Visa Click to Pay

The Future of eCommerce

Arbeitskreis SicherheitDebit- und Kreditkarten

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Confidentiality:

This presentation is furnished to you solely in your capacity as a client of Visa and/or a participant in the Visa payments system. By accepting this presentation, you acknowledge that the information contained herein (the “Information”) is confidential and subject to the confidentiality restrictions contained in the Visa Core Rules and Product and Service Rules or other confidentiality agreements, which limit your use of the Information. You agree to keep the Information confidential and not to use the Information for any purpose other than in your capacity as a customer of Visa or as a participant in the Visa payments system. The Information may only be disseminated within your organization on a need-to-know basis to enable your participation in the Visa payments system. Please be advised that the Information may constitute material non-public information under U.S. federal securities laws and that purchasing or selling securities of Visa Inc. while being aware of material non-public information would constitute a violation of applicable U.S. federal securities laws.

Disclaimers:

Case studies, comparisons, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.

This document contains depictions of a product currently in the process of deployment and development, and should be understood as a representation of the potential features of the fully-deployed product. The final version of this product may not contain all of the features described in this presentation

Disclaimers

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Digital commerce is expected to keep growing… but challenges still exist.

80% online

98% in store

eCommerce transactions are completed via high-

friction manual PAN entry

1) Total global retail spend excludes travel and event ticket sales. CAGR represents dollar growth of digital spend. Sources: eMarketer; Comscore; Central Bank data; Oxford Economics; Euromonitor Merchant Segment Study 2018. This presentation includes data researched by Euromonitor International plc for its client, Visa U.S.A. Inc. and its subsidiaries

using industry standards. Euromonitor disclaims and excludes any and all liability for any loss suffered by any party as a direct or indirect result of the use of any of the Extracts.

2) September 2019 VisaNet Global Data

3) eCommerce Fraud Trends 2019, Merchant Fraud Journal, https://www.merchantfraudjournal.com/ecommerce-fraud-trends-2019/

4) Forbes, Why Cart Abandonment Rates Aren’t Falling, 2018, https://www.forbes.com/sites/paultalbot/2018/06/27/why-cart-abandonment-rates-arent-falling/#7f1bfd7f7bb6

86% mobile

73% desktop

Opportunity to accelerate digital commerce growth

eCommerce

authorization rates are

lower than in store 2

eCommerce cart

abandonment rates

are extremely high 4

eCommerce fraud is

on the rise 3

14% CNP fraud growth

by 2023

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What is Visa Click to Pay?

Designed to improve security, simplify consumer experience, and increase conversion

No PAN key entry

Cost/Revenue opportunity $

Visa solution based on EMV® standards

Supports Token – use of token benefits from those of Cloud Token Framework

Works across devices

Issuer sets up cards for CTP

via VCEH No passwords

EMV® CTP payment icon is a trademark owned by and used with permission of EMVCo, LLC.

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Opportunities to Participate in Visa CTP

Roles Can be performed by

Merchant

Facilitates the consumer-facing CTP experience.

• Merchant

• Marketplace

• Hosted order page provider

Digital Terminal (DT)

Distributes client-side code necessary to invoke CTP user experience.

• PSP

• Network

• Merchant

• Shopping cart provider

Digital Acceptance Gateway (DAG)

Manages API integration with CTP systems.

Registers the merchant to CTP systems. Fetches full payload from CTP systems.

• Merchant

• Acquirer/ Gateway

• PSP

Digital Card Facilitator (DCF)

Provides consumers access to information/digital cards for use during an exchange

• Network

• Merchant

• Commerce/IoT platform

• Browsers

• Operating System

CTP System

Orchestrates technical activities between participants.• Payment network

Issuer

Sets up cards via VCEH framework and verifies cardholder credentials• Issuer

CTPi

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Roles in the CTP ecosystem

MerchantImplements Trigger

IssuerSets Up Card

Digital Terminal Trigger

Digital Card FacilitatorVerifies Consumer

Digital Acceptance GatewayAuthorizes & Processes Transaction

Disclaimer: All brand names, logos and/or trademarks are the property of their respective owners, and are used for identification purposes only.

