OTCQB: TLPY
www.telupay.com
SHARE STRUCTURE
Exchange/Symbol: OTCQB: TLPY Shares Outstanding:
161 Million Recent Share Price (07/24/14): $0.45
Market Capitalization: $72.66 million CUSIP:
87974T 105 Incorporated: Nevada
TelUPay International Inc.
First Island House
Peter Street, St. Helier, Jersey Channel Islands, JE4 8SG Info@telupay.com
CORPORATE PROFILE
Fiscal Year End: March 31st
TelUPay International Inc. (OTCQB: TLPY) is a US listed company that has invested circa $9.4M
over the past four years developing a proprietary mobile payment and banking technology
designed for commercial deployment in emerging countries like the Philippines and other
third world countries. TelUPay has a registered worldwide copyright and the
Company is investigating several possible patents for its 4th Generation platform targeted at first
world countries. TelUPay’s
3rd Generation technology has been installed and is fully operational in over TEN, top-‐tier
banking/financial clients and the Company is currently rolling out a TelUPay Branded Agent Network
in the Philippines, similar to what M-‐Pesa has done in Kenya. The Philippines is the 4th largest
remittance receiving country with over $20B of inbound remittances annually and conducts over
540M domestic remittance transactions a year generating over US $1.138B in transaction
fees. M-‐Pesa
generated over US $252M net revenue in its fifth year of operations (2013) on a user base of 17M
people. The Philippine market is more than 3 times the size of Kenya, providing Telupay an enormous
opportunity. TelUPay is ready to GO and requires additional capital to fund the marketing and
incentive programs required to rapidly accelerate the build out of its subscriber base in Asia and
beyond.
COMPANY HIGHLIGHTS
Micro-‐Finance: In March 2014, CardBank and the Grameen Foundation launched
TelUPay’s mobile micro-‐finance solution in the Philippines. TelUPay’s mobile micro-‐
finance solution will replace the manual collection system currently in place providing significant
savings to CardBank in its collection of loans and will enable the loan recipients to
make more frequent loan payments, as well as, P2P remittances, purchase mobile airtime and pay
bills.
An easier way to pay
With TelUPay's mobile payment solution for retailers and consumers you can now shop and pay easily using your mobile phone.
Fast and convenient
TelUPay's Mobile Payment solution lets you take payments easily, anytime, anywhere.
Secure and Proven
TelUPay's products and services are efficient, reliable and secure allowing you to concentrate on the particular needs of your business.
Who We Are
TelUPay has developed the “Next Generation” of secure mobile banking and payments technology designed for banks, mobile operators (MNOs), money transfer operators (MTOs), payment processors, retailers/merchants, credit card companies, microfinance, large corporations and other financial institutions.
What We Do
MWALLET
A stand-alone, server-side, mobile account technology specifically designed for Mobile Operators, Money Transfer Operators and other large network operators.
MPOS
Mobile payment solutions equip merchants to accept mobile payments, boosting their revenue and ensures that customers can pay fast and securely.
MBPS
Mobile money & payments technology designed for banks, mobile network operators, money transfer operators, credit card companies and other financial institutions.
ATM LITE
Enables consumers to have all the facilities of an ATM service. Registration with the user’s bank allows the consumer to pre-authorize an amount of money to be available to spend.
ATM API
TelUPay’s portfolio of its ‘4th Generation’ technology is an ATM enabling technology which leverages banks existing global investments in ATM networks...
Why Choose Us
TelUPay's "4th Generation" products will empower the three emerging channels which are most likely to gain rapid market share in the new mobile payments ecosystem. Key unique selling points in TelUPay's strategy is its own "bank-grade clearing solution" to radically reduce costs and the development of tactical compliance partnerships with Retail Banks.
Service is mandated to over 1.3M existing loan recipients. Forecasted to grow to over 5.3M loan
recipients by 2017. Targeted revenues of US $35 Million over the first 5 years.
In discussions with the Grameen Foundation to implement TelUPay’s mobile micro-‐finance
solution to the other 23 countries they conduct business.
Grameen’s global micro-‐finance business provides loans to over 155M customers worldwide.
