1. U-commerce: Fueling economic growth with electronic payments Mark Burbidge, SVP and GM, e-Visa Joint UNCTAD - UN ESCAP Asia Pacific Regional Conference 21 November 2002

2. Every economy needs secure, efficient and reliable payments to grow Electronic Payment Enables Commerce

3. Visa: World’s Largest Payments Engine One billion cards in use globally 805,000 ATMs worldwide US$2.3 trillion in global card sales in 2001 More than 21,000 members worldwide 40 payments each second in Asia Pacific More than 50% of e-commerce transactions are made with Visa 25 billion transactions a year

4. Universal Commerce anywhere, anytime, any way

5. POS e-commerce Functionality Merchant Terminals, MOTO, PCs, Cell Phones, PDAs, Trading Hubs, etc. Access points Credit, Debit, Digital Wallets, Multiapplication Chip, XML, etc. u-commerce m- commerce Standards Security Trust, confidence, ease of use Putting the Infrastructure in Place

6. Defining a Secure Payment Security Authentication Confidentiality Integrity

7. Online Retail Market is Growing US$M Source: IDC 2002 Forecast B2C Commerce Market Size Asia Pacific (exclude Japan)

8. Trend: Internet Usage Experience Source: www.consult (data for Hong Kong) Regular Internet Users’ Shopping Experience

9. Trend: Online Shoppers are Young Source: www.consult, data for Taiwan Percentage of Online Shoppers by Gender Less than 15 Over 55 50 to 54 45 to 59 40 to 44 35 to 49 30 to 34 25 to 29 20 to 24 15 to 19 Male 1% 8% 34% 16% 6% 1% 0% 1% 2% 4% 11% 22% 33% 20% 5% 0% 33% Female

10. Trend: Women are Catching Up Internet users (China) %

11. Trend: Proven Market Place Source: www.consult, data Hong Kongwww.consult Repeat Purchasing by Product Segment %

12. Consumer Concerns Source: www.consult Concerns About Online Shopping

13. Higher Security Means Higher Spend Verified by Visa Average Transaction 2002 Average e-Commerce Transaction Percent Difference Issuer A: Credit Debit $130 $118 $99 $60 +32% +96% Issuer B: Credit Debit $227 $140 $138 $63 +64% +121% Issuer C: Credit$207$89+133%

14. Prescriptions nEmbrace payments technology for economic development nE-payments remove friction, increase efficiency => strengthen the economy nSupport evolving structure of u-commerce nStrengthen domestic banking system nReview and align infrastructure with opportunities nEliminate regulatory barriers to innovation

15. Summary n nElectronic payments enable commerce and economic growth n nUniversal commerce