Ibrahim Ahmed Head – Prepaid Cards & Electronic Payments

� Introduction on prepaid card

� Closed loop : Payroll (WPS) prepaid cards

� Open loop : Travelez

� Target market: Travel segment – usage and benefits

� The importance of partnership in the prepaid business

� Key areas to focus for launching a successful program

� Challenges

� Opportunities and Future Trend

Introduction

Prepaid cards:

“A card that you load with money in order to purchase goods or services

wherever the card is accepted.”

• Open or close loop

• Reloadable or non-reloadable

• Channels of use could vary based on the program type : POS, ATM, Online

• Examples of prepaid cards : Gift, Travel, Teen, Healthcare, Payroll

Payroll

• Launched in October 2009

• A fully compliant WPS solution

• A closed loop payroll card.

• Over 100,000 registered cards

• Disbursement channels : branches, camps, designated ATMs*

Travelez Cards

• Launched in June 2012

• Target market : Travellers – inbound and outbound

• Standard and Premium Reloadable Cards available in 2 currencies : AED & USD

• Can be used globally on VISA network – POS, ATM, Online

RELOADABLE

Travelez Cards

• Launched in June 2013

• First Travelmoney USD VISA card in the region

• Ideal for gifting

• Use for POS & Online

NON-RELOADABLE

Travel segment : Usage & Benefits

• A secure alternative to cash

• An ideal replacement to Travelers Checks

• Better control over spending

• Convenience and ease of use

Partnership

Partnership between Al Fardan Exchange & MAF Finance

MAF Finance :

• Associate member of VISA – connected with M2 as the processor

• Management of funds

• Provide services related to prepaid program setup and operations

Al Fardan Exchange :

• Establish distribution network for sales and reloads

• Promote the program among the corporates and individuals

• Provide system and operational support to sub agents

Partnership : Importance

• Rely on a partner that is an expert in the field of prepaid solutions rather than do-it-yourself

• Focus on sales and marketing

• Setup distribution network

• Become early movers and thereby penetrate in the market by outsourcing the services

• Leverage on the skills and knowledge earned by the partner

• Market research

• Define your target customers

• Choosing the right vendor/partner

• Co-branding/co-affinity/do it own approach

• Card design and packaging

• Define pricing : card issuance, card activation, card load/reload

• What are the value add / differentiating factors of the product

• The system and operational training : card registration and issuance, card inventory

• Marketing plan for the product

• Customer support

• KYC & Compliance checks

• Reload channels

Launching a prepaid program : Key areas to focus

• Understand changing customer needs

• Regulatory requirements

• Competition

• Commercial terms with all participating stakeholders

Challenges

• Huge opportunity for prepaid cards based on target market needs

• Over 50% of the world population are unbanked

• Prepaid “plastic” cards would become virtual (mobile)

• Over 4.2 billion people use atleast one cellphone (out of 7 billion)

• Travel and Payroll : the 2 key growing segments for prepaid cards in UAE

• A secure, instant and simple alternative for traditional P2P money transfers*

Opportunities

www.alfardanexchange.com

www.travelezcard.com