Creating Products and Services That Sell Well

2. TODAY’S YOUTH AND COMMERCE
Highly engaged
and social but
difficult to convert
Limited payment
options for the
youth market
There are 80M
U18’s in the US,
almost none with
a credit card
8-18 age group
represents over
$200Bn in purchasing
power annually
(in the USA alone)
2Piper Jaffray 2013 “Taking Stock with Teens” Market Research Project & 2012 Harris Poll

3. 3
LEADING
ENT. CO.
FINED $3
MILLION
For Violating Childrens’
Privacy
NJ Sues App
Developer
For Alleged Violations of
Children’s Online Privacy
Protection Act
IN THE NEWS
Large technology
company settles
over children’s
app bills
$100,000,000
Investigated by United
Kingdom government
8-Year-Old Girl
Charged $1,400 For
Buying Smurfberries
In Capcom’s ‘Smurf’s Village
for the Iphone
DAUGHTER
BUYS CAR ON
EBAY
Using Dad’s Iphone
NEW GLOBAL
SOCIAL
MEDIA
LAWSUIT
Highlights trouble with under
18s and Virtual Currency
NEW COPPA REGULATIONS
In place as of July 1, 2013
FRIENDLY FRAUD
Prevalent with youth shoppers

4. VIRTUAL PIGGY IS THE SOLUTION
Virtual Piggy is the safe way for kids and teens to
save, shop and give online, within limits parents set.
Competitive advantage over
Non-VP merchants
Reduce transactional friction
Directly monetize and market
to the under 18 demographic
Limit charge backs and
friendly fraud
Access to greater base
of potential users
“With Virtual Piggy kids shop
at their favorite sites ....think
Paypal for kids.”
4

5. 5
HOW IT WORKS - MERCHANT
One stop youth engagement and monetization platform
INTEGRATION
-- Easy integration via Form POST or SOAP API methods
-- Uses existing payment flow and gateway
-- VP collects no funds, you remain the merchant of record
CO-MARKETING
-- Virtual Piggy can help with user acquisition and conversions.
-- Our integrated campaigns drive traffic and transactions.
MERCHANT PROMOTIONAL OFFERS
-- Pushed to Virtual Piggy users in a CARU approved manner
-- Allows under 13’s to receive messages via parent control

6. 6
COPPA COMPLIANT SHOPPING
One stop safe checkout with limited friction
REGULAR CHECKOUT
VIRTUAL PIGGY CHECKOUT - COPPA COMPLIANT
Results in breach of COPPA and increased friction:
• Cart Drop-off • Loss of sale • Friendly Fraud
Youth skips filling out personal info.
Virtual Piggy provides parent’s credentials to merchant.
Select
Checkout
Select Checkout
with Virtual Piggy
Form of
Payment
Sign In
Options
Login to Virtual
Piggy Account
CC &
Billing
Info
Shipping
Info
Review &
Place Order
Review
& Place
Order

7. 7
HOW IT WORKS - CONSUMER
Getting started with Virtual Piggy
1 2
SIGN UP
Free for parents and youth, create a
Virtual Piggy account with payment
source and address.
MANAGE
Add a profile for each child, setting a
monthly allowance and spending controls.
PURCHASE
Checkout with Virtual Piggy at approved stores,
using only their username and password.
DISCOVER
Find new merchants via offers, gift
cards and wish list.
43

8. 8
VIRTUAL PIGGY DASHBOARD - CONSUMER
a
d e
h i
gf
b c
LEGEND
a. Current Balance
b. Savings
c. Merchant Offers and Money Tips
d. Youth Accounts
e. Child Account Controls
f. Gift Cards
g. Wish List to send to family and friends
h. One Time Deposits
i. Transaction History

9. CO-PROMOTION WITH VIRTUAL PIGGY
ENGAGE THE
UNDER 18 CONSUMER
Access to a difficult demographic
DRIVE TRAFFIC AND
TRANSACTIONS
Extend Customer LTV
COMPETITIVE
ADVANTAGE
INCREASE BRAND
AWARENESS
Enhance Brand Loyalty
9

10. 10
CO-MARKETING
CLAIRE’S
-- Co-promotion with Claire’s, Sony
Pictures, and One Direction.
-- Gave out 1.8M handouts in Claire’s
(1500) Stores.
-- Free One Direction “This is Us” movie
tickets to Claire’s online customers.
FATHEAD
-- Every REAL.BIG. Fathead™ purchase
from April - Nov includes a Virtual Piggy
Fathead (100k distribution).
-- 30% off promotion for all Virtual Piggy
members.
ZING/WARPED TOUR
-- VP Booth at Vans Warped Tour all summer.
-- Zing Revolution customers could use VP to
checkout and get a free clear case.
-- Virtual Piggy guitar picks given out at shows.

11. 11
CO-MARKETING - GAMING
HABBO
-- Habbo members who register for Virtual
Piggy get an exclusive rare Golden Pig
and Piggy Flag in-game item.
-- Habbo Reach:
- More than 5,000,000 unique
visitors in game monthly
- 1.2 million fans on Facebook
GAIA ONLINE
-- Gaia Online users were offered various
incentives to purchase Gaia Cash using
Virtual Piggy.
-- Visitors to the Virtual Piggy page within
Gaia Online got free Virtual Piggy
clothing for their in-game avatar.
-- 60,781 Virtual Piggy shirts redeemed
by Gaia users.

12. 12
PAYMENT PROCESSORS
PARTNER NETWORK
RETAIL AND GAMING CHANNEL
DIGITAL GIFT CARD CHANNEL$

13. Jason Morrell
jason@virtualpiggy.com
310-489-9035