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GENERAL METHODOLOGY OF MARKET REPORTS

Secondary Market Research

The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are

solely based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and

company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for

all obtained data. As a result, companies gain a precise and unbiased impression of the market situation.

Cross referencing of data is conducted in order to ensure validity and reliability.

The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several

sources. If this is the case, all sources are mentioned on the chart.

The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart.

Definitions

The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact

definition used by the source (if available) is included at the bottom of the chart.

Chart Types

Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main

idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time

period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple

answers were possible, which is noted at the bottom of the chart.

Report Structure

Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents,

management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When

available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional

reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures.

Notes and Currency Values

If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In

some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.

When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR

values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time period. Should the

currency figure be in the future, the average exchange rate of the past 12 months is used.

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METHODOLOGY OF THE CURRENT REPORT

Report Coverage

This report covers the global mobile payment market. It takes into account a wide definition of mobile payment, including payment methods used in mobile

shopping (remote) and in-store (proximity) mobile payment.

Major B2C E-Commerce markets in all global regions are covered, including advanced and emerging, while data availability varied across the countries.

The report includes data mostly published within the first six months of 2016. The exact date of publication of the source is stated on each chart. The time period

which the data refers to differs by source.

Report Structure

The global chapter opens the report, featuring an overview of global mobile payment developments. The rest of the report is divided by regions presented in the

descending order of B2C E-Commerce sales.

Within each region, the countries are also ranked by B2C E-Commerce sales and, where applicable, grouped by advanced and emerging markets. Furthermore,

where available, regional information was also included.

Depending on data availability, the following types of market information are included: mobile payment user penetration, payment methods most used in mobile

shopping, number and volume of mobile payment transactions, devices used to make payments online, information about mobile payment users. Not all the

mentioned types of information are available for each of the covered countries. For selected leading advanced and emerging countries, also online and mobile

payment trends and news about major players, such as payment providers, banks and retailers are presented on text charts.

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DEFINITIONS

MOBILE PAYMENT A wide definition of mobile payments includes remote payments made in M-Commerce and proximity payments made

in-store, such as via QR code scanning and NFC technology.

MOBILE PROXIMITY PAYMENT A mobile payment where the merchant and the consumer are present in the same location and the interaction

between the consumer’s device (card, mobile device) and the POS is conducted using a proximity technology (e.g.

NFC).

NFC Near Field Communication, a set of standards for smartphones and similar devices to create radio communication by

bringing them close together or having them touch each other. In that way, contactless data exchange and

transactions can take place.

CONTACTLESS CARD PAYMENT Proximity payment via a card where the payee and the payer interact using contactless technologies. Contactless

technology is a radio frequency technology which operates at short ranges, enabling user to perform a voluntary

action by approaching two devices and initiating communication between them.

ONLINE PAYMENT Transfer of money made over the Internet following a consumer’s payment command, includes payments for product

and service purchased in (B2C) E-Commerce and M-Commerce.

INSTANT PAYMENTS Electronic payment solutions for retail which are available 24/7/365 and thus result in immediate or close-to-immediate

interbank clearing of transactions and crediting of the payees’ accounts and confirm the payment to the payer after

payment initiation.

DIGITAL WALLET Also known as E-Wallet. A prepaid digital account, allowing users to store money and use it in online or mobile

transactions.

E-MONEY Short for electronic money. Money which is exchanged electronically using digitally stored values.

B2C E-COMMERCE The sale of products (and services) through electronic transactions via the Internet from businesses to consumers.

M-COMMERCE M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through transactions via

mobile devices.

The following expressions and definitions are used in this Mobile Payment market report*:

Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective

charts

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TABLE OF CONTENTS (1 OF 6)

1. Management Summary

2. Global Developments

• Mobile Payment Usage In-Store and Online, in % of Respondents, by Generation, 2015

• Perception of Security of Mobile Payments, in % of Respondents, by Generations, 2015

• Number of Mobile Money Accounts, by Registered and Active, by Selected Regions, in millions, December 2015

• Breakdown of Types of Payments Made with Mobile Money, by Number of Transactions and Value of Transactions, in %, December 2015

