Immersive Experience | Fintech Revolution

the fintech revolution

Table of contents introduction 03 infrastructure is enabling innovation 07 regulation at the forefront 10 start with customer acquisition 13 alternative data provides a fresh view into financial health 20 embedded finance makes transactions effortless 25 digital payment acceleration 29 cryptocurrency advances to the mainstream 40 bringing it to a close 45 sources 47 contributor bios 48 SHARE VISIT PG 02

Introduction The We believe a monumental in昀氀ection in the world of FinTech has taken place over the past decade. Rapid growth in total addressable markets (TAM), investment, and company scale transformation has put FinTech front and center. While venture funding has grown across nearly every occuring vertical, FinTech has outpaced the broader tech sector of late. As demonstrated below, U.S. FinTech founders attracted less than $1 billion in total venture funding in 2010. That in FinTech is number grew over 9x to $8.5 billion in 2015—and then more than doubled to $20.5 billion in 2020. While that growth is staggering, we believe the opportunity ahead is as well, as we massive. outline in this paper. fintech has come a long way in the last decade1 PayPal then PayPal now Founded 2009 Founded 2009 Founded 2009 Founded 2012 Founded 2012 Founded 2013 Founded 2013 Founded 2013 Founded 2014 Founded 2015 INTRODUCTION SHARE VISIT PG 03

us vc deal activity2 $180 14000 $160 11,276 11,287 12000 10,648 10,900 $140 10,069 9,474 10000 $120 8,018 $100 6,891 8000 $80 5,515 6000 $60 4000 $40 $20 2 3 4 .1 8 1 .7 .1 2 2000 0. 7. $31.8 $45. $41.5 $48. $73. $85 $8 $8 $142 $138 $156. $0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Deal value ($B) Deal count us vc fintech deal activity3 1029 1031 938 100 $20 780 699 800 $15 637 649 600 493 $10 359 400 281 $5 198 200 $00 $00 4 2 5 $00 $00 4 5 .6 .8 0. $5. $8. $7 $7 $14. $16. $2 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Deal value ($B) $0.6 $1.2 $0.8 $0.9 $0.9 $1.4 $1.8 $2.3 $5.4 $8.5 $7.6 $1.8 $14.4 $16.2 $20.5 Deal count 97 139 150 163 198 281 359 493 637 699 649 780 1029 1031 938 INTRODUCTION SHARE VISIT PG 04

financials is the largest sector in the world4 Financial services is the #1 sector Numerous large outcomes Global market cap of public companies $16T 16 $14T US banks $10B+ $13T $10T $9T $9T 162 $6T Financial companies in Fortune 500 $5T $4T $3T $3T s tail e s e s s InternetRe lecom EnergyUtilitie Financial HealthcarIndustrialTeConsumereal EstatMaterial R Note: Based on Coatue’s classi昀椀cation of Sectors. Financial Services includes FinTech, e.g., V / MA / PYPL / SQ / ADYEN, etc. fintech has the potential to 10x+ over 10 years5 11x ~ $1.5T $16.0T FinTech Financials Based on the team’s classi昀椀cation of Sectors. FinTech includes private FinTech companies plus Next-Gen public FinTech companies. Logos shown are illustrative of companies in FinTech and 昀椀nancials sectors Financial services commands more market cap than any other sector in the world. There are 14 banks in the U.S. worth over $10 billion each and 425 worldwide 昀椀nancial institutions 6 valued at > $5 billion Additionally, 56% of that market cap is owned by companies that have been around for longer than 昀椀fty years. You can compare this to software today, 7 where only 5% of market cap is owned by 50+-year-old businesses. The transformation occurring in FinTech to date has been exponential, and we 昀椀rmly believe we’re only in the early innings when it comes to opportunities in some of the biggest INTRODUCTION SHARE VISIT PG 05

Our goal verticals such as insurance, merchant acquiring, issuing, asset management, real estate, and crypto, among others. Those of us who have been investing and operating in FinTech is for this for a long time share the unanimous opinion that disruptive technology companies are to read like speeding past the incumbents to create new models of 昀椀nancial services giants. proven wedges8 a playbook Bank account Credit cards Cross-border Trading P2P for founders and a framework for investors. vs vs vs vs vs $5/mo $5/mo 3% fee + wide FX $5.95/trade $0.19/check $12 overdraft fee One-o昀昀 fees spread (before Oct. 19) (Deluxe via Chase) yet to be proven wedges9 Subscription Bitcoin cashback Credit builder card 401K rollovers tracking Micro-savings While FinTech Twitter is busy challenging investors and operators alike for fast follows and large rounds, we think there’s good reason for the excitement in the space. With $16 trillion in incumbent market cap to be disrupted, we currently anticipate a de昀椀ned path to possibly at least 10x over the next 10 years. We think this is one of the biggest opportunities today in technology. In this paper, we will explore what we believe are the biggest opportunities in FinTech today in addition to what we have observed are distinguished and impressive strategies employed to date by what we think are some of the market leaders. We cover both B2B (Business-to-Business) and B2C (Business-to-Customer) FinTech ranging from the hottest infrastructure categories to k-factors and product wedges in consumer and SMB (small- and medium-sized businesses). Our goal is for this to read like an introduction for non-FinTechs, a playbook for founders, and a framework for investors. We’d love to hear from you as you read the doc and debate our observations and conclusions! INTRODUCTION SHARE VISIT PG 06

Infrastructure Is Enabling Innovation Integrating We believe the development of robust FinTech infrastructure companies is at the core of innovation for the sector. Integrated infrastructure reduces years of engineering build and with various maintenance into a single API (Application Programming Interface). Whereas companies of Compliance/ the past often needed to spend millions of dollars of venture funding and years of precious startup time just getting their product to the market, that money and focus can now be turned Risk/Banking towards 昀椀nancial product innovation. What excites us is that FinTechs and incumbents can services save now spend resources building products to address user segments that have been historically signi昀椀cant overlooked and signi昀椀cantly decrease the cost to deliver 昀椀nancial products - o昀昀ering a bank account used to be expensive! development As B2C FinTech has grown and increased its product complexity, it has created the time, enabling opportunity for the expansion of depth and breadth in B2B infrastructure companies. When many Fintechs neo-banks were launching, they needed to connect to existing bank accounts birthing to focus on account aggregation (Plaid). As these neo-banks scaled, they observed that the LTV (Lifetime Value) of a direct deposit account is much higher than a regular account, and their core user thus payroll infrastructure was born (Pinwheel). As users expanded across geographies, experience the need for global KYC (Know Your Customer) was born (Persona). As audiences were built and brands realized they should issue their own cards, issuing-as-a-service came 11 along (Marqeta). As customer-facing products continue to broaden out, demands for new and service . platform tools expand. Thankfully, FinTech founders today have a deep suite of infrastructure Matan Bar, CEO of Mello to enable them to get to market faster and not waste time reinventing the wheel. next-gen platforms powered by infra point solutions10 Account ID Card issuing Brokerage Direct aggregation veri昀椀cation infra deposit switching For example: For example: For example: For example: For example: Note: Companies referenced are only representative of providers in the vertical and not indicative of any commercial agreements INFRASTRUCTURE IS ENABLING INNOVATION SHARE VISIT PG 07

Each time this happens, the venture community initially responds with TAM concerns. We There is no recall many investors questioning the TAM for Plaid during its early funding rounds. Perhaps that was fair in the early 2010s, when companies like Plaid, Finicity, MX, Quovo and others doubt that the built products for a small number of users. But the quality of their products and the clear trend development of in digitization of 昀椀nancial services ultimately created tens of billions in market cap. How many new brands could possibly want to issue their own cards? We believe it’s now a foregone robust 昀椀ntech conclusion that Big Brands Will Become FinTechs, and the need for infrastructure across many infrastructure has niche categories will be in high demand. Even small niches on the internet, especially when it made it easier to comes to money, are equal to billions of dollars in TAM. build a strong minimum-viable 13 fintech infrastructure market map12 product . Pankaj Bengani, CEO of Meld.io data aggregation payroll/income verification BaaS kyc transaction/fraud monitoring gateway/processors payfac-as-a-service payouts INFRASTRUCTURE IS ENABLING INNOVATION SHARE VISIT PG 08

brokerage-as-a-service payment automation accounting integration loyalty/rewards credit score integration debt management api billing analytics application/doc processing insurance debt infrastructure data science Note: Companies referenced are representative of providers in the vertical and not exhaustive of every player in the space INFRASTRUCTURE IS ENABLING INNOVATION SHARE VISIT PG 09

