1. Distra:
Empowering
Mobile Payments
February 2012
1

2. In the payments world increasingly there is a divide….
Old Payments World New Payments World
•Traditional players: •New players :
banks, processors, schemes Google, Paypal, Facebook
•ATM, POS, ACH •Mobile, Social
•Batch Processing •Real-time Processing
•Security & Reliability •Flexibility & Innovation
•Convergence & Collaboration
© 2011 Distra Pty Ltd. All rights reserved. 2

3. There are 4 drivers contributing to this divide
•Faster Payments •Smart Phones
•Dodd Frank/Durbin •NFC/Secure
•SEPA Element
•PSD •2D
•Phishing attacks on Barcodes, Tokens
the rise •Social Media
•Cloud, SOA
Regulation
Technology
& Fraud
Customer
New Entrants
Expectations
•Non-bank Players - •Customised
Paypal, Google, Fa Offerings
cebook •Real-time
•New Markets – •Rich Experience
China, India, Latin •Relevant & Timely
America, Russia Offers
3
© 2011 Distra Pty Ltd. All rights reserved. 3

4. The mobile payments opportunity is huge
•4+ billion mobile phones globally
•Global mobile payment transactions to reach $1.13
trillion in 2014 from $37.4 billion in 2009
•Number of mobile payment users will reach 1.06 billion
by 2014
•NFC transactions to reach 35.6 billion in 2014 from 861
million in 2009
•Mobile bill payments forecast to grow 377% 2010-2013
•Biggest growth in mobile payments coming from non-
bank providers
Sources: IEMR Global Mobile Payment Market Forecast 2011
Aite Group
© 2011 Distra Pty Ltd. All rights reserved. 4

5. Mobile is changing the way payments
services are delivered
Business (bank/merchant)
to Consumer
• Mobile Banking
• Mobile Wallets
Person to Person
• Receipts
•Mobile Funds Transfer
• Offers, Loyalty & Couponing
•Eg: Pingit
• Contactless Payments
• Eg: Google Wallet, Kaching
Payments Anywhere Anytime to Anyone
Smart phones, mobile wallet & payment apps, NFC devices and 24/7 connections
are transforming the way we access, pay and save
© 2011 Distra Pty Ltd. All rights reserved. Diagram Source: KPMG Mobile Payments in Asia Pacific 2007 5

6. Mobile payments require collaboration across
the value chain…
Between traditional and new players
Regulatin
g Body?
Source: Mobile Payments in the United States Mapping Out the Road Ahead , Federal Reserve Bank of Boston ,
Federal Reserve Bank of Atlanta, March 2011
© 2011 Distra Pty Ltd. All rights reserved. 6

7. Google Wallet is an example
“We’ve joined with leaders in the industry to
build the next generation of mobile commerce.
With Citi, MasterCard, First Data and Sprint
we’re building an open commerce ecosystem
that for the first time will make it possible for
you to pay with an NFC wallet and redeem
consumer promotions all in one tap, while
shopping offline.”
Stephanie Tilenius, Vice
President, Commerce and
Payments, Google
• Collaboration between new and traditional players - Google, Citi,
MasterCard, Sprint and First Data
• Announced in May 2011
• A smart, virtual wallet that stores payment cards, offers, and more
on consumers’ phones and online
© 2011 Distra Pty Ltd. All rights reserved. 7

8. V.Me is another example
“Visa’s agreement with Intel paves the
way for financial institutions around the
globe to offer their account holders
mobile payments and financial services
using innovative mobile devices and
technologies designed by Intel.”
John Partridge, President, Visa
• Collaboration between Visa and Intel
• Announced in late 2011, launches in 2012
• A standardized payment application that allows the end user to
download Visa payment information straight onto a mobile device
in a secure manner
• Instead of typing in a 16-digit account number to complete a
transaction from a smartphone, users can simply sign into the V.me
digital wallet with a user name and password to buy something
© 2011 Distra Pty Ltd. All rights reserved. 8

9. A smart phone app is just the beginning
Mobile payments requires a high performance back-end
processing system
• Real-time authentication, validation, routing & settlement
•Process transactions in seconds
• 24/7 availability
•In-built fault tolerance
• Scalable
•Process high volumes of micro-payments simultaneously
• Flexible
•Capture financial & non-financial data to enable customized offers
& coupons
•Open, interfaces with multiple systems, applications and/or
devices for ease of collaboration
•Enable rapidly deployment of new services
• Secure
•Tokenized security
The Distra Universal Payments Platform (UPP) is an enabler
for P2P and B2C mobile payments applications and services
Combines flexibility and innovation with performance and security
© 2011 Distra Pty Ltd. All rights reserved. 9

