Securter Systems
- 1. 1 Securter Systems Inc. Toronto, Canada S E C U R I T Y E X C E L L E N C E, S I M P L E Pitch Deck https://securter.com/
- 2. The Problem 2 ● Credit Card Information Obtained by criminals for Card Not Present (CNP) Fraud through hacking, skimming or phishing. ● Online Card Not Present Fraud is a multi-billion-a-year problem for both merchants and buyers. ● Though people often focus on the way CNP fraud affects individuals, it also has a significant impact on businesses: - Fraudulent chargeback fees - False-positive decline rates - Loss of consumer trust and loyalty - High PCI compliance costs - https://www.merchantfraudjournal.com/card-not-present-fraud/
- 3. Technology 3 The most advanced fraud prevention feature, the crown jewel of the company's assets will incorporate the reliable EMV payment method. The technology behind EMV makes it much more difficult for fraudsters to use stolen card information online. • Technology allows cardholders to tap credit or debit cards onto cell phones and input the bank's PIN • Mimics the physical presence of the cardholder in front of the merchant • Patent-pending technology to be certified upon completion - Demo: "Tap-on-phone" feature done by one of Securter’s technology development lead. https://drive.google.com/file/d/1ZelExnAUMoZ008FY3wtTbgLMJnQ3EInG/view?usp=sharing
- 4. Services for online merchants 4 AI Helps Control Risk Enterprise Grade, Cost-effective, Artificial Intelligence (AI) tools to reduce fraud & false declines. . 3DS 2.0 Protocol For Better User Authentication Compliance under PSD2*, Liability shift will occur and the responsibility will be with the issuer, the merchant will enjoy protection from fraudulent chargebacks. Payment Processing The Securter solution is payment processor agnostic. Merchants can use Securter with their existing payment processor. Know Your Client (KYC) Enhanced Customer Verification KYC solution provides an ID based, in person user verification. - https://3dsecure2.com/ - Payment Services Directive 2 (PSD2) is a European Union (EU) regulation Merchant panel Cool reports showing merchant’s approval rates, risk level etc.,
- 5. Competition 5 Mobeewave Inc. (recently acquired by Apple for $100 million) and Global Payments, in partnership with Mastercard and NMI, are developing a Tap on Phone secure technology that enables merchants to use their smartphones as card readers to accept payments from customers. Apple Secure Enclave - dedicated hardware component stores encrypted payment information, including the user's card details. Android devices use a Trusted Execution Environment (TEE), a secure area within the main processor or a separate co-processor. Unlike Apple's Secure Enclave, Android relies on a mix of software and hardware security features to safeguard sensitive data, including biometric information. The Securter Payment App can be integrated with existing payment wallets or function as a standalone payment wallet. - Unpatchable flaw found in iPhone's Secure Enclave - all Apple chips between the A7 and the A11. https://tech.hindustantimes.com/tech/news/-unpatchable-flaw-found-in-iphone-s-secure-enclave-here-s-what-it-means-for-the-user-71596515416940.html
- 6. Competition 6 Feature/Capability Supervised Machine Learning Unsupervised Machine Learning Rule & policy engine Case Management and Real-Time Investigation tools 15+ year enterprise ecommerce fraud prevention network data Device fingerprinting Payment processing functionality Ability to integrate custom fraud ML models Automated rule tuning Know Your Client (KYC) Tap on Phone payment solution (EMV payment method ) Company’s valuation Powered by Simility X X X X $43.3B X X X $986.8M X X X X X $89.4B X X X $1.3B X X X X X X X X X TBD X X X
- 7. 7 ● Global Digital Payments Market is projected to grow from USD 2.5 trillion in 2023 to USD 5.8 trillion, at a CAGR of 14.3% from 2023 to 2030. ● The global Fraud Detection and Prevention Market size is projected to grow from USD 43.97 billion in 2023 to USD 182.66 billion by 2030, exhibiting a CAGR of 22.6% Market opportunity - According to market research report published by Global Data - Fraud Detection and Prevention Market
- 8. Market Response 8 • Pilot Agreements -Pilot agreements Signed – 3 (incl. a merchant with over 55 locations and an online presence). -Pilot Agreements under review – 3. -Agreements In Pipeline – 12. • Integrations effort -The first integration with Global Payments was developed and tested early this year. -The company is currently in a progressive state of integration and extension development for the WordPress / WooCommerce plugin, with a staggering 6.5 million users. • Securter signed an agreement with a major credit reporting agency and its affiliated company. -Securter can use the “Strategic Partnership between affiliated company and Securter” term in its sales decks, PRs, etc. -Go-to-market planning and collaboration on long-term business strategy. -Comprehensive quarterly business reviews, Co-branded data sheets, sales decks, and additional artifacts. -Hosted lead generation and networking events exclusive to Securter company.
