Margento overview

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© 2009 Margento B.V., Netherlands.

WWW.MARGENTO.COM CONFIDENTIAL INFORMATION

MargentoOverview

CONFIDENTIAL INFORMATION© 2009 Margento B.V., Netherlands.

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Mobile phones are the most common electronic device in the world – 7 billion+ phones.

With Margento the mobile phone becomes all-in-one instrument, enabling consumers to

collect and redeem bonus points,

pay for products and services,

top up the balance on pre-paid phone accounts,

redeem coupons,

send and receive funds,

use mobile tickets, and

buy and send electronic gifts

Margento improves consumer purchase experiance, security, and reduce costs

Majority of transactions are still not electronicMost population is still unbankedCash still dominates consumer payments

Margento has potential to overcome the barriers in enabling mobile phone to become the major device and means for consumer payments.

Margento – delivering the future of mobile transactions solutions NOW


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Margento is comprised of

Margento is comprised of

Margento SolutionsMargento Solutions

The richest portfolio of powerful mobile transaction solutions based on a single platform.

The richest portfolio of powerful mobile transaction solutions based on a single platform.

Margento TechnologyMargento Technology

Patented Data Over Voice technology

Complete line of POS terminals Margento Mobile Transactions

Platform


Complete line of POS terminals Margento Mobile Transactions

Platform

SCENE


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Margento Solutions

Mobile Payments

ICPSMobileRecharge

Bonus &Loyalty

MobileGifts

MobileCoupons

MobileTickets

MobileRemittanc

e


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Margento Technology

Complete line of POS terminals

Reliable & versatile identification and communication equipment

POS Terminals Margento Platform

Margento Mobile Transactions Platform

Proven & flexible end-to-end software

Data Over Voice / Near Field Communication


Unique & innovative technology that makes Margento special


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Margento Platform


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Terminal specifications:

• NFC reader

• DOV enabled

• Certifications

• EMVCo, EMV Contactless lvl 1

• EMVCo, EMV Contactless lvl 2

• ISO14443 A/Mifare in B, Felica

• Mobile NFC

• GUI Elements

• LED indicator

• Graphical LCD display

• Available 3rd Party Connectivity

• 2 USB connections

• 1 Ethernet connection

• 1 RS-232 connection

Margento’s nPOS terminal is used for all kinds of proximity transactions.

Microphone for DOV

Contactles readerfor NFC

Under the hood...


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Margento for all retail location types

Mobile Points of sale

Automated Points of Sale

Traditional Points of sale

• Vending machines • Parking meters • Amusement (video,

gaming)• Ticket machines

(bus, train)• Car wash

• Restaurants, Bars• Home delivery (z.B.

Pizza)• News stand/Kiosk • Ticketing (e.g. ticket

window)• Taxi

• Classic retail shops• Pharmacies• Convenience stores• Supermarkets• Petrol Stations

Internet merchants

• Webstores• Pizza delivery


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Margento DOV technology

Margento uses the voice channel of a mobile phone to transfer different types of transactional data from a point of sale (Margento Terminal) to authorization facility for approval of payment or transaction.

Margento technology is patented; PCT patent is published under Int.pub.num WO 02/33889

Speech

Person 1

Mobilephone Mobile operator Person 2

Mobilephone

Speech

Transmission data over the voice channel system GSM

Margento center

Point of sale

Mobile operatorMobilephone

Voice

modulated

data signal

Margento terminal


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Margento the most customer-friendly solution

Works with every existing mobile phone

Business solution independent of MNO,and phone manufacturer

Secure: Mobile does not store user- or account data (name, account, PIN, etc.)

User- and account data is not disclosed to the merchant

No software download on phone necessarry; no phone hardware change needed

Anybody who can make a call, can use Margento

Compatible with all existing & future phones


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Margento Technology has evolved; additional terminals developed...

Start early 2000’


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Margento Intellectual Property

• Margento is a registered Trademark

• Margento has filled numerous patent applications, including patent for Margento DOV technology has already been granted in more than 50 countries:• "System for payment data exchange and payment terminal device used therein" filed under

PCT international application number PCT/IB2000/001495, publication number WO/2002/033669 .

• »Payment terminal device for payment data exchange« filed under PCT international application number PCT/IB2002/001223, publication number WO/2003/088165 .


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Margento is ready today!