TelUPay Branded Agent Network: In late 2013, TelUPay started building it’s own TelUPay Branded
Agent Network by contractually engaging two significant networks of agents, 1Bro and Keisha,
comprising of over 32,000 agents. They will be rolling out the service to their agents in Q3, 2014.
TelUPay will continue to seek out appropriate partnerships with existing agent networks and has
started building out its own independent network of agents providing remittances, mobile airtime
purchases and the payment of bills. Additionally, TelUPay is in discussions with The Rustan’s
Group, the second largest retailer in the Philippines to roll out its own mWallet service by Q1,
2015.
Targeted revenues of US $48.4 Million over the first 5 years based on a conservative
take-‐up of only 5% of the potential unbanked market. Agent Network -‐ 1Bro (30,000 agents) and Keisha (2,000 agents). Rustan’s has over 800 encashment locations including 300 FamilyMart stores, 300 Starbucks, 50 supermarkets and over 150 other retail establishments.
White-‐Label Banking Clients: TelUPay has installed its mobile banking and payment technology into four top-‐ten Philippine banks with collectively over 10 million customers that are launching
comprehensive marketing programs, that include boots on the ground and specially designed incentive campaigns that will roll out throughout 2014.
Targeted revenues for 2014 -‐ US $450,000.
Management’s goal in 2014 for its white label banking clients is to increase the active user
base from 40,000 (April 2014) to over 150,000 users by the end of the year.
TelUPay will continue its marketing/incentive campaigns with its white-‐label clients to aim for
2 Million active users by 2017.
TelUPay expects to generate approximately US $8.00 per year from each active user.
Remittance & Payment Terminations: In 2013, TelUPay developed a custom application for
Megalink (a Philippine ATM switch servicing 15 national banks including BDO, the largest
bank in the Philippines), enabling it to automate the termination (routing of funds from
one bank to another bank) of inbound international remittances from Western Union and other
remittance companies.
Targeting 600,000 transactions per month by the end of 2014. Targeted revenues -‐ US $200,000
(2014).
TelUPay has now installed the same remittance termination service with ArtaJasa, Indonesia’s
largest ATM network servicing 70 national banks.
Phase I – Launched service to terminate inbound international remittance transactions from Western
Union and other Money Transfer Operators in the Philippines and Indonesia.
Phase II (Q4 2014) -‐ connect Megalink and Artajasa to terminate immediate payments and
remittance transactions between the two countries.
Targeted revenues US $20 Million over the first 5 years.
Phase III (2015) -‐ TelUPay aims to provide Megalink its technology to build an
Asia-‐Pacific payment hub connecting ATM switches throughout the Asia Pacific region to
process immediate payments and real-‐time remittances at far lower costs than current
conventional methods of remitting money.
FINANCIAL OVERVIEW
TelUPay UK LIMITED
In the second quarter 2014, the UK Payments Council is planning the launch of its mobile proxy
database scheme across all of the UK’s 36 participating banks where 12 Million UK accounts will be initially registered. TelUPay has recognized a unique opportunity in the UK and has now
assembled a class “A” senior management team for its UK initiatives led by Dr. Vincent Power,
who all have proven experience in financial markets, sales and payments products throughout the UK and European regions. The team has developed a new ‘Immediate Payments’ strategy for the UK, which leverages many of TelUPay’s core services that will dramatically extend the existing payment capabilities to enable a truly DISRUPTIIVE solution in the clearing and settlement processes. Patents are being sought in this regard.
TelUPay’s 4th GENERATION USPs
TelUPay’s 4th Generation platform will radically differentiate TelUPay from its competitors
by adding the following new services:
Immediate Payments that will directly compete with Faster Payments in the UK providing lower costs and improved services.
Immediate Payments that will directly compete with ACH clearing and the three-‐day settlement
cycle providing lower costs and immediate settlement.
FastCash and Mobile Banking – TelUPay’s technology will transform a mobile phone into a mini ATM, enabling “cash-‐ out” or “top-‐up” on the go where it is most convenient and it will
substantially reduce retailers’ “cash-‐in” handling charges.
