The Largest Independent Payment Infrastructure - Germany is still extremely cash-driven - Especially Low-Income Population Extensively Uses Cash - Germany’s Largest Independent Payment Infrastructure - Strong Partner Network Allows for a Rollout of Services across Europe

1. 1
The Largest Independent Payment Infrastructure
“Disruptive Innovationen in der
Finanzwirtschaft”
Vortrag 02.03.2016

2. 2
High Income Population is Overserved with Payment Options

3. 3
Whereas Low Income Population is Underserved and existing
Payment Options are inconvenient and expensive

4. 4
Germany is still extremely cash-driven
Credit Card
Penetration in GER
Online Banking
Usage in GER
Source: “Zahlungsverhalten in Deutschland”,
Deutsche Bundesbank 2014
Source: BITKOM; Basis: Eurostaat
(Stand: 02/2015)
Payment Behavior in
German Retail
Source: “Zahlungsverhalten in Deutschland”,
Deutsche Bundesbank 2014
Cash Debit
Card
Credit
Card
No User User

5. 5
Especially Low-Income Population Extensively Uses Cash
Usage of Payment Methods According to Net Income:
Net Income
74,7%
55,0%
43,6%
0% 20% 40% 60% 80% 100%
below 1500 €
1500 up to 3.000 €
above 3.000 €
Cash Debit Card Credit Card
Bank Transfer OthersOnline Payment

6. 6
Cra$smen
2.100€ Gross Income per months

7. 7
Saleswomen /-men
1.400€ Gross Income per months

8. 8
Waitress / Waiter
1.300€ Gross Income per months

9. 9
HaircuAer
1.200€ Gross Income per months

10. 10
Total: >20 mn people in GER
Taxi Driver
1.400€ Gross Income per months

11. 11
CPS has Built Germany’s Largest Independent Payment
Infrastructure
No. of Bank Branches in Comparison to CPS’
Network (as of today)
Products
Sparkasse 14,874
Volksbank/Raiffeisenbank 12,770
Cash Payment Solutions 9,831
Commerzbank 1,200
Postbank 1,092
HypoVereinsbank 796
Deutsche Bank 753
Deposits, Withdrawals & Money Transfers
n CPS will conveniently combine most basic banking needs like deposits,
withdrawals & money transfers with grocery shopping
Total: ~10,000 POS
Online Payment Service
n With CPS’ services, more than 7,500 e-commerce clients can offer their
customers a complementary, free-of-charge cash payment method
Offline Invoicing
n Low-income consumers can pay any type of bill like their utilities at
~10,000 stores instead of visiting one of the few utility branches or a
banking branch
**+3,000 in the last 4 months
1.822 Filialen
720 Filialen 314 Filialen
802 Filialen
188 Filialen
2.207 Filialen
205 Filialen
3.573 Filialen

12. 12
Payment Process Barcode
Customer Receives Barcode
Customer receives a bill or shops
online and either receives a payment
slip or text message with a barcode
Convenient Payment
The customer conveniently pays at
local retail partners with ~10,000
P O S n a t i o n w i d e
https://www.barzahlen.de/assets/video/the-
way-it-works.mp4
R e a l T i m e P a y m e n t
Confirmation
The cash register system confirms
the payment real-time and the
respective client gets notified
immediately that the payment is
settled
CPS Allows Consumers to Complete Most Basic Banking
Services at ~10,000 POS More Conveniently and Free of Charge
Printout Mobile

13. 13
Cash Withdrawal
Bank Deposit
CPS Serves 20mn+ Consumers and Replaces Traditional
Banking Infrastructure
Pipeline
# of POS / cash points
~6,000
# trained cashier
100,000
E-Commerce
Gaming
Travel
Segmente
2013/20142015/20162016+
Kunden POS
„Bringing Cash
Online“
“Replacing
traditional banking
infrastructure”
“Bringing Invoices
to the Next Level”
# of POS / cash points
15,000+
# trained cashier
250,000+
# of POS / cash points
9,000+
# trained cashier
150,000+
Utilities
Payment Collection
Insurance
Local Authorities
Money Transfer
Telecommunications
Housing Associations
2
1
3
Detailliert auf Folgeseite

