www.ftpartners.com
The Only Investment Bank
Focused Exclusively on Financial Technology
Steve McLaughlin
Managing Partner
Tel: 415.512.8704
Financial Technology Partners LP
601 California St., 22
nd
Floor
San Francisco, CA 94108
Highly Confidential and proprietary information. Unauthorized distribution without prior consent from Financial Technology Partners LP or FTP Securities LLC (together “FT Partners”) is strictly prohibited.
This communication should not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product or service, nor is it an official confirmation of any transaction, or representative of an official position or
statement of Financial Technology Partners LP, FTP Securities LLC or any other related entity. FTP Securities LLC is a FINRA registered broker-dealer.
is pleased to announce its exclusive role as
strategic and financial advisor to
in its sale to
FINANCIAL TECHNOLOGY PARTNERS LP
FTP SECURITIES LLC
November 15, 2012
@FTPartners
2
Transaction Overview and Rationale
Financial Technology Partners LP
FTP Securities LLC
in its sale to
is pleased to announce its exclusive role as
sole strategic and financial advisor to
The Only Investment Bank
Focused Exclusively on Financial Technology
Overview of Transaction
■ On November 15, 2012, ProPay announced its proposed sale
to TSYS
■ ProPay is a leading provider of technology-enabled payment
processing solutions for organizations ranging from small,
home based entrepreneurs to multi-billion dollar enterprises
■ TSYS provides electronic payment processing and other
services to card-issuing and merchant acquiring institutions in
the United States and internationally
■ The terms of the transaction were not disclosed; TSYS
expects to close the transaction in late 2012
Significance of Transaction
■ The acquisition positions TSYS to capitalize on the explosive
growth of mobile payments and more effectively compete in
the small and micromerchant segment
■ ProPay also provides TSYS with a new, highly leverageable
sales channel designed to access the growing micromerchant
market through its direct selling and other affiliate partnerships
■ The acquisition positions ProPay to pursue additional growth
opportunities and further scale the business by leveraging
TSYS’ strategic relationships, processing capabilities and
expertise in the sector
FT Partners’ Role
■ FT Partners served as exclusive strategic and financial
advisor to ProPay in its sale process
■ Highlights FT Partners' unparalleled capability of helping
companies in the Payments sector find the best strategic
partners and achieve favorable outcomes for stakeholders
■ Underscores FT Partners’ continued success in advising a
broad range of top-tier Payments companies
ProPay’s Sale to TSYS (NASDAQ: TSS)
FT Partners Advises Mobile Payments Leader ProPay on its Strategic Sale to TSYS
3
ProPay Overview
Company Overview
Source: Company Management.
CEO: Gary Goodrich
President: Greg Pesci
Headquarters: Lehi, Utah
Founded: 1997
■ ProPay is a leading provider of technology-enabled payment
processing solutions for approximately 250,000
organizations ranging from small, home based entrepreneurs
to multi-billion dollar enterprises
■ ProPay offers a broad array of differentiated and innovative
mobile and eCommerce payments technologies with
advanced PCI compliant tokenization / encryption
■ ProPay currently helps merchants accept payments in over
150 international currencies and settle in 24 currencies; it
also enables merchants to make payments in 24 local
currencies to over 35 countries
■ The Company has a highly leverageable sales model
designed to access the micromerchant market through direct
selling and other affiliate partners
■ ProPay provides complex payments through the ProPay
Payment Network: Card Issuance, Commission Payments,
Spendback and SplitPay
■ The Company recently launched Global Payment Processing
through its direct integration with the Japan Credit Bureau
(JCB) and new international partnerships
ProPay’s Sale to TSYS (NASDAQ: TSS)
ProPay Solutions
Mobile Solutions: ProPay offers a broad array of
mobile solutions including the ProPay JAK and
ProPay Link
■ ProPay JAK: Simple, secure and very
affordable card reader device that plugs into
the audio jack of a smartphone (encrypts
cardholder data at swipe)
■ ProPay Link: Allows consumers to purchase
quickly, securely and easily from their iPhone
or Android phone
Payment Security: ProPay has developed an
advanced security solution to protect customer
payment information
■ Includes both Tokenization and Point-to-Point
Encryption
ProPay Payment Network: An innovative system
designed specifically for merchants to make intra-
network payments including
■ Commission Payments: Enables companies
to make commission payments at a lower cost
■ SpendBack: Account to account payments
that lower transaction costs and risks
■ SplitPay: Splits online transactions to two
receiving parties, enabling revenue sharing
Card Issuance: Provides customized, Prepaid
MasterCard cards for quick access to funds in
users’ ProPay accounts
4
TSYS Overview
TSYS Overview Share Performance
Source: Company website, Capital IQ, Thomson Reuters.
(1) Market capitalization based on a 11/12/12 closing price of $22.03.
(2) Projections based on the mean of analyst estimates as of 11/12/2012.
CEO: Philip W. Tomlinson
Chairman: James H. Blanchard
Headquarters: Columbus, GA
Founded: 1982
Market Capitalization
(1)
: $4.1bn
Summary Income Statement
(2)
■ TSYS is one of the world’s largest payment-services
companies, offering a broad range of issuing and acquiring
payment technologies
■ TSYS has provided electronic payment services for over 30
years and serves more than 300 clients worldwide, including
relationships with more than half of the top 20 international
banks
Selected Acquisition History
ProPay’s Sale to TSYS (NASDAQ: TSS)
Announce
Date Target
Value
($ in mm)
11/14/2012 ProPay na
8/09/2012 Central Payment (Joint Venture) na
10/21/2011
V
anguard Payment Systems
(Merchant Portfolio)
na
5/02/2011 TermNet Merchant Services $42
1/04/2011
First National Merchant Solutions
(Remaining 49%)
$174
3/1/2010
First National Merchant Solutions
(51%)
$150
10.00
12.00
14.00
16.00
18.00
20.00
22.00
24.00
26.00
$22.03
as of
11/12/2012
($ in mm)
2010A 2011A 2012E 2013E 2014E 10A-'14E CAGR
Revenue
$1,722 $1,809 $1,878 $1,979 $2,093 5.0%
Operating Income
313 322 363 386 424 7.9%
EBITDA
469 492 533 574 608 6.7%
Pre-tax Profit
310 317 359 395 435 8.9%
Net Income
195.10 220.56 245.00 268.62 293.71 10.8%
EPS
1.00 1.15 1.29 1.44 1.63 13.0%
CFPS
1.74 2.27 2.21 2.41 2.54 9.9%
5
Mobile Payments Enabling Penetration of Micromerchants, Connecting Consumers
Key Points
Key Drivers of the Mobile / Micromerchant Opportunity
Increased adoption of smartphones / mobile technology to access the
internet and make purchases
Growth in the number of 4G LTE Subscribers
Total global mobile payments volume growth
Growth in mobile payments volume as a % of total payments volume
Industry Perspectives
Source: The Nilson Report, figures from 2006.
