1. An invitation to play cards
John Chaplin, First Data Corporation
Copyright 2008, First Data Corporation. All Rights Reserved.

2. An invitation to play cards
“Payment cards: still a good
deal or the next busted flush?”
Copyright 2008, First Data Corporation. All Rights Reserved.

3. First Data - global leader in card payments
processing
US$8 billion annual revenues (2007)
Handling more than 30 billion transactions per year
27,000 employees speaking 75 languages
Operating in all continents – business in 24 EU markets
Active in all elements of card payments value chain
Copyright 2008, First Data Corporation. All Rights Reserved.

4. Cards on the table
4
Copyright 2008, First Data Corporation. All Rights Reserved.

5. Industry trends as a health indicator
• Business
volumes
• Debit vs credit
vs ATM
• Fraud losses
• Credit losses
5
Copyright 2008, First Data Corporation. All Rights Reserved.

6. Changing industry economics
• Interchange
• Scheme
assessments
• Surcharging
• Credit/debit
migration
6
Copyright 2008, First Data Corporation. All Rights Reserved.

7. Demutualisation of card schemes
• MasterCard
• Visa and
Visa Europe
• Short-term
moves
• Long-term
effects
7
Copyright 2008, First Data Corporation. All Rights Reserved.

8. Where is the innovation?
• Contactless
• Pre-paid
• Virtual
• Mobile
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Copyright 2008, First Data Corporation. All Rights Reserved.

9. Political impacts
• SEPA
whither or wither?
• Consumer
protection
• Central Bank
oversight
• Impacts of
bank bailouts
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Copyright 2008, First Data Corporation. All Rights Reserved.

10. How good is the hand in future?
5 key conclusions
• Debit card much more important
than credit
• Economics rapidly moving to
utility model
• Scheme sell-offs to have
profound impact
• Innovation patchy and too brand
related
• Political factors weighing heavily
but unclear agenda
10
Copyright 2008, First Data Corporation. All Rights Reserved.

11. Jokers in the pack
11
Copyright 2008, First Data Corporation. All Rights Reserved.

12. Jokers in the pack
• Enforced scheme
and processor
separation
• Major card issuer
failure
• Regulated
monopoly status for
card schemes
Copyright 2008, First Data Corporation. All Rights Reserved.

13. Game over!
Thank you
13
Copyright 2008, First Data Corporation. All Rights Reserved.