GLOBAL ALTERNATIVE ONLINE PAYMENT METHODS: SECOND HALF 2016 PUBLICATION DATE: FEBRUARY 2017 SAMPLE REPORT

GENERAL METHODOLOGY OF MARKET REPORTS Secondary Market Research The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are solely based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for all obtained data. As a result, companies gain a precise and unbiased impression of the market situation. Cross referencing of data is conducted in order to ensure validity and reliability. The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several sources. If this is the case, all sources are mentioned on the chart. The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart. Definitions The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact definition used by the source (if available) is included at the bottom of the chart. Chart Types Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple answers were possible, which is noted at the bottom of the chart. Report Structure Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents, management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures. Notes and Currency Values If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In some cases, the note (also) contains additional information needed to fully understand the contents of the respective data. When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time period. Should the currency figure be in the future, the average exchange rate of the past 12 months is used.

METHODOLOGY OF THE CURRENT REPORT Report Coverage This report covers the global online payment market with a focus on alternative payment methods. Alternative online payment methods generally refer to payment methods other than credit card or bank card payments. Online payment methods are defined as methods used by online shoppers to make purchases online via any device. Major B2C E-Commerce markets in all global regions are covered, including advanced and emerging, while data availability varied across the countries. The report includes data mostly published within the last six months of 2016. The exact date of publication of the source is stated on each chart. The time period which the data refers to differs by source. Report Structure The global chapter opens the report, featuring a breakdown of global E-Commerce sales by payment methods and a ranking of methods used by global cross-border online shoppers and mobile shoppers. A text chart with the overview of most important online and mobile payment trends is also included. The rest of the report is divided by regions presented in the descending order of B2C E-Commerce sales. Within each region, the countries are also ranked by online sales. Depending on data availability, the following types of market information are included: payment methods most used in online and mobile shopping, including cards and alternative methods; attitude of online shoppers to the variety of payment methods offered; breakdown of preferences of online shoppers and of online retail sales by payment methods. Not all the mentioned types of information are available for each of the covered countries. For selected leading markets, also online and mobile payment trends and news about major players, such as payment providers, banks and retailers are presented on text charts.

DEFINITIONS ONLINE PAYMENT ALTERNATIVE PAYMENTS E-WALLET MOBILE WALLET The following expressions and definitions are used in this Online Payment market report*: ONLINE PAYMENT Transfer of money made over the Internet following a consumer’s payment command, includes payments for product and service purchased in (B2C) E-Commerce and M-Commerce. ALTERNATIVE PAYMENTS Generally refers to payment methods other than credit card or bank card payments. Widely defined, alternative online payment methods include bank transfers and direct debit, digital wallets, pre-paid cards and private label cards, invoice, and digital currency. May also include cash on delivery and card schemes by local companies other than global card brands. E-WALLET A prepaid digital account, allowing users to store money and use it in online or mobile transactions. The examples of E-Wallets include Alipay and PayPal. MOBILE WALLET A software solution that enables consumers to store payment credentials, such as credit or debit card information, and use the stored credentials to pay digitally for transactions made in-store, online or via mobile. Mobile wallets are installed on mobile devices which are used to complete payments. The examples of mobile wallets include Apple Pay, Samsung Pay and Android Pay. INSTANT PAYMENTS Electronic payment solutions for retail which are available 24/7/365 and thus result in immediate or close-to-immediate interbank clearing of transactions and crediting of the payees’ accounts and confirm the payment to the payer after payment initiation. B2C E-COMMERCE The sale of products (and services) through electronic transactions via the Internet from businesses to consumers. M-COMMERCE M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through transactions via mobile devices. ONLINE SHOPPING Purchase of products or services by consumers via the Internet. Broadly defined, may include business to consumer and consumer to consumer transactions. CROSS-BORDER E-COMMERCE The sale of goods (and services) directly to consumers in other countries, with orders made online through foreign online shops and delivered from the country where the foreign shop is based or from a central logistics facility, i.e. across the country’s borders. Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective charts

