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Deutsche Bank

Markets Research
North America
United States
TMT
Computer Services & IT
Consulting

Industry
Mobile Payments

Date
10 October 2013
Industry Update
Key Takeaways From Money2020
Industry Conf
Still early in mobile revolution, but 2014 could begin to sort out players

________________________________________________________________________________________________________________
Deutsche Bank Securities Inc.
Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should
be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should
consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST
CERTIFICATIONS ARE LOCATED IN APPENDIX 1. MICA(P) 054/04/2013.

Bryan Keane
Research Analyst
(+1) 415 617-4246
bryan.keane@db.com

Ashish Sabadra
Research Analyst
(+1) 415 617-3329
ashish.sabadra@db.com

Top picks
Visa Inc. (V.N),USD190.48 Buy
MasterCard (MA.N),USD673.33 Buy
Source: Deutsche Bank
Companies Featured
Visa Inc. (V.N),USD190.48 Buy
2012A 2013E 2014E
EPS (USD) 6.19 7.58 8.84
P/E (x) 18.3 24.2 20.8
EV/EBITDA (x) 11.2 15.3 13.3
MasterCard (MA.N),USD673.33 Buy
2012A 2013E 2014E
EPS (USD) 22.04 26.11 30.34
P/E (x) 19.6 25.2 21.7
EV/EBITDA (x) 11.6 15.2 13.1
Source: Deutsche Bank

This week, we attended and moderated a panel discussion on Cloud POS at
the 2nd annual Money2020 industry conference (4200 attendees vs +2000 last
year), which we believe is the best payments industry conference. Key themes
from the conference include: the rise of tokenization, opening up API for
developers, app marketplaces, software based cloud payments, NFC still being
dead, BLE gaining interest, CNP interchange fee to fall, digital gifting set to
rise, Judge Leon's ruling changing priorities (consensus was it is more likely to
stand), and US EMV interest low. We found Paypal's strategy the most
interesting and we are even more confident that Sell rated Verifone is poorly
positioned. In this report, we highlight several emerging companies including
Paypal, Braintree, Stripe, MCX, Dwolla and profile several up and coming
payment companies.
Networks adapting and well positioned
As the market strives for frictionless mobile payments (Braintree's processing
for Uber the standard), value added services surrounding the commoditized
payment becomes critical. We believe the networks V and MA need to adapt
to mobile payments and last week's announcement on setting up standards for
tokenization is a step in the right direction (emphasis appears to be moving
away from promoting hardware based payment solutions like NFC). Merchant
network MCX still appears more of a bargaining tool used against the
networks for lower rates than any real disintermediation threat. We have heard
positive feedback about new CEO Dekkers Davidson and MCX appears
confident it will launch a solution in the coming months with the help of FIS
and Gemalto so the consortium still bares watching. Overall, we remain
confident the networks Visa and MA remain defensible and will benefit from
the secular mobile payment movement.
Acquirers have role but need to do more
Acquirers cannot find themselves relegated to just payment or its margins will
be squeezed. We believe its critical for acquirers need to work with developers
to become deep down embedded and customized in the payment process. The
acquirers need to continue to stay relevant in the process by adding value
added services like data analytics. Value added resellers and ISOs will need to
assist merchants in adopting seamless mobile solutions. Vantiv continues to
be a leader in merchant acquiring, leveraging its recent acquisition of Litle to
take share in ecommerce.
Hardware POS terminal in trouble
Merchants deciding on mobile POS solutions are beginning to rethink the need
of the traditional POS hardware (causing refresh cycles to get extended). We
believe POS hardware terminals are becoming commoditized and must be
transformed into software and services. Cloud POS solutions are clearly the
wave of the future, with the use of tablets are smartphones continuing to
grow. In fact, we believe the traditional hardware terminal market growth
market is likely to turn negative (if it hasn't already). We believe Verifone is in
disarray internally and continues to conflict its own channels. New PAY CEO
Paul Galant has his work cut out for him to rapidly change PAY's business
model.
10 October 2013
Computer Services & IT Consulting
Mobile Payments

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Key Companies at Money
2020
For a more in-depth discussion on mobile payments, please see our May 16 mobile
payments report Payments becoming Commoditized; Value-Added Services the Key
In this report, we highlight recent announcements/trends at the Money2020 expo
including PayPal, MCX, Braintree, Stripe, Paydiant, Dwolla, and many other compelling
emerging private companies.
PayPal
At Money2020 on October 8, PayPal announced it had plans to develop a new checkout
process for its mobile app incorporating both QR codes and a PIN process at the point
of sale in order to authenticate purchases made with its mobile payment app. The
announcement expands PayPal acceptance and allows both users and merchants more
options in terms of acceptance. Both Starbucks and LevelUp use scanning technology
to read QR codes from their mobile payment apps.
In September 2013 PayPal announced the release of its proprietary software solution
Beacon, which aims to compete with NFC contactless payment systems. The
announcement creates further uncertainty surrounding NFC adoption and provides
further disintermediation risk to traditional POS terminal systems while shaking up the
remaining players in the payments value chain namely acquirers and networks.
Beacon and Bluetooth LE (BLE) technology can be easily integrated with next gen POS
systems such as Erply, Leaf, Leapset, ShopKeep, Revel, Booker and Vend as well as
traditional cash based registers such as Micros and NCR. In addition, there are new
entrants into the market such as Estimote who now offer 3 hardware Beacons for $99.
We expect multiple new entrants to offer BLE hardware and access as the relative lack
of adoption surrounding NFC technology provides ample opportunity for new entrants
such as BLE technology in contactless payments. An example of the BLE potential,
Estimote has a roughly 50 meter range for contactless payment while NFC range is only
4-5cm or about 2 inches. Pricing for Estimote would be 1 beacon for every 100 square
meters costing around $5,000.
Paypal has begun to pilot the Beacon enabled shopping experiences in Q4 and the full
roll out is planned for early next year. The company has not yet set a price point for the
Beacon, but expects the cost of the device will be in the double digits. As part of the
announcement of Beacon, PayPal has given developers open access to the mobile in
store API. An example of how this benefits retailers, a drugstore could populate your
prescriptions using Beacon as you walk into the store, pay for your bill and send you a
receipt all without having to swipe a card or open a wallet.
In addition to open access API, Beacon has the potential to extend beyond payments
into value-added services such as micro location based targeted offers, coupons and
marketing messages.
PayPal has also gained traction with its PayPal Here hardware, emulating a similar
dongle device introduced by competitors. PayPal Here uses the same functionality as
competitors; relying on a magnetic card reader to convert card data from swiping into
an audio signal that is transmitted to the smart phone through the audio jack where the
device is plugged in. Once the swipe occurs the data is digitized with the PayPal Here
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Computer Services & IT Consulting
Mobile Payments

Deutsche Bank Securities Inc. Page 3



app and routed to the payment processor, or can be directly linked to PayPal accounts.
Advantages of PayPals mobile service include its pricing (270bps vs 275bps for
competitors), the ability to process and settle checks at no cost, and a dedicated
customer service department to fix any issues with the PayPal dongle.
In February 2013, the company announced PayPal here would be rolling out in the UK
with a new hardware to accommodate chip based cards prevalent in the European
market. The company plans to use the UK as a lever to further expansion throughout
the rest of Europe.
Braintree
Braintree has quickly established itself as a disruptive online platform for merchant
payment processing and mobile payment and billing solutions through its online
gateway and mobile platforms.
Acquired by EBay/PayPal for $800m
Announced September 26, 2013, Braintree agreed in terms to be acquired by EBay inc.
in an $800m all cash deal in an effort to bolster PayPals payment platform and mobile
capabilities. The deal provides access to both the data and processing transaction fees
from Braintrees impressive network including clients Opentable, Livingsocial, Uber
Technologies, and Airbnb. In addition to its processing capabilities, the acquisition
provides PayPal with access to Venmo, Braintrees mobile P2P application. Venmo
processes over $4bn in mobile payments, which would boost PayPals annual mobile
processing to roughly $20bn. Braintree currently charges 290bps and $0.30 per
transaction.
Venmo was originally acquired by Braintree in August 2012 for $26.2m. The company
has continued to develop Venmo, adding Venmo Payouts for small businesses in April
2013 providing API solutions to pay multiple independent contractors. API removes
checks from the payment process allowing for small businesses to pay contractors via
email or phone number, with the funds settling the following day. Venmo currently
charges $0.25 per transaction. The company has also released Venmo Touch, a one
touch payment solution for mobile applications that saves consumers time without the
hassle of re-entering card information for each transaction. The service allows you to
use card information across multiple apps for payments without requiring the download
or use of a separate app.
Braintree has invested in additional platforms for mobile as well including Marketplace,
introduced in August 2013. The Marketplace platform, geared towards enabling mobile
payments for small, market type businesses simplifies paying and managing vendors
and sellers by providing a direct link between buyer and seller. By managing the
transaction itself, Braintree removes traditional marketplace operators as well as
previous regulatory and compliance burdens. Braintree also manages the 1099 tax
reporting inherent with transactions. In addition, merchants can specify collections fees
on every transaction, as well as the timing of when funds are received; choosing to pay
providers right away or put funds in escrow until delivery or fulfillment is complete.
Stripe
Stripe is a developer service that enables businesses to accept online payments as well
as allowing developers to build code, APIs and documentation for payment
acceptance. Stripe charges a fee structure in line with Braintree; 290bps + $0.30 per
transaction. Although higher than traditional processing fees from networks, the
company claims that the total cost to customers is lower because of zero setup,
monthly fees, minimum charges, validation feeds, card storage fees and no additional
charge for failed payments. In addition, the company offers breakpoints or volume
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Computer Services & IT Consulting
Mobile Payments

