©2015 MasterCard. Proprietary and Confidential.

Digital Payments - The future of shopping is happening now

Luděk Slouka

Central & Eastern Europe Product Manager

MasterCard Digital Payments & Labs

©2015 MasterCard. Proprietary and Confidential.

Industry Trends...and creating new shopping experiences for customers.

Virtual Store Showrooming Connected devices

Biometry

Omni channel shopping

Location-based app & offers

Buying in aisle

Wearables

Mobile POS terminal

©2015 MasterCard. Proprietary and Confidential.

Digital Payments – how does it fit together?

In Store

Digital payment

VAS

Browser e-comm

Mobile NFC

Bill payments, mobile top-up, P2P,

In-App

QR-code

Digitize cards…into mobile devices …for Payments

©2015 MasterCard. Proprietary and Confidential.

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©2015 MasterCard. Proprietary and Confidential.

DNK

UKR

ITA

NOR SWE

FIN

AUT

BEL

BGR

CZE

EST

FRA

ESPPRT

DEU

LVA

LTU

GRC

IRL

GBR

HUN

NLD POL

ROM

SVK

HRV

SVN

RUS

CHE

TUR

BLS

MOL

SER

ISR

22 Live Markets

● Austria● Belgium● Czech Republic● France● Germany● Greece● Hungary● Italy● Ireland● Israel● Netherlands● Poland● Romania● Russia● Spain● Sweden● Switzerland● Turkey● UK● Ukraine

BIH

22 MasterPass markets in Europe

©2015 MasterCard. Proprietary and Confidential.

2. Shop

4. PaymentType5.

PaymentDetails

6. ShippingInformation

7. Billing Information

8. Sale Completed

3. Checkout

1. Searchand Discover

SECURITY CONCERNS

PRIVACY CONCERNS

TOO MANY STEPS

!!

!

Page 6

Why MasterPass?

SPEED SECURITYSIMPLICITY

©2015 MasterCard. Proprietary and Confidential.Page 7

SPEED SECURITYSIMPLICITY

©2015 MasterCard. Proprietary and Confidential.Page 8

SPEED SECURITYSIMPLICITY

©2015 MasterCard. Proprietary and Confidential.

In f

ron

t o

f TV

At

pet

rol s

tati

on

s

SCO

pay

men

ts

At

spo

rt s

tad

ium

MasterPass use-cases

At

pu

blic

tra

nsp

ort

Prep

aid

mo

bile

to

p u

p

©2015 MasterCard. Proprietary and Confidential.

1. New use-case = reason to come back and use

2. Simple payment = conversion rate

3. Place to communicate = cross-sell

March 29, 201610

MasterPass in Digital Wallet

©2015 MasterCard.Proprietary and Confidential

Change of Consumer Authentication Process

what you know what you have & who you are

©2015 MasterCard.Proprietary and Confidential

• 00’s of cardholders in the Netherlands and US began using biometric-enabled payments

• identity verification at the cardholder’s fingertips or face recognition using biometric technologies

MasterCard Introducing Identity Check -Simplifying the Consumer Authentication Process

Biometric Authentication

Launch

External Commercial

Biometric TrialExternal Consumer

Biometric TrialsExternal Consumer

Biometric TrialsBiometric

Viability Test

Q2‘16

Q1‘16

Sep‘15

Aug‘15

Sum‘14

Selfie Pay“ ”

FingerPrint&

©2015 MasterCard. Proprietary and Confidential.March 29, 2016

MasterCard Identity checkMobile Biometrics Service

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©2015 MasterCard. Proprietary and Confidential.March 29, 201614