1. Direct Debits in Europe The merchants perspective DRF Europe April 25-26, 2006 - Basel Ronald Wallroth GlobalCollect Sven krahn Lycos

2. Agenda Non face-to-face payments facts and figures Merchants challenges and expectations Direct Debit key benefits Lycos Europe business case Questions and discussion

3. GlobalCollect, International Payment Services Over 12 years of successful track record of payment collection and reconciliation worldwide One single technical and administrative interface enabling online merchants to accept: »Credit and debit cards »Real-time and offline bank transfers »Direct debits »Invoices and e-invoices »Cheques GlobalCollect is privately owned and independent from its banking partners 60 million transactions in 2005 and over 40% growth expected in 2006

4. Companies with successful strategies

5. Payment behaviors per country Source: Bank for International Settlements - March 2005

6. Only 64% of European online shoppers own a credit card Source: Forrester 2004

7. Online payment collection challenges SPEED CURRENCIES SECURITYINSTRUCTIONS & LANGUAGES PAYMENT METHODS DATA PROTECTION

8. Global E-payment landscape Important regional cultural differences in payment behaviors Difficult break through of new payment methods Slow harmonization of payment processes through bank collaboration and international legislation Currency convertibility issues International transfer of funds barriers

9. The choice of payment methods is large Local bank transfers: 192 countries Real-time banking: 10 countries Credit & debit cards: 158 currencies Direct Debits: 20 countries Checks: 50 currencies

10. Direct Debits General  Pull mechanism  Fast processing (same day)  Mandate direct debits used for recurring payments  Non-pre-authorized direct debits used for online payments. GlobalCollect specific  Direct Debit supported for 9 countries  Reporting of 99,9% of bank reversal in 3 business days.  Detailed reporting of reversal by banks and reversal by customers Country specific Non-pre-authorized direct debits:  Germany  Spain  The Netherlands  Austria Country specific Non-pre-authorized direct debits:  Germany  Spain  The Netherlands  Austria

11. Payment methods comparative analysis Credit Card Direct Debit Bank Transfer Real Time Banking Cheque InitiatedCustomer Speed Costs Charge back risk Fraud Risk

12. Thank you for your attention ! Sven Krahn European Director Billing & Customer Services Lycos Europe GmbH Tel.: +49 5241 807 1361 Fax: +49 5241 80 67 1361 Email: sven.krahn@lycos-europe.com Ronald Wallroth Business Development Manager GlobalCollect Tel.: +31 6 538 616 20 Fax: +31 23 554 86 66 Email: ronald.wallroth@globalcollect.com