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pricing for businesses with transactions exceeding $1m per year (although these
breakpoints are not disclosed). Features Stripe has developed include recurring billing
functions for arbitrary intervals allowing for whatever frequency desired, subscription
quantities on allowing for per seat pricing and prorating based on customer volume.
In June of 2013, Stripe rolled out its Payouts feature, allowing marketplace businesses
to send out programmed and scheduled bank transfers to US bank accounts.
Companies including Lyft, Sidecar, and Exec have trialed the payout feature which is
focused on businesses that want the ability to pay multiple suppliers. Similar to
Braintrees API payouts feature, Stripe charges a flat fee of $0.25 per transaction
In August of 2013, Stripe announced it had partnered with Kabbage; an online provider
of loans to small businesses. The partnership will allow businesses that process
payments online to now apply for financing through the Stripe payments platform. In
addition, the company announced it had expanded its service to the UK, now allowing
UK merchants and vendors to accept online payments through its platform. The move
comes a year after the company successfully moved into Canada in an effort to expand
and compete with payment processors from Paypal to banks, networks and card
companies. Stripes stated goal is to bring the platform to under banked, underserved
and developing markets, although establishing its presence in developed markets is
likely the first step.
Paydiant
Paydiant, a cloud based mobile wallet and payment solution provides a means for
banks, retailers and processors to enable contactless mobile payment options as well
as a cash access platform while skipping intermediaries and effectively reducing
payment processing costs and fraud costs for merchants. The mobile wallet and
payment solution operates with existing forms of payment including PIN and signature
debit, credit and prepaid allowing customers a variety of payment experiences IE pay in
store through traditional terminals, pay online, pay at the table or pay a bill. Unlike
traditional branded mobile wallets with exclusivity and intermediaries that complicate
the payment process, Paydiant allows developers to expand mobile wallet and payment
solutions in existing mobile apps through SDK. The API interface provides functionality
with apps, smart phones, POS systems and payment terminals to accommodate both
existing and new technology without merchants needing to replace expensive payment
hardware or devices. A feature separating Paydiant from mobile wallet competitors is
its security features. Instead of storing sensitive card data on a users phone, Paydiant
keeps payment card numbers and cardholder data securely stored on a PC compliant
SAS70 certified data center. With no information on the device, the risk or opportunity
for data theft and/or fraud is greatly reduced.
On October 2, 2013 Paydiant announced the company had partnered with Subway to
power the sandwich chains mobile payment app. Subway is currently the largest
restaurant chain by location with 40k stores globally and 27k domestically. Paydiants
app, which will be branded with the Subway tag, is expected to be deployed in a
national rollout rather than a pilot later this year and marks a major win for the
company.
On October 8, 2013 the company announced it had partnered with CU wallet to provide
its recently announced credit union focused mobile wallet offering. CU wallet is one of
the first mobile payment options designed for credit unions, with more than 20 unions
signed to date ranging from $100m to $6bn in assets and 2.8m members. CU wallet
will use Paydiant mobile wallet technology to integrate the companys capabilities into
its existing applications including contactless mobile payments, e-receipts, targeted
offers and online shopping carts.
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Computer Services & IT Consulting
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Merchant Commerce Exchange (MCX)
In April 2013, MCX announced a partnership with Gemalto to build and develop its
mobile wallet. Initial design plans for the wallet are cloud based and support barcode
technology; another perceived loss for NFC and a further setback for adoption in the
US. The wallet will connect directly to users checking accounts which also poses
disintermediation risk to the networks by bypassing the traditional payments chain.
MCXs new mobile wallet will be built around Gemaltos Allynics Mobile Payment
platform which allows mobile wallet software as well as a software development kit or
SDK. The SDK provides integration for merchants into existing mobile applications with
the added ability to customize offerings.
In July 2013, MCX announced it was partnering with Fidelity National (FIS) to power a
secure payments network for the mobile wallet feature. The partnership allows MCX to
leverage FISs payment network infrastructure in order to authorize and execute
transactions in a secure fashion as well as handling routing and settlement.
MCX named new CEO Dekkers Davidson on July 18, 2013 ending the long awaited
announcement. Davidson formerly headed Barclaycard U.S and has been a leader in
financial services and mobile technology for 25 years. He was responsible for
developing, implementing and launching the first cloud based mobile commerce wallet
in the US designed to be merchant friendly, establishing partnerships with more than
50 retailers, card issuers and processors.
Dwolla
Dwolla is a domestic focused online and mobile payment system and cash only money
transfer platform offering arguably the most competitive fee structure. Dwolla charges
$0.25 on transactions over $10 and offer its services free of charge for any transaction
under $10. Dwolla is able to remain competitive because it does not process plastic
transactions; credit and debit card transactions are not allowed. However, in contrast to
the ~2%-3% charged by competing network and mobile money transfer services,
Dwolla remains very competitive from a pricing standpoint. Dwolla also allows P2P
money transfer with both social network contacts as well as direct phone contacts.
Merchants who use a Dwolla enabled point of sale can initiate payments as well. Their
POS terminal report nearby customer that have the Dwolla app, and the merchant can
select the customer, who then confirms payment through a transaction on his device.
The ability to link directly to consumer bank accounts precluding the need to pay
interchange keeps Dwolla competitive
On May 25, 2011, Dwolla released FiSync integration which allows instant transactions
for financial institutions instead of the standard 2-3 day clearing period associated with
ACH transactions. The cost wont be any different than an ACH transaction, but the
value-add lies in the fact Dwolla settles the transactions instantly rather than over the
course of several days.
In addition to the companys core money transfer business, Dwolla provides additional
services to help facilitate money transfer. MassPay allows the payment of up to 3000
people at once; effectively replacing the need for a payroll system by allowing mass
money transfer with scalability. Spots, is an application allowing users to identify
merchants in proximity to their current location who accept Dwolla. Proxi, similar to
spots, is a geo location service that allows Dwolla users to identify other Dwolla users
nearby. Grid is a fraud protection service providing security for users to protect their
credit and debit card information. Instant is an opt-in feature that allows for a user to
borrow up to $500 in a given month.
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Computer Services & IT Consulting
Mobile Payments

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Private Companies
Below are lists of in our view the most compelling digital wallet, mobile banking/wallet
solution, merchant acquiring/transaction processing, mobile marketing/loyalty program,
and mobile POS companies at the conference. We believe these firms could influence
over the payments industry as they mature, and we will monitor the playing field as the
industry continues to evolve.
Figure 1: Select digital wallet companies at Money 2020
Company Overview Key Points/Recent Happenings Backers
Lemon Wallet
-Offers mobile wallet called "The Smarter Wallet"
that lets users digitize anything carried in real
wallet (credit cards, healthcare cards, IDs, receipts)
by using smartphone cameras
-Basic wallet service is free; premium services
($4.99-9.99 per month) include budgeting and data
export features
-Opened to third-party developers (first truly open mobile wallet platform
that supports multiple branded cards)
- passed 4mm users in August.
- May 2013 expense reporting tool added.
- allows receipts en ereceipts to be saved/sent to expense software.
Maveron
Lightspeed Venture Partners
Draper Fisher Jervetson
CampVentures
Social Capital Ventures
LevelUp
-QR-code based form of mobile payment (link
credit/debit card to LevelUp app to get QR code)
-Scan LevelUp code at merchants to pay
-Offers discount/loyalty programs by small
merchants (e.g., spend $50 get $5), takes a
percentage of loyalty amounts in lieu of
interchange
-Announced white label offering to integrate LevelUp functionality into
merchants' apps using an SDK (also provides a custom development offering
for merchants)
GoPago
-App that allows for payment from smartphones
-Order items from merchants' virtual storefronts in
GoPago app, pay with credit/debit card (card info
stored in cloud), and pick up order at store (show
receipt)
-Lets consumers skip checkout lines
-Also offers tablet-based payment system
(GoPagoLive) that includes pre-configured 4G
tablet (charges fixed fee of 2.85% for credit card
transactions)
-Available in the SF Bay Area, rolling out "soon" to Dallas and NY
-Acquirer is ChasePaymentech
- now available on iOS and Android
- launch of GoPago Live "solution as a service" - May 2013
- GoPago Live is total commerce soltuoin that intergrates POS online e
Commerce, mPOS, and mobile ordering from smartphones with an open SDK
platform.
JPMorgan
Clinkle
- wallet app. No set design
- Founded in 2011 by Lucas Duplan
- raised 25m in seed funding
- announced september 26, 2013 100k students on college wait lists for mobile
wallet app after only 2 months.
- initially, app designed with SMS based payments.
- plans for release only at select schools to highlight exclusivity.
Accel Partners
Andreessen Horowitz
Intuit
Peter Thiel
Source: Company data, industry publications
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Mobile Payments

