MasterCard Worldwide Presentation...Nov 25, 2013 · ©2013 MasterCard. Proprietary and Confidential Market Trends Make inControl an Optimal Financial Solution for the Years Ahead

©2013 MasterCard. Proprietary and Confidential

MasterCard inControl™

Daniel Monehin Division President Sub-Saharan Africa MasterCard Worldwide


Market Trends Make inControl an Optimal Financial Solution for the Years Ahead

71% of consumers said they

are keeping a closer eye on

their finances than a year ago.

Consumers are consolidating

usage across cards, resulting

in fewer active accounts and

fierce competition for top-of-

wallet status.

By 2017, global shipment of

mobile handsets to hit 1.9Bn, of

which 975MM will be

Smartphones

Consumers crave more control

over finances and value alerts.

Forecast 62MM households will

receive financial alerts by 2014.

Economic Technology

Awareness Consolidation

inControl

MasterCard Insights Whitepaper, Aug 2009.

Gigaom Research, 2013 Payment News, Feb 2009.

Javelin Strategy & Research, Nov 2009.

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inControl Offers Cardholders Configurable Controls and Alerts Capability

Personalized Spending Controls

Determine exactly where, when and how

their cards are used based on criteria such

as purchase size, merchant type and time of

day

Limited Use Card Numbers

Create limited use card numbers to make

secure online purchases

Alert Flexibility

Receive real-time alerts about card activity

according to their preferences

Transaction Limits

Transaction Curfews

Merchant Category

Velocity: No. of Trans/Time

Budget: Total Spend/Time

Geography

Text/E-Mail On Event Forewarning

Limited Use

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inControl Offers Market-Ready Solutions for Key Customer Segments

Individuals Increased awareness and

control over spending

Families Flexibility and control over

household finances

Small Businesses Increased control over

employee purchasing

Large Corporations Greater visibility and

streamlined payments

Issuer Controls Portfolio wide solutions

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inControl: How It Works

Issuer selects controls to

create a tailored

offering to cardholders

Transaction Limits

Transaction Curfews

Merchant Category Code

Velocity: No. of Trans/Time

Budget: Total Spend/Time Geography

On issuer’s website, consumer

sets the controls they want to

use according to their needs

Consumer uses their

MasterCard and receives real-

time alerts regarding spending

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November 25, 2013 Page 6

inControl for Transactions Not Switched Standard inControl Transaction Flow


Cardholder Alerts & Controls Solution: Delivers increased awareness and control over spending

Individual Cardholders

Cardholders create

personalized spending

profiles for their accounts,

setting up alerts and

spending limits according to

budget goals and account

security concerns

Set budget and receive real-time alerts when exceeded

Set category spending limits to manage spending

Block and receive real time alerts for possible fraudulent transactions

RULE: Weekly budget of $500

RULE: Receive alerts when weekly Dining limit of $150 is exceeded

RULE: Decline & alert purchases outside of home country

Illustrative

Example:

Receive immediate notifications on large purchases

RULE: Alert all transactions >$300 Transaction

Limits


Geography

Real Time Profile Updates

International Control

Budget Control

Merchant Category

Make real-time updates to spending rules

RULE: Allow transactions in Spain during summer vacation

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Family Solution: Delivers increased flexibility and oversight to parents

Parents

(Primary Cardholder)

Primary cardholder creates

customized spend profiles

for each family member via

web, mobile or customer

service

Deliver a college student’s monthly allowance

Allow a driving-aged teen to buy gas to keep the family car running

Block and receive real time alerts for possible fraudulent transactions

RULE: Spend up to $300 per month

RULE: Restrict spend to gas station MCC

RULE: Decline & alert on international transactions

Illustrative

Example:

The Smith Family

Merchant Category

Transaction Limits


Geography

Know about your spouses’ latest splurge purchase immediately

RULE: Alert all transactions >$500

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Illustrative

Example:

ACME Unlimited is a

growing design firm.

