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Electronic Payments: A Disruptive Opportunity Chester Ritchie, SVP Head of Market Development & Strategy

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EMV Question

2

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My Wallet: 2014

3

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To Online and Mobile Payments

4

Source: BI Intelligence

Billio

ns'O

f'Dollars'

Source:(BI(Intelligence(

US'E0commerce,'M0commerce'And'Mobile'In0Store'Payments'

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In-Store Mobile Payments Will Grow 42X In 4 Years

5

Source: BI Intelligence Source:(BI(Intelligence(

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Data breaches have created a window of opportunity for payments investment and innovation

Source: Associated Press

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The Invisible War

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EMV: the U.S. is switching to more secure cards with embedded chips

Source: Left: University Of Cambridge, Right: www.chipandpin.co.uk

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That means Retailers will need to upgrade their Terminals

Source: Aite Group, BI Intelligence Estimates

4%#

14%#

35%#

57%#

70%#

87%#

0%#

10%#

20%#

30%#

40%#

50%#

60%#

70%#

80%#

90%#

100%#

2012# 2013# 2014E# 2015E# 2016E# 2017E#

%"Penetra)

on"

Source:(Aite(Group,(BI(Intelligence(Es6mates(

FORECAST:"Chip"Card"Compa) ble"Terminal"Penetra) on""United(States(

We#Are#Here#

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Mobile registers have already cannibalized sales of traditional ‘countertop’ systems

Source: The Nilson Report, BI Intelligence

Growth'Rates'

Source:(The(Nilson(Report,(BI(Intelligence((

Global'Payment'Terminal'Shipment'Growth'Rates*''

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Sources: Left: Starbucks, Top Right: Daniel Goodman / Business Insider Bottom Right: MyCheck

Mobile: In-Store and M-Commerce

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MOBILE – In Store (NFC) requires special chip on phones and registers

Source: Isis

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MOBILE (mcommerce) is blurring the line between offline and online payments

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Transactions are completely In-App

Source: GrubHub IPO Filing

$7#

$10#

$19#

$412#

$569#

$1,015#

$1#

$3#

$5#

$7#

$9#

$11#

$13#

$15#

$17#

$19#

$21#

$100#

$200#

$300#

$400#

$500#

$600#

$700#

$800#

$900#

$1,000#

$1,100#

2011# 2012# 2013#

Payment(Processing(Costs(In(M

illions(

Gross(Food(Sales(In(M

illions(

Source:(GrubHub(IPO(Filing(

GrubHub(Gross(Food(Sales(And(Payment(Processing(Costs(

Payment#processing#costs# Gross#Food#Sales#

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New services bringing these in-App payments to sit-down bars/restaurants

Cover

WillCall

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What’s next for the U.S.?

Source: Left-to-right/top-to-bottom: Coin; Google; REUTERS/Andy Clark; Estimote; LevelUp; REUTERS/Bobby Yip; Starbucks; CaixaBank; Samsung

,

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Number 1: Card Present = EMV & NFC

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Number 2: POS is the new credit card terminal

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Number 3. Mobile

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Payments Evolved

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Thank You!

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Any questions? Contact Chester Ritchie Chester.ritchie@worldpay.us www.worldpay.com

Worldpay 600 Morgan Falls Atlanta, GA 30350

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