This document discusses the future of digital payments and shopping trends. It notes that digital payments are becoming integrated across both in-store and online shopping channels. It also summarizes that MasterPass aims to simplify the checkout process for consumers through speed, security, and simplicity. Biometric authentication is highlighted as a new method being tested to verify customer identity for digital payments.

1. ©2015 MasterCard. Proprietary and Confidential.
Digital Payments - The future
of shopping is happening now
Luděk Slouka
Central & Eastern Europe Product Manager
MasterCard Digital Payments & Labs

2. ©2015 MasterCard. Proprietary and Confidential.
Industry Trends
...and creating new shopping experiences for customers.
Virtual Store Showrooming Connected devices
Biometry
Omni channel shopping
Location-based app & offers
Buying in aisle
Wearables
Mobile POS terminal

3. ©2015 MasterCard. Proprietary and Confidential.
Digital Payments – how does it fit together?
In Store
Digital
payment
VAS
Browser e-comm
Mobile
NFC
Bill payments,
mobile top-up, P2P,
In-App
QR-code
Digitize cards…into mobile devices …for Payments

4. ©2015 MasterCard. Proprietary and Confidential.
Page 4

5. ©2015 MasterCard. Proprietary and Confidential.
DNK
UKR
ITA
NOR SWE
FIN
AUT
BEL
BGR
CZE
EST
FRA
ESP
PRT
DEU
LVA
LTU
GRC
IRL
GBR
HUN
NLD POL
ROM
SVK
HRV
SVN
RUS
CHE
TUR
BLS
MOL
SER
ISR
22 Live Markets
● Austria
● Belgium
● Czech Republic
● France
● Germany
● Greece
● Hungary
● Italy
● Ireland
● Israel
● Netherlands
● Poland
● Romania
● Russia
● Spain
● Sweden
● Switzerland
● Turkey
● UK
● Ukraine
BIH
22 MasterPass markets in Europe

6. ©2015 MasterCard. Proprietary and Confidential.
2.
Shop
4.
Paym
ent
Type5.
Payme
nt
Details
6.
Shippin
g
Informa
tion
7.
Billing
Inform
ation
8.
Sale
Compl
eted
3.
Check
out
1.
Searc
h
and
Disco
ver
SECURITY
CONCERNS
PRIVACY
CONCERNS
TOO
MANY
STEPS
!
!
!
Page 6
Why MasterPass?
SPEED
SECURITY
SIMPLICITY

7. ©2015 MasterCard. Proprietary and Confidential.Page 7
SPEED
SECURITY
SIMPLICITY

8. ©2015 MasterCard. Proprietary and Confidential.Page 8
SPEED
SECURITY
SIMPLICITY

9. ©2015 MasterCard. Proprietary and Confidential.
InfrontofTV
Atpetrolstations
SCOpayments
Atsportstadium
MasterPass use-cases
Atpublictransport
Prepaidmobiletopup

10. ©2015 MasterCard. Proprietary and Confidential.
1. New use-case = reason to
come back and use
2. Simple payment =
conversion rate
3. Place to communicate =
cross-sell
March 29, 201610
MasterPass in Digital Wallet

11. ©2015 MasterCard.
Proprietary and Confidential
Change of Consumer Authentication Process
what you know
what you have
& who you are

12. ©2015 MasterCard.
Proprietary and Confidential
• 00’s of cardholders in the Netherlands and US began using biometric-
enabled payments
• identity verification at the cardholder’s fingertips or face recognition
using biometric technologies
MasterCard Introducing Identity Check
-Simplifying the Consumer Authentication Process
Biometric
Authentication
Launch
External
Commercial
Biometric Trial
External Consumer
Biometric Trials
External Consumer
Biometric Trials
Biometric
Viability Test
Q2
‘16
Q1
‘16
Sep
‘15
Aug
‘15
Sum
‘14
Selfie
Pay“ ”
Finger
Print&

13. ©2015 MasterCard. Proprietary and Confidential.March 29, 2016
MasterCard Identity check
Mobile Biometrics Service
13

14. ©2015 MasterCard. Proprietary and Confidential.March 29, 201614