U-commerce: Fueling economic growth with electronic payments Mark Burbidge, SVP and GM, e-Visa Joint UNCTAD - UN ESCAP Asia Pacific Regional Conference 21 November 2002

Every economy needs secure, efficient and reliable payments to grow Electronic Payment Enables Commerce

Visa: World’s Largest Payments Engine One billion cards in use globally 805,000 ATMs worldwide US$2.3 trillion in global card sales in 2001 More than 21,000 members worldwide 40 payments each second in Asia Pacific More than 50% of e-commerce transactions are made with Visa 25 billion transactions a year

Universal Commerce anywhere, anytime, any way

POS e-commerce Functionality Merchant Terminals, MOTO, PCs, Cell Phones, PDAs, Trading Hubs, etc. Access points Credit, Debit, Digital Wallets, Multiapplication Chip, XML, etc. u-commerce m- commerce Standards Security Trust, confidence, ease of use Putting the Infrastructure in Place

Defining a Secure Payment Security Authentication Confidentiality Integrity

Online Retail Market is Growing US$M Source: IDC 2002 Forecast B2C Commerce Market Size Asia Pacific (exclude Japan)

Trend: Internet Usage Experience Source: (data for Hong Kong) Regular Internet Users’ Shopping Experience

Trend: Online Shoppers are Young Source: data for Taiwan Percentage of Online Shoppers by Gender Less than 15 Over to to to to to to to to 19 Male 1% 8% 34% 16% 6% 1% 0% 1% 2% 4% 11% 22% 33% 20% 5% 0% 33% Female

Trend: Women are Catching Up Internet users (China) %

Trend: Proven Market Place Source: data Hong Kongwww.consult Repeat Purchasing by Product Segment %

Consumer Concerns Source: Concerns About Online Shopping

Higher Security Means Higher Spend Verified by Visa Average Transaction 2002 Average e-Commerce Transaction Percent Difference Issuer A: Credit Debit $130 $118 $99 $60 +32% +96% Issuer B: Credit Debit $227 $140 $138 $63 +64% +121% Issuer C: Credit$207$89+133%

Prescriptions nEmbrace payments technology for economic development nE-payments remove friction, increase efficiency => strengthen the economy nSupport evolving structure of u-commerce nStrengthen domestic banking system nReview and align infrastructure with opportunities nEliminate regulatory barriers to innovation

Summary n nElectronic payments enable commerce and economic growth n nUniversal commerce