©2011 MasterCard.Proprietary and Confidential

24th of May 2011

Mobile Finance Masterclass

James Davlouros

May 24, 2011

©2011 MasterCard.Proprietary and Confidential

DESCRIPTION: Mobile contactless payments within a physical retailer at POS. Card emulation (to replace card, cash and cheque) and delivering value-added services along the purchase journey

PLAYERS:

DESCRIPTION: Purchasing music, tickets, games, gambling, content e.g. TV, applications

PLAYERS:

DESCRIPTION: Use mobile device to make payment over the air for physical goods (equivalent of online payments)

PLAYERS:

DESCRIPTION: A money transfer between two mobile phones which can be redeemed for airtime, cash, or used to pay for bills or goods by receiving parties. International = 66%, Domestic 33% of transaction value.

PLAYERS

Telcos

March 22, 2011Page 2

~ $60bn

(2014 = $60bn)

$120bn

(2014 = $148bn)

$42bn

(2014 = $48bn)

~ $153bn

(2014 = $408bn)

2014 Market Growth = $375bn*

(2014 Actual = $664bn)

(* Forecast volumes provided by Juniper Research a business intelligence analysis group focussed upon the communication sector)

Mobile ContactlessMobile Money

e/m-Commerce – Digital and Virtual Goodse/m-Commerce – Physical Goods

Mobile commerce is developing rapidly...

Banks

©2011 MasterCard.Proprietary and Confidential

Disruption due to New entrants in payment space

Feb 8 2011: Buyster

France’s leading operators, Orange, SFR and Bouygues

Telecom announced JV to launch Buyster through Atos, a

remote payment system with own acceptance brand

Feb 9 2011: Belgian operators

Belgian leading operators announced plans to launch a

remote and NFC payment system

Feb 4th 2011: O2 UK

O2 seeks an e-money license for bank

independent P2P and mobile commerce wallet

launch in 2011, to be expanded to NFC at later

stage.

MNO initiatives (bank independent)

March 2010: Deutsche Telecom buys

ClickandBuy

Deutsche telelcom buys a leading e-

commerce wallet

Dec 6 2010: Google & Samsung

Google has announced the launch of one of the

world's first NFC smartphones with embedded

NFC, the Nexus S, which supports the

company’s new Android operating system

version, Gingerbread.

Feb 8th 2011: Vodaphone signs WW

agreement to distribute Nexus S !

Operating Systems’ initiatives

Apple…

Strong rumours that Apple’s iPhone 5 has

postponed embedded NFC and will be based on

i-Tunes wallet

9 Feb 2011 Nokia and Microsoft alliance

Nokia decided to use MS ‘Windows phone 7

Operating System, dropping Symbian.

Plans to issue

Android has overtaken Symbian as the world’s

largest OS in January 2011.

Dec 16 2010: Orange France

Orange has announced its ambition to equip

500,000 clients with NFC phones by end of 2011.

March 22, 2011Page 3

©2011 MasterCard.Proprietary and Confidential

MasterCard Mobile Services Strategy

Utilizing the

mobile platform to

deliver convenience

and control Remote Payments,

Mobile TopUp,

P2P/Remittance

Utilize mobile’s

flexibility and

immediacy to add

supplemental value

to core solutions

Alerts, Apps,

Mobile Offers

and Coupons

Proven products

and capabilities that

add new utility

to traditional

payment channels

Contactless

(Mobile PayPass),

New Mobile Payment ServicesMobile Value Added ServicesCore Payment Services

©2011 MasterCard.Proprietary and Confidential

Standards and Approvals Standard Test and approval process for all 3rd party software and hardware components

Partner ProgramAn ecosystem player forum and a repository for all documents related to mobile payments

MasterCard Mobile Services & Products

Mobile PayPass

MOTAPS

Over The Air Provisioning

Service, for instant issuance

and control. Single connection

enabling you to provision all

your financial applications

Mapping Service

Instantly issue PayPass cards

to phones, associating them to

an existing consumer card

Mobile TAGS

An easy and convenient way to

roll out PayPass capabilities to

the phone with PayPass TAGS

Location ServicesPhone applications for ATM

locators and offers based on

your location

Mobile CAPReceipt of a dynamic CAP token

based on either two factor

authentication

Under development

Mobile OffersPhone applications providing

information on offers based on

location (Next Jump integration)

OthersAlerts, Money Management, etc.