TABLE OF CONTENTS (1 OF 5) Management Summary 2. Global Developments Online and Mobile Payment Trends, H2 2016 Breakdown of E-Commerce Sales by Payment Methods, in %, 2015 & 2020f Breakdown of the Number of Online Payment Options Offered, in % of Online Merchants, January 2016 Top 3 Payment Methods Preferred in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, August 2016 Top 3 Considerations When Choosing a Payment Method in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, August 2016 Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, by Selected Regions, August 2016 Asia-Pacific 3.1. Regional Breakdown of E-Commerce Sales by Payment Method, in %, 2015 & 2020f 3.2. China Online and Mobile Payment Trends and News about Players, H2 2016 E-Wallet’s Share of E-Commerce Sales, in %, 2015 Payment Methods Used in Online Shopping, in % of Online Shoppers, 2016 Third-Party Online Payment Volume, in CNY trillion, by Two Comparative Estimates, Q1 2015 – Q2 2016 Breakdown of Third-Party Online Payment GMV by Players, in %, by Two Comparative Estimates, Q1 2016 3.3. Japan 3.4. India Breakdown of E-Commerce Payment Volume by Payment Methods, in %, 2015 & 2020f

TABLE OF CONTENTS (2 OF 5) Asia-Pacific (Cont.) 3.5. Australia Share of Credit Cards in Number of Domestic B2C E-Commerce Payments, in %, FY 2010/11 and FY 2015/16 3.6. Indonesia Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, December 2016 Breakdown of Reasons to Choose Payment via ATM, in % of Online Shoppers Who Pay for Online Purchases via ATM, December 2016 3.7. Thailand Breakdown of E-Commerce Revenues of Retail and Wholesale Trade Companies by Payment Method, in %, 2015 4. Europe 4.1. Regional Payment Methods Preferred in Online Shopping, in % of Online Shoppers, by Belgium, Germany, France, Italy, the Netherlands, the Nordics, Poland, Spain and the UK, May 2016 Share of Online Shoppers Who Abandoned Shopping Cart Due to Lack of Favorite Payment Method, in %, by Benelux, Germany, Nordics and the UK, June 2016 4.2. UK Online and Mobile Payment Trends and News about Players, H2 2016 Payment Methods Most Trusted in Online Shopping, in % of Online Shoppers, November 2016 4.3. Germany Payment Methods Used in Online Shopping, in % of Online Shoppers, July 2016 Breakdown of B2C E-Commerce Sales by Payment Methods, by incl. Amazon and excl. Amazon, in %, 2015

TABLE OF CONTENTS (3 OF 5) 4. Europe (Cont.) 4.4. France Share of Respondents Who Trust PayPal with Personal Data, by Total, Ages 18-34, and Compared to a Bank, in %, June 2016 4.5. Russia Share of Online Shoppers Paying by Bank Card and by Cash on Delivery, in %, October 2016 Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2016 4.6. Spain Payment Methods Used in Online Shopping, in % of Online Shoppers, 2015 & 2016 4.7. Italy Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2016 4.8. Netherlands Breakdown of Online Purchases by Payment Methods, in %, H1 2015 & H1 2016 4.9. Sweden Payment Methods Used and Preferred in Online and Mobile Shopping, in % of Online Shoppers, Q2 2016 4.10. Poland Payment Methods Used in Online Shopping, in % of Online Shoppers, 6 Months to December 2016 4.11. Greece Payment Methods Used in Online Shopping, in % of Online Shoppers, 2016 4.12. Czech Republic Payment Methods Used in Online Shopping, in % of Online Shoppers, Q2 2016

