El poder de la marca

UnionPay International El valor de una marca local convertida en global

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Agenda About UnionPay Current and future trend of payments

2 | Presentation Title | Client Name | XX Month Year

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About UnionPay

Introduction of UnionPay International UPI , a wholly owned subsidiary of China UnionPay (CUP) was formally established on 17 September, 2012 The launch ceremony of UPI was held on 30 November, 2012 CUP designates UPI to exclusively operate UnionPay Card Overseas Business, including issuing and acquiring business

44 | Presentation Title | Client Name | XX Month Year

Our Goal & Commitment

Domestic Issuance, International Acceptance

International Issuance, International Acceptance

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Global Issuance, Internationa l Acceptance

UnionPay Business Update

More than

5.9

8.5

trillion USD

billion

32%

Cards in Circulation

6 | Presentation Title | Client Name | XX Month Year

YOY growth

Processed Volume

37

million merchants

2,1

million ATMs

160

markets

Acceptance Network

Statistic Globally 2015 – NO.1 Card Scheme • No. 1 in the world in total cards in circulation • No. 1 in the world in POS volume

7 | Presentation Title | Client Name | XX Month Year

Why UnionPay targets Chinese Tourists

Overseas Spending (RMB) 2.708

Classic

5.635

Gold

8.915

Premium Card -

1.000

2.000

8 | Presentation Title | Client Name | XX Month Year

3.000

4.000

5.000

6.000

7.000

8.000

9.000 10.000

The strength of UnionPay brand POS growth 2015 YoY: 30% vs 11% our competitors $8.5 Trillion POS volume in 2015 -> 32% YoY Market share: 53% in cards 43% POS volume ATV UPI: Worldwide: $362 UPI vs $ 82 others -> 4,4 more value per transaction compare to other brands EU: €231 vs €56 Spain: €475 vs €42 9 | Presentation Title | Client Name | XX Month Year

UnionPay in Spain POS volume 2015: â‚Ź260m -> 61% vs 2014 Total POS expenditure in Spanish merchants from Chinese tourists in 2015: â‚Ź430m + cash UPI represents 60% of total cards expenditure Market share: 66% acceptance in merchants 82% acceptance in ATMs Objective for 2017 -> to reach 100% all channels

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Current and Future trend of payments

UnionPay Products

POS,ATM, CNP TXN

Express

(Remittances)

Dual Currency

QPass Contactless

Status Segments

Platinum Debit

Gold

Credit

Mobile

(Mcommerce)

Classic

Global 24/7 Concierge

Circuit (UICC)

Prepaid UnionPay World Privilege

Service Packages 12 | Presentation Title | Client Name | XX Month Year

Commercial

Concierge Service

Expense

Management

Virtual

(e-commerce)

Comprehensive

Protection Insurance

Delivery Technology

Diamond

Program Enhancements “Africa is a continent full of vitality and hope and China-Africa cooperation Integrated Moneypotential and bright prospects.�

TXN Mode has great

UPI Mobile Payments Proximity Payment  Face to Face transaction  Mainly based on NFC technology  Convenient and secure

Remote Payment  Supports both Card Not Present (CNP) and Card Present (CP) transactions  CP using Secure Element or HCE

Proximity Payment Solutions

SE

   

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QR Code

HCE

Tap & Go SE needed (SIM / SD / embedded device) TSM for OTA provisioning Accepted at QuickPass

   

Tap & Go The Cloud-based payment platform that works as SE Account management through an APP Tokenization recommended.

  

One time QR Code is generated by mobile APP for each independent transaction Scanned by scanner deployed in the sales point Tokenization is adopted.