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Figure 2: Select mobile banking/wallet solution/platform companies at Money 2020
Company Overview Key Points/Recent Happenings Backers
Personetics
-Offers a predictive virutal assistant solution built
for the banking industry (anticipates customers'
needs and approaches them w/ tailored solutions)
-Predicts acceleration in Siri-like mobile banking app (voice-interactive) usage
in the next 12 months
- 11.5m series b funding secured Jun 13
- Predictive virtual assistant deployed Jan 13 at MC, V, Amex. Service explains
purchasing patterns and anticipates customer financial needs
Carmel Ventures
Sequoia Capital
Lightspeed Ventures
mFoundry
-Provides mobile solutions for FIs and retailers
(only mobile banking provider w/ live nationwide
mobile payments solution)
-Offers SaaS-based mobile banking products
(device support, mobile alerts, account support,
etc)
-Launched Fin X (mobile banking platform that incorporates bankings services
(P2P money transfer, mortgage rates, auto insurance quotes, etc)) in October
2012
'-sold to FIS in Jan 13 for $120million
MasterCard
FIS
Bank of America
Motorola Mobility
PayPal
Intel Capital
Apax Partners
NCR
GRP Partners
Ignition
CorFire
-Mobile tech platform to FIs, MNOs, payment
processors, issues, retailers, and other companies
-Offers mobile wallet (brandable, white-label),
TSM services for mCommerce, and mobile
marketing services (offers, loyalty programs)
-Customers are Google Wallet, Dunkin Donuts, SK Telecom (powers Dunkin's
mobile payment app)
-Partnered with First Data
- Jul 13 - Arcado and CorFire launch partnership for digital voucher soltuoin
"open wallet" which is NFC enabled.
- partner with OLO partner for Mobile Commerce solution to restaurants.
SK C&C USA
*Subsidiary of SK C&C Co
Sequent
-Offers a software and services platform that
allows consumers to download payment cards to
their mobile phones
-Allows all cards and credentials in the secure
element to work in all approved apps in all types
of mobile devices (mobile wallet enablement)
- $12m in series b funding closed in Jul 13
- Sep 13, partner with Trub to provide over air provisions and life cycle
management for EMV compliant cards
Opus Capital
SK Telecom Ventures
TabbedOut
- Offers a consumer mobile app to open restaurant
tabs, monitor tabs, and pay and tip in restaurants
- Integrated with POS provider Micros Corp., and is
in talks with NCR
- Ability to integrate Tabbedout's mobile payment
app into restaurants' mobile apps
-Announced software developers kit (SDK) to integrate mobile payments into
third-party apps
-Announced completion of integration with NCR restauarant POS system in
September 2012
- May 2013 - partnership with Google Wallet, integrate into company's mobile
application
New Enterprise Associates
Paydiant
-Offers cloud-based, white label mobile wallet
solution; sells to banks, retailers, and processors
for branded contactless mobile wallet deployment
-Only mobile payment platform that works w/
existing payment means (PIN debit, credit, sig
debit, prepaid) to make payments in-store, online,
at the table, and to settle bills
-Provides a software developers kit (SDK) that lets
customers embed a mobile wallet and contactless
payment functions into their own mobile apps
-Works with existing smartphones, POS systems,
and payment terminals
-Announced new mobile payments platform with VNTV (Vantiv Mobile
Wallet)
-new $15m round of funding closed Sep 13
- Harris Teeter, US grocery chain enters into agreement - August 2013
- Debit/ATM network PULSE to implement Paydiant - July 2013
- Oct 2013 Paydiant announces it has signed deal with Subway to build its
mobile payments app.
North Bridge Venture Partners
General Catalyst Partners
Stage 1 Ventures
Roam Data
-Mobile commerce platform provider
-Offers a service to process payments through
mobile phones (converts cell phones into POS
terminals; provides an API and optional mag-stripe
card reader)
-Also offers mobile wallet API to let merchants
embed secure payment inside mobile apps/offers
(keeps cardholder info in the cloud)
-Additionally offers a mobile marketing solution
(integrated w/ mobile wallet API) that lets
merchants/advertisers create mobile offers
-Southwestern Advantage selects ROAM to power mobile POS solution - Sep
2013.
- Cynergy Data chooses ROAM to power its Vwalaa mobile pay offering. Sep.
2013. First company to the US market ROAMpay X4, only US acquirer to offer
features of offline processing, configurable inv. management and purchase
recognition.
-
Ingenico
Chase Paymentech
First Data
United Check Services
Palm Desert National Bank
Global Payments
NAB
Sage
Intuit
FIS
Strategic Merchant Solutions
CardFree
- integrated merchant solutions for mobile and
online through POS terminal.
- leverage existing POS terminals to add data
analytics, end to end capabilities, better look at
customer base and behavior.
- Focus is building out mobile commerce
- launched in December 2012. Funding from Jeff Katz
- Payments component allows for creation of digital prepaid cards, enable
mobile payments.
- functions on 90% of existing POS terminals; can be rendered using 2D
barcodes, cloud payments, NFC.
- Tools for loyalty, online recharging of prepaid cards, order ahead services
and data analytics
- partners include Starbucks (Dec 2012)and Sonic drive in (Oct 2013).
- Jeff Katz
Revel Systems
- POS system operates on iPad.
- backend is managed via mobile or web browser.
Includes hardware IE receipt printing, cash drawer
and card swipe capabilities.
- Order features for specific industries IE
restaurant, grocery, food truck shipping, stadium
POS, quick serve
- May 7th 2013 - company adds photo based identity theft security
- Nov 2012 - signs Goodwill Industries and Belkin
- Sep 2013 - Debuts Stadium iPad POS for ASU
- Partners with mobile payments startup SumUp for card reader technology
April 2013
DCM
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Source: Company data, industry publications
Figure 3: Select merchant acquiring/transaction processing companies at Money 2020
Company Overview Key Points/Recent Happenings Backers
Braintree
-Lets online businesses process credit card
payments from their websites/apps (payment
gateway)
-Handles businesses' recurring billing
-Stores credit card info for the online businesses
(keeps businesses out of PCI compliance scope)
-Accepts payments in 130+ currencies
-Pricing: 2.9% + $0.30 per transaction
- Reaches $10b processed annually. 25% originiating outside the US. July 2013.
- Collaborates with Venmo Touch for banking customers. Direct integration
into Venmo wallet
- Launched Braintree Marketplace for owners to pay and manage sellers while
decreasing admin and regulatory burdens. Aug 2013
- Offers advanced fraud protetction. Sep 2013
- Acquired by Paypal in Sep 2013 for $800m
Accel Partners
Nigel Morris
*QED Investors, Co-Founder of Capital One
Corduro
-Combines competitors mobile device capability
with social networks and enterprise-level
functionality (solves compliance and enterprise
issues)
-Provides enterprise-grade payment support for
organizations anywhere in the world (businesses,
nonprofits)
-Allows customers to pay invoices/checkout over
their phones with mobile app (PayMobile Pay and
PayMobile Checkout)
-Uses members' social networks to provide
retailers and organizations with network reach
(people can refer friends to a business over
Facebook/Twitter)
-Processes at significant savings compared to other
processing platforms (PayPal)
- Announced launch of Paymobile. Allows Corduro users to pay a Corduro
retailer wihtout phyically carrying a phone, credit card, check or cash. Use
omni channel platofrm for accepting payment via any internet or mobile
connected device
- As of May 2013, roughly 1 mm users
Google Ventures
WTI
Founders Collective
Heartland Capital
PaySimple
-ACH and credit card merchant account processor
for small businesses
-Offers cloud-based receivables automation
services (sells to ISOs, large FIs, companies that
sell to small businesses)
-Supports AcceptPay for AmEx and Zip for Ink (Chase)
-Partnered with Chase, AmEx (Open), Vantiv, Western Union, and Jack Henry
Stripe
-Developer service that enables businesses to
accept payments online (developers describe it as
the payment service that "doesn't suck")
-Provide software and service to process online
credit and debit card payments (Stripe works w/
the payment processors to verify merchant info)
-Build code, APIs, and documentation for payment
acceptance
-Pays merchant for transactions less fess (funds
typically sent to merchant bank in 7 days)
- Stripe charges fee structure of 2.9% + 0.30 per successful charge. Higher than
other rates, yet company claims total cost to customers may be lower because
stripe has no setup, monthly fees, no minimum charges, no validation fees, no
card storage fees and no charge for failed payments.
- $20m funding from Seqouia in Jan 2013
Peter Theil
Elon Musk
Sequoia Capital
Andreesen Horowitz
SV Hangle
Dwolla
-Provides a online payment system and mobile
payments network (cash option for e-commerce,
bypasses traditional networks and eliminates
transaction costs)--merchants pay a flat $0.25 fee
per transaction
-Merchants enroll in mobile payment service to
allow consumers to pay with smartphones
-Also offers bank account-based payment system
to people (charges a flat fee per transaction
instead of a percentage; credit card payment
systems charge up to 3.5%)
-The Members Group processes Dwolla's transactions
-Has significant interest from Bitcoin (digital currency) users (many Bitcoin
exchanges take place via Dwolla)--Dwolla does not officially endorse Bitcoins
- Aug 2013 company now supports wire transfers
- $16m round of funding from Andreessen Horowitz May 2013
-
Union Square Ventures
Village Ventures
Thrive Capital
Artists and Instigators
Paige Craig (Betterworks)
Merchant Warehouse
-Offers a unified platform for merchants, POS
developers, VARs and agents for transaction
processing and value-add programs.
-LevelUp integrated with Merchant Warehouse's Genius customer
engagement platform in October 2012
-
Parthenon Capital Partners
Xoom
-Online international money transfer service
-Recipients don't need bank account or internet
connection to receive funds; senders can fund
money transfer w/ credit card, debit card, or bank
account
-Offers a mobile website and apps for no
additional fees
-Announced Bank-to-Bank ULTRA service (a higher-tiered level of servcie that
provides confirmed bank deposits in less than an hour) in October 2012
- files amended s1, offers 3.7m shares - Sep 2013
- July 2013 - XOOM can now offer transfer service to all sprint subscribers.
MVNO cusotmers can sign up for XOOM from mobile phones and transfer
money.
-
Sequoia Capital
New Enterprise Associates
SVB Capital
Fidelity Ventures
Slidepay
API app for 3rd party developers allowing for both
card not present and card present transactions.
enables developers to build there own payment to
commerce solutions on top of secure
infrastrcuture Accept through a reader
- card present 2.9% + 30c
- Card not present 2.5% + 10c
Own the merchant account and handle
underwriting and identity verification, which
increases company risks and liabilities.
receives $1.3m seed funding (6/25/12)
-
YC combinator
Source: Company data, industry publications
10 October 2013
Computer Services & IT Consulting
Mobile Payments

Deutsche Bank Securities Inc. Page 9



Figure 4: Select mobile marketing/loyalty program companies at Money 2020
Company Overview Key Points/Recent Happenings Backers
PlaceCast
-Geofencing mobile marketing service (sells to
brands, mobile operators, and payments
companies)
-Runs mobile loyalty programs
-Starbucks listed as a customer; other prominent customers are The North
Face, L'Oreal, Kohl's, Kmart, JetBlue and others
- Sep 2013 - unveils PlaceAd, mobile advertisings first locastion based DSP
- Oct 2012 - laucnhes 'card linked ShopAlerts' leveraging powerful patent,
geofencing technology to deliver perforamnce based mobile marketing.
Voyager Capital
Quatrex Capital
Onset Ventures
Proxama
-NFC mobile commerce company focused on
mobile marketing and mobile payments
-Offers NFC mobile wallets (to issuers, banks,and
MNOs) and NFC marketing services (e.g., vouchers,
loyalty programs, app downloads)
-Announced it will enable NFC on iPhone 4/4S in June 2012
- March 2013 partners with Logic Group to deliver NFC based services to
retailers.
- March 2013 announces NFC smart poster partnership with Signbox
- announced partnership with ISIS to build wallet for Blackberry
Movenbank
-Service that helps consumers spend and save
more intelligently (works with banking and
payments providers, mobile manufacturers,
consumer credit groups, social media partners,
merchants, and others)
-Says it's "working toward a launch "
-No specific info on its products/services yet, but says that it will make service
offers based on achievements associated with spending and saving smarter
Anthemis Group
Raptor Ventures
Kevin Plank
*CEOof Under Armour
Syndicated Singaporean investors
Gyft
- digital gift card platform to web and mobile.
- mobile application
- built in geo targeting in apps top send messages
to shoppers when near stores.
- also allow card swapping option between users.
- gift card market $100b.
- Gyft raises $5m in funding Sep 2013
- supports 300 + retailers
- Already seen $10m in card value uploaded to Gyft platform, over 200,000
cards. Adding one new card every 2 minutes
- karlin ventures
- A-Grade Investments
- Google Venture
- Founder Collective
FastPay
- finance acceleration platorm that helps digital
businesses overcome long receivables cycle by
providing specialized lines of credit
- uses propretietary software to assess credit
profile of business and provide loans from $100k to
several million
- loans accessible in under 48 hours
- Feb 2013 - announces milestone of placement of $100m with digital ad and
media companies
- alternative to VC funding; focus on companies with short term liquidity
issues
-
Cardlytics
- card -linked marketing platform based on
analytics surrounding consumer behavior.
- company ahs unmatched access to ~70% of US
household data across multiple stores, categories
and demographics
- information provided by secure network of 400+
financial institution partners.
- leader in card linked marketing; target offers
- Feb 2013 - company launches transaction linked banked statement ads from
Facebook data
- June 2013 - company announces it has reached 33m active users at 400 banks
- Sep 2013 - announces plans for push notification for location based offers.
- Gold Hill Capital
- Canaan Partners
- Polaris Venture Partners
- Kinetic Ventures
Source: Company data, industry publications
10 October 2013
Computer Services & IT Consulting
Mobile Payments

Page 10 Deutsche Bank Securities Inc.