Customer relationships can be separated from banking infrastructure as the front-end first principles experience is controlled by an entity distinct from the one that owns the balance sheet or the banking licenses. As we think about the future of FinTech In addition to a signi昀椀cant and growing TAM, we think that FinTech infrastructure can be a infrastructure, there are several key great business model that lends itself well to developer-led growth and unit economics that principles that guide our belief in the success of the business. For example, scale with end customers. For example, Marqeta and Plaid sold into Cash App when it was we expect: just an early product inside of Square and presumably their contract size grew in tandem with CashApp’s scale. To round it out, you also tend to see very healthy gross margins as these 昀椀rms bene昀椀t from the scale of integrations and volume breaks. Some fear that consumer Fin- Tech players like CashApp will eventually build this infra layer in-house. While that is always a there will be local winners. possibility, engineering resources are not unconstrained and solving customer-facing issues Successful companies will attempt that are core to their business is likely to take priority. to buy their way into new regions. This historically has not been successful. We have seen that infrastructure businesses have been successful across broad horizontal Understanding local nuance, customer behavior, and the unique regulatory markets organized by end customer and product function. Looking forward, we expect they landscape of each geography is key. will see competition (and this applies to many of the categories in FinTech) in connection with the pursuit of depth within each category as new entrants focus on more narrow verticals. Examples to note in payments occurred when broad-based POS was faced with competition in developers (Stripe), vertical markets (Toast and Shopify), and marketplaces (Uber). api documents are the product. If the documents aren’t Much like the neo-banks that they are serving, we anticipate that these infrastructure world class, developers businesses will be rebundled themselves. Just as many consumers want a one-stop-shop won’t adopt the product. for their bank account, brokerage, and credit cards, we have seen that FinTechs would also strongly prefer to work with one partner that is capable of handling many products. We have started to see attempts of this from some of the largest players in the space, but frankly to date they’ve had limited success. It is very hard to do FinTech infrastructure part time. These it is never an are massively complex problems that are mission critical and require armies of product and overnight success. engineering teams. As such, we predict that we are years away from rebundling, and that Founders and investors much of it will happen inorganically—this stu昀昀 is hard to build and maintain! alike need to be patient during the initial build. The painful backend process is the moat! 14 trust that the tam will develop. It often looks small in the beginning. INFRASTRUCTURE IS ENABLING INNOVATION SHARE VISIT PG 10

Regulation at the Forefront We believe one of the best advantages and toughest challenges in FinTech is managing the regulatory environment. It’s a challenging blocker for startups—products can take years to develop, licenses can take even longer to acquire, and balancing innovation with regulatory risk can be akin to walking a tightrope. Working with regulators and managing compliance is a core function of the business. There is an old adage in Silicon Valley: “Move fast and break things.” We caution FinTechs at every stage to NOT work this way. In fact, FinTech’s version of “move fast and break things” should be “move methodically and respect regulation.” For the last decade, FinTech existed in relative obscurity amongst giant 昀椀nancial institutions 15 that represented $16 trillion in market cap . That has changed dramatically in the last 1-2 years as more regulatory attention has been paid to the industry as it achieved scale. Failures have occurred where overall infrastructure (both tech and people) limitations had not been tested. When this happens at scale, as we have seen recently, it increases the level of scruti- ny to be incurred by one of the many regulatory bodies that oversee the vertical. Moreover, it becomes a clarion call for more attention likely to be focused on consumer protections, disclosures, capital requirements, and licensing. as fintechs rise to compete with incumbents on their turf, they will have to play by the same rules16 A not-too-distant future INFRASTRUCTURE IS ENABLING INNOVATION SHARE VISIT PG 10

Gone are We see part of the challenge being that over the last decade, FinTechs have emerged from relative obscurity to become household names for many consumers within the con昀椀nes of the days of highly arcane rules built over decades by various regulatory bodies. There’s undoubtedly a fundamental con昀氀ict when you’re trying to innovate, but also work within the con昀椀nes of playing fast regulations that were built to force large incumbent 昀椀nancial institutions to operate in a speci昀椀c way. Over the years, we have been approached by countless startups that tell us and loose they can improve underwriting in consumer lending, but have never heard of Fair Lending laws nor know how to manage a balance sheet. Yet others have claimed that they are going with Fintech to do away with overdrafts and late fees, but instead encourage tips which drive APRs that regulations. would make payday lenders blush. In such situations, the product and risk orientations of these large FinTech companies are coming to light and we expect to see a change in reactions in consumer behavior and regulator interest. The decisions at the earliest stage of company building tend to be ampli昀椀ed in these situations. How long did the FinTech wait to add an experienced General Counsel and/or Chief Compliance O昀케cer? Have they ever meaningfully engaged with individuals that have regulatory experience as an advisor or independent board member? It is never too early to be thinking about these questions in 昀椀nancial technology. We strongly believe that FinTech winners will be built by teams that can balance creativity and speed with innovation. The earliest decision needs to be how you’re going to work with the 昀椀nancial regulatory ecosystem and not against it. With creative problem-solvers on the team, a FinTech business can often innovate and evolve through ambiguous “analog-ori- ented” regulation. Compliance can and should be used as a selling point to demonstrate customer quality function (and a value add) to avoid fraudsters, protect customers, minimize public insults, and maximize consumer response to complaints. Gone are the days of playing fast and loose with FinTech regs. The scale is here and everyone is o昀케cially on notice. Company building in FinTech is forever changed and we expect you will see the most strategic and strongest companies leaning into creatively solving regulatory challenges from here on out and pitching it as a strong competitive edge. INFRASTRUCTURE IS ENABLING INNOVATION SHARE VISIT PG 12

Start With Customer Acquisition Once a company’s infrastructure and regulatory frameworks are in place, we suggest that the next place which to turn your attention in FinTech is acquisition. As we have all seen, the acquisition battleground in the sector is 昀椀erce. As demonstrated below, digital advertising spend for 昀椀nancial services since 2016 has nearly tripled to $24 billion. For this reason, we believe that innovative acquisition and retention tactics are nearly as important as the product itself in the early days. The playbook thus far in FinTech is an innovative wedge followed by exceptional engagement earning your way to the ability to cross-sell. financial industry digital ad spend in the u.s. 2016-2021 ($b)17 2021 $24B 2020 $20B 2019 $18B 2018 $14B 2017 $11B 2016 $9B 0 5 10 15 20 25 30 Spending in billion U.S. dollars 18 18 START WITH CUSTOMER ACQUISITION SHARE VISIT PG 13

We wanted to tell our story and build through aspirational content. Step strategically formed partnerships with some of the largest 20 in昀氀uencers 19 Step One is getting the attention of your audience with an eye-catching approach that is in the world... true to the brand. Square Cash’s #CashAppFriday demonstrated the power and traction CJ MacDonald, CEO of Step of this type of approach in consumer FinTech. By harnessing the power of social media, the Square Cash App team got many of their target customers tweeting about the product every Friday in a campaign built to send their users money. Similarly, the most recent version of this has led to what we believe is one of the most impressive launches of a consumer FinTech brand in Step, which has built a platform teaching 昀椀nancial literacy to the next generation. True to its brand, Step has bene昀椀ted spectacularly from TikTok (a channel consistent with the brand and audience!) as well as from campaigns such as $StepSaturdays and #TeamBlue / #TeamPink / #TeamYellow, depending on the color of the card you choose. Another playbook that we see executing well is taking a historically small dollar-cost product and making it free (e.g., bank accounts and credit monitoring). Legacy 昀椀nancial institutions have been very good at marking up basic 昀椀nancial products for a long time and they now depend on the steady cash 昀氀ow from these services. Meanwhile, Chime o昀昀ered its users a no-fee bank account, Revolut gave away cross-border payments, and Melio handed out Automated Clearing House (ACH) payments and checks. The act of giving away something that customers inherently feel like should be free buys businesses an incredible amount of goodwill and immediately signals to consumers that its interests are aligned with the company. When something is free, the top of the funnel inherently comes easier and you position yourself well with consumers to expose, attract them to, and ultimately sell innovative 昀椀nancial products. Companies can use the free product as an acquisition wedge and monetize elsewhere in the value chain. START WITH CUSTOMER ACQUISITION SHARE VISIT PG 14