(1) U.S government census 2008; sum of non-employer firms and firms with 1- 4 employees.
■ The small- to micromerchant segment represents over 25 million small
businesses / home-based entrepreneurs
– New independent players have begun to enter this market, including
ProPay, SumUp, iZettle and others
– Major payments players have also entered this market with their own
solutions, including Verifone’s “SAIL”, PayPal’s “Here”, Intuit’s
“GoPayment”, and others
– This segment is underpenetrated, representing a large growth
opportunity for the payments industry
■ Improvements in payment technology, including mobile and online
commerce technology, has recently enabled companies expand into this
new market
125
84,000
Large Merchants
720,000
Medium Merchants
5,200,000
Small Merchants
25,000,000+
(1)
Micromerchants
Top
Merchants
Number of US Merchants
(likely representative of global demographics)
…And others
Initial Micromerchant Players are Not only Moving
Upstream to Larger Merchants, But Are Focusing
on the Consumer Network Play Simultaneously
Selected Global Key
Players
-
100
200
300
2010 2011 2012 2013 2014
(in mm)
4G LTE Subscriber Growth
Number of Worldwide 4G LTE Subscribers
(2)
Industry Perspectives
6
Nearly 56% of US mobile phone
subscribers now own smartphones; the
increased adoption trend is expected to
continue in the future
Communicates anytime “Always On” and
anywhere “Mobility”
Powerful tool for delivery of value-added
services in real-time at the point of sale
30%
35%
36%
37%
43%
44%
56%
70%
65%
64%
63%
57%
56%
50%
45%
Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12
Smartphones
Regular Phones
Smartphone Adoption
U.S. Smartphone Market Share
(1)
Growth in Mobile Payments
Growth in Global Mobile Payment Volume
(3)
($ in bn)
Mobile Payments as % of Payment Volume
(3)
Momentum in mobile payments is expected to continue with total global mobile
payments volume expected to increase from $172 bn in 2012 to $617 bn in 2016 (CAGR =
38%)
Many factors contributing to the rapid growth include:
– Increases in smartphone penetration
– Faster network speeds with the expansion of 4G LTE reach
– Consumer demand for targeted value-added offers and rewards
– Innovation fueled by revenue prospects
Mobile payments include remotely purchasing digital / physical goods using one’s
phone, peer-to-peer payments or using one’s phone to make a purchase at the point-of-
sale
4G LTE worldwide subscriber forecast
expected to reach 300 mm individuals
by 2014
Higher speed connections allow
individuals to take advantage of mobile
internet services
M-commerce and mobile loyalty /
rewards will be virtually seamless and
will be delivered almost instantly
(1) Source: Nielsen Mobile Insights.
(2) Source: IHS iSuppli Research, 2010.
(3) Source: Gartner.
Key Trends Driving Market Growth
These technological advances
are creating the necessary
foundation for disruptive
innovations in the area of
payments
$105.9
$171.5
$255.8
$352.7
$472.8
$616.9
2011A 2012E 2013E 2014E 2015E 2016E
105.9
171.5
255.8
352.7
472.8
1.0%
1.3%
1.7%
1.9%
2.2%
2011A 2012E 2013E 2014E 2015E
($ in bn)
7
Financial Technology Areas of Expertise
Virtual
Wallets
Loyalty /
Marketing
Platforms
Mobile
Banking
Emerging
Mobile /
E-Commerce
Gateways
Mobile
Payments
Specialty
Lending
Cross Border
Payment
Processing
Personal
Financial
Management
Tech-Enabled
Merchant
Acquiring /
POS Integration
Online SaaS
Billing / Bill
Payment
FT Partners has
deep transaction
experience and
domain expertise
in a broad range
of key financial
technology
verticals
Pre-Paid
Services
Overview of FT Partners
Advisor of Choice in the Banking Technology and Payments Sector
8
Selected Merchant Acquiring Transactions
Overview of Selected FT Partners Transactions
Advisor of Choice in the Banking Technology and Payments Sector
9
Selected Other Payments / Banking Transactions
Overview of Selected FT Partners Transactions
FT Partners Named “Dealmaker” and “Investment Bank” of the Year
The “M&A Advisor” Selects FT Partners for M&A Industry-Wide Awards
10
Selected Transactions:
■ The sale of Solveras to TransFirst
■ The $145 million sale of EDC to Cardtronics
■ The $50 million minority investment in YapStone led by
Accel Partners
■ The 60% strategic growth investment for Mercury Payment
Systems by Silver Lake
■ The $370 million sale of Custom House to Western Union
■ The $525 million sale of Lynk to The Royal Bank of
Scotland
■ The $680 million sale of ATD to Citigroup
■ The $325 million cash sale of Verus Financial Management
to Sage Group PLC
■ The $245 million cash sale of Corillian Corp to CheckFree
■ The $110 million minority recapitalization of TradingScreen
■ The $250 million capital raise for Liquidnet
Awards Overview
Investment Bank of the Year
Deal of the Decade
■ FT Partners consistently receives top honors and recognition
from national association:
– Boutique Investment Bank of the Year (2011)
– Deal of the Decade (2011)
– Middle Market Deal of the Year, Cross-Border Deal of
the Year and IT Services Deal of the Year (2010)
– Dealmaker of the Year (2007, 2008 and 2009)
– Investment Banking Firm of the Year (2004 and 2006)
– Financing Professional of the Year (2006)
– Product of the Year – IPO Advisory (2006)
– Deals of the Year (2005, 2006 and 2007)
■ 2008’s top ranked investment banker named on Institutional
Investors annual “Online Finance 40” ranking
– Consecutively ranked for 3 years (2008, 2007, 2006)
■ Founder and Managing Partner, Steve McLaughlin, lauded
highest honors as both “Dealmaker of the Year” and “Financing
Professional of the Year”
■ Top award winning Investment Bank collecting more than 12
separate awards for outstanding performance and client results
– FT Partners has received over 75 award nominations
across an unprecedented array of categories
■ FT Partners’ “IPO Advisory” service – as demonstrated in one
of the most successful Payments IPOs in history, VeriFone –
received its third industry award in 12 months for Product of the
Year
– Previously recognized in our 2006 Financing Professional
of the Year award and 2005 Deal of the Year
FT Partners Named “Boutique Investment Banking Firm of the Year”
Focused on Superior Client Service and Flawless Execution
11
Mergers
Acquisitions
Divestitures
Fairness Opinions
Anti-Raid Advice
Strategic Advisory
Services
Mergers
Acquisitions
Divestitures
Fairness Opinions
Anti-Raid Advice
Strategic Advisory
Services
Capital Raising
Private Equity
Restructuring
IPO Advisory
Valuation
Financial Advisory
Services
Capital Raising
Private Equity
Restructuring
IPO Advisory
Valuation
Financial Advisory
Services
Client / Press Testimonials
“One of the most sought after investment banks for the payments industry is Financial Technology Partners …The company’s strategy is to
