1For 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.

Market Development contactless & mobile update

Miloslav Kozler, Marcel GajdosVisa EuropePrague, 15 November 2012

What is Visa today?

Number of Visa transactions

28.8bn +13%

£1 in £7

14.9 17.7 20.2 24.2 24.8 32.4

2000 2002 2004 2006 2008 2010 2011

> £1 in £3

€1.16tr Point of Sale (POS)

spend

+14%

growth

Visa Europe Annual Business Results -

most recent data for 2011 The data is calculated using constant

exchange rates to minimise effect of any exchange rate movements

80% of consumer POS

spend on debit

Visa Europe share (%) of UK consumer spending 2000-2011

39.5

3For 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.

Czech Republic KPIs, y/e

June 2012

Highlights•

transactions

294.7 m growth: +13.78%

•

POS transactions

179.9 m growth: +19.59%

•

Gross CEV

€23 466 m growth: +8.47%•

POS CEV

€6 466 m

growth: +14.85%

For Visa Europe Internal Use Only3

Rates of growth = year on year

VCEC meeting │

Prague │September 19, 2012

4For 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.

Cards and

transactions,

y/e

June 2012

2012201120122011

POS

27.60%

POS

26.00%

POS

61.10%

POS

58.10%

CASHCASHCASHCASH

Transactions

Share

of

POS transactions: over 61%

Cards 2Q 2012 Growth

Cards (000) 5 658 2.12%

Gross CEV (€

000) 23 466 389 8.47%

POS CEV (€

000) 6 466 164 14.85%

CASH CEV (€

000) 17 000 225 6.22%

Transactions (000) 294 743 13.78%

POS Transactions (000) 179 958 19.59%

CASH Transactions (000) 114 785 5.73%

POS ATV (€) 35.9 -3.96%

CASH ATV (€) 148.1 0.45%

For Visa Europe Internal Use Only 4VCEC meeting │Prague │September 19, 2012

Gross

CEV

Target Debit Profit Pool

Cash and other88.0%

2011 –

Czech Republic

How Czech Republic compares to UK

100% = Czech Republic 2011 PCE: €77bn

5

Source: Datamonitor, Euromonitor, Visa,

Debit 30.7%

2011 –

UK

Credit 16.3%

100% = UK 2011 PCE: €1077bn

Credit 4.0%

Cash and other71.8%

Target Credit Profit Pool

ATM to POS

Debit

8.0%

6For Visa Europe internal use only

And how it compares across Europe (%)

Base: 41,396 banked adults, Age 16-65. Question: Which of the following do you have? (Q3) na

= not applicable. ++ Inflated due to online panel methodology*loadable card or store card

Payment cards held as % of banked adults

Estonia France Germany Italy Poland Spain Sweden Turkey GB USA Czech Rep

Romania Israel

% of adults who are banked 98 96 98 87 88 92 95+ 40+ 94 91 95 77 96

ATM only card 4 15 18 10 45 18 18 22 17 19 na na 21

Debit card 97 64 91 81 58 82 86 66 96 83 93 93 na

Credit card 26 27 23 13 42 33 45 68 62 77 16 14 86

Charge / Deferred Debit card

8 23 26 28 3 31 34 na 3 15 na na 4

Prepaid card 1 1 9 46++ 4 10 7 0 5 6 na na 5*

Prepaid card for travelling

0 4 1 9 12 16 8 2 4 1 na na 8

Multi-function card 1 16 na 38 na na 7 na na na na na na

Instalment card na na 2 na na na 5 na na 1 na na na

Store card 3 33 14 17 14 41 39 2 21 40 na na 63

Fuel card 7 2 8 12 7 16 40 1 3 13 5 2 6

Internet wallet 5 22 33 21 15 25 41 1 44 42 2 1 7

Average number of above payment cards

1.7 2.6 2.5 3.0 2.5 3.5 4.1 2.6 3.2 4.9 1.6 1.3 3.0

Highest= Lowest=

Base: 2001 Czech banked adult TransactionsQuestion: Thinking about the last time you made the payment, how

did you pay for it? (Q83)

* Overall does not take account of purchase frequency

And how people use their cards

*

Transactions by payment method (%)

8For 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.

Market Developments

The new iPad

iPhone

4S

2 billion+ apps

downloaded

World’s No. 1

500 million Smartphones

Google buys Motorola for

$12.5bn

Google Wallet

Pace and scale of change

9For 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.

