"Witnessing Cross-Border Successes Daily, Allows Vantiv & Credorax to ‘Knowledge-Share’ with other U.S. Industry Players Looking to Slice off a Piece of the Lucrative Global E-Commerce Pie" - Vantiv & Credorax talk at #TRANSACT16 about global payments, cross border payments and e-commerce

1. From Illusion to Reality:
“Turning the World into a Practical E-Global Mall”

2. Introduction:
2
&

3. “Witnessing Cross-Border
Successes Daily, Allows Vantiv
& Credorax to ‘Knowledge-
Share’ with other U.S. Industry
Players Looking to Slice off a
Piece of the Lucrative Global
E-Commerce Pie”
• 85% Cross-border
transactions from 188
different countries
• Merchant Acquiring
Banking licenses in
Europe, Asia & U.S.
$1.316
Trillion
3NR&

4. Limitless
Global
Opportunities
4

5. © 2015 Vantiv, LLC. All rights reserved.5 04/22/16
United States Vs. Global Markets
Projected eComm Sales for the 10 Largest Markets
Others Countries
Among Top 10
United States
E-commerce sales
volume growing
at ~12% annually
ROW combined
growing at over 17%
each year
5N&

6. © 2015 Vantiv, LLC. All rights reserved.6 04/22/16 6N
Top 10 Markets by 2020
$1.8T
(China)
$700B
(U.S.)
$141B
(Japan)
$134B
(Germany)
$166B
(UK)
$67B
(France)
$63B
(Canada)
$47B
(Russia)
$36B
(Brazil)
$62B
(S. Korea)
&

7. © 2015 Vantiv, LLC. All rights reserved.7 04/22/16 7NR
Market Assessment: HypeVs. Reality
• 1% shop online
and only 2% will
by 2020
India
Brazil
• Low cross-border
shopping online
• Very complex
regulatory env’t
• Very rapid move to
online channels with
13% increase year-
over-year
• Among the most
frequent online
shoppers in world
• Similar payment
method mix to U.S.
HYPE REALITY
Germany
UK
&

8. TurnYourselves into
the ‘GoTo’
Cross-Border PSP
forYour Merchants
8NR

9. 9N
STAGE 1: Transparent Assessment
“Be a Transparent ‘Go Global’ Advocate for your Merchants,
Because it May Not Work for All”
Assessment Audit For Your Merchants:
•Will Your Product Appeal Beyond U.S. Borders?
•Do You Have Cultural/Language In-House Expertise?
•Will ROI outweigh the Financial Investment Necessary?
•Can Your Web Site adapt to Local Requirements?
•Have You considered Supply Chain Requirements?
•Do You have the Resources to Continue to Nurture Local Longevity (post market launch)?
&

10. 10R
STAGE II: Local EU Business Entity – A Must!
“Help Your Merchants Find the Right
Partners to Set Up a Local Entity”
&

11. 11N
STAGE III: Pick the Right Acquirer
“Selecting the Right Merchant Acquiring Bank Can
Make or Break Your Cross-Border Success”
PSP Acquiring Audit:
•Local EU Banking Licenses
•Understands Complex Regulatory Environment
•Local Offices: Cultural/Language Natives
•Can Seriously Reduce Banking & Exchange Fees
&

12. Be Aware:
When Selecting An
Acquirer, Make SureYou
are Fully Aware of the
Challenges & Solutions
12R

13. 13R
Choosing the Right Merchant Acquiring Bank
&

14. 14R
Complex Reality of Going Global
&

15. 15R
Front End
(authorization)
Integration
Support
and account
management
Reporting
harmonization
On-boarding
and KYC cost
Back Office
(funding and
settlement)
integration
45-150K
per acquirer
6-10 weeks
30-40K
per acquirer
per year
20-100K
per acquirer
per year
2-15K
per retailer
per acquirer
30-60 days
350-500K
per acquirer
6-12 months
Source: C onsultHyperion 201 5
High Up-Front Costs for Multiple
Merchant Acquiring Bank Integrations
&

16. 16R
New Entrants, Consolidation Lead to
Reduction in Dependencies
POS
Terminals
Billing
Accounting e-Com
Solution
Providers
Banks
Card
Schemes
Logistics
PSP
Payment Service Provider
&

