1. vendortopay a presentation by

2. Opportunity in India’s Payment Market is nascent but immense and is poised for a dramatic growth. Which Requires : Understanding of various aspects of the payment industry Willingness to Innovate Build strategic alliances As opportunities flourish, success will make its usual demands of : Execution excellence Controlled risk-taking Innovative distribution and Intuitive Customer relationship management The strategies and actions of participants and entrants will together define the contours of this rapidly emerging payments market.

3. India’s 1.2 billion people represent approximately one-sixth of the world’s population, even modest market developments in this rapidly emerging economy holds significance. Within this large B2C opportunity lies a large B2B market potential, Harnessing of which is imperative.

4. Current opportunity in India is small and facing challenges of an economic slowdown. Trends shaping India’s payments industry Growing regulatory framework Increasing digitisation Evolving business models and industry structure Emergence of specialist players Widespread innovation Alliances

5. What does say? Research

6. With global payments approaching $9 trillion, India’s payments industry is approaching $14 billion in revenues, with most transactions flowing within the business sector. Payment flows within the business sector will dominate Payments Industry. Source: McKinsey India Payments 9 24 1,001 1,805 185 293 1,168 2,122 7,332 16,270 254 604 6,810 15,146 268 523 182 288 459 834 252 596 8,063 17,547 5 7 417 901 439 891 8939 19,282 No. 2008 flows2015 flows Payments landscape by segments $U.S. billions Payments to ConsumerBusinessGovernmentTotal Consumer Business Government Total Payments from

7. India’s payments industry ranks fifth among Asian countries by revenue. This overall growth in payments will also reflect on B2B market, presenting a $100 billion opportunity, as oppose to less than one billion practice today. Source: McKinsey India Payments Payments Industry contributes appoximately 30% of Bank’s revenue. Impetus on Digitzation has grown Electronic B2b payments from 5% in 2005 to 48% in 2008

8. India’s B2B payments industry is alluring Strategies will need to focus on building and retaining deposits by capturing both ends of transaction flows and refining and redefining business models. Disaggregating of payments value chain will demand : Specialists Non-bank participants like vendor pay aggregators, Technology providers Transaction processing firms. Banks and non-bank financial institutions need to create alliances to market new products features and services (co-branded), thereby improving marketing efficiency.

9. India getting ready for Sixteen Digit Accounts

10. “One way to curb the flow of black money is to discourage transactions in cash. Now that a majority of Indians has or can have, a RuPay debit card, I therefore, propose to introduce soon several measures that will incentivise credit or debit card transactions, and dis incentivise cash transactions.” Finance Minister Arun Jaitley said while presenting the Union Budget 2015

11. “This welcome move by the FM will provide a boost to electronic payment transactions, online and also at POS (point of sale transactions). A similar approach helped Korea to move to almost 60 per cent cashless transactions in retail. This will help the GDP by almost 0.5 – 1 per cent over the next few years." Amrish Rau, MD, Citrus Pay, said

12. Government of India has clearly pronounced its support for card usage by providing fiscal benefits on acceptance and usage of these cards. This will encourage online card-based transactions boosting the e-commerce segment.

13. Corporate card Spends

14. Verticals where corporate card is dominant Corporate Card spends have touched INR 3300 crores per month Greater than 50% spends are TMC airline spends All figures in Rs. Crores

15. Major Spends of All Corporate Card Issuers is from the TMC ~Airline spends Major PlayersAggregate Volume (INR) TMC Airline Spends (INR) GFR/TMC Penetration American Express120050050 % HDFC80030050% Axis50030060% SBI Cards30020067% ICICI Bank20010050% Total3000140053%

16. Corporate card charge volume : V Shaped Trend line V Shape recovery based on 3 events 1. Advent of B2b 2. Opening of Go Air 3. Opening of Additional 10 Airlines 1 2 3

17. Is this rise and fall driven by any one particular segment? Can we allow this to happen?

18. Are we over dependant on TMC Airline Spends?

19. Market Dynamics and research says the worst is not over and we are expecting another correction. Airlines may pull the plug TMC’s are a high risk category Consistent mismatch of current assets V/s. liabilities in the industry Unsecured lending may not be very prudent Safe bets in TMC are online portals who are willing to prepay GFR / TMC for a rebate as high as 180-190 bps increasing pressure on earnings.

20. Corporate card charge volume : V Shaped Trend line

21. Tipping Point

22. Card issuing companies are sitting on a hungry TIGER …………………… In order to alter this situation we need to reduce dependency on TMC/ GFR segment, by creating other verticals that promise more value and less risks. Is it possible to create alternative verticals? Is there another tiger?

23. Vendor Payments are the future

24. Banks need to focus products and services which are less driven by market dynamics and more by : Regulatory Statutory, Contractual Core of the B2b space. Replace traditional negotiable instruments with Plastic/Virtual cards. Old processes have to make way for new and healthy partnerships that can anticipate customer needs and offer an engaging online/offline user experience. By choosing us as your payment partner you will reach the necessary scope and scale, and start to meet your corporate customer’s needs more effectively and efficiently.