Once this top of funnel strategy is executed, we suggest turning to engagement. Without engagement (read: retention), the top of funnel e昀昀orts are wasted. Retention takes shape in a single 昀椀nancial product and/or by making money social. The reason everyone is launch- ing a debit and credit card right now is because they are such high-engagement (and LTV!) products. Similarly, peer to peer (P2P) payments are high engagement and social, but unfortunately historically have not monetized well. To date, we’ve seen that chances are that if you’ve nailed top of funnel and one of these highly engaging products, you’re probably o昀昀 to a great start. If you start with a product that has lower single-player engagement, making it a social experience has the ability to create network e昀昀ects within the product. For example, a handful of recent companies have shown that stock trading can be inherently social and companies like CommonStock, Public, and Robinhood have all bene昀椀ted greatly from this trend. The combination of social platforms and 昀椀nancial products has created an active and engaged audience for these products. Each of the brands has its own social meaning and a distinct personality, and that has given rise to a die-hard consumer base that has previously only formed a connection reserved for the most iconic brands. Additionally, product features such as sharing, gifting, and the send/receive functions further amplify the network e昀昀ects of the products. engagement vs ltv for key product lines21 Consumer Credit card Debit card BNPL Brokerage Mortgage Auto insurance Auto loan Home insurance Personal loan Remittance P2P 401K Life insurance Student Loan Savings account Business Business CC POS Instant ACH MCA Checkout/processing Payroll Billpay Business checking Business insurance Low 1 2 3 4 5 6 7 8 9 10High LTV Engagement START WITH CUSTOMER ACQUISITION SHARE VISIT PG 15

google trends for cashapp: interest over time22 Over time, Product launches over time increased customer interest and engagement successful 100 FinTechs $ Company launches have found bitcoin trading for Cash App users a way to Innovating on ‘mode’ of P2P Company begins Delivery: Users can transfer via, expanding outside of continuously text, Bluetooth, and Snapchat P2P with cash card Originally launched with transfers sent to email addresses Cash App for Business improve Launched + Cash Tags launched with referrals engagement. incentive of $1 0 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Note that low LTV or free products don’t necessarily doom the business to permanent losses. You just have to be deliberate about deciding where in the value chain and at what point in the customer experience you are going to try to earn your margin. For example, onboarding with a free digital bank account option could mean that fees are earned with instant deposits or interchange. Additionally, gross margin could be earned on the cost side through negotiations with key vendors that provide the program rails. Over time, many of the successful FinTechs have found a way to continuously improve engagement by adding product features. This is generally driven by a need to make money once the 昀椀rst two pillars of the business have been established. We will examine this rebundling e昀昀ort next. START WITH CUSTOMER ACQUISITION SHARE VISIT PG 16

leading fintechs invest new revenue streams over time: d2c23 P2P transfers No fee bank account Bank account & Roboadvisor with debit card foreign exchange First product Stock trading P2P transfers P2P transfers Stock trading Bank account Credit card Crypto Bank account Debit card Paycheck advance Savings & budgeting Small personal loans Savings Insurance Subsequent products Stock trading leading fintechs invest new revenue streams over time: b2b24 Ecommerce software Restaurant Ecommerce Payment processing POS solution payment processing First product Checkout Online ordering Corporate card POS solution Bank account Payroll mgmt Credit solutions Invoicing Debit card Inventory mgmt Card issuing Banking services Credit solutions Credit solutions Banking-as-a-service Credit solutions Subsequent products START WITH CUSTOMER ACQUISITION SHARE VISIT PG 17

rebundling financial products What does it look like after you’ve launched your 昀椀rst successful 昀椀nancial product? The number of monoline FinTechs out there is endless, and we think the most agile and strategic teams understand this risk. As a result, the playbook has rapidly evolved to leverage your existing customer base to cross-sell additional products. The outcome, ironically, is that the winners are starting to look like… traditional banks. The math behind it is simple. As FinTechs start to make a dent in the $24 billion annual FinTech ad spend, they often discover that they need additional lines of gross margin to cover the customer acquisition cost (CAC). The playbook becomes obvious because it’s necessary. However, getting there ultimately comes back to the question of engagement. We have seen over the last decade a large number of FinTechs, many of which even went public, that failed to successfully execute on their second act. The most important point of commonality that we see amongst these businesses that were ultimately unable to deliver ARPU growth is a lack of engagement on the 昀椀rst product. new product innovations bolster arpu for players25 Annualized ARPU per Customer Annualized ARPU per Customer $50 $64 $40 $56 $30 $20 $48 $10 $0 $40 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 Historically, FinTechs that have shown strong growth and continued development invariably 昀椀nd a way to manage their customer acquisition costs while scaling their LTV over time. There is magic to accomplishing harmony here. The charts above illustrate two FinTechs that have managed successfully to grow their ARPU steadily over time. In the case of Bill. com, revenue per customer has gradually increased with the addition of more seats over time per customer, more services o昀昀ered, and increased usage of the platform. After starting with a base SaaS fee and capturing SMBs and accountants, they o昀昀ered strategic products such as virtual cards, international payments, real-time payments, and more. In the case of Revolut, the company went from providing basic banking services for consumers to providing early wage access, crypto, and even crossed over to o昀昀ering SMB 昀椀nancial services with business bank accounts, money transfers, and expenses. START WITH CUSTOMER ACQUISITION SHARE VISIT PG 18

The outcome When di昀昀erentiated rebundling happens and attach rates are high, it generally will be re昀氀ected in the daily active users/monthly active users (DAU/MAU) ratio. The new is that the products tend to increase engagement and further enable companies to cross-sell additional products, ultimately increasing gross margin per customer. It is in these rare winners are cases that we believe a generational FinTech business can be born. It is this con昀氀uence of factors that drives scale and we believe the ability to dominate across a wide breadth starting to of 昀椀nancial products. look like... As infrastructure services scale, we believe this rebundling will happen with increasing banks. frequency and speed. Now it’s time to think about product. In this section we will walk through what we consider to be some of the most innovative and interesting trends in FinTech today. key revolut milestones26 US 4.7 stars beta 1M+ ratings on Google app store Singapore beta Public Premium Switzerland Metal Australia launch launch launch launch launch Canada beta 2015 2016 2017 2018 2019 2020 Revolt European business Crypto banking Trading launch launch license launch START WITH CUSTOMER ACQUISITION SHARE VISIT PG 19

Alternative Data Provides a Fresh View Into Financial Health Throughout every phase of a customer journey, 昀椀nancial products use varied sources of data as a means to evaluate consumer health. That data as an input has been sourced from credit, banking, payments, payroll, and behavioral data sets. We expect these new data opportunities to open the aperture of analysis and computation to evaluate customers well beyond traditional means. Additionally, they provide real-time analysis of 昀椀nancial health that otherwise has often been missing in traditional credit reporting. credit and fraud signal inputs27 Credit Banking Payments Financial Payments history Balance Number of transactions Total loan balances per day Amounts owed Direct deposit link Credit card diversity Total income and type Length of credit history Number of negative days Number of Behavioral chargebacks Credit mix In昀氀ows and out昀氀ows Phone type New credit Email address We think that currently one of the most powerful applications for alternative data is credit 28. In fact, underwriting. Today, 40% of consumers have an average FICO score below 700 at least 26 million Americans are “credit invisible” (i.e., they don’t have a credit record at all) while another 19 million Americans have a credit record, but no score because their 29 history is too thin or out-of-date . Businesses have no FICO score equivalent. Many traditional lenders generally don’t lend below the threshold of 620 because the probability of default is perceived to be too high. This narrows who is included in the credit system and creates a dynamic where those that need it most are purposefully excluded. ALTERNATIVE DATA PROVIDES A FRESH VIEW INTO FINANCIAL HEALTH SHARE VISIT PG 20

New data sources enable an entirely new risk system based on metrics that have di昀昀erent characteristics than a typical FICO-based analysis, which fails to factor in key 30 indicators such as bank account balance, income, and salary . those metrics enable: real-time analysis of activity that gives a total picture of a borrower drawn a more realistic picture of a borrower’s from multiple sources including 昀椀nancial pro昀椀le behavioral data. Fully integrated data systems enable credit to be reviewed from multiple customer accounts (in昀氀ows) and allow 昀椀nancial products to be right-sized for the transaction, which is one of the most important components to funding appropriately without over-levering. alternative credit data is increasing in use globally31 Local regulations in each geo dictate which data is legally permissible for use in credit decisioning Credit data Credit scoring models Traditional scoring model Credit account Financial e.g. FICO information judgements Mainstream alternative scoring models Utility Other regular e.g. VantageScore payments payments Often unavailable Fringe alternative scoring models Government Shopping e.g. ZestFinance records habits Social Location Web tracking media data ALTERNATIVE DATA PROVIDES A FRESH VIEW INTO FINANCIAL HEALTH SHARE VISIT PG 21

