Wirecard Ag · HAM:WDI
Wirecard — Investor Day (October 2012)
67 slides from Wirecard's investor day presentation, Oct 9, 2012
Slide 1: Capital Markets Day 2012
Capital Markets Day 2012 October 9th 2012 © 2012 Wirecard AG 1
Slide 2: Agenda
Agenda 13.00h Welcome Markus Braun 13.30h – 14.15h Multi channel convergence of Wirecard platform, Carlos Haeuser 14.15h – 15.00h Mobile payments: evolution or revolution? Christian von Hammel-Bonten 15.00h – 15.30h coffee-break 15.30h – 16.15h Enabling card payments: Wirecard’s Card Reader Jörn Leo
Slide 3: Multi-Channel Convergence: A scalable platform approach
Multi-Channel Convergence A scalable platform approach Carlos Häuser © 2012 Wirecard AG 1
Slide 4: Agenda
Agenda 1. Multi-Channel Convergence 2. Multi-Channel vs. Cross-Channel 3. Dimensions of Scalability 4. The Wirecard Solution © 2012 Wirecard AG 2
Slide 5: 1. Multi-Channel Convergence
1. Multi-Channel Convergence © 2012 Wirecard AG 3
Slide 6: Convergence
Convergence the merger of previously distinct technologies into a new form; requiring new theories, new products, and new practices © 2012 Wirecard AG 4
Slide 7: The Channels
Multi-Channel Convergence The Channels Point of Sale E-Commerce Mobile Commerce ‒ Proprietary solutions ‒ Growing, competitive ‒ In-App Payments ‒ Cash market ‒ Pay with your mobile ‒ Slow rate of innovation ‒ Alternative payments phone in addition to cards ‒ Mobile terminal via ‒ High innovation ra
Slide 8: Multi-Channel versus Cross-Channel
Multi-Channel Convergence Multi-Channel versus Cross-Channel Multi-Channel Cross-Channel ‒ Usually different business and ‒ Consumer can combine all channels payment processes per channel during his shopping experience ‒ Mostly different payment ‒ Merchant needs integrated business outsourcing partn
Slide 9: 2. Multi-Channel vs. Cross-Channel
2. Multi-Channel vs. Cross-Channel © 2012 Wirecard AG 7
Slide 10: Conclusion
Conclusion "It is no longer about channels; it is about the customer life cycle across everywhere we touch them." This involves orchestrating the customer relationship across touch points, not channels. It involves driving relevant, personalized and linked offers across all forms of communication, s
Slide 11: 3. Dimensions of Scalability
3. Dimensions of Scalability © 2012 Wirecard AG 9
Slide 12: Scalability
Scalability In electronics (including hardware, communication and software) scalability is the ability of a system, network, or process, to handle a growing amount of work in a capable manner or its ability to be enlarged to accommodate that growth.[1] [1] André B. Bondi, 'Characteristics of scalabi
Slide 13: Scalability
Scalability In a commercial context scalability of a business model refers to the potential for economic growth within one or more markets and industries. The base concept is consistent – the ability for a business or technology to accept increased volume without negatively impacting the contributio
Slide 14: Number of Non-Cash Transactions
Number of Non-Cash Transactions CAGR 4.4% CAGR 120 5.5% 113,9 80,8 CAGR CAGR Non-Cash Transactions 77,8 15.5% 12.4% 80 50.6 ( Billion ) 40 24,3 25,4 7,7 10 0 North North America America Mature Mature Europe 2001 Europe 2009 2001 2009 APAC 2001 APAC 2009 BRIC 2001 BRIC 2009 0 14% 28% 4% 39% 38% 38% C
Slide 15: Number of Non-Cash Transactions by Region
Number of Non-Cash Transactions 300 CAGR Growth 260 248 6 ´01-´09 ´08-´09 250 5 233 5 7 5 Global 6.8 5.0% 4 25 23 6 4 Latin America 17.5% 15.4% 21 4 Developing Economics 24 200 22 20 Rest of Asia 15.4% 11.1% 153 2 31.8% 22.0% CEMEA 150 10 2 78 71 74 8 1 BRIC 12.04% 8.6% 51 100 Mature Asia-Pacific 15
Slide 16: Global E-Payments: # of Transactions & growth rates
Global E-Payments: # of Transactions & growth rates CAGR ´09-´13F Total 19.1% Alternative Payments 32.1% 18.1% Non-Banking Competition Debit, Credit, Prepaid Cards 35 30.3 30 2,7 Number of Transactions ( Billion) 25.4 25 2 21.3 1,5 20 17.9 15.1 1,2 15 0,9 27,6 23,4 10 19,8 16,8 14,2 5 0 2009 2010 20
Slide 17: Global M-Payments: # of Transactions & growth rates
Global M-Payments: # of Transactions & growth rates CAGR ´09-´13F Total 48.8% Non-Bank Providers 67.3% Bank Providers 47.6% 16,0000 15,284 1,223 Number of Transactions ( Million ) 12,0000 9,814 785 8,0000 6,756 14,062 473 4,587 9,029 4,0000 3,120 272 6,283 156 4,315 2,964 0,0000 2009 2010 2011F 2012
Slide 18: 4. The Wirecard Solution
4. The Wirecard Solution © 2012 Wirecard AG 16
Slide 19: The Wirecard Payment Gateway
The Wirecard Solution The Wirecard Payment Gateway Inbound Batch Connectors processing Payment Gateway Virtual Outbound Terminal connector Key Management & protocol conversion © 2012 Wirecard AG 17
Slide 20: Scaling on the Gateway
