2. Mexican Internet Association, AMIPCI www.amipci.org.mx The Mexican Internet Association (AMIPCI) was founded in 1999. It integrates the most influential companies in the promotion and development of the Internet Industry in Mexico. The AMIPCI is organized in different working committees in charge of carrying out the activities entrusted to them by the members. Their objectives translate in direct services and benefits for the Association as well as general industry participants.

3. AMIPCI white papers Internet Habits. e-Commerce New Technologies Internet Banking Personal Data Security Digital Marketing and Social Networks Mobile Commerce Internet Job-posting www.amipci.org.mx

4. México’s Internet users 20132012201120102009200820072006 51.2 45.1 40.6 34.9 30.6 27.6 23.9 20.2 Millions of people, Dec. 2013 Source: INEGI and AMIPCI + 13 %

5. Electronic appliances (TV, Blu-ray, etc.) Mobile devices (iPod, PSP, etc.) Tablets PC Mobile phones 20 % 18 % 13 % Smartphones 12 % Laptop Gaming consoles Other 59 % 57 % 49 % 27 % 1 5 of 10 Internet clients access through smartphones 5 of 10 Internet clients access through smartphones Devices people use to connect to the Internet

6. Same persons use different devices during the day Mix of Internet access devices

7. Migration to Mobile devices Pages viewed on mobile devices: 23 %

8. México’s on-line Banking

9. 51.2 Million of internet users 2.1 Bank accounts Avg. per person 64% people older than 18 yrs. 32% On-line banking users 53% have some banking product On-line banking Mx.

10. Main reasons why people DON’T use on-line banking I rather use a call center I don’t know what it is Company firewalls I don’t think it’s safe enough I like going to the branch It’s difficult 54% 25% 12% 19% I don’t want to pay fees I share computer I don’t need it Registration process is difficult I don’t have Internet access Other 49% 13% 17% 5% 14% 7% 6%

11. Know if my bank offers this service Additional information User name & password Lower commisions Token Must be easier to use 39 % 42 % 28 % 16 % 18 % What do they need to start using on-line banking?

12. New products Investments Bank product information Own accounts transfers Payments (phone bills, electicity) Product or services payments 55 % 52 % 51 % Same bank transfers Other bank transfers Credit card payments Local Tax payments Simulators Payroll processing 54 % 34 % 15 % 19 % 12 % 11 % Other Federal Tax payments 10 % 3 % On-line banking transactions

13. Mobile market

14. Compare product overviews through e-mail Codebar scanning Price comparison prior to buying Product feature research Buying an item 62% Finding nearest stores Product reviews/recommendation on web sites Product reviews/recommendations on social networks apps or sites Share product overview on social networks sites or apps 64% Price comparison during purchasing process On-line banking transactions 62% is from top 5 categories 71% 67% 71% 65% 52% 55% 51% 52% 48% 54% 45% 49% 41% 43% 41% 45% 31% 35% 28% 33% Accessing same-day offers apps Smartphone Tablet

15. Computer Software Books and Magazines (printed) Sports and Fitness Travel Digital content downloads Videogames, Consoles and Accessories $568 $221 $186 $136 Event Ticket Purchase Clothing and acccesories Furniture, Appliances and Equipment Electronic equipment (PC peripherals not included) Office Supplies Toys and Hobbies $502 $129 $86.3 $ 67.4 $63.4 48.1 $ 46.3 $45.1 Music, movies and videos Jewlery and watches $44.5 62% is from top 5 categories $39 Estimated expenditure ( MM Pesos) on mobile devices Source: Custom Research comScore – July 2014

16. Age range Information considering transactiones through mobile devices.

17. Socio-economic Status This proves that using mobile devices for purchasing is not exclusive of people with high socio-economic status

18. Total purchases Digital downloads Clothes and accesories Books and Magazines Computers Software Electronics XXXXX Tickets Flowes and gifts Furnitures and electronics Services Home and garden Jewlery and watches Music, movies and videos Office Sports and fitness Toys and Hobbies Travel Videogames and accessories Other % expenditures on Mobile Devices (per category) Source: Custom Research comScore – July 2014

19. Conclusions

20. Business Opportunities Several companies with mobile payment solutions have directed their products recently to small and medium sized businesses People are looking for benefits from the financial institutions where they get their payroll deposits: Lower commissions on ATMs On-line Banking Multi-channel platforms Biometrics Different economic levels * Source: AMIPCI and COFETEL On-line Banking Conclusions

21. Mexican consumers ARE using their mobile devices: But they think their internet connection is slow and data plan rates are very expensive They are multi-platform Use their mobile device as a product research tool Would like to access through native apps (or even responsive design portals) We have to improve user experience in transactions on mobile devices. Average ticket in digital transactions is still low. Mobile market penetration grew from 13.9% in 2000 to 88.3% in 2013 (6.27 Millions of tablets) Until Q1 of 2014, 85% of mobile lines were pre-paid and 15% were post-paid. Mobile market * Source: AMIPCI and COFETEL

22. Sylvia Montano US Embassy Sylvia.Montano@trade.gov Julio Vega Amipci, General Director director@amipci.org.mx www.amipci.org.mx César Pallares VP Financial Services Comitee banca@amipci.org.mx cpallares@transparentia.com @cjpallares Contact information + http://negocioselectronicos2015.blogspot.mx