WORLDLINE_REGISTRATION_DOCUMENT_2017

Worldline positioning and strategy Industry andmarket overview

Data Analytics and Card-Linked Offers. Data analytics and ● card-linked offer services provide banks with data mining solutions that can be used to analyze cardholder payment data to propose targeted offers to cardholders like digital marketing or real time loyalty (as well as to merchants, when permitted by local regulators).

communications, and paperless transactions in general; mostly for large organizations, typically Central or local government or former public monopolies; organizations under strict regulations such as Telecom or Utilities Digital services for governments provide tax collection services as well as secure paperless systems for public services. These systems are optimized through the digitalization of services for citizens, through automated traffic regulation and e-Health services, as well through a variety of trusted services for customers, including e-Contracts and electronic invoicing, legal archiving solutions for companies and e-Safe services for individuals. According to Secure Identity Alliance, eGovernment services will yield up to $ 50 billion annual savings by 2020; Connected Living services such as Global Business Lines connected home and vehicles, industrial IOT, as well as consumer cloud and cloud contact services. The IOT market will continue to grow steeply, specific analyst predictions relevant for the Group’s IOT focus areas: Allied estimates that the Usage-Based Insurance Market ● will reach $ 123 bn globally by 2022, 91 million homes will be smart in North America and ● Europe by 2020 according to Berg Insights and, IndustryArc estimates that the Industrial IoT market will ● grow at a CAGR of 21%, reaching $ 123,8 billion in 2021, GSMA quote Machina Research’s forecast which estimate ● that the global market for connected vehicles should reach $ 253 billion until 2025. e-Consumer & Mobility Services . This market includes ●

B.1.1.3

Newdigital businesses

The third component of the extended payment services ecosystem in which the Worldline Group operates is services for emerging digital businesses with an embedded payment feature (e-Ticketing for Transport, Trusted Digitization, Connected Living). Leveraging the digital revolution to promote new businesses and new business models, these new players are driving new payment transactions and creating new opportunities. The Group brings its payment and regulation expertise to these new markets and focuses on three main categories of new digital businesses: e-Ticketing and Journey management Solutions for ● Transport Authorities, Transport Operators and cities. The transport market is at the verge of a new revolution with Open Payment which Infoholic forecast to grow to $ 14.19 bn by 2023 with a 19.7% CAGR. By transforming bank cards into tickets, Open Payment is helping transport companies to reduce their cost, create new revenue opportunities and reinvent customer experience; Trusted Digitization. It addresses the growing market of ● digital contracts, legal archiving, electronic secured

B

KeyMarket Trends and Drivers of Change

B.1.2

Technology: new technologies have a fundamental role in ● enabling change in the payment environment and the wider consumer engagement environment; Regulation : Financial institutions and payment services ● providers face a range of regulatory changes that have the potential to create new outsourcing opportunities for payment service providers and to drive increased demand for value added services to create new revenue opportunities; New entrants : New “Fintechs”, mobile operators and GAFAs ● (Google, Apple, Facebook, Amazon etc.) or BATX (Baidu, Alibaba, Tencent and Xiaomi) are now part of the payment ecosystem and threaten to displace the incumbents.

The trend towards non-cash payment instruments continues both in the retail and wholesale payment sector. As part of this non-cash trend, alternative payment instruments will also increase in significance and might threaten to disintermediate incumbent financial institutions and service providers. This is driven by a complex interaction of many forces including: Consumer expectations and behavior: the way consumers ● live, enabled by certain key technologies, has driven demanding expectation in the way they interact with both financial institutions and merchants;

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Worldline 2017 Registration Document