Get Local, Globally! How having a local presence can optimise your payments. Juan D Antiochia General Manager Latin America, Global ecom

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1 Get Local, Globally! How having a local presence can optimise your payments Juan D Antiochia General Manager Latin America, Global ecom

2 Industry trends There are more consumers than ever before Emerging markets are leading the ecommerce growth

3 Components to global payments health Local currency Local relevant APMs Global reach card processing Low complexity

4 Take your Payments Global

5 Payments premises or myths? Localizing your operation will bring several benefits: Lower interchange rates Higher approval rate Chance to offer your customer their preferred payment methods No surcharges for your customers

6 There are always exceptions to the rule Chile Japan Peru Due to limitations on the acquiring monopoly in country, several features as card on file are only available cross border Some Interchange categories are more expensive when acquired domestically Domestic average MSC is higher than cross border interchange

7 What does it mean to be truly local Entity Taxes Regulations Currency Others Compliant with the outlet location rules Minimum capitals might be required Corporation tax GST Gross income tax etc Consumer protective laws T&Cs Exposure to volatility Hedging costs Local staff Premises

8 What is more important to my business, cost or acceptance?

9 India Non INR Cross-border transactions yield a 15% service charge m India will overtake the US as the world s second largest ecommerce market (behind China) by 2034 Indian citizens are already online, and that number is expected to nearly double to 600 million by 2020.

10 USA Surcharges and acceptance issues when USD is acquired cross border % Cards will become less dominant in the world s single largest ecommerce market of online shoppers used PayPal in 2014, though its position is threatened by new market entrants such as Apple Pay and Google Wallet

11 Brazil No access to installments transactions, and low approval rate. Cross border BRL declined by 85% of cards in the market % Cards remain the preferred payment option in South America s ecommerce giant Credit Cards are the preferred option, with a 64% share of the payments market, followed by Boleto Bancário

12 South Korea No access to local cards, which represent over 70% of the market % Rapid growth in mobile payments is one of the factors loosening the grip of Credit Cards of South Koreans who pay via mobile make online purchases up to three times per month.

13 China Penetration of global schemes is negligible compared to wallets like Alipay, WeChat Pay and schemes like Union Pay Tn China will remain the largest ecommerce market in the world by 2020, reaching 1.4 Tn dollars ewallets such as Alipay remain dominant and mobile payments are growing significantly in popularity

14 Approval rates Domestic vs Cross Border Canada Australia India Japan Hong Kong Singapore Domestic 92.22% 89.91% 90.1%(*) 92.28% 89.80% 88.42% Cross border 71.48% 79.33% 61.47% 90.62% 88.81% 88.53% (*) excluding recurring transactions due to 3DS mandate

15 What are the downsides?

16 Different settlement cycles Different pricing models Different scheme requirements Installment settlements Multiple chargeback dispute rules

17 Where can Worldpay help you?

18 Local acquiring in over 50 markets Process (domestic aquiring) Restricted countries (e.g. due to sanctions or card scheme rules)

19 Latin America Spotlight Mexico Colombia Brazil Peru Chile Paraguay Uruguay Argentina WP own acquiring licence Live (Domestic Processing) Coming in 2017

20 What to take away?

21 Going global is complex. Every country requires a business case to analyze if the upside exceeds the localization costs. Understand where your drivers for growth are.

22 Thank you!