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 )

€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

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

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

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

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

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

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

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

Visa payWave growth is strong in the UK 10

…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

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)

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

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