represent only a few clients a year. It spends months on-site learning the client’s business so it can promote the client’s assets better than the principals
of the company would.” – The Nilson Report
“The purchase price … is one of the highest ever paid for a payment processor.” – The Deal, ‘Sage Group Picks U.S. Target’
“We have been working with Steve McLaughlin and the FT Partners team as our trusted advisor and partner for almost five years and could not be
more pleased with their handling of the transaction”. – Tom Villante, Co-Founder and Chairman, Yapstone
“This is truly a landmark event for Mercury and we were well served by Steve McLaughlin, Tim Wolfe and the entire FT Partners team as our advisors on
this transaction…Steve and his team demonstrated utmost integrity, objectivity and genuine passion as our advisor and their detailed knowledge of
our business was unquestionably a factor in achieving this outcome.” – Mark Katz, Co-Founder and Board Member, Mercury
“The FT Partners team truly partnered with SquareTrade as we worked together towards this exciting next step for our company…Steve McLaughlin and
his team demonstrated their deep understanding of our business and were able to connect us with world class investors. We look forward to
continuing our relationship going forward.” – Steve Abernethy, Co-Founder and CEO, SquareTrade
“We enjoyed working with the entire FT Partners team and were impressed with their incredible level of effort and diligence throughout this process…I
would strongly recommend that any CEO seeking to realize maximum value for their shareholders consider FT Partners as a true partner they
can trust and to ultimately deliver what they promise.” – Mark Strauch, President and CEO, EDC
“Boutique Investment Bank of the Year”
“Deal of the Decade”
Mobile / Micromerchant Payments Financings
Mobile / Micromerchant Payments Financings
13
■ Streetpay is a German mobile payments solution that allows individuals and
micromerchants to accept payments on smartphones and tablets
■ The Company received an undisclosed amount of financing from an undisclosed
Abu Dhabi-based investment group
10/18/2012
Investor(s) Target Commentary
Date
na
10/23/2012
■ iZettle, based in Stockholm, Sweden, is a social payments company that provides
P2P and B2C payment services with an offering similar to that of Square
■ iZettle received an undisclosed amount of financing from American Express
■ The investment is an expansion of its June 2012 €25 mm ($31.4 mm) Series B
funding led by Northzone and Greylock Partners
Selected Profiles
Amt. Raised
na
Source: Capital IQ, FT Partners Proprietary Database.
Undisclosed
■ PagPop allows merchants to accept credit card payments on their smartphones
through SMS or a device that connects to the speaker port; similar to Square
■ The Company is based in Ribeirão Preto, Brazil
■ The Company will use the financing to accelerate growth and invest in technology
10/04/2012 na
10/17/2012
■ Braintree is a developer-focused advanced payments gateway provider that
enables online and mobile payments for merchants
■ The Company received $35 mm led by NEA and including existing investors
Accel Partners, RRE Ventures and Greycroft
■ Brings Braintree’s total funding to approximately $70 mm
09/17/2012
09/17/2012
■ Square provides card reading devices and payment processing services to
enable electronic payments via smartphones and tablets
■ Square’s Series D financing round was led by Rizvi Traverse Management with
participation from Citi Ventures; the round valued the Company at $3.225 bn
(post-money)
■ Starbucks Coffee (NASDAQ:SBUX) (“Starbucks”) also participated in the round;
the Company’s involvement was announced on August 7
th
2012
$1 mm
■ Klever Logic (d.b.a. Flash Valet) offers a smartphone application that allows users
to pay for valet services over their phones
■ The offering is available in more than 50 locations in 13 cities; the Company plans
to use the financing to triple the number of locations in the next six months
$35 mm
$200 mm
Mobile / Micromerchant Payments Financings
14
Investor(s) Target Commentary
Date
Selected Profiles
Amt. Raised
■ SumUp offers a mobile payments platform that allows micromerchants and small
businesses to process payments on their mobile phones through a card reading
device; similar product offering to that of Square
■ The Company plans to use the financing to expand to further regions in Europe
■ SumUp charges a fee of 2.75% of every transaction
■ Competitors in Europe include Payleven and iZettle
■ Inspire Commerce provides an “All-In-One” Solution for merchants to accept
payments online: offers merchant accounts, mobile processing and gateway and
recurring billing solutions
■ The Company received $500k from Story Stock Exchange and Axia Payments
09/11/2012
08/23/2012
$1 mm
$20+ mm
Source: Capital IQ, FT Partners Proprietary Database.
08/17/2012
■ Punchey provides an all-in-one platform and card reader that enables
merchants to accept credit cards on their phones or personal computers
■ Offers value-added loyalty programs, including personalized rewards and
special offers, that enable merchants to retain existing customers and bring in
new ones
$2 mm
08/20/2012 $4 mm
■ Buyvite provides a platform that allows users to collect and pool money for group
purchases
■ Once a group is set up, Buyvite's system invites friends and family to sign up for
Buyvite and contribute to the group purchase
■ Buyvite will use the investment to improve existing software products, secure new
partnerships and increase marketing and sales efforts
■ Square provides a card reading device and payment processing services to
enable electronic payments over smartphones and tablets
■ Starbucks and Square announced a partnership whereby the coffee chain will
deploy Pay with Square in their U.S. stores this fall; Square will also process
Starbucks credit and debit card transactions
■ Starbucks will integrate the Square directory to various Starbucks digital platforms
■ Starbucks CEO Howard Schultz will join Square’s Board of Directors
08/07/2012 $25 mm
08/02/2012 $4 mm
■ QuickPay allows individuals to find and pay for parking on their mobile phones
■ The Company provides an app which displays a map showing parking lots that
accept QuickPay; consumers can look up rates and reserve spots in the lots
■ Along with the financing, the Company announced that Barney Pell, founder of
Powerset (acquired by Microsoft for $100 mm in 2008), was brought on as CEO
Mobile / Micromerchant Payments Financings
15
Investor(s) Target Commentary
Date
Selected Profiles
Amt. Raised
Source: Capital IQ, FT Partners Proprietary Database.