Small Business

Owner (Primary Cardholder)

Small business owners create

customized profiles for each

employee (sub-account) card

via web, mobile or customer

service

Spending Controls

Spending Controls

Limited Use Card Numbers

Real-time Alerts Know when IT manager has purchased new

computers for growing firm.

Employee's sales-related travel &

entertainment is kept within a budget

Temp admin joins firm for 2 months and

needs to purchase office supplies online

Employee's spend is restricted to

within an 8-hour workday

RULE: Alert for any transactions

>$500

RULE: Budget limit of $1000 set

for upcoming sales trip

RULE: Restrict virtual number spend

to office supply category

RULE: Set expiry date for 2 months

RULE: Approve usage only between

9am - 5pm EST

Merchant Category

Transaction Limits


Time-of-Day

Virtual Card Number

01

Small Business Controller: Provides increased control to small business owners

Small Business Owner (Primary Cardholder)

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Transaction Limits

SecurePay: Provides increased security to e-commerce

Independent Single (Primary Cardholder)

Recently graduated

from college;

embarking on a career

in accounting with ‘big-

four’ firm

Make Everyday Online Purchase securely with unique virtual numbers

Rule: Only valid for 7 days or up to $200

Illustrative

Example:

Jane Jones

Merchant Category

Number of Transactions

Budget: Spend/Time

Store Payment Card on Travel Website for fast secure booking

Rule: Decline any attempts outside travel category.

Recurring Payments for wireless phone bill (mapping auto updates if debit card reissued)

Rule: Set limit of $100 per month and only 1 transaction per month.

Dedicate Number to track Holiday Online Shopping Budget

Rule: Valid 11/26-12/31 and alert when >$1,000

Validity Period

01

Validity Period

01

# Budget:

Spend/Time

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Purchase Control: Provides greater visibility & streamlined payments to large corporations

Illustrative

Example:

ABC Corp

Accounts Payable

Distributor & Reseller Experience

Purchase Request Tool Expand a company’s current purchasing card program

to permit purchasing card spend by all employees who

need it

Simplify the AP process by leveraging limited-use

numbers for vendor and supplier payments

Fully integrate virtual account number requests for

payments into current procurement processes

• Employee purchase request

• Workflow approval

• Limited-use number generated

• Transaction processed, inControl controls applied

• Simplified reconciliation

Example:

Purchase

Request Tool

Accounts

Payable

Distributors/

Resellers

• Expands existing check-run process to

card payments

• Simplified reconciliation, using a unique

virtual account number for invoice

payments

Example:

Corporations are continuously

looking to expand Purchasing

Card programs for improved

cash flow and visibility of

payments.

Large Market Corporate

• Travel resellers use virtual cards for

hotel bookings, for the improved

controls and reconciliation benefits

• Warranty/insurance companies can

use inControl for the ability to pay

immediately, without losing control

Example:

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Platform Interface Options

Application Programming Interface (API) - Issuer incorporates

inControl into its front-end online banking site using a real-time XML-

based API, allowing for more customization in the consumer

experience

Widget - MasterCard's pre-built application components and features

can be integrated into a customer-developed front-end system

MasterCard Hosted Solution - A MasterCard-hosted user interface

delivers the best of inControl’s consumer and small business

applications on behalf of the customers as quickly and effortlessly as

possible.

A front-end interface to each inControl

application is required to access the

application. The issuer can choose 1 of 3

approaches:

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Platform Interface Options

Hosted Widget API

Customer Developed Front End

Direct User Platform Access

Real Time XML

Build-it-yourself or opportunity to partner

SSL Authentication and Digital Message Signature Security

Secure Site Hosted by MasterCard on Customer’s Behalf

Full Access to the Best inControl Capabilities

Fast to Market, Easy to Build On

Globally Scalable and Light Weight

Modern Template Based Site Design

Pre-built Components

Capable of Inserting into Existing Issuer Front-End

Full Configurable User Interface

Configurable Alert & Control Options

Safe, Flexible, Convenient

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Documents

MasterCard Worldwide Presentation...Nov 25, 2013 · ©2013 MasterCard. Proprietary and Confidential Market Trends Make inControl an Optimal Financial Solution for the Years Ahead