Investor Presentaiton
Owning the Payment Tech Stack and a Direct to Merchant
Software Solution Provides BANC with Compelling Economics
Illustrative: $100 Transaction Value with a 250 bps Credit Card Transaction Fee
Typical Bank Sponsoring ISOs
(Low/Mid Risk Merchants)
Current State: BANC - Deepstack
Handling the Front-end
BANC OF
CALIFORNIA
Future State: BANC - Deepstack
Handling the Front-end & the Back-end
Interchange rate
149 bps
(Issuer)
Interchange rate
(Issuer)
149 bps
Interchange rate
(Issuer)
149 bps
Card Networks (V, MC)
10 bps
Processor (TSYS,
First Data, etc.)
Gateway (NMI, etc.)
7 bps
Card Networks (V, MC)
Processor (TSYS,
First Data, etc.)
10 bps
Card Networks (V, MC)
10 bps
7 bps
4 bps
BANC / Deepstack:
•
Gateway: 4 bps
ISO
78 bps
•
No ISO: 78 bps
•
Bank Sponsor: 2 bps
Total: 84 bps
BANC / Deepstack:
•
Processor: 7 bps
•
Gateway: 4 bps
91 bps
84 bps
•
No ISO: 78 bps
•
Bank Sponsor: 2 bps
Total: 91 bps
Bank Sponsor
2 bps
BANC may pay a referral
fee of up to 39 bps or 50%
of the ISO fee
(39 bps)
BANC may pay a referral
fee of up to 39 bps or 50%
of the ISO fee
(39 bps)
Bank Only Sponsoring
ISOs Earns: 2 bps
BANC Earns: 45 bps to 84 bps
BANC Earns: 52 bps to 91 bps
Transaction has the potential to generate fees of up to 91 bps in front-end and back-end fee income
At scale, payments is increasingly profitable as transaction volumes increase
Note: Illustrative card transaction economics.
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