1. Emerging Technologies in Payments

2. 2 April 02, 2013 COMPANY CONFIDENTIAL Open Payments Magstripe NFC EMV Mobile Barcodes NFC Proximity m-Web Online Web s-Commerce Overview

3. 3 April 02, 2013 COMPANY CONFIDENTIAL What are Open Payments? The usage of standard payment brands (credit and debit) on a variety of transit devices –Methods: Magstripe NFC EMV Open Payments

4. 4 April 02, 2013 COMPANY CONFIDENTIAL NFC –NFC exists now, and has for several years Amex = ExpressPay Discover = Zip MC = PayPass Visa = payWave –Beginning to overlap with EMV Open Payments

5. 5 April 02, 2013 COMPANY CONFIDENTIAL EMV –“Europay MasterCard Visa” Standard for smartcard payments –Schedule Processors must be ready this month, April 2013 POS liability shift Oct 2015 Gas Stations and ATMs liability shift in Oct 2017 Issuers have some 50 cards available now, this offering will grow by the date of the liability shift Open Payments

6. 6 April 02, 2013 COMPANY CONFIDENTIAL What is Mobile? –Barcodes –NFC –Proximity –mWeb Mobile

7. 7 April 02, 2013 COMPANY CONFIDENTIAL Barcodes –Formats: QR, PDF, Aztec, etc. –APP based, SMS based NFC –Most are PayPass Compatible Google Wallet ISIS Blaze –Some have Proprietary options Mobile

8. 8 April 02, 2013 COMPANY CONFIDENTIAL Proximity –Used by Square and GroupOn –very new, current generation not accurate enough mWeb –Websites aware of the browser used –Low cost of entry –Can use barcodes to further facilitate entry Mobile

9. 9 April 02, 2013 COMPANY CONFIDENTIAL Why Online? –Still has the greatest impact and the furthest reach –Web –sCommerce Online

10. 10 April 02, 2013 COMPANY CONFIDENTIAL Web –Simple Status Quo for transit –Sophisticated Future (e-Fare) –can meld all the fare media management into one interface s-Commerce –evolving, but at some point, will riders buy other riders tickets, “follow” them, or form groups? Online