- 9. 9 ● The key financials are presented below: Securter Systems Inc. is currently seeking 1.5M USD To date, the Company has raised 610K USD and received in-kind, investment over 530K USD. Capital Needed & Use of Funds ● Use of Funds: -Finalize the Tap-on-Phone feature development, integrations with additional PSPs and website builder platforms. -Certification acquisition and maintenance to ensure compliance with industry standards and regulations. -Hiring additional staff with expertise in software development, security, and customer support. -Upgrades and improvements to existing systems to enhance security, and reliability. - Launch our core system; marketing and sales efforts to raise brand awareness and attract new customers. Year 1 Year 2 Year 3 Year 4 Year 5 FPS* to Early adopters - $ 3,939,066 $ 5,851,606 $ 7,764,146 $ 9,676,686 $ FPS via partnership with online commerce giants 687,083 $ 19,998,943 $ 45,292,898 $ 204,672,654 $ 357,277,565 $ FPS via partnership with online payment processors - $ 5,361,300 $ 26,556,822 $ 100,527,118 $ 192,476,594 $ Total Securter's revenues 687,083 $ 29,299,309 $ 77,701,326 $ 312,963,917 $ 559,430,845 $ *FPS – Fraud Prevention Services Note: all numbers in the table are in CAD
- 10. Securter developing a payment system for online merchants linked to top tools and technologies to reduce payment fraud and false declines. The uniqueness lies in adapting these technologies for online payments and their optimization. For more information: steve.epstein@securter.com https://securter.com/ | LinkedIn | Instagram | Twitter | Facebook Summary
- 11. APPENDIX FOR Q&A
- 12. 12 Adaptive AI Supervised ML+ Unsupervised ML Payment Service Provider (PSP) How System works
- 13. The Business Model 13 Securter’s initial core business model consists of three main revenue streams: ● 1st –Fraud prevention services for early adopter customers: - High-risk customers, such as major online gaming platforms. - Small and medium-sized online merchants ● 2nd - Fraud prevention services through partnerships with online commerce website builders: - WooCommerce, Wix, and Shopify. - Securter has engaged with the WordPress / WooCommerce (6.5 million users) and is currently developing an extension integration tool for this platform. ● 3rd – Fraud prevention services via partnerships with online payment processing companies: - Global Payments, Stripe, Moneris and others
- 14. Roadmap and Major Future Milestones 14 2025 • Expand Canadian and US sales • Launch in Israel, UK, and Australia • Expanding sales and technical support resources 2024 • Start Apple iOS Tap on Phone development • A strategic engagement with online commerce platforms • A strategic engagement with payment processing platforms • Massive acquisition effort of the merchants via the platforms above • 2023 • MVP of Tap on Phone feature • Integrations with WooCommerce, WIX, Shopify • Integrations with PSPs such as Moneris, and Stripe • Lab testing and certifications • Acquiring 1st early adaptors’ customers 2026 • Continue sales & marketing activities and Launch in Asia Goals and Objectives 2023 2024 2025 2026
- 15. The Team 15 James D. Romano – President, CEO & Director Involved in the management, strategic planning, corporate communications and financing of public companies in the mining, oil and gas, and tech sectors. These companies have been listed on public exchanges in both Canada and the United States. Steve Epstein – Co-Founder, Chief Operations & Innovation Officer and Director - Practical Engineer (Architecture). 20 years of experience in entrepreneurship. Previously developed social network techniques that have since become widely adopted. Proficient in project management, budgeting, procurement, process improvement, and learning new technologies. Highly effective at coaching and mentoring Agile teams. David Edmunds – CFO Mr. Edmunds is a Chartered Professional Accountant with over 25 years’ experience as Chief Financial Officer or senior financial executive in mature and early-stage companies, both public and private, in a wide range of industries, including hi-tech manufacturing, software development and alternative energy. Vitaly Vlasenko – CTO IT specialist with more than 18 years of experience, specializing in IT Service management, IT project management, leading product development and communicating with stakeholders and clients. In the last 6 years, Vitaly was working as a CTO for various companies and was responsible for the entire technological aspect of the operation. Broad experience in leading development teams, infrastructure teams, project and product management as well as audit and compliance certification processes (for example ISO270001, GDPR, GLI, PCI). Michael Shmulevich – VP of Engineering Well-known technology fintech designer and systems strategist with vast experience guiding both start-ups and senior corporate planners. Michael has held top technical management positions at several leading technology companies and has led the software development for numerous increasingly sophisticated financial technology projects that required world-class expertise in trading, risk management, blockchain and cryptocurrency solutions. Rob Clark – Director A driven entrepreneur and venture capitalist with over twenty-five years of business experience within both the private equity markets, domestic and international equity markets. He has been a part of numerous transactions including mergers, acquisitions, company buyouts, public offerings, and corporate restructuring. Mr. Clark brings to his directorship an extensive understanding and hands-on ability in business and management consulting as well as public company advisory services. Evgeniy Kharam - Cyber Security Consultant/Advisor Mr. Kharam was formerly the VP of the Solution Architecture Division at Herjavec Group - www.herjavecgroup.com, recognized as one of the world’s most innovative cybersecurity enterprises. In his role at Herjavec, Evgeniy designed security solutions for clients based on both their current infrastructure and future needs, calculating and foreseeing how existing measures can be best integrated with the addition of new protection solutions. Evgeniy recently started the Security Architecture podcast to give back to communities and help companies improve cybersecurity architecture.