©2014 MasterCard. Proprietary and Confidential

Globant Webinar

Mobile Payments

Mario Shiliashki, SVP / Group Head, Emerging Payments @ MasterCard

May 21, 2015

©2014 MasterCard. Proprietary and Confidential

journey to scale = everyday use

©2015 MasterCard. Proprietary and Confidential

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Every connected device will become a commerce

device

Shop in store

Shop in aisle

Shop anywhere

Shop at home

Commerce is changing

©2015 MasterCard. Proprietary and Confidential

The path to purchase Plastic Connected Devices

Connected Devices Provide More Opportunity for Engagement and Commerce

Pay: Swipe, dip, tap, type

Secure: PIN / signature

Communicate: Accept or decline

Information: Check balance, status, search, compare, try

Offers: Targeted offers, rewards

Communicate: Connect, consult, share

Before the purchase

During the purchase

After the purchase

Pay: Tap, in-aisle, in-app, online

Secure: Biometrics, alerts

Redeem: Offers, rewards, coupons, shipping

Communicate: Detailed transaction response

Payment history: E-receipt, track, benchmark usage, auto-order, cross-sell, replenish

Loyalty: Earn, keep, track, burn rewards

Communicate: Record, share, celebrate

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©2015 MasterCard. Proprietary and Confidential

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Three pronged strategy critical to securing all channels

Online Security Suite

EMV

Tokenization

Dynamic security on device

1

2

3

Mo

bile

Th

rea

ts

MDES

©2015 MasterCard. Proprietary and Confidential

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Securing digital channels will unlock significant value

• 80% of declined transactions are genuine or “false positive declines”

• Resulting in negative reaction by genuine cardholders

96%

Physical world

Approval rate

80%

Digital world

Approval rate

Fraud rate

Card present rate

Fraud rate

3x card present

rate

Objective: bring digital approval rates in line with

current physical world approval rates

©2015 MasterCard. Proprietary and Confidential

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Our point of view is that…

Consumer card account numbers will only be visible

on a physical card, and will be replaced everywhere

else by “payment” tokens

In the Cloud On a Mobile Device

Stored Online

©2015 MasterCard. Proprietary and Confidential

MasterCard is the world’s most advanced payment network – our Open API suite is the bridge to it

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Wearable Device

W Web App

Gas Station

Android

IOS

PHP

Ruby

Java

Smartphone

In-Car Entertainment

MasterCard Open API

<?

developer.mastercard.com

@MasterCardDev

©2015 MasterCard. Proprietary and Confidential

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For now, consumers prefer their banks and card issuers as mobile wallet providers

Base: Own smartphone & likely to try a payments app

Source: Pheonix Marketing International, September 2014

21%

29%

33%

30%

55%

65%

71%

Google

Apple

Amazon

MNO (Net)

PayPal

Primary Card Issuer

Any Bank (Net)

“Which of the following companies would you consider obtaining a mobile wallet from?”

©2015 MasterCard. Proprietary and Confidential

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@MasterCardDev

developer.mastercard.com