RSA ConferenceFebruary 2011San FranciscoDaniel Chatelain, Managing DirectorThe BayPay ForumWebsite: www.baypayforum.com

Are Payment Cards a Thing of the Past now that we have Mobile and Social Payments on the horizon?

Sponsored by

The SmartStripe Company

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Who We Are

• Association for Payment Professionals

▫ Network with peers locally and internationally ▫ Understand emerging trends in financial transactions▫ Exchange views on payment innovation

• Over 3,300 executives from 500 companies in the payment industry

• Over 1,500 members registered on LinkedIn (BayPay)

• Did I say? We welcome sponsors and volunteers

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Events Schedule for 2011

• Upcoming events on Payment Trends▫ January

Impact of Fed’s ruling on Interchange

▫February Mobile Security at Exponent in Menlo Park Go to http://baypayforum-feb23.eventbrite.com/

▫March Alternative Payment Solutions 2 day conference in South San Francisco Panel on Mobile Platforms “How to Get There” Registration open – BayPay members get 25% discount Go to http://baypayforum-mar29.eventbrite.com/

▫April Mobile Payment is not only NFC – Is It?

▫Later Other topics on payments and more Mobile

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Some of our Members

And many more

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Payment - How it started?

The Ascent of Money: A Financial History of the World

From : Niall Ferguson

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Then …

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•Commerce is entering a new phase

•New entrants don’t have the right payment tools

• Incumbents are taken off guard by what is happening (sometimes not even aware)

•Fraud Online is increasing in volume

•High risk of disintermediation

Today presents new challenges

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So Now Where are We?

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eCommerce Volume is Growing

Source: Morgan Stanley Web 2.0 Summit San Francisco 2010

• More purchase options• More payment options• New currencies

e.g.

• From targeted advertising

• To profiled advertising• To new business models

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Acceleration of new technology adoption

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Customer Engaged at Time & Place of Decision

Location or Time based Services

Transparent Pricing

Discounts

Instant Gratification

Experience influences method of identification, checkout & payment instrument

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Who Owns the customers?

Internet Population

1.8 B

Google972MM (+8%)

Facebook662MM (+41%)

Twitter253MM (+85%)

Apple130MM (+103%)

Zynga130MM (+15%)

Groupon51MM (+25%)

Source: KPCB Mary Meeker – Top Mobile Internet Trends 2/10/11

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Risk of Disintermediation

And many more…

MOBILE PAYMENT ONLY

The BayPay Forum Proprietary and Confidential February 2011 – All Rights Reserved

So What about our Cards?

Challengers still small regarding payments

Payment cards still rule

But the system is under attack and needs to adapt

The BayPay Forum Proprietary and Confidential February 2011 – All Rights Reserved

eCommerce Volume is Growing

The BayPay Forum Proprietary and Confidential February 2011 – All Rights Reserved

Just a Few Things to Keep in Mind

•The world of Commerce on a global basis is changing at a fast pace

•Payment is always tightly linked to commerce not the other way around

•The existing ways to make a payment are still relevant but need to be improved

•The BayPay Forum is organizing events to discuss these issues

The BayPay Forum Proprietary and Confidential February 2011 – All Rights Reserved

Thank You

Daniel Chatelain, Managing DirectorThe BayPay ForumWebsite: www.baypayforum.com