mPOSmPOS

An In tegrated Merchant Of fer ing

Tom Conlon

VP Marketing & Business DevelopmentVP Marketing & Business DevelopmentVeriFone EMEA

W H O W E AR E

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A leading global provider of technology that enables electronic payment transactions

Founded in 1981

Trading as PAY on NYSE

$1.9 billion revenue - 2012

Leader in most markets

Over 4,800 employees worldwide

Active in over 125 countries

VeriFone Systems, Inc. Confidential Information

Key Payment Service Provider across Europe

• Offering the widest range of payment devices and multi-channel payment services in Europe

• Based on an extensive regional footprint, with over 25 European offices and 10+ partners

• Solutions thatpower payments at some of the biggest banking and retail brands in Europe

• Driving pan-Europeanpayment solutionsacross the spectrumfor banks/acquirers,retailers, including SEPA

V E R I F O N E E U R O P E

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Acceptance SolutionsAcceptance - mPOS

devices used in Apple Store

Square/iZettle

card reader attachments

Payment Solutions

M o b i l e f o r P a y m e n t a n d A c c e p t a n c e

Payment

NFC stickers and handsets

SD cards

handset applications, including barcode

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C O N N E C T E D C O N S U M E R S = I N C R E A S E D E X P E C TAT I O N S

Enabled• Half of consumers

use two or more technologies to shop

Social• 45% of consumers

ask friends before purchasing

Smart• No.1 desire is a

personalised and relevant experience

Time Sensitive

• Convenience and speed is paramount

Half of consumers use two or more technologies to shop

45% of consumers ask friends before purchasing

No.1 desire is a personalised and relevant experience

Convenience and speed is

Data source: IBM

M AY 2 0 1 0 - S Q U AR E

Success through simplicity….

“Pay quickly, securely.Create a Square account to speed up and secure every payment. With photo verification, Square users can visually confirm you are the card holder.”

“Swipe it.Accept payment cards on any device with an audio input jack, including your mobile phone. After signing up for Square, provide your address on the web and we’ll send your free card reader and Square sticker”Source: squareup.com

2.75%

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E V O LU TI ON O F M I C R O MER C HAN T SO L U TI ON S

Accelerated proliferation from 2012

May 2011iZettle launches

in Sweden

May 2010Square

launchesin USA

Elavon offersmPOS in the UK

MasterCardissues mPOS

best practices

May June July Aug Sep Oct Nov Dec

StreetPaylaunches

in Germany

paylevenlaunches

in Germany

WorldPaypilots "Pay as You Go"

Visa Europeupdates mPOSbest practices

JUSP (Italy)exits "stealth

mode"

O2 launchesmPOS in UK

handpointpivots to offerservices directto merchants

Intuit expands to UK from US

Adyen launchesShuttle mPOS

January 2012

SumUplaunches

mPowa (UK) exists"stealth mode"

paylevenexpandsglobally

iZettleexpands

to UK, DE

Feb

Ingenicotakes control of Roam Data

Ingenico

Mar

PayPal Herelaunches

(not in EU)

Apr

Source: First Annapolis Consulting

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H I G H -PR O FI LE DE PLO YM ENTS IN D E VELOPED M AR K E TS

Annual Transactions per POS Terminal

PO

S te

rmin

als

per

1,0

00

peo

ple

Finland

HollandBelgium

UK

Denmark

Canada

SwedenUSA

Estonia

Australia

Hong Kong

France

Portugal

Mexico

Poland

Argentina

Spain

Japan

Germany

BrazilItaly

GreeceTurkey

Taiwan

Russia

S. Africa

IndiaChina

Card Market Maturity

Existing Terminals ~200,000

New Mobile POS ~25,000

Market Expansion 12.5%

Existing Terminals ~200,000

New Mobile POS ~25,000

Market Expansion 12.5%

Existing Terminals ~10 million

New Mobile POS ~2.5 million

Market Expansion 25.0%

Existing Terminals ~10 million

New Mobile POS ~2.5 million

Market Expansion 25.0%

and others

• In 2012, iZettle expanded to Norway, Denmark, Finland, the UK, and Germany.

• iZettle signed 10,000 users at launch in Norway, an 8% expansion of that market.

• PayPal received 1,000 applications per hour the first day it offered mobile POS.

• In two months, PayPal signed 300,000 users across the US, Canada, Australia, and HK.

