1. Visa payWave
SmartCard Forum
19 May 2011
Miloslav Kozler
Visa Europe
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

2. Agenda
• Why Contactless? • Lessons Learned
• Journey through Europe • Summary
• Transit Update
1

3. 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
2

4. How Contactless Works
SHOP PAY GO
Merchant enters the purchase Consumer holds card in front of Purchase is complete
amount and the contactless reader reader. In less than a second the
prompts the consumer to present terminal display indicates that the
their Visa payWave card card has been read
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5. Journey through Europe
• UK
• Turkey
• France
• Italy
• Spain
4

6. in UK
2007 2008 2009 2010
• London launch • Barclays announces • HBOS introduces debit • McDonalds announces
• 6 large issuers involved contactless strategy on all contactless card nationwide rollout of
• 9 000 terminals rolled out in debit and credit cards contactless acceptance
selected high density areas
within centre of London
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7. UK contactless rollout strategy
• Focus on merchants for whom speed is critical Importance of
Speed
Potential for
ATV Uplift
Retail
Margins Total LV
Txn*
Speed is Critical
Coffee **** *** **** 2.9bn
Fast Food Proactive Contactless Focus
Sandwich
Speed is Important 6.2bn
Supermarkets ** ** **
Convenience * * *
Short term Prioritisation
Personal Care
Pubs
Speed Neutral
CTN 3.7bn
Petrol ** ** **
Post Office
Reactive Segments
(Deloitte Assessment Based on Merchant Interviews)
* These totals exclude the major cash segments (vending, transit and parking): an additional 12bn trx
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8. Growth in issuance and transactions in the UK
• 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
UK Cards in Issue (LH axis) UK Contactless POS
10 4
8
Total POS (£m)
Total cards (m)
3
6
2
4
2 1
0 0
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9. 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
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10. in Turkey
2007 2008 2009 2010
Co-branded card 5 banks launch 8 issuers live, 10 issuers live,
with Ferry contactless 11 card programmes 20 card programmes
company programmes 850k cards and 1.33M cards and
30k terminals 35.6k terminals
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11. Visa payWave programmes
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12. in France
Visa payWave
Steering
Committee
France
2007 2008
…
2009 2010
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13. French co-brand programme
• E. Leclerc
- Card available in 400 stores
- (560 stores in France with €30B sales)
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14. in Italy
2008 2009 2010
• First V PAY contactless card • September : launch of “Carta di • Launch of BPERCard, two V
launched in June Ateneo” contactless prepaid card PAY Contactless
• Commercial pilot in five cities in dedicated to students and staff of programmes in the area of
Valtellina (Northern Italy) major Universities in Milan Modena
• 10,000 cardholders upgraded to • Multiple functions supported
V PAY contactless + • payment card
pagoBancomat • ID badge
• 200 terminals in key shopping • contactless card with MIFARE
locations with low value access application to enter into
average transaction libraries, labs, restricted areas,
etc. inside University locations
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15. in Switzerland
and Portugal
2009 2010
Lugano launch Lisbon launch
• In July 2009 Contactless was • In January 2010 Contactless was
launched in Lugano launched in Lisbon
• Several merchants in downtown • 30k cards from 6 Issuers, and 50
were equipped with contactless merchants in and around a main
terminals by Acquirer Aduno – shopping centre were equipped
bars, cafeterias, chemists, with contactless terminals
newspapers kiosks, food retailers
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16. Visa payWave Transit Solutions
• 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
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17. The New Passenger Controlled Payments System
• Activated by taxi meter • Passenger
chooses payment
• Driver has unit in option
front of cab
• Infomercials run to educate
passenger
Confidential 16

18. 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
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