©2013 MasterCard. Proprietary and Confidential Understanding the Financial Value of Commercial Card Acceptance to Suppliers Marlon Dungo, B2B Acceptance June 2013

©2013 MasterCard. Proprietary and Confidential Supplier Acceptance Research MasterCard completed research to better understand the benefits of commercial card acceptance to Suppliers – “Bottom-line” cost/process efficiency value (Dec 2012) – “Top-line” sales and loyalty value (March 2013) Surveys – Interviewed 50 AR professionals in US for “Bottom-line” research – Surveyed 154 purchasing managers in US for “Top-line” research

©2013 MasterCard. Proprietary and Confidential % of Mentions by Interviewees Shifting the Mindset of Acceptors and Non-Acceptors

©2013 MasterCard. Proprietary and Confidential Commercial Cards and the Order-to-Cash Process COMPONENTS CARD AT POP OTHER COLLECTIONS METHODS Trade Credit Extension PO Receipt Invoice Production & Delivery Payment Receipt Payment Processing & Bank Receipt of Funds ORDER-TO-CASH CYCLE COMPONENTS FULLY LOADED COSTS PER $500 TRANSACTION WIRE $43.22 CHECK $33.17 ACH $32.80 CARD $20.88 Cost of Collections Methods (Following Fulfillment of Goods and Services) Cost of card acceptance should be compared to costs incurred for more traditional collections methods

©2013 MasterCard. Proprietary and Confidential Key finding: Study estimated that card acceptance at the point-of-sale is 37% less costly than using other payment collections methods – yielding savings of $12 on a $500 transaction Source: Acceptance Matters, and Now We Know By How Much, MasterCard & Kaiser White Paper, Dec 2012 Other findings:  Card acceptance provides a similar sized net benefit regardless of the funds transfer tool being replaced – e.g. check vs. ACH vs. wire  The bulk of value from card acceptance lies in its use as a pre-payment tool – providing revenue assurance against bad debts  Early payment discounts are often less efficient for Merchants than offering a card payment option $21 $33 “Bottom line” Cost-related Benefits of Accepting Cards $12

©2013 MasterCard. Proprietary and Confidential Suppliers stand to gain additional revenue by accepting cards from business customers Non-accepting Suppliers risk losing order volume to card-accepting Suppliers Card acceptance leads to improved customer satisfaction and account longevity Suppliers can use card acceptance to phase out early pay discounts Source: Acceptance Matters – And Your Customers Agree, MasterCard & Kaiser, March 2013 “Top line” Revenue and Loyalty Related Benefits of Accepting Cards 49% of Buyers indicated that they would increase purchasing volume if their current non-accepting Suppliers began accepting cards 55% of Buyers indicated that they were more likely to select a Supplier that accepts card versus one that does not in the same spend category 82% of Buyers indicated an increase in satisfaction due to card acceptance 51% of Buyers displayed willingness to give up their current early pay discount in favor of paying with card at the point of purchase

©2013 MasterCard. Proprietary and Confidential Making some assumptions, our Supplier Acceptance Calculator points to a significant net benefit of card acceptance… Targeted Receivables Early Pay Discount Avoidance Benefit Speed of Pay Benefit Process Efficiency SavingsTotal Risk Management Benefit Merchant Discount Fee $200M $438K $1.9M (*7% cost of funds, DSO 60) $434K $5.4M (*2.7% Bad Debt ) $4.0M (*2% MDR) Total Savings ~$8.1M Total Cost ~$4.0M Net Savings ~$4.1M Savings associated with card acceptance Cost of acceptance Source: Kaiser Research/ Thomson Financial Database 2012 (Bad Debt as % of AR) For illustrative purposes

©2013 MasterCard. Proprietary and Confidential