■ Stripe, competing with PayPal and startups in the growing online payment
market, provides software that enables Web developers to take payments over
the Internet, without having to set up their own merchant account or store
customers’ credit card information
■ Rumored valuation of $500 mm
■ Paydiant offers a cloud-based, white label mobile wallet and payment solution
that enables banks, retailers and processors to deploy a branded contactless
mobile wallet without involving 3rd party mobile wallets / platforms diluting brand
equity, and putting customer relationships / data at risk
■ Works with credit / debit / prepaid cards and existing smartphones, POS systems
and payment terminals (including QR codes and NFC)
07/10/2012
07/09/2012
$12 mm
$20 mm
(Stripe)
06/27/2012 $4 mm
■ Kuapay provides a mobile payment application that enables customers to make
purchases with smartphones; offers integrated loyalty programs and social
networking capabilities
■ The Company has 35 employees and approximately 40 merchants using the
service
■ In mid-2012 the Company signed a deal to install the service at over 100 KFC
locations in Southern California
Undisclosed
■ iZettle, based in Stockholm, Sweden, is a social payments company providing
payment services for P2P and B2C payments; similar offering to Square
■ The Series B funding will be used to introduce iZettle in additional European
markets and other geographies where chip-cards are used
06/15/2012 $31 mm
06/22/2012
■ Payleven offers a card reading device that allows micromerchants in Germany
and Brazil to accept card payments on mobile phones; similar offering to Square
■ The Company is part of Rocket Internet, the incubator run by the Samwer
brothers that seeks to clone popular US companies
■ The financing , rumored to be in the “double-digit millions” will allow Payleven to
further expand into key European and large emerging markets
na
05/22/2012 $5 mm
■ Bango offers products that collect payments from mobile users for purchases of
online content and services and provide data analytics for mobile marketing
campaigns and sites
■ The Company announced that it is raising £3.5 mm ($5.2 mm) from placement of
2,355,000 new ordinary shares with institutional investors
■ The funding will enable the Company to expand its presence in the US, especially
the West Coast
Undisclosed
Mobile / Micromerchant Payments Financings
16
Investor(s) Target Commentary
Date
Selected Profiles
Amt. Raised
Source: Capital IQ, FT Partners Proprietary Database.
05/10/2012
■ Jumio enables mobile and online credit card payments using its Netswipe
technology
■ Customers "scan" their credit cards by holding their card up to their webcam or
by taking pictures of their cards using their smartphones
■ The Company received $3.3 mm in financing from Citi Ventures
■ The financing was an extension of the Series B round led by Andreessen
Horowitz in March of 2012
$3 mm
■ Flint Mobile allows individuals and merchants to accept payments on their
iPhones by capturing card information using the phone camera
■ The application includes customizable receipts that are emailed to customers and
can include future deals and Facebook connectivity for social sharing
■ The Company received $3 mm in Series A financing led by Storm Ventures and
True Ventures
05/09/2011 $3 mm
■ WePay allows individuals and merchants to accept and collect online payments
without a merchant account or website
■ WePay also offers customized white-label invoices that allow merchants to
brand the color scheme of the invoices to match the style of their businesses
■ WePay announced a $10 mm growth round of financing led by new investor
Ignition Partners and including participation from former investors Highland
Capital Partners and August Capital
05/03/2012
$10 mm
■ Kuapay provides a mobile payment application that enables customers to make
purchases with smartphones; offers integrated loyalty programs and social
networking capabilities
■ It enables users to make credit card purchases with smartphones in restaurants,
shops, and online payments by linking with existing point of sale systems
■ The Company is reportedly in the midst of a $10 million financing round
04/11/2012 $2 mm
Undisclosed
03/15/2012
$35 mm
■ BOKU enables users to pay for digital goods and social experiences across the
web via their mobile phone and is offered in over 60 countries with more than 220
carriers
■ $30 mm of the financing round was from the venture capital firms while $5 mm
was from Telefónica Digital, a Spanish MNO
■ Total of $75 mm raised since inception
Andreessen Horowitz,
Benchmark Capital,
DAG Ventures,
Index Ventures,
Khosla Ventures,
New Enterprise Associates
Telefónica
03/07/2012 na
■ Visa Europe took a 15% stake in The Mobile Money Network, which provides
mobile commerce and payments services for retailers
■ MMN’s instant mobile checkout, Simply Tap, allows customers to easily identify
and purchase a product on their mobile
■ Visa’s investment support their aim to deliver a wide range of mobile payment
services
(Europe)
Mobile / Micromerchant Payments Financings
17
Investor(s) Target Commentary
Date
Selected Profiles
Amt. Raised
Source: Capital IQ, FT Partners Proprietary Database.
03/06/2012 $26 mm
■ Jumio is a image recognition technology company that offers two products:
Netswipe and Netverify
■ Netswipe allows merchants to take credit card payments securely via webcam
and complete transaction with consumers briefly hold credit card in front webcam
■ Netverify turns any camera into an ID reader so website owners can confirm a
customer’s identity in real time
02/22/2012
■ GoPago service allows consumers to use their mobile phones to order and pay
for local goods or services and then show the merchant a receipt on the phone
screen when picking up a purchase
■ The venture with GoPago is the latest JPMorgan Chase venture into mobile
transactions, following Quickpay and Quickdeposit
na
■ Alternative payment network for online and mobile purchases as well as P2P
transfers; consumer account funded by linking it to a bank account
■ Enables merchants to lower transactions fees - $0.25 fee for transactions greater
than $10; no fee for transactions under $10
02/07/2012
$5 mm
02/10/2012
$18 mm
■ Stripe, competing with PayPal and startups in the growing online payment
market, provides software that enables Web developers to take payments over
the Internet, without having to set up their own merchant account or store
customers’ credit card information
■ Previous investors include PayPal co-founders Peter Thiel and Elon Musk
(Stripe)
01/18/2012
■ Lianlian Pay operates a network of over 300,000 small business agents across
China to facilitate customer payments for airline tickets, video gaming credits and
utility bills via mobile phone
■ Lianlian Pay will employ American Express’ Serve technology platform to deploy
a secure, easy and convenient digital wallet
(Lianlian Pay)
$125 mm
11/22/2011 $25 mm
■ Xoom allows individuals to send money online and through mobile; users sign up
with Xoom and fund their transfers through a bank account, credit or debit card –
recipients can pick up the money as cash or have it deposited in their bank
account
■ The round of funding follows a $33 mm Series F financing round in March 2010
from the same existing investors
Mobile / Micromerchant Payments Financings
18
■ E la Carte provides a holistic approach to the dining workflow experience with its
touch screen tabletop devices, designed to allow diners to order food and drinks,
play games and pay their bill at the table
■ E La Carte received $4 mm in Financing led by Lightbank
■ IP Commerce solutions enable advanced, next generation point of sale
commerce bringing online consumer experiences into offline environments via
cloud-connected mobile phones / tablets
■ Platform allows developers to create customized, intelligent multi-channel
commerce applications to enhance interaction with consumers
09/08/2011
08/30/2011
Investor(s) Target Commentary
Date
$21 mm
$4 mm
Selected Profiles
07/25/2011 $9 mm
■ Obopay provides an open mobile payment platform to enable banks, carriers and
processors to offer branded mobile payment solutions in both developed and
emerging markets
■ Supports a wide range of transactions including money transfer, mobile and
online commerce, top-up, bill pay and cash loading
07/05/2011
■ MobiBucks is a virtual prepaid account which allows users to make purchases
using a mobile phone number and a 4-digit PIN at participating merchants
■ MobiBucks also offers peer-to-peer money transfers, mobile top-ups and
coupon/loyalty offers
■ All account activity immediately texted to phone for added security
$5 mm
Amt. Raised
Undisclosed
Acadia Woods
Partners
Source: Capital IQ, FT Partners Proprietary Database.