The Wirecard Solution Scaling on the Gateway ‒ Open connector architecture – Easy and fast integration of new payment methods – Standard interfaces for terminal connectivity ‒ New channels can be added with existing certified solutions ‒ Full virtualiazition for on-demand processing capacity ‒ Chann
Slide 21: The Wirecard Platform
The Wirecard Solution The Wirecard Platform Payment Issuing Gateway Processing Integrated Payment Platform Acquiring eWallet Processing Fraud&Risk Management © 2012 Wirecard AG 19
Slide 22: Disclaimer
Disclaimer This presentation contains explicit and implicit forward-looking statements concerning Wirecard AG, its affiliated companies and their business. These statements are subject to various known and unknown risks, uncertainties and other factors due to which the actual events, financial condi
Slide 23: Contact
Contact Wirecard AG Einsteinring 35 85609 Aschheim / Munich Germany www.wirecard.com
Slide 24: Enabling card payments anywhere: Wirecard's Card Reader Solution
Wirecard Group Enabling card payments anywhere Wirecard’s Card Reader Solution Jörn Leogrande © 2012 Wirecard AG 1
Slide 25: Wirecard Card Reader
Wirecard Card Reader Wirecard has launched its Card Reader as an international white-label program enabling card payments at the point of sale via smartphone. Our offerings are EMV-capable and allow acceptance for MasterCard, Visa and electronic direct debiting (EDD) schemes. Our out-of-the-box appr
Slide 26: Market potentials
Wirecard Card Reader Solution Market potentials ‒ Square is valued at 3.25 Billion Dollar. More than 2 million businesses and individuals are accepting credit and debit cards via the Square mobile transaction platform, up from 1 million just six months earlier. ‒ According to Eurostat there are curr
Slide 27: At a glance
Wirecard Card Reader Solution At a glance POS Application Merchant Setup Certifications, & Merchant Web & Support Licenses, Backend Compliance & Risk-Management Multi language, multi-currency, white- label ready POS and web applications, card reader and packaging. © 2012 Wirecard AG 4
Slide 28: How it works
Wirecard Card Reader Solution How it works 1. Amount input 2. Card read out 3. Signature 4. Email receipt © 2012 Wirecard AG 5
Slide 29: A simple solution: Great for small businesses
Wirecard Card Reader Solution A simple solution: Great for small businesses ‒ It allows even the smallest merchants to accept payments, wherever and whenever they do business. ‒ No cash handling: no need for change, no need for cash on hand and no risks involved with storing cash. ‒ It creates added
Slide 30: Designed to integrate easily
Wirecard Card Reader Solution Designed to integrate easily Readers Mobile Apps Web © 2012 Wirecard AG 7
Slide 31: Covers all platforms
Wirecard Card Reader Solution Covers all platforms © 2012 Wirecard AG 8
Slide 32: Supports a wide variety of card reader devices
Wirecard Card Reader Solution Supports a wide variety of card reader devices Mag Stripe Mag Stripe Chip Chip‘n PIN (Encrypted) ‒ Swipe & ‒ Triple DES ‒ No PIN pad ‒ EMV Level 1 Signature ‒ AES128 ‒ EMV Level 1 certified Encryption certified ‒ Chip & PIN ‒ Swipe & ‒ Triple DES ‒ Triple DES Signature
Slide 33: Merchant Web Interface
Wirecard Card Reader Solution Merchant Web Interface Merchants have access to a powerful but easy to use system: ‒ Swiftly check past transactions, print receipts, or trigger refunds/cancellations ‒ Analytics & reporting options offer valuable insights ‒ Schedule couponing & loyalty campaigns in ord
Slide 34: Certified Security
Wirecard Card Reader Solution Certified Security ‒ PCI-DSS certified solution ‒ End-to-End encryption using DKUPT & industry-strength 3DES directly inside the card reader ‒ Fallback to SSL and mobile OS encryption if unencrypted card readers are used ‒ Cardholder data always protected © 2012 Wirecar
Slide 35: Integrates into existing applications
Wirecard Card Reader Solution Integrates into existing applications Software Development Kit Drop in SDK Library for iOS and Android allows developers to easily integrate card acceptance into their own apps. © 2012 Wirecard AG 12
Slide 36: A complete white-label offering
Wirecard Card Reader Solution A complete white-label offering ‒ Complete suite of POS applications ‒ Choice of card reader devices ‒ Certification, compliance and licenses ‒ Merchant relationship management ‒ Risk- and fraud management ‒ Call center support © 2012 Wirecard AG 13
Slide 37: Disclaimer
Disclaimer This presentation contains explicit and implicit forward-looking statements concerning Wirecard AG, its affiliated companies and their business. These statements are subject to various known and unknown risks, uncertainties and other factors due to which the actual events, financial condi
Slide 38: Contact
Contact Wirecard AG Einsteinring 35 85609 Aschheim / Munich Germany www.wirecard.com © 2012 Wirecard AG 15
Slide 39: Mobile Payment: Evolution or Revolution?