How it’s One of the most illustrative examples of the application of alternative data is Square aggregated, Capital now Square Financial Services (SFS), the SMB lending operations of FinTech player Square. SFS lends to businesses that were previously considered too risky or small, computed o昀昀ering loans as little as $500. As a result, the impact of micro-credit changes the growth trajectories for businesses that had previously been locked out of the 昀椀nancial system. and analyzed This opens up the possibility of an entirely new lending market that has yet to be ad- dressed by traditional banks. The data used by Square to evaluate prospective borrowers will drive looks nothing like the bank-style application process that requires historical tax returns, incorporation documents, and real estate leases. Instead, it measures business velocity advantage. through total sales via its embedded processor, number of payments per day, payment consistency, credit card primary account number (PAN) pro昀椀les, etc. How can alternative data become widely adopted? We believe that continued open access to APIs and the broader trend towards open banking can enable the creation of an ag- gregated data platform that draws signals from broad sets of databases. The proprietary insights can then be drawn from a combination of public and private data. We expect that how it’s aggregated, computed, and analyzed will then drive the advantage, as opposed to just access to the raw signals themselves. alternative data inputs32 ALTERNATIVE DATA PROVIDES A FRESH VIEW INTO FINANCIAL HEALTH SHARE VISIT PG 22

using internal data for financial anaylysis won’t cut it anymore33 Sales data Product reviews Support tickets Financial reports Google analytics User logins Clickstream Salesforce Product catalog internal data Visitors log Marketing spend Store sales CRM Campaign performance Post promotions external data ALTERNATIVE DATA PROVIDES A FRESH VIEW INTO FINANCIAL HEALTH SHARE VISIT PG 23

Critical data Today, we see many apps connecting into foundational financial systems that drive important components of the value chain such as insight and connectivity into both aggregation the consumer’s paycheck and bank account. We think these systems contain important logic to analyze identity as well as consumer ability and willingness to repay. Payroll will likely providers like ADP or Equifax are likely the 昀椀rst companies to know that a consumer lost their job. That data isn’t transported systematically to 昀椀nancial 昀椀les, which means other move us signals become dependent on seeing the direct deposit from your paycheck. We expect improved data infrastructure to broaden and deepen the links to data sources, so much along from so that this type of insight becomes ordinary. As a result, if it occurs, then customers could reap the bene昀椀t of companies’ ability to track and respond to key milestones in siloed their life and corresponding 昀椀nancial journey. platforms Finally, it’s our opinion that in today’s post-stimulus environment, the distribution of to an Cares Act funds, American Rescue Plan Act, and basic government entitlements such as unemployment would be greatly advantaged if data APIs were deployed. Entitlement integrated programs could identify the loss of a paycheck, verify accounts, and disburse right- sized funds all based on data sourced through real-time APIs. Moreover, we believe that system. speed and e昀케ciency of distribution could be dramatically improved from the long lines and system crashes of 2020, while synthetic monitoring systems could be leveraged to review account information and minimize fraud. Critical data aggregation will likely move us along from siloed platforms to an integrated system that combines signals from many data types. The possible applications are end- less—from sales forecasting and lead generation to promotional optimization. To create an advantage, companies will need to consider shifting their analysis to cloud-based systems to enable the combination of customer transactional data with external signals. 34 consumer financial journey: data at each step Student loan First teenage debit for university card for parental allowance Sallie Mae, SoFI Greenlight, Step, GoHenry First job out of college with payroll Car loan account, bank account Carvana, AutoFi Chase, Wells Fargo Wealth investment Home mortage Vanguard, M1 Rocket Mortage, Finance Better.com ALTERNATIVE DATA PROVIDES A FRESH VIEW INTO FINANCIAL HEALTH SHARE VISIT PG 24

Embedded Finance Makes Transactions E昀昀ortless Financial services are increasingly o昀昀ered within digital experiences where customers are already spending their time. The last decade indicated that banks are no longer the durable institutions that center communities. The number of U.S. commercial banks has fallen from 18,000 to below 5,800 over the last three decades35. Banking has moved toward app-based systems and is now happening in the context of where we’re already spending our lives online. Embedded banking means integrating 昀椀nancial services of all types into third-party platforms through APIs. Importantly, customers don’t want the 昀椀nancial service, they want what the 昀椀nancial service enables. Tools like photo capture for check cashing and P2P payments have paved the way to conduct paperless transactions at your 昀椀ngertips in lieu of the antiquated act of “going to the bank.” We have graduated to a new level where many consumer apps are adding banking services and the lines between banking and customer services are further being blurred. You can pay for your Uber and simply leave when the ride ends. There is no cash or credit card activity that needs to happen—it’s automatic. When you’re managing your supply chain in Coupa, instead of leaving the app to pay your vendor, you can spin up a payment right there in 昀氀ow. In our view, the most popular application of embedded 昀椀nance today sits within SaaS. We believe that companies like Square, Coupa, ServiceTitan, Shopify, and Wix have trans- formed their product lines and signi昀椀cantly grown their TAM by o昀昀ering 昀椀nancial products within their software. By leveraging infrastructure from Stripe, Payrix, or In昀椀nicept, or by going direct to WorldPay to become a payment facilitator, these businesses have grown the LTV of their customers substantially. Suddenly, a business goes from o昀昀ering software only to o昀昀ering software, payments, issuing, and lending. for software companies, the evolution from saas 1.0 (software only) to saas 3.0 (fully embedded finance) can expand cltv36 SAAS 3.0 Commerce platform • Saas revenue • Online payments • Point-of-sale payments SAAS 2.0 • Issuing Software platform • Lending SAAS 1.0 • Saas revenue • Instant payouts Software company • Online payments • Software (e.g. billing) • Saas revenue only Embedding 昀椀nancial services improves customer experience and expands CLTV 2-5x EMBEDDED FINANCE MAKE TRANSACTIONS EFFORTLESS SHARE VISIT PG 25

Going down The clear reason for going down this path is that it has the possibility to unlock an untapped opportunity. For example, as shown below, In昀椀nicept estimates that there are this path ~20k software businesses in the U.S. that touch payments and over 200k worldwide. Moving beyond the core software solution will allow these providers to unlock additional unlocks a lines of revenue. massive payment adjacent software opportunity37 opportunity. In昀椀nicept estimates there are ~20k US software platforms that touch the payments function, and ~209k worldwide (segmented as outlined below), resulting in what it considers to be a ~$15b recurring revenue opportunity on a global basis. ISV ISV SaaS Additional products Recurring Tier population mix TAM +50% of annual TAM (thousands) % ($mm) opportunity/ISV ($mm) ($mm) Large & enterprise 21 10% $3,597 $1,799 $5,396 (revenue $50mm - >$250mm) Medium 42 20% $3,754 $1,877 $5,631 (revenue $10mm - >$50mm) Small & micro 146 70% $2,399 $1,200 $3,599 (revenue

Embedded and potentially in the long term fewer deposits held at the banking leaders of today. We are seeing these e昀昀ects cascade 昀椀rst into customer-facing experiences and 昀椀nance will transactions. Deposits have only just started to move from incumbent banks to those banks who service FinTechs, but the long-term trends highlight and suggest a road have a toward a full transformation into banks owned by FinTechs or banks looking like transforming infrastructure utilities on the back-end. e昀昀ect on the coupa has seamlessly embedded payments on to its platform39 traditional banking system. EMBEDDED FINANCE MAKE TRANSACTIONS EFFORTLESS SHARE VISIT PG 27

The outcome of businesses embedding 昀椀nancial products to date has been very pos- itive. We’ve seen valuation multiple expansion across the board, and in most cases a step function improvement in experience for their end customers. One potential consequence that we are spending time studying is the long-term margin pro昀椀le of the underlying 昀椀nancial products. As 昀椀nancial products become more ubiquitous for consumers and enterprises, we fully expect the new issuers to compete on price. By way of example, for a software business that is already enjoying 75% gross margin, there may come a time when it’s perfectly happy o昀昀ering payments or debit cards at cost. Will these products simply be viewed as table stakes and features that are required to compete? If so, these newer FinTechs will need to continue innovating on brand new 昀椀nancial product experiences or else watch their margins be competed out. fintech partner banks have grown deposits faster than average40 Cross River deposits WebBank deposits Celtic Bank deposits Total deposits $M $M $M $T +3,391% 835% +438% +111% 3,039 458 1,050 16 8 49 149 87 2010 2020 2010 2020 2010 2020 2010 2020 Note: Deposits, All Commercial Banks from Board of Governors of the Federal Reserve System (US) as of 3/12/2021 EMBEDDED FINANCE MAKE TRANSACTIONS EFFORTLESS SHARE VISIT PG 28