■ Square provides a card reading device and payment processing services to
enable electronic payments over smartphones and tablets
■ Round led by Kleiner Perkins
■ In April of 2011, Square also received a strategic investment by Visa
■ On November 8, 2011, Square received $3 mm from Richard Branson
■ The financing round was done at a valuation of $1 bn
06/28/2011 $103 mm
06/29/2011
$34 mm
■ Braintree is an online payments gateway provider that enables online and mobile
payments for merchants
■ The Company received $34 mm from Accel and existing investors
■ Masabi is a developer of mobile ticketing technology that allows passengers to
quickly and buy and display tickets on their mobile phone
■ Masabi works in partnership with major transport systems integrators, including
thetrainline and Atos, and is deployed with leading transport operators including
Virgin Trains and Chiltern Railways
11/02/2011 $4 mm
Mobile / Micromerchant Payments Financings
19
■ ViVOtech provides proximity payment solutions which allow consumers to pay
with their contactless cards and cell phones at physical stores
■ Solutions offered by ViVOtech include contactless NFC readers, NFC mobile
provisioning and wallet software and mobile applications software
■ New investors EDBI, SingTel Innov8 and Motorola Ventures joined by existing
investors in latest extension of Series C round
06/27/2011
Investor(s) Target Commentary
Date
$24 mm
Selected Profiles
06/23/2011 $1 mm
■ Card.io provides a SDK (software development kit) for mobile developers which
lets them accept credit cards in their mobile applications
■ Card.io allows customers to hold a credit card up to the phone which is read
using the built-in phone camera
■ AisleBuyer offers a mobile commerce platform for retailers which allows
customers to access detailed product information, read customer reviews and
instantly make a purchase without waiting in line via their mobile phones
■ Merchants receive in-store shopping behavior data by seeing what products are
being scanned and purchased
06/13/2011 $8 mm
Amt. Raised
Michael Dearing (Harrison Metal),
Jeff Clavier & Charles Hudson
(SoftTech VC),
Manu Kumar (K9 Ventures),
Alok Bhanot (PayPal),
Omar Hamoui (Admob)
Source: Capital IQ, FT Partners Proprietary Database.
■ Buck (fka: Billing Revolution) lets mobile users purchase digital and physical
items through a single click / mobile billing system
■ Buck’s platform serves smart and feature phones and tablets and provides
frictionless payment solutions for carriers, mobile OEM's game publishers, mobile
app store operators, merchants and retailers
■ Citi Ventures also announced a strategic investment in Buck for an undisclosed
amount on 06/21/11
05/16/2011 $7 mm
■ C-Sam offers a mobile wallet management platform and comprehensive SDK
■ The C-Sam platform supports different handsets, mobile carrier networks, and
NFC technology and the unique security architecture enables providers to
securely aggregate applications from disparate domains
■ Technology vendor to Isis
04/12/2011 $2 mm
04/11/2011 $6 mm
■ Clover Offers an app for Android and iOS that enables one-tap payments on
mobile apps and websites that accept it as a payment option
■ The Company received $5.5 mm from Sutter Hill Ventures, Andreessen Horowitz
and Morado Venture Partners
Undisclosed
Mobile / Micromerchant Payments Financings
20
Investor(s) Target Commentary
Date
Selected Profiles
■ Payfone authorizes and processes mobile payment transactions for app stores
and merchants; solution leverages mobile operator networks to directly
authorize and process payments
■ Once a consumer is linked to the merchant through a one-time SMS PIN
verification, the consumer can make all subsequent transactions using a patent
pending “one click” payment
■ Led by American Express
03/18/2011
03/15/2011
■ Jumio offers advanced technology that increases security and ease of use for
online and mobile credit card payments
■ Jumio offers Netswipe, a solution that turns any webcam into a credit card
reader
■ Round led by Eduardo Saverin, co-founder of Facebook
$19 mm
$7 mm
Amt. Raised
American Express,
Verizon,
Rogers Communications,
Opus Capital,
BlackBerry Partners,
RRE Ventures
Undisclosed
Source: Capital IQ, FT Partners Proprietary Database.
■ Paydiant offers a cloud-based, white label mobile wallet and payment solution
that enables banks, retailers and processors to deploy a branded contactless
mobile wallet without involving 3rd party mobile wallets / platforms diluting brand
equity, and putting customer relationships / data at risk
■ Works with credit / debit / prepaid cards and existing smartphones, POS systems
and payment terminals (including QR codes and NFC)
02/21/2011 $8 mm
■ Square provides a card reading device and payment processing services to
enable electronic payments over smartphones and tablets
■ Round of funding valued the Company at $240 mm, up from $45 mm valuation
received in last round in 2009
01/10/2011 $28 mm
11/23/2010 $4 mm
■ AisleBuyer offers a mobile commerce platform for retailers which allows
customers to access detailed product information, read customer reviews and
instantly make a purchase without waiting in line via their mobile phones
■ Merchants receive in-store shopping behavior data by seeing what products are
being scanned and purchased
Richard Heise, Jr.
09/20/2010
■ XipWire is a peer-to-peer mobile payment service that enables individuals to
securely send and receive money using text messages
■ XipWire enables businesses to offer their customers a convenient cash
alternative without the need to pay high credit card fees
$1 mm
Undisclosed
Mobile / Micromerchant Payments Financings
21
Investor(s) Target Commentary
Date
Selected Profiles
Amt. Raised
Source: Capital IQ, FT Partners Proprietary Database.
