1. Electronic Billing and Payment Market2012. Property of Latente, LLC.

2. Part 1: The Bill Pay Ecosystem 3. Bank PaysBiller PaysConsolidated (Bank Bill Pay) ModelConsumer Mailed Bill$.35 - .55/trans.BillerPaymentBy Check Billing andOnline Banking &Payment ProcessorBill PayApplicationPayment$.05 - .15/trans. InstructionsdebitcreditConsumers Bank ACH Network Billers Bank2012. Property of Latente, LLC. 4. Notes on Consolidated Model Thick and Thin E-Bills Typically summary (Thin) data is stored at EBP processor. For full detail (Thick) consumeris redirected to biller. Some billers outsource both Thin and Thick to EBP processor. Top 400 Billers (by volume) typically reached with electronic payments andremittance (80% of volume) On Us payees that are the FI themselves (e.g., credit card) may be stripped off Smaller Billers and payments by riskier / new consumers typically are mailed a papercheck payment Depending upon processor some electronic volume may go through intermediaries such asRPPS for remittance Variations on the Consolidated Model FI provides bill payment application that uses web services from the EBP processor FI provides bill payment application and payment warehouse uses single EBP processorfor batch remittance Banks attempt least cost routing - try to maximize economies of On Us/We, and routingremittance through RPPS and others rather than 100% of volume to single processor2012. Property of Latente, LLC. 5. Online Biller Direct ModelConsumer BillerPaymentRemittanceInstructionsBiller WebsiteACHConsumers Bank Biller Bank2012. Property of Latente, LLC. 6. Notes on Online Biller Direct Model Variations of the Biller Direct Model Billers may use various models to host their Online Biller Direct site Host it themselves purchasing software from a vendor and using their bank for ACH debits Outsource hosting to vendor typically driven by per transaction fees (less $.05 depending on volume) Emergency / On-Demand Most prevalently an IVR (phone) oriented model (also available through call center and online) Immediate posting of payments (depending on payment type and risk model, may be memo post) Usually credit or debit card along with a convenience fee to cover payment (interchange) costs plus a penalty (fee may be all to Biller or split with a service provider; can be $3 to over $15) Walk-in / Agent Pay Offered in Authorized (Biller contracts with agents to accept payments) can include Emergency Also offered in Non-authorized / Convenience agents accept payments for any biller their payment processor can reach (Convenience typically has consumer fee of $1 to $3; includes cost of processing) Authorized often free to consumer Biller pays agent a fee ($.50; includes cost of processing) Authorized may offer Immediate posting of payments (depending on payment type and risk model, may bememo post) Usually cash, some checks and increasingly cards are used for payments Pre-paid telecom and cards Through authorized agents or biller store fronts Usually immediate posting to account or card (Convenience fee to consumer of $3 or more) Heavily cash, some checks and increasingly pre-paid and debit cards for telecom 2012. Property of Latente, LLC. 7. Part 2: Bill Payment Market Statistics 8. Consumer Payment Transactions By Product Type(billions of transactions)160.6 CAGR1802.2Other 0.2% 1.8 141.9160 5.3Alternative Online Payments 22.5% 2.0 0.75.5 4.3 2.3 2.7 2.53.5 Bank Bill Pay 18.5%31403.28.2 2.1Online Biller Direct13.0% 12.512030.1Prepaid Card10.4% 27.5100 ACH Check Conversion-5.0%ACH Debit 12.0% 8034.8 49.3Check -8.1% 60Credit Card 1.8% 40 Debit Card7.2% 51.147.9 20 Cash-1.3% 02009 2014Sources: Industry data; Latente analysis2012. Property of Latente, LLC. 9. Bill Payment Market Size By Volume 24.9 Transactions (billions) 25 20.0 3.5 20 2.15.5 CAGR3.0ACH Debit 12.0% 1.9 13.0% 15 1.5Online Biller Direct2.3Card4.4% 5.3 Consolidated Bill Pay 18.5% 10 Check / Money Order - -4.6% _____11.1CAGR ALL TYPES4.6% 5 8.8 0 20092014Sources: Industry data; Latente analysis 2012. Property of Latente, LLC. 10. Comparing Bank Bill Pay and Biller Direct Bank based usage is growing more rapidly and while both models will drive revenuegrowth for vendors, Biller Direct is larger in terms of revenues. Comparative Economics ($B) Bank Bill Pay Biller Direct5 yr. CAGR = 8% 5 yr. CAGR = 8% $2.6$1.8$1.3$0.9 2009 2014 20092014Transactions growing but on track to be over taken by Bank model.Price compression will lower revenue per transaction butDynamic New entrants trying to find features to compete with Bankincreases in transactions will prop up revenue growthconsolidated bill pay advantagesRevenue Driver Transaction Growth Transaction Growth; Consumer FeesRevenue SourceFinancial Institutions Primarily Receiving Payee; Consumers Secondary Top 4 account for over 80% of the market withCompetitive Intensity Fragmented with Fiserv and Western Union as leaders Fiserv/CheckFree dominantModel is increasing in popularity and taking lead in terms of Often the starting place for first time bill payers. Billers continue toObservationsusage. Increased drive to integrate more tightly with e-prefer v. Consolidated model. As younger and latent adopters arebanking online and mobile to increase value and usage.less banked, Biller Direct or other biller friendly models may thriveDownward pressure on pricing reduces margins; largest Biller direct is perceived to offer faster payment and more paymentIndustry Trends banks seek control and pressure vendors on price and LCR; options (particularly cards); As E-Bill distribution grows Billersvendors responding with P2P and other value addswarm up to consolidated model if it saves them money. 