1. Next Generation Payment Models It’s all about CHOICE March 29, 2006 Martijn Hovinga - BilltoBill

2. Combined outsourced eCommerce payment gateway (PSP) International coverage, focus on Asia, including China PRC Cards & alternative payment methods Agnostic Dedicated to the industry Add-ons: MPI & DCC

3. Conclusions: 1.Offer choice to increase revenue 2.Act local Support methods with installed base 3.Experiment with ‘alternative’ (new?) payment methods 4.Consolidate payment partners

4. http://www.britishairways.com/travel/askbainter/public/en_us?p_search_text=payment%20methods

5. Following forms of payment accepted on Continental.com: American Express, Carte Blanche, Diners Club, Discover Network MasterCard, Visa UATP Cash payment at an Airport Ticket Office, Continental Ticket Office or a Western Union location. Bill Me Later® (U.S. billing addresses only) Online Check by TeleCheck (U.S. billing addresses only) http://www.continental.com

6. http://www.ana.co.jp/eng/int/rsv/pymnt/main.html

8. 4. How do I pay for my booking? There are four ways to pay for your AirAsia booking: Online Booking via the internet i) By MasterCards and Visa Cards ii) By Direct Debit with Maybank2u.com and RHB Bank For flights booked through the Nationwide Call Centre i) By MasterCards and Visa Cards ii) By cash - As an added service and for your convenience, cash payments can now be made at any Alliance Bank branch or Pos Malaysia Branch nationwide iii) By Maybank2u.com http://www.airasia.com/site/en/page.jsp?name=faqs&id=515a5f60-c0a8c85d-1410a850-8438d823#201

9. http://www.nokair.com/nokconnext/aspx/welcome.aspx?currlang=en-US Nok Air: Thailand

10. Conclusions 1 and 2: Offer choice to increase conversion rate > increase revenue Act local (trust, ‘perceived’ comfort & convenience) As a minimum, support methods with installed base

11. Next generation payment methods Only few success stories: PayPal, ??? Most of them failed or struggle: DigiCash/eCash, Kleline’s K-wallet, SET, Mondex, Paybox, Way2Pay, Wally Card, ………………………………………………

12. Common mistake: unable to reach critical mass: Lack of trust Too complex for consumers No incentive (carrot or stick) for consumers to using it No (respectable) merchants –too expensive and/or rules too rigid for merchants –mostly applied in certain industries

13. Conclusion 3: ‘Next generation’ & successful is rare Successful ‘new’ payment methods make ‘old methods’ (Cash, Check) more efficient Experiment with alternative payment methods (no supply means no demand) Be selective and cautious!

14. Conclusion 4: Alternative payment methods in your major markets: ‘no-brainer’ Deal with complexity (= cost) increase by Consolidating on specialist (cards + alternative) payment partner

15. Thank you

16. Extra slides for Q & A

17. Merchant objectives: Increase revenue Reduce cost: –Direct cost –Fraud –Complexity cost

18. Benefits vs credit cards Local Cards/Acq Alternative Paym 3DDCC Revenue++O -+ Direct cost++ -O +O FraudO+ -+O Complexity----