The rapid pace of technological evolution, coupled with the changing profile and expectations of the “typical” contemporary digital consumer, suggests a seismic transformation in the global payments ecosystem is inevitable. Innovative payment platforms are entering the market and rapidly gaining ground especially in the developing world, where traditional payment infrastructure is deficient. These platforms can now provide payment services to the unbanked, leading to a fundamental change in how entire communities interact with the global marketplace. This presentation will address what the 2017 global online consumer will expect from these payment solutions, and the necessity of secure and practical payment methods for an increasingly mobile and social commerce landscape.

2. Agenda
History of Payments
Payments Today
The Future of Payments

3. Part 1: The History of Payments
“To know where you’re going, you need to know
where you’ve been.” – Proverb

5. Original Credit Card Invented 1946 by John Biggins

7. Diners' Club adopts "Charge It" slogan

11. Going back to our timeline, we see where our Payments
Ecosystem building blocks have come from, but what
have they built? Let’s put the building blocks together:

12. 1st Layer: Territory
The Country or Region
Building a Payments Network

13. 1st Layer: Territory
The Country or Region
2nd Layer: Foundation
Banking & Credit Networks
Building a Payments Network

14. 1st Layer: Territory
The Country or Region
2nd Layer: Foundation
Banking & Credit Networks
3rd Layer: Framework
Payment Terminals
Building a Payments Network

15. 1st Layer: Territory
The Country or Region
2nd Layer: Foundation
Banking & Credit Networks
3rd Layer: Framework
Payment Terminals
4th Layer: Masonry
Payment Instruments
Building a Payments Network

16. 1st Layer: Territory
The Country or Region
2nd Layer: Foundation
Banking & Credit Networks
3rd Layer: Framework
Payment Terminals
4th Layer: Masonry
Payment Instruments
5th Layer: Decorations
New Technology
Building a Payments Network

17. Part II: Payments Today
The 2017 Global Payments Ecosystem

18. Canadian
Payments
Landscape

19. Canadian Day in the Life: Different Payment
Options for Different Types of Payments
Coffee Shop: Interac, mobile app payment
Gas Station: Tap and pay
Parking Meter: Coins, credit card
Shop Online: E-wallet, Interac online
Online Bill Payment: Online or mobile banking
Movie Night: Redeem loyalty points from Scene card
In Canada, for each type of purchase we have
many practical payment options to choose from.

20. Canada has Among the Highest Internet and
Mobile Penetration Rates in the World
As of 2014, Canada had some of the highest credit card ownership rates in the
world.
In 2016, 89% of Canadians 18+ had at least one credit card (according to
Canadian Bankers Association).
Payments services in Canada are among the most advanced in world: Apple
pay adoption, Interac network, tap and pay, e-wallets, excellent access to
banks/credit cards/online banking/online bill payment.
Although there are some merchants left out in the cold, Canadian merchants
are well served domestically.
Canada’s domestic payments ecosystem is more or less mature, stable, and
inclusive.
Canada is in a great position domestically, but with such a small market, e-
commerce merchants also need to be able to process international payments.

21. Global Access to e-Commerce depends on global
access to the internet and to banking services,
such as bank accounts and credit cards. We have
seen Canada’s banking and telecom
infrastructure is robust and mature, but what about
other regions?

22. 0
10
20
30
40
50
60
70
80
90
100
United
Kingdom
Canada United States Russian
Federation
Brazil China India
Mobile and Internet Penetration
Internet Penetration (%) Smartphone Penetration (%)
Source: Newzoo Global Mobile
Market Report, April 2017

23. Source: McKinsey & Company, BraveNewCoin

24. 0
10
20
30
40
50
60
70
80
90
Canada Euro area Latin America
& Caribbean
(Developing)
Europe &
Central Asia
(Developing)
East Asia &
Pacific
(Developing)
South Asia Sub-Saharan
Africa
(Developing)
Middle East
(Developing)
Credit Card Ownership by Region
2014 [YR2014] World Average
Source: World Bank – Global Findex

25. Credit Card Ownership
Only 20% of people over 25 have credit cards.
Developing countries especially are prone to low credit card
penetration.
Interestingly, Europe also has low credit card rates.