11. Bill Direct Presentment and Payment Market (2011) is nearly $2.3B Revenues By Product Type ($M) $700 $600 $600 $500 $460 Distributed e-Bill$410Walk-in Convenience $390 $400Hosted Biller DirectWalk-in Expedited $300 Walk-in Prepaid Telecom$225Online Pre-paid telecomOn Demand $200 $150 $100 $50$-Sources: Industry data; Latente analysis2012. Property of Latente, LLC. 12. Penetration of Bank Bill Pay Varies Widely WithSignificant Latent Upside Estimated % of DDAs Subscribing to Online Bill Payment By Bank Size504540353025201510 5 02012. Property of Latente, LLC. 13. Price Pressure Is On Bank Bill Pay ServiceProviders But Varies by Bank SegmentEstimated. Annual Change Estimated Avg. Revenue / Transaction Top 10 (8%)Bank Mid Tier (3%)Bank Community Bank (3%) Remittance Only (10%)0.000.200.40 0.60Sources: Industry data; Latente analysis 2012. Property of Latente, LLC. 14. E-Bill Volume Is Growing, Potential Reach is LargeBut Also UnrealizedEstimated Percentage of Bill Payment Transactions 100%90%80%70%60% e-Bills Not Distributede-Bills Scraped50%Unsubscribed e-Bills40% e-Bills Paid30%20%10% 0% Sources: Industry data; Latente analysis2012. Property of Latente, LLC. 15. Part 3: Bill Pay Competition Statistics 16. Consolidated Bill Pay Competitors - Market Share of Top Four Share of Bill Pay UsersShare of Outsourced Bill Pay FIs FiservFISORCCiPay/JackFiserv FIS ORCC iPay/Jack 100% 2 100%390% 90% 20 3080% 80%70% 70%1060% 60%50% 50%2540% 40% 7530% 30%20% 20%3510% 10%0% 0% Sources: Aite; Fiserv Bill Pay Life Cycle Survey; Industry data; Latente analysis 2012. Property of Latente, LLC. 17. Bill Payment Market CompetitorsCompetitor AssociatedMarket Ecosystem Offerings Competitive PositionRevenueShare FiservConsolidated: 60% Bank Bill Pay, Remittance Fiserv is the number 1 or 2 player in all the primary segments in $600M e-Bill presentment andwhich it competes; Dominates bank bill pay and e-Bill distributiondistributionthru banks Biller: $325M 15% Biller Direct bill payment Top tier banks deliver 70% of revenue (CheckFree); BofA 30%(Online, IVR, CSR) Patented risk model delivers 80% next-day payments via ACH Walk-In bill payment Biller direct strength in utility and telecom segments; lagging infinancial services verticals; overall On Demand market share 30% Nationwide walk-in Convenience pay agent network (35% share);slow to no growth market Integration with Corillian online banking, Mcom Mobiliti banking,and CashEdge Pop Money all market leading products FIS / Consolidated: 10% Bank Bill Pay, Remittance Metavante boosted FIS to #2 in bank bill pay Metavante $100M e-Bill presentment Focus is small to mid-sized FIs Biller Direct payment (IVR, Smaller FI reach reduces value of e-Bill distribution most of their Biller: $20M 1% CSR, Online)e-Bill content is scraped rather than direct from the Biller Statement Formatting Compete heavily on price and bundling with other payment services(software) Biller market is generally not a significant focus for FIS, butstrategically marketed to improve competitive position v. Fiserv ORCCConsolidated: 5% Bank Bill Pay, Remittance At best number three player in most markets $55M e-Bill presentment Well-regarded for integrated online banking and bill payment Biller Direct payment (IVR, product, ease of use, and budget management features Biller: $55M 3% CSR, Online) Risk model uses debit networks which is more expensive than ACH eLockbox Strongest in the small and mid-market for banks and billers Uses eLockbox to gain greater share of wallet with small Billers 18. Bill Payment Market Competitors contd.Competitor Associated Market Ecosystem Offerings Competitive PositionRevenue Share iPay/Jack Consoli- 5% Bank Bill Pay, Remittance Focus on reseller partnerships with online banking and other financial Henry dated: e-Bill presentmenttechnology providers Regarded for tight integration with partners solutions $50M Products easy to implement, low TCO e-Bill content available is all scraped Western Biller:25% Biller Direct bill payment Dominant provider in money transfer with nationwide agent network Union $575M (IVR, CSR, Online) Number 1 or 2 player in most Biller segments in which it competes Walk-In convenience bill Western Union dominates the Walk-In Expedited Payments market payment (60% share); heavily tilted to financial services (e.g., consumer credit). Walk-In expedited billHas used with Speedpay (On Demand payments) to build share (45%) payment particularly with financial services billers With wide spread adoption of bank bill pay and faster payment options there, Expedited walk-in business is weakening Small but growing in fast growing pre-paid telecom market Money Biller:6% Walk-In convenience bill Competes against Western Union in the Walk-In Expedited segment Gram$135M payment (heavily financial services) with about 30% market share; and a very Walk-In bill expedited bill minor player in Walk-In Convenience segment (less than 5%) payment MoneyGram has not made major efforts to compete outside of walk-in Recently signed a deal with Fiserv to enable Emergency Payments via Fiservs bank billpay IPP Biller:2% Walk-In convenience bill Competes against Fiserv in walk-in convenience market (20% share) $45Mpayment Has a simpler off the shelf solution (browser-based) that is less Walk-In prepaid telecom expensive to implement for agents IPP competes heavily on price Focused on non-contracted segment and selectively going after smaller authorized billers who get less attention from Fiserv Also distributes cell phones for its wireless telecom clients