For Visa Internal Use Only

This information is not intended, and should not be

construed, as an offer to sell, or as a solicitation

of an offer to purchase, any securities

Visa payWave

SmartCard Forum

19 May 2011

Miloslav Kozler

Visa Europe

1

Agenda

• Why Contactless?

• Journey through Europe

• Transit Update

• Lessons Learned

• Summary

2

Why Contactless?

- Contactless is at the heart of Visa Europe Strategy

- Visa Strategy - displace all other means of payment

- 85% of payments below €20 are made with cash

- Low Value Payment POS Opportunity is >…€400bn

- Competitive proposition is quick, interoperable and secure compared

to cash

- Contactless is the infrastructure which will later be used to

support a move to mobile payments

- Visa has a co-operative approach working with all

stakeholders to ensure success

3

How Contactless Works

SHOP PAY GOMerchant enters the purchase

amount and the contactless reader

prompts the consumer to present

their Visa payWave card

Consumer holds card in front of

reader. In less than a second the

terminal display indicates that the

card has been read

Purchase is complete

4

Journey through Europe

• UK

• Turkey

• France

• Italy

• Spain

5

2008 2009

• HBOS introduces debit

contactless card

• Barclays announces

contactless strategy on all

debit and credit cards

2007

• London launch

• 6 large issuers involved

• 9 000 terminals rolled out in

selected high density areas

within centre of London

in UK

2010

• McDonalds announces

nationwide rollout of

contactless acceptance

6

UK contactless rollout strategy

Speed is Critical

Coffee

Fast Food

Sandwich

Speed is Important

Supermarkets

Convenience

Personal Care

Pubs

Speed Neutral

CTN

Petrol

Post Office

Short term Prioritisation

Proactive Contactless Focus

Reactive Segments

2.9bn

6.2bn

3.7bn

Importance of Speed

Potential for ATV Uplift

Retail Margins

**** *** ****

***

***

***

** ** **

(Deloitte Assessment Based on Merchant Interviews)

Total LV Txn*

* These totals exclude the major cash segments (vending, transit and parking): an additional 12bn trx

• Focus on merchants for whom speed is critical

7

Growth in issuance and transactions in the UK

0

2

4

6

8

10

Tota

l card

s (

m)

0

1

2

3

4

Tota

l PO

S (

£m

)

UK Cards in Issue (LH axis) UK Contactless POS

• Sustained growth in cards will continue as more issuers launch contactless cards

• Contactless POS is accelerating as more Tier 1 and national retailers rollout acceptance

8

Impact of 2012 on contactless

• Leveraging Olympic assets in 2011/12

• High levels of contactless usage is a key Visa aim at the 2012 games - all venues will have contactless acceptance onsite including:

- New Olympic stadium in Stratford

- 02 arena (most successful entertainment arena in Europe)

- All merchandise sites within the Olympic venues

• Partner opportunities eg Coca Cola contactless vending machines

• Opportunities should be considered close to Olympic venues

- New Westfield shopping centre, Stratford

9

2007 2008 2009

8 issuers live,

11 card programmes

850k cards and

30k terminals

Co-branded card

with Ferry

company

5 banks launch

contactless

programmes

in Turkey

2010

10 issuers live,

20 card programmes

1.33M cards and

35.6k terminals

10

Visa payWave programmes

11

2008

2009 2010

2007

Visa payWave

Steering

Committee

France

…

in France

12

• E. Leclerc

- Card available in 400 stores

- (560 stores in France with €30B sales)

French co-brand programme

13

2008 2009

• September : launch of “Carta di

Ateneo” contactless prepaid card

dedicated to students and staff of

major Universities in Milan

• Multiple functions supported

• payment card

• ID badge

• contactless card with MIFARE

access application to enter into

libraries, labs, restricted areas,

etc. inside University locations

• First V PAY contactless card

launched in June

• Commercial pilot in five cities in

Valtellina (Northern Italy)

• 10,000 cardholders upgraded to

V PAY contactless +

pagoBancomat

• 200 terminals in key shopping

locations with low value

average transaction

in Italy

• Launch of BPERCard, two V

PAY Contactless

programmes in the area of

Modena

2010

14

2009 2010

Lugano launch

• In July 2009 Contactless was

launched in Lugano

• Several merchants in downtown

were equipped with contactless

terminals by Acquirer Aduno –

bars, cafeterias, chemists,

newspapers kiosks, food retailers

Lisbon launch

• In January 2010 Contactless was

launched in Lisbon

• 30k cards from 6 Issuers, and 50

merchants in and around a main

shopping centre were equipped

with contactless terminals

in Switzerland

and Portugal

15

• Transit Specific Solutions

- Transit MCCs only

- Contactless Only

- No Fallback

- No Receipt

• Known Fare

- Flat or Known Fare

- 1 Journey = 1 Transaction

• Distance Based Fare

• Variable Fare

• Hosted Application

Visa payWave Transit Solutions

16Confidential 16

The New Passenger Controlled Payments System

• Driver has unit in

front of cab

• Activated by taxi meter • Passenger

chooses payment

option

• Infomercials run to educate

passenger

17

Summary

- Issuance

- Get ‘contactless ready’ cards in the wallets of cardholders

- Acceptance

- Get contactless acceptance integrated into the marketplace

- Awareness

- Make cardholders aware their card has the contactless feature

- Activation

- Educate merchants so that consumers have a positive experience at POS

- Usage

- The contactless Visa card is the ultimate short-cut to everyday things you

need