1. Virtual Prepaid: How to Make (Real) Profit
Alex Mifsud
Founder & CEO
June 2013

2. Confidential and Proprietary Information | © 2013 Ixaris System Ltd
1. What is Virtual Prepaid
2. Who Needs Virtual Prepaid
3. Delivering Profitable Solutions
4. Lessons learnt – Dos and Don’ts
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Outline

3. Confidential and Proprietary Information | © 2013 Ixaris System Ltd
Virtual prepaid cards are just payment cards without plastic
Multiple use modes: single-load multi-spend, single-load single-
spend, multi-load single-spend, multi-load multi-spend
Real time issuance: Issued, funded and delivered electronically
in real time, at almost zero cost
Fine-grain control: at the time of issuing can set the value-as-
needed, MCC-restriction, time-validity window
Perfect reconciliation each card issued against external
reference provides to the penny reconciliation against external
data such as purchase order, client claim, etc
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4. Confidential and Proprietary Information | © 2013 Ixaris System Ltd
Corporate prepaid is the most lucrative segment in prepaid
Corporate Prepaid Transaction Volume
European Potential Transaction Volume by 2015
Source: Visa Europe 2011
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and Virtual Prepaid delivers incredible advantages
in most application areas
Global Potential Transaction Volume by 2015
Source: Visa Europe 2011

5. Confidential and Proprietary Information | © 2013 Ixaris System Ltd
Ixaris has 10 years experience delivering Virtual Prepaid
Concept
2003: Visa’s first virtual prepaid card
program in 2003. ~$0.5 billion p.a. now
Innovation
2010: Developed application platform for
Virtual Prepaid
Technology
2013: Serving 20+ corporate clients with
Virtual Prepaid solutions across most
Corporate prepaid segments
Solutions
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6. Confidential and Proprietary Information | © 2013 Ixaris System Ltd
Case Study 1: Corporate Purchasing
Background
• Top 10 European online travel agency
Business Challenge
• Purchasing of low cost carrier flights involved surcharges that was negatively
impacting their bottom line
• Velocity checks by merchants limiting effectiveness of corporate cards
• Problems with allocating funds from refunds and cancellations back to customers
• Poor internal controls due to high limit s on corporate cards
2. Saves on low
cost airline
surcharges
2. Books hotel
rooms and
rental cars
1. Order virtual
cards via API or
via console
3. Download reports for
reconciliation
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7. Confidential and Proprietary Information | © 2013 Ixaris System Ltd
Case Study 1: Corporate Purchasing
Card activity
• Average transaction value €150
• Monthly volume €20M
Revenue
• Total monthly revenue from fees and
interchange =
€92,000
Cost
• Total monthly processing and card scheme
cost =
€45,333
P&L - annualised
• Revenue €1,104K
• Gross Profit €560K
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8. Confidential and Proprietary Information | © 2013 Ixaris System Ltd
Right card type for the job
• Virtual cards are an extremely powerful tool for corporate purchasing
• Prepaid BINs are not always the best option – interchange can be an excellent
source of revenue (Prepaid BIN vs Corporate BIN)
Deliver a complete business solution
• Solution needs to cater for comprehensive management by the client,
minimizing operating overheads for the provider
• Rich-data reconciliation reports
• Tools to facilitate allocation of cancellations and refunds to customers
Flexible pricing to incentivise volume
• Many procurement clients multi-source, therefore price to incentives volume
Case Study 1: Corporate Purchasing – Lessons Learnt
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9. Confidential and Proprietary Information | © 2013 Ixaris System Ltd
Background
• Our Client is a global top 5 market research firm, carries out market
research/surveys with professionals in 90 countries
Business Challenge
• The use of a variety of country-specific gift vouchers was costly and
causing major operational issues
Case Study 2: Incentives
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We delivered a complete branded solution to send payments
worldwide in multiple languages with a seamless customer experience
Our client now issues rapid
payments at a lower cost

10. Confidential and Proprietary Information | © 2013 Ixaris System Ltd
Get the economics right for incentive programs
• Using virtual cards as default, and plastic as an upgrade is a very cost-
effective combination for incentives
Highly configurable re-usable applications, not bespoke
• Corporates want customisation, especially when it comes to the user
experience and their brand, but avoid bespoke development
Able to tap into multiple revenue streams to win business
• Many sources of revenues, including interchange, client-fees, end-user
fees, dormancy/breakage
• Not all may be acceptable to the client, so must be able to trade off and
offer right mix
Optimize support for effectiveness and cost
• Provide tools / FAQ for the client to provide first line support
Case Study 2: Incentives – Lessons Learnt
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11. Confidential and Proprietary Information | © 2013 Ixaris System Ltd
Proven with Ixaris’ own corporate
clients
PCI-compliant, in-the-cloud for rapid
deployment – no IT integration needed
Ready-to-market, highly configurable
corporate prepaid applications
Full lifecycle : client configuration, on-
boarding, monitoring and support
Just bring your own BIN
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We achieved profitable Corporate Prepaid programmes by creating
a highly configurable re-usable application suite
Payments Server

12. Confidential and Proprietary Information | © 2013 Ixaris System Ltd
Summary
1. Virtual cards can address many aspects of Corporate Prepaid
applications in a novel way
2. The economics of virtual cards can deliver superior profitability in
many Corporate prepaid applications
3. Must have a flexible fit-for-purpose platform, like Ixaris Payments
Server, to optimize applications for client needs and delivering
profitability
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13. Thank you
Alex Mifsud
Founder and CEO
info@ixaris.com
www.ixaris.com