17. OVERVIEW CHALLENGES
Industry: Computergames - MMO ‘free-to-play’
online action games (iWorld of Tanks)
Customer Profile:
•Revenue: Exceeding €200 million
•16 global offices/development centers
•140 million international online users
Location: HQ in EU. Global traffic including from
U.S., Asia & EU (occasionally)
Reduce number of global-local acquirers
Minimize revenue loss fromcard declines
Decrease online fraud incidents
SOLUTION
Award Winning Alliance Global Unified
Acquiring Platform
Multiple
banking
licenses
Consultative
account
management
ePower
advanced
technology
Approval rate
analysis &
optimization
Customized fraud
management
reports and
processes
Credorax WireCapital
Exemplary ‘True’ Global E-Commerce
17R&

18. RESULTS
Strengthened ROI
via approval rates
* Quarter Avg.
Increased processing volume
Countries
Worldwide
in 2015 with
a single acquirer
Processed card
transactions from
Jan 201 5 Dec 201 5
200
%
6.3
%Approval Rate
83%
above benchmark
125
Achieved maximumscalability
Fraud Drastically Decreases
over1% Decrease during 2015
Chargebacks: Consistently Low
18R&

19. STAGE IV:
Ongoing “Reality
Check, One Size
Does Not Fit All”
19RN

20. I may not have theI may not have the
answer, but I’ll find it,answer, but I’ll find it,
I may not have the time,I may not have the time,
but I’ll make it.but I’ll make it.
ClientClient
AdvocacyAdvocacy
20&

21. © 2015 Vantiv, LLC. All rights reserved.21 04/22/16
FOCUS I: Fraud Mitigation Strategies
• General Rule:“The nature of payment fraud—and techniques to counter its impact—widen
outside the U.S.; Fortifying yourself prior to entering high-risk markets is imperative”
• Merchant-Specific Rules: “Every merchant is different and as such you need to execute
the right fraud mitigation strategies and tactics that best meet each one’s specific needs”
21N&

22. & 22R
Industry:
• E-commerce
• Pan-European
commerce
CustomerProfile:
• SME & Enterprise retailers
• Over 90% concentration on SME market
Location:
• HQ in Munich,
Germany
• Worldwide presence
CHALLENGE
Transcend traditional ‘ONE-SIZE-FITS-ALL’
acquiring with a flexible, strategic, long-term partner
31 42
Solution Architects
Customized solution
for Paymill’s specific needs
Designed Custom
Solution Blueprint:
Assessed Client:
Targeted pain points
Cloud-based digital onboarding portal:
•‘Merchant journey’ view:
•Real-time Communications Window:
Supportive onboarding process & tools:
•Electronic Merchant Application Form (MAF)
•Automatic KYC wizard: customized per merchant profile
•Pre-agreed fixed merchant pricing/terms
Implemented Bespoke Technology Solutions:
Application– KYC - MID
Embedded, live client-sales operation managers dialogue
All-hands-on-deck:
CCO to SOM
Approval rate analysis
Target merchant profile
optimization
Provided Continuous
Consultancy:
FOCUS II: Customized Technology & Business Solutions

23. 23R
RESULTS
Onboarding: Expedited Time-to-marketIncreased Processing Growth
Achieved High Approval Rates
2015
1,100%
2016
4X Faster in 1 Year
PAYMILL
OVERALL
TOP MERCHANT
TOP 3 MCC CODES
benchmark aligned
90%
+
92.5%
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24. 24RN
“Critical to analyze and investigate why cards are
declined and advise merchants on steps they must
take to optimize their payments”
•Declines vary from Merchant to Merchant
•Numerous Reasons for Declines
•High Approval Rates Mean Higher Conversion Rates, which Lead to Higher Revenue
FOCUS III: Approval Rates
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25. Questions & Answers
Rod R. Katzfey
VP of Sales & Business Dev. NA
Credorax Bank North America,
MALPB USA
rod.katzfey@credorax.com
Neeraj Gupta
Senior Product Manager
vantiv
neeraj.gupta@vantiv.com
25&