The MasterPass eWallet, MasterCard's latest payment innovation in the digital world. In this session you will learn about this eWallet functionality, its added value and its security features.

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October 2, 2013

2. Online fraud is still a big problem and as long as the number of online shoppers continues to grow, so will the
number of fraud cases. According to the European Central Bank there were 7.9 million cases of fraud with a value
of 1.16 billion euros in 2011 of which 56% took place in e-commerce.
European Merchant Services organizes the EMS RISK EVENT annually for retailers who are active in e-commerce
and multichannel. It is an excellent opportunity to increase your knowledge in the field of online fraud, risk
management and advanced fraud prevention and detection tools. We help you to stay ahead of online fraudsters
and to protect your online business by sharing the knowledge and experience of our fraud and risk experts, our
customers and our partners.
Do you want to attend next year’s EMS RISK EVENT?
Please contact the EMS Marketing Department at T +31 20 660 3054 or send an email to
marketing@emscard.com. For more information visit www.emscard.com/riskevent
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3. MasterPassTM:
Shopping with
Speed, Security and Simplicity
EMS Risk Event 2013
Okke Mönking, Business Development

4. ©2013 MasterCard.
Proprietary and Confidential
Smart Devices Are Transforming Consumers’
In Person and Online Shopping Behaviors
1 Yankee Group quoted by Zach Miners, IDG News Service,“Panel: Mobile payments could reach $1 trillion
by 2015”, 7 Feb 2013.
2 Monetate, “Ecommerce Quarterly EQ3 2012”, 16 Nov 2012.
3 JiWire Survey, “Which of the following have you done on your mobile device while shopping in a store?”, Q3
2012.
USD 1 Trillion
Projected Payments via
mobile devices by 20151
61.5% to 64.2%
Cart abandonment rates grew from
Q3 2011 to Q3 20122
49%
Consumers who use
mobile phones to comparison shop
while in store3
USD 2.9 Trillion
Projected Payments via
mobile devices by 20164
Consumers use smartphones
“to place items in shopping carts
but prefer to switch to PC or laptop
to complete their purchases.”5
19%
Consumers who completed their
purchase via mobile devices
while in store6
4 Yankee Group, “The New Mobile Economy Opportunity Will Be Worth US$3 Trillion by 2016”,
26 Oct 2012.
5 eMarketer, “Retailers Rethink Shopping Cart Abandonment”, 4 Feb 2013.
6 JiWire Survey, “Which of the following have you done on your mobile device while shopping in
a store?”, Q3 2012.
October 2, 2013
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5. ©2013 MasterCard.
Proprietary and Confidential
Retail Sales Are Shifting to Smartphones,
and Merchants Need to Be Prepared
T A B L E T U S E R S
25% 22% 9%
of mobile retail
purchases are
currently made
through
tablets3
of U.S. tablet
users spend
of U.S. tablet
users spend
$50 $100
or more per
month on their
devices4
or more per
month on their
devices4
2011 2012
Percent of top 450 Internet retailer sites
optimized for mobile phones2
37% 95%
1 Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2011–2016 February 14, 2012 (Figures in legend refer to traffic share in 2016.)
2 Acquity Group, 2012 M-Commerce Audit Summary, Q3 2012.
3 Javelin Strategy & Research, “Mobile Payments Hit $20 Billion in 2012: Tablets Are Key to a Successful Retail Strategy”, September 2012.
4 ABI Research, Jan 28, 2013.
October 2, 2013
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6. ©2013 MasterCard.
Proprietary and Confidential
Consumers Want Easier, More Secure
Payment Options Wherever They Shop
23%
of customers abandon
shopping cart when
asked to register2
Top reasons online
consumers abandon their
shopping carts1
Improving the consumer
experience can impact
conversion rates³
• Online security concerns
• Web site forms take too long
• Enforced account creation before purchase
65%of online retailers
reported improved
conversion rates due to
site testing, improved
checkout procedures,
and other
enhancements³
1 IBM Coremetrics Benchmark, ”Cyber Monday Report 2011.”
2 Forrester Research, “Understanding Shopping Cart Abandonment,” May 20, 2010.
3 Forrester Research, “The State of Retailing Online 2011,” September 2011.
October 2, 2013
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7. Introducing
MasterPass