Digital Payment Acceleration shopify gmv ($B)41 Covid-led inflection 2020 $119B +96% 2019 $61B +49% 2018 $41B +56% 2017 $26B +71% 2016 $15B If we were forced to pick a single trend within FinTech that was accelerated by COVID-19, it would be the digitization of payments. The industry was pulled forward by 5+ years in both B2C and B2B. For consumers, paying with cash became immediately unsanitary and, in many cases, impossible. For businesses, gone were the days with fully sta昀昀ed back o昀케ces opening invoices and licking envelopes 昀椀lled with checks. Even prior to the pandemic, payments businesses tended to outpace other areas of 昀椀nancial services when it came to value creation. It is a category that continues to receive growing interest from VCs in part because its TAM is measured in trillions. DIGITAL PAYMENT ACCELERATION SHARE VISIT PG 29

payments companies continue to outperform other banking Even prior to sectors in value creation42 1 the pandemic, TRS performance of public companies Indexed to 100=January 2009 payments 1,600 businesses 1,400 Payments tended to 1,200 outpace 1,000 other areas 800 600 of 昀椀nancial Asset 400 management services. Retail banking 200 Corporate and investment banking 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CAGR 2009-2021 % 25 2 4 13 Note: Based on an analysis of public companies; custom indices (market-cap weighted) based on identied public European peers: payments N=27, retail banking N=20, asset management N=17, corporate banking N=5; 2019 data as of October; TRS CAGR for Jan 2009-July 2020 payments market size43 In $B USA Global E-commerce $1,000 $4,000 Card-Present Retail $3,000 $17,000 Cash $1,000 $9,000 C2B $5,000 $30,000 C2C $1,000 $2,000 Total Consumer Payments $5,000 $32,000 Digital $9,000 $62,000 O昀툀ine $16,000 $58,000 Total Business Payments $25,000 $120,000 DIGITAL PAYMENT ACCELERATION SHARE VISIT PG 30

If we were comparing growth: u.s. ecommerce vs total retail sales44 Year-over-year growth, 2011-2020 forced to pick a single trend 35% within FinTech 30% 25% that was $20 accelerated %growth15% by COVID-19, 10% it would be the 5% digitization $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 of payments. Ecommerce sales growth Total retail sales growth Note: Total retail 昀椀gures used by Digital Commerce 360 exclude sales of items not normall purchased online such as spending at restaurants, bars, automobile dealers, gas stations, and fuel dealers This sudden acceleration was felt across the ecosystem of payment processing players in addition to a new crop of alternative payment methods such as buy-now-pay-later (BNPL) platforms and new wallets like Shop and Google Pay. This acceleration also drove rapid reter- minalization from analog to digital systems as the pressure to enable contact-less payments and other online features became urgent The small segment of the population that was still used to shopping o昀툀ine is now much more familiar with the online shopping ecosystem. What that has created is a renewed focus on checkout pages—and we’re starting to see experiences like this: 45 DIGITAL PAYMENT ACCELERATION SHARE VISIT PG 31

bnpl checkout page While the adoption of new wallets coming from players like Shopify and PayPal are fairly for affirm47 straightforward, payments have also morphed into new structures. “Tender types” have evolved from cash to credit & debit to new 昀椀nancing features such as BNPL. It is a common misconception to call these players lenders. We’d argue that they look a lot more like payments businesses than originators of consumer unsecured debt. Instead of being held to the con昀椀nes of FICO, BNPL companies are building their own dataset that represents a full 昀椀nancial pro昀椀le of a consumer). increasing investment flowing into the bnpl trend46 $1600 25 $1400 20 20 $1200 19 $1000 15 15 $800 10 # of deals otal funding ($M)$600 T $400 7 5 5 $200 $0 $106 $372 $219 $1,031 $1,465 0 2016 2017 2018 2019 2020 BNPL enables customers to change their relationship with cash 昀氀ow and is often most powerful when it is known that a consumer has 昀椀nancial 昀氀exibility in combination with an unfairly low FICO score. In these cases, the opportunity begins at a consumer’s 昀椀rst checkout enabling a transaction(s) to occur that otherwise would not have, and potentially at a higher average order value (AOV). From there, the consumer is in the ecosystem of that BNPL vendor and a 昀氀ywheel of referrals across other merchants in-network can occur—which sounds a lot like other payment networks we know well. In this new tender type, a consumer pays in four interest-free payments (with a fee paid by the merchant) as opposed to one standard payment with a basic issued credit card. Upon repayment, that consumer can continue to use the BNPL provider across a wide network of merchants who accept it, much like you would with Visa, MasterCard, AmEx, or PayPal in the example below. if this trend continues these players will have built their own rails of credit outside of traditional credit providers. DIGITAL PAYMENT ACCELERATION SHARE VISIT PG 32

In addition to accessing credit at a better rate than traditional credit loan, which is typically one of the biggest areas of stress. During providers, consumers are also now able to think in terms of steady periods of a negative mismatch, consumers are able to take out a monthly payments instead of a lump sum payment. BNPL enables short duration loan. During periods of an overage, consumers can consumers to match their in昀氀ows and out昀氀ows for a broader set of save. The 昀氀exibility of elastic balances enables consumers to have transactions rather than the more static environment of getting a more control in real time over their 昀椀nances. . bnpl value proposition48 Higher conversion Higher AOV +8% +85% +22% +40% +22% +40% +30% +41% +11% +42% number of credit cards and buy now pay later revenue in australia over time49 According to the Reserve Bank of Australia, the number of credit cards in Australia declined by 6.6% in 2019-20, as more consumers turned to BNPL providers rather than credit cards during the COVID-19 crisis 17,000 $800 16,500 $700 16,000 $600 15,500 $500 UD $400 A 15,000 Credit Cards $300 Million $ 14,500 $200 14,000 $100 13,500 $0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Number of credit cards (lhs) Buy Now Pay Later Revenue (rhs) DIGITAL PAYMENT ACCELERATION SHARE VISIT PG 33

As businesses There has been an equal amount of innovation on the B2B side of the payments house. Due to stay at home order during the pandemic, businesses were forced to adapt to a work- were locked from-home environment with increasingly global payment participants almost overnight. Regardless of whether you are an SMB, mid-market, or enterprise business, an inordinate down, the amount of time is spent on accounts payable and invoices. Prior to COVID-19, there were full back-o昀케ce teams processing invoices, 50% of which were paid o昀툀ine as the charts adoption of below demonstrate. digital solutions massive tam with long runway for disruption50 increased B2B Payment Volumes: $120+ Trillion Paper checks are 40% of AR/AP volumes ~ exponentially. X-Border 8% Digital Card-based 17% 52% Domestic 75% AR/AP Check 48% As businesses were locked down, the adoption of digital solutions increased exponentially. This acceleration came in the form of pureplay Account Receivable/Account Payable (AR/AP) solutions and also via embedded solutions in existing software suites such as Tipalti, Shopify, and Coupa. Making the situation even more complex, companies accelerated their push into new international territories with their customers, partners, and employees as Zoom meetings opened up the world. Software platforms can serve global customer bases. However, integrating payments into an existing suite has ampli昀椀ed the need for cross-border payments solutions. While technology has completely upended the market for goods and labor, we believe that cross-border 昀椀nancial products have not kept up. Shifting focus brie昀氀y to the consumer side of the equation, while remittance volumes have increased over time and make up a signi昀椀cant source of income for some countries, the process is still high-friction for consumers, with a few digitally-native players winning market share by seeking to simplify and speed up this process. DIGITAL PAYMENT ACCELERATION SHARE VISIT PG 34

global remittance flows51 900 ($ billion) FDI 700 500 Remittances 300 Portfolio debt 100 and equity flows ODA -100 1 1 f f 0 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 e 1 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 1 1 1 1 9 0 2 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 1 2 0 1991 1994 1997 2 2 2 2 2 2 2 2 2 0 0 1993 1998 2 2 1992 1995 1990 1996 1999 2 2 2 2 2 2 2 2 2 2 Note: Remittances to Low- and Mid-Income Regions have seen a steep pandemic-fueled decline from the previous high of $531B in FY19 top remittance recipients in 202052 76B ($ billion, 2020f) 40% 38% (Percentage of GDP, 2020f) 36% 35% 60B 26% 25% 41B 23% 22% 21% 21% 33B 24B 24B 21B 20B 16B 14B a o s p a a ti n c r s o ia m i i o d ic e tan ri sh ine g an tan bl d a h In ine R ts de tna ra n Ha ud is u epal a ex p i ge o dur sot Chin b i ie k T S p N lv n e M a ak N gla V U ebano h ajik e a o L hilip Ar P L t T R S H P t, an z l B Sou gy E gyp yr E K DIGITAL PAYMENT ACCELERATION SHARE VISIT PG 35

