Payment Digitalization and the University Smart Card

Payment Digitalization and the University Smart Card

Payment Digitalization and the University Smart Card 1 EVOLVING LANDSCAPE 2 PAYMENTS CONVERGENCE 3 PARTNERSHIP APPROACH 2

1 There are two rapidly evolving trends in mobile payments... The number of smartphones is increasing exponentially: 2.7 billion smartphone users in the world by 2019 1 The growth of e- and m- commerce: 3.2 billion internet users in 2015 globally vs 400 million in 2000 2 82% of Europe s population in 2015 2 Mobile phone and tablet users will make almost 200 billion mobile commerce transactions annually by 2019 3 3 1. Statistica: Smartphone penetration amongst mobile users worldwide 2014-2019, link to website 2. International Telecommunications Union, 2015, link to document 3. Juniper Research, link to website

1...and connected devices are changing each step of the purchase process... Orientation Selection Transaction Delivery Customer Care 4

1...and creating new shopping experiences for customers Virtual Store front Showrooming Connected devices Mobile POS terminal Omni channel shopping Buying in aisle Biometry Location-based app & offers Wearables 5

Social apps (e.g. Facebook, Twitter) 1 38% of card payments are expected to be digital by 2020 Apps on the phone Traditional vs Digital transactions Payment Categories Bill Payments ACH Ecom Cash Ecom 100% Others in store ACH in store 79% 62% 80% 60% Cash in store Merchants card on file 21% 38% 40% 20% Wallet in-app Wallet in browser Tradi. Ecom 2015 2020 Traditional (Cards) Digital (Cards) 0% 2015 2020 Digital card payments NFC Mobile NCC Cards Tradi Card in store 6 MC Digital payments: any payment initiated thanks to a card number stored on any device (i.e. Any card payment not initiated by a plastic card interacting with a terminal) Source : Based on Industry Data & MasterCard Internal Data; Insite consulting

2 The digital shift is MasterCard biggest opportunity since the introduction of plastic card EMV Contactless Mobile EMV Contactless By embracing mobile devices and always-on connectivity EMV Chip Magstripe The boundaries between the physical and digital worlds are becoming blurred 7

2 MasterCard Vision: One user experience everywhere and from any device At home Smartphone Tablet PC, Laptop Fridge TV Game Console In store Tablet Kiosk Mobile in Aisle POS via NFC, QR On the go Store Window Bus Stop Subway Platform Airport Anywhere MasterCard sees digital convergence as a game changer 8

2 MasterCard will help issuers providing digital payments convergence to their customers Digitize cards into mobile devices for Payments In Store Mobile NFC QR-code In-App Our goal: To connect consumers, merchants and issuers with safe, simple and smart interoperable payment methods they can use with confidence for both remote and in-store transactions. Remote payment Browser e-comm This video will give you a glimpse into the future of payments.

2 reason why we invested in technology in order to provide increased security and convenience 10

2 however, all digital giants wants to be in this revolution and Santander cards may end on these wallets NFC 11

3 A partnership approach to define and implement Santander digital strategy 12

3 Why having MasterCard as a partner? At the heart of it, we re a technology company We are cultivating a culture of innovation 13

3 We are working together to build a common platform to support Santander global convergent wallet strategy Common platform to all wallets Powers all digital formats (m-wallet and e-wallet) Uk User interfaces customized 14 Leverage all MC assets Common wallet platform & service infrastructure 14

3 Santander will be able to digitalize the University Smart Card and provide convergent payment experiences to the students 15

Connect to the future with MasterCard. Thank you 16