1. Next generation payments How far can we become cashless
Next generation payments How far can we become cashless? Peter Ayliffe President and CEO Visa Europe )

2. €1 trillion Point of Sale (POS) spend €1 in €8 Spent on a Visa card
About Visa Europe
A European not for profit payment association
Exclusively owned and operated by 4,000 European payment providers
€1 trillion Point of Sale (POS) spend
€1 in €8 Spent on a Visa card
0.049% Fraud to sales ratio Down from 0.057%
25 billion Transactions
10 billion Processed by Visa Europe

3. Needs Channels Behaviours Motivations Technologies Environment Change…
Agenda
Change…
Needs
Channels
Behaviours
Motivations
Technologies
Environment

4. The world’s first ubiquitous technology?
4.8 billion+ mobile phones
2.5 Billion TVs
2.2 Billion Visa Cards
1.3 Billion Internet users
800 Million PCs
130 Million iPods
Source: GSM Association; ICT Research; Morgan Stanley – Global Internet Trends

5. Payments – Debit is more popular than cash in the UK
Value Total payments values £ billions
Total payments volumes millions
ACTUAL
FORECAST
ACTUAL
FORECAST

6. Growth in new channels and services
Visa Europe Point of Sale transactions

7. Growth in new channels and services
Future growth will be driven by:
Mobile and e-commerce and the convergence of these channels
Underpinned by EMV and contactless

8. Why Visa payWave ? 85% of payments below €20 are made with cash
Low Value Payment - POS opportunity is > €700bn
Competitive - proposition is quick and secure compared to cash
Provides the infrastructure for mobile payments

9. Value proposition of Visa payWave
Speed: Transactions in less than a second 1
Security: Better than cash 2
Acceptance: Global interoperability 3

10. Visa payWave growth is strong in the UK10

11. …and we’re accelerating as we move into 2011
Transit will be a key driver
TfL committed to 8,000 buses accepting contactless cards in London
Retail
New - national roll out of acceptance at all McDonalds
More national chain payWave roll outs in 2011
60,000 terminals projected by year end (35% of the total POS base)
Issuance
20 million cards projected by year end (20% of the total card base)
Contactless in Europe 11

12. World’s first ubiquitous technology?
4.8 billion mobile subscribers globally with 1,000+ new customers per minute
1.3 billion new mobile devices sold globally in 2010
1 billion+ smartphones expected in the market by 2011
3.5 billion users of mobile internet in 2015 vs 400 million today
Source: GSMA (Feb 2009), ITU (2010), Global Wireless Data Market Update – 2009, Chetan Sharma Consulting, March 2010, Les Echos (May 2010)

13. Everyone has a mobile phone
UK card and mobile phone penetration by age*
(% in 07-08)
* RDSi Youth Survey 2007

14. The Future is Mobile Enabled by EMV, contactless, e-commerce and virtual wallets