Mobile Payment Evolution or Revolution? Christian von Hammel-Bonten © 2012 Wirecard AG 1
Slide 40: What is Mobile Payment?
Mobile Payment - Introduction What is Mobile Payment? DIRECT PAYMENT ON MOBILE AT CLOSED LOOP MOBILE AS EVERYTHING CARRIER MOBILE THE POINT OF MOBILE THE ELSE BILLING SALE PAYMENTS POINT OF SALE Telling digital The mobile as The Mobile wallet The return of the Every smartphone The everything else me
Slide 41: Estimates
Mobile Payment - Introduction Estimates ‒ Juniper Research (July 2011): Total value of mobile payments for digital and physical goods, money transfers and NFC (Near Field Communications) transactions will reach $670bn by 2015, up from $240bn in 2011. ‒ Juniper Research (June 2011): Global NFC m-paym
Slide 42: Wirecard's Mobile Money Products
Mobile Payment Wirecard`s Mobile Money Products MOBILE SINGLE-USE RELOADABLE GIFT CONTACTLESS BRIDGE CONTACTLESS MOBILE VIRTUAL CARDS CARDS TECHNOLOGIES PAYMENTS - Internet purchases in - Seamless entry into the - Enables legacy phones - Support for built-in and emerging markets payment market for c
Slide 43: Entry Point: Dual-Interface Card or NFC-Sticker
Mobile Payment Projects Entry Point: Dual-Interface Card or NFC-Sticker DISCOVERY − Buy card online or in co-brand partner store and/or − Pay at Point-of-Sale or Internet SERVICES − Payment transactions & ATM Withdrawals − View balance and transactions − Real-time notifications − Locate next topup s
Slide 44: (Re-)Evolution to Mobile Wallet
Mobile Payment Projects (Re-)Evolution to Mobile Wallet Tap phone to Over-the-provisioning − pay of card into handset − redeem coupons − retrieve loyalty points − get receipts LOYALTY / COUPONING Tap phones to transfer money (Person-2-Person transfer) Merchant Operator © 2012 Wirecard AG 6
Slide 45: Mobile Money Ecosystem
Mobile Payment Mobile Money Ecosystem MOBILE DEVICE SIM TOOLKIT J2ME APPLICATIONS SMARTPHONE APPS APPLICATIONS VALUE ADDED CONTEXTUAL ADVERTISING LOYALTY PROGRAMS COUPONING SERVICES SERVICES MOBILE WALLET CUSTOMER KNOW-YOUR BALANCE MGMT. CREDIT FACILITY PEER-TO-PEER PLATFORM DATA MGMT. CUSTOMER (STO
Slide 46: Mobile Application - Value added services
Mobile Payment Projects Mobile Application - Value added services © 2012 Wirecard AG 8
Slide 47: Wirecard provides all ingredients for co-branded mobile wallet programs
Mobile Payment Wirecard provides all ingredients for co-branded mobile wallet programs FINANCIAL WIRECARD Co-Brand / 3rd PARTY E-MONEY/BANK LICENCE SERVICES LICENSE WIRECARD Co-Brand / 3rd PARTY SCHEME MasterCard/VISA LICENCE LICENSE Call centre / MOBILE WALLET PLATTFORM Administration Card & Interf
Slide 48: Supplier Comparison
Mobile Payment Supplier Comparison Financial Software Specialist Wirecard Institutions Companies Suppliers SVA (stored value account) / zero balance account Comprehensive white label software platform, incl. smartphone app, P2P-transfers, central management software Regulatory Compliance Pan-Europea
Slide 49: Disclaimer
Disclaimer This presentation contains explicit and implicit forward-looking statements concerning Wirecard AG, its affiliated companies and their business. These statements are subject to various known and unknown risks, uncertainties and other factors due to which the actual events, financial condi
Slide 50: Contact
Contact Wirecard AG Einsteinring 35 85609 Aschheim / Munich Germany www.wirecard.com
Slide 51: Latest developments in Asia
Wirecard AG Latest developments in Asia Burkhard Ley, CFO
Slide 52: Content
Content 1. Overview M&A activities Asia 2. Current status 3. How we succeed in Asia © 2012 Wirecard AG 2
Slide 53: 1. Overview M&A activities Asia
1. Overview M&A activities Asia
Slide 54: Acquisitions Asia 2011/2012
