From Electronic to Digital. © 2014 MasterCard. Proprietary and Confidential. “FRIENDLY” SHOWROOMINGFULLY DIGITAL Mobile is a major shopping tool and growing

From Electronic to Digital

© 2014 MasterCard. Proprietary and Confidential.

“FRIENDLY” SHOWROOMING FULLY DIGITAL

Mobile is a major shopping tool and growing

Smartphone shoppers reported the following activity over a 6-month period*.

*Source: GfK “The Mobile Consumer” study, 2013.Q17 During your shopping occasions over the past 6 months, have you used your [DEVICE] for any of the following?

31%saw product in store,

but purchased on phone from same store’s site.

33%saw product on phone,

and purchased on phone without a store visit.

37%saw product in store,

then purchased product on phone from other

retailer or online.

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One third of the time, smartphone

shoppers are going fully digital

with their purchases.

SHOWROOMING


Payment experience is suboptimal

1 Inc. “Your Website is Scaring Customers Away. 5 Easy Ways to Fix It,” December 2013.2 LivePerson, “The Connecting with Customers Report: A Global In-depth Study of the Online Customer Experience,” January 2013.

97%of shoppers will

abandon items in their shopping cart when shopping with

a mobile device.1

$1.79Tworth of goods wereabandoned by online shoppers in 2013.1

Top reasons online consumers abandon their shopping carts include:2

• Complicated registration/login process

• Checkout problems

• Website security

Today’s customers are looking for convenience, security, and a seamless shopping experience.

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Consumers are looking for simpler ways to pay


Social Web on Mobile Payments

From being the most negative topic (20%) in 2012 to ranking as very positive in 2014 (91%)

MasterCard reasearch in partnership with Prime Research

INTRODUCING MASTERPASS


What is MasterPass?

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MasterPass is a digital service that lets consumers pay with their favorite digital wallet - with any payment card, anywhere, on any connected device - through an enhanced shopping experience that is as simple as a click, tap, or touch.


MASTERPASS WALLETS

More than a Wallet - a Wallet Acceptance Network

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DIGITAL ACCEPTANCE

POS*

Online

In-store Remote


2. Shop

4. PaymentType

5. PaymentDetails

6. ShippingInformation

7. Billing Information

8. Sale Completed

3. Checkout

1. Searchand Discover

SECURITY CONCERNS

PRIVACY CONCERNS

TOO MANY STEPS

!!

!

MasterPass Optimizes the Checkout Experience Which Can Contribute to Increased Sales

MasterPass provides a swift, seamless, consistent checkout experience across all connected channels—computer, tablet, mobile—and, over time, will extend to POS and offer value-added services.

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1 Begin Checkout

2 Login

3 Confirm Details

4 Complete and Connect

MasterPass Reduces Steps at Checkout to Help Increase Sale Conversions

Checkout starts by clicking the “Buy with MasterPass” button.

MasterPass takes the hassles out of the checkout process and manages payment card info securely.

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1 Initiate checkout

2 Review pre-checkout data

3 Wallet login

4 Checkout completed

How It Works: Consumer Experience via Connected CheckoutOnce a merchant and wallet are connected, the consumer’s return shopping experience is complete in just a few clicks because account and payment information is already populated.

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1 Checkout initiation

2 Reviews pre-checkout data

3 Checkout completed

How It Works: Consumer Experience via Express CheckoutExpress checkout API offers a quick checkout experience for returning shoppers on the merchant’s site.

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MasterPass Fits with Your Current Card Processing and Checkout Flows

MasterPass allows secure transaction processing using existing card processing flows.

• No interruption from the transaction data you normally see

• No complicated setup needed unlike with some wallets

MasterPass works with existing acquirers/payment gateways, unlike some competing wallets that require the use of acquirers that are affiliated with their wallet service.

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PAYMENT PROCESSING STAYS THE SAME

PAYMENT GATEWAYSTAYS THE SAME


MasterPass Delivers Multi-Channel Experiences for Today and Tomorrow

CURRENTSHOPPING CAPABILITIES

FUTUREADDITIONAL CAPABILITIES

Framed checkout within merchant mobile app for easy shopping

Mobile- and tablet-optimized checkout for easy mobile-web shopping

Fast and secure checkout online

Tap-to-pay (in-store)

Scan-to-pay

Embedded mobile app checkout

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Thank you

Documents

From Electronic to Digital. © 2014 MasterCard. Proprietary and Confidential. “FRIENDLY” SHOWROOMINGFULLY DIGITAL Mobile is a major shopping tool and growing