Loyalty cards -‐ TelUPay’s technology will turn loyalty cards into payment cards. Inspired
by MCX, a major threat to retail payments in the USA, TelUPay’s retail fulfillment service and CRM will compete with the current issuer acquirer model for retail payments. Additionally, the mobile service will enable the displacement of current loyalty programs, as the mobile service can track both geo and non-‐store purchases, as well as, relaying messaging to the consumer.
Viral marketing -‐ Incentivized by Barclay’s PingIT, TelUPay will provide viral
marketing campaigns relying on P2P payments (i.e., the customer does the networking) for the
adoption of mobile payments and its convenience versus cards.
Emulating Monitise’s success in the UK of building its business through relationships with key
industry executives, TelUPay’s senior management team is well underway in building a UK team
comprised of senior UK industry executives and experts and it conservatively estimates a 2.5%
penetration of the UK’s immediate and retail payment market over the next five years. TelUPay
expects to process some 0.75B UK transactions annually by year 5 and will rapidly expand this
service into mainland Europe post further financing.
MARKET OPPORTUNITY
In 2007, Kenya launched M-‐Pesa (mobile money in Swahili). It was originally meant to be a service
to enable Kenyans to repay micro-‐loans with ease, similar to TelUPay’s micro-‐ finance project
with CardBank and The Grameen Foundation that launched in March
2014. Using the lessons learned from M-‐Pesa, the most successful mobile banking and payment
service worldwide, the keys to rapidly building out the subscriber base is the implementation of effective marketing and incentive programs. M-‐Pesa spent circa US $10M in marketing and US $20M for incentives in its first three years of service to go from zero to over 9 million M-‐Pesa subscribers. The key to their success was an incentive program that paid out US $1.07 to its agents for each new active user that was signed up to the service. In 2013, its fifth year of operation, M-‐Pesa has over 17.1M M-‐Pesa subscribers generating over US $252M in net revenue. TelUPay, with sufficient funding, will incorporate similar marketing and incentive campaigns in its deployment of services in the Philippines, Indonesia and Peru.
LATIN AMERICA HIGHLIGHTS
TelUPay entered Latin America through its license agreement with Metapago in Peru. In 2013,
TelUPay completed the integration of its mobile banking and payment service and its Agent
Remittance and Management System (ARMaS) with its strategic partner Metapago under
their brand name “Monet.” The Monet service will be rolled out to Metapago’s network
of 6,000 agents throughout Peru. Management’s goal is to have over 200,000 active users in Peru by end of 2015 generating approximately US $0.40 per user per month or $2M annually. Metapago has assembled a series of four 15-‐second commercials for its launch of the service in 2014.
THE MOBILE BANKING AND PAYMENT INDUSTRY
According to Research and Markets, the worldwide mobile payment market is expected to reach $410 billion in 2013, and with growth at CAGR of 59 percent through 2017, the market is expected to
exceed $1 trillion by end of 2015 and $2 trillion by end of 2017. Berg Insight predicts the
number of mobile payment users worldwide will surpass 894 million users by
2015, a CAGR of 59.2% from 61 million in 2011.
EMERGING INTERNATIONAL TRENDS & DRIVERS
Real-‐time: The world is moving to real time -‐ evidenced by recent studies. This will be
applicable for peer-‐to-‐peer (P2P) transactions, but more sophisticated applications will emerge
over time. The value to consumers and businesses of instant fund transfers, is that real-‐time
transactions provide the capability to disaggregate payments and significantly reduce
reconciliation and accounting costs.
Challenge to cards: While card volumes are growing in emerging economies, card models
and schemes seem largely outmoded as cards begin to be dematerialized into virtual wallets.
While companies like Square have used cards as an easily available platform for entry to the
payments market, the card stands out as a legacy, high cost technology -‐ why not directly
access a bank account via your mobile phone (evidence Sofort, Ideal, Zapp)?
