expand in EU and offer Omni-channel integration of invoices and installments for merchants.

 Founded in 2004. A Germany-based payment transactions processor. A Germany provider of white label global payment Pay.on gateway solutions, meanwhile with Expand payment gateway on the platform as globally one of its functionalities. Pay.on was acquired by ACI, the Universal Payments company, in 2015. Founded in US in 2005. A leading US company for transfer payment Payoneer Expand methods internationally. Now acquired globally Armor Payments, to provide B2B escrow payment services for Payssion provides global payment solution with local E-payment methods Hong Kong for international businesses. Through Expand in its online payment platform, consumer Payssion South East could get access to an unrivalled Asia portfolio of local and international payment methods in over 170 countries with multiple settlement currencies. A leading online PSP, working for Netherlands 100,000+ merchants globally. Provide PayU Expand 250+ multiple international payment globally methods for clients through different settlement currencies and regions. A global payment platform that offers a safe and simple way to receive 100 different types of payments from Estonia consumers worldwide. Payzoff is Expand Payzoff specifically designed for developers globally and publishers of digital content (digital merchants), and provides comprehensive reports for merchants. The leading payment transactions / processor in Switzerland. It kept Switzerland Postfinance develop business to cover new services for consumers’ evolving demands.

Provide full payment solutions, including acquiring, one contract for UK connecting multiple payment methods Expand PPRO (card scheme, NFC, prepaid, virtual globally accounts), fraud protection, risk management, issuing, processing. Integrate international payment France methods, designing payment page for Processout Expand merchants and marketplace. Secure globally the whole payment flow, provide risk and credit management.

A service provider offering safe online payment methods integrated for online Ratepay Germany merchants. And provide e-payment solutions for online shops, including invoicing, control system, etc. Founded in 2000, Realex Payments is a European PSP that provides a range of Ireland payment gateway services and Realex Payments Expand processes transaction on behalf of globally more than 14.000 clients. In 2015, the company became part of the Global Payments network. Founded in 2001, Sage Pay provides complete payment solutions for all UK Sage Pay kinds and sizes of businesses: online retailers as well as physical ones. A PSP specialized in e-commerce, Netherlands founded in 2002 in Amsterdam area. Smart2pay Expand Connected 79 payment methods, now internationally already active in 102 countries, including Spain, Brazil, USA, etc. Founded in US in 1971. A leading player in payment sector, providing US services for merchant like payment Expand Vantiv acceptance, card issuing, processing, globally mobile payments, anti-fraud management, data security, etc. A listed company based in Germany. A global leading payment full-service Germany solution for merchants and Expand Wirecard marketplaces. Dedicated to provide globally ameliorated payment experiences for both business and private consumers. Founded in 1993 in UK. A worldwide leading PSP, tackling payment UK processing, risk management of Expand WorldPay transaction, providing wide range of globally services: acquiring, multi settlement currencies, etc.

2. Marketplace SaaS/Payment technical solution providers

Region Brief Information

 Founded in UK, Earthport enables Earthport UK merchants to provide better user experience of cross border payment.  A Cyprus based merchant service Failsafe Payments Cyprus provider. Processing domestic and international online payments via its CertoPay platform.  It could integrate all payment France methods for merchants and HiPay marketplaces, and provide full Expand globally services, including fund collection, allocation management.  Founded in Paris in 2008. Provides one-stop direct integration to France Alternative Payment Method Limonetik globally, and post-transaction full Expand globally services, reconciliation, MI reporting of multiple settlement currency for merchants and marketplaces.  MANGOPAY is a brand of Leetchi Group, part of the Credit Mutuel France Arkéa. It Provide payment solution MangoPay dedicated to marketplaces and Expand globally merchants. Help clients to connect multiple payment methods (card scheme, APMs). Webhelp Group covers wide range of services for clients, as the 3rd largest customer experience FR agency in Europe. Now having Webhelp Expand globally developed mature payment services business, covering marketplace payment, fraud,

credit management, collecting, reconciliation, etc.

 Full services SaaS platform for merchants, marketplaces. The WePay U.S. services ranges cover including payments processing, risk management, crowdfunding, machine learning, etc.

