©2012 dfs services llc confidential & proprietary discover financial services – global...

©2012 DFS Services LLC Confidential & Proprietary

Discover Financial Services – Global Acceptance Footprint

• Third largest global card acceptance network(1)

• Complementary networks with strong global presence

• Operates in over 185 countries / territories(2)

• Over 850,000 ATMs in more than 100 countries

North America

8,900,000

Asia Pacific

7,100,000

EMEA

2,200,000

Latin America

3,100,000

1. The Nilson Report, #989, March 2012.2. The map denotes countries or territories with transactional activity in the last year.3. Total reflects the number of merchant outlets that accept one or more card brands through May 2012.4. Estimated enablement of RuPay, year-end 2012

Total Merchant Locations

21,300,000(3)

(4)

1

©2012 DFS Services LLC Confidential & Proprietary Confidential

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2©2011 Discover Financial Services LLC Confidential & Proprietary 2

Discover®

Mobile Opportunities


Everyone is getting into payments

Key ecosystems are migrating services, impacting the payments model, as we know it.Traditional Payments Mobile

Social Media & Online Advertising Traditional Retail & eTail

EmergingCommerce

VisaVisa

MastercardMastercard

Wells FargoWells Fargo

Bank of AmericaBank of America

American Express

American Express

First DataFirst DataChaseChase

CitiCiti

PayPalPayPalDiscover ®Discover ®

AppleApple BingBing

foursquarefoursquare shopkickshopkick

FacebookFacebook

TargetTarget

Old NavyOld Navy

Best BuyBest Buy

The Home Depot

The Home Depot

Ace Hardware

Ace HardwareLowe’sLowe’s

AmazonAmazonWalmartWalmart

Office DepotOffice Depot

MotorolaMotorola

SquareSquare VerizonVerizon

AprivaApriva

AT&TAT&T

Roam DataRoam Data

Vivo TechVivo TechNokiaNokia

mFoundrymFoundry VerifoneVerifone

ClairmailClairmailIntuitIntuit


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MP

Cloud (software-based)

NFC / EMV (hardware-based)

B2CB2B

Strong and growing partnership foundation – Discover is ready


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• Which shopping channels?–Store–Online–Mobile web–App–Facebook

• What device?–Samsung Nexus S 4G–BlackBerry 9900–iPhone

• How to identify myself?–Card–PIN–Phone #–Fingerprint

? ? ?

• What POS?–Traditional–Portable–Customer-based mobile

• What form factor?–Mag stripe card–EMV–NFC–Barcode / QR–Empty hand

• Which data storage location?–Merchant–Third party–Device–Cloud

There are too many choices

©2012 DFS Services LLC Confidential & Proprietary 6

Two Helpful Resources For You

Objective Create awareness on how Discover can help small businesses grow

1. Give them tools they need to differentiate themselves in the market

2. Detailed instructions and tools to succeed

Facebook Guidelines, facts and helpful hints How to set up your business’ facebook

QR Codes What is a QR Code How to get and use a QR Code How a QR code can help a small merchant


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What is a Mobile Wallet?

A mobile wallet is a digital container for payment credentials and value-added content and services, delivered via a mobile device.

Payment credential (multiple forms) with

singular or multiple accounts

Membership and

loyalty programs

Personalized, location-specific

coupons, rewards and content

Ticketing for sports and

entertainment venues

Spend tracking and other

financial management tools

Mobile wallet implementations vary, but may

include the following components:


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Discover® Mobile Wallet Pilot

•Payments made leveraging Discover® Zip technology

•Value added features

•Merchant Offers (60% of U.S. Smartphone users shop on-line before going in-store to buy4)

•Transfer funds and redeem rewards

•66% of 103.5mm U.S. Smartphone users willing to use it as a digital wallet1

•79% are interested in mobile coupons2

•59% use it to shop while in-store3

1 – KPMG International’s 5th Annual Consumers and Convergence survey2 – Comscore, December 2011 3 – Insight Express Study 2011 4 – Cisco International Study, February 20121 – KPMG International’s 5th Annual Consumers and Convergence survey2 – Comscore, December 2011 3 – Insight Express Study 2011 4 – Cisco International Study, February 2012


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Browse Offers View Offer Redeem Offer*Merchants identified above are for demonstration purpose only, and may not participate in the Discover Marketing Platform.

Applications & Solutions

Discover® Offers


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Chips, Products & Security

2D Barcode2D Barcode

StickerSticker SIM WrapperSIM Wrapper

iPhone CaseiPhone Case Micro SDMicro SD

Embedded NFCEmbedded NFC

Form Factors

SecureKey SecureKey

Acculynk PIN padAcculynk PIN pad

ProtectBuy / 3D SecureProtectBuy / 3D Secure

Online Security

Sub-account ManagerSub-account Manager

Mobile Wallet Powered by C-SAM

Mobile Wallet Powered by C-SAM

Platforms & Services

P2PP2P

From Discover® Zip contactless and multiple form factors to TSM certification standards, we are investing in products and security that will give us the edge in mobile


A roadmap of new payment options

Source: Market Platform Dynamics

Mag Stripe

Card-based transaction at existing terminal or mobile

card reader

Offsite Remote eCommerce or

mCommerce (mobile web or mobile app)

Onsite RemoteVirtual checkout:

eCommerce transaction by way of mobile device at

physical POS

Proximity: no payment credential

Communication of mobile device to reader,

exchanging token instead of payment information

Proximity: payment credential

Sending payment information directly from

payment device to reader

(NFC)

AmazonAmazon

PayPalPayPal PayPalPayPal

Bill to MobileBill to MobileSquareSquare

Aisle BuyerAisle Buyer StarbucksStarbucks

CimbalCimbal

Google WalletGoogle Wallet

Discover® Zip®

Discover® Zip®

BluetoothBluetooth

IsisIsis

iPhone 5iPhone 5

Nintendo Wii ( 11/18 )

Nintendo Wii ( 11/18 )

©2012 dfs services llc confidential & proprietary discover financial services – global...

Documents

mobile device

small merchant slide

ready slide

mobile opportunities

mobile web app facebook

business facebook qr

facebook guidelines

card brands