1. CASHLESS SOCIETY TGI INSIGHTS

2. CASHLESS SOCIETY THE FIRST WAVE CONTACTLESS PAYMENTS 3. CASHLESS SOCIETY CONTACTLESS ROLL-OUT GATHERING PACE Now Coming very soon 200,000 Contactless terminals now in operation in the UK Source: British Retail Consortium 4. CASHLESS SOCIETY CASH REMAINS KING BY NUMBER OF TRANSACTIONS Volume Average value Cash Debit Credit 9.78 29.53 54% (58%) 30% (29%) 36.40 11% (11%) NB 2011 figures in brackets) Source: British Retail Consortium 5. CASHLESS SOCIETY INTRODUCING THE GROUPS CASHLESS CONVERTS Highest propensity to use means of payment other than cash CASHLESS CAUTIOUS Medium propensity to use means of payment other than cash CASHLESS CONCERNED Lowest propensity to use means of payment other than cash Open to cashless payments but prefer cash Cashless Concerned Unlikely to use non-cash means of payment Embrace a cash- free existence 6. CASHLESS SOCIETY INTRODUCING THE GROUPS CASHLESS CONVERTS Highest propensity to use means of payment other than cash CASHLESS CAUTIOUS Medium propensity to use means of payment other than cash CASHLESS CONCERNED Lowest propensity to use means of payment other than cash I like to pay cash for everything I buy [14] With a credit card I can buy the sort of things I couldn't normally afford [159] Shopping online makes my life easier [183] I like to pay cash for everything I buy [171] Shopping online makes my life easier [35] With a credit card I can buy the sort of things I couldn't normally afford [64] AGREE DISAGREE I like to pay cash for everything I buy [81] With a credit card I can buy the sort of things I couldn't normally afford [107] Shopping online makes my life easier [116] NEUTRAL Donate to charity by cash/cheque [92] Donate to charity by cash/cheque [130] Donate to charity by cash/cheque [87] Used contactless bank/credit card payment: Yes [211] Used contactless bank/credit card payment: Yes [64] Used contactless bank/credit card payment: Yes [98] 7. CASHLESS SOCIETY DISTRIBUTION OF GROUPS Groups 2013 Overall numbers Cashless Converts 4m Cashless Cautious 28m Cashless Concerned 18m 0 10 20 30 40 50 60 Cashless Converts Cashless Cautious Cashless Concerned 2011 2012 2013 Base: All adults 18+ Source: GB TGI 2013 Q1 Modest growth in Converts, with more substantial growth in the Cautious segment 8. UNDERSTANDING THE SEGMENTS THE CASHLESS CONVERTS 9. High Indexing Purchasing Factors Banks (By Index) CASHLESS CONVERTS PROFILE 31% (60) 69% (141) Gender Split 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 18-24 25-34 35-44 45-54 55-64 65+ Age Split 57% are working full time (151) Social DNA Map* Base: All adults 18+ Source: GB TGI 2013 Q1 HPT Total pop High Global Capital Low Global Capital CulturalDominating EconomicDominating * See Social DNA Map Explanation in Appendix Factor Vert .% Index Interest Rates 24% 117 Introductory offers 6% 144 Telephone/Internet Banking Facilities 20% 160 13 28 71 57 80 161 111 168 204 10. CASHLESS CONVERTS TOP FINANCIAL ATTITUDES Source: GB TGI 2013 Q1Base: All adults 18+ HIGH AFFINITY LOW AFFINITY Factor % Agree Propensity vs. Average I don't like the idea of being in debt 86% 102 I am more aware of personal finance than I used to be 72% 112 Financial security after retirement is your own responsibility 70% 122 I only take out credit/loans when absolutely necessary 66% 132 I look for profitable ways to invest my money 52% 159 The economic outlook heavily affects my purchasing behaviour 45% 121 I would consider leaving a gift to charity in my will 42% 154 Hosting the Olympics is a good use of taxpayers' money 38% 148 I'm interested in financial services advertising 24% 219 With a credit card I can buy the sort of things I couldn't normally afford 22% 159 11. CASHLESS CONVERTS TOP 10 ATTITUDES Source: GB TGI 2013 Q1Base: All adults 18+ HIGH AFFINITY LOW AFFINITY Factor % Agree Propensity vs. Average When I need information the first place I look is the internet 90% 148 I like the idea of travelling abroad 89% 134 I often refer to the Internet before making a purchase 85% 177 I enjoy owning good quality things 84% 139 I have a practical outlook on life 82% 121 In this day and age it is important to juggle various tasks at the same time 81% 128 I check a number of sources before making a significant purchase 80% 148 I enjoy eating foreign food 79% 137 Getting text messages from commercial organisations is intrusive 78% 122 I try to keep up with developments in technology 77% 208 12. CASHLESS CONVERTS TOP BRAND PREFERENCES EXAMPLES Source: GB TGI 2013 Q1Base: All adults 18+ 13. UNDERSTANDING THE SEGMENTS THE CASHLESS CONCERNED 14. High Indexing Purchasing Factors Banks (By Index) CASHLESS CONCERNED PROFILE 57% (111) 43% (89) Gender Split 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 18-24 25-34 35-44 45-54 55-64 65+ Age Split 23% are working full time (60) Social DNA Map* Base: All adults 18+ Source: GB TGI 2013 Q1 HPT Total pop High Global Capital Low Global Capital CulturalDominating EconomicDominating * See Social DNA Map Explanation in Appendix Factor Vert .