1. 1 @WeRRestaurants /RestaurantDotOrg /NationalRestaurantAssociation Restaurant.org

2. 2 Mobile Payments in Restaurants MasterCard, Reserve, Sbraga Dining, National Restaurant Association March 31, 2016

3. 3 Introductions and Housekeeping

4. 4 Introductions Pablo Cohan Vice President of Product, MasterPass MasterCard Greg Hong CEO Reserve Ben Fileccia Director of Operations Sbraga Dining

5. 5 OVERVIEW Mobile Payments in Restaurants

6. 6 DEFINITION: “Restaurant Industry” All meals/snacks prepared away from home, including all takeout meals and beverages.

7. 7 The Industry Mosaic Industrial plants Hospitals and nursing homes Schools and universities Airlines Recreation and sports centers

8. 8 Why Mobile Matters Linking Payment to Loyalty Customer Relationship Manager “Mobile payment is growing 10 times faster than mobile banking ever did, accelerated first by retailers, and we are just getting started.” – Richard Crone 210% Increase in total value of US mobile payments this year - eMarketereMarketer

9. 9 Smart Phone / Tablet Ownership or Usage All Adults75% 18-3487% 35-4487% 45-5479% 55-6465% 65+49% Source: National Restaurant Association, 2015

10. 10 Restaurant Technology Usage Percent of Adults Look up restaurant locations, directions and hours of operation 83% Look at menus75% Read reviews from apps or sites like Yelp and TripAdvisor 55% Order takeout or delivery directly from a restaurant’s website or branded app 51% Use rewards or special deals50% Source: National Restaurant Association, 2015 – Base own/use smartphone/tablet

11. 11 Percent of Adults Make reservations43% Look up restaurant nutrition information42% Pay for your meal26% Order takeout or delivery via an aggregate service such as Seamless or GrubHub 22% Source: National Restaurant Association, 2015 – Base own/use smartphone/tablet Restaurant Technology Usage

12. 12 EMV Snags Costs to upgrade Amount of fraud in restaurants Leapfrog to mobile payment Webinars: Restaurant.org/Webinars More info: Restaurant.org/PaymentsHQ

13. 13

14. 14 Tableservice Restaurants

15. 15 SOLUTION PROVIDERS Marketplace

16. 16 Reserve

17. 17 SECURITY Tokenization & Encryption

18. 18 ©2015 MasterCard. All rights reserved. Digital fraud is increasing and many consumers remain concerned about the security of shopping with their devices 33% of users citied “concerned about security” as the reason they switched from mobile device to another device to complete a purchase. 2 Source: 1 CMSS Report, “Mobile Payments is Really Here,” October, 2015. 2 MasterCard Data Warehouse, 2013 POINT OF SALE-RELATED FRAUD DIGITAL FRAUD 25 % Expected increase in online fraud costs as US EMV shifts fraud from POS. 2 3 ×3 × Digital fraud rate vs. POS. 2

19. 19 MASTERPASS GLOBAL DIGITAL COMMERCE PLATFORM MasterPass is a global digital commerce platform enabling consumers to look no further than their own trusted bank to make fast, seamless and secure digital payments across devices and channels anywhere they want to shop. ©2015 MasterCard Proprietary and Confidential

20. 20 ©2015 MasterCard. All rights reserved. Advanced Security Capabilities MasterPass provides advanced security through a multi-layered approach that can include issuer verification of the consumer, card tokenization and EMV-like technology. These measures deliver greater data protection across channels and at every digital touch point. Issuer verification Verification of the cardholder and card Card tokenization Card can be converted to a unique token assigned to each device Issuer authentication Bank-approved authentication during checkout EMV-like cryptography For both contactless and mobile in-app payments MasterCard fraud monitoring Sophisticated prevention and detection tools Certain capabilities under development

21. 21 WRAP UP Mobile Payments in Restaurants

22. 22 Questions?

23. 23 @WeRRestaurants /RestaurantDotOrg /NationalRestaurantAssociation Restaurant.org