Taking E-Payment to the pan-european level

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Taking E-Payment to the pan-european level John Broxis, Director MyBank SPIN, June, 11 th, 2013 1

What is MyBank? A new way to pay from your account using online or mobile banking MyBank launched 25 th March 2013 2

Vic will tell you https://www.mybankpayments.eu/videos/mybank/my_bank_final_en.mp4 3

4

5

MyBank, a reality 6

MyBank went live on 25 th March 2013 7

50 supporting institutions A growing number of PSPs across Europe have declared their support for the solu;on A list of poten;al future par;cipants can be found at: www.mybankpayments.eu/n=list_of_poten;al_future_par;cipants.aspx 8

Self-Certified Service Providers The following companies successfully completed the tes@ng program and self- cer@fied that their infrastructure services are compliant with the technical, business and security requirements. https://www.mybankpayments.eu9

MyBank Participants March 2013 July 2013 2 Countries 10 Banking groups 3 Countries 15 Banking groups 28 Par@cipant PSPs 42 Par@cipant PSPs 7 Buyer Banks 27 Seller Banks 40 Buyer Banks 33 Seller Banks More than 10 million consumers 10

MyBank Developments 11

MyBank supports Mobile BANK March 2013: Configured for Mobile Browsing September 2013: Mobile App to Mobile App 2014: QR Code standardisa;on 12

MyBank and QR Great! Madonna in concert next month. I wonder if I can s;ll get ;ckets? Ø Let s click and buy 13

I scan. I authenticate myself and I authorise the payment. 14

A solution with 3 layers Products PSPs T&C PSPs T&C PSPs T&C PSPs T&C Competitive Business/ Governance Applica@on E- authorisa@on Protocol E- Payments E- Mandates Card Authorisa@ons Non- Euro payments Secure Informa@on Exchange Layer Collaborative Infrastructure dir dir dir dir 15

MyBank SDD: E-mandates E- mandate specifica;ons: A model based on the EPC SDD rulebook Implementa;on of ISO.20022 pain messages BANK Customers can: Create e- mandates for one- off or recurring SEPA Core Direct Debits Modify or cancel exis;ng e- mandates Merchants / Creditors can: Get confirma;on from the bank that account details are correct (reduce rejec;on rate). Be sure the Consumer has signed a mandate (reduce refund period) Comply with scheme requirements. No paper! 16

Development Roadmap 2013/03 MyBank E- payment 2013/06 Support for Mobile APPs 2013/10/04 MyBank E- mandate 2013/11 Mobile QR Code automation Interoperability 2014/Q1 MyBank P2P Window 1 Window 3 Window 2 Window 4 17

Join the MyBank E-Mandate Pilot October 2013! Open to Merchants in partnership with Banks and Service Providers. Applica;on scope : create, modify or cancel a SDD E- mandate. Environment: Test / Technical Pilot Deadline for applica;on : 17th of July 2013. Start of the Tes;ng phase : October 2013. Ready for February 2014. 18

MyBank : its for everyone 19

Europe is in a period of stagnation Governements must cut budgets. But keep delivering services 20

E-commerce grows! 21

E-commerce is not evenly spread 22

Consumers are afraid In Italy 50% of those with online access do not shop because they are afraid. 50% of those asked say, that if their bank offered them a secure way to pay, then they would. 23

Europe s Digital Agenda requires innovation There is a policy vision that Europe be an informa@on economy in which prosperity will come from innova@on and from using resources bezer. Governments want to cut budget spending but s@ll deliver services Regulators are looking at banks for Mobile and Online payments solu@ons 24 24

Digital Agenda SEPA E-signature E-commerce Data protection Consumer Rights Dispute Resolution Security Cybercrime E-Identity E- Government Trustmarks Interoperable Payments 25

A harmonised payments pla]orm. A founda@on on which to build innova@on that helps people. 26

Agenda Digitale Italiana Reduce use of Cash. Reduce use of Paper in Government bureucracy. Become more efficient Grow and create jobs. 27

MyBank, building trust in payment SCT and SDD : 32 countries, 500 million ci@zen, 25 million corporates and SMEs, 9000 banks sharing a single payment experience. PSPs: a trusted partner for payments MyBank, the first pan- european scheme based on SEPA instruments 28

The market wants a solution Consumers want a simple, trusted and secure online payment solu@on Merchants look for improved online payment methods Payment Service Providers (PSPs) are keen to (re)posi@on themselves and leverage use of online banking portals Public Policy pressure on the PSPs to innovate beyond SEPA 29 29

BAN K MyBank unlocks e-payment barriers for consumers: Simplicity : no registra;on, a single, familiar user experience for all Europe Safety : no sensi;ve data shared with third par;es Trust : payment is ini;ated via the Buyer Bank. Trust in merchant becomes out of scope 30

MyBank makes it simple for Merchants and government Large reachability : pan- European solu;on. Conversion rate improvement : easy and safe online shopping Low investments and running costs : Real ;me confirma;on of payment. No Chargebacks. Less fraud and disputes No interchange No dedicated infrastructure 31

For Banks/PIs MyBank is new way forward Puts Banks into the heart of any e- commerce transac@on Provides growth opportuni@es in new ways in an online world Leverages SEPA instruments and Online investments 32 32

It s for everybody. 33 33