0. Overview - June 2013
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1. What is smartPay?
SmartPay (powered by BillFloat®) is a lease-to-own plan that lets consumers purchase products with convenient monthly payments
A payment option for consumers
Merchants are paid in full on approval
Works both online and in-store
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2. WHY OFFER SMARTPAY Easy online application (NO PAPER)
SmartPay is a new “tender type” that customers can use
We reimburse you for the full retail value (plus sales taxes) of the items you sell
Minimum initial payment - one of 10 easy payments deducted from consumer’s debit card automatically
Dealer does not collect any payment from consumer, SmartPay collects payments online
No long term commitments
Less than perfect credit ok
Instant decision – high approval rates
“90 Days Same as Cash” Early Payoff Option gives consumer a fee free option
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3. What do I need to offer smartpay?
In Store Option
Establish dedicated computer in your store for consumers to apply
Mac or PC with Chrome, Firefox 3.6+ or Internet Explorer 8+
Bookmark your specific SmartPay url
Each store can login with their unique store login id
Enroll for program by providing basic information to SmartPay
Obtain point-of-sale marketing materials from your BillFloat sales rep or print authorized marketing materials yourself
Familiarize yourself with how to use the SmartPay system
Start Selling!
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4. HOW TO SIGN UP FOR SMARTPAY
In Store Option
Log onto
Provide basic business information, Bank account to receive ACH payments or virtual debit card payments and agree to SmartPay terms and conditions
3. You will be presented with login ID for your stores to access the SmartPay store portal and process SmartPay transactions:
Each store will have a unique Store Login ID that uniquely identifies the location
This Store Login ID determines the bank account where the ACH payments are sent
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5. What do I need to offer smartpay?
Online Option
Enroll for program by signing SmartPay Agreement
Integrate Web Assets and API into your web site check –out pages
Utilize your own in-house IT resources
Access a SmartPay Certified IT Resource
Start selling!
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6. How do I get Paid for What I sell Using smartpay
SmartPay pays you directly for the items you sell and you have two payment options to choose from:
ACH initiated next day; dealer receives funds in 3-5 days (no interchange)
Virtual Debit Card – you run card number on your Merchant card processing terminal and receive funds like any other debit/credit card transaction (results in interchange fee)
Notes:
The initial payment is collected directly from the consumer’s debit card by SmartPay
You pay sales tax on SmartPay like any other transaction
Payment will be for full transaction amount including tax
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7. product overview Easy application process Real-time decision
Lease to own a shopping cart up to $1,500
90 days same as cash, or
Payment term 10 installments
First installment payment of 20% due at time of purchase
Total financed price equal to 100% of original price
SmartPay collects all funds from consumer
Includes accessories and equipment
Easy application process
Online application process completed in minutes
Real-time decision
Decision result completed in seconds
Originated and funded by BillFloat
Direct transfer and repayment of funds
Funds transferred to merchants' bank account
Monthly debit to consumer’s account
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8. MVNO Benefits 60M 10% 50% Incremental sales larger cart sizes
Drive Higher Dollar Sales
No Risk to MVNO
MVNO Paid Immediately
Drive Incremental Sales
Drive Increased Loyalty
10%
Incremental sales
50%
larger cart sizes
60M
credit challenged customer
Source: Billfloat experience with large national wireless provider
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9. End user customer Benefits
Put Mobile Device In the Hands of Your Entire Family
Easy Entry to Higher End Smartphones and Tablets
Financing or 90 Days Same as Cash
Source: Billfloat experience with large national wireless provider
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10. Which customers are eligible?
PLAN ELIBILITY
18 years old
Valid Social Security Number
Debit Card linked to a bank account
$1000 pre-tax monthly income
RESTRICTIONS
No pre-paid cards accepted
Valid for tangible goods only (phones, accessories, airtime)
Must have enough available funds in bank account to cover the initial payment
Current approvals running 75%
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11. Device financing enablement options
Online Solution
Sign Contract
Share API documentation
Development with API/Testing
Confirm financial operations
Launch Custom Web Portal
Dealer associate qualifies customer
Customer must have the following
address
18 years of age
Minimum $1,000 gross monthly income
Debit card tied to a bank account
Social security number
Customer fills out online application
Dealer associate enters “Store Login ID” as part of the online application process. The Store Login ID tells BillFloat which location to reimburse for the items
Payments get deposited daily into your bank account via ACH or a virtual debit card transaction is created for real time processing of transaction
In-Store Solution
Dealer associate qualifies customer
Customer must have the following
address
18 years of age
Minimum $1,000 gross monthly income
Debit card tied to a bank account
Social security number
Customer fills out online application
Dealer associate enters “Store Login ID” as part of the online application process
The Store Login ID tells BillFloat which location to reimburse for the items
Payments get deposited daily into your bank account via ACH or a virtual debit card transaction is created for real time processing of transaction
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12. confidential & proprietary
Appendix
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13. Smartpay consumer payment terms
Approved Amount*
Customer Monthly Income (minimum)
Initial Payment of 20% (Due at Purchase)
9 Additional Monthly Payments
$300
$1,200.00
$59.85
$400
$1,400.00
$79.80
$500
$1,600.00
$99.75
$600
$1,800.00
$119.70
$700
$2,000.00
$139.65
$800
$2,200.00
$159.60
$900
$2,400.00
$179.55
$1,000
$2,600.00
$199.50
* Other factors apply in addition to income, not all customers are approved. This chart shows the maximum approval amount by gross monthly income, some customers are approved for lower amounts than indicated by this chart
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14. Online Solution product overview
You push value prop
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15. Online Solution product overview
You also message on product page
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16. Online Solution product overview
You integrate in shopping cart with API
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17. Online Solution product overview
Consumer fills application
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18. Online Solution product overview
You pass add’l data via API
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19. Online Solution product overview
We decision
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20. Online Solution product overview
Consumer signs terms
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21. Online Solution product overview
Payment complete
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22. In store SmartPay Application Process
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23. In store SmartPay Application Process (cont.)
