Michael Saunders, Managing Director, Digital Consumer Payments

7th October 2014

Barclaycard has a heritage of innovation, and continues to push the boundaries in payments

Chip & Pin

Online

2000

2010

1966

2013

Contactless pioneers>18m UK contactless Barclaycards & Barclays debit cards>180k enabled terminals across UK

PayTag and PayBand

Barclaycard Ring

>1m mobile payment devices

>1m customers

bFlex flexible, instant credit

Barclaycard Anywhere Mobile

payment acceptance in UK

Mobile & social

Pay your way

Transport for London

contactless payments

bPay wearabledevices

Contactless is growing in the UK

Step change growth - 100x in the last four years and still continuing to

grow

Retailers rolling out nationally – over 300k places to pay via contactless

20,000,000+

TfL journeys so far

Apple PayDrive to mobile

payments

Averaging over 100k transactions per day on TfL

Key market drivers in technology and acceptance

DebitCredit

Bank AccountPrepaidEtc . . .

We’re launching bPay as an open market payment product, beginning initially with wearables

Form

Fact

or

Fun

din

g S

ou

rce

Focus on combinations that can achieve market wide scale

and ubiquity provide incremental

benefits to both merchants and consumers

generate strong returns

Mag StripeChipContactlessQR & Bar CodedOptical recognition

Become increasingly embedded into peoples’ lives

Enable things people wear and carry everyday to pay

Value added shopping services

Wearable's offer strong consumer utility

NFC is used across non payment applications

Cash displacement is here particularly in youth segments*

Why are we launching with wearable's

Wearable's offers a strong consumer proposition allowing us scale adoption prior to e-com launch• Half of young Britons use

credit cards for good costing less than £2

• Three in four 16-24 year olds use cards for payment under £5

• NFC used across transport and closed loop access systems

• Enables access, ID, transport and social posting

* Source Pennies charity survey

• Customers show high levels of satisfaction in Pay band tests

• Strong feedback for use beyond test environments

Initial distribution of wearable's

Access

“I need it to get in”

Affinity

“I love it”

Attributes

“it makes my product better”

Transit Gyms Festivals

Campus

Fashion

Charities Sports Teams

Retail

Fitness Bands

Smart Watches

Biometrics

Customer Experience: Football

What have we learned in 2014

Strong demand New Consumer Base

Media interest

Persistent use

Social engagement Maker movement