• Mobile P2P Money Transfer Transaction Value, in USD billion, 2014 & 2019f

• Number of P2P Mobile Money Transfer Users, in millions, 2014 – 2019f

• Mobile Proximity Payment Transaction Value, in USD billion, 2014 & 2019f

• Number of Proximity Mobile Payment Users, in millions, 2014 – 2019f

3. Asia-Pacific

3.1. Advanced Markets

3.1.1. Japan

• Online and Mobile Payment Trends and News about Players, H1 2016

• Payment Methods Used in Online Shopping, incl. “Payment via Mobile Carrier”, in % of Online Shoppers, March 2016

• Number and Value of Electronic Money Transactions, in millions and in JPY billions, and in % Year-on-Year Change, 2010-2015

3.1.2. South Korea

• Payment Methods Used in Online Shopping, incl. “Mobile Payment”, in % of Online Shoppers, October 2015

• Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, 2014 & 2015

• Purposes of Using Mobile Payments, in % of Mobile Payment Users, September 2015

• Reasons for Using Mobile Payment Services, in % of Mobile Payment Users, May 2016

• Overview of Four Selected Mobile Payment Services, incl. Provider, Launch Date and Number of Users, June 2016

3.1.3. Australia

• Breakdown of Frequency of Using Contactless Payments In-Store, in % of Internet Users, 2015

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TABLE OF CONTENTS (2 OF 6)

3. Asia-Pacific (Cont.)

3.2. Emerging Markets

3.2.1. China

• Online and Mobile Payment Trends and News about Players, H1 2016

• Number of Mobile Payment Users, in millions, and Penetration, in % of Mobile Internet Users, 2014 & 2015

• Proximity Mobile Payment Users, in millions, and Penetration, in % of Smartphone Users, 2014 – 2020f

• Third-Party Mobile Payment GMV, in CNY trillion, and in % Year-on-Year Change, 2012 - 2019f

• Breakdown of Third-Party Mobile GMV by Provider, in %, 2015

• Breakdown of Third-Party Mobile Payment Transaction Volume by Providers, in %, Q4 2015

• Number of Active Users of Selected Mobile Payment Services, in millions, Q4 2015

3.2.2. Taiwan

• Share of Smartphone Users Who Use Mobile Payment Services, in %, 2014 & 2015

• Top 5 Verification Methods Acceptable to Consumers in Mobile Payments, in % of Mobile Payment Users, 2015

3.2.3. India

• Top 3 Mobile Wallet Apps, by Penetration, in % of Mobile Payment App Users, and Average Time Spent Per User Per Month, in minutes,

December 2015 & April 2016

3.2.4. Thailand

• Value of Mobile Payment Transactions, in THB billion, and Volume, in millions, by Bank, Non-Bank and Total, 2010 – 2015

4. Europe

4.1. Regional

• Share of Online Shoppers Who Are More Inclined to Shop More Often from a Store Which Saves Their Payment Details for One-Click

Ordering, by Mobile Shoppers and Non-Mobile Shoppers, by Selected European Countries, the USA and Australia, April 2016

• Share of Internet Users Who Would Feel Confident that Their Money Is Secure If They Used Contactless Payments, April 2016

• Top Locations Where Consumers Would Want to Use Biometric Authentication for Payments, in % of Respondents, May 2016

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TABLE OF CONTENTS (3 OF 6)

4. Europe (Cont.)

4.2. Advanced Markets

4.2.1. UK

• Online and Mobile Payment Trends and News about Players, H1 2016

• Share of Online Card Purchases Made on Smartphones and Tablets, in %, 2014 & 2015

• Breakdown of Frequency of Using a Mobile Phone for Transactional Activities, incl. “Making Payments in a Shop”, in % of Mobile Users,

2015

• Breakdown of Attitude Towards Security of Mobile Payments, in % of Mobile Users, by Age Group, Gender and Total, 2015

• Contactless Payment Statistics, incl. Number of Contactless Cards Issued, by Debit, Credit and Total, in millions, Monthly Spending on

Contactless Cards, in GBP million, Number of Monthly Contactless Transactions, in millions, and Average Value of Contactless

Transactions, in GBP, by Debit, Credit/Charge Cards and Total, Number of Accepting Terminals/Outlets, May 2015 & May 2016

4.2.2. Germany

• Online and Mobile Payment Trends and News about Players, August 2016

• Breakdown of Online and Mail Order Sales, by Payment Methods, in % and in EUR million, 2014 & 2015

