New digital approach for shopping

Connected shopping Physical store New purchase journeys, accelerated by smartphone development, are relieving the frontiers between physical store and e-commerce Connected shopping Physical store e-commerce The smartphone acts as the connected shopping catalyst 4,6 million of French people have already purchased with their mobile 2 points over 16% of the e-commerce increase spring from the drive In 2014, 57% of the French are equipped with smartphones A physical store going more digital An empowerment of the m-shopping Customers move towards new purchase journeys, giving place to an hybrid shopping at the junction between physical store and e-commerce

2% of the viewing in stores are concluded by a purchase on the web 3 Large retailers engage important means to meet the new hybrid customers’ purchase expectations Consideration Evaluation Purchase Post purchase Customers change their purchase perception and journeys Web in store : 38% of the mobile users make enquiries online in stores 2 (2 times more than in 2012) Store to web : 2% of the viewing in stores are concluded by a purchase on the web 3 Sharing the experience : 86% of the internet users have trust in the online viewpoints 4 ROPO (Research On line Purchase Off line) 78% of the customers have made online research before purchasing in stores at least once1 Key practices A provided response that only large retailers can afford Free discount coupons reachable on the smartphone Price comparison application developed by Leclerc Actors initiatives are based on customers shopping data analysis (3) Xerfi - March 2013 (4) Oliméo, 2010 (1) Study fulfilled by BVA for Mappy – April 2013 (2) Fevad / Médiamétrie

Examples of new actors that intermediate the payment value chain and put banks revenues at risk Service providers working directly Some actors entering the banks core business starting from payment Some new actors serving customers Card holder Acceptor Processor Acquirer Banker Chosen examples of new actors activities threatening directly or indirectly bank’s business Flow concentrator => Loyalty Wallet NFC =>couponing => Loyalty Store m-acceptance => Loan e-Wallet Couponing ePSP Acquisition Loyalty e-commerce => Saving Niche Pay at table => Threat on card commissions Bills payment

The payment market is under pressure with these new competitors and main retailers that are arming themselves Some new independant actors propose an alternative to the banks Service providers were formerly at acquirer’s service, but they are directly developping services to shops Internet giants extend its activities «  Omni commerce » project with all added value services1 (already existing: Mc Donald’s web to store solution, tablet connected to point of sales terminal with modules handling prices/reserve/promotions/orders…) Mobile acceptation with real time marketing report, customized receipt, … Couponing based on card transactions or on NFC SIM card On-line payment subscription with Slimpay Development of vertical applications in the real world (ex. Pay At Table) Loan activity Full e-commerce plateforme (acquisition) : Pay2bill Some retailers arming themselves for the race of digital shopping « There is a battle in perspective for customers data between operators, bankers and retailers » according to E. Leclerc « In our side, we are also developping our own contactless payment technology, because there is a real competition between telecom operators, banquers, distributors, and even the suppliers of pipes, to know who will manage access code and who will manage the file of our customers ! » « Historically, bankers have always claim it but there is a big battle in perspective about data exploitation, channel access and referencing » 1 : « omni commerce approch » include self scanning, search engine, geolocalisation promotions, customer opinion, cross selling, information avis client, cross selling, in store complementary information, loyalty program, mobile payment, one clic paument, receipt, NFC identification… (Source : Wordline)

An exhaustive solution provided… To cope with these new stakes, BPCE gets into an innovative logic that targets both retailers and consumers An exhaustive solution provided… … that aims at the retailers and their own targets Multi-acceptance Multi-services Omnichannel For the retailer, an extended cash desk 1 An end-to-end solution that takes into account all the purchase phases (before, during and after the purchase) Connected shopping 2 A converged unique system : Multi-means for the payment Multi-acceptance Omnichannel Addressed to suspects, prospects and clients Unique identification Multi-means for payments Multi-services For the card holder, a unique application

All my purchasing services BPCE adopts a complete approach by also providing services to the customers and meeting them on the expected channels One mobile application, allowing the « increase » of all the payments in order to create new purchasing experiences Targeted offers The Mobile Container 1 application All my purchasing services http:// A web platform A unique mobile solution for identification (SSO, Touch iD) Visibility in store A marketing channel for targeted messages on an opt-in warehouse Evaluation of the store Omnichannel payment A e-wallet (V.me) Payments dashboard A control tower

BPCE initiatives will be fed by an opened digital services ecosystem Full service : payments, authentification, offers… Open to non clients Mobile Container Extended digital cash desk Payment multi-means : Systempay, credit card, wallet, SDD, SCT, … Multi-acceptation : Extended digital cash desk, Mobile dongle, Pad connected to a credit card terminal Omnichannel Developers community (API)