Innovative Payment Solutions, Inc. · OTC:IPSI
Innovative Payment Solutions — Qpagos — Investor Presentation (May 2018)
26 slides from Innovative Payment Solutions's investor presentation, May 11, 2018
Slide 1: QPAGOS: Strategic Player in the Growing Electronic Payments Sector
Slide 2: Forward Looking Statements
Forward Looking Statements QPAGOS This presentation includes forward-looking statements within the meaning of the private Securities Litigation reform Act of 1995, as amended, on QPAGOS' current expectations and projections about future events. In some cases forward-looking statements can be identif
Slide 3: QPAGOS is a leading electronic payment solutions developer
QPAGOS is a leading electronic payment solutions developer, processor and supplier to financial institutions, merchants and service providers in Mexico. The Company helps consumers and merchants € Efficiently with its service providers Ecosystem across service kiosks, id a ten-year renewable ss Euro
Slide 4: Our Business: QPAGOS' Electronic Payment Solutions
» | Our Business QPAGOS QPAGOS’ Electronic Payment Solutions QPAGOS mobile cashiers assists small businesses by enabling them to receive payments via their mobile devices. Q Mobile Cashiers * . QPAGOS “Monedero" allows users to do QPAGOS Monedero’ transactions through their mobile devices ina secure
Slide 5: Our Ecosystem: Multiple Payments through Multiple Devices
» | Our Ecosystem QPAGOS Multiple Payments through Multiple Devices Kiosk Pc Advertising Win-Terminal Comprehensive Solution Sets: QPAGOS' solutions can be tailored and customized to meet clients’ needs. QPAGOS' platform covers payments to retailers, governments, telecom, utilities and more, through
Slide 6: Electronic Wallet - Monedero
» | Our Business QPAGOS Electronic Wallet - Monedero Qpagos QPAGOS ecosystem provides service providers and users an innovative, convenient and secure payment experience. QPAGOS' kiosks are designed to tackle the problems consumers face when dealing with cash transactions. They're equipped with tran
Slide 7: Our Business: Self Service Kiosks
Our Business Self Service Kiosks QPAGOS
Slide 8: Sources of Revenue
QPAGOS Our Business Sources of Revenue Payment Processing Fees Service Provider Commissions & Fees Kiosk Sales & Rentals Advertisement Fees Fixed transaction fees Solutions Development Prepaid mobile minutes and data PIN-on-receipt (iTunes, Xbox, etc.) Utilities, National Lottery, Transport, etc. Ki
Slide 9: QPAGOS Payment Gateway
¥ | Our Business QPAGOS QPAGOS Payment Gateway Processing Platform: Payments are collected through different devices and interfaces such as self-service kiosks, WIN terminals, Java terminals, XML connections, and mobile apps allowing for end-to-end controls of all financial operations, providing rea
Slide 10: Clients & Distribution Channels
» | Our Business QPAGOS Clients & Distribution Channels QPAGOS over 10 payment services are accessed through a distribution network along several verticals, principally: Retailers + An agent network of independent businesses with agents: high customer traffic in which kiosks are deployed; J Governme
Slide 11: Value Proposition
< | Value Proposition QPAGOS B2C Electronic Payment Solutions + Intuitive and user-friendly touch screens in Qpagos self-service kiosks + Direct interaction with customers conve targeted by geography or other variables ntly + Promotions on a real-time basis through banners in transaction screen, adv
Slide 12: Our Business: Current Footprint
Q Our Business QPAGOS Current Footprint
Slide 13: Future Expansion
¥ | Our Business Future Expansion Having already integrated over 140+ service providers in our platform accessible through over 700 kiosks nationwide, QPAGOS considers the U.S. to Mexico over $28 Bill Remittance flows a natural expansion opportunity QPAGOS Milones de délares Milion USD > 25970 201s
Slide 14: Over 140 Payment Services
< | Over 140 Payment Services QPAGOS QPAGOS' revenue derives from fees and commissions on cash2digital payments to over 140 mainstream service providers: mobile networks, government agencies, consumer services and mortgage providers. Cooperating service providers include: Movistar, Dish, Sky, Telcel
Slide 15: Cash-dominated society for retail
Sciety for retail jed in cash, while penetration! of electronic payment services, pl mc jes such as credit and ‘ cards and point of sale terminals, significar lags. behind more
Slide 16: Market Analysis: Macroeconomics
¥ | Market Analysis QPAGOS Macroeconomics Population vs. GDP Growth Mexico is the 15th largest world economy and 2nd largest economy in Latin America, after Brazil. Mexico's population has reached nearly 130 million and has a GDP exceeding $1 trillion. At over $18,500 per capita; it is among the hig
Slide 17: Market Analysis: Macroeconomics and Trade
¥ | Market Analysis QPAGOS Macroeconomics Mexico is the United States’ second-largest export market and third-largest source of imports. In 2016, two-way trade in goods and services exceeded $550 billion. 90% of Mexico trade is through free trade agreements with 46 countries. Mexico is part of the T
Slide 18: Market Analysis: E-commerce
Q Market Analysis QPAGOS E-commerce The advent of e-commerce is on the rise in Latin America as well as Mexico. The number of digital buyers in Mexico is projected to grow from 7.19 million in 2016 to around 14.88 million in 2021. (Statista) According to a recent AT Kearny study, the revenue generat
Slide 19: Market Analysis: Telecommunications
¥ | Market Analysis QPAGOS Telecommunications Mexico has over 107 million mobile subscribers, making it the second largest mobile subscription base in the Latin American region. 89% of the subscribers are under prepaid plans. Mobile market is estimated to be worth USD $12 billion overall (PwC Teleco
Slide 20: Target Market
QPAGOS . | Target Market Mexico remains a cash-dominated society; approximately 65% of Mexicans are unbanked, and 80% of the retail payments are exchanged in cash, aggregating approximately 50% of total consumer spending. The penetration of electronic payment services, such as credit and debit cards
Slide 21: Total Addressable Mexican Kiosk Market
Total Addressable Mexican Kiosk Market QPAGOS ‘Addressable Locations ‘Addressable Payments per Month Retail 49,000 Convenience Stores, Supermarkets, Pharmacies Financial 80,000 Banks, Micro-lenders, Bank Correspondents, ATMs Mom & Pop 85,000 10% of the 850,000 family owned bodegas’ TOTAL 214,000 Sou
Slide 22: 2017 annual revenue grew 46% year over year
‘As QPAGOS continues to position itself as a technology innovator in Mexico's growing electronic payments sector, the Company's 2017 annual revenue grew 46% year over year. ‘As for semi-annual and year over year revenue growths, the Company also delivered favorable results in 2017, growing 55% YOY.
Slide 23: Financials: Quarterly Revenues
Q Financials QPAGOS Revenui Quarterly Revenues 2017 $1,200,000 $ 1,000,000 $800,000 $600,000 $400,000 $200,000 o—_ so a a @ cy
Slide 24: Our Team
Q Our Team QPAGOS QPAGOS'") management team has vast experiences and knowledge in the Hispanic market, financial services, IT, telecom, and payment industries. Z Their broad international background and resources give QPAGOS a solid) foundation for business expansion and growth across: multiple mark
Slide 25: Our Board of Directors
QPAGOS Our Board of Directors Gaston Pereira, CEO Andrey Novikov, COO Vast experience and knowledge in Latin America Prior QIWI (A publicly-traded Russian payment and US. banking, telecom and payment service provider) Vice President, industries; Business Development. * Citibank + Bell Atlantic Exper
Slide 26: QPAGOS
WW QPAGOS