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TiempoCash
“Time = Mobile Money”
February 2016
EXECUTIVE SUMMARY
SM
Proprietary and Confidential. Patents Pending.
TiempoCash
Why?
What?
How?
Millions of U.S. Hispanics of Mexican Origin [HMO] want better prepaid wireless plans and handsets
Up to 20 million HMOs eagerly seek a cheaper, more convenient way to send money to Mexico – $27 billion in 2015
America Móvil’s Net 10 and Straight Talk brands are aggressively seeking stickier relationships with wealthier unbanked U.S. HMO prepaid subscribers
TiempoCash is a smart product that allows U.S. HMOs to remit money to Mexico commission-free as part of exclusive America Móvil wireless plans. Addresses three pressing needs!
TiempoCash’s mobile app monetizes wireless carrier voice minutes as stored-value remittances, which are converted into local foreign currency (Mex$)
U.S. Market Opportunity – 2016
TiempoCash
HMO Prepaid Wireless Remitters
to Mexico:
20 Million
Total U.S.
HMO Population:36 Million*
TiempoCash Target Market
• 20M prepaid HMO wireless subscribers who remit money to Mexico
• $10B in annual prepaid wireless plan revenue. Annual ARPU: >$500
• $22B remitted annually
• $325 average transaction; 10-12x annually*35% first generation
Prepaid HMO Wireless
Subscriptions:
32 Million
U.S. Market Landscape Major Carrier Wireless Subscribers & Quarterly Churn
TiempoCash
4.2%
5.0%
5.0%
4.8%
4.1%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
0
20
40
60
80
100
120
AT&T Sprint T-Mobile Tracfone(America
Movil)
Verizon
Contract Prepaid Quarterly Prepaid Churn
America Móvil brands own ~50+% of U.S. HMO prepaid market: 25M total subscribers; $25 monthly ARPU.
Data as of CQ2’15
Mill
ion
s
Mexico Market Opportunity – 2016E
TiempoCash
• 120 million prepaid subscribers: 90% of total wireless subscriptions
– 88% wireless penetration– 39% smartphones
• 60 million belong to America Móvil (Telcel)
• US$ 3+ billion in new annual prepaid wireless subscription revenue
• Telcel offers best coverage, contract plans, incentives and handsets
• America Móvil has 2-3 year lead on AT&T in maximizing Mexico market and cementing lead in U.S. prepaids
America Movil70%
Movistar18%
Iusacell8%
Nextel4%
AT&T Mexico
12%
Carrier Market Share
Market Landscape: U.S. HMO Remittances to Mexico
TiempoCash
0%
20%
40%
60%
80%
100%
Remittances by Dollar Volume
Money Transfer Company Banks Online Other
• $29B in 2016E
• 97% via legacy money transfer models
• 80% from un- and under-banked U.S. remitters
• Average annual transaction volume (2015E): $3,500 per remitter 10+ transactions/year @
$325/transaction
• Average fees: commission plus FOREX: $10-$20 per transaction
HMO Subscriber Value Proposition:60% less per month for TiempoCash’s life-changing benefits
TiempoCash
Old Model
TiempoCash Model
COST
• Prepaid phone, plan & pre-paid minutes• $300 - $1,000
annually• Remittance, check-
cashing & top-up fees• $300 annually
~$80/month• “Dumber” handset;
limited Internet access
COST
• Prepaid phone & plan• $600
• Remittance fees• $0
~$50/month
• Better voice plans; data options; smartphone and Internet access
Money Transfer Agent/Bank
U.S. MEX
ORExclusive U.S. Carrier
Partner
Provisional Patent-Pending: : 62/173320
The Market Needs TiempoCash
America Móvil
Focus group suggest immediate jump in U.S. HMO prepaid customer base
Creates and owns new remittance transfer channel
Zero to minimal compliance burden
New cross- and upselling avenues within stickier cross-border customer relationships
High-profile financial inclusion benefits
TiempoCash
TiempoCash meets critical needs of America Móvil and HMO consumer
HMO Prepaid Subscriber
Commission-free mobile remittances via smartphone
Superior prepaid plan
• Includes smartphone/4GLTE
• Better, cheaper plans for calls and texts between U.S. - Mexico
Check-scanning feature in app: No visits and commissions to check-cashing or U.S. MTOs
Biometric capability
3) U.S. customer transfers minutes to TiempoCash via proprietary app
1) U.S. prepaid customer signs up for TiempoCash prepaid account with America Movil subsidiary, e.g., Net 10 and/or Straight Talk and purchases minutes
2) Carrier credits U.S. customer account with equivalent minutes through TiempoCash
5) Mexico customer receives Mex$ at bank/payout partner location via TiempoCash app or SMS message
6) TiempoCash pays commission to payout partner after funds are disbursed
TiempoCash
Provisional Patent-Pending: 62/173320
4) TiempoCash converts minutes to Mex$ and credits Mexico TiempoCash prepaid or contract subscriber with Telcel
Mex$
Technology
App architecture/flow and stored-value remittance and conversion model
Included are:
– Wires, spec doc and DB schema / API Docs
– Check-scanning feature
– Security, transparency and compliance built-ins
TiempoCash
Utility Patents Pending
Competition• No direct competitors offer commission-free transfers by
monetizing mobile minutes as stored-value remittances
• Indirect Competitors
– Bank & Agent-based MTO (Western Union, et. al.) – 97% of
market
– Online and mobile money transfer – 3%
• Xoom
• MoneyGram.com
• Western Union.com
• Our biggest competitor is status quo!
• We provide incentives to change HMO prepaid wireless and
money transfer consumer behavior
TiempoCash
Competitive Advantages• Unique model with unique value proposition
– Incentivizes HMO prepaid subscriber migration with no-cost remittances
• Remittance model minimizes America Móvil compliance obligations
• First to market will build and sustain brand loyalty, financial inclusion
– Ancillary marketing opportunities for carrier and benefits for HMO consumer
• Barriers to Entry
– Top-rated carrier partners and plans will deter competition
– Carriers won’t build themselves – won’t become Money Services Business
(MSB)
– IP Protection: Business Method & Utility Patents Pending
• Scalable to all developing countries
– $55B+ in 2015E U.S. remittance outflows to developing countries
– $450B in 2015E global remittances to developing countries
TiempoCash
Current TiempoCash Team
• TBD – Chief Compliance Officer
– Top industry compliance “guru” prepared to accept post-funding offer.
• Larry Delaney – Co-Founder & CEO
– Experienced strategic Investor Relations counsel with extensive public company and private equity experience.
TiempoCash
• Elias Mercado – Co-Founder & COO
– 20-years’ experience in money transfer, telecom and emerging markets. Former Head of Sales and Agent Network Management at Ria Financial. Former COO, Transnetwork, provider of solutions for mobile money services. VP Business Development, Western Union/FDC.
• TBD – Chief Technology Officer
