Welcome by Angenita Pex Harry Dolman – COO of HPE Growth

Association for Corporate Growth Holland Lunch Meeting : 9 April 2014
Welcome by Angenita Pex
Harry Dolman – COO of HPE Growth Capital
Tobias Schreyer – CCO of PPRO
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PPRO - The Payment Professionals
Company and Services
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1
The Company
About PPRO
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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PPRO - History
Formation of the
PPRO Group
Alternative payment
processing
Card Processing
e-Money services
Philipp Nieland and
Tobias Schreyer
founded PPRO for the
distribution of digital
goods.
Version 1.0 of the
payment infrastructure to
deliver alternative
payment methods to
PSPs and merchants.
PCI certification for
delivery of card
processing to PSPs
and merchants.
e-Money license from the UK
FCA / launch of first e-Money
product, viabuy
(www.viabuy.com).
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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PPRO - Overview
€232 million processing volume p.a. Founded by 2 serial Local payment processing solu<ons entrepreneurs 148 countries 24 currencies e-‐Money mgmt pla8orm developed e-‐Money License obtained EBITDA of €1 million in FY 2013f
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
Mastercard/VISA principal member PCI PCI ccer<ﬁca<on er<ﬁca<on Payment processing Gateway (girogate) Driven by Consolidated double digit revenues of growth in €8 million e-‐commerce and and a Gross Proﬁt of m-‐commerce markets €4 million in FY 2013f www.acg.org
PPRO – Licences and Certifications
FCA e-Money Institution License
PPRO Financial Ltd is a regulated e-Money Institution in
the United Kingdom under the supervision of the FCA
(reg. ID 900029)
PCI Certification
PPRO is fully PCI DSS Level 1 certified
IDEAL CPSP Certification
PPRO is certified by currence (www.currence.nl)
to act as a collecting institution in the IDEAL payment
scheme
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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PPRO – Memberships
MasterCard Principal Membership
PPRO Financial Ltd. is a MasterCard Principal Member qualifying for
issuing and acquiring
Visa Europe Principal Membership
PPRO Financial Ltd is a Visa Europe Principal Member qualifying for
issuing and acquiring
giropay
PPRO Financial Ltd is an official acquirer of the giropay payment scheme
EMA membership
PPRO Financial Ltd is a member of the electronic money association
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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PPRO – Some of our partners
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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PPRO – Some of our customers
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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2
Issuing, Acquiring, Payment Processing and Digital Fulfillment
Our Business
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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No borders in international e-Payment
The PPRO Group is offering comprehensive financial solutions for international electronic
payment transactions. We create a boundless electronic payment experience in
which our customers don‘t feel the complexity of electronic transactions
• 
We support PSPs and Software Platform Providers to increase the conversion rate of their
customers by offering a wide range of alternative, international payment systems. By offering
a technical platform and one single agreement which covers all technical, regulatory and legal
components, we reduce complexity, risk and costs of international e-Payment processes at
the same time.
• 
Our prepaid wallet accounts and cards disintermediate conventional banking and payment
processes and offer modular financial solutions to consumers and corporates.
• 
Facilitating the electronic distribution of digital goods help product owners to sell beyond their
limits, globally with no payment risk.
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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PPRO Group in short
PPRO is a fully-integrated provider for electronic payments with technical
and financial services under one roof.
Payment
Services
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
e-Money
Issuing
Distribution of
Digital Goods
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Payment Services
• 
Integrated solution for funds handling and technical processing of payment transactions, including
risk management, as well as transaction customer support
Customers:
Online merchants through PSPs and Platform Partners
Source of Revenue:
Volume and transaction-based fees which are paid by the merchant
Key Revenue Drivers:
Payment volume
Number of transactions
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
Payment
Services
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e-Money Issuing
• 
Facilitator of e-Money and prepaid card accounts for individuals and corporate clients
Customers:
Individual and Corporate Clients
Source of Revenue:
Various fees from card sales and transactions: subscription fees (e.g. issuing fee per card),
loading, spend as well as corporate program management fees
Key Revenue Drivers:
Usage volume
Cards issued
Number of corporate programs
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
e-Money
e-Money
Issuing
Issuing
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Distribution of Digital Goods
• 
Payment, Risk Management and Delivery of digital goods, e.g. prepaid vouchers for online
purchases, mobile phone top-ups etc.
