Slide 1

Innovations in mobile
Mobile Payment

Developing flexible mobile payment
MNO and bank approach
mobile payment native &
value added m-commerce acquiring
Washington, February 23, 2010

A1 Bank and Paybox Logos

mCommerce | mobilkom austria group

Slide 2

Agenda

• History of m-commerce and m-payment
• A1 Bank and Paybox
• Outlook and International

Slide 3

Introduction

Examples:
Internet Payment & ticketing

Images representing internet and cinema

Slide 4

Vision, pay a whole range of products and services via your mobile

Images showing various ways of people to purchase products and services that can be paid via mobile. For example: Visits a client together with a colleague by car and pays the parking fee with mobile phone or Next client meeting in an m-payment enabled restaurant.

Slide 5

Our solutions portfolio and references

Image showing the activation and loyalty to m-shopping, m-ticketing, m-gambling, m-business, and m-transporation through mobile payment with an application and infrastructure service.

Slide 6

Example handy parking

Promotion - Attachment to parking violation tickets

Image of a parking violation ticket

Slide 7

Example handyticketing - 1 solution for every Austrian capital*

* Wien, Graz, Linz, Salzburg, Klagenfurt, Innsbruck

Activation and Common usability

Permanent optimisation

• Reporting
• Analyzing
• Usability
• Profiling
• Activation
• Campaigning
• Vouchering
• Quizzing & Voting
• Cross-selling

Image of Stadbus-Tickets mit SMS

Slide 8

With a Single Touch …

Image of NFC

• ...buy a train ticket from Austrian Railways for rides in entire Austria
• ...buy parking tickets, place lottery bets, use vouchers or buy mobile products
• ...buy a metro ticket for rides in Vienna
• ...buy Snacks & Drinks from vending machines in entire Austria

Slide 9

Example mTicketing payment of higher amounts

Image of A1 SMS Ticket with SMS-Code an 0664 660 6000

Slide 10

Example mTicketing payment of higher amounts (Continued)

Life Ball 100% Mobile Tickets
Robbie Williams 9,000 Mobile Concert Tickets at the A1 SMS Gate

Slide 11

M-Payment Scope

Hierarchy chart entitled m-payment scope using a Nokia SmartPhone Device

Chart identifies three methods of payments: Less than 10 € -- MICRO payment, Less than 100 € -- MEDIUM payment and Greater than --MACRO payment through Trx. After receiving the Trx it can be prepaid or aggregation which does acquiring, mobile authorization and issuing.

Image of Nokia SmartPhone Device showing how a consumer can pay for services through paybox.

• Phone Bill (pre & post paid)
• Low enabling barrier (no registration)

• Stored Value Account
• Compromise but high barrier for usage

• Direct Debit
• Good business case acceptance to be tested

Image of MasterCard

• Ideal instrument but complex regulations

Image of Visa and MasterCard

• Easy payment instrument but difficult business case

Slide 12

Bill presentment via phone bill for A1 users

Image of a Phone Bill

Slide 13

Overview of transactions in the Web (paybox)

Image of an website with transactions and services

Slide 14

Payment confirmation via SMS and e-mail (optional)

Image of Email and SMS

Slide 15

Our payment strategy contains micro-, medium- and macro payments

Chart identifies three methods of payments: Acquiring less than 10 € -- MICRO payment, Less than 100 € -- MEDIUM payment and Greater than --MACRO payment through Trx. After receiving the Trx it can be prepaid or accumulation through the less than -- Micro payment. Issuring methods from paybox are through direct debit stored value account, phone bill or prepaid cards.

Role of mobilkom austria today

Slide 16

paybox – Interoperability via phone bill

Diagram identifies three services A1 mobilkom austria, paybox, and orange how customers can pay.

mCommerce Solutions for A1: Private Customers pay via their phone bill (without registration)
Central Merchants for paybox: Business customers, prepaid customers and customers from other networks pay via paybox Direct Debit
mCommerce Solutions for orange: Private Customers pay via their phone bill without registration.

Slide 17

m-commerce with A1 Bank and paybox

Diagram showing the percentage of A1 Bank shares of 100% and paybox shares of 83.3% with customers using T-mobile at 16.3% through mCommerce of orange and telering.

A1 Bank checklist of items:

• Clearing of pyament solutions
• Payment guarantee
• Prepaid payment guarantee
• Trend-setting in mobile transactions

paybox checklist of items:

• Leading mobile payment solutionin Austria
• Secure payment and transfer
• Open for customers of any operator

Slide 18

mobilkom – Global leader in m-Payment and m-Commerce

Chart entitled M-commerce /m-payment ranking shoring on the x-axis the relative m-payment maturity (Compared to mature market) and on the y-axis market maturity stage for 21 countries. On the y-axis for market maturity embryonic stage was for the Colombia, Slovakia, Czech, Republic, Venezuela, France, and USA countries which had a relative m-payment maturity 0% to about 15%. For market maturity early stage was for the Belgium, Germany, UK, The Netherlands, Switzerland, Portugal, Estonia, Finland, Italy and Sweden countries which had a relative m-payment maturity 20% to about 53%. For market maturity developing stage was for the Norway, Spain, Croatia, and Chaia countries which had a relative m-payment maturity 60% to about 80%. For market maturity advanced stage was for the Austria, Korea, Singapore, and Japan countries which had a relative m-payment maturity 75% to about 85%

Success Factors for Austria, Korea, Singapore and Japan countries are:

• Interoperable Payment as Enabler
• Nationwide standardized offer for all services
• Customer benefit clearly recognized
• Marketed under one brand
• Merchant Acquiring through one entity
• Unified platform strategy

Source: Arthur D. Little analysis

Slide 19

A1 Visa Card

Image of A1 Visa Card

Slide 20

A1 Visa Card, exclusive for A1 customers

Image of Visa Classic Card to show the following beneifts and services

Insurance Package

• handset theft
• buyer protection
• travel insturance

Mobil-points

• faster to new handsets
• earn Mobilpoints

Paybox

• usage of mobile services
• secure payment instrument

Service around the clock

• free A1 visa card Serviceline
• online customer self care

SMS security package

• Transaction confirmation
• SMS check of account balance
• help functions

Slide 21

Our strategy – payment is local and develops inside out

International Scope

• International Micropayments (e.g. M-parking of German consumer in Vienna)
• International Macropayments (e.g. Internet shoppping of Austrian Consumer in Germany)

National Scope

• National Micropayments (e.g. M-parking even via phone bill)
• National Macropayments (e.g. Internet, real world shopping)

Telco Scope

• Micropayments - Digital Content via phone bill (e.g. M-parking even via phone bill)

Start competitive with clear differentiation, but quickly build national compatibility

Slide 22

Pay a whole range of products and services via your mobile…

Images showing various ways of people to purchase products and services that can be paid via mobile. For example: Buys the tramway ticket on his way to the station and avoids the queues in front of the ticket machines or It is time for a coffee, in Vienna there are several m-pyament coffee shops.

Slide 23

Contact

Thank you!

Peter Lohmann
head of related affairs
+43 (0) 664 331 4170
Email [email protected]

mobilkom austria AG
Obere Donausstr. 33
A-1020 Wien