E-Payments / Fintech in Asia / Joe Seunghyun Cho / Marvelstone Group / Marvelstone Tech / SGX / 18 Apr 2016 / Singapore / Fintech

1. e-Payments
Joe Seunghyun Cho
Chairman, Marvelstone Group

2. FINTECH
1

3. FINTECH
A technological segment that is
disrupting the functions and systems
of banking and financial services
Fintech provides an opportunity to
supply financial and banking services
to consumers through the power of
technology

4. FINTECH ECOSYSTEM

5. Source: The Pulse of Fintech, 2015 in Review, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) March 9th, 2016
GLOBAL FINTECH INVESTMENTS

6. Source: The Pulse of Fintech, 2015 in Review, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) March 9th, 2016
ASIA FINTECH INVESTMENTS

7. Source: The Pulse of Fintech, 2015 in Review, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) March 9th, 2016
ASIA FINTECH INVESTMENTS

8. E-PAYMENTS
2

9. What is e-Payments?
Transfers of value which are initiated and/or received using electronic devices
and channels to transmit the instructions.
Source: https://www.betterthancash.org/tools-research/toolkits/payments-measurement/focusing-your-measurement/introduction

10. e-Payments
credit cards, debit cards, prepaid cards
CARD PAYMENTS
DIGITAL PAYMENTS
2
MOBILE PAYMENTS
3
1
PayPal, Bitcoin
mobile wallets, storage value accounts

11. E-PAYMENTS ECOSYSTEM
PAGE 11
Mobile wallet
POS
Digital currency
Mobile money
Direct carrier billingChip & Pin Cards
Contactless Cards
Wearables Stored Value Wallets
Remittance

12. E-PAYMENTS STAKEHOLDERS
01 Non-bank players
Telcos, tech giants and other non-FIs have been
innovating to capture more revenue
02 Local banks
03 Global banks
Have better understanding of local behaviours,
needs and wants as competitive advantage
Strive to win through scale due to their global
business operations

13. E-PAYMENTS PLAYERS

14. IMPORTANCE OF E-PAYMENTS
PAGE 14
Accessibility to financial resources
Limited available funds (cash and cheque) for
transactions. Merchants reluctant to accept big
amounts due to risks.
1
Security
Growing trust and safety in security features
driving consumption in payments.
2
Transparency
Electronic payments offer higher transparency
than cash.
3

15. KEY DRIVERS
PAGE 15
Non-FS Players
Technology giants, telcos
Regulation
Conducive regulatory
environment
Adoption
Increasing adoption of various
forms of payment modes
Technology
Technology is the key enabler of
the Internet and fintech
Consumer
Growing middle class and
millennial adoption
Mobile Penetration
Exponentially increasing mobile
and smartphone penetration

16. GROWTH
&
POTENTIAL
3

17. BUSINESS MODELS
PAGE 17
1. Operator Centric
Operator acts as the acquirer, payment network and issuers
2. Bank Centric
Financial institutions own payment systems; cards payments,
3. Collaborative
Collaboration between banks and operators
4. Peer to Peer
3rd party company that links customers, merchants and bankers.

18. GROWTH STAGES
IDENTIFICATION
Identify the current
problems or gaps in
the market
CONCEPTUALISATIO
NConceptualize a solution
to the pertaining to the
problem
VALIDATION
Iterate and validate all
solutions in order to generate
initial user growth
EXIT & MORE
IPO
Acquisitions,
Cash Cow,
SCALING
Grow, grow, grow.
Measurable KPIs
Market traction
1 2 43
SEED SERIES A SERIES B, C, D.. EXIT
5

19. INVEST
4

20. INVESTMENT CONCERNS
PAGE 20
SCALABILITY SECURITY PATENTS
NICHE COMPLIMENTARY
REVENUE SOURCES
BURN RATE

21. VALUATION METRICS
PE Ratio Profits
EBITDA
Multiple
EV
EBITDA
RevenuesEPS
Growth
IT DEPENDS

22. VALUATION METRICS
Potential of new markets
Potential of expansion in existing markets
Potential of captive audience
POTENTIAL
TRACTION
Quantitative evidence of market demand2
STRENGTH OF MANAGEMENT TEAM
Experienced professionals vs new entrepreneurs
Track record
Potential?
3
1
COMPETITION
Number of competitors and barriers to entry
4

23. THANK
YOU