Overview M&A activities Acquisitions Asia 2011/2012 Wirecard Processing Systems@Work PrimaVista (formerly Procard Services) Singapore Jakarta Dubai January 2011 December 2011 Expected Closing Q4 2012 ‒ Local processing unit for ‒ Established technology ‒ Payment solutions for merchants, banks and co
Slide 55: 2. Current status
2. Current status
Slide 56: Case study Singapore: Taxi Payment Processing
Current status Case study Singapore: Taxi Payment Processing − 15,000 taxis enabled − Processing for all international cards MC, Visa, Diners, Amex & JCB − Processing for Taxi Company’s internal Cabcharge and eVoucher cards − Support for call-centre payments − Customized settlement reconciliation an
Slide 57: Singapore's Resort World Sentosa: Consolidated Payment Processing
Current status Singapore‘s Resort World Sentosa: Consolidated Payment Processing − Processing for hotels, attractions, F&B, retail − All channels – POS, Mobile, eCommerce, call-centre, − Full range of payment interactions including Swipe, EMV, contactless, eCommerce, MOTO − All brands MC, Visa, Amex
Slide 58: Top-up/reload services
Current status Top-up/reload services Provision of electronic top-up infrastructure for ez-link prepaid cards Support for top-up of prepaid cards and mobile NFC wallet ‒ Formed by Land Transport Authority (LTA) in 2002 ‒ Issuer of Singapore’s largest contactless stored value card portfolio (>10 mill
Slide 59: 3. How we succeed in Asia
3. How we succeed in Asia
Slide 60: Convergence in emerging markets of Asia
How we succeed in Asia Convergence in emerging markets of Asia POS Mobile Payments (E-COM & POS) Long-term growth in m-commerce E-Commerce will come from developing nations where mobile is virtually the only Low PC Internet in way to access the Internet. developing nations (ABI Research). © 2012 Wir
Slide 61: Technology enabler
How we succeed in Asia Technology enabler Customize new payment applications and work- Wirecard Wirecard flows to meet merchants’ payment gateway business requirements without modifications to - Top-up card acquirers’ systems - Peer-to-peer and processes. © 2012 Wirecard AG 11
Slide 62: PT PrimaVista Solusi
How we succeed in Asia PT PrimaVista Solusi − Headquartered in Jakarta, Indonesia / approx. 250 employees, > 130.000 deployed terminals − Customers: leading domestic financial institutions and retailers, international banks − Innovative POS solutions: Stored Value Contactless Card Solutions © 2012 W
Slide 63: Case Study PT PrimaVista Solusi
How we succeed in Asia Case Study PT PrimaVista Solusi ‒ Leading Indonesian bank to use Wirecard payment processing ‒ Payments with credit cards across multiple channels ‒ Online, mobile, over-the-counter terminals, MOTO (mail order telephone order) ‒ Convergence of all sales channels Flexibility an
Slide 64: Sales synergies as a priority
How we succeed in Asia Sales synergies as a priority 1. Established hubs in Dubai and Singapore – and soon Jakarta – providing deep insights into local markets 2. Global gateway for all industries drives scalability 3. Local knowledge transfer e.g. Mobile Payments (EDC- Electronic Device Commerce )
Slide 65: Wirecard Asia – a promising future development
How we succeed in Asia Wirecard Asia – a promising future development China (1.4bn*) South Korea Japan (50mn*) (128mn*) India Vietnam (1.2bn*) (91mn*) Thailand (70mn*) Malaysia (28mn*) Indonesia (230mn*) Australia (22mn*) *population © 2012 Wirecard AG 15
Slide 66: Disclaimer
Disclaimer This presentation contains explicit and implicit forward-looking statements concerning Wirecard AG, its affiliated companies and their business. These statements are subject to various known and unknown risks, uncertainties and other factors due to which the actual events, financial condi
Slide 67: Contact
Contact Wirecard AG Einsteinring 35 85609 Aschheim / Munich Germany Investor Relations Iris Stöckl [email protected] T: + 49 (0) 89 4424 1424