Are you ready…for the Visa Future of Payments

Mobile at 15% card transactions by 2013

€1 trillion POS volumes in VE

€6.6 billion POS volumes in CR

€1 in €8 of consumer spending in VE

€1 in €10 of consumer spending in CR

25m+ Contactless cards in VE

400k+ Contactless cards in CR

Double digit growth rates in VE and

CReCommerce20% of volumes, growing at +30% annually in VE2% of volumes,

growing at +36% annually in CR

In 2010 alone,

400 private companies invested more than €1.1 billion in payment-related technologies

Three complementary platforms deliver the consumer experience

A secure cross-channel wallet, a range of customised mobile services and leading edge retailer loyalty services.

Mobile payments

Consumer promise:

•

Send money easily and quickly

to friends and family with person-

to-person payments

•

Pay for goods quickly and easily in shops by simply tapping a card or mobile with proximity payments

•

Feel protected and informed when using a card –

with real-time alerts

Consumer promise:

•

Feel appreciated and save money through compelling offers and rewards that are timely and relevant –

with loyalty

services

Consumer promise:

•

Pay conveniently and securely

on the web –

with a card wallet

Digital wallet Retailer loyalty

Visa is the most innovative brand in the Czech Republic

1)

Visa the strongest payment system with the largest market share in the Czech Republic

2)

Biggest contactless issuer3)

First brand to launch mobile NFC pilot

4)

First brand to launch commercial mobile NFC

21.9 million cards154k terminals

1212

Pilot

Study phase

Consumer rollout

Contactless in Europe 2011 (September –

1 year ago)

•Iceland•Norway

•UK•Ireland

•Germany

•Finland

•Sweden

•France•Austria

•Poland

•Slovakia

•Hungary

•Czech Rep

•Lithuania

•Estonia

•Latvia•Denmark

•Italy•Spain

•Portugal

•Turkey•Greece

•Romania

•Luxembourg

•Netherlands

•Belgium

•Bulgaria

•Switzerland

•Cyprus

•Israel

•Slovenia

•

15m Cards•

70,000 Terminals•

6 issuers in 2011

•

2.5m Cards•

45,000 Terminals•

11 issuers

•

250k Cards•

2,000 Terminals•

7 issuers

•

4m Cards•

30,000 Terminals•

15 issuers

•

100k Cards•

1,000 Terminals•

4 issuers

•

Launching in 2011

•

Launched in June 2011

•

220k Cards•

2,500 Terminals

•

Launched in June 2011

•

115k Cards•

4000 Terminals

•

Launching in 2011

•

Launching in 2011

Visa payWave Card and Mobile Dashboard

MOBILE

43% credit cards 56% debit cards

121.7k terminals CARDS MOBILE 75k terminalsCARDS MOBILE 80.5k CARDS MOBILE24.7m 6 issuers 6.8m

7 issuers 22 issuers

4.4k terminalsCARDS MOBILE0.4m

3 issuers

6.5k terminalsCARDS MOBILE0.7m

3 issuers

56.3k terminalsCARDS MOBILE 0.3k terminals2.5M CARDS MOBILE

7 issuers

46.7k terminalsCARDS MOBILE1.4m 2.2k terminals

5 issuers CARDS MOBILE0.3m 50.8k terminals

6 issuers CARDS MOBILE4.4m

11 issuers

Visa Europe confidential.

Note: data is sourced from individual member reporting

ACCEPTANCE

1 card issuer live

1 member live

1 member live42 million cards and 365k terminals

Study phase

Consumer rollout

ACCEPTANCEACCEPTANCE

1 member live

1 issuer live

Vis

a pa

yWav

e

Launching in 2012

Pilot

The story so far across Europe

ACCEPTANCE

ACCEPTANCE

4 members live

1 members live

5 members live

1 card issuer live

1 member live

ACCEPTANCE

CARDS

Launching in 2012

2 members live

ACCEPTANCE

2 issuers live

July-12

30.2k2 issuers

ACCEPTANCE

3 members live

Launching in 2012

ACCEPTANCE

ACCEPTANCE

1 members live

4 members live

Poland RM monthly update / 24th August 2012For Visa Europe Internal Use Only

Visa payWave dashboard

-

July

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Sep-

10

Dec-

10

Mar

-11

Jun-

11

Sep-

11

Dec-

11

Mar

-12

Jun-

12

6,827,659

cards issued Highlights•

26

Issuers live with contactless;•

11

Acquirers live with contactless•

32% cards are contactless (+1%)•

75K

terminals are contactless

(25% of

all)•

7,15% of all transactions are contactless !!! (+1,15%)