10. The Distra UPP provides a flexible and reliable back-
end for mobile payments processing
Mobile
Wallets Paypal Google Visa ISIS
Channels
EFTPOS ATM Internet Social media Mobile Kiosk Legacy
E
Value-add
P
Services
P2P Payments Transaction Plans Endpoint Builder & Card Management,
Authorization Entity Builder GUI Merchant Accounting
Offers – New Interfaces &
Reversal Business Models
Loyalty without Coding Back-end
Program Completion … Systems
Session
Fraud Manager Mobile Top-up
Prevention
Internal
Mobile Vocabulary Offload
Virtual Provisioning… DB
Cards
Tokenized
Security Distra Universal Payments Platform
Routing
Rules Analytics &
Low-cost Infrastructure E Reporting
P
VISA Mastercard AmEx ACH UK FP STAR PayPal …
© 2011 Distra Pty Ltd. All rights reserved. 10

11. Distra is enabling mobile payments: Barclays
Pingit (P2P)
•Barclay’s P2P mobile payments app for Android,
Blackberry & iPhone
•Launched in UK in Feb 2012
•Enables Barclays 11.9M customers to make payments
instantly via mobile without account details (up to £300 a
day)
•Transfers to anyone with a UK-based mobile phone and
a current account with any UK bank
• In 2007, VocaLink, a payments processors in Europe, entered into
an agreement with Distra to utilize its unique real-time, high- "Barclays' Pingit could
revolutionize the way
reliability, high performance payment solution as a core people send and
component of its Faster Payments Gateway (FPG) receive money. …it is
free, quick, convenient,
• Faster Payments is “same day” (real-time) clearing requirement, secure, and easy to
legislated by the U.K. Government for various ACH payments. use. You can send and
VocaLink was responsible for providing the network for major receive money in
clearing banks, other financial institutions and corporations seconds without having
to enter account
• Distra delivered its real-time platform both to VocaLink and major details. I'm sure we'll
soon be wondering
U.K. Banks including Barclays what we did before it."
• The FPG, powered by the Distra Universal Payments Platform
(UPP), processes PingIt transactions in as little as 30 seconds so
that money is moved instantly
Antony Jenkins, Chief Executive Barclays
© 2011 Distra Pty Ltd. All rights reserved. Retail and Business Banking 11

12. Distra is enabling mobile payments: Barclays
Pingit (P2P)
Pingit
Paypal Pingit Corporate Portal
ISO858 VocaLink Domain
3
Barclays Central
Infrastructure
ISO858 Voca
3
ISO2002 Payment ISO858
2 3
Proprietar Switch Direct
y (Distra) ISO858 Corporat ISO8583 Batches
Faster Payments ?
3 e Access
Central Platform
ISO858
(DCA)
3 (Distra)
Bank
Bank
Bank
Bank
VocaLink
Settlement
© 2011 Distra Pty Ltd. All rights reserved. 12

13. Distra is enabling mobile payments: Asian
e-Payments Provider (B2C)
• Leading payment gateway in Singapore provides
merchants with a service to facilitate their
customers to make online payments via credit card
and/or direct debit via internet banking
• It is enabling this service for mobile and tablet so
that merchants’ customers are able to easily
complete e-commerce transactions from their
mobile devices
• In 2009 Distra entered into an agreement with a leading payment
gateway in Singapore to provide a secure, flexible, scalable payment
platform, capable of processing high volumes of payment transactions
at high speed and with no downtime.
• The Distra UPP offers the e-payments provider flexible and configurable
delivery channel interfaces that enable rapid on-boarding of payments
types, regardless of the messaging type, device or source system.
• In 2012 Distra is working with the gateway to enable their credit and
debit payment services on mobile devices, so that all e-commerce
functionality is readily available in mobile in-built web browsers.
© 2011 Distra Pty Ltd. All rights reserved. 13

14. Distra is enabling mobile payments: Asian
e-Payments Provider (B2C)
Mobile Internet
Merchant
HAR HAR
Distra UPP HAR
Bank
Distra
Databas
e
© 2011 Distra Pty Ltd. All rights reserved. 14

15. Immediate business benefits with Distra UPP
• Instant processing of high volumes of mobile payments with no
downtime
• Increased flexibility and reduced time to market with new
mobile payments services and business models
• Improved profitability through reduced costs and new revenue
streams
• Increased customer satisfaction through leverage of real-time
intelligence and customized coupons and offers
• High levels of security and compliance
• Augments rather than replaces existing systems and front-ends
© 2011 Distra Pty Ltd. All rights reserved. 15

16. Distra is helping bridge the payments divide
• The security and performance of traditional payment
networks with the flexibility to enable rapid innovation
• Real-time payments processing for mobile and other
payments channels (POS, ATM, web, social media, kiosk)
• Java-based architecture offers flexibility, agility and speed
to market
• High levels of security, reliability, performance (> 3000
TPS)
• Message agnostic - financial and non-financial message
capture enabling customized offers, coupons & loyalty
programs
“We selected Distra’s technology as a key component of
our [Faster Payments] solutions because its uniquely
innovative architecture provides a combination of real-
time performance, reliability and agility.”
© 2011 Distra Pty Ltd. All rights reserved. 16

17. Empowering Mobile
Payments