Visa Youth Prepaid Cards and financial capability Visa Europe Public This information is not intended, and should not be construed, as an offer to sell, or as a solicitation of an offer to purchase, any securities

European youth market 12 – 17 : 64m 18 – 24 : 31m There are 95m young people aged 12 – 24 living in Europe representing 17% of the total population. 12 – 17 : 64m 18 – 24 : 31m Forward Thinking : Quantifying the Prepaid Opportunity in Europe August 2009

Factors influencing youth payments Increasing disposable income Dependence on parents Influence of parents Internet Forward Thinking : Quantifying the Prepaid Opportunity in Europe August 2009 3

Visa prepaid youth products Under 18’s 18 - 24 71% of European teenagers receive a monthly allowance Average allowance is €35 per month A prepaid card loaded by parents Substitute for cash allowances and pocket money €36bn pa cash spend Strong preference for debit over credit due to debt concerns 50 – 60% of students have part-time jobs A general purpose card loaded either by themselves or by parents/ employers click for more information click for more information

Visa youth prepaid card : Under 18s Parental involvement (website, consent for card application, access to spend data, ability to set spend limits, SMS alerts) Load and spend – can only spend what has been loaded to the card Daily/weekly/monthly spending limits Mandatory blocking for certain merchant categories Sms alerts Financial education

Visa youth prepaid card: 18 to 24 Use it to pay anywhere Visa is accepted or at an ATM Financial education Top – ups from cardholder, parents, employers SMS alerts Spending limit choices Help with budgeting Load and Spend – no risk of going overdrawn Return to Youth Products

Cardholder Benefits Convenience Independence Security Acceptance Benefits to youths Benefits to parents Convenience Buy what you want when you want to but keeping spending under control Provides young people with easy access to funds using a trusted payment brand Independence Allows young people to have the financial independence they seek A powerful tool for parents to use as part of financial education Security Safer than carrying cash Funds can be added on a regular basis and parents can track spending Acceptance Accepted anywhere Visa is – home and abroad Trusted and widely recognised payment brand

Visa Prepaid web pages http://www.visaeurope.com/personal/youthprepaid/main.jsp Back

Financial education tools available Help foster money management skills Developed by independent financial education experts Teaching packs for use in schools Online learning module for schools Budget tool Money Game

Budget Buddy http://www.visaeurope.com/personal/youthprepaid/budgetbuddy.jsp Back

Money Game http://www.visaeurope.com/personal/youthprepaid/moneygame.jsp Back

Money Game

Money Game

Money Game

Money Game

Money Game

Money Game

and Visa working together NIACE is a membership-led voluntary organisation Our mission is to promote adult learning – more, better and different opportunities to learn Our 700 members include colleges, universities and voluntary organisations 250 staff working throughout UK Our work includes: Advocacy – working with policy-makers at all levels Research – finding out what works best for adult learners Supporting educators with training and resources Partnerships with other sectors Our partnership with VISA is the first in the banking sector Financial services companies have an important role to play in financial learning

http://www.visaeurope.com/personal/youthprepaid/financialed.jsp

Managing Money

Managing Money

Managing Money

Managing Money

The Visa Prepaid Financial Education Plan Schools programme Worksheets Lesson plans Developed by education professionals Staff volunteering Encourage involvement from staff at Visa and our Member banks

Thank you Caroline Birchinall Howard Gannaway Senior Manager, Head of Prepaid Proposition Development Visa Europe Howard Gannaway Research Fellow in Financial Education National Institute of Adult Continuing Education, UK