TODAY’S YOUTH AND COMMERCE

Highly engaged and social but

difficult to convert

Limited payment options for the youth market

There are 80M U18’s in the US,

almost none with a credit card

8-18 age group represents over

$200Bn in purchasing power annually

(in the USA alone)

2Piper Jaffray 2013 “Taking Stock with Teens” Market Research Project & 2012 Harris Poll

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LEADING ENT. CO. FINED $3MILLIONFor Violating Childrens’ Privacy

NJ Sues App DeveloperFor Alleged Violations of Children’s Online Privacy Protection Act

IN THE NEWSLarge technology company settles over children’s app bills $100,000,000Investigated by United Kingdom government

8-Year-Old Girl Charged $1,400 For Buying SmurfberriesIn Capcom’s ‘Smurf’s Village for the Iphone

DAUGHTER BUYS CAR ON EBAY Using Dad’s Iphone

NEW GLOBAL SOCIAL MEDIA LAWSUIT Highlights trouble with under 18s and Virtual Currency

NEW COPPA REGULATIONSIn place as of July 1, 2013

FRIENDLY FRAUDPrevalent with youth shoppers

VIRTUAL PIGGY IS THE SOLUTIONVirtual Piggy is the safe way for kids and teens to save, shop and give online, within limits parents set.

Competitive advantage over Non-VP merchants

Reduce transactional friction

Directly monetize and market to the under 18 demographic

Limit charge backs and friendly fraud

Access to greater base of potential users

“With Virtual Piggy kids shop at their favorite sites ....think Paypal for kids.”

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HOW IT WORKS - MERCHANTOne stop youth engagement and monetization platform

INTEGRATION - Easy integration via Form POST or SOAP API methods - Uses existing payment flow and gateway - VP collects no funds, you remain the merchant of record

CO-MARKETING - Virtual Piggy can help with user acquisition and conversions. - Our integrated campaigns drive traffic and transactions.

MERCHANT PROMOTIONAL OFFERS - Pushed to Virtual Piggy users in a CARU approved manner - Allows under 13’s to receive messages via parent control

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COPPA COMPLIANT SHOPPINGOne stop safe checkout with limited friction

REGULAR CHECKOUT

VIRTUAL PIGGY CHECKOUT - COPPA COMPLIANT

Results in breach of COPPA and increased friction:• Cart Drop-off • Loss of sale • Friendly Fraud

Youth skips filling out personal info. Virtual Piggy provides parent’s credentials to merchant.

Select Checkout

Select Checkout with Virtual Piggy

Form of Payment

Sign In Options

Login to Virtual Piggy Account

CC & Billing Info

Shipping Info

Review & Place Order

Review & Place Order

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HOW IT WORKS - CONSUMERGetting started with Virtual Piggy

1 2SIGN UPFree for parents and youth, create a Virtual Piggy account with payment source and address.

MANAGEAdd a profile for each child, setting a monthly allowance and spending controls.

PURCHASECheckout with Virtual Piggy at approved stores, using only their username and password.

DISCOVERFind new merchants via offers, gift cards and wish list.

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VIRTUAL PIGGY DASHBOARD - CONSUMER

a

d e

h i

gf

b c

LEGENDa. Current Balance

b. Savings

c. Merchant Offers and Money Tips

d. Youth Accounts

e. Child Account Controls

f. Gift Cards

g. Wish List to send to family and friends

h. One Time Deposits

i. Transaction History

CO-PROMOTION WITH VIRTUAL PIGGY

ENGAGE THE UNDER 18 CONSUMER

Access to a difficult demographic

DRIVE TRAFFIC AND TRANSACTIONSExtend Customer LTV

COMPETITIVE ADVANTAGE

INCREASE BRAND AWARENESS

Enhance Brand Loyalty

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CO-MARKETING

CLAIRE’S - Co-promotion with Claire’s, Sony

Pictures, and One Direction. - Gave out 1.8M handouts in Claire’s

(1500) Stores. - Free One Direction “This is Us” movie

tickets to Claire’s online customers.

FATHEAD - Every REAL.BIG. Fathead™ purchase

from April - Nov includes a Virtual Piggy Fathead (100k distribution).

- 30% off promotion for all Virtual Piggy members.

ZING/WARPED TOUR - VP Booth at Vans Warped Tour all summer. - Zing Revolution customers could use VP to

checkout and get a free clear case. - Virtual Piggy guitar picks given out at shows.

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CO-MARKETING - GAMING

HABBO - Habbo members who register for Virtual

Piggy get an exclusive rare Golden Pig and Piggy Flag in-game item.

- Habbo Reach: - More than 5,000,000 unique visitors in game monthly - 1.2 million fans on Facebook

GAIA ONLINE - Gaia Online users were offered various

incentives to purchase Gaia Cash using Virtual Piggy.

- Visitors to the Virtual Piggy page within Gaia Online got free Virtual Piggy clothing for their in-game avatar.

- 60,781 Virtual Piggy shirts redeemed by Gaia users.

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PAYMENT PROCESSORS

PARTNER NETWORK

RETAIL AND GAMING CHANNEL

DIGITAL GIFT CARD CHANNEL$

Jason Morrelljason@virtualpiggy.com310-489-9035