3. Alternative payment methods

E-wallet Region Brief Information E-wallet lauched by Alibaba in 2004; The largest third-party online payment methods in China; cover 30+ countries, 12 currencies; 400 million active China Alipay consumer worldwide; Facilitates $620 bn by end of Mar 2014; Nearly half of all transactions in China – 44.3% - are made using e-wallets. An Amazon payment method providing US quicker, safer payment experiences for Expanding Amazon Pay consumers and online retailers in global globally range. Launched by Credit Mutuel in France, dedicated to be mobile payment method, merchants’ CRM and marketing Fivory France platform; Connect 590 merchants, including primary enterprises, like Pizza Hut, L’occitane, Yves Rocher, YellowKorner, etc. Created by Oney, Group Auchan in 2012. The 1st mobile all-in-one payment solution designed by the retail France sector in France; Oney Banque Accord Flash’N Pay Expand in EU has 7+ million clients in 11 countries; Flash’N Pay is being rolled out currently in France and abroad, notably in Luxembourg and Portugal. Digital wallet launched by MasterCard US in worldwide; MasterCard processes Expand globally MasterPass billions of transactions each year on the

world’s fastest secure payment network. Neteller is an e-money/e-wallet service UK owned and operated by publicly traded Neteller Expand globally British global payments company Paysafe Group Plc. Launched by three major French banks collectively; Connected large e- commerce enterprises in France, like France Paylib Voyage SNCF, Priceminister, Vente- privee, Showroomprive, etc.; with 23+ millions users.

Launched in 1998, the leading e-wallet US in worldwide range, across 203 PayPal Expand globally countries, 26 currencies, connected 20m+ global retailers; 300 million users, 165 million active users. Launched at the end of 2007, co- branded with Visa; QIWI wallet is a leading payment methods in Russia; Deployed over 16.7 million virtual Russia Qiwi wallets, over 149,000 kiosks and terminals; Enabling merchants to accept RUB 70 bn + cash and electronic payments monthly for 57 million + A payment method based on Seamlesss’ technology, a mobile PM and transaction service using QR codes and NFC, from Sweden, expanding in EU as Sweden most used mobile wallet in stores and SEQR Expand in EU online. With 3.1+ billion transactions processed every year on behalf of leading mobile network operators, banks, retailers and distributors. Launched by Tencent in 2013, the social media giant in China; Customers: 200+ million; Tenpay provides large payment China Tenpay transaction service for overseas merchants, covering sectors like airlines, tourism, gaming, etc. A subsidiary of PostFinance, Switzerland’s leader in payment Twint Switzerland transaction processing. A fast emerging mobile wallet, with partners in different sectors. Launched by visa internationally. US Enable users to pay quickly and easily Expand globally on any device; Connected 1000+ V.me by Visa merchants in UK; Connected 197 merchants in France, including primary e-commerce enterprises. A global settlement system and environment for online business Webmoney Russia activities, established in 1998. Now 30 million+ people worldwide join the system. Payment methods of Wechat, most popular social application in China, lauched by Tencent, with 400+ million China WeChat Payment monthly active users; a Build-in payment function that allows users to pay with bank accounts using Wechat

The largest online payment service in Russia, provided by Yandex, the operator of the largest search engine in Yandex Russia Russia; Connected 76,000+ merchants, including major cross-border large merchants.

Gift Card Region Brief Information

A multi-store gift card, created by France Everest Marketing Group in 2009. The BEST e-gift card was launched in 2013 Now connected with 17 online shops. A multi-store gift card, launched by France Cadhoc Groupe UP in France; Connected 530 brands. Launched in 2011 by Natixis, a multi- store gift card, connected 500 brands, including 150 online merchants; France CADO Number of distribution: 0.44 million (2013); 0.55 (2014); Amount of distribution: 28.5 million euros (2013); 34.57 million euros (2014). Launched by Crédit Agricole. France Connected to large merchants in Carte de Rééquipement France and Belgium, like online Pacifica Belgium merchants – La Redoute, Mister Good Deal, etc. and brick-and-mortar - Conforama, Galeries Lafayette, etc. Gift cards accepted internationally. Mastercard Gift Card Worldwide They can be used wherever MasterCard Debit is accepted. Launched in France by Sodexo Group, as a multi-store gift card in 2012; France Connected with 500+ merchants in FR and Belgium, covering sectors like Spirit of Cadeau Belgium fashion, property, sports, babies, beauty goods, food, culture & media products; Distributed 1 million cards in 2014. Launched in 2012 by Edenred, now a France leading multi-store gift card in France Ticket Kadéos local market; Connected 37 online merchants.

Direct Debit/Bank Transfer Region Brief Information A real-time verified bank transfer payments for retail internet transactions; The leader in electronic payment services in Belgium; Belgium Bancontact MisterCash accounting of 86% card payments market shares, over the other main credit card schemes; Connected 80+ % of all online merchants Belfius Direct Net is an online banking Belfius Belgium solution from Belfius, a leading bank in Belgium. Paybylinks is introduced by dotpay, as an online banking payment (bank transfers) method that enables customers to make an online purchase Poland Dotpay via their online banking service in Poland; 85+ % of all Polish consumers choose this form of bank transfer payment. A digital application payment methods enabling US users to transfer money to U.S. Dwolla friends (P2P) and business, simply and securely, with no transaction fees. Launched by NETS in Singapore. NETS Singapore is the PSP/ Payment Gateway and they eNETS Expand in South have their own PM, eNETS. eNETS is a East Asia Bank Transfer/ Direct Debit payment method. Eps is the popular Austrian debit card. Eps e-payment standard is the interface into online payment systems Austria EPS of Austrian Banks for irrevocable payments, adopted by Internet-Shops as well. An Online banking payment method introduced in 2006; Processed 3 million+ transfers, worth around 200 GiroPay Germany million Euros/year; Connected 1,500 + German banks, covering 17+ million consumers; Market share reaches near 16% Online banking payment method, introduced in 2005; Most popular method for online payment in Netherlands iDeal Netherlands; 50+ % market share in Netherlands; Processed around 150 million transactions per year.

