m4 u final
TRANSCRIPT
Agenda
History
Current Portfolio of Services
Conclusion
History
Founded in 2000
Innovation-based company Born from PUC-Rio’s software engineering research lab
Finep Inovar Project Company
Operational expertise and relationship with Telco operators
Initially two business lines spun off into two companies Media and Entertaining (M&E): music, games and news
Financial Services: Prepaid airtime purchases and mobile payment
2008/9 – company spin off
August, 2010 – Cielo acquires the Financial Services
company
The company
Multidisplay
M4 Produtos
100%
19.9%
Initial
ShareholdersCIELOVALID
30% 50.1%
Organizational Structure
Rio de Janeiro
Headquarters
125 - all CLT
Employees
Agenda
History
Current Portfolio of Services
Conclusion
Mobile payment services
Payments
mPayment
Mobile
POS
Credit/Debit/Prepaid card
transactions using the
cardholder’s mobile number –
use the mobile phone as the
card
Capture solution for credit card
transactions via mobile phone
All brands processed by the
acquirer/client
Revenue model:
% of transaction
Releases:
iPhone, Android, SMS
Target segments:
Self-employed
professionals
“Door-to-door”
New project revenue model:
License to use
Customization/Maintenance
Operations
Description Status
Mobile POS – Capturing credit card transactions with mobile phones
Typed
Transaction
Any mobile
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Enter credit card
number, expiration
and security code
OK BackSEND
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Send SMS to 92222
4000 1/182
Transaction Data
CREDIT
Amount: R$40.00
Card:
XXXXXX******XXXX
Auth.: XYZABC
Status: Authorized
OK Back
iPhone
Android
SMS Safe Browsing
M-Pay – Payment is made using the customer’s mobile number
Customer informs mobile number
Ex. 21-8811-8811
OK
Type the mobile
number and
amount:
21-8811-8811
R$40.00
Back
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OK
Purchase initiated
successfully.
Wait, a PIN request
will be sent to your
customer’s mobile.
Back
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OK
PIN required
Confirm purchase?
40.00
Back
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OK Black
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PIN:
4 digits (0-9,*,#)
Merchant Customer
ACQUIRER
ISSUER
M-Pay
Platform
OK
Purchase OK
Num.:
2188118811
dd/mm/yy
40.00
Auth: XYXYXY
Back
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OK
Purchase OK
Merchant.: A
dd/mm/yy
40.00
Auth: XYXYXY
Back
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Receipt transmission
(SMS)
Prepaid airtime purchases
Self-service
POS
Customer buys prepaid airtimes via
credit card from his or her own
mobile phone
Micro retail prepaid airtime sales using
the mobile as POS
Customer receives credit from
another mobile used by the POS
(Merchant)
Revenue model:
% of transaction
Revenue model:
Buying and selling
credits
Oi and TIM as partners
Own brand
Control
Control plan is partially prepaid,
partially billed
Recurring monthly payment system
Airtime
purchases
Description Status
Revenue model:
% of transaction
Oi as partner
Merchant
OI POS – Mobile as prepaid airtime capture equipment in small retail
Customer requires prepaid airtime
Client pays
POS Customer
POS Customer
Airtime for number (21)
86970634 in the amount
of R$1.00 successfully
concluded.
POS balance: R$30.00
NSU: 123456
Processing your (carrier)
airtime purchase of R$
1.00
Keep the NSU code:
123456
For questions, please call
(call center #)
Number: Amount
including cents:
PIN:
Customer
operator
Send message
to 9000
AIRTIME
PURCHASE
Welcome! You can
purchase prepaid
airtime and pay with
your credit card.
Browsing is free
(secure
environment).
Proceed?
Select amount
> 25.00
> 20.00
> 15.00
> Other
Security code Processing airtime
purchase of R$XX.XX
to mobile number
yyxxxxxxxx. Keep
transaction code
(NSU) and credit
authorization code
(yyyyyy). For
questions, call XXX
Self-service airtime purchase – Customer uses his or her own mobile to
buy airtime with credit card
SMS
Menu
WEB
IVR
Type card
number
OI Control – Tool for POS and recurring airtime purchases with credit
cards
Oi Control = Hybrid BILLED and PRE-
PAID
Minimum fee: R$30, billed
Extra minutes: user purchases
additional airtime
Affiliations (sales) and recurring credit
card charges
Simplify sales process in retail
Transfer credit risk to issuer
Responsible for Affiliation (Sale) -
Multichannel
IVA
WEB (Call Center Oi)
Mobile phone
Responsible for Recurring Monthly Charges
Additional Services
Change in Registered Credit Card
Migration of Minimum Fees
Synchronization with Oi Database
Chargeback Control
Agenda
History
Current Portfolio of Services
Conclusion
Conclusion
M4U is positioned to be Cielo’s innovation platform in mobile projects Innovation with Results – competitive advantages and survival
Business model aligned with Cielo’s, based on robust operations with
differentiated services and variable remuneration
New business platform Mature management – financial, technical and operational
Main growth drivers in the medium term Cielo Prepaid Airtime Purchases – cards and cash
Enabler for large scale implementation of mobile payment – prepaid card
Focus on cost discipline to guarantee results