This document describes Money 2.0, a proposed unified system for electronic money circulation and instant money transfers. The system would allow for internet, mobile, and regular payments as well as money transfers through key elements like an issuing bank and payment system. It aims to provide a comprehensive self-service environment for banking clients and acquire competitive advantages over existing payment systems. At the core is an electronic coin that can be used for online and real-world payments through mobile phones and payment terminals. The system seeks to connect to various online and real-world merchants and services.

1. Money 2.0 EVOLUTION OF PAYMENTS - Internet payments - Mobile payments - Regular payments - Instant payments - Money transfers

2. KEY SYSTEM ELEMENTS Issue bank, providing cover of electronic money; Payment System providing for technological procedures of money issue and development of business processes; Business environment for electronic money circulation and use – a product of mutual operation of the bank and the payment system;

3. PROJECT TARGETS Implementation of a unified environment for both electronic money circulation and instant money transfers; Providing possibilities of self-service to the bank clients; Implementation of the comprehensive mobile banking concept; Acquiring competitive advantages as compared to all existing payment systems, markets and business models.

4. THE CORE OF “MONEY 2.0” SYSTEM Electronic Coin

5. ELECTRONIC COIN – PAYMENTS ONLINE AND IN THE REAL WORLD Electronic coin features

6. The coin can be incorporated in:

7. MOBILE PHONE = WALLET!

8. MOBILE PHONE = PAYMENT TERMINAL!

9. “MONEY 2.0” ON THE WEB

12. MEMBER AREA

16. BASIC COIN TRANSACTIONS Transfer/Payment +% Change +% Consolidation +% Change of personal data +% Coin redemption +% Nominal value checking Replenishment

17. CHANGE TRANSFER PAYMENT RECHARGE

18. WHERE TO BUY?(Putting money into the system) Internet Web shops Web Currency Exchange resources Bank website Client-bank Ordering and paying for coins via one’s own member area ATM of the issue bank Partners bank Payment terminals (cash-in) POSterminals Mobile phone SMS Prepaid cards

19. SELF-SERVICE PAYMENT TERMINALS (cash-in)

20. HOW TO SELL MONEY 2.0?(Redeem) Internet Transfer to bank card Client-bank Transfer to personal bank account ATM Purchasing goods via ATM Payment terminal Purchasing goods via terminals Mobile Phone Transfer of fund balance to mobile subscriber account Prepaid service terminals Exchange to prepaid provider cards (sale)

21. WHERE DO I USE IT? In the Internet: bank website, web shops, sites; Mobile phone: at the mobile web portal by using respective mobile phone application; Payment terminals: payment for goods, no cash required; POS; ATM; GAS Station; Other.

22. Web-shop – ukrshop.com

23. Sale of Coin

24. PAYMENT BY COIN

25. EXTRA OPPORTUNITIES The coin number can match a phone number; The coin number can match a bank account number; Personal coin fees (for dealers, merchants, agents); And many other cool stuff.

26. EXTRA FEATURES OF THE COIN Personification – a coin can be associated with a physical person or a legal entity according to respective contract concluded with the Issue bank; Multiplicity – a personified client may have any amount of coins of various currencies; For each coin the history of transactions is kept; The coin can be integrated with a personal device such as mobile phone or a smart-card; Active/inactive status – the Issue bank monitors status of coins and reissues them in case of need

27. INTEGRATION WITH EXTERNAL ENVIRONMENT Integration of the coin with a National Mass Electronic Payment System smart-card; Keeping the coin in a mobile phone (requires installing a special application); The coin can be integrated with an NFC phone; The coin is activated within client-bank system; Client of electronic banking system = bank teller; All the other API integration methods.

28. NFC Instant NFC payments and services - Banking and finance management (self-supervision of accounts); - On-line and Off-line payments in the same environment; - Regular payments (automatic payment); - Information servicing (responding to inquiries, consultancy, other services); - Transport and Entertainment (e-tickets); - Insurance, medicine and civil services; - Security, Identification and Personification.

29. VERSATILITY Instant money transfers between physical persons and payments to legal entities (P2P/P2B): By using a mobile phone; By using a smart-card; Via Internet; By means of prepaid electronic bills; Via sensor self-service terminals.

30. ACCESSIBILITY Mobile phone (other personal device): does not require installation of extra software or any specialized cards regardless of mobile communication service provider. Payments are performed using BlueTooth and NFC technologies; Smart-cards – contact cards (National Mass Electronic Payment System cards), plastic cards; Smart-cards – proximity cards (NFC – near field communications), plastic cards, stickers; Card readers – a gadget capable of reading and identifying a card or other devices;

31. ACTIVATION OF AVAILABLE BANK SERVICES Growth of bank clients number: 1 000 000 System users (clients) in 1-2 years. Growth up to 5-7 mln during 7-8 years; Average daily closing balance of clients’ accounts: from UAH 100.00 per physical person and by UAH 1,000.00 per legal entity (cashing out restriction); Cutting costs of bank infrastructure maintenance (implementation of Internet-banking and payment technologies allowed Bank of America to make redundant 10% of its branches); At least a twofold increase of money transfer transactions made via available cash transfer systems; Instant micro- and nano crediting and services to bank clients; Single point of contact for making all kinds of payments: offering new financial services (taxes and other charges and payments).

32. SYSTEM MODEL

33. Implementing “single point of contact”www.ukrshop.com Already connected To be connected in 2010 Utility payments, fiscal and other payments Tickets Fines Music Video Photo Flowers Gifts other… Mobile communication services Internet Television Software Periodicals Electronic currencies Payment cards Books Insurance

34. Digital goods: movies, CD, DVD, mp3 music, audio-books, e-books, photo, software; Mobile content, mobile communication service providers, PIN-codes; Domestic long distance and world communication, IP telephony, Internet access; Periodicals and newspapers, reference information; Housing and utility service payments, television; Internet services, hosting, domains, mail services, web design; Casino, gaming and entertainment portals, online games; Meetings, chats, forums, blogs; Health and beauty, sports ware, perfumes and cosmetics; Charity, psychological support, social networks Education, research papers, diplomas, translations; Advertisement and marketing, promotion and optimization Finances, insurance, Forex, payment systems, depositing and cashing out electronic currencies, electronic currency exchange; Legal services, business analysis; Tourism services, avia and railway tickets, hotels; Household goods, food products, gifts, accessories, children’s goods; Other… MARKETS AND CASH FLOWS

35. CONTACTS Thank you for your attention! We shall be happy to answer your questions Payment Systems Ltd. info@paymentsystems.com.ua Tel./Fax: +38 044 585 8983