Technology marketplaces for work are no longer limited by national borders53 has completely upended the market for goods and labor. share of international vendors across key supply chains is growing over time54 16% 14% 12% 10% 8% 6% 4% 2% 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 % Share of international suppliers across merchant supply chain DIGITAL PAYMENT ACCELERATION SHARE VISIT PG 36

Payments We continue to believe that one of the most powerful accelerants for this global aggregation of supply is cross-border B2B payments technology. Thousands of major and Payroll marketplaces and enterprises are currently seeking a global supply of goods or labor, will transcend which currently drives trillions of dollars in these types of payments per year. Our opinion is that this phenomenon will enable massive global scale economic empowerment of borders. consumers and businesses, and further will accelerate the trend and need for reliable cross-border payments. larger cross border payments take place via wire transfers vs smaller depend on e-wallets55 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 50k $200 $400 $600 $1.25k $3.5k $9k $11.5k $16k $25k $50k Check eCheck Paypal WireTransfer In the future, we imagine a global marketplace where companies and consumers can seamlessly move and transact across the globe. Thus, we believe that the demand for borderless wallets will increase as bank accounts transcend geography. Companies will need to make payments and drive payroll across regions as business transcends borders. The pandemic-driven move to work-from-home has extended this need from large corporate enterprises all the way down to startups and gig workers. DIGITAL PAYMENT ACCELERATION SHARE VISIT PG 37

rise of platforms that manage international payroll56 t Founded 2018 2016 2018 2015 2019 2015 ou b A Geo Germany NYC/Israel San francisco SF SF Estonia Total raised ~$1M $191M $205M $161M $46M $9M g Seed $100M Series C $156M Series C $100M Series C $35M Series A $7M Series A din Last round (May 2019) (Mar-21) (Apr-21) (Apr-21) (Nov-20) un F Greenoaks, Scale General Catalyst, Investors Atlantic Labs Venture Partners, Spark Capital, Sequoia, Stripe, Index, Sequoia, Karma, vc, amongst others Insight, Bessemer A16z Index Ventures, Two Sigma, Leap Ventures amongst others amongst others amongst others amongst others amonst others This market is characterized by extreme complexity of payment see that expenses, however, still remain highly fragmented. types, legal structure, licensing, taxes, and settlement. With this Players tackling these problems are starting to emerge and get level of complexity comes opportunity, as there is signi昀椀cant to scale—a few examples include Tipalti in the enterprise space, dollar value in any market that is managed in in silos. Automation Payoneer for SMBs, and Wise for consumers. started solving for revenue with automated POS systems. We . rise of platforms that manage international payroll or payouts57 Bank transfer iDEAL, SєPA Digital Wallet Alipay, WeChatPay, Grab 77% Cash payment OXXO, Paysafe:cash 23% schemes International Local payment card schemes methods Local card Mastercard, Visa, Bancontact schemes Deferred credit Klarna., Divido schemes DIGITAL PAYMENT ACCELERATION SHARE VISIT PG 38

B2B and B2C B2B and B2C payment players are both dependent on monetization through interchange. If you have been in and around payments for long enough, you have heard voices in some payment countries talking about interchange going away. Today is no di昀昀erent, and there are a few players are factors amplifying those voices in this environment: both Some local governments (such as India and Brazil) are acting swiftly to dependent on reduce the cost of interchange on their populations monetization In the heat of competition, startups are giving interchange back to merchants through and consumers in the form of acquisition spend interchange. People are increasingly feeling like moving money should be costless as they are conditioned by other free products in FinTech DIGITAL PAYMENT ACCELERATION SHARE VISIT PG 39

while some sound the alarm for a Cryptocurrency Advances to the Mainstream bubble, those deep in the space view crypto as an inevitability61 Remember all of those prior headlines focused on shady crypto mining operations, criminals pursuing nefarious transactions, and sketchy token schemes? Now fast forward past the last 昀椀ve years of peaks and troughs. Cryptocurrencies have moved from an expert fringe interest to a market sensation that we think will continue to grow in legitimacy and is likely to grow exponentially. Bitcoin and Ether hit an in昀氀ection point of acceptance in 2020 and blockchain technologies became integrated into many operational functions. As of November 2020, the number of private addresses on Bitcoin reached an all-time high of 25.6 million58. The level of dai- ly active addresses reached 1.4 million in April 2021, highlighting the more active engage- ment within the network59. We are also seeing the percent of Bitcoin supply being held for longer periods of time. Note: This is just one person’s opinion, not representative of the whole and should not be taken as an endorsement of these views bitcoin price over time60 Bitcoin Price $622B+ $80k Market Cap $60k $40k $20k $0.00 2014 2015 2016 2017 2018 2019 2020 2021 We believe as the market matures, we are moving away from speculation being the main driver of the market for consumers. Apps that enable consumers to hold crypto as a store of value are becoming so sophisticated that consumers can now buy crypto with a quick credit card transaction. Moreover, stablecoin wallets are in demand not only with consumers, but with institutions as well. CRYPTOCURRENCY ADVANCES TO THE MAINSTREAM SHARE VISIT PG 40

headline We are starting to see an in昀氀ux in the number of larger holders and institutional accounts that are holding bitcoin as a treasury asset. We’ve recently witnessed the introduction of Square, Inc. (NYSE: SQ) crypto ETFs. Institutions have o昀케cially started moving their asset allocations to Bitcoin announced today and institutional custodians like NYDIG and Coinbase are focused on serving this large that it has purchased institutional demand 62. Going forward, we don’t think people will be highlighting the one-o昀昀 approximately 4,709 investments that corporations are making with brave treasury teams, but rather we believe bitcoins at an aggregate we’ll see the asset mature to become a broad-based core feature in 昀椀nancial functions. purchase price of $50 million...The investment We expect that we’ve only scratched the surface for the number of Bitcoin’s use cases as a represents approximately native currency on the internet. We now take it for granted that email can be exchanged 1% of Square’s total interoperably. We expect that we will soon also take for granted that money can be sent assets as of the end of interoperably on the internet. 63 the second quarters . We are also witnessing “decentralized 昀椀nance” (DeFi) make its way into common parlance as an umbrella term for applications of cryptocurrencies geared towards disrupting traditional 昀椀nancial intermediaries. The DeFi applications are executed on a blockchain, independent of control from any single entity, in the hope that they make our 昀椀nancial system more resil- ient and transparent. DeFi crypto market cap has increased from $2 billion in January 2020 64 to $126 billion in April 2021, highlighting the momentum behind this trend . “Non-fungible tokens” (NFTs) are also starting to proliferate as creators release the 昀椀rst generation into nascent bidding platforms such as Rally. 65 Note: This is just one person’s opinion, not representative of the whole and should not be taken as an endorsement of these views CRYPTOCURRENCY ADVANCES TO THE MAINSTREAM SHARE VISIT PG 41

headline defi is building traditional financial infra for crypto67 PayPal has entered the Traditional Finance DeFI/Blockchain Equivalent cryptocurrency market, announcing that its Loan marketplace Cryptoasset Capital Markets customers will be able to Lend and borrow crypto at algorithmically-determined rates buy and sell Bitcoin and Regulated Exchanges Decentralized Exchange (“DEX”) other virtual currencies “Trustless” algorithmic exchange for cryptoassets using their PayPal accounts. Those virtual Financial Derivatives Trustless Derivative Contracts coins could then be Create smart contract-enforced derivatives contracts used to buy things from the 26M sellers Payment Netowrks Payment-Adoption Focused Projects which accept PayPal, Improve e昀케ciency and expand o昀툀ine access for ERC tokens it said. All could be stored “directly within the PayPal digital wallet,” the company said66. 68 As a result, we think applications to support the crypto community will also become mainstream, routine, and simple. Tax, accounting, and custody are examples of functions which need specialized support. 68 CRYPTOCURRENCY ADVANCES TO THE MAINSTREAM SHARE VISIT PG 42