26. 0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
Credit Card Ownership Europe
Credit Card Ownership (%) World Average
Source: World Bank – Global Findex

27. Credit Card Ownership in Europe
Germany, for example, has a 46% credit card ownership rate, France 45%,
Switzerland 54%.
This reinforces the cultural differences between Europeans and North Americans.
If you want credit cards to be the main cross-border commerce tool, this is
troubling.
These are not countries where we would think that access to credit cards is limited.

28. 0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
Canada United States Brazil Russian
Federation
China India
Canada/USA vs. BRIC: Credit Card Ownership
2014 [YR2014] World Average
Source: World Bank – Global Findex

29. Canada vs. BRIC
Canada has a 82% credit card ownership rate, whereas BRIC countries have
significantly lower credit card penetration:
Brazil 32%, Russia 21%, China 16%, India just 4%.
Although there is room for growth, levels may only reach those of European
penetration.
How do you give these populations access to international e-commerce with such
low CC ownership rates? You provide them with an international platform that
incorporates their preferred payment methods.

30. Mobile Money

31. Mobile Payments
Today, mobile money can mean different things in different countries.
In developing countries, mobile money can be sent on cellular networks: M-pesa/ Bkash
(works on mobile phone/cellular network, mostly domestic).
In developed regions, mobile money is sent online through payment apps: Swish in Sweden/
Venmo in US (works on mobile data networks, mostly domestic).
ApplePay stores payment tools on mobile devices. Square represents a different kind of
mobile-money, turning mobile devices into Point of Sale terminals.
These systems are popular domestically, not particularly useful for international transactions.

32. Bitcoin Market Capitalization
From 2009 to present, Bitcoin has gone from pennies to over 3000 CDN per Bitcoin
Bitcoin has a Market Capitalization over 40 Billion dollars
1.8 million percent increase from its Jan 1st 2011 market cap of roughly 1.5 million dollars.
As cryptocurrency and blockchain technology advances, it is becoming increasingly clear that
these currencies will make up a meaningful part of the global e-commerce ecosystem.

33. Bitcoin Market Capitalization
(2013 – Present)
Source: blockchain.info

34. Bitcoin Daily Transaction Volume
(2013 – Present)
Source: blockchain.info

35. A network is needed to connect
the world’s domestic payment systems

36. Innovative payment platforms like Payza connect payment
systems from different countries into a global network

37. Part III: The Future of Payments
Piecing together the building blocks of a global payments
ecosystem.

38. Assembling the Building Blocks
The foundational element of a Global Payments Ecosystem must
incorporate the most popular domestic payment tools from each
country.
Consumers and merchants in emerging markets will gravitate to
payments services with global reach.
Entrenched tools such as Credit Cards and Bank Accounts will
remain entrenched in developed countries.

39. Assembling the Building Blocks
Low friction for international transfers and payments is a big
advantage for Cryptocurrencies.
Innovative payment platforms can integrate traditional payment
options, emerging payment tools, and specialized local payment
services.
Merchants will want a low barrier to entry and a clear payoff before
adding new payment options.

40. At Payza, we feel we’ve taken the lead by incorporating domestic payment tools such as Boleto, Oxxo, bKash and
Interac, along with cryptocurrencies into our payment platform.
Within Payza’s online platform, these specialized funding methods function side by side with traditional payment
tools, like credit cards and bank wires.
The world we live in is interconnected, but each region still has their own unique characteristics.
Payza aims to provide a network where merchants from any country, developed or developing, can sell to customers
in any country no matter their payment preferences.
We believe future of payments will be defined by a combination of tools, each with unique advantages and each
with their own associated segment of customers.
This is the start of a truly global payments ecosystem that will allow cross-border e-commerce to thrive.
The Building Blocks of a Global Payments Ecosystem
Driven by Innovative Payment Platforms