• Most Important Criteria When Choosing a Payment Method to Purchase Online, incl. “Simple and Comfortable Usage on Mobile”, in % of

Online Shoppers, 2015

• Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, May 2015

• Usage of and Interest in Mobile Payments In-Store and Payments Based on Biometric Identification In-Store, in % of Consumers, and in %

of Retailers, May 2016

• Share of Smartphone Users Who Used NFC Payment or Could Imagine Using It in the Future, in %, April 2016

• Reasons for Not Using NFC Payments, in % of Smartphone Users Who Have Not Used NFC Payments, April 2016

4.2.3. France

• Awareness of Contactless Payments, and Usage of Contactless Mobile Payments, by Monthly Payment with NFC Card and with NFC-

Enabled Smartphone, in % of Internet Users, 2014 & 2015

• Number of Cards with Contactless Payment Functionality, in millions, May 2015 & May 2016

• Number of Retail Stores with Contactless Payment Terminals, in thousands, May 2015 & May 2016

• Number of Payment Transactions with Contactless Payment Cards, in millions, May 2015 & May 2016

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TABLE OF CONTENTS (4 OF 6)

4. Europe (Cont.)

4.2. Advanced Markets (Cont.)

4.2.4. Spain

• Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, 2014 & 2015

• In-Store Mobile Payments Used, by Type, in % of Digital Shoppers, February 2016

4.2.5. Italy

• Breakdown of Electronic Retail Payments, by Card Payments In-Store and Digital Payments, incl. “M-Commerce Payment” and “Mobile

POS Contactless Payment”, 2013 - 2015

• Contactless Payment Statistics, incl. Number of Contactless Cards in Circulation, in millions, Number of Active Contactless Cards, in

millions, Value of Contactless Transactions, in EUR billion, Number of Contactless Transactions, in millions, Number of Contactless POS,

in thousands, 2012 – 2015

4.3. Emerging Markets

4.3.1. Russia

• Payment Methods Used in Online Shopping, incl. “SMS”, in % of Online Shoppers, 2013 - 2015

• Payment Methods Used in Online Shopping, incl. “SMS”, in % of Online Shoppers, by Gender and Location Type, 2015

• Online Payment Methods Used When Paying Online via Smartphone, in % of Users, March 2016

4.3.2. Poland

• Payment Methods Preferred in Online Shopping, incl. “Mobile Payments”, in % of Online Shoppers, April 2016

5. North America

5.1. Regional

• Breakdown of All Payment Transactions by Payment Methods, incl. “Mobile Devices”, in %, by Country, 2015

• Mobile Payment Platforms Used, in % of Respondents, by Country, 2015

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TABLE OF CONTENTS (5 OF 6)

5. North America (Cont.)

5.2. USA

• Online Payment Trends and News about Players, H1 2016

• General Payment Methods Used, incl. “Mobile Wallet”, in % of Internet Users, March 2016

• In-Person Mobile Payment Value, in USD billion, 2014 – 2019f

• Mobile Payment User Penetration, in % of Mobile Phone Users and Smartphone Users, 2011 - 2015

• Mobile Payment User Penetration, in % of Mobile Phone Users, by Age Group, 2015

• Mobile Payment Uses, in % of Mobile Payment Users, 2015

• Reasons for Not Using Mobile Payments, in % of Mobile Phone Users Who Did Not Use Mobile Payments, 2015

• Perception of Security of Mobile Payments, in % of Mobile Phone Users, 2013 - 2015

• Attitudes Toward Mobile Payments, in % of Consumers, by Generation, 2015

5.3. Canada

• Share of Smartphone Users Who Expect to Make More Mobile Payments in the Next Year, by Gender, Generation and Total, in %, 2015 &

2016

• Mobile Payment Apps Used, in % of Mobile Payments Users, by Gender, Generation and Total, April 2016

6. Latin America

6.1. Regional

• Top 5 Mobile Services That Have Never Been Used by Mobile Internet Users, incl. Payment-Related, in % of Mobile Internet Users, 2015

• Share of Consumers Interested in In-Store Mobile Payments, in % of Surveyed Consumers, by Brazil and Mexico, June 2016