Finally, we expect volatility in the digital asset market to increase preparation for tax season, the Internal Revenue Service estab- with additional government scrutiny and regulations. The last few lished its guidance on reporting cryptocurrency transactions. years brought about the advent of a regulatory infrastructure: Bit Outside the U.S., Singapore, one of the most progressive sovereigns Licenses started in 2015 in New York; the Federal Reserve said 69 towards crypto, is directly funding blockchain projects while China they are considering a potential digital analog for the dollar; and in 70. has made blockchain adoption a state priority . 71 evolution of crypto regulation over time june march january may may 2018 2020 2021 2021 2021 The SEC’s o昀케cial says China Launches Anchorage becomes China banned 昀椀nancial U.S. Treasury that bitcoin and ether are Blockchain-based Service the 昀椀rst cryptocurrency institutions and payment Department seeks to not securities but that Network (BSN)- one of the company to receive a companies from providing have cryptocurrency many, but not all, ICOs are 昀椀rst blockchain networks federal charter from services related to crypto- transfers above $10k securities and will come to be built and maintained the OCC currency transactions and reported to IRS under the regulatory by a central government- warned investors against control of the SEC and in 100 Cities speculative crypto trading relevant securities laws june march january may 2019 2020 2021 2021 FATF Recommendation SEC wins injunction OCC approves use of Federal Reserve Board 16 issued requiring Virtual against Telegram block- stablecoins for banking Chair announced that Asset Service Providers chain launch in key ICO transactions the Federal Reserve will (VASPs) to share Personal case as judge deemed get more involved in Identi昀椀able Information that the SEC was likely to cryptocurrency and may (PII) and Know-your-cus- succeed in proving that even create its own digital tomer (KYC) data be- the blockchain’s developers currency down the road tween transacting sender engaged in the sale of and receiver users before unregistered securities executing the transaction. Note: Please note that this graphic is not exhaustive but only indicative of the notable regulatory events over this period headline Paul Tudor Jones Letter - May 2020 “The most compelling argument for owning Bitcoin is in the coming digitalization of currency everywhere, accelerated by COVID-19, Bull markets are built on an expanding universe of buyers. Central to the price of Bitcoin is how many more (or less) owners of Bitcoin will there be beyond the 60M who currently own it... Something 72 appears wrong here and my guess is it is the price of bitcoin” . CRYPTOCURRENCY ADVANCES TO THE MAINSTREAM SHARE VISIT PG 43

headline NEW YORK (Reuters) - Online brokerage startup Robinhood plans to launch commission-free crypocurrency trading, the company said on Thursday, riding a wave of interest from retail investors for the new asset class. Starting in February, Robinhood customers will be able to buy bitcoin and ether, the two most popular virtual 73 coins . In December, FinCEN (U.S. Treasury) proposed rules for crypto transactions that quickly 74. The goal stated in these rules was to “protect received backlash from market participants national security, assist law enforcement and increase transparency while minimizing the impact on responsible innovation.” The reality of this proposal was that it would cause cryptocurrency service providers to report on transactions with far more detail than is required by cash transactions today. May 2021 brought with it a fresh set of crypto regula- tion—and accompanying price volatility—as the United States mandated that any transfer of cryptocurrency assets worth $10,000 or more to be reported to the IRS while China banned payment companies and 昀椀nancial institutions from providing services related to cryptocurrency transactions. We have a long and winding road ahead as regulation in this space matures with the industry and while there are many unknowns, we do expect to see increasing regulatory clarity and parity between the digital assets ecosystem and traditional 昀椀nancial system. With increased regulation often comes volatility in the near term and stability in the longer term as many questions regarding reporting, compliance, and tax implications are 昀椀nally answered. CRYPTOCURRENCY ADVANCES TO THE MAINSTREAM SHARE VISIT PG 44

Bringing It to a Close We believe all the changes we have talked about in this paper and observed in the world are inexorably moving the FinTech ecosystem toward a more open architecture. As FinTech infrastructure has 昀氀ourished, it has decoupled the consumer brand from the capital source. We are now seeing an explosion of FinTechs driving underwriting and product innovation to meet the needs of heretofore underserved or underserviced communities while leveraging the balance sheets of capital providers that are freed from the burden of investing millions into developing their own brand to secure product distribution. While we are unsure what exactly the future is going to bring, we feel con昀椀dent in our opinion of the direction in which it is headed. We Think We’ll See 5 Key Changes in FinTech: New cohort of consumer-facing FinTechs take over distribution Consumer FinTechs have captured signi昀椀cant attention with simplicity and elegance, and they have also eclipsed the scale of most banks. Moreover, the rise of FinTech infrastructure players has lowered the barriers to launching a consumer FinTech company, adding to the proliferation of consumer-facing FinTechs. New entrants in the banking space become fast-growing sources of capital New entrants are not obliged to spend millions on brand-building to compete with banks that have a large consumer presence, like BofA and Wells Fargo, as they can now rely on FinTechs to scale distribution. This has allowed little-known regional banks to see explosive deposit and loan growth. New categories of consumers are better served We are seeing the beginnings of a more inclusive 昀椀nancial ecosystem as this explosion of consumer FinTech players tap into the economic potential of heretofore underserved segments. Vertical neobanks – for instance, those targeting immigrants and thin-昀椀le consumers - are bringing new consumers into the 昀椀nancial fold with a focus on building long-term 昀椀nancial health. New categories of B2B are eliminating friction We expect that B2B FinTechs will remove friction from the underserviced. We have long tolerated extensive settlement dates, costly FX, multiple payment methods, and complexity with international payments. We expect innovation to eliminate friction and invent elegant experiences similar to consumer-based ones. Cryptocurrency will 昀椀nd use cases that enable broader market acceptance We expect that cryptocurrency will enable payment systems to interoperate seamlessly and 昀椀at will begin to replicate many features of crypto. Today crypto still feels like a solution in search of a problem, but that seems like a temporary concern as use-cases continue to evolve. BRINGING IT TO A CLOSE SHARE VISIT PG 45

future of fintech75 originators of type of capital sources financial products financial products consumer Debit card A昀툀uent consumers Student loan Large enterprise Mortgage n Auto loan e th Brokerage Debit card Large enterprises Student loan A昀툀uent individuals Mortgage SMB businesses Auto loan Credit Builder Freelance/Gig-workers ow Buy now, pay later Thin-昀椀le consumers n Teen Bank Account Underserved communities Instant ACH s lt u better better more more s banked e rate for experience choice for r products consumers consumers population BRINGING IT TO A CLOSE SHARE VISIT PG 46