Supported by Quick Pass and TSP / Cloud Platforms

14

14

SE solutions (Embedded)

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Apple Pay launched in China:

Samsung Pay launched in China:



Launched Feb 18, 2016



Launched March 31, 2016



18 major domestic banks



15 major domestic banks on board



Millions of enrolment in first week



MST technology allows usage in traditional POS



Supports both in-app and in-store payments



Supports both in-app payment and in-store payments

In-app Payment In-app Payment

In-store Payment

In-store Payment

HuaWei/OPPO/MEIZU/XiaoMi/Coolpad  Launched over last 2 years  OTA provisioning cards via UnionPay TSM  20+ banks and 40+ models supported

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SE Based Solutions (SIM and SD)16 16

SIM Solution  Korea BC & KT, Launched on 27th August, 2015  KB & LG U+, Launched on 15th Oct, 2015  Based on SWP-SIM Mainland China  Launched in June, 2013 with CMCC  Based on SWP-SIM  20+ banks ready for OTA provisioning  Has been applied in Pubic Transportation 



SD Solution  HK    

Launched in March, 2014 Based on SWP-SD Enhanced Quick Pass application e-wallet offered by Issuer

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Cloud-based HCE solution

17 Cloud-based payment is a solution in which sensitive information like transaction keys is kept in the backend (cloud) and mobile APP will download transaction keys from cloud for payment.

HCE（Host-card emulation） allows the NFC enabled phone to emulate a contactless IC card without relying on access to an onboard hardware named secure element.

•

HCE technology + Cloud based platform

•

Encrypted payment data stored in the wallet

•

NFC enabled mobile phone with Android 4.4 +

•

QuickPass contactless acceptance

•

Temporary keys + tokenization for security

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QR Code Payment QR Code payment product has appeal due to its convenience, cost effectiveness and better user experience.

The QR code contains Token information in place of genuine card information.

•

Works with both Android and iOS

•

TSP enhances safety of QR transaction

•

Affordable Readers are ready

Using handset to scan QR code and transfer money from card account registered with the wallet through mobile wireless network.

Using QR reader to scan order form in QR code and pay from card account registered with the wallet through mobile wireless network.

Using handset to scan order form in QR code and pay from card account registered with the wallet through mobile wireless network.

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Contactless: QuickPass •

QuickPass is the UnionPay contactless payment product

•

Cardholder can pay conveniently by waving the QuickPass enabled card in front of a contactless payment terminal

•

Over 700 Million Contactless Cards issued in China, HK, Macau and Cambodia

•

Over 5 Million contactless terminals in China, HK, Macau, Korea, Cambodia, Australia, Singapore and Taiwan

Convenience

Multi-Applications

- Easy to use

- Public traffic

- Tap & Go

- Medical & Health - Tourist

Security - Chip card - Authentication

- Restaurant - Supermarket, Convenience Stores

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Ongoing Innovation for Contactless 20 20

 Contactless ATM solution to meet the requirements of mobile payment  Accept QuickPass at mPOS device  Feasibility of combining QuickPass and tokenization.

Mobile Wallet (Bank APP) UPI Wallet will be a highly secure platform that facilitates Online and Offline Payments P2P transfers and offers value-added service through a “white label and modular� approach that can be easily integrated into Partner systems.

P2P

NFC/QR

In-app purchase

Loyalty Program

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Save with shopping

Money transfers

QR code, NFC ( Apple pay, Samsung Pay)

Purchase within app (Card Present transactions)

New Form Factors & Devices Non-card payments are driven by smartphones; but can take many forms

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Biometrics UPI is developing a number of different new form factors •

Biometrics including - Finger print

- Facial recognition - Iris scanning

- Voice identification

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Conclusiones A día de hoy, la tecnología permite definir cualquier forma de pago que, utilizando la información de los hábitos de consumo y financiera de los clientes, así como sistemas de geolocalización, se pueden mandar ofertas personalizadas.

Bancos, esquemas de pago, retailers, fabricantes, start-up, telcos, etc buscan nuevas formas de pago más rápidas y seguras para el consumidor y comercios.

Todos los actores quieren ofrecer un “wallet” más o menos sofisticado. Pero ¿quién será el ganador?

Por último, ¿quién paga el coste de adaptación de dispositivos a las nuevas tecnologías? Teniendo en cuenta la presión regulatoria que provoca caída de los márgenes.

El valor de la marca. En un futuro próximo cuando el móvil sea una realidad de uso masivo, ¿diremos que hemos pagado con UnionPay o con Apple?