From Electronic to Digital

© 2014 MasterCard. Proprietary and Confidential. “FRIENDLY” SHOWROOMINGFULLY DIGITAL Mobile is a major shopping tool and growing Smartphone shoppers reported the following activity over a 6-month period*. *Source: GfK “The Mobile Consumer” study, Q17 During your shopping occasions over the past 6 months, have you used your [DEVICE] for any of the following? 31% saw product in store, but purchased on phone from same store’s site. 33% saw product on phone, and purchased on phone without a store visit. 37% saw product in store, then purchased product on phone from other retailer or online. Page 2 One third of the time, smartphone shoppers are going fully digital with their purchases. SHOWROOMING

© 2014 MasterCard. Proprietary and Confidential. Payment experience is suboptimal 1Inc. “Your Website is Scaring Customers Away. 5 Easy Ways to Fix It,” December LivePerson, “The Connecting with Customers Report: A Global In-depth Study of the Online Customer Experience,” January % of shoppers will abandon items in their shopping cart when shopping with a mobile device. 1 $1.79T worth of goods were abandoned by online shoppers in Top reasons online consumers abandon their shopping carts include: 2 Complicated registration/login process Checkout problems Website security Today’s customers are looking for convenience, security, and a seamless shopping experience. Page 3

© 2014 MasterCard. Proprietary and Confidential. Consumers are looking for simpler ways to pay

© 2014 MasterCard. Proprietary and Confidential. Social Web on Mobile Payments From being the most negative topic (20%) in 2012 to ranking as very positive in 2014 (91%) MasterCard reasearch in partnership with Prime Research

INTRODUCING MASTERPASS

© 2014 MasterCard. Proprietary and Confidential. What is MasterPass? Page 7 MasterPass is a digital service that lets consumers pay with their favorite digital wallet - with any payment card, anywhere, on any connected device - through an enhanced shopping experience that is as simple as a click, tap, or touch.

© 2014 MasterCard. Proprietary and Confidential. MASTERPASS WALLETS More than a Wallet - a Wallet Acceptance Network Page 8 DIGITAL ACCEPTANCE POS* In-store Remote

© 2014 MasterCard. Proprietary and Confidential. 2. Shop 4. Payment Type 5. Payment Details 6. Shipping Information 7. Billing Information 8. Sale Completed 3. Checkout 1. Search and Discover SECURITY CONCERNS PRIVACY CONCERNS TOO MANY STEPS ! ! ! MasterPass Optimizes the Checkout Experience Which Can Contribute to Increased Sales MasterPass provides a swift, seamless, consistent checkout experience across all connected channels—computer, tablet, mobile—and, over time, will extend to POS and offer value-added services. Page 9

© 2014 MasterCard. Proprietary and Confidential. 1 Begin Checkout2 Login3 Confirm Details4 Complete and Connect MasterPass Reduces Steps at Checkout to Help Increase Sale Conversions Checkout starts by clicking the “Buy with MasterPass” button. MasterPass takes the hassles out of the checkout process and manages payment card info securely. Page 10

© 2014 MasterCard. Proprietary and Confidential. 1 Initiate checkout2 Review pre-checkout data3 Wallet login4 Checkout completed How It Works: Consumer Experience via Connected Checkout Once a merchant and wallet are connected, the consumer’s return shopping experience is complete in just a few clicks because account and payment information is already populated. Page 11

© 2014 MasterCard. Proprietary and Confidential. 1 Checkout initiation2 Reviews pre-checkout data3 Checkout completed How It Works: Consumer Experience via Express Checkout Express checkout API offers a quick checkout experience for returning shoppers on the merchant’s site. Page 12

© 2014 MasterCard. Proprietary and Confidential. MasterPass Fits with Your Current Card Processing and Checkout Flows MasterPass allows secure transaction processing using existing card processing flows. No interruption from the transaction data you normally see No complicated setup needed unlike with some wallets MasterPass works with existing acquirers/payment gateways, unlike some competing wallets that require the use of acquirers that are affiliated with their wallet service. Page 13 PAYMENT PROCESSING STAYS THE SAME PAYMENT GATEWAY STAYS THE SAME

© 2014 MasterCard. Proprietary and Confidential. MasterPass Delivers Multi-Channel Experiences for Today and Tomorrow Framed checkout within merchant mobile app for easy shopping Mobile- and tablet-optimized checkout for easy mobile- web shopping Fast and secure checkout online  Tap-to-pay (in-store)  Scan-to-pay Embedded mobile app checkout Page 14

© 2014 MasterCard. Proprietary and Confidential. Thank you