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24. In store SmartPay Application Process(cont.)
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25. In store SmartPay Application Process(cont.)
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26. In store SmartPay Application Process(cont.)
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27. In store SmartPay Application Process(cont.)
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28. Additional FAQs
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29. How do carrier money back guarantees work with smartpay?
Carrier standard money-back guarantees are supported by SmartPay with standard guidelines
Return within carrier’s allowed days of purchase and allowed minutes of talk time on handset
Associate must process return on SmartPay Portal
Customer must provide DOB and last 4 digits of SSN
Lookup consumer, click “Start Processing Return” and select amount of return
Partial returns are supported
Funds for the initial payment will be returned to the consumer’s debit card directly
Funds for the returned phone will be debited from the following day’s ACH transfer to the dealer, or if dealer was paid using a Virtual Debit Card, processes debit card return
Consumer cannot receive cash back, return must be processed using Payment Support
Line of service is canceled
1st month of service return process follows current guidelines
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30. How do taxes work with smartpay?
BillFloat pays the dealer for the full price of the items you sell, including applicable sales tax upon settlement
Dealer treats the transaction like any other tender type
BillFloat deals with all tax consequences of the lease, dealer has no involvement
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31. Faqs
1. Can the dealers get a copy of the deck with the rules and screenshots?
There is document recently sent to the AMs that can be used to train.
2. Can we get the customer application to be able to be pulled up on a tablet?
Not at this time.
3. If the customer decides to wait before purchasing, and later goes to another store, do they have to go through the application process again?
No, as long as the application is accessed within 72 hours, you can look up and find an approved basket amount
4. How much is the fee for BillFloat?
About double MSRP.  But they can pay off the amount early and save on the fees. We have a 90 days same as cash offering, which means
consumers pay the same price as if they were taking the device out of the
store as long as they payoff within 90 days. Even after the “same as cash”
period ends, consumers can save money by paying early. For example, a
consumer that pays off after 5 payments saves half the fees!
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32. Faqs (cont.)
5. When refunded, do they get all their money back? Yes 6. What is the earliest a customer can pay off what they owe and avoid fees? It can be as early as the next day. 7. What money does the dealer collect from the customer? Only fees or charges for items not on the lease. Dealer does not collect on behalf of SmartPay. 8. Do all handsets, airtime and accessories qualify for BillFloat? Yes, but airtime must be first month only, and all other goods must be tangible goods. 9. How long does it take for the funds to go in the dealers account via ACH? 3 to 5 business days.
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33. Faqs (cont.)
10. Can the dealer take the sales tax from the customer? No, SmartPay will reimburse the dealer for all costs including sales tax. 11. If the initial payment isn’t in their bank account, what happens? “Funds not available” will show up and the transaction will not proceed, therefore the customer will not be able to proceed with the transaction. 12. In case of a return, how long does it take for the customer to get their money back on their debit card? 1 to 2 business days. 13. Can the customer pre-pay more to get a smaller monthly payment? No, a larger pre-payment would give less months but not make the monthly payment smaller. 14. Can you do this on new and upgrades? Yes, both new and upgrades qualify. If it is an upgrade, the dealer needs to collect the upgrade fee.
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34. Faqs (cont.)
15. What marketing collateral will there be? You will be able to download printable versions of a take-one flyer, poster and pricing tags from the SmartPay portal, phone wigglers are also available from your SmartPay representative 16. How do we show this transaction in our POS system? It depends on your POS system. 17. Does the way SmartPay handle sales taxes present risk for me as a dealer? No, SmartPay reimburses you for the full retail amount of the sale including sales taxes. You treat SmartPay like any other tender type. SmartPay deals with collecting taxes from the consumer. 18. Can two different customers use the same debit card? No. Only one debit card per one customer. 19. Can I charge customers who use SmartPay a different cost for the items I am selling them as compared to other customers? No. You must charge customers using SmartPay the same price customers get when paying with cash.
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35. EMAIL GETSMARTPAY@BILLFLOAT.COM
THANK YOU
QUESTIONS?
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