Figure 5: Select mobile POS companies at Money 2020
Company Overview Key Points/Recent Happenings Backers
Breadcrumb
-Restaurant POS devices for iPads (available to all
hospitality businesses in the US)
-No server required, no PCI audits,
-Costs less upfront and every month, eliminates
hidden training & support cost of legacy POS
systems
-Handles menus, inventory, etc. for restaurants
(essentially handles back-office functions)
-Acquired by Groupon in May 2012
-Integrated with Groupon Payments (1.8% per swipe + $0.15 per txn for V, MA,
and DFS; 2.3-3.5% and $0.00-0.15 per txn for AXP)
- 2013 - launches Breadcrumb PRO - $99/month
ShopKeep
-POS company
-Sells iPad-based POS devices ($49/month) to
small businesses
-Tracks sales and inventory, generates reports
-Accepts PayPal (2.7% rate)
- partners with LevelUp Feb 2013
- 2013 ETA tech innovator of year
Contour Venture Partners
Tribeca Venture Partners
TTV Capital
Infinite Peripherals
-mPOS company
-Offers mobile barcode scanners, magnetic card
readers, portable printers, and signature capture
pads for use with iPod Touches & iPads
-Supplies to gaming, medical, hospitality, ATM,
retail, amusement, security, time and attendance,
and industrial measurement markets
-Apple, REI, Nordstrom are key clients
- introduces linea pro mobile POS device in Jun 2013.
- linea adds 1d or 2d barcode scanner and magnetic stripe reader
- Barneys NY adds Infinea Tab
iZettle
-mPOS company with social payment aspect
(headquartered in Stockholm)
-Offers chip-card reader that plugs into
iPhones/iPads and free iPhone/iPad app
-Offered in Sweden, Norway, Denmark, Finland,
and the UK (will roll out to more countries in
Europe and other continents)--handles
international markets
-Launched Android sevice compatible with Samsung Galaxy SII, SIII, and Galaxy
Note (August 2012)
- Aug 2013 - partners with Banco Santander in Brazil
- Aug 2013 -iZettle chip and pin and signature mobile payments approved by V
- July 2013 firs mPOS in europe to offer JCB card acceptance
- June 2013 partners with banco santander in Mexico
Greylock Partners
Creandum
Northzone
MasterCard
PayLeven
-mPOS company
-iPhone/iPad app, dongle that plugs into
iPhones/iPads
-Available in Brazil, Germany, Italy, The
Netherlands, Poland, and the UK
-Will offer mobile chip-and-PIN sleeve/sled (pre-registration for readers open
now)
-- May 2013 - enters Belgian market
- May 2013 - Payleven and BIXOLON offer prinster system bundle
Holtzbrinck Ventures
New Enterprise Associates
RuNet
Anywhere Commerce
-Offers line-busting solutions to merchants
(readers for smartphones), chip-and-PIN solutions,
and a solution that converts a PC w/ a mag-stripe
reader to a PIN-entry POS terminal
- Aug 2013 - signs agreement with Spindle to procide secure and reliable
mobile POS tech.
- April 2013 - teams with mobilepaid
- Feb 2013 - Secures EMV l2 certification
- Feb 2013 - signs deal with Heartland mobile POS deal
Lightspeed
-Mac-centered POS company focused on the retail
vertical
-Offers Mac-based POS hardware and software at
brick-and-mortar stores, trade shows, pop-up
locations, conferences, etc. (eliminating any
discontinuity of service when a shop moves from
one type of location to another (or to online)).
-Provides dongles for iPads/iPhones/iPod Touches
so that the devices integrate seamlessly with the a
Mac-based cash stand running Lightspeed software
-Announced partnership with Braintree to offer a flexible monthly payment
option to retailers (helps retailers manage cost structure)
- July 2013 - laucnhes light speed cloud, web based POS app for iPad
- July 2013 - announces new web store platformw/ customizable template
engine
- April 2013 - storemaster launched. mobile command center for retailers
- April 2013 - partners with Moneris Solutions
Accel Partners
Leapset
Commerce platform connects small merchats to
customers with mobile and online POS
-Basic services cost $3 per day for merchants (
primarily restaurants, looking to expand) providing
services such as order taking and processing as
well as data automation benefits.
Premium services (OrderPad) allows servers to
send orders to kitchens electronically.
- collective bargaining service on behalf of
merchants it represents to try to drive down card
charges.
- based in Silicon Valley, development &
engineering team in Sri Lanka.
Partners with Sysco food distribution (Oct 2012)
- Partners with Paypal in December 2012
- Seed Funding 6/2011 - $1m
- Series A 7/2012 - $6m
- Series B 6/2013 - $25m
- Commerce Ventures
Clover
POS terminal purchased by First Data
- offline mode allows transactions when internet
down
- open APP marketplace allows integration of
advanced POS/business solutions
- merchant analytics
- Card data stored securely in cloud with
tokenization service
- 24x7x354 customer support.
- Clover originally purchased by FirstData in 2012
-October 2013 announced release of Clover Station at Money2020
- Partner with Bank of America Merchant Services to offer to small business
banking clients
- introduce Patent pending swivel arm allowing for both merchant and
customer facing positions.
- Purchased by First Data
- Sutter Hill Ventures
- Lightspeed Venture Partners
Source: Company data, industry publications

