Jeff WilsonJeff Wilson Senior Vice President, LAC & Canada Senior Vice President, LAC & Canada

Global Technology and OperationsGlobal Technology and Operations

Leveraging Technology to Advance Leveraging Technology to Advance BusinessBusiness…Are You Ready?…Are You Ready?

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A New Era in Payments Is Upon UsA New Era in Payments Is Upon Us

The new era will not wait for us to get The new era will not wait for us to get readyready

Let’s consider …Let’s consider …

Are financial institutions ready for this new era?Are financial institutions ready for this new era?

How will they grow beyond managing cash and checks?How will they grow beyond managing cash and checks?

Are banking practices, regulations, and Are banking practices, regulations, and infrastructure ready for this new era?infrastructure ready for this new era?

How will they invest in advanced technology to secure their future?How will they invest in advanced technology to secure their future?

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……And Perpetuated by Key Drivers in the Latin America MarketAnd Perpetuated by Key Drivers in the Latin America Market

We’re in A New Payments EraWe’re in A New Payments Era

Technology Technology InnovationInnovation

Electronic Electronic Payments Payments

ShiftShiftGlobalizationGlobalization

Caused by Three Powerful Global TrendsCaused by Three Powerful Global Trends

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The Shift to Electronic PaymentsThe Shift to Electronic Payments

Three millennia in the makingThree millennia in the making

……propelled by the transistor, the integrated circuit, and the Internetpropelled by the transistor, the integrated circuit, and the Internet

CashCash

• Still represents two-thirds of Still represents two-thirds of all global paymentsall global payments

• Remains the most Remains the most unacknowledged anachronism unacknowledged anachronism in the modern world in the modern world

• No longer makes senseNo longer makes sense

• Has outlived its valueHas outlived its value

ChecksChecks

0%

25%

50%

75%

100%

2000 2005 2010

DEBIT and CREDIT CARDS

CHECK

ACH ITEMS

Global Decline of ChecksGlobal Decline of Checks

Source: The Tower Group, Inc., May 2006.

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The Pervasive Effects of The Pervasive Effects of GlobalizationGlobalization

Today, a revolutionary paradigm shift in Today, a revolutionary paradigm shift in information logistics is occurring…information logistics is occurring…

• With Internet an individual can now sell products and With Internet an individual can now sell products and intellectual services anywhere in the worldintellectual services anywhere in the world

• Millions of people are now able to participate in the global Millions of people are now able to participate in the global information economy – Globalizationinformation economy – Globalization

• Commerce: The world demands frictionless commerce as Commerce: The world demands frictionless commerce as payments shift from places to peoplepayments shift from places to people

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The Innovation in TechnologyThe Innovation in Technology

Three Factors Driving InnovationThree Factors Driving Innovation

1.1. Consumers are demanding simplicity, security and instant Consumers are demanding simplicity, security and instant gratification at the Point of Salegratification at the Point of Sale

2.2. New competitors are continuing to enter the market and New competitors are continuing to enter the market and threaten to replace traditional business linesthreaten to replace traditional business lines

3.3. Emerging technologies are changing the economics of Emerging technologies are changing the economics of many business models, and opening the door to exciting many business models, and opening the door to exciting and new servicesand new services

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These Trends Offer You More These Trends Offer You More OpportunitiesOpportunities

1.1. To To innovateinnovate in new and existing markets in new and existing markets

2.2. To To expandexpand into into new segmentsnew segments of traditional of traditional marketsmarkets

3.3. To To invest and moveinvest and move into regional and global into regional and global marketsmarkets

Technology Technology InnovationInnovation

Electronic Electronic Payments Payments

ShiftShiftGlobalizationGlobalization

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Technology Enables You to…Technology Enables You to… Innovate in New and Existing Markets Innovate in New and Existing Markets

ContactlessContactless provides faster provides faster payment for better payment for better purchase purchase experience and experience and operational operational efficiencyefficiency

Chip Chip provide provide reward points reward points that that drive consumer drive consumer loyaltyloyalty

Chip Chip authentication authentication provides greater provides greater security and one security and one card for all card for all purposespurposes

Advanced technologies apply innovative solutions across various markets Advanced technologies apply innovative solutions across various markets

Together, these Together, these technologiestechnologies provide capabilities provide capabilities in other markets in other markets like Mobile and like Mobile and HealthcareHealthcare

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Technology Enables You to…Technology Enables You to… Expand into New Segments of Existing Expand into New Segments of Existing MarketsMarkets

And Enables You To…And Enables You To…

Business intelligence provides actionable insights into consumer Business intelligence provides actionable insights into consumer spendingspending

Intelligent Data Yields Insight Into…Intelligent Data Yields Insight Into…

Consumer Loyalty Consumer Loyalty

Card Usage Frequency Card Usage Frequency

Average Purchase Amounts Average Purchase Amounts

Card Activation RatesCard Activation Rates

Consumer Attrition RatesConsumer Attrition Rates

Identify revenue Identify revenue opportunities opportunities in under-penetrated in under-penetrated consumer consumer segments segments

Target appropriate offers, Target appropriate offers, rewards and cross-sell rewards and cross-sell programs to consumers programs to consumers

Potential to increase revenue Potential to increase revenue via targeted usage promotions via targeted usage promotions

and data-driven loyalty and data-driven loyalty programsprograms

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Technology Enables You to…Technology Enables You to… Invest and Move into Regional/Global Invest and Move into Regional/Global MarketsMarkets

Global Technology

Global Leadership

•Economies of global scaleEconomies of global scale•Global standardization Global standardization •Simplicity of single platformSimplicity of single platform

•Seamless reliabilitySeamless reliability•Operational resiliencyOperational resiliency•Faster network response Faster network response timetime

GlobalGlobal

IntegratedIntegratedNetworkNetwork

Strategic Strategic Payments Payments ExpertiseExpertise

PaymentPayment

Technology Technology SolutionsSolutions

HighHigh

PerformingPerformingTechnologyTechnology

•Agility and speed-to-marketAgility and speed-to-market•Limited system investmentLimited system investment•Local, customizable Local, customizable solutionssolutions

•Intelligent insight in Intelligent insight in datadata

•Differentiated, targeted Differentiated, targeted consumer programsconsumer programs

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The New Payments Era Demands…The New Payments Era Demands… Collaboration Among Innovative Collaboration Among Innovative PartnersPartners

Innovative partners help you seize opportunities Innovative partners help you seize opportunities to…to…

• Pilot breakthrough payment technologies Pilot breakthrough payment technologies withoutwithout substantial infrastructure investmentsubstantial infrastructure investment

• Speed customized processes to market fasterSpeed customized processes to market faster

• Deliver unmatched loyalty and rewards programs Deliver unmatched loyalty and rewards programs for consumersfor consumers

With the assurance that every innovation is built With the assurance that every innovation is built on a foundation of unsurpassed quality and on a foundation of unsurpassed quality and

reliabilityreliability

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Are You Ready for the New Are You Ready for the New Payments Era?Payments Era?

What kind of new payments worldWhat kind of new payments world can you imagine? can you imagine?

Will you seize the opportunities Will you seize the opportunities to advance your business?to advance your business?

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Thank You! Gracias! Obrigado!