MARGENTO DOV technology2009

READY FOR

7 billion+ phones globally

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Margento Procedures and Examples of Use


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Payment steps (mPOS)

Enter PIN

**** 18050 €

Enter Amount Transaction

Printing

MERCHANT USER

PIN optional, up to Issuer of the

account


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Margento Top Up (Voucher with Code, GPRS)

Customer pays the retailer for the desired amount of

airtime.

Retailer enters Amount, or predefined

denomination of TopUp into Margento terminal

Terminal sends request for

TopUp to MNO.

Voucher with Code is printed.

Customer uses Voucher to TopUp the prepaid

account.

50 €Enter Amount

CUSTOMER RETAILER

50 €Enter Amount

CUSTOMER

12 €Recharge

Sending

Printing

1234


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Margento Automatic Top Up

Customer dials the Margento access

number.(In case customer wants

to recharge 3rd party mobile phone - number

is entered)

Customer places the phone against the

Terminal and waits until transaction is finished.

Margento Terminal prints out two

transaction receipts, for customer and retailer while the customer’s prepaid account is

automatically credited.

Printing

Customer pays the retailer for the desired amount of

airtime.

Retailer enters Amount

50 €Enter Amount

CUSTOMER RETAILER CUSTOMER

12 €Recharge

180Transaction


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Collect points/bonus via Mobile

Customer makes a purchase (Cash,

Plastic, ...)

Customer dials the Margento Center

(authorisation facility) & taps the

Terminal.

Purchase date is collected and

registered in the bonus & loyalty

program

180

Transaction

CUSTOMER


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DOV

**123

NFC enabled smartphone

Smartphone with our App installed

Regular Classic phone

1. Step Initialize transaction by either:•Enabling NFC•Starting Margento App•Dialing the short No.

3. Step Specify the coupon to be redeemed.

4. Step Receive redemption receipt.

2. Step Tap phone against the Terminal.


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Overview: Security

• All transactions are processed in real-time• Each transaction is based on white / black lists review• Enables centralized management of credit limit

• Data encryption (like SSL) based on Elliptic Curve Cryptography (ECC) for communication between terminal and Center

• IPsec VPN tunnels and secure dedicated "leased lines" for communication between the components of Margento Center , and other 3rd party platforms

• User identification via SIM (MSISDN), user authentication via PIN• SIM card is difficult to clone, cloned SIM can not coexist to the original SIM in the mobile network

• Merchant authentication based on PKI• Terminal is is identified thru a unique preloaded terminal ID (TID) • Two Ways PKI-based authentication during "secure session setup": identity of the terminal is

verified by Margento Center; Margento Center identiity is verified

• PIN Encrypted by standardized algorithms: • DES (ANSI X3.92, X9.24), 3DES (ANSI X9.52), ECDSA (ANSI X9.62); ECDH (ANSI X9.62)• PIN at the terminal is never associated with payment account details

Secure communication

User authentication

On-line Authorisation

End-to-end encryption

MerchantAuthentication

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Margento Live


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• 2 Mio. inhabitants

• 750.000 users >40% of the population

• 10.000 POS are equipped with terminals

• 1.5 Mio. payment transactions per month


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Issu

ers

P

rocess c

en

ter

Netw

ork

Bank

MNO

MNO

Bank

MNO

Automated POS

WEB store

Classic POS


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Apparel Group:

• Start in May 2010 with 36 brands

• Over 600.000 registered customers from 190+ countries

• Bonuses can be collected and redeemed in +330 retail shops

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• Mobily customers can redeem points collected through airtime usage.

• Points can be redeemed at 10.000 POS for instance at mall stores like Replay, Guess, supermarkets etc.

• Number of transactions per month including Loyalty, Bill Payment and Prepaid Recharge TXNs app. 14 mio.


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Main benefits of the system are:•elimination of paper vouchers, along with all the trouble related to acquiring them•increased visibility and transparency over the use of vouchers•online checking of used and remainingvouchers

No. of Active Terminals:• 1400+No. of Restaurants in theNetwork:• 1000+Number of Registered Users:• 120 000+


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Key Statistics•close to 400 000 Urbana cards in use•in excess of 100.000 daily validations•close to 60 million transactions•processed annually

The System in Numbers:• entire public transit fleet of several hundred vehicles entirely equipped with vPOS terminals• close to 200 mPOS equipped points-of-sale offering contactlesscard recharge• 40 highly-capable Self-Service Kiosks conveniently placed within the city perimeter• over 140 TaPOS equipped parking machines, enabling both card and mobile phone payments


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Prepaid Aufladung bei T-Mobile

Live Show Case

Shops, Filling Stations & Convenience stores


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