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Figure 6: Visa Income Statement
1Q: Dec 2Q: Mar 3Q: Jun 4Q: Sept 2012 1Q: Dec 2Q: Mar 3Q: Jun 4QE: Sept 2013E 1QE: Dec 2QE: Mar 3QE: Jun 4QE: Sept 2014E
Service fees 1151.0 1241.0 1216.0 1264.0 4872.0 1300.0 1369.0 1298.0 1378.9 5345.9 1418.2 1520.5 1459.3 1550.8 5948.8
Data processing fees 951.0 922.0 1040.0 1062.0 3975.0 1115.0 1150.0 1191.0 1209.6 4665.6 1256.6 1239.6 1345.5 1355.1 5196.8
International transaction fees 748.0 733.0 748.0 796.0 3025.0 805.0 831.0 854.0 885.9 3375.9 897.6 928.2 954.8 992.3 3772.8
Other revenues 178.0 179.0 175.0 172.0 704.0 179.0 175.0 179.0 177.2 710.2 184.4 180.3 184.4 182.5 731.5
Gross operations fees 3028.0 3075.0 3179.0 3294.0 12576.0 3399.0 3525.0 3522.0 3651.6 14097.6 3756.8 3868.6 3943.9 4080.7 15650.0
Volume and support incentives (481.0) (497.0) (614.0) (563.0) (2,155.0) (553.0) (567.0) (521.0) (639.0) (2,280.0) (616.1) (607.4) (627.1) (673.3) (2,523.9)
Operating revenues 2,547.0 $ 2,578.0 $ 2,565.0 $ 2,731.0 $ 10,421.0 $ 2,846.0 $ 2,958.0 $ 3,001.0 $ 3,012.6 $ 11,817.6 $ 3,140.7 $ 3,261.2 $ 3,316.8 $ 3,407.3 $ 13,126.1 $
Personnel 389.0 431.0 435.0 471.0 1,726.0 454.0 486.0 493.0 497.1 1,930.1 508.8 522.2 530.4 562.2 2,123.5
Network, EDP, and communications 98.0 103.0 102.0 111.0 414.0 110.0 119.0 117.0 129.5 475.5 111.6 120.7 126.0 132.9 491.2
Advertising, marketing, and promotion 190.0 170.0 242.0 271.0 873.0 193.0 195.0 252.0 310.3 950.3 248.1 264.2 272.0 310.1 1,094.3
Professional and consulting fees 70.0 82.0 99.0 134.0 385.0 88.0 91.0 103.0 106.9 388.9 125.6 120.7 116.1 121.0 483.3
Administrative and other 102.0 106.0 112.0 131.0 451.0 106.0 108.0 108.0 132.6 454.6 113.1 120.7 122.7 139.7 496.2
Litigation provision - - 2.0 2.0 3.0 1.0 (1.0) - 3.0 - - - - -
EBITDA 1,698.0 1,686.0 1,575.0 1,611.0 6,570.0 1,892.0 1,958.0 1,929.0 1,836.2 7,615.2 2,033.5 2,112.9 2,149.6 2,141.5 8,437.6
Depreciation and amortization 80.0 80.0 84.0 89.0 333.0 92.0 98.0 101.0 101.0 392.0 101.5 101.5 101.5 101.5 406.0
EBIT 1,618.0 1,606.0 1,491.0 1,522.0 6,237.0 1,800.0 1,860.0 1,828.0 1,735.2 7,223.2 1,932.0 2,011.4 2,048.1 2,040.0 8,031.6
Other income (expense), net (1.0) 1.0 (1.0) (39.0) (40.0) 1.0 (3.0) 5.0 (5.0) (2.0) 1.5 1.5 1.5 1.5 6.0
Income before income taxes 1,617.0 1,609.0 1,491.0 1,545.0 6,262.0 1,801.0 1,857.0 1,833.0 1,730.2 7,221.2 1,933.5 2,012.9 2,049.6 2,041.5 8,037.6
Income tax expense 590.0 524.5 436.0 510.5 2,061.0 508.0 587.0 608.0 536.3 2,239.3 599.4 624.0 635.4 632.9 2,491.6
Minority interest - - - - - - - - - - - - - -
Net income 1,027.0 $ 1,084.5 $ 1,055.0 $ 1,034.5 $ 4,201.0 $ 1,293.0 $ 1,270.0 $ 1,225.0 $ 1,193.8 $ 4,981.8 $ 1,334.1 $ 1,388.9 $ 1,414.2 $ 1,408.6 $ 5,545.9 $
Diluted EPS from continuing operations 1.49 $ 1.60 $ 1.56 $ 1.54 $ 6.19 $ 1.93 $ 1.92 $ 1.88 $ 1.85 $ 7.58 $ 2.09 $ 2.20 $ 2.27 $ 2.28 $ 8.84 $
Nonrecurring charges, net of taxes - - - - - - - - - - - - - - -
Diluted EPS as reported 1.49 $ 1.60 $ 1.56 $ 1.54 $ 6.19 $ 1.93 $ 1.92 $ 1.88 $ 1.85 $ 7.58 $ 2.09 $ 2.20 $ 2.27 $ 2.28 $ 8.84 $
Cash dividends per share 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.88 $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 1.32 $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 1.32 $
Diluted shares outstanding 690 676 675 672 678 669 660 651 646 657 638 631 624 617 628
1Q: Dec 2Q: Mar 3Q: Jun 4Q: Sept 2012 1Q: Dec 2Q: Mar 3Q: Jun 4QE: Sept 2013E 1QE: Dec 2QE: Mar 3QE: Jun 4QE: Sept 2014E
%of Revenues
Personnel 15.3% 16.7% 17.0% 17.2% 16.6% 16.0% 16.4% 16.4% 16.5% 16.3% 16.2% 16.0% 16.0% 16.5% 16.2%
Network, EDP, and communications 3.8% 4.0% 4.0% 4.1% 4.0% 3.9% 4.0% 3.9% 4.3% 4.0% 3.6% 3.7% 3.8% 3.9% 3.7%
Advertising, marketing and promotion 7.5% 6.6% 9.4% 9.9% 8.4% 6.8% 6.6% 8.4% 10.3% 8.0% 7.9% 8.1% 8.2% 9.1% 8.3%
Professional and consulting fees 2.7% 3.2% 3.9% 4.9% 3.7% 3.1% 3.1% 3.4% 3.6% 3.3% 4.0% 3.7% 3.5% 3.6% 3.7%
Administrative and other 4.0% 4.1% 4.4% 4.8% 4.3% 3.7% 3.7% 3.6% 4.4% 3.8% 3.6% 3.7% 3.7% 4.1% 3.8%
EBITDA Margins 66.7% 65.4% 61.4% 59.0% 63.0% 66.5% 66.2% 64.3% 61.0% 64.4% 64.7% 64.8% 64.8% 62.9% 64.3%
Operating Margins 63.5% 62.3% 58.1% 55.7% 59.9% 63.2% 62.9% 60.9% 57.6% 61.1% 61.5% 61.7% 61.7% 59.9% 61.2%
Income taxes (as % of pretax) 36.5% 32.6% 29.2% 33.0% 32.9% 28.2% 31.6% 33.2% 31.0% 31.0% 31.0% 31.0% 31.0% 31.0% 31.0%
Net income 40.3% 42.1% 41.1% 37.9% 40.3% 45.4% 42.9% 40.8% 39.6% 42.2% 42.5% 42.6% 42.6% 41.3% 42.3%
%Growth 1Q: Dec 2QE: Mar 3Q: Jun 4Q: Sept 2012 1Q: Dec 1Q: Dec 3Q: Jun 4QE: Sept 2013E 1QE: Dec 2QE: Mar 3QE: Jun 4QE: Sept 2014E
Service fees 14.2% 13.5% 15.3% 14.4% 14.3% 12.9% 10.3% 6.7% 9.1% 9.7% 9.1% 11.1% 12.4% 12.5% 11.3%
Data processing fees 12.7% 12.0% 17.4% 14.8% 14.3% 17.2% 24.7% 14.5% 13.9% 17.4% 12.7% 7.8% 13.0% 12.0% 11.4%
International transaction fees 18.7% 17.5% 13.0% 5.0% 13.1% 7.6% 13.4% 14.2% 11.3% 11.6% 11.5% 11.7% 11.8% 12.0% 11.8%
Other revenues 10.6% 14.7% 4.8% 0.6% 7.5% 0.6% (2.2%) 2.3% 3.0% 0.9% 3.0% 3.0% 3.0% 3.0% 3.0%
Gross operations fees 14.6% 14.1% 14.8% 11.3% 13.6% 12.3% 14.6% 10.8% 10.9% 12.1% 10.5% 9.7% 12.0% 11.8% 11.0%
Volume and support incentives 18.8% 10.2% 37.1% (2.3%) 14.6% 15.0% 14.1% (15.1%) 13.5% 5.8% 11.4% 7.1% 20.4% 5.4% 10.7%
Revenues 13.8% 14.8% 10.5% 14.6% 13.4% 11.7% 14.7% 17.0% 10.3% 13.4% 10.4% 10.3% 10.5% 13.1% 11.1%
Expenses
Personnel 9.0% 22.8% 19.8% 21.4% 18.3% 16.7% 12.8% 13.3% 5.5% 11.8% 12.1% 7.4% 7.6% 13.1% 10.0%
Network, EDP and communications 22.5% 28.8% 12.1% 4.7% 16.0% 12.2% 15.5% 14.7% 16.7% 14.9% 1.4% 1.4% 7.7% 2.6% 3.3%
Advertising, marketing and promotion (3.6%) (7.1%) (3.6%) 13.4% 0.3% 1.6% 14.7% 4.1% 14.5% 8.9% 28.6% 35.5% 7.9% (0.1%) 15.2%
Professional and consulting fees 14.8% 6.5% 17.9% 16.5% 14.2% 25.7% 11.0% 4.0% (20.2%) 1.0% 42.8% 32.6% 12.7% 13.1% 24.3%
Administrative and other (7.3%) 11.6% (1.8%) 37.9% 8.9% 3.9% 1.9% (3.6%) 1.2% 0.8% 6.7% 11.7% 13.6% 5.4% 9.2%
Income
EBITDA 18.5% 16.0% 11.0% 12.0% 14.4% 11.4% 16.1% 22.5% 14.0% 15.9% 7.5% 7.9% 11.4% 16.6% 10.8%
EBIT 18.4% 16.1% 10.9% 11.7% 14.3% 11.2% 15.8% 22.6% 14.0% 15.8% 7.3% 8.1% 12.0% 17.6% 11.2%
Net income 16.2% 23.1% 19.2% 17.8% 19.1% 25.9% 17.1% 16.1% 15.4% 18.6% 3.2% 9.4% 15.4% 18.0% 11.3%
Diluted EPS 21.1% 30.0% 24.3% 21.3% 24.2% 29.9% 19.9% 20.3% 20.0% 22.5% 8.2% 14.4% 20.6% 23.5% 16.5%
2012
2014
2014
2012 2013
2013