Online banking payment method introduced by ING in Belgium; Connected with 800+ e-shops. Belgium ING Home’Pay Home'Pay is a system that allows consumer to pay online through the secure connection of ING Home'Bank. Przelewy24 (P24) is an online banking payment (bank transfer) method that enables customers to make an online purchase via their online banking service in Poland; P24 covers 96 major Przelewy24 Poland banks and credit card schemes in Poland; P24 is one of the most popular payment methods of its kind in the Polish ecommerce market; 85+ % of all Polish consumers choose this form of bank transfer payment. A real-time online-banking payment method, enabling online shoppers to Safetypay Expand globally pay with local bank account quickly and securely in worldwide realm. No credit card needed. SEPA (namely Single Euro Payments Area) aims to make cross-border Euro transfers within this area equivalent EU to a domestic transfer, now 34 SEPA SEPA countries, covering 500+ million citizens, 87.5 billion electronic payment transactions annually Sisal Pay was introduced by Sisal Group in Italy in 1946.Now, Sisal Pay Italy Sisal Pay owns more than 40 000 pay points in Italy.

An online money transfer payment UK methods founded in UK. A low-cost Skrill Expand globally international money transfers to betting, trading, shopping and gaming. An Europe’s leading service provider for recurring payments via SEPA Direct Debit; Connected 2000+ merchants in entire Eurozone, focusing on France and starting business in NL, BE and UK, France covering sectors like energy, SlimPay Expand in EU insurance, tuitions, press, recreation, telecom, repeat purchase consumer products, etc.; linked to 3,921 banks in 33 countries, serving 340 million consumers with European bank accounts.

Founded in Germany in 2005, a part of the Klarna Group; enabling real-time payments directly from the shopper’s online bank account to the merchant. Germany Covering 12 EU countries; Connected Sofort Expand in EU 30,000+ online merchants; accumulated 100+ million transactions; 2+ million transactions/month; 18+ million users. TrustPay is licensed and regulated by National Bank of Slovakia. The license is passported throughout TrustPay Slovakia the entire European Economic Area. TrustPay is a member of SWIFT and principal member of MasterCard and VISA. The only domestic bank card organization in China, the national bankcard association, established in 2002; UnionPay operates an inter-bank China Union Pay transaction settlement between banking systems and the inter-bank, cross-region and cross-border usages of bank cards. Launched by Brazilian Central Bank. This is the preferred Brazilian payment method which acts as a 'pro- Boleto Brazil forma invoice'. With 48,000+ electronic banking points in Brazil or through Internet banking, which is largely used in Brazil. Launched by Digital Garage. It combines cash payments, payment for online purchases at convenience stores. Japan has an extensive Konbini Japan network of convenience stores, which makes this payment method very accessible to the Japanese shopper, covering nearly 20% percent of Japan market. Multibanco is an interbank network in Portugal, with automatic post payment services, a sophisticated Multibanco Portugal system of ATM. In 2014, 781 million payments were made using this system; By 2014, total number of transactions reach 900 million. Created by the group Cofidis, payment by instalment in 3, 5, 10 or 20 times. Connected to 350+ e-merchants in 1euro.com France France, including high-tech, fashion, auto, apparatus, etc… Providind discounts for 1euro.com users exclusively.

Created by group Cofidis; France Subscription immediately, no 3xCB commitment for the users to pay online. Launched by Laser group; Connected with large groups merchants, covering the sectors of fashion, France CDGP beauty, high-tech, apparatus, telecommunication, traveling, facilities, etc; Including payment by installments: 1x, 3x, 5x, 10x, 24x. Launched in 2009 by Oney Banque Accord, attached to group Auchun, now the leading payment by France installments in France, including 3x, FaciliyPay 4x CB (with/without fees); Connected 80+ online merchants in France, covering sectors of high tech, furniture, music, auto, etc. Launched by emerging payments technologies Inc. payment methods, in the US; GetFinancing.com is a real US time decision engine that enables GetFinancing merchants to offer their consumers instantaneous credit from numerous financing sources; Provides Customer with “Instant Financing” at Checkout. An International payment methods by installments. Launched in 2005 in Sweden. Covering 15 European Sweden countries, including north European, Germany, Netherlands, France, UK, Klarna Expand in EU etc. Connected over 50,000. Now Klarna manages over 200,000 payments daily, reaching across 427 million consumers.

