a brand

of

Contactless

Cashless

CardlessEvolving Consumer

Demands and the Future

of EBT

Overview

1

What we will cover…

Joseph Barna

EVP, Government Payments

goEBT, a brand of CDE

Thanks for joining us! During this session, we will discuss three

major changes that EBT must address to keep up with changing

consumer demands.

• CONTACTLESS: EBT cannot be contactless until account security can be managed by a method other than PIN entry.

• CASHLESS: How could QR codes balance the touch-free demand of consumers while protecting their sensitive account data?

• CARDLESS: Could mobile wallets make EBT more easily accessible to the 56% of consumers who want to use their phones as

their primary method of payment?

Key Consumer Trends Impacting

Retail and Payments

2

Online, digital, BNPL Afterpay sales hit $1 billion in value for Q3 2020.

65% of Afterpay customers are

either millennials or Gen Z

members.

Klarna partnered with Google

to pair its BNPL mobile app

with Google Pay.

Klarna now has 7.9 million

customers within the U.S (as of

June 2020).

• 47% of consumers in large cities have shifted to shopping for retail products online

• 63% of millennial shoppers have used digital wallets to make purchases between June and August 2020

Source: NEW DATA: Five Payments Innovations For Winning The Digital-First

Shopper, https://www.pymnts.com/news/retail/2020/paypal-how-we-shop-five-digital-payment-innovations-that-can-win-digital-shoppers/

Key Consumer Trends Impacting

Retail and Payments

3

Smartphone adoption

• 56% of consumers expect their phones to become their primary payment method (2019)

• 29% of consumers now prefer to pay with

contactless payment methods

• COVID-19 has revitalized interest in

QR codes for payments

• CVS, Walmart allow customers to use

mobile payments and QR codes

Source: Anatomy of a Consumer Payment, https://www.pymnts.com/wp-content/uploads/2020/08/PYMNTS-Anatomy-Of-A-

Consumer-Payment-August-2020.pdf

4

Source: Anatomy of a Consumer Payment, https://www.pymnts.com/wp-content/uploads/2020/08/PYMNTS-Anatomy-Of-A-Consumer-

Payment-August-2020.pdf, 2. NEW DATA: Five Payments Innovations For Winning The Digital-

First Shopper, https://www.pymnts.com/news/retail/2020/paypal-how-we-shop-five-digital-payment-innovations-that-can-win-digital-

shoppers/

• COVID-19 pandemic has sparked a need for touch-free experiences

• Surge in online ordering

• Online purchasing pilot program for EBT

• Digital payments projected to reach

$4.4 trillion by end of 2020

• 80 million U.S. adult consumers have switched to online shopping

Key Consumer Trends Impacting

Retail and PaymentsSafety and hygiene

Key Consumer Trends Impacting

Retail and Payments

5

Three major trends EBT must address

CONTACTLESS

› Consumers want safer, touchless

transactions

› Solutions for secure in-store

transactions without

PIN

CASHLESS

› Consumers want

to use phones as

primary payment

method

› Shift toward mobile wallets

CARDLESS

› Consumer adoption of QR

codes

› QR codes offer a balance of security

and touch-free

Contactless

6

Trend toward safer, cleaner, faster transactions

• 69% increase in no-touch payments since January1

• 79% of consumers surveyed use contactless payments2

• 74% will continue to use contactless post-pandemic2

• 61% of U.S. cardholders say that being able to pay contactless is at least somewhat important.3

• 63% of millennial shoppers have

used digital wallets to make purchases

during the last three months4

safer

cleaner

faster

Sources: 1. CS News, State of Retail Payments study, NRF and Forrester 2. Mastercard Global Consumer Study, APRIL 29, 2020

3. Anatomy of a Consumer Payment 4. NEW DATA: Five Payments Innovations For Winning The Digital-First Shopper

Blake Rosenthal

Executive Vice President,

Head of Mastercard Acceptance Solutions

“Contactless offers consumers a safer,

cleaner way to pay, speed

at checkout, and more

control over physical

proximity at this critical

time.

Contactless

7

Two touchpoints…

Touching the PIN Pad

Touching the Receipt

PIN ENTRY RECEIPTS

Cashless

8

Sources: 1. Anatomy of a Consumer Payment 2. New research suggests the coronavirus could live on cash, pushing consumers toward

digital payments, https://www.businessinsider.com/coronavirus-remaining-on-cash-may-accelerate-cashless-adoption-2020-10 3. The 2020 McKinsey Global Payments Report

Apple to broaden the

mobile walletpayment

capabilities of iPhones

31% of U.S. merchants

considerthemselves

cashless as of April 2020

Cash usage was already

declining in major markets prior to COVID-19

Cardless

9

QR codes are now accepted

• EBT users only need a smartphoneto scan QR code

• QR codes simplify transactions for merchants

• Increased safety of transactions

• ExxonMobil has contactless and cardless payment at pumps

Sources: 1. Flipping the Model for EBT Transactions with QR Codes by Naveen Nukala, https://www.fisglobal.com/en/insights/what-

we-think/2018/july/ebt-transactions-qr-code, 2. ExxonMobil Brings New Contactless Payment Technology to the

Pump, https://csnews.com/exxonmobil-brings-new-contactless-payment-technology-pump

Takeaways

10

Key trends impacting the retail space: Online, digital, BNPL, smartphone adoption,

and safety & hygiene

EBT cannot be contactless until account security can be managed by a method other than PIN entry

QR codes simplify transactions by allowing merchants to accept payments beyond

cash or card

As businesses and consumers gradually shift away from cash and credit card transactions, digital payment methods are seeing a rapid increase in usage

worldwide

11

Q&Awww.goEBT.com

Thank you!

Joseph Barna

EVP, Government Payments

goEBT, a brand of CDE

12

www.goEBT.com