8. ©2013 MasterCard.
Proprietary and Confidential
MasterPass: Shop with Speed, Security and
Simplicity on Any Connected Device
Partner-Hosted Wallets
Portal for partners to connect their digital wallets
• Enables them to leverage MasterCard’s checkout,
authentication, and fraud reduction services
• Allows their customers to pay wherever MasterPass is
accepted
MasterPass Checkout Services
Globally integrated acceptance—both in store
and online
• Enables acceptance of electronic payments across
multiple channels—whether online or, over time, at POS
• Provides speed and convenience to eCommerce and
mCommerce Web sites
• One button, many wallets―saves space on
the checkout page
MasterPass-Hosted Wallets
MasterCard-hosted wallets (white label and
proprietary) store all payment and shipping
information in one convenient, secure place
• Easy integration
• No need for consumers to re-enter their information
• Enables banks, merchants and partners to white label
their own wallets
• Fraud-reducing security measures
October 2, 2013
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9. ©2013 MasterCard.
Proprietary and Confidential
2.
Shop
4.
Payment
Type
5.
Payment
Details
6.
Shipping
Information
7.
Billing
Information
8.
Sale
Completed
3.
Checkout
1.
Search
and
Discover
SECURITY
CONCERNS
PRIVACY
CONCERNS
TOO
MANY
STEPS
!
!
!
Delivering a Streamlined Consumer Checkout Experience
No need for merchants to request or consumers
to re-key card details, including CVV2/CVC2/CID, shipping
address, billing information
Optimize the Checkout Experience
SPEED
Provides a swift, seamless,
consistent checkout experience
across all channels—computer,
tablet, mobile—and, over time,
will extend to POS and offer
value-added services
SECURITY
Multi-tiered security helps
minimize fraud and protect
consumer data
SIMPLICITY
Streamlines checkout process
and reduces the number of steps
to make a purchase
October 2, 2013
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10. ©2013 MasterCard.
Proprietary and Confidential
MasterPass
MasterPass
C O N N E C T E D W A L L E T S
Checkout with
MasterPass
Partner
Wallet
Enabling
Consumer
Choice
Partner
Wallet
AnyBank
AnyBank
MasterPass
A C C E P T I N G L O C A T I O N S
Checkout at
point of sale
October 2, 2013
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11. ©2013 MasterCard.
Proprietary and Confidential
Convergence of Buying Contexts –
Creating Compelling Shopping Experiences*
STANDALONE ONLINE
Utilize cloud checkout services
for online shopping experience
“IN STORE REMOTE”
Utilize cloud checkout services for
in-store clienteling experience
Shopper’s Device
AT HOME IN STORE
Store Device
STANDALONE IN STORE
Utilize proximity checkout services
for in-store, point-of-sale experience
“CHIP ONLINE IN STORE”
Utilize cloud + SE services for
in-store clienteling experience
Shopper’s Device
IN STORE
Store Device
Shopper’s Device
IN STORE
( A )
C O N V E R G E N C E
( B )
C O N V E R G E N C E
( C )
C O N V E R G E N C E
* Proposed MasterPass convergence capabilities are currently under development.
MERCHANT
LOGO
MERCHANT
LOGO
MERCHANT
LOGO
Store Device
October 2, 2013
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October 2, 2013
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12. ©2013 MasterCard.
Proprietary and Confidential
MasterPass merchant services:
Supporting merchant loyalty efforts while enabling fast,
secure purchasing online, in-store and on-the-go
Security
Enhancing security for
shopping in the digital age.
• Support for 3D Secure
security protocol within
wallet for reduced fraud
• Text message purchase
verification during
checkout
Loyalty
Driving consumer loyalty and
spending with our merchant
partners.
Omni-channel
Future*
Supporting new shopping
experiences at home, in-store
and on-the-go.
• Suppression of shipping
addresses for digital
goods
• Storage & passing of loyalty
cards/numbers
• Gift card giving and
usage as payment option
• Offer targeting & redemption
Future*
• Embedded mobile app
checkout capability
• Scan-to-pay,
Tap-to-pay and other
payment solutions
• Support for global shipping
addresses
• Secure card provisioning &
transaction risk detection
capabilities
* Future planned services subject to change.
• Bank log-in credentials
• Support for Private
Label cards as
payment option
• Mobile optimized
checkout for easy
mobile-web shopping
• Fast and secure
checkout online
• Framed checkout
within merchant
mobile app
October 2, 2013
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13. MasterPass Flag and
Transaction Flow