% Index Counter Staff/Personal Service 21% 138 Locality 25% 135 Interest rates 20% 95 166 149 118 110 108 63 74 66 50 15. CASHLESS CONCERNED TOP FINANCIAL ATTITUDES Source: GB TGI 2013 Q1Base: All adults 18+ HIGH AFFINITY LOW AFFINITY Factor % Agree Propensity vs. Average I don't like the idea of being in debt 88% 104 I like to pay cash for everything I buy 78% 171 I spend money more carefully than I used to 74% 103 If there's something I want I save up for it 73% 108 I am more aware of personal finance than I used to be 64% 99 I am very good at managing money 59% 110 Financial security after retirement is your own responsibility 58% 101 It is important to be well insured for everything 53% 103 I only take out credit/loans when absolutely necessary 40% 81 I trust banks/building societies to look after my money 39% 107 16. CASHLESS CONCERNED TOP 10 ATTITUDES Source: GB TGI 2013 Q1Base: All adults 18+ HIGH AFFINITY LOW AFFINITY Factor % Agree Propensity vs. Average If I am going to be able to use a new technology product, somebody has to show me how to use it 56% 154 I buy clothes for comfort, not for style 54% 121 I prefer to watch television programmes at the time they are broadcast, rather than record them 48% 128 I read a newspaper most days 46% 125 I would not change the newspaper I read 42% 125 I don't normally eat between meals 38% 121 Computers confuse me, I'll never get used to them 36% 201 I prefer local radio because it covers local news 36% 122 I like to take holidays in my own country rather than abroad 33% 129 The effects of climate change are too far in the future to really worry me 30% 129 17. CASHLESS CONCERNED TOP BRAND PREFERENCES EXAMPLES Source: GB TGI 2013 Q1Base: All adults 18+ 18. UNDERSTANDING THE SEGMENTS THE CASHLESS CAUTIOUS 19. CASHLESS CAUTIOUS THE LARGEST GROUP IS INDICATIVE OF CURRENT ATTITUDE 0 10 20 30 40 50 60 Cashless Converts Cashless Cautious Cashless Concerned 2011 2012 2013 Base: All adults 18+ Source: GB TGI 2013 Q1 The apathy towards contactless by a large (and growing) group is indicative of current consumer opinion. The benefits of using contactless technology is simply not apparent 20. High Indexing Purchasing Factors Banks (By Index) CASHLESS CAUTIOUS PROFILE 52% (102) 48% (98) Gender Split 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 18-24 25-34 35-44 45-54 55-64 65+ Age Split 41% are working full time (110) Social DNA Map* Base: All adults 18+ Source: GB TGI 2013 Q1 HPT Total pop High Global Capital Low Global Capital CulturalDominating EconomicDominating * See Social DNA Map Explanation in Appendix Factor Vert .% Index Telephone/Internet Banking Facilities 14% 112 Range of services 8% 108 Introductory offers 4% 108 84 89 97 103 100 107 111 104 106 21. CASHLESS CAUTIOUS PROFILE Source: GB TGI 2013 Q1 You have to be careful about the quality of things you buy on the internet 103 (71%) With a credit card I can buy the sorts of things I couldnt normally afford 107 (15%) Shopping online makes my life easier 116 (74%) 10% (103) fall into the Shopper Archetype Quality Crusaders HIGH INDEXING EATERIES 111 (5%) 115 (16%) HIGH INDEXING SUPERMARKETS 107 (5%) 105 (25%) Base: All adults 18+ 22. CASHLESS CAUTIOUS TOP BRAND PREFERENCES EXAMPLES Source: GB TGI 2013 Q1Base: All adults 18+ 23. WHAT NEXT? HOW TO MOVE THE CASHLESS CAUTIOUS TO BEING CASHLESS CONVERTS 24. BREAKING DOWN THE CONTACTLESS BARRIER CONCERNS WITH CONTACTLESS LACK OF OPPORTUNITY? SECURITY? LACK OF CONTROL? 20.01 25. BREAKING DOWN THE CONTACTLESS BARRIER OYSTER THE CONTACTLESS SUCCESS STORY VALUE SPEED 26. BREAKING DOWN THE CONTACTLESS BARRIER HOW DOES CONTACTLESS FARE IN THE OYSTER TEST? PRICE FOR LUNCH USING CASH PRICE FOR LUNCH USING CONTACTLESS CARD 4.20 4.20 XVALUE 27. BREAKING DOWN THE CONTACTLESS BARRIER HOW DOES CONTACTLESS FARE IN THE OYSTER TEST XSPEED 28. BREAKING DOWN THE CONTACTLESS BARRIER HOW DOES CONTACTLESS FARE IN THE OYSTER TEST In reality 29. CASHLESS SOCIETY FUTURE ADDRESSING INERTIA THE KEY TO SUCCESS Change in consumer attitude will be driven by making non-cash methods more attractive as a proposition for money transfers 28 million Cashless Cautious that need a reason to adopt contactless technology when making payments Small wins would address issues of security and lack of control, while big wins would come from making real benefits by way of value and speed 30. Thank you