sources 1. Google Image Search as of April-21, Publicly Available Company Information 38. Credit Suisse Research: “Stripe - Payment Facilitation and Beyond... The as of April-21; For Illustrative Purposes Only Next Frontier Monetization” as of October-20, Stripe Website; For Illustrative 2. For Illustrative Purposes Only Purposes Only 3. For Illustrative Purposes Only 39. Coupa Pay Website as of February-21 (https://www.coupa.com/products/ 4. Analysis based of Bloomberg and CapIQ as of February-21. For Illustrative pay/); For Illustrative Purposes Only Purposes Only 40. FDIC website as of March-21, St Louis Fed as of March-21; For Illustrative 5. Analysis based on Bloomberg and CapIQ as of February-21. For Illustrative Purposes Only Purposes Only. Calculations were made assuming that FinTech market cap 41. For Illustrative Purposes Only (including private VC-backed companies and innovative public companies 42. 2020 McKinsey Global Payments Report as of October-20 like Square and Adyen can scale up to the size of global legacy 昀椀nancial 43. E-marketer as of December-21, Digital Commerce 360 as of January-21, market cap as tech-led distribution grows across verticals over time. Fortunly as of February-21, Statista as of February-21, Trade Gecko as of 6. CapIQ analysis as of March-21 March-21, Keybanc Payments Primer as of July-10; For Illustrative Purposes Only 7. CapIQ analysis as of March-21 44. Digital Commerce 360 and US Department of Commerce Data as of Febru- 8. Respective Company Websites as of April-21; For Illustrative Purposes Only ary-21; For Illustrative Purposes Only 9. Respective Company Websites as of April-21; For Illustrative Purposes Only 45. JDSports checkout page as of February-21; For Illustrative Purposes Only 10. Cashapp App Screenshots as of April-21; For Illustrative Purposes Only 46. CBInsights as of March-21 11. Direct quote from Matan Bar, CEO/Founder of Melio, as of February-21 47. Sample checkout page with an A昀케rm BNPL option as of June-21; For Illustrative 12. Categorization based on description of services provided as set forth in the Purposes Only applicable public websites as of April-21; For Illustrative Purposes Only 48. Estimates are based on publicly available information from company websites 13. Direct quote from Pankaj Bengani, CEO/Founder of Meld.io, as of February-21 as of April-21; For Illustrative Purposes Only 14. Twitter screengrab as of February-21 49. CBInsights as of March-21; For Illustrative Purposes Only 15. Analysis of CapIQ Data as of March-21 50. Visa Investor Day 2020; For Illustrative Purposes Only 16. Headlines from news articles in Bloomberg as of March-17, Fortune as of 51. World Bank-KNOMAD Sta昀昀 Estimates, World Development Indicators, March-21, NPR as of February-20, Compliance Week as of October-20, De- International Monetary Fund (IMF) Balance of Payments Statistics, Migration cember-20, Fenergo as of August-20, The Block Crypto as of November-20, and Development Brief as of October-20 Reuters as of June-20, Forbes as of January-21, Forbes as of January-21 52. World Bank Sta昀昀 Estimates, World Development Indicators, IMF Balance of 17. Statista Research Dept as of January-21 Payments Statistics, Migration and Development Brief as of October-21 18. Charli D’Amelio as featured in Step Marketing Materials as of February-21 53. Upwork Website as of April-21; For Illustrative Purposes Only 19. Direct quote from CJ MacDonald, CEO/Founder of Step, as of February-21 54. Tipalti company data as of February-21; For Illustrative Purposes Only 20. Twitter screengrab as of February-21 55. Tipalti company data as of February-21; For Illustrative Purposes Only 21. Categorization is based on analysis of various 昀椀nancial products and their 56. Pitchbook data as of April-21; For Illustrative Purposes Only ability to drive LTV and engagement i.e. on the high end of the scale, we have 57. Credit Suisse: “If Software is Eating the World...Payments is Taking a Bite” products like the credit card that drive both high consumer engagement and as of January-20; For Illustrative Purposes Only large customer lifetime values (LTVs) and on the low end of the scale, we 58. The Power of Bitcoin’s Network E昀昀ect, NYDIG as of November-20 have products like the savings account that score low on both metrics; For 59. Coinmetrics.io April-21 Illustrative Purposes Only. 60. CoinGecko as of 14-April-21; For Illustrative Purposes Only 22. Google Trends, Square Press Search as of April-21; For Illustrative Purposes 61. For Illustrative Purposes Only Only 62. Institutions at Heart of Latest Bitcoin Market Movement, Nasdaq as of 23. Product descriptions and products are based on publicly available information February-21 from company websites as of April-21 63. Square, Inc. Invests $50 Million in Bitcoin, Square Press Release as of October-20 24. Product descriptions and products are based on publicly available information 64. Top DeFi Tokens by Market Capitalization, CoinMarketCap.com as of April-21 from company websites as of April-21 65. Twitter screengrab as of February-21; For Illustrative Purposes Only 25. Square Annual Reports FY20, PayPal Annual Report FY20; For Illustrative 66. PayPal allows Bitcoin and crypto spending (BBC as of October-20); For Illustra- Purposes Only tive Purposes Only 26. Product descriptions and products are based on publicly available information 67. Product descriptions and products are based on publicly available information from company websites as of April-21 from company websites as of April-21; For Illustrative Purposes Only 27. Categorization based on observed data inputs used across 5 key categories of 68. Taxbit Web and App Screenshots as of March-21; For Illustrative Purposes data: Credit, Banking, Payments, Financial, and Behavioral data; For Illustrative Only Purposes Only 69. Singapore’s government launches blockchain innovation program with $8.9 28. Experian as of February-20 million in funding, TechCrunch as of December-20 29. Consumer Financial Protection Bureau, as of July-20 70. President Xi Says China Should ‘Seize Opportunity’ to Adopt Blockchain, 30. myFICO.com, as of March-21 Coindesk as of October-19 31. Knowing the Score: New Data, Underwriting, and Marketing in the 71. The Regulatory Bodies that Matter for Crypto SFOX as of November-19, Consumer Credit Marketplaces (Robinson+Yu as of October-14); Regulations & Governance Frameworks as of June-18; For Illustrative For Illustrative Purposes Only Purposes Only 32. Explorium data screen as of February-21; For Illustrative Purposes Only 72. Paul Tudor Jones May-20 Letter to Investors, Seeking Alpha as of May-20; 33. Explorium data screen as of February-21; For Illustrative Purposes Only For Illustrative Purposes Only 34. Analysis based on milestone 昀椀nancial events over a customer’s lifetime 73. Startup Robinhood to launch commission-free cryptocurrency trading, and illustrative vendors in each vertical that service the customer need; For Reuters as of January-18; For Illustrative Purposes Only Illustrative Purposes Only 74. 7kn Comments and Counting: Crypto Industry Fights ‘Arbitrary’ Treasury Rule, 35. American Banker, as of October-17 Coindesk as of January-21 36. Credit Suisse Research: “Stripe - Payment Facilitation and Beyond... The Next 75. Analysis based on observed changes in the 昀椀nancial landscape in recent Frontier in Saas Monetization” as of October-20; For Illustrative Purposes Only years as providers and types of FinTech products have proliferated, allowing 37. Credit Suisse Research: Credit Suisse Payments Innovation Event Series as of previously under-served demographic segments to be better served by the December-20, In昀椀ncept Research; For Illustrative Purposes Only industry; For Illustrative Purposes Only. SOURCES SHARE VISIT PG 47

jacqueline d reses Jackie is the CEO of Post House Capital an investment 昀椀rm focused on building tech-enabled 昀椀ntech and ecommerce businesses. Prior, she ran Square Capital, part of Square Inc. Square Capital o昀昀ers banking products for small businesses which have previously been excluded from traditional sources of capital and services. She also was the Executive Chairman of Square Financial Services, a recently approved FDIC insured bank owned by Square and the 昀椀rst industrial bank in the US started by a technology company. Prior to Square, Jackie was the Chief Development O昀케cer for Yahoo and the head of the US media group at Apax Partners, one of the largest global private equity 昀椀rms. Jackie also spent seven years at Goldman Sachs in mergers and acquisitions and the principal investment area. Jackie is Chairman of the Economic Advisory Council of the Federal Reserve Bank of San Francisco and the Board of Advisors of the Wharton School of the University of Pennsylvania. She also serves on the boards of A昀케rm, Nubank, and Wish (Context Logic) and other private companies. Jackie received a bachelor’s degree in economics with honors from the Wharton School of the University of Pennsylvania. michael b. gilroy Michael B. Gilroy is a General Partner at Coatue and co-leads the FinTech practice. Coatue is one of the largest dedicated technology funds in the world with more than $45 billion in assets under management. Michael has been investing in and advising technology companies his entire career. He previously led rounds and/or served on the boards for Bond (banking-as-a-service), Bitso (LatAm crypto exchange), Cloudwalk (latam merchant acquirer), ContentSquare (user analytics), Hugo Insurance (non-standard auto insurance), Meld (昀椀ntech meta-layer), Melio Payments (SMB payments), Mercury (business banking), Pinwheel (payroll infrastructure), Quanto (open banking infrastructure), and Step Financial (banking for teens). He incubated Bond and Meld.io. Michael was investor and on the boards of Arbor (marketplace for people-based data) and Beam Solutions (AML / KYC compliance) prior to their acquisitions by Acxiom and Jumio respectively. Michael is very passionate about building the 昀椀ntech community. In 2015, he created a bi-coastal quarterly series called FinTech Central. Michael studied Economics at the University of California at Berkeley. He was awarded Young Alumni of the Year in 2017 for his e昀昀orts in building out the alumni community in tech. saanya ojha Saanya is an investor at Coatue based in Silicon Valley where she focuses on FinTech and invests in companies across their lifecycles. Coatue is one of the largest dedicated technology funds in the world with more than $45 billion in assets under management. Saanya has invested in companies, including but not limited to Bharatpe (Indian SMB credit), Bond (banking-as-a-service provider), Cloudwalk (Brazil-based Merchant Acquirer), Cred (Indian consumer 昀椀ntech), M1 Finance (consumer investment and savings platform), Melio Payments (SMB payments), Mercury (business banking), Pinwheel (payroll infrastructure), Quanto (open banking infrastructure), Step Financial (banking for teens), and has also incubated Meld.io (FinTech meta layer.) Prior to Coatue, Saanya was at Goldman Sachs Investment Partners, where she started her career as a hedge fund analyst focused on global long-short equity, before eventually following her interest in company-building to transition to the Private investment team. She previously worked at the Quantitative Analytics team at JP Morgan, helping develop capital risk models for Basel III compliance. Saanya graduated summa cum laude from the Huntsman Program at the University of Pennsylvania with a BS in Economics from the Wharton School and a BA in International Studies from the College of Arts and Sciences. CONTRIBUTOR BIOS SHARE VISIT PG 48

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