TABLE OF CONTENTS (4 OF 5) 5. North America 5.1. USA Online and Mobile Payment Trends and News about Players, H2 2016 Top 3 Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2015 & 2016 Payment Methods Most Trusted in Online Shopping, in % of Online Shoppers, November 2016 5.2. Canada Breakdown of E-Commerce Transaction Value by Payment Method, in %, 2015 6. Latin America 6.1. Regional Payment Methods Used in Online Shopping, in % of Online Shoppers With Bank Account, July 2016 6.2. Brazil Online and Mobile Payment Trends and News About Players, H2 2016 Breakdown of B2C E-Commerce Sales by Payment Methods, in %, 2015 6.3. Mexico Top 10 Payment Methods Used in Online Shopping, in % of Online Shoppers, 2015 & 2016 Online Payment Methods Used in Online Shopping, by Device Used, in % of Online Shoppers, August 2016 Offline Payment Methods Used in Online Shopping, by Device Used, in % of Online Shoppers, August 2016 7. Middle East 7.1. Regional Share of Online Shoppers in MENA Who Prefer to Pay with Cash on Delivery, in %, March 2016 Breakdown of Share of Cash On Delivery, in % of E-Commerce Companies in MENA, October 2016 Share of Cash On Delivery in Total Online Shopping in the Middle East, in %, 2015

TABLE OF CONTENTS (5 OF 5) 7. Middle East (Cont.) 7.2. UEA Breakdown of Online Shoppers by Shoppers Who Prefer to Pay Online and Who Prefer to Pay On Delivery, in %, November 2016 7.3. Saudi Arabia Top Payment Method Preferred in Online Shopping, by Selected Product Categories, in % of Millennial Online Shoppers, 2015 8. Africa 8.1. Regional Payment Methods Most Used in Online Shopping, in % of Online Shoppers, by Ghana, Kenya, South Africa, Uganda, December 2016 8.2. South Africa Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, March 2016 Share of Online Shoppers Who Would be Motivated to Shop Online More by Availability of the “On Delivery” Payment Method, in % of Online Shoppers, March 2016 8.3. Nigeria Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers

1. Management Summary 12 – 16 2. Global Developments 17 – 23 3. 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. Asia-Pacific Regional China Japan India Australia Indonesia Thailand 24 – 37 25 – 25 26 – 30 31 – 31 32 – 33 34 – 34 35 – 36 37 – 37 4. 4.1. 4.2. 4.3. 4.4. 4.5. 4.6. 4.7. 4.8. 4.9. 4.10. 4.11. 4.12. Europe Regional UK Germany France Russia Spain Italy Netherlands Sweden Poland Greece Czech Republic 38 – 55 39 – 40 41 – 42 43 – 45 46 – 46 47 – 48 49 – 49 50 – 50 51 – 51 52 – 52 53 – 53 54 – 54 55 – 55 5. 5.1. 5.2. North America USA Canada 56 – 60 57 – 59 60 – 60 6. 6.1. 6.2. 6.3. Latin America Regional Brazil Mexico 61 – 67 62 – 62 63 – 64 65 – 67 7. 7.1. 7.2. 7.3. Middle East UAE Saudi Arabia 68 – 73 69 – 71 72 – 72 73 – 73 8. 8.1. 8.2. 8.3. Africa South Africa Nigeria 74 – 78 75 – 75 76 – 77 78 – 78

“On delivery” was the leading payment method used by more than half (54.2%) online shoppers in the Czech Republic in Q2 2016. Czech Republic: Payment Methods Used in Online Shopping, in % of Online Shoppers, Q2 2016 in % of Online Shoppers Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of individuals aged 16-74; base for this question were respondents who purchased over the Internet in the previous 12 months Source: Czech Statistical Office, November 2016

48% of online shoppers in South Africa preferred to pay by “Card” and 23% “On Delivery”, as of March 2016. South Africa: Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, March 2016 Survey: based on a survey of 12,000 Internet users of whom 56% have shopped online, conducted between December 2015 and March 2016; 59% of responses were from mobile and 41% from desktop; ages 15+, 51% of respondents were 20-39 years old; 43% were from Gauteng and 16% from Western Cape; 39% worked full-time/self employed Source: Effective Measure, IAB South Africa, Visa, September 2016