0

1,000

2,000

3,000

4,000

5,000

Sep-

10

Dec-

10

Mar

-11

Jun-

11

Sep-

11

Dec-

11

Mar

-12

Jun-

123,87

million transactions

PolandCzech

Republic Slovakia

% of cards

are 

contactless 32% 8% 28%

% Credit

cards 9% 1% 11%

% Debit

Cards 91% 99% 89%

% of terminals

upgraded 32% 6% 21%

Monthly

trx

per 

card 0,57 0,31 0,22

Monthly

trx

per 

terminal 52 28 22

For Visa Europe Internal Use Only

London 2012 –

The Olympic effect

For Visa Europe Internal Use Only 16

Maintaining momentum throughout the year to support our Olympic association

Winter 2011 Spring 2012 Summer 2012

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

Canada Australia Switzerland France UnitedStates OfAmerica

Germany Spain Poland Republic OfIreland

Slovakia

•

In just 10 weeks the number of contactless transactions in the UK has doubled

•

There were more than a million contactless transaction in the UK during the games; almost 6 times the number

of transactions in the same period in 2011

•

After the Olympic Stadium, the top usage

for contactless transactions under £20

came from vending machines

-

with over 13k transactions taking place

•

The top 100 UK contactless merchants doubled the volume

of contactless transactions over the 17 day Games period when compared to the previous 17 days

•

97.75% of contactless transactions were on UK issued cards

Olympic Acceleration

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

7 Wee

ks B

efore

6 Wee

ks Befo

re

5 Wee

ks Befo

re

4 Wee

ks Befo

re

3 Wee

ks Befo

re

2 Wee

ks B

efore

Week

Befo

re

Openin

g Wee

kW

eek 1

Week 2

Week

Afte

r

Vol in 2011 Other Contactless Merchants Olympic Venues

Number of Contactless Transactions by Week (impact of Olympics and M&S)

Detailed data –

with breakdowns by issuer and acquirer can be found in report 3.0

Europe Visanet

Weekly Summary –

Week 33

UK and Poland - Visa payWave transactions & spend

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233

Week Number

Num

ber o

f Tra

nsac

tions

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

PO

S V

alue

€

UK Transactions Poland Transactions Poland POS € UK POS €

Transit Update

•

TfL

Bus Launch (known fare) scheduled for December 13th

2012

•

TfL

Phase Two (entire network, variable fare) scheduled for December 2013.

•£396m first year; rising to £2bn at full penetration

•

Transport for Greater Manchester to launch variable fare on trams in mid-2013

•

Wroclaw in Poland has 800 terminals in buses and trams, generating

•300k contactless payments per month

•

Warsaw plans to implement 1500 payment terminals in buses and trams

National Winter Promotion

2012 12th Nov 2012 –

6th Jan 2013

Bank Member Materials National Winter Promotion

2012 12th Nov 2012 –

6th Jan 2013

National Winter 2012 usage promotion: Giving consumers the chance to win attractive prizes

Objective:

Encourage card holders to use their cards at POS before Xmas and during post Xmas sales

Target audience:

All Visa cardholders in Czech Republic

Prizes:

5x 2013 CZK daily, 2x tablet iPad

weekly

Timing:

8 weeks: 12th

November 2012 –

6th

January 2013

Media: Radio, mobile, Facebook, digital OOH at: Albert HM, Tesco, Kaufland

& Interspar

BTL:

Full toolkit of marketing materials for Members – ready to order Bank Member materials now

22

V.me

Checkout User Experience

Zelená

kniha

EU o karetních, internetových

a mobilních

platbách

Pozice

ČR �Považuje

MIF za

v zásadě

legitimní

nástroj, bez

něhož

by systém

fungoval

obtížně�Pokud

MIF vyvolávají

obavy

z hlediska

hospodářské

soutěže, měly

by se

řešit

pomocí

nástrojů

soutěžního

práva

Možnosti

dalšího

vývoje�Žádná

regulace

�Zákaz

MIF �Stanovení

výše

„spravedlivého“

MIF

�Stanovení

výše

„spravedlivého“

MIF po

určité

přechodné

období

For Visa Europe Internal Use Only

Thank you!