BillMyParents Investor Presentation January 2012 (OTCBB: BMPI)

January 2012

Investor Overview

2 CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA

Safe Harbor - Forward Looking Statements

This presentation contains certain forward-looking statements that involve risks and uncertainties. Such forward-looking statements include statements regarding attempts to identify new strategic opportunities which may include a strategic transaction, plans regarding partnering activities, product pricing, financial projections. Such statements are only predictions and the Company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include the risk that the Company may not be able to identify acceptable strategic opportunities or conclude any strategic transaction which it does identify, the risk that products that appeared promising in early use do not demonstrate the same utility in larger-scale uses, the risks associated with the Company's reliance on outside financing to meet its capital requirements, and the risks associated with the Company's reliance on collaborative partners for shipping. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks. These factors and others are more fully discussed in the Company's periodic reports and other filings with the Securities and Exchange Commission.


Corporate Overview

• BillMyParents, Inc. (OTCBB: BMPI) provides payments solutions to teens, young adults and their parents

• The Company’s primary product offering is a prepaid reloadable

MasterCard with parental features including monitoring, reloading remotely and lost money recovery

• Less expensive alternative to cash, credit or debit cards

No credit / overdraft fees and no bank account fees

• Subscription based revenue model with a monthly account maintenance fee in addition to card load fees and ATM access fees

• The prepaid card market is rapidly growing

Expected to grow from $165 billion to over $421 billion in the next two years*

*Mercator Advisory Group


Executive Team

Mike McCoy – CEO and Chairman • Former President of Wells Fargo Consumer Credit Cards • Led team of 5K employees, who managed $20B, representing 8.5M customers • Recognized leader in financial services industry • Industry contacts and strategic relationships

Jim Collas – Founder, Technology, and Operations • Former CTO of Gateway Computers (7 years through IPO) • Launched over $28B in consumer products • Expertise in user experience and product development • Extensive experience in early stage ventures

Jonathan Shultz – CFO and Treasurer • Seven year veteran Ernst & Young; CPA, CMA and CFM; Masters in Finance • Significant international business experience, speaks four languages • Extensive experience in mergers, acquisitions and going public transactions • Expertise in Information Technologies


Board of Directors

• Isaac Blech, Director – Founded/Financed companies creating over $35B in market value

Founded and financed some of the world’s leading companies in the biotechnology field including Celgene , Nova Pharmaceutical, Genetics Systems, ICOS, and Pathogenesis, creating in excess of $35B in market value. More recently Mr. Blech has become the lead financier and largest shareholder in companies including Bill My Parents Inc., Premier Alliance Group, Stratus Media Group, ContraFect Corporation, Cerecor Inc., and Medgenics.

• Cary Sucoff, Director – Over 28 years of securities industry experience

Has over 28 years of securities industry experience. Mr. Sucoff currently serves on the Board of Directors of Contrafect Corp., Cerecor Inc., Premier Alliance Group and American Roadside Burgers. Member of the Board of Trustees of New England Law/Boston for over 20 years and Chairman of the Endowment Committee. B.A. from SUNY Binghamton (1974) and a J.D. from New England School of Law (1977) where he was the Managing Editor of the Law Review and graduated Magna Cum Laude. Mr. Sucoff has been a member of the Bar of the State of New York since 1978.

• Patrick Kolenik, Director –Former CEO of Sherwood Securities Corp.

Has over 40 years of securities industry experience. Formerly CEO of Sherwood Securities Corp., one of the largest securities trading firms in the U.S. Mr. Kolenik has been involved with more than 200 public and private financings. Mr. Kolenik currently serves on the Board of Directors of Premier Alliance Group, Stratus Media and American Roadside Burgers.

• ___________, Director -


MARKET OVERVIEW


What is a Prepaid Card?

• MasterCard/Visa/Amex

• Not a credit card

• No linked bank account

• Spend what’s loaded

• Reload when needed

• Online account setup Use

Repeat

Load


Reloadable Prepaid Cards Replacing Cash

Prepaid Card Loads in $Billions

Use

Repeat

Load

Mercator Advisory Group: Seventh Annual Prepaid Card Forecast


Teen Market is a Substantial Opportunity

• 43 million teens and tweens*

• Transition is at the inflection point

• No established major brand

*U.S. Census 2010: Population ages 10 to 19


Better for Teens Than Cash, Credit, or Bank Cards

• Parents can monitor teen spending

• Parents can load money remotely

• Teens can shop online without parents card

• Lost money can be recovered

• No credit or overdraft risks

• No bank account hassle or fees


Optimized for the Parent/Teen Relationship

• Monitoring • Communication • Guidance

• Freedom • Communication • Learning


PRODUCT AND FEATURES


Features Optimized for Teens and Parents

• Real time SMS alerts

• Lock/Unlock account

• Emergency loads

• Simple allowances

• Extended family

support


Family Enabled Group Gift Card (Patent Pending)

Mom and Dad Mary - Sister Grandma and Grandpa Aunt Jane & Uncle Joe Uncle Eric

TOTAL:

$100 $25 $50 $50 $25

$200


Future Parent Reimbursement Feature (IP)


One-Click-and-Your-In Movie Tickets

• At theater location

• GPS auto location

• One click purchase

• No waiting in line


Future Teen/Parent Collaborative Shopping (IP)

• Comparison shopping

• Shared screens

• Teaches smart spending

Share & Discuss


Teen Spending Management System


Spend Smart

92.3% of parents agreed that the BillMyParents card helps teens develop smarter spending habits*

“I love getting the text alerts. I can tell where she is and how much she is spending!” - Kelly L.

