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VELO PAYMENTS OVERVIEW Improving how the world pays and gets paid 1 PROPRIETARY AND CONFIDENTIAL. VELO COPYRIGHT 2020. WHAT IS VELO? Velo is a state of the art enterprise-grade payments platform that solves the growing service gap between the largest digital companies in the world and their payment providers. By moving the payee to the middle of the workflow, Velo can improve data at the source prior to instructing the payment. Cleaner data means dramatically fewer errors, less administrative burden, better user experience, and lower cost of service for payments of any scale. VALUE PROPOSITION: VELO PLATFORM SOLVES THE DATA QUALITY PROBLEM FOR THE ENTIRE ECOSYSTEM Velo is the first bank-grade microservices-based platform that utilizes real-time, two-way communication to improve the data relied upon to direct payments. Focused on the information directing the payment rather than the payment itself, Velo has removed historical frictions: Velo supports any transaction, payment type, currency, or jurisdiction. Although built to fix the problems of low dollar value, high volume, irregular payments, Velo is the platform all corporates and payment providers can use to improve any payments. Easing adoption, Velo offers a simple SaaS model, and is agnostic to both front-end (API or UI) and delivery (hosted or installed in public or private cloud, or data center). THE SERVICE GAP: YESTERDAY’S PAYMENT SYSTEMS CANNOT PROPERLY SERVE TODAY’S ECONOMY Most of today’s payment infrastructure was developed decades ago for predictable payments, such as high value, low volume at regular intervals. The data formats are inflexible, reporting is slow, and errors average in excess of 1%. Cost of service and cost of error resolution are both extremely high. “Fire and forget” flat file payment instructions leave the payor and payee waiting and hoping the payment is successful. Phone calls to one another and the banks are the only means of inquiry, tracking and solving problems. Marketplaces, SaaS platforms and gig economy companies are data-driven organizations. Their API-first, event-based platforms best serve their users when they can consume as much event-based information from their service providers as possible. But those information demands are not met by one-way workflows of the prevailing old payment systems, housed in data centers, creating the service gap. The real problem is the inflexibility of flat file data format passed between parties. The data can’t be interrogated or improved. KYC, AML, exception handling, and other critical bank functions are impacted by the mediocre data sets found in flat files. The result is limited transparency, latency, errors and inconsistencies, all of which could be addressed with better software. A NEW WORKFLOW: VELO PUTS THE PAYEE IN THE MIDDLE Velo provides a bi-directional data dialogue amongst bank clients (payors), their beneficiaries (payees) and both their banks and payment service providers. This information layer improves information transparency (costs and status of payments), reduces errors (less phone calls) and substantially reduces cost of service by automating manual processes.

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VELO PAYMENTS OVERVIEW Improving how the world pays and gets paid

1PROPRIETARY AND CONFIDENTIAL. VELO COPYRIGHT 2020.

WHAT IS VELO? Velo is a state of the art enterprise-grade payments platform that solves the growing service gap between the largest digital companies in the world and their payment providers. By moving the payee to the middle of the workflow, Velo can improve data at the source prior to instructing the payment. Cleaner data means dramatically fewer errors, less administrative burden, better user experience, and lower cost of service for payments of any scale.

VALUE PROPOSITION: VELO PLATFORM SOLVES THE DATA QUALITY PROBLEM FOR THE ENTIRE ECOSYSTEM Velo is the first bank-grade microservices-based platform that utilizes real-time, two-way communication to improve the data relied upon to direct payments. Focused on the information directing the payment rather than the payment itself, Velo has removed historical frictions: Velo supports any transaction, payment type, currency, or jurisdiction. Although built to fix the problems of low dollar value, high volume, irregular payments, Velo is the platform all corporates and payment providers can use to improve any payments. Easing adoption, Velo offers a simple SaaS model, and is agnostic to both front-end (API or UI) and delivery (hosted or installed in public or private cloud, or data center).

THE SERVICE GAP: YESTERDAY’S PAYMENT SYSTEMS CANNOT PROPERLY SERVE TODAY’S ECONOMY Most of today’s payment infrastructure was developed decades ago for predictable payments, such as high value, low volume at regular intervals. The data formats are inflexible, reporting is slow, and errors average in excess of 1%. Cost of service and cost of error resolution are both extremely high. “Fire and forget” flat file payment instructions leave the payor and payee waiting and hoping the payment is successful. Phone calls to one another and the banks are the only means of inquiry, tracking and solving problems.

Marketplaces, SaaS platforms and gig economy companies are data-driven organizations. Their API-first, event-based platforms best serve their users when they can consume as much event-based information from their service providers as possible. But those information demands are not met by one-way workflows of the prevailing old payment systems, housed in data centers, creating the service gap. The real problem is the inflexibility of flat file data format passed between parties. The data can’t be interrogated or improved. KYC, AML, exception handling, and other critical bank functions are impacted by the mediocre data sets found in flat files. The result is limited transparency, latency, errors and inconsistencies, all of which could be addressed with better software.

