Mobey Forum quarterly meeting Sept 23, 2008. The opportunity for banks and the entire mobile payment ecosystem created by focusing on remote mobile payments.

1. CPNI Inc. Proprietary Information Jason Hurlbut VP Global Sales & Business Development CPNI Inc. [email_address] September 23, 2008 Mobile Commerce The Opportunity is Now…

3. DISINTERMEDIATION

5. Who is this bank?

6. Who is this bank?

7. Disintermediators – many entrants MTO’s Mobile Carriers Mobile/Online Financial Services

8. DISRUPTION

10. The Most Valuable Piece of Real Estate in the World! Over 3.3 Billion Users

11. DEFINITION

14. Mobile Payments NFC Remote Proximity

16. Mobile Payments Person to Person AND Person to Merchant Person to Merchant ONLY P2P payments are an additional revenue stream providing a superior business case NFC relies on phone hardware advances and the uptake of merchant PoS devices NFC Remote Proximity

17. OPPORTUNITY

19. Customer Acquisition is the Name of the Game Youth : Cell phone penetration greater than credit card ownership Immigrant workers : Growing at 12+% per annum Everyone : Those without a cheque or credit card handy, or not near a card terminal – practically every customer at some time The Highly Mobile : Use PC banking from the hotel/airport

21. Who else in the Ecosystem Benefits from Remote Payments? … and Merchants who have another channel through which to sell

25. Mobile Commerce Revenue Forecasts: Bank Transaction Fees € 500 Million by 2013

26. SECURITY

27. Pent Up Demand for Banks to Provide Mobile Payments Source: P8 What kinds of organisation would you trust to offer this type of service to you? – GfK NOP March 2006 93% of all respondents felt that the most trusted provider of this service would be a bank – most secure! How long will this last with disintermediators fighting for this market?

28. Security Concern – Who will consumers trust? Consumers want you to provide the mobile application

29. CHALLENGE

30. Leveraging Two International Standards Existing Clearing & Settlement Channels Mobile Carrier Network

32. WHAT DOES THIS MEAN FOR YOU?

35. Bank Audiences – Mobile Strategy Wealth Management Private Client Card Issuing (Visa) Debit/Core Banking Retail Bank Self Service Banking Remittances Merchant Services Payments

37. CPNI Inc. Proprietary Information Thank You Mobile Commerce The Opportunity is Now…