MasterCard MPG

Mobile Payment Gateway

A turnkey mobile payment processing

platform that allows issuers, acquirers,

merchants and mobile network operators to

quickly and cost-effectively provide

customized mobile solutions

MoneySend™

Person-to-person transfers

Enable consumers to send money to each

other by simply entering the recipients

Mobile phone number

New Mobile Payment ServicesMobile Value Added ServicesCore Payment Services

Page 5

The Mobile Convergence SolutionBridging together Proximity, e/m-Commerce and remote payments

©2011 MasterCard.Proprietary and Confidential

Value add services that utilize the mobile device to add supplemental value to payment and shopping experience

Money Send Applications

for Smart phones

Mobile CAP

for eCom transactions

Offers with

MasterCard Marketplace

Location Restaurant

Offers in Italy

inControl Card Management

via mobile applications

Location based Services

for events

©2011 MasterCard.Proprietary and Confidential

Fully-integrated on-demand person-

to-person mobile payment service

200 phones payment pilot in

partnership with ViVOtech First Market Trial of Personalised

NFC-Enabled Mobile Phones

First trial of PayPass-enabled mobile

phones for secure EMV payments

Custom technology trial of Near

Field Communication and MTA

Turkey’s first mobile phones, enabled

with MasterCard PayPass

Pioneer mobile phone debit payments in the

United Kingdom, using Maestro PayPass

Enable customers to make contactless payments

via phones with MasterCard PayPass

Partnering in the development of a Mobile

Payments proposition that focuses

specifically on consumer convenience

First large scale deployment of PayPass in

a mobile phone (60K Customer)

First trial in Taiwan to make

use of NFC smart posters

and m-couponsFirst Mobile Pilot in India (Bangalore) using

Mobile PayPass

Turkey’s first mobile phones, enabled

with MasterCard PayPass

Commercialization of mobile

payments using NFC technology

Mobile Payment Gateway in Latin

America enabling consumers to pay

bills and top-up air time

Tags on Blackberry Rollout

SMS alerts and notifications

Commercial Launch of Mobile NFC

using MFLEX Antennas

Issuing Mobile TAGS to the

consumers in the USA

An Overview of MasterCard Mobile Momentum

©2011 MasterCard.Proprietary and Confidential

• EMVCo: Chip payment specifications

– Common Contactless Interface (for PayPass cards and mobiles); Terminal Specifications

(including mobile); Application selection on mobile; UICC profile; handset requirements

• NFC Forum: NFC Contactless specifications

– Technical Committee Chairmanship

– Lead development of digital and analogue specifications for compatibility with PayPass

– Major contribution to test cases for compliance program

• European Payment Council, M-Channel WB:

– Contributing to work on contactless mobile payment and remote mobile payment

• AEPM: French specifications for contactless mobile payment

– Developed French implementation of Mobile MasterCard PayPass M/Chip supporting AEPM

requirements while using standard PayPass terminals for interoperability

• GlobalPlatform: Smartcard standards

– Monitoring Mobile Task Force

– Contributing to other mobile payment related developments through EMVCo, including

Composition Model for Security Evaluation

• ETSI Smart Card Platform: SIM Card specifications

– Member of ETSI. Monitoring SCP, and contributing when it is felt that work is closing off options

for banking and payment deployment

Contribution to industry standards setting

©2011 MasterCard.Proprietary and Confidential

• Publications

– Mobile MasterCard PayPass M/CHIP Issuer Implementation Guide

– PayPass for Mobile Specifications

– Reference User Interface for Mobile MasterCard PayPass

• Project support

– Product specialists & technical experts

– MC Advisors (for heavier projects)

• Marketing support

– Marketing Templates for Mobile MasterCard PayPass Tags

– Reference User Interface for Mobile MasterCard PayPass & MPG

– Demonstrations of Mobile Payments (M/CHIP 4) for payments

– Demonstrations of Mobile Payments and inControl integration solutions

– Demonstrations of Mobile Payment Gateway mobile solutions

MasterCard support

http://www.mastercard-mobilepartner.com/documentation.html