A NEW WORKFLOW: VELO PUTS THE PAYEE IN THE MIDDLE Velo provides a bi-directional data dialogue amongst bank clients (payors), their beneficiaries (payees) and both their banks and payment service providers. This information layer improves information transparency (costs and status of payments), reduces errors (less phone calls) and substantially reduces cost of service by automating manual processes.

TWO-WAY WORKFLOW Both Payors and Payees can enrich the data set, improving data quality for Payors and FIs

AN END-TO-END CONFIGURABLE MICROSERVICES-BASED WORKFLOW

• Includes all essential services to make payments, from initiation of payment instructions, authentication/validation of payment initiation, payment processing, compliance checks/monitoring, to auditing and reporting (persistence of payment information in a ledger or system of record)

• Two-way workflow enables resolution of data quality at both payor and payee sources of information; appended rich data improves reconciliation for payors and FIs

• FIs can replace Velo individual microservices with existing FI or third party applications

• Microservices are configurable to meet jurisdictional KYC, other data residency requirements, and specific regulatory or infrastructure requirements of FIs

• Pluggable architecture allows interoperability with third party services, whether mainframe or cloud-based

• Boost ROI. Keep your preferred transaction monitoring and BI tools. Add Velo to fundamentally improve your data quality, reducing the burden on many of your back office functions, while improving user experience.

FRONT-END SOLVES DATA QUALITY AT THE SOURCE & UNLOCKS SELF-HELP

• Payors, payees and FI admin environments are available via API or UI portals, or any hybrid to optimize experience for each cohort of users

• Payors and payees instruct a single payment or use a single file or API call to instruct multiple payments simultaneously

• Real-time tracking and reporting published to payors, payees and FI admin portals; robust payee portal removes admin burden for payors and FIs by providing real-time in-state tracking of payments, and encourages self-help eliminating the “where’s my payment?” dilemma

• Real-time visibility to payors and payees of returned payments enables expedited exception handling and reduces administrative burden on the FI

• White-label UIs for FI to offer Velo as a branded proprietary service to their clients, across each LOB

• Built API first; Velo publishes a complete API suite that is publicly available in Velo’s developer center, including a sandbox environment

REAL-TIME TRACKING Published to payors, payee and FI admin portals; eliminates the “Where’s my payment?” dilemma

1PROPRIETARY AND CONFIDENTIAL. VELO COPYRIGHT 2020.

VELO PAYMENTS OVERVIEW

HOW VELO WORKS

Velo’s portable software can be used as a hosted solution by Velo or installed, for example, in a bank’s private cloud. The Velo suite provides access from both white label UIs and APIs. Velo interfaces with payees, prior to the preparation of any payment instructions. Communication with payees at the source improves payment information, which in turn helps reduce false positives and expedites the clearing of flagged transactions. This digital interface with payees provides a self-help environment for exception handling, reducing customer service burdens. All data captured via Velo is available in real-time to all parties, using Velo’s configurable data schema, a single source of truth for reporting (to clients, internal and to regulators) and auditing.

BACK-END SETS NEW PARADIGMS FOR SECURE, SCALABLE INFORMATION MANAGEMENT

• Built from outset with priority on exceeding today’s bank-grade security, data privacy and scalability requirements

• Velo provides multiple lines of defense in compliance with pluggable back-end

• Configurable Single Source of Truth with dynamic rights management and cold storage vault allows for secure, normalized data across global organizations with disparate infrastructures, and secure sharing of data with trusted counter-parties

• Extensible information management solution resolves GDPR, CCPA, regulatory reporting, system monitoring and auditing requirements; can publish payor and payee data to BI tools to power CRM or new use cases (e.g. cross-sell solutions)

• Message transformation services manages specific message formats on specific networks (i.e., supporting all SWIFT MT/MX message formats)

FOCUSING ON DATA ALLOWS VELO TO BE AGNOSTIC TO KEY CONSIDERATIONS

• Deployment Agnostic: Fully containerized, resilient microservices that can be installed in multiple private or public clouds, in physical data center environments, or hybrid deployments

• Payment Agnostic: Enhancing FI services that offer numerous payment rails, Velo’s payment gateway adds non-bank payment types such as e-wallets

• Flexible SaaS Business Model: Because Velo’s cost of service is a fraction of legacy solutions, Velo offers a base SaaS model, but can flex to revenue share or a share in percentage of savings. At Velo, the client decides

VELO PAYMENTS OVERVIEW

2PROPRIETARY AND CONFIDENTIAL. VELO COPYRIGHT 2020.

HOW CLIENTS ARE USING VELO

• As a Modernization Play: A global FI sees Velo as the best software suite to install in its private cloud to make SWIFT, SEPA, Target2 and other standards-based payments; modeling a 50-80% reduction in its cost of service as it sunsets mainframes, and improving data quality in its KYC and other regulatory processes. Velo has shown better performance, scalability, and reduced infrastructure requirements, in joint scaling models.

• As a Growth Play: A top 25 global FI views Velo as an augmentation for its low value commercial payments, using the Velo Payee Portal to compete directly with FinTechs who are serving marketplace business models in the gig economy

Improving how the world pays and gets paid