14. ©2013 MasterCard.
Proprietary and Confidential
Changes Required to Support New Data
Value – MasterPass Flag
MasterCard implemented system changes to
support MasterPass that included a new data
value to identify MasterPass transactions:
• A new data value identifies MasterPass transactions in the
authorization and clearing messages
• The new data value is generated by the MasterPass system
and passed to the merchant to be included in the authorization
request
• Acquirers will need to work with their merchants and gateways
or Service Providers to ensure the new data value is passed
properly
• Support of this new data value is mandated for both issuers
and acquirers who choose to accept MasterPass transactions
• Note: On August 15, 2012, a release clarification outlined a
change to the MasterPass flag and increased the field size
from one byte to three bytes
KEY DATES:
MasterCard implemented the new
data value changes following this
schedule:
DOCUMENTATION:
• Technical Release Bulletin:
1 June 2012
• Operations Release Bulletin:
13 June 2012
• Release Clarification:
15 August 2012
EFFECTIVE DATES:
MASTERCARD CORE RELEASE
SCHEDULE
• Dual Message System (Clearing):
12 October 2012
• Single Message System:
12 October 2012
• Dual Message System
(Authorization): 6 November 2012
October 2, 2013October 2, 2013
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15. ©2013 MasterCard.
Proprietary and Confidential
C U S T O M E R G A T E W A Y A C Q U I R E R I S S U E R
SEND
PURCHASE
DATA
SELECT
ITEMS TO
PURCHASE
SEND
PURCHASE
DATA
SUBMIT
AUTHORIZATION
1 3 4 5
* Standard transaction flow
Regular & MasterPass Transaction Flow
C U S T O M E R M E R C H A N T G A T E W A Y A C Q U I R E R I S S U E R
ENTER
DELIVERY
ADDRESS
SEND
PURCHASE
DATA
SELECT
ITEMS TO
PURCHASE
SEND
PURCHASE
DATA
SUBMIT
AUTHORIZATION
1 2 3 4 5 6
M E R C H A N T
M E R C H A N T
SELECT
PAYMENT
METHODSEND
PURCHASE
DATA
SELECT CARD
TYPE &
DELIVERY
ADDRESS
2
ENTER
CREDENTIALS
LOGIN
October 2, 2013
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16. ©2013 MasterCard.
Proprietary and Confidential
User Experience: Transaction Authentication
Basic Check-Out
Guaranteed Check-out with SecureCode
Guaranteed Check-out with Partner Log-in
Issuer validation
of log-in
credentials
Partner Bank
Partner
Bank
October 2, 2013
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17. ©2013 MasterCard.
Proprietary and Confidential
MasterPass Experience:
eCommerce

18. ©2013 MasterCard.
Proprietary and Confidential
Consumer Checkout:
Merchant Shopping Cart
After clicking the BUY
WITH MasterPass button
on the merchant site…
October 2, 2013
Page 18

19. ©2013 MasterCard.
Proprietary and Confidential
Consumer Checkout:
1. Wallet Login Page – Recognized User
User can select the
USE ANOTHER
WALLET tab to view
additional wallets
1
October 2, 2013
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20. ©2013 MasterCard.
Proprietary and Confidential
Consumer Checkout:
2. Choose Card and Shipping Address
Consumers validate
their default card and
shipping address, and
click REVIEW YOUR
ORDER
2
October 2, 2013
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21. ©2013 MasterCard.
Proprietary and Confidential
Consumer Checkout:
3. Choose Card and Shipping Address
If opted-in, consumers
are prompted to enter
a 4-digit SMS code
prior to completing
checkout
3
October 2, 2013
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22. ©2013 MasterCard.
Proprietary and Confidential
Consumer Checkout:
4. Place Order
QTY Product Description Delivery Options Price Total
1
Nathan Hydration Bottle
With Clipless Cap
Item#: 4026N
SKU: NS 4026N
Size: 22oz.
Ships from Warehouse Alpha
Shipping Method | Edit
UPS Ground (4-6 Days)- $7.99
PLEASE NOTE: Shipping time refers to days in transit beginning
the day after your order ships. Most orders ship within 1-2 days.
Only business days apply (M-F).
$5.95 $5.95
Edit
First Name Last Name
123 Speedy Secure Path
Simplicity, NY 10000
Edit
First Name Last Name
123 Speedy Secure Path
Simplicity, NY 10000
Edit
Card Number: ************0008
Safe
Shopping
Guarantee
ALL INFORMATION IS ENCRYPTED
AND TRANSMITTING WITHOUT RISK
USING THE SECURE SOCKETS LAYER
(SSL) PROTOCOL.
4
Total: $13.94
Tax: $0.00
Shipping: $7.99
Subtotal $5.95
PLACE ORDER
(click only once)
Information is passed
back securely to the
merchant site and
consumer returns to
merchant site to
finalize purchase
October 2, 2013
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23. ©2013 MasterCard.
Proprietary and Confidential
Mobile
MasterPass Experience:

24. ©2013 MasterCard.
Proprietary and Confidential
Mobile Checkout: Consumer Clicks BUY
WITH MasterPass to Reach Sign-in Page
After clicking the BUY
WITH MasterPass button,
the consumer is brought
to the wallet selector page
1 2 3
Users can access the
wallet selector by clicking
the USE ANOTHER
WALLET flyout menu
PARTNER
LOGO
PARTNER
LOGO
PARTNER
LOGO
October 2, 2013
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25. ©2013 MasterCard.
Proprietary and Confidential
4
Mobile Checkout: Choose Payment and
Shipping Details, Complete Checkout
Masthead can be
customized with PARTNER
logo and colors
After selecting card and
shipping address, consumer
returns to merchant page to
complete order
5
6
PARTNER
LOGO
PARTNER
LOGO
PARTNER
LOGO
October 2, 2013
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26. Okke Mönking
Business Leader Acceptance
Tel: +31-6-46884990
Email: okke_moenking@mastercard.com