Payment Digitalization and the University Smart Card

3 PARTNERSHIP

APPROACH

2 PAYMENTS

CONVERGENCE

1 EVOLVING

LANDSCAPE

Payment Digitalization and the

University Smart Card

2

©2016 MasterCard. Proprietary and Confidential.

There are two rapidly evolving trends in mobile payments...

200 and tablet users will make almost

transactions

billion

Mobile phone

mobile commerce

annually by 20193

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

The growth of

3.2 e- and m- commerce:

internet users in 2015 globally vs 400 million in

20002

82% of Europe’s population in 20152

The number of smartphones

2.7 billion

is increasing exponentially:

in the world by 20191

smartphone users

billion

3

1

©2016 MasterCard. Proprietary and Confidential.

Orientation Selection Transaction Delivery Customer

Care

4

...and connected devices are changing each step of the purchase process...

1

©2016 MasterCard. Proprietary and Confidential.

Virtual Store front Showrooming Connected devices

Biometry

Omni channel shopping

Location-based app & offers

Buying in aisle

Wearables

Mobile POS terminal

...and creating new shopping experiences for customers 1

5

©2016 MasterCard. Proprietary and Confidential.

38% of card payments are expected to be digital by 2020

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)

2015 2020

21%

38%

79% 62%

Traditional vs Digital transactions

Traditional (Cards) Digital (Cards)

38%

0%

20%

40%

60%

80%

100%

2015 2020

Payment Categories Bill Payments

ACH Ecom

Cash Ecom

Others in store

ACH in store

Cash in store

Merchants card on file

Wallet in-app

Wallet in browser

Tradi. Ecom

NFC Mobile

NCC Cards

Tradi Card in store

Digital card payments

Source : Based on Industry Data & MasterCard Internal Data; Insite consulting 6

Apps on the phone

Socia

l apps (

e.g

. F

acebook, T

witte

r)

1

©2016 MasterCard. Proprietary and Confidential.

Magstripe

EMV Chip

EMV Contactless

EMV Contactless Mobile

7

The digital shift is MasterCard biggest opportunity since the introduction of plastic card

2

By embracing mobile devices and

always-on connectivity

The boundaries between the physical

and digital worlds are becoming

blurred

©2016 MasterCard. Proprietary and Confidential.

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

8

2

MasterCard sees digital convergence as a game changer

©2016 MasterCard. Proprietary and Confidential.

MasterCard will help issuers providing digital payments convergence to their customers…

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.

Our goal:

This video will give you a glimpse into the future of payments.

2

In Store

Remote

payment

Browser e-comm

Mobile NFC

In-App

QR-code

…for Payments Digitize cards…into

mobile devices

©2016 MasterCard. Proprietary and Confidential. 10

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

©2016 MasterCard. Proprietary and Confidential. 11

NFC

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

2

©2016 MasterCard. Proprietary and Confidential. 12

3 A partnership approach to define and implement Santander digital strategy

©2016 MasterCard. Proprietary and Confidential. 13

At the heart of it, we’re a technology company

We are cultivating a culture of innovation

3 Why having MasterCard as a partner?

©2016 MasterCard. Proprietary and Confidential.

14

We are working together to build a common platform to support Santander global convergent wallet strategy

Common wallet platform & service infrastructure

Common platform to all wallets

Powers all digital formats (m-wallet and e-wallet)

User interfaces customized

Leverage all MC assets

Uk

3

14

©2016 MasterCard. Proprietary and Confidential. 15

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

©2016 MasterCard. Proprietary and Confidential.

Connect to the future – with MasterCard.

Thank you

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