• Square dominates the U.S. market with over 2 million users; Intuit (who just entered the U.K.) is a strong #2

Source: First Annapolis Consulting

Potential to increase the existing POS base by 40%…

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M E R C H A N T S A C R O S S E U R O P E A R E A L R E A D Y

A D O P T I N G M P O S

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Multi-Lane Retailers• Queue busting• Pop up check-outs• Inventory monitoring• Back office integration

Fashion Brands• WOW factor• Personalised shopping• Clientelling• Up-selling• Stock checking

High Street Merchants• Queue busting• Seasonal promotions• Prevent walkaways• Back office integration

Small Merchants/Professionals• Cash to card payments• Never miss a sale

Global Adoption Forecast for Mobile POSMillions of Users (businesses, not units)

Source: First Annapolis Consulting

Micro Merchant

Enterprise

MOBILE ACCEPTANCE ON THE RISE

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I N C R EAS I N G MO B I L I TY I N R E TAI L

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Consumer engagement and online-to-offline convergence are key drivers

Source: RIS/IHL Group 2012 Retail Embraces Tablets Study

What are the key strategic drivers for adding network-enabled tablets to your stores?

64.2%

64.2%

58.5%

58.5%

50.9%

47.2%

24.5%

Sales floor support

Updating/refreshing store experience

Increase comp store sales

Connect to enterprise apps

Connect to digital channels

Increase conversions

Mobile POS

E N TER PRI SE SO L U TI ON SSmartphone or tablet PC with secure payment capability

Retail - integration with cash register for convenience and consultative retailing

– Mobile check-out anywhere in the store, queue busting

– Expos, sidewalk sales, seasonal offerings etc

– Public transit - ticketing and validation

Restaurants - single device for table management, ordering and payment

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N E W O P P O R T U N I T I E S F O R M E R C H A N T S

mPOS retail devices create highly personalised retailer-to-customer interactions and more efficient back office processes.

VSP Processing on the PIN Pad

MSR w/ Ledge

Integrated Battery: >10 Hours of iPod

and PIN Pad Operation

Gang Charging Connectors

128 x 32 LCD Display

CTLS / NFC Antenna

Capacitive Touch PCI 2.x Compliant PIN Pad

PIN Pad Reverse Side iPod Touch

2D Barcode Imager

Landed Smart Card Reader

CTLS LEDs

2 SAM Slot

Power/Battery Meter Button

MicroUSB Data/Power Charge Port

2D Barcode Imager

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ENTERPRISE SOLUTIONS DELIVERED – PWM e215/255

Mag Stripe Reader

EMV SmartCard Reader

2D Barcode Imager

Contactless / NFC Reader

Single Charging Port

PCI 3.x PIN Pad

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ENTERPRISE SOLUTIONS DELIVEREDPWM e215/255 + Global Bay Merchant

M O B I L E P O S S E C U R I T Y - P 2 P E E F F E C T

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GatewayPCI-DSS Certified

Secure Environment

PCI-PTS CertifiedSecure Mobile POS

Mobile POS

Merchant/RetailEnvironment

Encrypted Data

Acquirers

CardData

Encrypted

Encrypted Data

CardData

Decrypted

Scope of P2PEMerchant has NO access to cardholder data

Live Data

PTS Certified

Today’s mobile devices are inherently not secure

mPOS solutions and P2PE go hand in hand in meeting security compliance mandates

Acquirers and PSP’s provide the missing link for handling cardholder data

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S U C C E S S W I T H M O B I L E PAY M E N T S

Utilising the latest payment technology to turn smart devices into smarter POS

Vendors, like VeriFone,are responding with:

Comprehensive portfolios of MPOS tools that meet the needs of all sizes and types of merchants and environmentDevices that are secure, easy to integrate, deploy and maintainGateways and Services to support increasing security and IT requirements

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S U C C E S S W I T H M O B I L E R E TA I L I N G

Elevate The Consumer ExperienceWith innovative, next-generation tools to engage customers, personalize service and empower sales associates

Deliver Omni-channel ExperiencesSeamless experience online and in storeUse tablets to quickly and affordably create mobile kiosks, anywhere. Look up customer histories on the spot - more effectively cross sell and upsell Strengthen customer relationships and provide each individual with a personalized experienceQuickly check inventory, delivery details and pricing to ensure the highest levels of service.

More satisfying consumer interaction, greater loyalty, more frequent repeat visits and increased sales

Merchants success will require investment in advanced software and apps that use MPOS to:

THANK YOU