“Now he doesn’t have to tell me what he is up to because

he knows I already know.” – Kim B.

“The Lock/Unlock feature is very simple to use and makes me feel that I am in control.” – Becky P.

“The family and friends support is a nice way for family

members to give her money for gifts.” - Heidi D.

Extensive User Testing and Feedback

* Internal survey of Vocalpoint members participating in BillMyParents pilot


BUILDING BRAND AND SALES MOMENTUM


Effective Marketing and Sales Channels

Brand Awareness

Strategic Partnerships

$$$

$$$

Retail Sales Channels

Online Sales Channels


Cost Effectively Building Brand Awareness

• Buzz Marketing

• Word of Mouth

• Social Media

• Mom Bloggers

• Earned PR

• Sponsorship

• Strategic Partners

“Priceless” Campaign

Mommy Blog Convention

Rob Dyrdek

P&G Word-of-Mouth Agency

MTV Fantasy Factory

ESPN Street League

Parents Teens


BMP/MasterCard Joint “Priceless” Online Ad Campaign

• $1M marketing program

• 70 million consumer impressions

• Developed and funded by MasterCard

• Approved use of “Priceless” campaign

• BMP considered leader in Teen prepaid*

* According to website traffic as measured by compete.com


Talk Radio Host Endorsement – Dr. Laura

billmyparents


GREEN IS BAD.

PLASTIC IS GOOD.

Buzz Marketing Campaign


Buzz Marketing Campaign

• 4,000 mom bloggers

• Plastic Is Good website

• Mock demonstration

• Booth and luncheon

• Recruited bloggers

Mom Blogger Conference


Word-of-Mouth Marketing Campaign

• P&G advertising agency

• Proven word-of-mouth marketing process

• Advocacy network

• 500K influential moms


Rob Dyrdek - BillMyParents Ambassador to Teens

• Teen celebrity • Facebook – 2.7M • MTV show • ESPN events • 10M+ viewers

http://www.facebook.com/BillMyParents?sk=app_226353570715334


Building Brand Awareness Momentum

FROM 21,000 TO 770,000 UNIQUE WEBSITE VISITORS

Source: compete.com website analytics


Catching up to the Billion Dollar Prepaid Brands

$0.5B to $1.4B Market Cap

$1.5B to $2.4B Market Cap

Private Company

WEBSITE VISITORS

Source: compete.com website analytics



Brand Awareness

$$$

$$$




Brand Awareness

$$$

$$$


Banner Ads

Search Engines

Affiliates

Social Media


Proven On-line Sales Channel

• Internal expertise in direct sales marketing

• Currently signing up 500+ cards per day

• Potential to ramp up to 1,000 cards per day in 90 days and several thousand cards per day in 6 months*

• Target of 1 million cards in 24 months

* Internal assumptions based on pipeline of potential affiliate partners



Brand Awareness

Strategic Partnerships (Launch 2012 back-to-school)

$$$

$$$

Retail Sales Channels (Launch 2012 holidays)



FINANCIAL OPPORTUNITY


Unique to BillMyParents

Revenue Model

• $3.95 monthly service fee

• Parent load fees

• Transaction interchange fees

• Family and friend load fees

• Family promotional channel

• Teen peer-to-peer marketing channel


Metrics based on installed cards base*

100K Cards

250K Cards

1M Cards

2M Cards

Revenues/Year $11M $28M $120M $240M

GP$/Year $7M $18M $66M $132M

Potential Market is 43 million teens and tweens**

* This example table is based on BillMyParents internal cost models and is not meant to be used as a forecast.

** U.S. Census 2010: Population ages 10 to 19


Future Milestones

New CEO Announcement

MasterCard Mobile Payments Pilot

March October November December January February

2011 2012

Holiday Brand Awareness Push

Begin Major PR/IR Push

PR on Back-to-School Partnerships

Initial 2012 Brand Awareness Push

Card Ramp Announcements

IR Focused Card Ramp IR Consumer PR


Select Industry Acquisitions and Valuations

• $0.5B to $1.4B market cap • IPO in October 2010

• $1.5B to $2.4B market cap • P/E Ratio = 50 to 80 • As high as $665 per user

Example of Potential Acquirers Major Stock Exchange Potential


Summary

• Teen prepaid market poised to accelerate

• BillMyParents is considered a leading brand

• Gaining brand marketing momentum

• Direct response plans ramping as planned

• Clear path to capitalizing on a growing market


Q & A


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Investor Relations

BillMyParents Investor Presentation January 2012 (OTCBB: BMPI)