Source: Company data, Deutsche Bank estimates

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Figure 7: MasterCard Income Statement
1QA 2QA 3QA 4QA 2012A 1QA 2QA 3QE 4QE 2013E 1QE 2QE 3QE 4QE 2014E
Domestic assessments 840.0 $ 893.0 $ 908.0 $ 945.0 $ 3,565.0 $ 901.0 $ 940.0 $ 1,003.2 $ 1,052.4 $ 3,896.6 $ 1,021.4 $ 1,053.0 $ 1,117.9 $ 1,170.8 $ 4,363.2 $
Cross-border volume fees 531.0 $ 566.0 $ 630.0 $ 616.0 $ 2,343.0 $ 607.0 $ 677.0 $ 735.2 $ 710.2 $ 2,729.5 $ 696.8 $ 773.8 $ 837.4 $ 807.6 $ 3,115.6 $
Transaction processing fees 714.0 $ 753.0 $ 763.0 $ 787.0 $ 3,017.0 $ 775.0 $ 818.0 $ 849.4 $ 896.0 $ 3,338.4 $ 867.3 $ 927.4 $ 959.0 $ 1,008.0 $ 3,761.6 $
Other revenues 262.0 $ 269.0 $ 294.0 $ 329.0 $ 1,154.0 $ 280.0 $ 315.0 $ 318.7 $ 365.8 $ 1,279.5 $ 301.3 $ 339.9 $ 344.5 $ 400.2 $ 1,385.9 $
Gross revenues 2,347.0 $ 2,460.0 $ 2,595.0 $ 2,677.0 $ 10,079.0 $ 2,563.0 $ 2,750.0 $ 2,906.5 $ 3,024.5 $ 11,244.0 $ 2,886.8 $ 3,094.2 $ 3,258.8 $ 3,386.6 $ 12,626.3 $
Rebates and incentives (589.0) (661.0) (677.0) (782.0) (2,688.0) (657.0) (654.0) (776.0) (892.2) (2,979.3) (730.4) (816.9) (844.0) (985.5) (3,376.7)
Revenues 1,758.0 $ 1,820.0 $ 1,918.0 $ 1,895.0 $ 7,391.0 $ 1,906.0 $ 2,096.0 $ 2,130.5 $ 2,132.3 $ 8,264.7 $ 2,156.4 $ 2,277.3 $ 2,414.8 $ 2,401.1 $ 9,249.6 $
General and administrative expenses 579.0 591.0 620.0 639.0 2,429.0 608.0 621.0 677.5 707.9 2,614.4 677.1 703.5 741.3 794.8 2,916.7
Advertising and market development 125.0 179.0 176.0 295.0 775.0 129.0 186.0 183.2 313.4 811.7 153.1 207.2 212.5 345.8 918.6
Merchant lawsuit / legal settlements / etc - - - - - - - - - - - - - - -
EBITDA 1,054.0 1,050.0 1,122.0 961.0 4,187.0 1,169.0 1,289.0 1,269.8 1,110.9 4,838.7 1,326.2 1,366.6 1,460.9 1,260.6 5,414.3
Depreciation & Amortization 54.0 56.0 58.0 62.0 230.0 62.0 61.0 64.0 68.0 255.0 70.0 73.0 75.0 65.0 283.0
EBIT 1,000.0 994.0 1,064.0 899.0 3,957.0 1,107.0 1,228.0 1,205.8 1,042.9 4,583.7 1,256.2 1,293.6 1,385.9 1,195.6 5,131.3
Investment income, net 9.0 9.0 9.0 10.0 37.0 8.0 11.0 11.5 12.0 42.4 13.5 14.0 14.5 15.0 57.0
Interest expense (6.0) (3.0) (4.0) (7.0) (20.0) (5.0) (5.0) (5.0) (5.0) (20.0) (4.0) (4.0) (4.0) (4.0) (16.0)
Minority interest in losses (earnings) of subs - - - - - - - - - - - - - -
Other income (expense), net (4.0) (7.0) (3.0) (8.0) (22.0) (8.0) (1.0) (3.0) (3.0) (15.0) (3.0) (3.0) (3.0) (3.0) (12.0)
Income before income taxes 999.0 993.0 1,066.0 894.0 3,952.0 1,102.0 1,233.0 1,209.2 1,046.9 4,591.1 1,262.7 1,300.6 1,393.4 1,203.6 5,160.3
Income tax expense 318.0 280.0 294.0 289.0 1,181.0 336.0 385.0 379.7 328.7 1,429.4 395.2 407.1 437.5 377.9 1,617.8
Net income 681.0 $ 713.0 $ 772.0 $ 605.0 $ 2,771.0 $ 766.0 $ 848.0 $ 829.5 $ 718.1 $ 3,161.7 $ 867.5 $ 893.5 $ 955.9 $ 825.6 $ 3,542.5 $
Diluted EPS from continuing operations 5.36 $ 5.65 $ 6.17 $ 4.86 $ 22.04 $ 6.23 $ 6.96 $ 6.88 $ 6.02 $ 26.09 $ 7.34 $ 7.62 $ 8.21 $ 7.15 $ 30.33 $
Nonrecurring charges, net of taxes - - - - - - - - - - - - - - -
Diluted EPS as reported 5.36 $ 5.65 $ 6.17 $ 4.86 $ 22.04 $ 6.23 $ 6.96 $ 6.88 $ 6.02 $ 26.09 $ 7.34 $ 7.62 $ 8.21 $ 7.15 $ 30.33 $
Dividend 0.30 $ 0.30 $ 0.30 $ 0.30 $ 1.20 $ 0.30 $ 0.30 $ 0.30 $ 0.30 $ 1.20 $ 0.30 $ 0.30 $ 0.30 $ 0.30 $ 1.20 $
Diluted shares 127.0 126.0 125.0 125.0 125.8 123.0 122.0 120.5 119.2 121.2 118.2 117.2 116.4 115.4 116.8
1QA 2QA 3QA 4QA 2012 1Q 2Q 3Q 4Q 2013E 1Q 2Q 3Q 4Q 2014E
% of Revenues
G&A 32.9% 32.5% 32.3% 33.7% 32.9% 31.9% 29.6% 31.8% 33.2% 31.6% 31.4% 30.9% 30.7% 33.1% 31.5%
A&M 7.1% 9.8% 9.2% 15.6% 10.5% 6.8% 8.9% 8.6% 14.7% 9.8% 7.1% 9.1% 8.8% 14.4% 9.9%
EBITDA 60.0% 57.7% 58.5% 50.7% 56.6% 61.3% 61.5% 59.6% 52.1% 58.5% 61.5% 60.0% 60.5% 52.5% 58.5%
Operating Margin 56.9% 54.6% 55.5% 47.4% 53.5% 58.1% 58.6% 56.6% 48.9% 55.5% 58.3% 56.8% 57.4% 49.8% 55.5%
Income taxes (as % of pretax) 31.8% 28.2% 27.6% 32.3% 29.9% 30.5% 31.2% 31% 31% 31% 31% 31% 31% 31% 31%
Net income 38.7% 39.2% 40.3% 31.9% 37.5% 40.2% 40.5% 38.9% 33.7% 38.3% 40.2% 39.2% 39.6% 34.4% 38.3%
1QA 2QA 3QA 4QA 2012 1Q 2QA 3Q 4Q 2013E 1Q 2Q 3Q 4Q 2014E
% Growth
Domestic assessments 16.2% 7.8% 7.7% 8.5% 9.8% 7.3% 7.8% 10.5% 11.4% 9.3% 13.4% 12.0% 11.4% 11.3% 12.0%
Cross-border volume fees 14.9% 10.8% 8.4% 14.1% 11.9% 14.3% 19.6% 16.7% 15.3% 16.5% 14.8% 14.3% 13.9% 13.7% 14.1%
Transaction processing fees 21.0% 19.5% 10.1% 15.4% 16.3% 8.5% 8.6% 11.3% 13.8% 10.7% 11.9% 13.4% 12.9% 12.5% 12.7%
Other revenues 29.1% 7.2% 10.9% 17.1% 15.4% 6.9% 17.1% 8.4% 11.2% 10.9% 7.6% 7.9% 8.1% 9.4% 8.3%
Gross revenues 18.7% 11.8% 8.9% 12.8% 12.8% 9.2% 11.8% 12.0% 13.0% 11.6% 12.6% 12.5% 12.1% 12.0% 12.3%
Rebates and incentives 23.5% 19.9% 20.0% 21.1% 21.0% 11.5% 2.2% 14.6% 12.1% 10.8% 11.2% 24.9% 8.8% 10.5% 13.3%
Revenues 17.1% 9.2% 5.5% 9.7% 10.1% 8.4% 15.2% 11.1% 12.5% 11.8% 13.1% 8.6% 13.3% 12.6% 11.9%
Expenses
G&A 17.2% 9.4% 9.7% 7.0% 10.6% 5.0% 5.1% 9.3% 10.8% 7.6% 11.4% 13.3% 9.4% 12.3% 11.6%
A&M (3.1%) (7.3%) (12.0%) (7.5%) (7.8%) 3.2% 3.9% 4.1% 6.3% 4.7% 18.7% 11.4% 16.0% 10.3% 13.2%
Operating expenses 14.0% 5.6% 4.7% 2.9% 6.2% 5.4% 5.1% 8.3% 9.4% 7.2% 12.7% 13.3% 11.3% 10.7% 11.9%
Net Income
EBITDA 20.0% 12.4% 6.6% 18.3% 13.9% 10.9% 22.8% 13.2% 15.6% 15.6% 13.4% 6.0% 15.1% 13.5% 11.9%
EBIT 19.6% 12.3% 6.2% 18.3% 13.7% 10.7% 23.5% 13.3% 16.0% 15.8% 13.5% 5.3% 14.9% 14.6% 11.9%
Net income 21.2% 17.3% 7.8% 17.7% 15.7% 12.5% 18.9% 7.5% 18.7% 14.1% 13.2% 5.4% 15.2% 15.0% 12.0%
EPS 25.0% 18.7% 9.6% 20.6% 17.8% 16.1% 23.2% 11.6% 24.0% 18.4% 17.8% 9.5% 19.3% 18.7% 16.2%
2012 2013 2014
Source: Company data, Deutsche Bank estimates