■ Payfone authorizes and processes mobile payment transactions for app stores
and merchants; solution leverages mobile operator networks to directly authorize
and process payments
■ Once a consumer is linked to the merchant through a one-time SMS PIN
verification, the consumer can make all subsequent transactions using a patent
pending “one click” payment
■ Tyfone provides solutions including mobile banking, identity management,
contactless NFC and retail / loyalty services
■ Tyfone's SideTap neutral secure element microSD memory card converts any
mobile phone with a memory slot into an NFC-based payment device
09/07/2010
08/02/2010
$5 mm
$11 mm
09/16/2010
■ Venmo is a social payments platform that allows friends to exchange money
using their phones
■ Venmo is funded by linking a mobile phone to a credit card or a bank account,
and there is an option to withdraw via direct deposit to the designated bank
account
$1 mm
05/27/2010
■ BOKU enables users to pay for digital goods and social experiences across the
web via their mobile phone and is offered in over 60 countries with more than
220 carriers
■ Online payments are made by entering one’s mobile number, authenticating
directly to the mobile phone and charging consumers’ wireless billing statement
$11 mm
Norwest Venture Partners,
Scale Venture Partners
Trident Capital
Avanti Capital
Singapore EDBI
■ Zong offers a carrier direct billing mobile payment service for online gaming and
social networking websites in over 40 countries worldwide
■ Online payments are made by entering one’s mobile number, authenticating
directly to the mobile phone and charging consumers’ wireless billing statement
■ Only mobile payments service that combines carrier billing with credit, debit and
prepaid cards
■ Corduro offers an application for iPhone and Android devices enabling reader-
free card payments via smartphone and tablet devices at a low transaction cost
■ The application is also an e-wallet that facilitates easy and quick payments to any
individual or business on the Corduro network
05/27/2010
05/04/2010
$3 mm
$15 mm
Mobile / Micromerchant Payments Financings
22
Investor(s) Target Commentary
Date
Selected Profiles
05/03/2010
■ Mi-Pay provides a broad range of services focused on three main areas including
top-up payments, money transfers and mobile payments / mobile money
■ The Company’s primary customer base includes mobile operators, financial
institutions, e-money providers and utility companies, among others
11/30/2009
■ Square provides a card reading device and payment processing services to
enable electronic payments over smartphones and tablets
■ Round valued the Company at $45 mm
Amt. Raised
$5 mm
(Fka: Close Ventures)
$10 mm
Source: Capital IQ, FT Partners Proprietary Database.
■ MPOWER Mobile develops mobile payment applications enabling payment
processing, money transfer, mobile payments and card acceptance
■ MPOWER delivers financial access to unbanked and under-banked consumers
■ Bling Nation offers mobile payments solutions to consumers by allowing them to
pay merchants with the tap of a mobile phone, increasing consumer’s
convenience while reducing costly interchange fees
■ Bling Nation has temporarily suspended service while it attempts to revamp its
business model
11/02/2009
10/28/2009
$28 mm
$5 mm
11/17/2009
$7 mm
■ ROAM Data offers a mobile commerce development platform that enables range
of payment and loyalty applications run securely on all major mobile devices
applications
■ ROAM’s reader uses sound waves to digitize and encrypt the card track data
within the card reader before transmitting that encrypted data to the device, which
ultimately gets decrypted only by the PCI certified payment server
(Fka: Maples Investments)
■ OneTXT provides a payment processing alternative for social media, enabling
merchants to accept payments, create loyalty programs and send marketing
messages through any digital media
■ OneTXT gives users the option of paying directly from their bank accounts with
credit cards, debit cards or money transfer; does not depend on side transactions
for successful transfers like many competitors
06/22/2009 $2 mm
Mobile / Micromerchant Payments M&A
Mobile / Micromerchant Payments M&A
24
Selected Profiles
Date Acquiror Target Value ($ mm) Commentary
09/06/2012 na
■
Ericsson IPX (Internet Payment Exchange) is a mobile payment system that enables
micropayments and purchases directly from mobile phones; allows consumers to pay for content,
tickets, physical goods and services by sending a text message
■
As part of the transaction, Gemalto is acquiring Ericsson’s Trusted Service Manager (TSM) activity
08/16/2012 na
■
Venmo is a social payments platform that allows users to exchange money using a smart-phone
application, mobile web or SMS
■
Venmo accounts are funded by linking a mobile phone to a credit card or a bank account; users can
withdraw via direct deposit to their bank accounts
■
The acquisition gives Braintree a consumer-facing business and allows the Company to further
compete with traditional players such as PayPal and emerging players such as Stripe
07/17/2012 na
■
Card.io provides a SDK (software development kit) for mobile developers which lets them accept
credit cards in their mobile applications; allows customers to hold a credit card up to the phone
which is read using the built-in phone camera
■
Prior to the acquisition, PayPal worked with Card.io to use the Company’s technology in their
“PayPal Here” offering
■
The Card.io technology will remain open to developers to use in their own applications
07/17/2012 na
■
Tunz.com offers a mobile wallet service that allows users to make payments and peer to peer
transactions via SMS, WAP and through an app
■
The purchase gives Ogone the ability to enable mobile payments for financial institutions,
merchants and mobile operators
Source: Capital IQ, FT Partners Proprietary Database.
Mobile / Micromerchant Payments M&A
25
Selected Profiles
Date Acquiror Target Value ($ mm) Commentary
07/12/2012 na
■
Cassis offers mobile payments and NFC technologies including mobile loyalty, smart poster, m-
commerce and trusted services management (TSM)
■
The Company was acquired through Safran’s Morpho subsidiary; Safran aims to integrate Cassis
with Morpho’s e-documents division, allowing the company to enable network operators and service
providers to manage and implement secure credentials on mobile apps
6/28/2012 $174 mm
■
Paysafecard allows individuals to pay for online goods by exchanging cash for a 16-digit PIN at
select retail locations
■
Skrill, majority owned by Investcorp, enables its clients to make online payments using no personal
information other than an email address
■
The acquisition allows Skrill to offer payment options for both the online and offline channels
4/10/2012 na
■
AisleBuyer offers a mobile commerce platform for retailers which allows customers to access
detailed product information, read customer reviews and instantly make a purchase without waiting
in line via their mobile phones
■
Aislebuyer had previously raised $11.5 million in funding in various rounds of financing
■
The acquisition was rumored to be approximately $100 million
4/2/2012 $200-300 mm
■
TxVia offers advanced transaction processing technology for prepaid and alternative payments;
enables electronic payments with a Platform-as-a-Service (PaaS) delivery model that supports
highly customized processing needs
■
The acquisition enables Google to enhance their Google Wallet offering by adding additional
features and by integrating the TxVia management team and engineers
■
Rumored $200-$300 mm transaction value
Source: Capital IQ, FT Partners Proprietary Database.
Mobile / Micromerchant Payments M&A
26
Selected Profiles
Date Acquiror Target Value ($ mm) Commentary
2/27/2012 na
■
Roam Data offers a mobile commerce development platform that enables range of payment and
loyalty applications to run securely on all major mobile devices
■
Ingenico had previously taken a 43% stake in Roam with a $6.5 mm financing in November of 2009
■
The new financing gives Ingenico a controlling stake in the Company
2/20/2012 na
■
Kima Labs develops Barcode Hero, a mobile barcode reading app, and TapBuy, a mobile payment
app
■
TapBuy provides users with location based-deals and processes payments transactions using credit
card information provided by users
■
The acquisition continues Groupon’s strategy of focusing on mobile growth
8/16/2011 na
■
Mpass is a joint mobile payment service of Vodafone, Deutsche Telekom and Telefónica O2
Germany announced in 2011 for the German market
■
The joint venture is a move by the three providers to try and expand their position in the mobile
payments sector
8/2/2011 na
■
ChipIn enables users to organize group payments and fundraisers in a quick and easy way
■
InMobi acquired ChipIn's Sprout which enhances InMobi's ability to engage mobile ad experiences
to consumers all around the globe
Source: Capital IQ, FT Partners Proprietary Database.