6.2. Brazil

• Online Payment Trends and News about Players, H1 2016

6.3. Mexico

• Share of Banked Internet Users Who Conduct Banking Transactions on Smartphones, in %, 2015

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TABLE OF CONTENTS (6 OF 6)

7. Middle East and Africa

7.1. Regional

• Share of Consumers in the Middle East Who Would Opt for Alternative Payment Methods, in %, and Selected Alternative Payment

Methods They Would Opt for, incl. “Mobile Wallet”, in %, May 2016

7.2. Nigeria

• Number and Value of Internet and Mobile Payment Transactions, in millions and in NGN billion, 2011- 2015

7.3. Kenya

• Mobile Payment Statistics, incl. Number of Transactions, in millions, Value of Transactions, in KES billion, Number of Customers, in

millions, and Number of Agents, in thousands, 2008 - 2015

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1. Management

Summary

13 – 17

2. Global

Developments

18 – 26

3.

3.1.

3.1.1.

3.1.2.

3.1.3.

3.2.

3.2.1.

3.2.2.

3.2.3.

3.2.4.

Asia-Pacific

Advanced Markets

Japan

South Korea

Australia

Emerging Markets

China

Taiwan

India

Thailand

27 – 48

27 – 36

28 – 30

31 – 35

36 – 36

37 – 48

38 – 44

45 – 46

47 – 47

48 – 48

4.

4.1.

4.2.

4.2.1.

4.2.2.

4.2.3.

4.2.4.

4.2.5.

4.3.

4.3.1.

4.3.2.

Europe

Regional

Advanced Markets

UK

Germany

France

Spain

Italy

Emerging Markets

Russia

Poland

49 – 78

49 – 52

53 – 73

54 – 58

59 – 65

66 – 69

70 – 71

72 – 73

74 – 78

75 – 77

78 – 78

5.

5.1.

5.2.

5.3.

North America

Regional

USA

Canada

79 – 92

80 – 81

82 – 90

91 – 92

6.

6.1.

6.2.

6.3.

Latin America

Regional

Brazil

Mexico

93 – 97

94 – 95

96 – 96

97 – 97

7.

7.1.

7.2.

7.3.

Middle East and

Africa

Regional

Nigeria

Kenya

98 – 101

99 – 99

100 – 100

101 – 101

0.8%

0.0%

36.8%

14.9%

24.5%

55.9%

0.6%

19.1%

18.0%

18.6%

24.5%

64.0%

0% 20% 40% 60% 80% 100%

Pre-Paid Card, ElectronicCurrency

Mobile Card

Wire Transfer

Check, Debit Card

Small-Amount Paymentson Mobile Phone Bill

Credit Card

2015

2014

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The share of mobile shoppers in South Korea paying by “Mobile Card”

for mobile purchases reached 19.1% in 2015. South Korea: Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, 2014 & 2015

in % of Mobile Shoppers

Note: does not add up to 100% due to multiple answers possible;

Survey: based on a survey of 2,500 individuals, ages 19+; 99.7% of respondents had Internet-connected mobile devices and 87.0% had smartphones; the survey was dedicated

to mobile payments;15.8% of respondents used mobile payment services in the previous 6 months; question asked: “How do you pay at mobile purchases?”

Source: Bank of Korea cited by Korea JoongAng Daily, May 2016

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Only 6% of mobile phone users in the USA perceived mobile payments

to be “Very safe” in 2015, a slight improvement from 4% in 2013. USA: Perception of Security of Mobile Payments, in % of Mobile Phone Users, 2013 - 2015

in % of Mobile Phone Users 2013 2014 2015

Very Safe 4% 5% 6%

Somewhat Safe 30% 30% 32%

Somewhat Unsafe 27% 28% 27%

Very Unsafe 19% 21% 19%

Don’t Know 18% 15% 15%

Definition: mobile payments were defined as purchases, bill payments, charitable, donations, payments to another person, or any other payments made using a mobile phone. This

includes using your phone to pay for something in a store as well as payments made through an app, a mobile web, browser or a text message.

Survey: based on a survey of 2,341 respondents with mobile phone in 2013, 2,603 in 2014, 2,244 in 2015. The respondents were partially the same. Question asked: “Table 8.

How safe do you believe people’s personal information is when they use a mobile phone to pay for a purchase at a store?

Source: Federal Reserve, March 2016

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