Overview in order to drive business discussions regarding how the digital revolution is changing our industry and our lives as never before in human being existance...

1. The brave new world…
(by Aldous Huxley, published in 1932)

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“The only ones that will survive will turn
their companies into digital, techie
versions of themselves, and many of will
fail trying”
"Forty percent of businesses in this room,
unfortunately, will not exist in a meaningful
way in 10 years; 70% of companies would
"attempt" to go digital but only 30% of
those would succeed"
"If I'm not making you sweat, I should be”
“It will become a digital world that will
change our life, our health, our education,
our business models at the pace of a
technology company change”
“Either we disrupt or we get disrupted”

3. “The only ones that will survive will turn
their companies into digital, techie
versions of themselves, and many of will
fail trying”
"Forty percent of businesses in this room,
unfortunately, will not exist in a meaningful
way in 10 years; 70% of companies would
"attempt" to go digital but only 30% of
those would succeed"
“It will become a digital world that will
change our life, our health, our education,
our business models at the pace of a
technology company change”
Prepared by Marcelo Theodoro
"If I'm not making you sweat, I should be”
It's
“Either we disrupt or we get disrupted”

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[Video] Digital revolution changing our society in different
aspects...

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We are facing the 4th industrial revolution:
Digital + Physical + Biological systems at the same time!
https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/
https://www.youtube.com/watch?v=khjY5LWF3tg

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Founded: 1945

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13. How long your consumer will take to hold a high end cell
phone? Moore’s law...
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14. Microsoft
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15. Microsoft
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We all have our “Windows”!

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Are we too big (and too
good!) to fail?
Really????

17. Do you remember this companies?
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18. Who is “your” competidor?
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x
x
x

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x
x
x
Who is “your” competidor?

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x
x
x
Who is “your” competidor?

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x
x
x
Who is “your” competidor?

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x
x
x PopCorn
Time
Who is “your” competidor?

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How can we be the
best-in-class
if there’s no class
anymore?

25. We are competiting in a no linear world...
The world’s largest taxi company owns no vehicles
The world’s most popular media owner creates no content
The most valuable retailer has no inventory
The world’s largest accommodation provider owns no real state
How about Financial Services?
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28. Business life cycle...
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We’re right here!

29. Business life cycle...
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Are we building the next curve?

30. These guys are... And it’s beyond you can imagine!
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31. Search Engine (2 h/d)
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growth
time
Google

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Google Self Driving Car

33. growth
time
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Search Engine (2 h/d)
Cars (+1 h/d)
+Data
Google

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Google Loon

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growth
time
Search Engine (2 h/d)
Cars (+1 h/d)
+Data
+Internet (+ppl)
+Data
Google

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Google Calico

37. Search Engine (2 h/d)
Longer life
+Search
+Data
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growth
time
Cars (+1 h/d)
+Data
+Internet (+ppl)
+Data
Google

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“Now” is the slowest
change pace you will
ever experience from
now on...
Are we ready?

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Payments Industry Evolution
1964-1966 – MasterCharge is created
1970-1990 – MagStripe Era
1990-2015 – Emv Chip Era (including hologram and CVC2)
2007 – iPhone Launch (0,3% of transactions were CNP)
2015 – Approx. 15% do transactions are digital
2020 – We expect +30% of transactios will be digital

41. Any device is becoming a shopping device...
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Digital
Convergence

42. One click purchase is more and more commom...
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Digital
Convergence

43. Who are our customers?
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Unbanked
Digitized
Non Digitized
Banked
Financial InclusionBaby Boomers
Millennials
(or anyone how has a phone?)
Gen X

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[Video] Millenials behaivor...

45. Millennials
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46. Examples (Product): Fintechs
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Twitter Cash Tag Nubank
Venmo
SnapChat Pay
PayPal

47. Examples (Marketing): Issuer
Vs.
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Examples (Marketing): Issuer vs. Candy Crush

48. Examples (Rules & Responsabilities): Uber
Issuer: BRTransaction: SCL
Merchant: US
Acquirer: IRL
Card on File: US
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49. How can we make it happen?
✗ ✓Digital
Payment
Credential
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50. MasterPass & Digital Convergence
Pagamento Contactless
Compra “no corredor”
In-App
E-commerce
Outros dispositivos
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51. Our main pillars...
Cost efficiency
User
Experience
Safe &
Security
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52. E/M-commerce
Contactless/InApp
iPhone
Samsung
Issuer
Digital Convergence BR: 99%
BR: 1%
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IoT

53. Personal Payments– Facebook Messenger
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Before you make “it”
right, be sure that you
are making the right
“it”!
But remember...

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"CLICK PRINT BEFORE [YOU] GO TO BED AND WAKE UP
TO A BRAND NEW TOY."

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Founded: 1945
+20%

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Is the digital revolution a
threat or a opportunity
for financial industry?

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[Video] Financial Inclusion Opportunity 85% of payments
still made in Cash!

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It only depends on us! :)

60. Thank you!
Marcelo Theodoro
Head of Digital Payments & Labs – LAC/GeoSouth
marcelo.theodoro@mastercard.com
br.linkedin.com/in/marcelotheodoro