Prepaid Region Brief Information Chèque Vacances (paper/virtual Chèque Vacances France version), as the primary holiday vouchers in France; Connected ANCV 170,000 tourism, recreation, sport, etc. in FR, including large groups, like Club Med, Thomas Cook, SNCF, E-Chèque-Vacances France Voyageprive.com, lastminute.com, Air France, etc. And some in Spain, eANCV Germany, Italy, etc.; With 10+ million users in the year of 2014. Part of Paysafe Group Plc., is the worldwide market leader in online prepaid payment methods. Based in Vienna, Austria, the company is internationally active and present in Austria 43 around the world, generating Expand globally PaysafeCard around 86 million transaction in 2014,

available at 500,000 sales outlets worldwide. Connected with thousands merchants, covering sectors like gaming, social media & communities, film & music, etc.

Social & Gift Region Brief Information Launched in 2011. Connected top 50 e- commerce in France, covering different France sectors like fashion, high-tech, Le pot commun entertainment, travelling, services, beauty health, gift, etc. With 1+ million users. Europe largest platform for personal crowdfuding, group gifts and donations; launched by Groupe MangoPay in 2009; France Connected top 50 e-commerce in France, covering different sectors like Leetchi Expand in EU fashion, high-tech, entertainment, travelling, services, beauty health, gift, etc. Leetchi now has 1.5 million active users across 150 countries. Launched in 2010, wedding list and gifts; With 3 000 wedding lists created, 100 000 visitors, 2.2M Euros France transactions; Connect with large 40+ Lilyliste merchants partners: like Darty, Fnac, Pixmania, etc. Covering different sectors: travelling, furniture, apparatus, etc.

Digital Currency Region Brief Information A new form of monetary payment, digital currency, launched in 2010; Now around $300 million was spent via bitcoin on Black Friday and Cyber Monday last year, making a new breakthrough record (latest-released Globally data); Predicted to reach 5+ million Bitcoin users by 2019; Block chain technology is widely used with bitcoin as the public ledger of transactions; with lots of bitcoin processor company to connect bitcoin internationally for merchants, retailers, etc.

About Limonetik

Limonetik is an on-demand full service provider in the payments ecosystem that proposes to PSPs, Acquirers, International Merchants and Marketplaces to easily access, via a unique API, to a large panel of international payment methods and advanced services from accounting reconciliation, currency conversion and regulation compliance.

In 2015, Gartner awarded Limonetik with the badge of “Cool Vendor” as a result of our ‘one- stop’ innovative and creative technical solutions which make real and positive impacts on our clients businesses.

Limonetik was formed from a “contradictory analysis”: as a result of the complex challenges of continual development of physical and digital PM’s and the difficulty of using them to pay for goods and services online. To solve these challenges, Limonetik simplifies and streamlines the entire payment process, playing the role as the facilitator and integrator for all the parties in the value chain: PSP’s, PM’s, Tier 1 merchants and Marketplaces.

Limonetik provides an on-demand full service offer, including collecting, flow management, reconciliation etc. Limonetik can also create new PM’s, like loyalty program points, prepaid solutions, e-wallets etc; with these, merchants can turn their own payment methods into useful marketing tools to enhance user experiences.

Limonetik’s solutions are global and our reach is International, allowing us to facilitate 'cross- border’transactions in any currency.

In summary, Limonetik offers:

• Direct integration to any Alternative Payment Method globally. With such a solution, dedicated to simplify the acceptance of APMs through a seamless integration in the reservation, payment, and back office systems

• Full financial services – Reconciliation / MI reporting / refund management / fund collection

• Marketplace compliant technical solutions; commission and pay in/ out management – possible for your Hotel Franchise or OTA and Aggregator Third Party partners

In the beginning of 2016, Limonetik has partnered with UATP, the leading airlines travel credit card, which is an opportunity for airlines for a larger consumer base.

To know more: http://www.limonetik.com

Contact: [email protected]

Limon

Apprendix

Reference sources

The App Ecosystem’s New Status Quo

The Paypers

About Payment

Official websites of PSPs, PMs

Datamonitor

Letstalkpayments

MEDICI

Techcrunch

Verdict Financial

The information in this document is for information only. They may be modified without notice and does not represent a commitment on the part of Limonetik. Limonetik disclaims liability for errors or inaccuracies that may appear in this document. This is a non-exhaustive document. Except as permitted, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or otherwise, without the written permission of Limonetik. All product names and logos cited are the property of their respective owners.

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