MerchantShows Payment Details

7 | Digital Commerce is the new commerce

Alex’s credentials now appear wherever Click-to-Pay is enabled...

and on Alex’s favourite sites, Trusted Listing

makes the checkout process even easier

Products showcased:

• Click-to-Pay

• 3Ds 2.1+

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User initiates checkout in merchant app

User activates new card for CTP

User ’s order is confirmed

Merchant checkout with CTP: New User ExperienceNew user has not yet enrolled into CTP

Disclaimer: All brand names, logos and/or trademarks are the property of their respective owners, and are used for identification purposes only.

User reviews cart and places order. “Remember me” option is provided for

Returning User experience with Visa T&C’s

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Disclaimer: Some features and functionalities described above are currently under development may be subject to cancellation or change by Visa

Issuer sets up an existing card for CTP with Call To Action for cardholderAn existing card is set up via Issuer app/website. "Trust this device” option enables device binding for CTP

User logs in to Issuer App Account Overview If cardholder clicks

‘Remember this device’,

his/her card is sent to

Visa CTP system

Visa’s T&C are presented

Card is ready to use

with CTP

Issuer website or app

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Improve customer

experienceGrow confidence in

transactions

Open the door to new

device & payment

technology

Maximize revenue

opportunities

• Increase revenues with higher

authorization rates

• Token & CTP standards enable scale

• Reduce fraud and associated costs

• Optimize payments with Lifecycle

Management

• Minimize friction with Click to Pay

• Streamline payments with

authentication during

provisioning

• Reduce fraud with tokens

• Verification of ID with Card

Token Framework (CTF)

• Better control and visibility

• Digital Card Art links to users

physical cards

• Click to Pay

• Device binding

• IoT/Non-Payment credentials

EMV® SRC payment icon, consisting of a pentagon design oriented on its side with a stylized depiction of a fast forward symbo l on the

right, formed by a continuous line, is a trademark owned by and used with permission of EMVCo, LLC

Our aim is to provide tangible benefits to PSP’s and merchants

across all digital commerce

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Multi-Layered Payment Security within CTP EcosystemProtection in every step of the payment flow

Payment Data Capture User Authorization Payment Processing

1 2 3

Issuer Authentication

Secure Data Exchange

Unique Verifiable Data

Data Masking to Prevent Exposure

Replace PAN with Tokens

Authorized

transactions can

originate with tokens

to prevent

compromising card

credentials

Issuer authentication

can provide a high

degree of confidence

during provisioning,

binding or transactions

Participants must be

previously known to

the network and

secure credentials

must be used to

access payment

information

Dynamic data can

ensure validity of the

transaction and the

participants

throughout the

transaction

Payment and personal

information is not sent

through the browser-

reference and masked

data is used over open

networks

Disclaimer: Some features and functionalities described above are not yet available and may be subject to cancellation or change by Visa.

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Show relevance for the online shopping experience (easy, smart, secure)

“My money is always secured” – Ich zahle Visa

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The first Click to Pay merchant in Germany is live!

URL: https://www.palast.berlin/

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• Click to Pay is a global solution

• Europe priority markets for 2021: Switzerland,

UK, Ireland, Poland, Spain, Germany, Finland,

Italy, Denmark, Norway, Sweden & Austria

Rollout planning for Click to Pay at Visa in Europe

Sweden

Norway Finland

Ireland

UK Netherlands

Belgium

France

PortugalItaly

Austria

Germany

Poland

Czech Republic

Slovakia

Slovenia

Hungary

Denmark

Luxem-burg

Spain

Switzer-land

Prepare for Click to Pay

Already available in Germany!

©2020 Visa. All rights reserved. Visa confidential

Thank you!

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Thank you.

@VisaEurope

Visa Europe

Darius Metzner