From Illusion to Reality:

“Turning the World into a Practical E-Global Mall”

Introduction:

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“Witnessing Cross-Border Successes Daily, Allows Vantiv & Credorax to ‘Knowledge-Share’ with other U.S. Industry Players Looking to Slice off a Piece of the Lucrative Global E-Commerce Pie”

• 85% Cross-border transactions from 188 different countries

• Merchant Acquiring Banking licenses in Europe, Asia & U.S.

$1.316 Trillio

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Limitless Global Opportunities

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© 2015 Vantiv, LLC. All rights reserved.5 05/01/23

United States Vs. Global Markets

Projected eComm Sales for the 10 Largest Markets

Others Countries Among Top 10United States

E-commerce sales volume growing at ~12% annually

ROW combined growing at over 17% each year

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© 2015 Vantiv, LLC. All rights reserved.6 05/01/23 6N

Top 10 Markets by 2020

$1.8T

(China)

$700B(U.S.)

$141B

(Japan)

$134B

(Germany)

$166B(UK)

$67B(France)

$63B(Canada)

$47B(Russia)

$36B(Brazil)

$62B(S. Korea)

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© 2015 Vantiv, LLC. All rights reserved.7 05/01/23 7NR

Market Assessment: Hype Vs. Reality

• 1% shop online and only 2% will by 2020

India

Brazil

• Low cross-border shopping online

• Very complex regulatory env’t

• Very rapid move to online channels with 13% increase year-over-year

• Among the most frequent online shoppers in world

• Similar payment method mix to U.S.

HYPE REALITY

Germany

UK

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Turn Yourselves into the ‘Go To’Cross-Border PSP for Your Merchants

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STAGE 1: Transparent Assessment“Be a Transparent ‘Go Global’ Advocate for your Merchants, Because it May Not Work for All”

Assessment Audit For Your Merchants: •Will Your Product Appeal Beyond U.S. Borders?•Do You Have Cultural/Language In-House Expertise?•Will ROI outweigh the Financial Investment Necessary?•Can Your Web Site adapt to Local Requirements?•Have You considered Supply Chain Requirements? •Do You have the Resources to Continue to Nurture Local Longevity (post market launch)?

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STAGE II: Local EU Business Entity – A Must!

“Help Your Merchants Find the Right Partners to Set Up a Local

Entity”

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STAGE III: Pick the Right Acquirer

“Selecting the Right Merchant Acquiring Bank Can Make or Break Your Cross-Border Success”

PSP Acquiring Audit:•Local EU Banking Licenses•Understands Complex Regulatory Environment•Local Offices: Cultural/Language Natives•Can Seriously Reduce Banking & Exchange Fees

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Be Aware:When Selecting An Acquirer, Make Sure You are Fully Aware of the Challenges & Solutions

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Choosing the Right Merchant Acquiring Bank

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Complex Reality of Going Global

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Front End(authorizatio

n) Integration

Supportand account management

Reportingharmonizatio

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On-boardingand KYC cost

Back Office(funding andsettlement)integration

45-150Kper acquirer6-10 weeks

30-40Kper acquirer

per year

20-100Kper acquirer

per year

2-15Kper retailerper acquirer30-60 days

350-500Kper acquirer6-12 months

Source: Consult Hyperion 2015

High Up-Front Costs for Multiple Merchant Acquiring Bank

Integrations

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New Entrants, Consolidation Lead to Reduction in Dependencies

POS Terminal

s

Billing

Accounting

e-Com Solution Provider

s

Banks

CardSchemes

LogisticsPSPPayment Service Provider

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OVERVIEW CHALLENGESIndustry: Computer games - MMO ‘free-to-play’online action games (iWorld of Tanks)

Customer Profile: •Revenue: Exceeding €200 million•16 global offices/development centers•140 million international online users Location: HQ in EU. Global traffic including from U.S., Asia & EU (occasionally)

Reduce number of global-local

acquirers

Minimize revenue loss from card

declines

Decrease online fraud incidents

SOLUTIONAward Winning Alliance Global Unified

Acquiring Platform

Multiple bankinglicenses

Consultative account management

ePoweradvanced technology

Approval rate analysis & optimization

Customized fraud management reports and processes

Credorax WireCapital

Exemplary ‘True’ Global E-Commerce

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RESULTSStrengthened ROIvia approval rates

* Quarter Avg.

Increased processing volume

CountriesWorldwidein 2015 witha single acquirer

Processed card transactions from

Jan 2015

Dec 2015

200%

6.3%Approval Rate

83%above benchmark

125

Achieved maximum scalability

Fraud Drastically Decreasesover 1% Decrease during 2015

Chargebacks: Consistently Low

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STAGE IV:Ongoing “Reality Check, One SizeDoes Not Fit All”

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I may not have the I may not have the answer, but I’ll find answer, but I’ll find it,it,I may not have the I may not have the time, but I’ll make time, but I’ll make it.it.Client Client AdvocacyAdvocacy

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© 2015 Vantiv, LLC. All rights reserved.21 05/01/23

FOCUS I: Fraud Mitigation Strategies

• General Rule:“The nature of payment fraud—and techniques to counter its impact—widen outside the U.S.; Fortifying yourself prior to entering high-risk markets is imperative”

• Merchant-Specific Rules: “Every merchant is different and as such you need to execute the right fraud mitigation strategies and tactics that best meet each one’s specific needs”

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Industry: • E-commerce• Pan-European

commerce

Customer Profile: • SME & Enterprise retailers

• Over 90% concentration on SME market

Location: • HQ in Munich,

Germany• Worldwide presence

CHALLENGETranscend traditional ‘ONE-SIZE-FITS-ALL’ acquiring with a flexible, strategic, long-term partner

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Solution ArchitectsCustomized solution for Paymill’s specific needs

Designed CustomSolution Blueprint:

Assessed Client:Targeted pain points

Cloud-based digital onboarding portal:•‘Merchant journey’ view:

•Real-time Communications Window:

Supportive onboarding process & tools: •Electronic Merchant Application Form (MAF)•Automatic KYC wizard: customized per merchant profile•Pre-agreed fixed merchant pricing/terms

Implemented Bespoke Technology Solutions:

Application – KYC - MID

Embedded, live client-sales operation managers dialogue

All-hands-on-deck: CCO to SOMApproval rate analysisTarget merchant profile optimization

Provided Continuous Consultancy:

FOCUS II: Customized Technology & Business Solutions

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RESULTSOnboarding: Expedited Time-to-marketIncreased Processing Growth

Achieved High Approval Rates

2015

1,100%

2016

4X Faster in 1 Year

PAYMILL OVERALL TOP MERCHANTTOP 3 MCC CODESbenchmark aligned

90%+ 92.5%

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“Critical to analyze and investigate why cards are declined and advise merchants on steps they must take to optimize their payments”

•Declines vary from Merchant to Merchant•Numerous Reasons for Declines•High Approval Rates Mean Higher Conversion Rates, which Lead to Higher Revenue

FOCUS III: Approval Rates

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Questions & Answers

Rod R. KatzfeyVP of Sales & Business Dev. NACredorax Bank North America,MALPB USA rod.katzfey@credorax.com

Neeraj GuptaSenior Product Managervantiv neeraj.gupta@vantiv.com

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