THE PRODUCTS
TelUPay’s “4th Generation” products will empower the three emerging channels which TelUPay
believes are most likely to gain rapid market share in the new mobile payments ecosystem
(Retailers & Merchants, ATM Operators and Mobile Operators). TelUPay’s Key USP is its own
“bank-‐grade clearing solution” to radically reduce costs of processing financial transactions and
its key strategy is the development of tactical compliance partnerships with top 200 firms.
mWallet
• Stand alone system
• Closed loop systems
• Automatically generated mWallet accounts
• Rewards/Loyalty mWallet accounts
• No bank required
• Service the unbanked
mPOS Card-‐Not-‐Present Transactions:
• iPhone and Android mobile POS
• Mobile QR code generation
• QR and linear barcode scanning
Card-‐Present transactions
• iPhone and Android mobile POS
• Magnetic card swiper & signature
• PCI DSS compliant
Chip & PIN reader
Mobile Banking
& Payment Sys.
• Integrated to core banking system or ATM Operator:
• Enrolment, Balance Inquiry, Mini-‐Statements, P2P Fund Transfers, Mobile Top-‐Ups, Bill
Payments, International Remittances, Transaction History, Favorites, Change MPIN and
ATM PIN, Text/Call customer support
ATM Lite
• Fast Cash – Cash withdrawal at retailers
• Balance Look ups
• Mini-‐statements
• P2P fund transfers
• Top-‐Up Operators:
• Transport, Mobile Top-‐Ups, Ticketing (Cinemas),
Parking, Utilities.
• mWallet – for loyalty/rewards programs
• Request to pay
• Block card/phone
• Change ATM PIN
• Geo-‐navigation – ATM locations
ATM API
• Immediate payments
• Reduced processing fees
• New revenue streams
• Interbank transfers
• P2P transfers
• eBanking & mBanking
• Check replacement
• Direct debit replacement
MANAGEMENT
Adrian C Ansell – President & CEO
Mr. Ansell has over 30 years of experience in high-‐tech industries. As an Electronics
Technologist and a Business Graduate, he was the co-‐founder and primary architect responsible
for the overall design and build out of TelUPay's mobile banking and payment technology and
business. Previously, Mr. Ansell was actively involved in the development of numerous new
businesses ranging from the online health industry (HealthPricer.com TSX.V: HPC.V), to an online
payment firm eCharge Corporation back in the late 1990’s. Mr. Ansell also worked in
sales, sales management and marketing positions with several major corporations including,
Intermec Systems Corporation (Litton Industries), Honeywell, Robert Shaw Controls and MCC
Powers. Mr. Ansell graduated from the University of British Columbia with a Bachelor of Commerce
Degree and two years of Electronics Technology at DeVry Institute of Technology.
Dr. Vincent Power -‐ Director – TelUPay UK Limited
Dr. Vincent Power has over 20 years of significant experience in domestic and international
payment schemes and has introduced an innovative, exciting new vision for TelUPay’s European
initiatives. Dr. Power has extensive work experience with numerous leaders in the payment
industry including; (London), The European Banking Association (roll out of SEPA STEP 1-‐
Paris), European Central Bank (Frankfurt), Alberta Treasury Bank (Canada), Royal Bank of Scotland
(UK), SEB Bank (Stockholm), the Bank of Tokyo Mitsubishi, which included the setup of the Euro
Clearing system consolidation in London and numerous other tier 1 financial institutions.
Most recently, Dr. Power was employed as a principal consultant at VocaLink (London), which
provides operations for the UK Schemes -‐ BACS, Faster Payments and also operates the largest
ATM switch in the UK. Whilst at VocaLink he developed a strong interest in both immediate and
mobile payments. Dr. Power has a PHD in applied Mathematics for environmental and three
dimensional computational modeling gained from Stellenbosch in South Africa and
collaboration from the University of Boulder, Denver Colorado and a Bachelor of Science (Hons)
from the University of Wales.
Peter John Robinson -‐ Director – TelUPay UK Limited
Mr. Robinson is a highly experienced General Manager with over 30 years experience in
sales, marketing and sales management within the Payments Industry. Mr. Robinson worked with
various organizations including HP, Validsoft, was Managing Director (UK) of Opsol Inc.,
co-‐founded Payment Resources Limited, was Director of Sales and Marketing for Alaric
Systems Limited, was responsible for building a Sales and Marketing team for TANTAU
Europe, and was Vice President -‐ Sales & Marketing for ACI Ltd. In his early years, Mr.