14. 14
CPS‘ Payment Infrastructure is Used by Direct Banks to Allow Consumers
to Withdraw Money from the Bank Account or Deposit Money
Key Advantages for Banks
n Significantly less costs for CPS cash-outs than ATM networks charge
direct banks for every withdrawal
n Dense POS network leads to an increased customer satisfaction
n No customers sent to competitor, independent infrastructure
n Innovative image and differentiation from competitors
Advantages for Banks
Key Advantages for Direct Banking Customers
n First solution to cash-in at all
n Vastly increased availability of points for cash-outs (~10,000 POS, more
than every privately held bank in Germany)
n Basic banking needs integrated in everyday life, no extra way to ATM or
banking branches
n Better opening hours, accessible 20/6 per week
Advantages for Direct Banking Customers
Choose
Cash-In / Cash-
Out
Customer sees on
map closest stores
nearby
Choose
Amount
Customer chooses
amount and confirms
transac:on with
personal PIN code
Barcode is
generated and
scanned
Barcode is scanned or
typed in by cashier
and transac:on is
se?led in real-:me

15. Feedback from Customers

16. 16
Feedback von Kunden zu der neuen Lösung Number26 und
Barzahlen.de bei Facebook, Twitter & Co.
Kundenfeedback

17. 17
Feedback von Kunden zu der neuen Lösung Number26 und
Barzahlen.de bei Facebook, Twitter & Co.
Kundenfeedback

18. 18
Feedback von Kunden zu der neuen Lösung Number26 und
Barzahlen.de bei Facebook, Twitter & Co.
Kundenfeedback

19. 19
Head of Telecommunication
and Media
Jörg Kubitzki
Tel.: +49 30 346 46 16-37
Mobil: +49 177 200 20 62
E-Mail: joerg.kubitzki@barzahlen.de
Your Personal Contacts at CPS
Contact Information
Founder and
Managing Director
Sebastian Seifert
Tel.: +49 30 346 46 16-17
Mobil: +49 172 563 76 42
E-Mail: sebastian.seifert@barzahlen.de

20. 20
n Lower costs to process
cash payments to
merchants
n More customer-friendly
cash payments due to
more flexible opening
hours and a better POS
density
n Payment behavior within
utilities sector:
CPS Provides a Powerful Tool for Merchants to Lower
Payment Default Rates Along the Payment Process
Cut-offBill
1. Payment
Reminder
2. Payment
Reminder
n Case studies show usage
rates of ~ 8%
n Monetizing accessible cash
income
n Faster payments due to high
convenience for cash
consumers
3. Payment
Reminder
12 days
prior to cut-off
4. Payment
Reminder
3 days
prior to cut-off
External Payment
Collection
n Case studies show usage
rates of more than 70%
n Monetizing accessible cash
income
n Consumers can borrow
money from friends /
relatives to prevent cut-off
n Payment by Barcode can be
easily paid by a third party
n Real-time payment
confirmation allows short-
term cash-in, even on
Sundays
n Performed by
an external
service
provider
n Barzahlen
corresponds
with:
- Tesch Inkasso
- Universum
Group
* Payment process in case of an utility (similar in every industry with mass consumer business including insurances and local authorities)
Value-AddbyCPSPaym.Process*
80%
15%
5% Cash
Bank transfer
Direct debit

21. 21
CPS’ Strong Partner Network Allows for a Rollout of Services
across Europe
Source: http://www.dm-drogeriemarkt.at/at_homepage/unternehmen/zahlen_und_fakten/unternehmenszahlen/ I http://www.rewe-group.com/vertriebslinien/?pageSection=discount-international I http://
www.telekom.com/weltweit I http://www.metrogroup.de/#standorte-weltweit
Country
No. of
POS
POS Partners
POS / 1mn
Inhabitants
807
537
510
580
763
270
387
181
111
93
175
70
67
+ 973 POS in 16 other European countries
19
27
25
67
55
72
55
Number of Total POS of Key Partners by Country:
348
Austria 3095 360.7
Czech Rep. 807 76.7
Romania 580 28.8
Slovakia 387 71.4
Italy 763 12.6
Hungary 510 51.5
Greece 537 49.6
Poland 270 7.0
Croatia 348 81.2
Netherlands 181 10.8
3095
+ 3,600 international
POS in the last 3 months