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Figure 8: Vantiv Income Statemnet
1Q 2Q 3Q 4Q FY12 1Q 2Q 3QE 4QE FY13E 1QE 2QE 3QE 4QE FY14E
Merchant 157.5 176.9 177.0 188 $ 699.8 191.6 210.8 213.0 226.2 841.6 215.1 238.1 241.3 256.9 951.5
Financial Institutions 75.1 83.4 81.5 83 $ 322.8 81.3 86.1 85.3 89.1 341.9 87.1 92.2 91.2 95.3 365.8
Revenues 232.6 $ 260.4 $ 258.5 $ 271.2 $ 1,022.6 $ 272.9 $ 296.9 $ 298.4 $ 315.3 $ 1,183.5 $ 302.2 $ 330.3 $ 332.5 $ 352.3 $ 1,317.4 $
Sales and Marketing Expense 72.8 70.5 69.3 68.0 280.6 76.0 76.4 76.0 78.2 306.6 84.5 85.5 84.7 87.8 342.5
Operating Expense 38.6 39.1 39.8 38.4 155.8 48.5 47.3 44.9 45.8 186.6 51.4 51.7 48.5 52.1 203.8
G&A expense 18.3 19.7 17.5 20.8 76.3 23.1 21.8 20.0 24.0 88.9 24.8 23.8 22.9 25.0 96.5
Stand-Alone Costs - - - - - - - - - - - - - - -
Adj. EBITDA 102.9 131.0 131.9 144.0 509.8 125.2 151.3 157.6 167.2 601.4 141.5 169.3 176.3 187.3 674.5
Depreciation 9.6 10.4 11.0 12.1 43.1 12.8 14.1 15.5 16.7 59.1 16.8 16.5 16.2 15.9 65.4
Adj. Operating Income 93.3 120.7 120.8 131.9 466.7 112.4 137.2 142.1 150.5 542.3 124.7 152.8 160.1 171.4 609.1
Interest expense (24.5) (10.2) (10.1) (9.9) (54.6) (9.7) (9.9) (11.4) (11.5) (42.5) (11.3) (11.1) (11.0) (10.8) (44.2)
Pretax income 68.9 110.5 110.8 122.0 412.2 102.7 127.3 130.7 139.0 499.8 113.4 141.7 149.1 160.6 564.9
Income taxes (benefit) 26.5 42.5 42.6 47.0 158.7 39.5 49.0 50.3 53.5 192.4 43.7 54.6 57.4 61.8 217.5
Income taxes adjustments - - - (6.5) (6.5) (4.2) (4.4) (4.0) (4.0) (16.6) (4.0) (4.0) (4.0) (4.0) (16.0)
Fully Distributed Cash Net Income 42.4 $ 68.0 $ 68.1 $ 81.6 $ 260.0 $ 67.4 $ 82.7 $ 84.4 $ 89.5 $ 324.0 $ 73.8 $ 91.2 $ 95.7 $ 102.8 $ 363.4 $
Adjusted Diluted EPS 0.20 $ 0.32 $ 0.32 $ 0.38 $ 1.22 $ 0.31 $ 0.40 $ 0.42 $ 0.44 $ 1.57 $ 0.36 $ 0.45 $ 0.47 $ 0.50 $ 1.78 $
Diluted shares outstanding 212.3 214.0 215.0 213.7 213.8 214.6 207.9 202.1 203.2 206.9 203.7 204.2 205.2 205.7 204.7
% of Revenues
Merchant 67.7% 68.0% 68.5% 69.5% 68.4% 70.2% 71.0% 71.4% 71.7% 71.1% 71.2% 72.1% 72.6% 72.9% 72.2%
Financial Institutions 32.3% 32.0% 31.5% 30.5% 31.6% 29.8% 29.0% 28.6% 28.3% 28.9% 28.8% 27.9% 27.4% 27.1% 27.8%
Adjusted GAAP (% of Revs)
S&M 31.3% 27.1% 26.8% 25.1% 27.4% 27.8% 25.7% 25.5% 24.8% 25.9% 28.0% 25.9% 25.5% 24.9% 26.0%
Operating Expense 16.6% 15.0% 15.4% 14.2% 15.2% 17.8% 15.9% 15.0% 14.5% 15.8% 17.0% 15.7% 14.6% 14.8% 15.5%
G&A 7.9% 7.6% 6.8% 7.7% 7.5% 8.5% 7.3% 6.7% 7.6% 7.5% 8.2% 7.2% 6.9% 7.1% 7.3%
EBITDA 44.3% 50.3% 51.0% 53.1% 49.9% 45.9% 51.0% 52.8% 53.1% 50.8% 46.8% 51.3% 53.0% 53.2% 51.2%
Depreciation 4.1% 4.0% 4.3% 4.5% 4.2% 4.7% 4.7% 5.2% 5.3% 5.0% 5.6% 5.0% 4.9% 4.5% 5.0%
Operating Income 40.1% 46.3% 46.7% 48.6% 45.6% 41.2% 46.2% 47.6% 47.8% 45.8% 41.3% 46.3% 48.2% 48.7% 46.2%
Interest expense 10.5% 3.9% 3.9% 3.6% 5.3% 3.6% 3.3% 3.8% 3.6% 3.6% 3.7% 3.4% 3.3% 3.1% 3.4%
Pretax income 29.6% 42.4% 42.8% 45.0% 40.3% 37.6% 42.9% 43.8% 44.1% 42.2% 37.5% 42.9% 44.9% 45.6% 42.9%
Corporate Income Tax Rate 38.5% 38.5% 38.5% 38.5% 38.5% 38.5% 38.5% 38.5% 38.5% 38.5% 38.5% 38.5% 38.5% 38.5% 38.5%
Adjusted Tax Rate 38.5% 38.5% 38.5% 33.2% 36.9% 34.4% 35.1% 35.4% 35.6% 35.2% 35.0% 35.7% 35.8% 36.0% 35.7%
Net income 18.2% 26.1% 26.4% 30.1% 25.4% 24.7% 27.9% 28.3% 28.4% 27.4% 24.4% 27.6% 28.8% 29.2% 27.6%
% Growth
Revenues
Merchant 36.0% 26.2% 25.6% 12.5% 24.0% 21.7% 19.1% 20.3% 20.1% 20.3% 12.3% 13.0% 13.3% 13.6% 13.1%
Financial Institutions 2.2% 8.8% 7.3% 10.1% 7.1% 8.2% 3.2% 4.8% 7.6% 5.9% 7.2% 7.1% 6.8% 7.0% 7.0%
Revenues 22.9% 20.0% 19.2% 11.7% 18.1% 17.3% 14.0% 15.4% 16.3% 15.7% 10.8% 11.3% 11.4% 11.7% 11.3%
% Growth (Expenses)
S&M 29.5% 18.3% 23.3% 6.1% 18.9% 4.4% 8.4% 9.6% 14.9% 9.3% 11.2% 11.9% 11.5% 12.3% 11.7%
Operating Expense 22.4% 24.0% 15.4% 14.2% 21.5% 25.9% 21.1% 12.6% 14.5% 15.8% 6.0% 9.2% 8.1% 14.8% 15.5%
G&A 30.9% 21.0% 6.8% 7.7% 22.1% 26.3% 10.6% 14.2% 7.6% 7.5% 7.1% 9.0% 14.8% 7.1% 7.3%
% Growth (Adjusted Earnings)
EBITDA 17.6% 19.7% 18.4% 10.4% 16.1% 21.7% 15.5% 19.5% 16.1% 18.0% 13.0% 11.9% 11.9% 12.0% 12.2%
Operating Income 17.5% 19.0% 17.0% 9.1% 15.2% 20.4% 13.7% 17.6% 14.1% 16.2% 11.0% 11.4% 12.7% 13.8% 12.3%
FD Net income 30.5% 47.7% 44.4% 39.5% 41.2% 59.1% 21.7% 23.8% 9.7% 24.6% 9.4% 10.2% 13.5% 14.8% 12.2%
EPS 30.4% 46.5% 42.5% 38.5% 40.2% 57.4% 25.3% 31.8% 15.4% 28.7% 15.3% 12.2% 11.8% 13.4% 13.4%
Source: Company data, Deutsche Bank estimates

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Figure 9: VeriFone Income Statement
1Q12A 2Q12A 3Q12A 4Q12A 1Q13A 2Q13A 3Q13A 4Q13E 1Q14E 2Q14E 3Q14E 4Q14E
Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14
Geographic Revenue
US and Canada 120.0 129.2 138.4 145.3 532.9 132.7 122.1 115.8 122.4 492.9 142.7 131.6 127.6 134.8 536.7
Europe 159.0 205.1 203.4 204.0 771.5 172.9 172.7 179.0 185.4 710.0 172.1 175.2 193.0 204.7 745.0
Latin America 100.3 96.2 94.4 80.0 370.8 73.0 85.3 69.9 62.0 290.2 69.2 85.3 75.1 67.8 297.5
Asia 45.9 48.9 57.0 59.3 211.1 51.0 49.7 52.8 55.0 208.5 50.9 51.3 57.4 60.2 219.8
Total Geographic Revenue - Adjusted 425.2 479.4 493.2 488.6 $1,886.3 429.7 429.7 417.5 424.8 $1,701.7 434.9 443.4 453.2 467.5 $1,799.1
Total Cost of Revenue - Adjusted 242.7 265.3 269.2 272.5 $1,049.7 242.7 248.3 247.2 252.3 $990.4 252.5 256.6 260.9 265.7 $1,035.7
Gross Profit - Adjusted 182.5 214.0 224.0 216.1 $836.6 187.0 181.5 170.3 172.5 $711.3 182.5 186.8 192.3 201.8 $763.4
Research & development - Adjusted 32.0 35.6 36.1 35.5 139.1 36.6 39.8 43.9 43.6 163.8 43.1 41.8 40.6 41.0 166.5
Sales & marketing - Adjusted 34.9 41.5 40.3 41.7 158.4 41.1 42.2 45.1 48.3 176.6 46.3 44.3 43.3 45.4 179.3
General & administrative - Adjusted 28.5 34.8 35.4 27.9 126.5 31.0 33.1 37.7 33.2 134.9 36.1 34.9 34.5 32.0 137.5
Amortization of purchased intangible assets 0.0 0.0 23.2 23.2 46.4 24.7 23.1 23.9 24.0 95.7 26.0 26.0 26.0 26.0 104.0
Operating Expenses - GAAP 134.7 156.5 151.4 148.1 590.7 150.2 223.9 157.7 153.2 685.0 160.0 165.6 176.1 167.3 669.0
Operating Expenses - Adjusted 95.3 111.9 111.7 105.1 $424.0 108.6 115.0 126.7 125.0 $475.4 125.5 121.1 118.4 118.4 $483.4
Operating Income - Adjusted 87.2 102.2 112.3 110.9 $412.6 78.4 66.4 43.6 47.5 $235.9 57.0 65.7 73.9 83.4 $280.0
Interest expense - Adjusted (8.0) (14.1) (13.8) (12.7) (48.5) (12.4) (11.7) (11.5) (11.4) (47.0) (11.5) (11.6) (11.7) (11.7) (46.5)
Interest income 1.5 1.1 1.2 1.2 $5.2 1.2 0.8 0.0 0.0 $2.0 0.0 1.3 1.3 1.3 $3.9
Other income (expense), net - Adjusted (2.0) -2.3 -2.3 -0.9 (7.5) (1.4) -0.6 -0.9 (0.9) (3.8) (0.9) (0.9) (0.9) (0.9) (3.6)
Pre-Tax Income - Adjusted 78.7 86.9 97.4 98.6 $361.7 65.7 55.0 31.2 35.2 $187.1 44.6 54.5 62.6 72.1 $233.8
Income taxes - Adjusted 14.7 15.7 13.5 13.6 57.5 9.2 7.6 4.3 4.9 26.0 6.2 7.6 8.8 10.1 32.7
Net Income - Adjusted 64.0 71.3 83.2 83.5 $302.0 56.6 46.8 26.9 30.3 $160.5 38.3 46.9 53.8 62.0 $201.0
AdjustedEPS - Diluted $0.58 $0.64 $0.75 $0.76 $2.74 $0.51 $0.42 $0.24 $0.27 $1.45 $0.35 $0.42 $0.48 $0.56 $1.81
WeightedAverage Shares - Diluted 109.6 111.1 110.4 110.3 110.4 110.6 110.5 110.7 110.8 110.6 110.9 111.0 111.1 111.2 111.1
AdjustedMargin Analysis (% of revenue)
SystemSolutions - cost of net revenue 57.2% 55.4% 55.5% 57.6% 56.4% 57.2% 59.2% 63.0% 62.6% 60.4% 58.5% 59.3% 60.5% 59.9% 59.5%
Services - cost of net revenue 56.6% 55.2% 52.4% 51.8% 53.8% 56.6% 55.1% 53.4% 53.0% 54.4% 57.2% 55.2% 52.1% 51.4% 53.8%
Total costs of net revenue 57.1% 55.4% 54.6% 55.8% 55.6% 56.5% 57.8% 59.2% 59.4% 58.2% 58.0% 57.9% 57.6% 56.8% 57.6%
Gross profit 42.9% 44.6% 45.4% 44.2% 44.4% 43.5% 42.2% 40.8% 40.6% 41.8% 42.0% 42.1% 42.4% 43.2% 42.4%
Research & development 7.5% 7.4% 7.3% 7.3% 7.4% 8.6% 9.3% 10.5% 10.3% 9.7% 9.9% 9.4% 9.0% 8.8% 9.3%
Sales & marketing 8.2% 8.6% 8.2% 8.5% 8.4% 9.7% 9.8% 10.8% 11.4% 10.4% 10.7% 10.0% 9.6% 9.7% 10.0%
General & administrative 6.7% 7.3% 7.2% 5.7% 6.7% 7.3% 7.7% 9.0% 7.8% 8.0% 8.3% 7.9% 7.6% 6.8% 7.6%
Operating income 20.5% 21.3% 22.8% 22.7% 21.9% 18.2% 15.5% 10.4% 11.2% 13.9% 13.1% 14.8% 16.3% 17.8% 15.6%
Growth (Y/Y)
US and Canada -6.5% 7.0% 13.6% 25.5% 9.5% 10.6% -5.5% -16.3% -15.8% -7.5% 7.5% 7.8% 10.2% 10.2% 8.9%
Europe 102.0% 119.9% 109.3% 36.0% 84.1% 8.7% -15.8% -12.0% -9.1% -8.0% -0.4% 1.5% 7.8% 10.4% 4.9%
Latin America 100.1% 71.1% 45.3% -23.8% 34.2% -27.2% -11.3% -25.9% -22.5% -21.7% -5.2% 0.0% 7.5% 9.4% 2.5%
Asia 72.6% 119.9% 71.9% 31.9% 66.3% 11.0% 1.6% -7.4% -7.2% -1.2% -0.2% 3.3% 8.8% 9.4% 5.4%
Total Revenue 49.7% 63.7% 55.5% 17.5% 44.0% 1.0% -10.4% -15.4% -13.1% -9.8% 1.2% 3.2% 8.5% 10.1% 5.7%
Total Cost of Net Revenue 45.3% 60.2% 47.8% 9.1% 37.3% 0.0% -6.4% -8.2% -7.4% -5.7% 4.0% 3.4% 5.5% 5.3% 4.6%
Gross Profit - Adjusted 56.1% 68.3% 65.9% 30.2% 53.5% 2.4% -15.2% -24.0% -20.2% -15.0% -2.4% 2.9% 12.9% 17.0% 7.3%
Research & development 54.0% 45.6% 36.4% 9.3% 33.6% 14.3% 11.7% 21.7% 22.8% 17.7% 17.9% 5.2% -7.5% -6.0% 1.7%
Sales & marketing 39.0% 50.8% 42.2% 16.3% 35.6% 17.8% 1.7% 11.9% 15.6% 11.5% 12.8% 5.1% -4.0% -5.9% 1.5%
General & administrative 57.1% 82.4% 81.0% 19.3% 57.9% 8.9% -4.9% 6.6% 18.9% 6.7% 16.5% 5.6% -8.5% -3.5% 1.9%
AdjustedOperating Expenses 49.0% 57.5% 50.3% 14.6% 40.8% 14.0% 2.8% 13.4% 18.9% 12.1% 15.5% 5.3% -6.6% -5.3% 1.7%
AdjustedOperating Income 64.7% 81.9% 84.9% 49.6% 69.1% -10.1% -35.0% -61.2% -57.2% -42.8% -27.3% -1.1% 69.5% 75.6% 18.7%
AdjustedPre-Tax Income 59.3% 62.1% 69.2% 38.6% 56.0% -16.5% -36.8% -68.0% -64.3% -48.3% -32.2% -0.8% 100.6% 104.9% 25.0%
AdjustedNet Income 62.0% 66.1% 80.7% 46.6% 62.8% -11.7% -34.4% -67.7% -63.8% -46.9% -32.2% 0.3% 100.1% 104.9% 25.3%
AdjustedEPS 35.0% 39.6% 52.7% 43.9% 42.4% -12.5% -34.0% -67.8% -63.9% -47.0% -32.4% -0.1% 99.4% 104.2% 24.8%
AdjustedTax Rate 18.7% 18.0% 13.9% 13.8% 15.9% 13.9% 13.8% 13.8% 14.0% 13.9% 14.0% 14.0% 14.0% 14.0% 14.0%
FY14E FY12A FY13E
Source: Company data, Deutsche Bank estimates
10 October 2013
Computer Services & IT Consulting
Mobile Payments

