PrePay Technologies PrePay Technologies: the reason why? Accor Services’ business model Affiliate the Establish Ticket Float Programme Redemption Final Acceptance Corporate Production mgt design Users Network relationships & Delivery 1. Network access 2. Issuer status 3. Transaction and control & competency authorization/ processing PPT integrates 3 key stages … and speeds up in the Value Chain: our time to market for 1. Network access 2. Issuer status Electronic Transactions 3. Transaction authorization / Processing 2 PrePay Technologies: A Prepaid Card Solutions Provider Acquisition in September 2007 A value-added processing platform for Prepaid Card solutions 60 specialist staff dedicated to prepaid Business volume: 400 Million € # transactions: 40 Million 3 3 Expertise: A fully integrated services model Programme design, integration & support • Programme delivery and management • 24/7 support, fully customisable self service options Issuing & processing • In house processing on closed, filtered & open payment networks • MasterCard certified prepaid processor Compliance & regulation • E-Money licence, FSA regulated (UK) • ‘Passported’ across Europe • Compliance & regulatory support (KYC) 4 4 Business Model: A fully integrated services model Set up the Ongoing Business Services International Regulatory Regulatory Transaction Program Program scheme operations Approval & processing design implementation handling (E-Money Support (MasterCard) compliance) Set-up fees Fee per transaction 5 Card cycle Card Issuing Card Card usage Activation Unique expertise in electronic prepaid solutions for all type of requirements & markets Cardholder B2B2E Recruiting through corporate clients Recruitment B2R2C Model Recruiting through retail business channels Closed Redemption within a single retailer Redemption Network Filtered Redemption within a selection of retailers (Loop) Open Redemption within the entire network Disposable Load/activate once, redeem, throw away Card Disposable Account Cycle Reloadable Reload and redeem many times Corporate Central load Top up Origins Consumer High street cash top-up, bank transfer, bank cards, Post-Office,… 7 Compliance and regulation Numerous aspects need to be considered and addressed in prepaid programmes. PPT manage most of these requirements and can advise on many others. 8 8 UK market leader in operating prepaid solutions Market segments: • Retail gift • Corporate incentive • Promotions / Rebates • Payroll • Insurance claims • Corporate Expense • Prepaid Debit / General Purpose/UUB 9 9 UK leader in the Gifting market with an estimated 50% Market share 50 45 • Buyagift • BHS 40 • Habib Bank • P&MM • E-Group 35 • Caffe Nero • Coinstar • Incomm • Blackhawk 30 • Virgin Money • Sainsbury • New Look • Accor Services 25 • Yorkshire Bank • Clydesdale Bank • Capital Incentives • Capital Incentives 20 • Daily Mirror • Daily Mirror • RFU • RFU • Lovefilm • Lovefilm • Family Fund • Family Fund 15 • Ticketmaster • Ticketmaster • Gift Days Out • Gift Days Out • Western Union • Western Union • Western Union 10 • Laura Ashley • Laura Ashley • Laura Ashley • Burton • Burton • Burton • Wallis • Wallis • Wallis • Dorothy Perkins • Dorothy Perkins • Dorothy Perkins Number of programmes under Management programmes Number of 5 • Outfit • Outfit • Outfit • Outfit • Evans • Evans • Evans • Evans • Miss Selfridges • Miss Selfridges • Miss Selfridges • Miss Selfridges • Top Man • Top Man • Top Man • Top Man 0 • Top Shop • Top Shop • Top Shop • Top Shop 2002• Comet 2003• Comet 2004• Comet 2005• Comet 2006• Comet 2007 • Debenhams • Debenhams • Debenhams • Debenhams • Debenhams • Debenhams 10 20m cards under management Capital Incentives Family Fund Comet Debenhams Arcadia Group Bhs Sainsbury’s Laura Ashley New Look Paul Smith Ticketmaster House of Fraser Fat Face Rugby Football Union LOVEFiLM Sainsbury’s Virgin Money Western Union P&MM Daily Mirror Group Clydesdale Bank Yorkshire Bank HBZ Bank 11 11 Major benefits for clients One stop-shopping An integrated offer All types of prepaid programmes Transnational solution across Europe Truly localised teams 12 12 A unique positioning in the value chain Program Compliance design, Physical Acceptance Authorization & Main players integration Distribution network platform Regulation & interfaces characteristics support Prepay Tech. Integrated solution Banks Strong focus on Open Loop Processors Strongly focused on one skill Focused Retailers on Close Loop Potential competitors Telco Emerging player 13 How to leverage PPT expertise & capabilities? Existing Products New Products • Access untapped markets • Cost savings Opportunities • Existing portfolio of • Additional functionalities clients/merchants • Existing models • Speed to market adoption Challenges • Resistance to change • Competitive race Replacement according to Development of value- market needs added prepaid services 14 PrePay Technologies as a strategic tool for Accor Services 43 quintillion wrong options… … 1 right answer! 15.