State of the art of mobile payments in Italy - Segmentation analysys of target users - Extract of presentation

1. Consumers: challenges and visions on the future of mobile payments Smart Phone users: Attitudes towards Mobile Payments Extract of the presentation Stefano Carlin – Director of Business TNS Italia Prepaid Summit Europe 2011 - Milan, 10-11 October 2011

2. AGENDA Awareness and usage of M-Payment Future opportunities of Mobile Payments Attitudes towards Mobile Payment Research Methodology |© TNS

6. Awareness and usage of M-Payment

7. Who is aware and already uses Mobile Payment service? D.2 Which of the following payments device do you know? D.3 And which did you use in the last 6 month? Base: Smartphone users More than 90% are aware of Mobile Payments, but less than half state to have used them in the last 6 months Awareness and usage of M-Payment service

8. … but not all kind of M-Payments are known and used at the same level… Internet connection is the main purchasing modality, followed by SMS… payments by apps are still in their infancy… D.2 Which of the following payments device do you know? D.3 And which did you use in the last 6 month? Base: Smartphone users SMS Internet connection Phone application Call or IVR Proximity Awareness and usage of M-Payment service awareness usage

9. D.4 Which of the following goods and services did you purchase by mobile phone payment? Base: Smartphone users – Multiple answers Services bought by Mobile in the past 6 months Mobile top ups are the main purchased services …. Followed by services related to mobility and entertainment M-P Services are linked to the mobile usage itself M-P users: 3.8 kind of services purchased in the last 6 months Mobile top ups Train/flight tickets Charity donations Game downloads Billing Mobile ring tones Parking tickets Prepaid card top up Song/movie downloads Concert/ event tickets Info/news Other None of these

10. Where are charged the Mobile Payment? D.5 Where did you charge the Mobile payments? Base: Smartphone users of Mobile Payments in the past 6 months - Multiple answers The “source” of Mobile Payments Prepaid cards are the main source to confirm the fear of fraud

12. Future opportunities of Mobile Payments

13. D.7 Which of the following items would you purchase via mobile phone payment if available in the near future? Base: Smartphone users – Multiple answers Services linked to mobility have the main appeal besides to general payments, but room even for traditional payments as Medical check up, baby sitter fee… What they would buy via M-Payments in the next future WOULD BUY SOMETHING Parking/motorway/petrol Train/flight/events tickets Billings/sanction/fee Department stores Taxi Hotel/Restaurant Services (Medical Check up, home help/ baby sitter fee…)

14. Attitudes towards Mobile Payment

15. Attitudes towards M-Payments Cluster Analysis was applied to the sample (Smatphone users), in order to subdivide them into groups as homogeneous as possible on a member-to-member basis, and as different as possible on a group-to-group basis in terms of attitudes and behavior towards Mobile phone payment in particular and payment (credit / prepaid cards vs cash) in general. Base: total sample = 600 cases They are ready to use any kind of Mobile Payment Ready to use Mobile Payment only if reassured about security They will be ready to use Mobile Payment only after fine tuning They’ll never use any kind of Mobile Payment They will be the last to use Mobile Payment

16. Segment description 1/2 Segmentation of Smartphone users on the basis of their attitudes towards mobile payments

17. Segment description 2/2 Segmentation of Smartphone users on the basis of their attitudes towards mobile payments

18. Annex: Sample details

19. Internet usage frequency More times a day 1 time per day 5/6 days per week 3/4 days per week 1/2 days per week Less than once a week Never * They are on-line panellists D.12 How often do you connect to internet……. Base: Smartphone users By PC* By SMARTPHONE

20. PC Smart phone % of activities via …. Internet activity frequency D.13 How often do you connect to internet to……. Base: Smartphone users E-mail, Social networks and Personal interest are the main activities in both the instruments..

21. Overview of payment tools: ownership and frequency of usage S.6 What payment tools do you own? S.7 How often do you use these payment tools? Base: Smartphone users 12 11 6 2 Monthly times average

22. S.8 Have you any kind of current account? S.10 Which of the following finance goods/services do you own? Base: Smartphone users – Multiple answers Overview on financial services/products Online banking Car Insurance Deposit account Loan/Mortgage House insurance Life insurance Found/stocks Phone banking Saving bonds Other product none

23. S.8 Have you any kind of current account? S.10 Which of the following finance goods/services do you own? Base: Smartphone users – Multiple answers Smartphone users profile

24. |© TNS Thank You Stefano Carlin Director of Business – TNS Italia @: stefano.carlin@tnsglobal.com