Mobile / Micromerchant Payments M&A
27
Selected Profiles
Date Acquiror Target Value ($ mm) Commentary
4/28/2011 na
■
Provides mobile payment solutions for merchants in the United States that allow customers to
purchase goods using their mobile phones
■
Rationale for transaction was to enhance PayPal’s mobile payment capabilities within brick and
mortar retail locations
3/11/2011 na
■
Onebip enables consumers to use their mobile phone to pay online and send and receive
payments, allowing users to shop online without using a credit card or bank account
■
Enhances Neomobile's product offering to international merchants, particularly coupled with its
strong mobile carrier relationships throughout Europe and Latin America
2/28/2011 na
■
M-Com is an international mobile banking and payments provider that offers white label solutions for
financial institutions, allowing them to deliver SMS payments, mobile P2P, remittance and bill
payment solutions to their clients
■
The two companies have been partners since 2008, developing and delivering Mobile Money from
Fiserv to hundreds of financial institutions
■
Demonstrates Fiserv's commitment to the expansion of its mobile banking services and enables the
two companies to accelerate the development of mobile payments and banking solutions
9/1/2010 $6 mm
■
WAY Systems designs, develops and sells mobile wireless point-of-sale solutions for mobile
merchants in the U.S. and internationally
■
The acquisition will leverage WAY Systems’ substantial intellectual property and reseller
relationships to bolster VeriFone’s existing mobile portfolio and strengthen its efforts to expand the
adoption of mobile payments
Source: Capital IQ, FT Partners Proprietary Database.
Mobile / Micromerchant Payments M&A
28
Selected Profiles
Date Acquiror Target Value ($ mm) Commentary
3/4/2010 $38 mm
■
Verrus offers Paybyphone, enabling consumers to use their mobile phones to pay for parking
■
PayPoint will benefit from substantial growth in the PayByPhone parking market, the extension of
PayByPhone into other related applications and synergies from the broadening of its service
offering
6/16/2009 na
■
Mobillcash is a PC-based payment solution that allows customers to make payments online using
mobile phone
■
The acquisition provides Boku with significantly greater market coverage and presence and
enhances its existing technologies
6/16/2009 $5 mm
■
Paymo operates a mobile payment network for online merchants, enabling consumers to pay for
online purchases using their mobile phones
■
Provides Boku with significantly greater market coverage and presence and enhances its existing
technologies
1/21/2009 $11 mm
■
Paybox Solutions provides a suite of mobile payment software solutions which enable customers to
buy airtime, access mobile content, execute mobile bank services, transfer money, pay for bills, pay
at the point-of-sale and link bank cards to their virtual accounts
■
The acquisition strengthens Sybase's unwired enterprise strategy and illustrates the importance of
mobile payments in its mobile computing business
10/7/2007 na
■
Mopay is an international mobile payment platform that is aimed at vendors of virtual and digital
goods
■
Broadens their collective footprint in the US and Europe and complement each others' existing
offerings
Source: Capital IQ, FT Partners Proprietary Database.
Loyalty Payments Financings
Loyalty Payments Financings
30
Investor(s) Target Commentary
Date
Selected Profiles
Source: Capital IQ, FT Partners Proprietary Database.
Amt. Raised
09/14/2012
■ Edo Interactive provides card-linked offers that are automatically available on
credit cards, debit cards and smartphones
■ The Company has more than 140 bank partners that reach over 150 mm
cardholders
■ The Company will use the financing to expand its offering in small and medium
business markets
$15 mm
08/20/2012 $5 mm
■ SpotOn provides a loyalty network for merchants and consumers; installs tablets
at merchant locations and allows consumers to check-in using a smartphone or
card to earn offers and rewards
■ The Company received $5 mm in financing from individual investors including the
company’s founders, Matt and Zach Hyman, and Doron Friedman, founder of
Arroweye
Individual
Investors
08/07/2012
■ FreeMonee provides a marketing / loyalty platform for merchants, allowing them
to deliver offers that are linked directly to consumer's credit and debit cards
■ The Company will use the financing to hire 25-30 additional employees and
expand the product offering to additional retailers
■ Management has claimed the valuation was in the "nine figures"
$34 mm
■ LevelUp is a mobile payment and loyalty solution that leverages cloud-based
technology to allow consumers to receive loyalty rewards from merchants for
making purchases
■ The financing by T-Venture, the venture capital arm of Deutsche Telekom, is a
continuation of the Series D round announced on 6/7/12
■ LevelUp has raised approximately $41 mm since inception
08/02/2012 $9 mm
08/02/2012
08/02/2012
■ FiveStars offers consumers a card that they can use to earn rewards at various
merchants including Subway, Round Table, Metro PCS and Baja Fresh
■ Merchants can easily integrate FiveStar with 90% of existing POS systems and
receive real-time tracking and analytics on customer spending habits
■ The product integrates with email, text and social networks such as Facebook
$1 mm
■ LocalBonus offers a loyalty program whereby individuals pay with their existing
credit and debit cards to earn cash back rewards at over 800 businesses
■ LocalBonus currently operates in six cities in the United States; New York,
Denver, Seattle, Portland, Sacramento and Kansas City
■ The Company plans to use the financing to improve its product and continue
expansion
$14 mm
Payment Ventures
Loyalty Payments Financings
31
Investor(s) Target Commentary
Date
Selected Profiles
Source: Capital IQ, FT Partners Proprietary Database.
Amt. Raised
08/01/2012
■ Plink allows consumers to earn rewards (such as Facebook Credits) by shopping
with their existing debit and credit cards
■ Participating merchants include Arby’s, Burger King, Taco Bell and Quiznos,
among others
■ Plink will use the financing to grow its customer base and scale up as it moves to
compete with numerous new entrants in the retail reward and loyalty field
■ The Company had previously raised $600k seed funding in an angel round
$3 mm
05/18/2012 na
■ CrowdMob’s offering blends app promotion with discounts from local businesses
■ Consumers buy a real world product (such as a Frappuccino from Starbucks) and
receive a digital app on their mobile phones (such as a game)
■ Aiming to eventually be a full scale mobile wallet player
■ Eduardo Saverin invested an undisclosed amount in the Company
Eduardo
Saverin
05/09/2012
■ RewardLoop is a mobile loyalty platform that uses real-time POS data from
merchants, such as dollars spent and items purchased, to offer rewards to
customers
■ The Company announced $1 mm in a Series A financing led by Madrona Venture
Group
■ The funding will allow the company to further expand production of its offering
$1 mm
05/08/2012 $10 mm
■ Belly offers a cloud platform for merchants to manage their loyalty programs and
market their businesses
■ Consumers download the Belly app, link it to their card and locate places to earn
discounts and rewards
■ Already signed up over 1,400 merchants and 200,000 consumers since launching
last August
■ The Company received approximately $10 mm from Andreessen Horowitz;
previously received $2.5 mm from Lightbank and SVB on April 3, 2012
■ SavingStar enables to link special offers found on SavingStar.com, or the
company’s to their grocery and drug store loyalty cards
■ Since launching in April 2011, 1.5 million people have joined SavingStar and more
than 150 brands have run offers on the service
■ Round of funding will help SavingStar expand its membership and bring new
retailers into its network
03/08/2012 $9 mm
Loyalty Payments Financings
32
Investor(s) Target Commentary
Date
Selected Profiles
Source: Capital IQ, FT Partners Proprietary Database.
