The Future of International Payments

Michael

• Mergers & Acquisitions for

WPP and News Corp

• MBA from INSEAD

• Accenture & ADL

About me…

Small World – Founder (2005 – 2012)

• Inception to Top 10 offline global money transfer business

• 18 Countries, 8.4 m pa transactions and $4.5 billion per annum volume

• Raised $50m+ equity and debt funding.

Azimo – Founder (2012 – Present)

• World most comprehensive digital payments business: 198+ countries

• Backed by eVentures, Greycroft and TA Ventures ($10m+ capital)

• Payment advisor in PE and consulting industry

International Payments

Ecosystem (Simplified)Hint: it’s very complicated

Payment Networks Money Transfer Ops Digital Wallets FX Brokers Protocols

Payment ProcessorsTelcos

Internet Giants eCom Retailers Messenger Banks StartUps

The Volume and volume of cross-border payments are

vast and growing fast

Market Volumes

Global $550bn pa

European $102bn pa

USA $50bn pa

Top European Volumes

Germany $15bn

France $12bn

Italy $10bn

Spain $10bn

UK $8bn

Highly fragmented

Western Union c. 15% share

Global and EU consumer remittance flows are huge

and growing at 10%

x9+5%+ GDP

$1bn

“The true size, including unrecorded

formal and informal flows, is believed to

be significantly larger”

Largest remittance market in region: one third

Russia, one third EU and one third ROW

Macroeconomic Opportunity = 3 Global Megatrends

Internet

and Mobile

Ubiquity

Bitcoin and

the

blockchain

The Rise of

Social

Internet

and Mobile

Ubiquity

Bitcoin and

blockchain

The Rise of

Social

5.6 Billion Smartphone Subscriptions by end of 2019

Ukraine

• 90% Mobile

• 31% Smartphone

(100% up YoY)

Mobile drives financial inclusion: Case Study

Internet

and Mobile

Ubiquity

Bitcoin and

the

blockchain

The Rise of

Social

“There’s going to be an opportunity over the next five

years or so to pick any industry and rethink it in a

social way… we think that every industry is going to

be fundamentally re-thought and designed around

people.”

World Map of Social Networks – July 2014

Country

FB Users

Millions

% Pop

FB Users

1 United States 166 53%

6 United Kingdom 33 52%

9 France 26 39%

10 Germany 25 31%

11 Italy 23 38%

13 Canada 18 53%

15 Spain 18 37%

17 Japan 17 14%

19 Malaysia 14 47%

20 Taiwan 13 57%

Country

FB Users

Millions

% Pop

FB Users

3 Brazil 63 5%

4 Indonesia 59 30%

5 Mexico 51 21%

7 Turkey 38 33%

8 Philippines 32 40%

12 Argentina 30 29%

14 Thailand 20 48%

16 Colombia 18 26%

18 Bangladesh 17 38%

There are 1.3bn+ Facebook users with huge populations in

both send and receive countries

Send Receive

WhatsApp has 600m Active Users Now

FB Messenger payments are coming soon…

Social

Marketing

New Support Channel

Identity/

KYC

Social Proof

Broadcast

Social has huge dimension to add to payments

Social for Identity: KYC and Compliance

YES MAYBE NO

Velocity

Blacklist / PEPs/

Sanctions

Blacklist / PEPs/

Sanctions

Device ID

Social Profile

Internet

and Mobile

Ubiquity

Bitcoin and

the

blockchain

The Rise of

Social

The block chain and distributed general ledger has the

potential to change everything

Protocols

Predictions

• Wholesale impact will happen

first

• Anonymity will be removed

(Bitcoin too sullied to survive)

• Consumer wallet adoption will be

limited

Stellar

Then Now

Expensive, Inconvenient

and High Exception

Low Cost, Easy,

and Efficient

Azimo is the Re-Imagination of Cross Border

Consumer Payments

2%9%

Disrupt the $500bn money

transfer industry by

focusing on the customer

and using technology to

bring down prices.

Build a $1bn business.

Our mission

3,762

Corridors

300,000+ Payout LocationsLargest digital only network

5,000,000,000 Customers ReachableVia Cash Payout and Direct to bank account services

6 Payout

Methods

73 Currencies 198+ Receive Countries

The scale and reach of the Azimo

Platform

To Mobile (Wallet

TopUp)Acqrs/Gatewys

Mobile

Application

Internet

Application

Automated KYC, Compliance, Risk

To Cash

Home Cash

Delivery

Bank Network

To Account

Bill/Healthcare

PaymentsFunding

Alt Payments

Internet, Cash Deposit, Debit Card, APM

Compliance BlacklistsRisk Engine

API

SFTPTransaction

Engine

Application

Layer

Marketing, Reporting and CRM System

Global Network

Fee & FX

Margin

Multi Channel Support Outbound Comms Deep Analytics Real time CPC, GDN Social, Affiliate, ATL

Failover

Monitor

Live

Pending

Operating model: simplifying the complex

multi-relationship remittance processes

To Mobile (Wallet

TopUp)Acqrs/Gatewys

Mobile

Application

Internet

Application

Automated KYC, Compliance, Risk

To Cash

Home Cash

Delivery

Bank Network

To Account

Bill/Healthcare

PaymentsFunding

Alt Payments

Internet, Cash Deposit, Debit Card, APM

Compliance BlacklistsRisk Engine

API

SFTPTransaction

Engine

Application

Layer

Marketing, Reporting and CRM System

Global Network

Fee & FX

Margin

Multi Channel Support Outbound Comms Deep Analytics Real time CPC, GDN Social, Affiliate, ATL

Failover

Monitor

Live

Pending

Leveraging new technology

Foreign

Exchange

Risk and

Compliance

Funding

Disbursement

Marketing and

CRMReporting

Period Jan. 2013 – July 2014

Traction - Weekly Visitors

Up to

7xMore traffic

Traction - Transactions

Dec

-12

Jan-1

3

Feb-1

3

Mar

-13

Apr-

13

May

-13

Jun-1

3

Jul-1

3

Aug-1

3

Sep

-13

Oct

-13

Nov-

13

Dec

-13

Jan-1

4

Feb-1

4

Mar

-14

Apr-

14

May

-14

Jun-1

4

Jul-1

4

Up to

10xMore transactions

*Estimated

Up to

14xMore Volume

Traction - Volume

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14*

Enabling Global Commerce

“If the transaction costs on remittances

worldwide were cut from where they are today at

around 10% to an average of 5%....

…it would unlock $15bn a year in poor countries”

Population: Adults

5.4 BillionPopulation: Banked

2.3 BillionTarget

2.1 Billion

International Payments are where it’s at…

Massive and Fast Growing Market Opportunity

Next stage in the evolution of digital: money

Slow legacy players = disruption potential

Room for new $1bn companies

Potential to change the world for the better

www.azimo.comhello@azimo.com