© SIA GROUP

Prepaid Summit: Europe 2016

Nicolo Romani , Head of Innovation Lab

Southern Europe Case Study - an outside Perspective

27th October 2016 | Milan, Italy

© SIA GROUP 2

Key Figures 2015

CARDS

3.9 billion operations 747,325 merchants managed 65.1 million credit, debit and prepaid cards

PAYMENTS

2.8 billion transactions 1,154 customers

INSTITUTIONAL SERVICES

41.7 billion financial transactions

over 100 brokers and traders in 18 countries adopting compliance & surveillance systems

350 million deal proposals handled daily (50,000 per second)

29 trading venues and over 580 customers connected to the Financial Ring

9.9 billion clearing transactions

Over 4,800 EBA STEP2 participants

CORPORATE INFORMATION

Employees (SIA Group): 1,612

Revenues (SIA Group): 449.4 million Euros

NETWORK

358.2 terabyte of data carried

100% availability

© SIA GROUP

Payment Industry is changing very fast

Disrupting Forces

Effective Customer experience;

Large Customer Base;

High innovation and investing capabilities;

Mobile Network Services

Connectivity

VAS Services Cloud, NFC,

M2M

Core Services (Advertising, eCommerce)

VAS Services (Cloud, wallet )

Internet Banking (Digital Bank)

Payment Network,

Issuing

VAS Services Reporting, Fidelity,

e-Wallet

Branches

REG

ULA

TOR

S

TEC

HN

OLO

GY

ASYMMETRIC COMPETITION

CONSUMERS

Banks need to offer secure, easy and user friendly

solutions on global scale to maintain their position.

Millennials

Open Innovation

PS

D2

3

© SIA GROUP

1. Missing revenues due to interchange fee reduction

2. Increase of the competition on acquiring side due to the entrance of new full digital players (GiC) War On GIC

(*) source: SIA aggregation of Bank of Italy data

Market Trends

Payment Industry is changing very fast

Why Jiffy

Italian Payment Market (*)

War On Cash

Payment instrument

Transactions (Mln)

%

Cash 14.686 81%

Cards 2.185 12%

Bank Transfer 1.192 7%

Total 18.063 100%

4

5

Jiffy Solution

P2X European Solution

Immediate debiting and crediting Beneficiary identified by a phone number Security (Enrolment and user authentication) provided by the Bank Based on current account (or card with IBAN) Settlement at cut off through SEPA Credit Transfer / SCTINST

5

6

European scenario for P2X

Player

All main

Swedish Banks 3 mio

Market share USERS

66% 2,5 mio

90% 2,5 mio

65 60

307

45-50

130

Jiffy, is the only one based on SEPA SCT;

ECB key guidelines:

Leveraging on SEPA infrastructures

Real time clearing and immediate funds availability

Deferred settlement acceptable with no liquidity risks

Interoperability

PSD II

Jiffy

© SIA GROUP

Jiffy Solution

Jiffy P2X – Multi Layer Solution

P2X Engine

Real time credit

-10 +10

# phone number amount

SCT

Euro

Sy

stem

Cle

arin

g A

pp

licat

ion

End customer product Brand

Pricing definition

APP (presentation layer)

VAS

Service Brand

Interoperability among users &

Banks

Interbank settlement

infrastructure

Bank Account Access

CSM

Interbank clearing

infrastructure

Sett

lem

ent

Jiff

y (

SIA

) B

ank

Syst

em

Ban

k P

rese

nta

tio

n la

yer

Directory Service > phone # - IBAN > messaging to Banks > net exposure calculation Collateral based on Volumes

7

8

• JIFFY P2P realtime money transfer among Individuals

• JIFFY P2B payments to Physical and Online stores, professionals,

and independent workers

• JIFFY P2G payments to Public Administration

Roadmap

4nd Quarter 2016 1st Q 2017

Jiffy P2G Launch with the first participating Public Administration

November 1st, 2014

Jiffy P2P Launch with the first

participating Bank

February 19th, 2016

Jiffy P2B Launch with the first

participating Bank

Brambilla Eugenio elettr.

Brambilla Giovanni idraul.

November 1st, 2015

Launch of the first Charity Initiative to donate with Jiffy

Hai ricevuto un avviso di pagamento da

Paga

Comune di Roma Ente

101,56€ Import

o

Mensa scolastica Causale

Esci

31/12/2015 DataScad.

Commiss. 1,23€

92738982652837 IUV

2016 2014 2015

Jiffy Roadmap

9

Jiffy P2B

Use Cases: Push and Pull mode

PULL

Customer Identification

• Phone number

• Loyalty card

• Proxy…

Transaction amount

(Money Request)

Payment acceptance

Customer Proxy

push notification

Payment verification

Merchant Selection

• Phone number

• QR Code

• Geolocalization

• Merchant name

Transaction

Amount (*)

PUSH Payment verification

Payment acceptance

1

2

3

1

2

10

Category Proxy Phone number

E-mail Name@ 335-12345678

Car plate 335-12345678

Loyalty card 335-12345678

Telegram ID 335-12345678

Facebook ID 335-12345678

Subscription code

335-12345678

Jiffy P2B

Focus on the Directory service: the Proxy DB

P2X

Proxy DB

Mobile phone number IBAN

335-12345678 XXX

YYY

The link Proxy – Payment Instrument in the P2X Directory Service is the key element to support new

payment scenarios

© SIA GROUP

-10 +10

Euro

Sy

stem

Cle

arin

g

Ap

plic

atio

n

11 S

ettl

emen

t

Jiff

y (S

IA)

Ban

k Sy

stem

B

ank

Pres

enta

tio

n

laye

r EB

A

Ser

vice

SIA

Data

cen

ter

Not

Real Tim

e

-Real time credit on

beneficiary account

-No more SCT

preparation

No liquidity risk

Pre-funding

Real Tim

e Performance Optimization, both Jiffy

and EBA are in the same SIA data center

Jiffy & Instant Payament

Integration with SCTINST EBA Clearing Platform