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Contactless Kick Off Sweden. Marc Van Puyvelde, Emerging Payments Europe. Best Practices to achieve Contactless Penetration. Around 70 live Mobile NFC projects in 19 countries*. 1 in 5 cards are contactless in Europe. 8 0 %+ penetration. Page 2. Since April 2014. Poland.
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Contactless Kick Off Sweden Marc Van Puyvelde, Emerging Payments Europe Best Practices to achieve Contactless Penetration
Around 70 live Mobile NFC projects in 19 countries* 1 in 5 cards are contactless in Europe 80%+ penetration Page 2 SinceApril 2014 • Poland • GLOBAL AND EUROPE STATUS 60%-79%penetration Netherlands • Netherlands • Slovakia • Austria • Czech Republic 40-59% penetration • France • Georgia • Hungary 20-39% penetration • Portugal • Serbia • Spain • Switzerland • Bulgaria • Israel • Italy • Montenegro 10-19% penetration • Moldova • Romania • Slovenia • Turkey • UK <10 %penetration • Croatia • Denmark • Finland • Greece • Luxembourg NEW • Azerbaijan • Belarus • Belgium • Bosnia-Herzegovina • Macedonia • Norway • Russia • Sweden • Ukraine • Cyprus • Germany • Ireland • Kazakhstan • Latvia * Live projects include pilots & commercial roll-outsSource: banks’ own reporting (QMR) and MC data Warehouse. Q2 2015
In 40 countries, 1 in 5 merchant locations have a contactless terminal Page 3 SinceApril 2014 • GLOBAL AND EUROPE STATUS 60-79% penetration • Czech Republic • Georgia • Poland • Spain • Switzerland 40-59% penetration 40-59% card issuance Netherlands • Netherlands • Ukraine • Hungary • Slovakia 74% transaction penetration 2% transaction penetration • Romania • Serbia • Slovenia • UK 20-39% penetration 60-79% card issuance • Bulgaria • Cyprus • France <10 %penetration • Israel • Kazakhstan • Latvia • Luxembourg NEW • Moldova 10-19% penetration • Norway • Portugal • Russia • Sweden NEW • Turkey • Belarus • Belgium • Bosnia-Herzegovina • Denmark • Germany • Greece • Ireland • Italy • Macedonia • Montenegro • Austria • Azerbaijan • Croatia • Finland Source: banks’ own reporting (QMR), MC data Warehouse. Q2 2015 and Cartes Bancaires
Global and Europe status Cash Displacement Indication in Czech Republic • Contactless is exponentially and complementary driving in-store purchase transaction growth (< 25 USD) • ATM share of total transaction volume is dropping 74% 33% 31% 65% 27% 25% 50% 22% 21% 34% 14% 1%
Czech Republic: Best Practices Issuer Acceptance • Explaining the card in the welcome call, in welcome pack, statement insert, ATM screens • Use Tap&Get promotions for cardholder education • ATL campaign about contactless and NFC • Efforts focused on tier one merchants, especially grocery • Key is to have the terminal in front of the customers • Cashier education very strong – contactless is part of a bigger more customer focused story • Cashiers really see the speed benefit ofcontactless payments and asking customers to pay contactless • Use Tap&Get promotions for merchant education
Contactless Drives Value Where Speed and Convenience Matter Most (and Cash can be Displaced) Food at high troughput acceptance locations Fast food restaurants Sandwich/Lunch Bars Vending machines Public Transport Turnstile (like TfL) Transit Vending Machines On the bus Whether you are a mom on the go, an international traveler, or just doing some shopping around town, contactless can meet your need for fast, secure, and convenient payments. Supermarkets Petrol Public Venues Train & Bus stations, Airports, Bars Parking On street Parking Meters Off street at the gate Parking Vending Machines In the life of a typical consumer, the opportunities to tap throughout the day are many—from commuting, to meals and snacks, to everyday errands. • Contactless basics and benefits
Excellent Contactless Acceptance Quality = Improved Contactless Performance ! 1 Awareness & Education Clearly Visible Signage 2 Perfect Terminal Operation 3
1 Merchant education, awareness and motivation for consumers to tap is key
1 MasterCard ContactlessValue Proposition It's like having exact change wherever you go. A simple tap of your contactless enabled card, key fob, or mobile phone is all it takes to pay at checkout. • Contactless provides a fast, secureand convenient way for consumers to shop. • Faster check outs • Displaces Cash ! • Increases card usage for lower value transactions
2 A perfect contactless consumer experience starts with perfect visibility around POI Make it clear that MasterCard and Maestro contactless devices are accepted in store and at POS terminal
2 1 A perfect contactless consumer experience starts with clear signage on POS terminal
3 POI environment/POS terminal must facilitate the perfect contactless consumer experience • Terminal position • Speed and convenience • POS terminal display vs.checkout display interaction • Authorisation response time • Tolerance for read failureand consumer error • Operating volume • Strength and position