TiempoCash Exec Summary-America Movil

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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 Mvils 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 Mvil wireless plans. Addresses three pressing needs!

    TiempoCashs 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 Mvil brands own ~50+% of U.S. HMO prepaid market: 25M total subscribers; $25 monthly ARPU.

    Data as of CQ215

    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 Mvil (Telcel)

    US$ 3+ billion in new annual prepaid wireless subscription revenue

    Telcel offers best coverage, contract plans, incentives and handsets

    America Mvil 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 TiempoCashs 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

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=6D4Dj9602dvt3M&tbnid=bzbabU8Kb22UPM:&ved=0CAcQjRw&url=http://gigaom.com/2013/01/07/atts-pantech-discover-smartphone-hot-hardware-for-a-cool-49/&ei=8WYoVJjjHIGxogS0x4DwDQ&bvm=bv.76247554,d.cGU&psig=AFQjCNGFGfaWVE2yrUExS4zlw5CTr_wJrw&ust=1412020330970784http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=6D4Dj9602dvt3M&tbnid=bzbabU8Kb22UPM:&ved=0CAcQjRw&url=http://gigaom.com/2013/01/07/atts-pantech-discover-smartphone-hot-hardware-for-a-cool-49/&ei=8WYoVJjjHIGxogS0x4DwDQ&bvm=bv.76247554,d.cGU&psig=AFQjCNGFGfaWVE2yrUExS4zlw5CTr_wJrw&ust=1412020330970784http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=6D4Dj9602dvt3M&tbnid=bzbabU8Kb22UPM:&ved=0CAcQjRw&url=http://gigaom.com/2013/01/07/atts-pantech-discover-smartphone-hot-hardware-for-a-cool-49/&ei=8WYoVJjjHIGxogS0x4DwDQ&bvm=bv.76247554,d.cGU&psig=AFQjCNGFGfaWVE2yrUExS4zlw5CTr_wJrw&ust=1412020330970784http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=6D4Dj9602dvt3M&tbnid=bzbabU8Kb22UPM:&ved=0CAcQjRw&url=http://gigaom.com/2013/01/07/atts-pantech-discover-smartphone-hot-hardware-for-a-cool-49/&ei=8WYoVJjjHIGxogS0x4DwDQ&bvm=bv.76247554,d.cGU&psig=AFQjCNGFGfaWVE2yrUExS4zlw5CTr_wJrw&ust=1412020330970784

  • The Market Needs TiempoCash

    America Mvil

    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 Mvil 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$

    http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=nrHIe-zxdyjMEM&tbnid=Yhbr5ctd5eemSM:&ved=0CAUQjRw&url=http://www.kmhkreations.net/2011/09/02/how-to-add-a-dollar-sign-to-prices-in-the-rsform-pro-paypal-plug-in/&ei=jwPLU82KJY3uoATs84DYAw&bvm=bv.71198958,d.cGU&psig=AFQjCNG04dpgRYCkVIL5kEKXdlOXGP1L4w&ust=1405900045522992http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=nrHIe-zxdyjMEM&tbnid=Yhbr5ctd5eemSM:&ved=0CAUQjRw&url=http://www.kmhkreations.net/2011/09/02/how-to-add-a-dollar-sign-to-prices-in-the-rsform-pro-paypal-plug-in/&ei=jwPLU82KJY3uoATs84DYAw&bvm=bv.71198958,d.cGU&psig=AFQjCNG04dpgRYCkVIL5kEKXdlOXGP1L4w&ust=1405900045522992http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=6D4Dj9602dvt3M&tbnid=bzbabU8Kb22UPM:&ved=0CAcQjRw&url=http://gigaom.com/2013/01/07/atts-pantech-discover-smartphone-hot-hardware-for-a-cool-49/&ei=8WYoVJjjHIGxogS0x4DwDQ&bvm=bv.76247554,d.cGU&psig=AFQjCNGFGfaWVE2yrUExS4zlw5CTr_wJrw&ust=1412020330970784http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=6D4Dj9602dvt3M&tbnid=bzbabU8Kb22UPM:&ved=0CAcQjRw&url=http://gigaom.com/2013/01/07/atts-pantech-discover-smartphone-hot-hardware-for-a-cool-49/&ei=8WYoVJjjHIGxogS0x4DwDQ&bvm=bv.76247554,d.cGU&psig=AFQjCNGFGfaWVE2yrUExS4zlw5CTr_wJrw&ust=1412020330970784http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=6D4Dj9602dvt3M&tbnid=bzbabU8Kb22UPM:&ved=0CAcQjRw&url=http://gigaom.com/2013/01/07/atts-pantech-discover-smartphone-hot-hardware-for-a-cool-49/&ei=8WYoVJjjHIGxogS0x4DwDQ&bvm=bv.76247554,d.cGU&psig=AFQjCNGFGfaWVE2yrUExS4zlw5CTr_wJrw&ust=1412020330970784http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=6D4Dj9602dvt3M&tbnid=bzbabU8Kb22UPM:&ved=0CAcQjRw&url=http://gigaom.com/2013/01/07/atts-pantech-discover-smartphone-hot-hardware-for-a-cool-49/&ei=8WYoVJjjHIGxogS0x4DwDQ&bvm=bv.76247554,d.cGU&psig=AFQjCNGFGfaWVE2yrUExS4zlw5CTr_wJrw&ust=1412020330970784

  • 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

    marke