Robinson worked for Tandem UK for 8 years and IBM UK for
13 years. Mr. Robinson received his degree in Mathematics at Hull University.
Roger Boak -‐ Director – TelUPay UK Limited
Mr. Boak spent 30 years working as a senior Sales Executive and Consultant with 26 years of those
years with HP, Compaq and Tandem. Roger wholesaled many important financial solutions
to the Cxx level of major banks and finance organizations while working within HP’s
NonStop Enterprise Division, part of its Business Critical Servers business. Mr. Boak’s
customers included: HSBC, Santander (Alliance & Leicester & Abbey National), National Australia
Group, HBOS (Bank of Scotland), Royal Bank of Scotland, MBNA, JP Morgan, VocaLink, TSYS, AXA (Sun
Life), Forward Trust, Pirelli, GEC, Peugeot and British Steel. Prior to his very successful career
in HP, Mr. Boak was employed as an Articled Clerk in Stockbroking, which led him into the
Investment Analysts Sector of IBM, where he was first introduced to Computing. It was at IBM where
he gained experience in Operations, Programming and Systems Analysis. Following ICI, he
joined GEC where he used his financial knowledge to lead a team developing the Sales Ledger, Order
Processing and Stock Management Systems to be implemented throughout the group.
Perseverando M. Hernandez -‐ Director – TelUPay International Inc., President – TelUPay SE Asia
Mr. Hernandez, co-‐founder of TelUPay, has largely been involved in establishing and managing
various companies ranging from engineering design, software development and real estate
construction. Previously, Mr. Hernandez was the President and CEO of X-‐Eye Solutions Inc, a
solution provider for the security & surveillance industry. Mr. Hernandez was also the
Chairman of Macro Machinery & Industrial Supply Inc., a mechanical engineering design group and a manufacturer’s representative for the Philippine market. Prior to Macro Machinery, Mr. Hernandez
was the CFO and a BOD of Xinapse, Inc., a developer of tailor-‐fitted business solutions for
private companies and government agencies throughout the Philippines. Mr. Hernandez is a graduate BSC of University of the Philippines.
Michael J Greenup – Independent Director – TelUPay International Inc.
Mr. Greenup has been involved in Telupay as an investor and advisor since its inception in 2011. In
September 2013, the Company asked Mr. Greenup to join our board as in independent director. Mr.
Greenup has extensive business experience running a number of successful companies in the
agriculture and import/export business sectors and has been a director of several companies over
the years. Mr. Greenup’s work experience also includes being a Commissioner, Justice of the Peace
and was a SHIRE Councilor for 12 years with 6 of those years as SHIRE President and Mayor.
TelUPay International Inc.
First Island House
Peter Street, St. Helier, Jersey Channel Islands, JE4 8SG Info@telupay.com
DISCLAIMER – PRIVATE PLACEMENT – STRICTLY CONFIDENTIAL
By accepting this confidential document (the “Document”), and in consideration of it being made
available to such recipient, each recipient agrees to keep strictly confidential the information
contained in it and any information otherwise made available by TelUPay International Inc.