25. For card issuers Challenges

26. Challenges to Enrol : Tedious process Collecting KYC Merchant on boarding is time consuming Costly preposition. Geographical Spread Reluctence to get into contractual obligation

27. Transactions can take place either as card present or card not present. Card not present scenario : All customers may not have a portal Cost ineffective Uneconomical Card present scenario : Need to appoint the vendors Vendor appointed must be given a POS either hand held or PCPOS. Physical presence of the cardholder If POS kept at cardholder’s custody : Multiple POS Machines need to be given Non Compliant. Challenges to Enrol :

28. So how do banks begin to move beyond these challenges and prepare for the new payments future? They can begin by identifying the core capabilities necessary to meet market needs and how to get them. This might mean pursuing a one-stop solution for new use cases, customer segments, white-label business solutions, or even strategic partnerships. What if you get a one-stop solution for all of the above? vendortopay is you one stop, end-to-end solution provider.

29. vendortopay

30. Simplifying Payment Processes Vision Mission To Create and deliver convenient, transparent, flexible and compliant end to end payment solutions enabling clients and partners to succeed in a rapidly evolving market place

31. We are an end to end vendor payment solution provider Vendor to Pay is a web-based portal incorporated in June 2015. Our core focus is to facilitate vendor (Payable) management with short-term credit instruments for creditor management. Vendor to Pay is an extension of existing business processes. As a channel partner it is an interface across Business partners to create more effective use of their suppliers. Who Are We..

32. VendortoPay Goal and Products

33. V2p Rentals V2p Statutories V2p Management V2p BSPV2p FuelV2p Freight v2p We offer complete and seamless integration, from the buyer’s back-end system to final reconciliation for the buyer. Our core verticals ensembles the below

34. Vendor to pay has evolved as a platform in order to meet the new market dynamics. Our forte is customer centricity that enables Banks/NBFC’s to transform payments into business that creates strategic value. We do not fundamentally alter the trading value chain, but instead unbundle, enhance, and re bundle it.

35. Our Comprehensive, Flexible, file/ERP-based solution easily integrates single use virtual cards or physical cards into organization's accounts payable systems, replacing cumbersome paper cheques, improving supply chain metrics through streamlining vendor payments and generating financial benefits. Our tailored solutions, have gained broad acceptance and appeal as they shorten time-to-market for services and offer a visible return.

36. Vendor to pay can add significant value to the Banks/NBFC’s through strategic alliances

37. Streamline in-channel payment processes: The Alliance will standardise, facilitate and shorten the payment process as The Master Merchant. What will the Alliance provide… A holistic and secured payment provider: The Alliance shall reduce the pain points around multiple payment methods by generating a single channel secured and authenticated payment process. Offer multiple integration points with vendors: The Alliance shall ensure that the payment process remains relevant by allowing it to adapt and integrate seamlessly with vendors Omni channel experiences. Service beyond transactions: The Alliance will provide much beyond transactions, Incubate end-to-end service encompassing a flexible ERP based solution, White label solution, Rewards programs, Loyalty tracking and deals offered in the form of statement credits or reward points.

38. A modernised payment infrastructure: The Alliance will offer an automated environment with less dependency on specialised workforce, a flexibility to support digital payments and a standardised payment platform Drive seamless integration of omni- channel acceptance: The Alliance will enable POS (point of sale) technologies to expand and integrate ecommerce and commerce payment processes in a cost effective environment A Value Added Capability: The Alliance will offer differentiated service oriented relationship to customers, Value-added services such as software-based interaction and end-to-end payment processing capabilities is a core part of our product suite What will the Alliance provide…

39. Lower operational costs The Alliance will lead to... Improve flexibility Enhance digital acumen Minimise security risks Minimise disruption

40. What does the alliance offer to the BANK ?

41. Vendortopay will become the sourcing arm for the bank and help the bank in acquiring new customers as well as increasing the wallet share of the existing customers. Vendortopay will become the master merchant and will provide end to end solutions for enrolling vendors. Vendortopay will be the single point merchant for all vendors. Vendortopay to facilitate for both card present or card not present transaction. Banks will enjoy developed technology and their customer will have simplified payment solutions.

42. AMEX: BBB turnover for unsecured is greater than 1200 crores HDFC: no rating and no specific turnover AXIS: no defined criteria SBI / ICICI / KOTAK / RBL: No defined criteria Synopsis of B2b of card issuers

43. We believe in the big India concept our customer or target base All companies greater than 1200 crore of turnover Companies equal to or better than BBB With a gross spread of greater than 50 bps over the COF Minimum Ticket size 50 lacs and above Targeted verticals Tower companies, Electricity distributing companies, Mobile service providers, FMCG, Retail chain, Manufacturing, Milk processing, Infrastructure, Consumer durables, Jewellers V2P customer base

44. Together we can deliver a charge volume of 100 crores a month

45. In some cases, holding on to the past can be a good thing. But when it comes to legacy payment infrastructures, payments companies can no longer afford to cling to yesterday’s technologies. There is too much change in the industry and too many competitors vying to overtake their market position. At the end of the day all businesses need to meet their customers’ needs or they risk losing them to their competitors. Conclusion

46. Let’s design the future of payment market. Call us, write us, meet us Ph. No. +919810606969 Email id sales@vendortopay.com / customerservices@vwndortopay.com Our Address 301,Range Heights,Oshiwara- Andheri, Sarvodya Nagar Mumbai 400102 We have our offices in Hyderabad, Delhi NCR and Baroda