Amt. Raised
■ Switchfly helps travel companies, loyalty programs and financial services
institutions engage with their highest value customers; Saas business model
■ Product suite includes white label travel commerce and loyalty redemption
platforms, a loyalty payments engine for digital wallets, social network
engagement products, mobile solutions for travel and loyalty partners, and
personalized marketing solutions
■ $32 mm capital raised to date
03/08/2012 $15 mm
■ CardSpring offers an API that lets developers add web and mobile applications
like coupons, loyalty programs and digital receipts to payment cards
■ Consumers add merchant apps to their card by entering the card number on the
merchant website – when the card is swiped, the app is executed in real-time
01/31/2012 $10 mm
Accel,
Felicis Ventures.
Greylock,
Morado Venture Partners
SV Angel,
Webb Investment Network
11/14/2011
■ Wrapp offers a mobile application that allows users to send digital gift cards to
friends and family through Facebook
■ Originally test launched in Sweden, Wrapp reached roughly a third of the
country's Facebook users in only an eight week span
■ Wrapp's expansion to the U.S. and U.K. markets is currently underway
$6 mm
11/08/2011
$4 mm
■ Punchtab provides a loyalty platform that allows website owners, application
developers and brands to create a social and mobile-enabled loyalty program for
free
■ PunchTab provides two free products: an ongoing loyalty program that
encourages users to visit the website every day, and a one-time promotional
giveaway widget that encourages sharing the website or application
■ Linkable Networks (f.k.a. Clovr Media) provides a platform that converts TV,
radio, print, banner, text, video and mobile ads into card-linked offers
■ Ad offers with Linkable logo can be redeemed by scanning a QR code, text
short code, or dialing a number to automatically link promotion to consumer’s
debit or credit card
■ The Company previously received $8.3 mm from Bain Capital Ventures,
Common Ventures and Kepha Partners in March 2011
10/13/2011 na
■ Tapjoy offers a turnkey in-app advertising platform that enables developers to
acquire new users, drive engagement within their apps and create incremental
income by providing an ad-funded payment method
■ The Tapjoy network spans over 9,000 applications and 2,000 million global
consumers
■ Series D round; $70 mm raised since inception
07/06/2011 $30 mm
JP Morgan Asset Management,
Rho Capital Partners,
North Bridge Venture Partners,
InterWest Partners,
DE Shaw Ventures
Loyalty Payments Financings
33
Investor(s) Target Commentary
Date
Selected Profiles
Source: Capital IQ, FT Partners Proprietary Database.
Amt. Raised
06/08/2011
■ Sparkbase specializes in white-labeled gift and loyalty programs, sold directly to
Independent Sales Organizations (ISOs) and their agents
■ Sparkbase's Paycloud is a free mobile wallet application which works with
merchant's existing payment terminals
■ Sparkbase also offers reward and loyalty program services
$3 mm
■ Punchd enables small businesses to run punch-card loyalty programs on
smartphones via QR technology
■ GPS technology is used to verify that customers are in the store and prevents
against cheating
■ Punchd, which began as a senior project by Cal Poly San Luis Obispo students,
was acquired by Google in July 2011
02/10/2011 na
01/14/2011
$15 mm
■ LevelUp offers mobile payment and loyalty solution leveraging cloud-based
technology
■ LevelUp received $15 mm in financing from Balderton Capital, Google Ventures
and Highland Capital Partners; the three firms had previously put $4 mm in the
Company in January 2010
■ Tapjoy offers a turnkey in-app advertising platform that enables developers to
acquire new users, drive engagement within their apps and create incremental
income by providing an ad-funded payment method
■ The Tapjoy network spans over 9,000 applications and 2,000 million global
consumers
01/06/2011 $21 mm
Rho Capital Partners,
D.E. Shaw Venture Capital,
InterWest Partners,
North Bridge Venture,
Rho Ventures
■ CardStar develops mobile applications focused on loyalty / coupons; application
consolidates membership and rewards cards on smartphones
■ Unique sync scan technology renders one-dimensional barcodes for membership
and reward cards
■ CardStar allows consumers to access scannable cards from within a single
application and enables merchants to customize mobile offers and information to
their customers
10/21/2010 $1 mmUndisclosed
09/16/2009
■ Mocapay provides an end-to-end mobile payments platform addressing
merchants' needs for a new channel that will broaden their loyalty and gift
programs
■ Mocapay enables merchants to reach customers anytime, not just at the point-
of-sale, by encouraging purchases and building a stronger brand affinity
$3 mm
Spartan Mobile (Headington Group)
Loyalty Payments M&A
35
Date Acquiror Target Value ($ mm) Commentary
9/06/2012 na
■
Truaxis provides credit and debit-linked offers to consumers through merchants and financial
institutions
■
The acquisition allows MasterCard to increase their capabilities to offer merchants and financial
institutions a means of connecting with their customers through targeted offers and rewards
8/17/2012 na
■
SoRewarding is a "reverse" daily-deal site that allows consumers to propose deals at their favorite
merchants which are then approved or rejected
■
The Company has partnered with over 30 non-profit charities, including Habitat for Humanity Denver
and Make-A-Wish Colorado to enable consumers to donate a portion of their deal savings
5/16/2012 na
■
Sundrop Mobile offers mobile and social loyalty marketing solutions for merchants
■
The Company offers a cardless loyalty program whereby merchants collect mobile numbers at the
point-of-sale and customers are automatically registered via SMS
■
Mercury plans to integrate the solution with its secure payment processing platform
4/30/2012 na
■
Modiv Media offers mobile commerce solutions including Modiv Social, which enables retailers and
brands to offer consumers an integrated mobile coupon wallet
■
The acquisition allows Catalina to expand its offering to the mobile space
4/16/2012 na
■
Tagtile offers a loyalty program that lets customers earn "tags" by tapping their mobile phones
against "Tagtile Cubes" which are given to merchants
■
Integrated merchant dashboard allows for up-to-the minute information and analytics
■
Tagtile's assets were acquired by Facebook for an undisclosed sum
9/2/2011 na
■
Zave offers an online and mobile loyalty platform that offers merchants a data environment around
their incentives and advertising
■
Google will integrate the Company with Google Offers
Source: Capital IQ, FT Partners Proprietary Database.
Loyalty Payments M&A
Selected Profiles