Deutsche Bank Securities Inc. Page 15



Appendix 1

Important Disclosures

Additional information available upon request

Disclosure checklist
Company Ticker Recent price* Disclosure
Visa Inc. V.N 183.85 (USD) 9 Oct 13 7,14,15
MasterCard MA.N 657.23 (USD) 9 Oct 13 8,14,15
*Prices are sourced from local exchanges via Reuters, Bloomberg and other vendors. Data is sourced from Deutsche Bank and subject companies

Important Disclosures Required by U.S. Regulators
Disclosures marked with an asterisk may also be required by at least one jurisdiction in addition to the United States.
See Important Disclosures Required by Non-US Regulators and Explanatory Notes.
7. Deutsche Bank and/or its affiliate(s) has received compensation from this company for the provision of investment
banking or financial advisory services within the past year.
8. Deutsche Bank and/or its affiliate(s) expects to receive, or intends to seek, compensation for investment banking
services from this company in the next three months.
14. Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company
within the past year.
15. This company has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received
non-investment banking securities-related services.

Important Disclosures Required by Non-U.S. Regulators
Please also refer to disclosures in the Important Disclosures Required by US Regulators and the Explanatory Notes.
7. Deutsche Bank and/or its affiliate(s) has received compensation from this company for the provision of investment
banking or financial advisory services within the past year.

For disclosures pertaining to recommendations or estimates made on securities other than the primary subject of this
research, please see the most recently published company report or visit our global disclosure look-up page on our
website at http://gm.db.com/ger/disclosure/DisclosureDirectory.eqsr

Analyst Certification
The views expressed in this report accurately reflect the personal views of the undersigned lead analyst about the
subject issuers and the securities of those issuers. In addition, the undersigned lead analyst has not and will not receive
any compensation for providing a specific recommendation or view in this report. Bryan Keane

10 October 2013
Computer Services & IT Consulting
Mobile Payments

Page 16 Deutsche Bank Securities Inc.



Historical recommendations and target price: Visa Inc. (V.N)
(as of 10/9/2013)
1
2
3
4
5
6
7
8
9
0.00
50.00
100.00
150.00
200.00
250.00
Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13
S
e
c
u
r
i
t
y

P
r
i
c
e
Date

Previous Recommendations
Strong Buy
Buy
Market Perform
Underperform
Not Rated
Suspended Rating
Current Recommendations
Buy
Hold
Sell
Not Rated
Suspended Rating
*New Recommendation Structure
as of September 9,2002
1. 05/04/2011: Buy, Target Price Change USD105.00 6. 10/19/2012: Buy, Target Price Change USD150.00
2. 08/08/2011: No Recommendation, Target Price Change USD0.00 7. 01/22/2013: Buy, Target Price Change USD177.00
3. 10/06/2011: Upgrade to Buy, Target Price Change USD107.00 8. 05/14/2013: Buy, Target Price Change USD196.00
4. 02/09/2012: Buy, Target Price Change USD125.00 9. 07/15/2013: Buy, Target Price Change USD226.00
5. 05/03/2012: Buy, Target Price Change USD135.00



Historical recommendations and target price: MasterCard (MA.N)
(as of 10/9/2013)
1 2
3
4
5
6
7
8
9
10
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13
S
e
c
u
r
i
t
y

P
r
i
c
e
Date

Previous Recommendations
Strong Buy
Buy
Market Perform
Underperform
Not Rated
Suspended Rating
Current Recommendations
Buy
Hold
Sell
Not Rated
Suspended Rating
*New Recommendation Structure
as of September 9,2002
1. 11/03/2010: Buy, Target Price Change USD285.00 6. 02/24/2012: Buy, Target Price Change USD465.00
2. 02/04/2011: Buy, Target Price Change USD300.00 7. 05/02/2012: Buy, Target Price Change USD515.00
3. 05/04/2011: Buy, Target Price Change USD330.00 8. 08/01/2012: Buy, Target Price Change USD500.00
4. 08/08/2011: No Recommendation, Target Price Change USD0.00 9. 01/22/2013: Buy, Target Price Change USD590.00
5. 10/06/2011: Upgrade to Buy, Target Price Change USD415.00 10. 07/15/2013: Buy, Target Price Change USD756.00



10 October 2013
Computer Services & IT Consulting
Mobile Payments

Deutsche Bank Securities Inc. Page 17




Equity rating key Equity rating dispersion and banking relationships
Buy: Based on a current 12- month view of total
share-holder return (TSR = percentage change in
share price from current price to projected target price
plus pro-jected dividend yield ) , we recommend that
investors buy the stock.
Sell: Based on a current 12-month view of total share-
holder return, we recommend that investors sell the
stock
Hold: We take a neutral view on the stock 12-months
out and, based on this time horizon, do not
recommend either a Buy or Sell.
Notes:
1. Newly issued research recommendations and
target prices always supersede previously published
research.
2. Ratings definitions prior to 27 January, 2007 were:
Buy: Expected total return (including dividends)
of 10% or more over a 12-month period
Hold: Expected total return (including
dividends) between -10% and 10% over a 12-
month period
Sell: Expected total return (including dividends)
of -10% or worse over a 12-month period
47 %
51 %
2 %
55 %
44 %
39 %
0
50
100
150
200
250
300
350
400
450
500
Buy Hold Sell
North American Universe
Companies Covered Cos. w/ Banking Relationship


10 October 2013
Computer Services & IT Consulting
Mobile Payments

Page 18 Deutsche Bank Securities Inc.




Regulatory Disclosures
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consistent or inconsistent with Deutsche Bank's existing longer term ratings. These trade ideas can be found at the
SOLAR link at http://gm.db.com.
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its content from a Brazilian regulatory perspective and for its compliance with CVM Instruction # 483.
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Member of the Global Executive Committee

Guy Ashton
Global Chief Operating Officer
Research
Marcel Cassard
Global Head
FICC Research & Global Macro Economics
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Co-Global Heads
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Regional Head
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Regional Head
Americas Research


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