1. Payment Workshop Smartran Ltd 18/09/07

3. Payment Types Direct Debit (& Standing Order) Credit/Debit Card On line bank payment On line e-payment Bill Payment (chq, cash or card at bank/PO) Cash Collection Retail cash or cheque

4. Cards Replacing Cash Product Purchase/ Retail Payment –Cash –Cheque –Debit/Credit Card Contactless EMV –Pre-paid debit card –On line e-payment –e-purse (eg sQuid) Service Payment –Bill payment by cash or cheque –Credit/Debit Card –Bank payment –On Line e-payment –Cash Collection –Stored Value (eg Oyster, school meals)

5. Cards replacing Cash Flexibility Low High Value High £10 Low Debit/ Credit Transport Pre-pay sQuid Local E-purse Cash New Payment Method Contactless EMV

6. Bill Payment with Cash Significant minority expected to continue to prefer paying living expenses by cash (cash economy) Focus is on collection costs & convenience of paying bills with cash (rent, CTax, services charges etc) Alternative service providers include: –Alliance & Leicester (via PO & Payzone) –AllPay (via PO & Payzone) –Cash Offices (where retained) –Co-op (via PO & PayPoint) –Pay Point direct –Post Office direct Differentiators are location coverage, cost of cash collection and flexibility of associated card scheme