Customers:
Individuals
Source of Revenue:
Volume-based distribution fees and commissions
Key Revenue Drivers:
Volume of services sold
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
Distribution
Distributionof
of
Digital
DigitalGoods
Goods
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3
e-Commerce
The Market
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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The Market - General
Alternative payment
Grow (2012-2017) :
Apprx
43% to
of a country´s e-Commerce
will be generated by crossborder business by 2020
53%
absatzwirtschaft.de 2014
Worldpay 2013
Export volume of the six
biggest e-Commerce
markets worldwide will
account to
Compound annual growth rate of
e-Commerce transactions
within alternative
payment:
Worldpay 2012
18%
13%
96 bio. €
Global B2C e-Commerce sales will
increase by
and hit
20.1%
$1.5 trilllion this year driven by
Benificial for those who
count on internationalisation
absatzwirtschaft.de 2014
growth in Emerging Markets
eMarketer.com 2014
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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The Netherlands
The Netherlands
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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4
Payment Services
Trends that impact e-Payments
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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Trends – Internationalisation
• 
More payment options lead to more sales:
42% say that a bigger selection of payment choices
would prompt them to spend more
By 2017, alternative payments will account for 59% of all
transaction methods
Preferences vary by demographic, country of residence
and the product or service consumers are purchasing
• 
Internationalisation is key:
45% of customers shop cross border
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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Trends – Mobile Payment
• 
• 
• 
• 
• 
Rapid growth and innovation in mobile payments, specialised mobile payment solutions have
emerged
Consumers are becoming more comfortable with making higher value purchases via mobile
devices as the overall user experience improves
Online- and Offline-Mix (Omni- and Multichannel)
50 per cent of consumers questioned would use their smartphone for purchasing goods and
services
Statista 2014: 44 per cent of Germans have paid via mobile payment providers in 2013 (2011: 38
per cent), traditional payment via invoice or credit card is decreasing (2013: 42 per cent, 2011: 45
per cent)
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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Trends – The new middle class
• 
The new middle class: Emerging markets & the new world
1.  Shift in the location of economic power centres, esp. towards Asia Pacific
–  China / India join ranks of world powers
2.  Catch-up consumption in newly-industrialised countries
3.  Emergence of a global middle class (with higher life expectancy) across all regions enjoying more purchasing power
–  Middle classes in OECD declining while growing
Asia-Pacific has shown the
fastest growth in the ecommerce market compared to
other regions with a turnover of
$461 billion in 2012 (27% global
share) and a compound annual
growth rate of 34%
Bubble size: popula<on © 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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Trends – Business Virtualisation
• 
• 
Many corporate functions could be done by other people for fewer cost. While the obvious benefit
is reduced cost of operations, this has huge disadvantages as well, such as an increased
complexity in coordinating the different functions
As companies with new business models are likely to run ‘virtual’ companies at the start. This will
put further pressure on traditional companies to ‘virtualize’ their operations as well to remain
competitive
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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5
e-Money Issuing
Trends that impact e-Money
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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Trends – e-Wallets
1.  While growth is spread across all payment types, e-wallets are undoubtedly the leader
–  Google wallet for iOS launched in 2013
–  Amazon released Pay with Amazon
2.  E-wallet transactions are growing across all types of e-commerce industries
3.  Card-based wallets are expected to account for 25% of the card market by 2017
4.  Card-based e-wallets are being released by traditional card providers
Card based wallets are
expected to acount for
25%
of the overall card market by
2017
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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Trends – Crowdsourcing, Crowdfunding, Disintermediation
1.  Crowdsourcing & Crowdfunding are increasing: established today & changing other industries rapidly as
adoption is rising due to achieved critical mass in offering
2.  Crowdfunding surge of new projects/startups in US due to 2012 “jobs” act
Funding by category on kickstarter (USD,
2013)
© 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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Trends – Individualisation, Personalisation, Localisation
1. Individualism is a global phenomenon (not only in the developed world)
2. To give more choice, but also help cope with it, products become more personalized & modular
Example: Barclays Feature Store © 2014 PPRO Group l www.theppro.com l Tobias Schreyer l 09.04.2014
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Get in touch with us!
Tobias Schreyer
Chief Commercial Officer
e-Mail: [email protected]
phone: +44 203 0029321
PPRO Financial Ltd.
20 Hanover Square
W1S 1JY
London
United Kingdom
www.theppro.com
© 2014 PPRO Group l www.theppro.com l Mike Mustermann l February 2014
2
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Next ACG Holland event Invite for the lunch!
Next Lunchmeeting
hosted by
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May 15, 2014, Amsterdam
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