1. ConnectingLegacy Systemsto Mobile andSocial MediaApplicationsDavid LutherGeneral Manager, North AmericaDistra 1

2. In the payments world increasingly there is a divide.Between the Old PaymentsAnd the New PaymentsWorldWorld 2011 Distra Pty Ltd. All rights reserved. 2 3. If we look back 20 yearsFinancial CardEFTPos Merchant ATMInstitution Schemes 2011 Distra Pty Ltd. All rights reserved. 3 4. Or even 5 yearsFinancial CardEFTPos Merchant ATMInstitution Schemes Web 2011 Distra Pty Ltd. All rights reserved. 4 5. Yet in the last couple of years thepayments world has changedconsiderably Financial Card EFTPosMerchantATM Institution Schemes MobilePaypalFacebookGoogleWeb 2011 Distra Pty Ltd. All rights reserved. 5 6. Google Glasses coming Christmas 2012 2011 Distra Pty Ltd. All rights reserved. 6 7. Google Glasses coming Christmas 2012 2011 Distra Pty Ltd. All rights reserved. 7 8. Times are changingQuicklyI predict the next decade will bringmore change in mainstreaminstitutions than we have seen in thepast decade or two. I think many ofthose changes will be in payments. Jeffrey Neubert, President and CEO, New York Clearing House 2011 Distra Pty Ltd. All rights reserved.8 9. There are 4 drivers contributing to thepayments divide Faster Payments Smart Phones Dodd Frank/Durbin NFC/Secure Element SEPA 2D Barcodes, Tokens PCI, EMV Social Media Cloud, SOA Regulation &TechnologyFraudNewCustomer Entrants Expectations Non-bank Players - Customised OfferingsPaypal, Google, Facebook Real-time New Markets Rich ExperienceChina, India, Latin Relevant & Timely OffersAmerica, Russia 10. New entrants are changing the game 2011 Distra Pty Ltd. All rights reserved. 10 11. We have seen a mobile explosion 4+ billion mobile phones globally Global mobile payment transactions to reach $1.13 trillion in 2014 from $37.4 billion in 2009 Biggest growth in mobile payments coming from non-bank providersSources: IEMR Global Mobile Payment Market Forecast 2011Aite Group 2011 Distra Pty Ltd. All rights reserved.11 12. Cloud is changing the way paymentsservices are delivered 2011 Distra Pty Ltd. All rights reserved. 12 13. New channels and developing marketsare fueling payments volumes 2011 Distra Pty Ltd. All rights reserved. 13 14. And with new players, channels andtechnologies comereliability, performance, and securityconcerns 2011 Distra Pty Ltd. All rights reserved. 14 15. Legacy payment technologies cantalways keep up "Existing payment systems that have long met the needs of an earlier generation of financial services users are now increasingly expensive to maintain and isolated from mainstream advances in technology.Financial Services Technology Consortium (FSTC) 2011 Distra Pty Ltd. All rights reserved. 15 16. Innovation ANDsecurity/reliability/performance withoutthe need to rip and replace or for costlyinfrastructureForward-looking banks will adoptpayment and architecturalstandards in their paymentsinfrastructures to gain flexibilityand provide value without havingto completely replace legacysystems. 2011 Distra Pty Ltd. All rights reserved. 16 17. Australian medical benefits claims Previously medical claims process was manual and paper-based In 2007 Medicare implemented a process to automate medicalclaims and payments, enabling:o Instant Medicare claimo Instant Medicare paymento Instant gap payment Greatly benefited insurers, doctors and patientsEasyclaim will allow patients to lodgea Medicare claim by swiping theirMedicare card and debit card throughtheir doctors EFTPOS terminal. It willmake claiming Medicare rebateseasier and significantly moreconvenient, which can only be goodnews for doctors and patients alike. 2011 Distra Pty Ltd. All rights reserved. 17 18. UK Faster Payments U.K. Faster Payments Faster Payments is a same day (real-time) clearing requirement, legislated by the U.K. Government for various ACH paymentsEnables phone, internet and standing order payments to move within minutesLaunched in 2008 in the UKVocaLink provides the Faster Payments Gateway (FPG)Vocalink uses Distra for the Payment Switch and Direct Corporate AccessWe selected Distras technologyas a key component of our [FasterPayments] solutions because itsuniquely innovative architectureprovides a combination of real-timeperformance, reliability and agility. 2011 Distra Pty Ltd. All rights reserved.18 19. Barclays Pingit (P2P mobile payments) Barclays P2P mobile payments app for Android, Blackberry & iPhone Launched in UK in Feb 2012 Barclays 11.9M customers can make payments instantly via mobile Barclays Faster Payments Gateway, powered by the Distra UniversalPayments Platform (UPP), processes PingIt transactions within 30seconds so that money is moved instantly"Barclays Pingit couldrevolutionize the way people sendand receive money. it isfree, quick, convenient, secure, and easy to use. You can send andreceive money in seconds withouthaving to enter account details.Im sure well soon be wonderingwhat we did before it."Antony Jenkins, Chief Executive BarclaysRetail and Business Banking 2011 Distra Pty Ltd. All rights reserved.19 20. Barclays Pingit brings together the old& new payment worldsPingitCorporate PortalPerson-to-PersonVocaLink Domain CentralISO8583VocaInfrastructure ISO20022Payment ISO8583Proprietary SwitchDirectISO8583ISO8583? BatchesReal-TimeCorp. Switch Access ISO8583Bank BankBank Bank VocaLinkSettlement 21. Distra is helping the payments industry bridgethe payments divide Old Payments World New Payments World Traditional players New players banks, processors, schemes Google, Paypal, Facebook ATM, POS, ACH Mobile, Social Batch ProcessingReal-time Processing Security & ReliabilityFlexibility & InnovationConvergence &Collaboration 2011 Distra Pty Ltd. All rights reserved. 21 22. Questions? 22