(“TelUPay”), whether orally or in writing. In the case of a corporate recipient, this Document may
only be disclosed to such of its directors, officers or employees who are required to review it for
the purpose of deciding whether to make an investment in TelUPay. This Document has been provided
to each recipient at their request, solely for their information, and may not be reproduced,
copied, published, distributed or circulated, to any third party, in whole or in part, or published
in whole or in part for any purpose, without the express prior consent of TelUPay. The sole purpose
(the “Purpose”) of this Document is to provide information on TelUPay to those parties who have
expressed an interest in investigating the possibility of investing in TelUPay in order that they
may assess whether or not they wish to proceed with a more detailed review of the matters discussed
in this Document. The information in this Document has been prepared and distributed by, and is the
sole responsibility of, TelUPay. It has not been fully verified and is subject to material
updating, completion, revision, verification and further amendment. This Document and its contents
do not, and are not intended to, constitute, or form any part of, an offer for sale, prospectus,
invitation to subscribe for or purchase or otherwise acquire transferable securities within the
meaning of sections 85 and 102B of the Financial Services and Markets Act 2000, as amended (“FSMA”)
in TelUPay, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in
connection with, any contract or commitment to acquire any securities. This Document has not been
approved by an authorised person in accordance with section 21 of FSMA. Distribution of this
Document is restricted to a very limited number of parties who have expressed an interest in
TelUPay. This Document is only being distributed to persons who are reasonably believed by TelUPay to be: (a) persons who have professional experience in matters relating to investments falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (b) high net worth entities falling within Article 49 of the Order; or (c)
persons who are certified high net worth individuals within the meaning of Article 48(2) of the
Order; or (d) persons who are certified sophisticated investors within the meaning of Articles 50
and 50A of the Act; or (e) persons who are otherwise permitted by law to receive it (all such
persons together being referred to as “Relevant Persons”). This Document is directed to, available
only to, and any invitation, offer or agreement relating to this Document will be engaged in only
with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this
Document or any of its contents. By accepting this Document and not immediately returning it, the
recipient is deemed to represent and warrant that: (i) they are a person who falls within the above
description of persons entitled to receive this Document; and (ii) they agree with, have read and
will comply with the contents of this notice. Investment in unlisted companies (and those not on a
recognized investment exchange) carries high risks to your capital, is highly speculative and you
may not get back the full amount invested. Before investing in a project about which information is
given, potential investors are strongly advised to take advice from a person authorised under FSMA
who specializes in advising on investments of this kind. Potential investors must rely on their own
examination of the legal, taxation, financial and other consequences of an investment in TelUPay,
including the merits of investing and the risks involved. Potential investors should not treat the
contents of this Document as advice relating to legal, taxation or investment matters and are
advised to consult their own professional advisers concerning any acquisition of shares in TelUPay.
No undertaking, representation, warranty or other assurance, express or implied, is made or given
by or on behalf of TelUPay, or any of their respective affiliates, any of their respective
directors, officers, employees, agents, advisers or any other person as to the accuracy,
completeness or fairness of the information or opinions contained in this Document, no reliance
should be placed on the accuracy, completeness or fairness of the information or opinions in this
Document and no responsibility or liability is accepted for any such information or opinions or for
any errors or omissions. The information contained herein is being supplied as a guide only and
prospective investors must make their own investigations and satisfy themselves as to the condition
of TelUPay and the accuracy and completeness of the statements contained herein. This Document
should not be considered a recommendation by TelUPay or any of their respective directors,
officers, employees, agents, advisers or any other person in connection with any purchase of, or
subscription for, securities of TelUPay. Save in the case of fraud, no liability is or will be
accepted for such information by TelUPay or any of their respective directors, officers, employees,
agents or advisers or any other person. Certain of the information contained in this Document has
been obtained from published sources prepared by other parties. Certain other information has been
extracted from unpublished sources prepared by other parties, which have been made available to
TelUPay. TelUPay has not carried out an independent investigation to verify the accuracy and
completeness of such third party information. No responsibility is accepted by TelUPay or any of
its directors, officers, employees, agents, advisers or any other person for the accuracy or
completeness of such information. Certain statements in this Document are forward-‐looking
statements, and this Document itself has been based upon a number of assumptions, forecasts and
projections which by their nature are forward looking. Forward-‐looking statements are typically
identified by the use of forward-‐looking terminology such as "believes", "expects", "may",
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expressions, or by discussions of strategy that involve risk and uncertainties. By their nature,
forward-‐ looking statements, assumptions, forecasts and projections involve a number of risks and
uncertainties, and in some cases are based on estimates and incomplete information, that could
cause actual results or events to differ materially from those expressed or implied by the
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impact they have on the assumptions, forecasts and projections contained in this Document, could
adversely affect the outcome and financial effects of the plans and events described herein. The
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