September 17, 2007 MasterCard PayPass – Tap & Go Payments The London Launch and Beyond Mike Cowen, MasterCard Global Transit Solutions

September 17, Agenda MasterCard PayPass : Tap and go payments – What is PayPass? – Global Status – PayPass in the UK – The London Launch – PayPass Security & Risk Management

September 17, What is PayPass? PayPass is the de facto global standard for contactless payments PayPass specifies what is required of both card and reader in order for contactless payment to take place Developed by MasterCard, PayPass has been licensed by both Visa and JCB and now contributed to EMVCo The primary aim of PayPass is to offer an attractive alternative where traditionally cash has dominated PayPass is a key component of the MasterCard War on Cash / Low Value Payments initiatives * EMVCo manages the EMV specifications upon which Chip & PIN is based

September 17, PayPass Global Status Approximately 16 million PayPass cards & devices issued to consumers (inc. fobs, watches, phones) Approximately 55,000 merchant locations accept PayPass (inc. McDonalds, 7-Eleven and vending machines from Coca Cola and others) It’s a global trend! You can Tap and Go® with PayPass in 19 countries worldwide, including … – Buses & ferries in Taiwan, taxis & the subway in New York, tollways in Ohio and parking across the US – Not a separate card application, true ‘pay as you go’ More details at:

September 17, PayPass in the UK Live with 1,500 RBS staff in London and Edinburgh since June 2006 August 17 th - Press launch tie-in with The Bourne Ultimatum in London Sept 3 rd - Public Launch in London APACS Press Release (8 th May 2007): – “… UK rollout to start in New Year” – “… over 5 million contactless cards will be issued by the end of 2008,” – “… they will be accepted in at least 100,000 merchants.“ More details at:

September 17, A different kind of pit stop! 29 th August 2007 : The RBS-sponsored AT&T Williams team used a debit card featuring MasterCard's PayPass technology to pay for their order at the McDonald's in Billingsgate Story and pictures* at … *Cannot be reproduced here for copyright reasons

September 17, The NBS Prepaid MasterCard PayPass card A PayPass enabled MasterCard … … without the need for a bank/credit account

September 17, PayPass Security & Risk Management PayPass carefully balances convenience versus security – From time to time, the cardholder will be required to do a Chip & PIN transaction to prove rightful card ownership – The parameters which determine when this happens are set by the issuing bank The read distance is deliberately kept short (<5cm) to minimise the risk of an unintentional card read – There is little or no incentive to perform unauthorised transactions as the fraudster would have to reveal their identity in order to bank the funds PayPass allows merchants to accept tap & go payments of up to £10 with the same payment guarantee as for a signature or PIN verified transaction

Thank you.